EX-99 3 eightk102904exh992.txt EXH. 99.2 - REVISED FINANCIALS The following consolidated statements of operations and balance sheets reflect the impact of the settlement. The $50 million settlement, recorded in selling, general and administrative expenses, increased the third quarter and year-to-date net loss by $32 million, or $0.04 per share. The settlement is reflected within the Corporate and Other group.
AT&T CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months For the Nine Months Ended September 30, Ended September 30, -------------------------- ---------------------------- 2004 2003 2004 2003 -------------------------- ---------------------------- (Dollars in millions, except per share amounts) Revenue $ 7,638 $ 8,649 $ 23,264 $ 26,430 Operating Expenses Access and other connection 2,411 2,785 7,530 8,191 Costs of services and products 1,783 1,954 5,406 5,923 Selling, general and administrative 1,653 1,793 5,160 5,551 Depreciation and amortization 647 1,224 3,128 3,607 Asset impairment and net restructuring and other charges 12,469 64 12,736 134 ---------- ---------- ---------- ---------- Total operating expenses 18,963 7,820 33,960 23,406 ---------- ---------- ---------- ---------- Operating (Loss) Income (11,325) 829 (10,696) 3,024 Other (expense) income, net (34) (7) (172) 89 Interest (expense) (192) (289) (611) (917) ---------- ---------- ---------- --------- (Loss) Income Before Income Taxes, Minority Interest Income, Net Earnings (Losses) Related to Equity Investments and Cumulative Effect of Accounting Changes (11,551) 533 (11,479) 2,196 Benefit (provision) for income taxes 4,402 (72) 4,741 (677) Minority interest income - - 1 1 Net earnings (losses) related to equity investments 2 (3) 2 3 ---------- ---------- ---------- ---------- (Loss) Income from Continuing Operations (7,147) 458 (6,735) 1,523 Net (loss) from discontinued operations [net of income taxes of $0] - (13) - (13) ---------- ---------- ---------- ---------- (Loss) Income before Cumulative Effect of Accounting Changes (7,147) 445 (6,735) 1,510 Cumulative effect of accounting changes [net of income taxes of $17 and $(9)] - (27) - 15 ---------- ---------- ---------- ---------- Net (Loss) Income $(7,147) $ 418 $ (6,735) $ 1,525 ========== ========== ========== ========== Weighted-Average Shares Used to Compute Earnings Per Share: Basic 795 789 794 787 Diluted 795 791 794 788 Per Basic Share: (Loss) earnings from continuing operations $ (8.99) $ 0.58 $ (8.48) $ 1.94 (Loss) from discontinued operations - (0.02) - (0.02) Cumulative effect of accounting change - (0.03) - 0.02 ---------- ---------- ---------- --------- (Loss) Earnings Per Basic Share $ (8.99) $ 0.53 $ (8.48) $ 1.94 ========== ========== ========== ========= Per Diluted Share: (Loss) earnings from continuing operations $ (8.99) $ 0.58 $ (8.48) $ 1.93 (Loss) from discontinued operations - (0.02) - (0.01) Cumulative effect of accounting change - (0.03) - 0.02 ---------- ---------- ---------- --------- (Loss) Earnings Per Diluted Share $ (8.99) $ 0.53 $ (8.48) $ 1.94 ========== ========== ========== ========= Dividends Declared per Common Share $0.2375 $ 0.2375 $ 0.7125 $ 0.6125 ========== ========== ========== =========
AT&T CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) At At September 30, December 31, 2004 2003 ------------- ------------ (Dollars in millions) Assets Cash and cash equivalents $ 2,627 $ 4,353 Accounts receivable, less allowances of $589 and $579 3,516 4,036 Deferred income taxes 1,116 715 Other current assets 1,328 744 ----------- ------------ Total Current Assets 8,587 9,848 Property, plant and equipment, net of accumulated depreciation of $1,155 and $34,300 11,654 24,376 Goodwill 4,778 4,801 Other purchased intangible assets, net of accumulated amortization of $396 and $320 394 499 Prepaid pension costs 3,939 3,861 Other assets 2,707 4,603 ----------- ------------ Total Assets $ 32,059 $ 47,988 =========== ============ Liabilities Accounts payable and accrued expenses $ 2,586 $ 3,256 Compensation and benefit-related liabilities 2,215 1,783 Debt maturing within one year 1,582 1,343 Other current liabilities 2,346 2,501 ----------- ------------ Total Current Liabilities 8,729 8,883 Long-term debt 8,881 13,066 Long-term compensation and benefit-related liabilities 3,947 3,528 Deferred income taxes 1,138 5,395 Other long-term liabilities and deferred credits 2,929 3,160 ----------- ------------ Total Liabilities 25,624 34,032 Shareowners' Equity Common stock, $1 par value, authorized 2,500,000,000 shares; issued and outstanding 795,590,783 shares (net of 171,983,367 treasury shares) at September 30, 2004 791,911,022 shares (net of 172,179,303 treasury shares) at December 31, 2003 796 792 Additional paid-in capital 27,287 27,722 Accumulated deficit (21,446) (14,707) Accumulated other comprehensive (loss) income (202) 149 ----------- ------------ Total Shareowners' Equity 6,435 13,956 ----------- ------------ Total Liabilities and Shareowners' Equity $ 32,059 $ 47,988 =========== ============