OPERATING INCOME
Operating Income in 2013 reflects a continued growth in wireless data revenue, and increased revenues from U-Verse and strategic business services.
To offset this increase were continued declines in the traditional voice and data services: more customers are cancelling their land lines and just keeping cell phones. High equipment cost and expenses supporting the Uverse subscriber growth

OPERATING CASH FLOWS
During 2013 cash provided by operating activities were $34,796 compared to $39,176. The lower operating cash flows were mainly due
Higher tax payments – timing of working capital payments – financing of wireless devices used for AT&T Next
Data for 2014 is not yet available. However, it is expected to be lower due to the end of a tax rules that allow companies to deduct more rapidly the cost of equipment.
The Higher cash Flow in 2012 was due to nonrecurring payments maid the prior year (2011) including contribution to a pension plan improvements in working capital management
CASH USED IN OR PROVIDED BY INVESTING ACTIVITIES
Investing activities consist primarily of Capital expenditures which are wireless and wireline networks, U-verse services and support systems.
From the capital expenditures wireless segment is52% of the total and Wireline, which include U-verse is 48%
Data for 2014 is not available but the company predicts that expenditures will be the same. Peak year for project VIP (Project Velocity IP) extend IP network to 57 million customers-fast wireless and higher quality
CASH PROVIDED BY FINANCING ACTIVITIES
Dividends paid during 2013 reflect a decline in shares outstanding due to a repurchase activity, partially offset by a dividend rate increase of 2.2%.
During 2013 AT&T received net proceeds of $12,040 from the issuance of long term debt in various markets, to mature in approx. 10 years 2.6% interest rates. Global notes and Floating rate notes.
The emphasis of 2014 will be on payment of dividends, repayment of debt and repurchase of share. All these activities will be funded through a combination of cash from operations, debt issue and asset sales. Everything guided by credit market conditions and interest rates

ACCOUNTING POLICIES
REVENUE RECOGNITION
Revenue from local/long distance phones, data, video and wireless is recognized when service is provided (accrual basis of accounting)
Service revenue include billing customers