United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: March 4, 1998
SOUTHWESTERN BELL TELEPHONE COMPANY
A Missouri Corporation
Commission File No. 1-2346
IRS Employer No. 43-0529710
175 E. Houston, San Antonio, Texas 78205-2233
Telephone Number (210) 821-4105
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Item 5. Other Events:
Southwestern Bell Telephone Company (SWBell) hereby files the following
unaudited financial information with the Securities and Exchange Commission:
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Supplemental Financial Data
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Southwestern Bell Telephone Company
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<CAPTION>
Dollars in millions Three Months Ended Twelve Months Ended
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Unaudited 12/31/97 12/31/96 % Chg 12/31/97(1) 12/31/96 % Chg
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<S> <C> <C> <C> <C> <C> <C>
Operating Revenues
Local service $ 1,339 $ 1,223 9.5% $ 5,237 $ 4,718 11.0%
Network access - Interstate 545 544 0.2% 2,176 2,145 1.4%
Network access - Intrastate 265 272 -2.6% 1,078 1,099 -1.9%
Long-distance service 183 227 -19.4% 803 883 -9.1%
Other 276 256 7.8% 1,019 888 14.8%
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Total Operating Revenues 2,608 2,522 3.4% 10,313 9,733 6.0%
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Cash Operating Expenses 1,759 1,488 18.2% 6,194 5,448 13.7%
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EBITDA * 849 1,034 -17.9% 4,119 4,285 -3.9%
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Depreciation and amortization 487 458 6.3% 1,927 1,795 7.4%
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Total Operating Expenses 2,246 1,946 15.4% 8,121 7,243 12.1%
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Operating Income 362 576 -37.2% 2,192 2,490 -12.0%
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Net Income 190 316 -39.9% 1,187 1,369 -13.3%
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<FN>
* EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
(1)1997 results include charges for several items including strategic
initiatives, as well as ongoing integration costs resulting from the strategic
initiatives, and customer number portability expenses since the merger of SBC
Communications, Inc. and Pacific Telesis Group, and the gain on the sale of
SWBell's interest in Bell Communications Research, Inc. Excluding these
items, SWBell reported an adjusted net income of $1,468 for 1997.
</FN>
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<TABLE>
SOUTHWESTERN BELL TELEPHONE COMPANY
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BALANCE SHEETS
Dollars in millions
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Unaudited
<CAPTION>
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December 31, December 31,
--------------------------------
1997 1996
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<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 79 $ 69
Accounts receivable - net of allowances for
uncollectibles of $33 and $23 1,819 1,674
Prepaid Expenses 156 168
Deferred charges 39 35
Deferred income taxes 192 96
Other current assets 167 137
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Total current assets 2,452 2,179
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Property, Plant and Equipment - at cost 31,011 29,347
Less: Accumulated depreciation and amortization 18,460 17,588
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Property, Plant and Equipment - Net 12,551 11,759
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Other Assets 11 30
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Total Assets $ 15,014 $ 13,968
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Liabilities and Shareowner's Equity
Current Liabilities
Debt maturing within one year $ 645 $ 921
Accounts payable and accrued liabilities 3,041 2,517
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Total current liabilities 3,686 3,438
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Long-Term Debt 4,824 4,265
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Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes 383 209
Postemployment benefit obligation 2,574 2,646
Unamortized investment tax credits 224 255
Other noncurrent liabilities 305 269
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Total deferred credits and other noncurrent liabilities 3,486 3,379
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Shareowner's Equity
Common stock - one share, no par value 1 1
Paid-in surplus 2,745 3,687
Retained earnings (deficit) 272 (802)
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Total shareowner's equity 3,018 2,886
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Total Liabilities and Shareowner's Equity $ 15,014 $ 13,968
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<FN>
The accompanying notes are an integral part of the financial statements.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Southwestern Bell Telephone Company
/s/Donald E.Kiernan
Donald E. Kiernan
Vice President
March 4, 1998
