T 8-K

At&T Inc. (T)

8-K 2022-10-20 For: 2022-10-20

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☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


(d)	Exhibits

	99.1	Press release dated October 20 , 2022 reporting financial results for the third quarter ended September 30, 2022.

	99.2	AT&T Inc. selected financial statements and operating data.

	99.3	Discussion and reconciliation of non-GAAP measures.

	99.4	Supplemental Quarterly Standalone AT&T Financial Information

	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)


AT&T Inc.
Financial Data

Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2022		2021		Change		2022		2021		Change
Operating Revenues
Service	$	24,731	$	26,247	(5.8)	%	$	72,998	$	87,340	(16.4)	%
Equipment	5,312		5,079		4.6	%	16,400		15,603		5.1	%
Total Operating Revenues	30,043		31,326		(4.1)	%	89,398		102,943		(13.2)	%

Operating Expenses
Cost of revenues
Equipment	5,440		5,401		0.7	%	17,010		16,242		4.7	%
Broadcast, programming and operations	—		1,117		—	%	—		8,106		—	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)	6,761		6,915		(2.2)	%	20,267		21,834		(7.2)	%
Selling, general and administrative	7,202		7,094		1.5	%	21,445		22,301		(3.8)	%
Asset impairments and abandonments and restructuring	114		105		8.6	%	745		105		—	%
Depreciation and amortization	4,514		4,457		1.3	%	13,426		13,352		0.6	%
Total Operating Expenses	24,031		25,089		(4.2)	%	72,893		81,940		(11.0)	%
Operating Income	6,012		6,237		(3.6)	%	16,505		21,003		(21.4)	%
Interest Expense	1,420		1,627		(12.7)	%	4,548		5,090		(10.6)	%
Equity in Net Income (Loss) of Affiliates	392		183		—	%	1,417		159		—	%
Other Income (Expense) — Net	2,270		1,522		49.1	%	6,729		6,958		(3.3)	%
Income from Continuing Operations Before Income Taxes	7,254		6,315		14.9	%	20,103		23,030		(12.7)	%
Income tax expense on continuing operations	908		1,296		(29.9)	%	3,857		4,456		(13.4)	%
Income From Continuing Operations	6,346		5,019		26.4	%	16,246		18,574		(12.5)	%
Income (loss) from discontinued operations, net of tax	53		1,254		(95.8)	%	(146)		(2,485)		94.1	%
Net Income	6,399		6,273		2.0	%	16,100		16,089		0.1	%
Less: Net Income Attributable to Noncontrolling Interest	(373)		(355)		(5.1)	%	(1,107)		(1,051)		(5.3)	%
Net Income Attributable to AT&T	$	6,026	$	5,918	1.8	%	$	14,993	$	15,038	(0.3)	%
Less: Preferred Stock Dividends	(49)		(50)		2.0	%	(149)		(156)		4.5	%
Net Income Attributable to Common Stock	$	5,977	$	5,868	1.9	%	$	14,844	$	14,882	(0.3)	%

Basic Earnings Per Share Attributable to Common Stock
From continuing operations	$	0.82	$	0.64	28.1	%	$	2.08	$	2.40	(13.3)	%
From discontinued operations	$	0.01	$	0.18	(94.4)	%	$	(0.02)	$	(0.33)	93.9	%
	$	0.83	$	0.82	1.2	%	$	2.06	$	2.07	(0.5)	%
Weighted Average Common Shares Outstanding (000,000)	7,153		7,171		(0.3)	%	7,169		7,167		—	%
Diluted Earnings Per Share Attributable to Common Stock 1
From continuing operations	$	0.79	$	0.63	25.4	%	$	2.03	$	2.37	(14.3)	%
From discontinued operations	$	0.01	$	0.17	(94.1)	%	$	(0.02)	$	(0.33)	93.9	%
	$	0.80	$	0.80	—	%	$	2.01	$	2.04	(1.5)	%
Weighted Average Common Shares Outstanding with Dilution (000,000) 1	7,647		7,506		1.9	%	7,605		7,491		1.5	%
1Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06


AT&T Inc.
Financial Data

Consolidated Balance Sheets
Dollars in millions
Unaudited	Sep. 30,		Dec. 31,
	2022		2021
Assets
Current Assets
Cash and cash equivalents	$	2,423	$	19,223
Accounts receivable – net of related allowances for credit loss of $646 and $658	11,384		12,313
Inventories	3,935		3,325
Prepaid and other current assets	14,553		16,131
Assets from discontinued operations	—		119,776
Total current assets	32,295		170,768

Property, Plant and Equipment – Net	127,045		121,649
Goodwill	92,725		92,740
Licenses – Net	123,856		113,830


Other Intangible Assets – Net	5,362		5,391
Investments in and Advances to Equity Affiliates	3,964		6,168
Operating Lease Right-Of-Use Assets	21,782		21,824

Other Assets	19,434		19,252
Total Assets	$	426,463	$	551,622
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	9,626	$	24,620
Note payable to DIRECTV	271		1,245
Accounts payable and accrued liabilities	36,642		39,095
Advanced billings and customer deposits	3,705		3,966
Dividends payable	2,013		3,749
Liabilities from discontinued operations	—		33,555
Total current liabilities	52,257		106,230
Long-Term Debt	123,854		151,011
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	56,055		53,767
Postemployment benefit obligation	6,152		12,560
Operating lease liabilities	18,741		18,956
Other noncurrent liabilities	29,426		25,243

Total deferred credits and other noncurrent liabilities	110,374		110,526
Stockholders’ Equity
Preferred stock	—		—
Common stock	7,621		7,621
Additional paid-in capital	122,933		130,112
Retained earnings	6,127		42,350
Treasury stock	(17,148)		(17,280)
Accumulated other comprehensive income	2,873		3,529
Noncontrolling interest	17,572		17,523
Total stockholders’ equity	139,978		183,855
Total Liabilities and Stockholders’ Equity	$	426,463	$	551,622


AT&T Inc.
Financial Data

Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Nine-Month Period
	2022		2021
Operating Activities
Income from continuing operations	$	16,246	$	18,574
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization	13,426		13,352


Provision for uncollectible accounts	1,323		857
Deferred income tax expense	2,947		5,234
Net (gain) loss on investments, net of impairments	412		(298)
Pension and postretirement benefit expense (credit)	(2,484)		(2,875)
Actuarial (gain) loss on pension and postretirement benefits	(3,838)		(3,021)
Asset impairments and abandonments and restructuring	745		105
Changes in operating assets and liabilities:
Receivables	1,021		(101)
Other current assets	(799)		(484)
Accounts payable and other accrued liabilities	(3,261)		(2,660)
Equipment installment receivables and related sales	906		715
Deferred customer contract acquisition and fulfillment costs	(756)		287
Postretirement claims and contributions	(443)		(425)
Other - net	19		(167)
Total adjustments	9,218		10,519
Net Cash Provided by Operating Activities from Continuing Operations	25,464		29,093

Investing Activities
Capital expenditures	(15,397)		(12,051)
Acquisitions, net of cash acquired	(9,959)		(23,533)
Dispositions	49		7,061
Distributions from DIRECTV in excess of cumulative equity in earnings	2,205		—
Other - net	91		(5)
Net Cash Used in Investing Activities from Continuing Operations	(23,011)		(28,528)

Financing Activities
Net change in short-term borrowings with original maturities of three months or less	84		630
Issuance of other short-term borrowings	3,955		17,476
Repayment of other short-term borrowings	(16,861)		(2,448)
Issuance of long-term debt	479		9,931
Repayment of long-term debt	(24,412)		(1,574)
Note payable to DIRECTV, net of payments	(1,070)		1,439
Payment of vendor financing	(4,237)		(4,013)
Purchase of treasury stock	(875)		(191)
Issuance of treasury stock	28		89
Dividends paid	(7,845)		(11,319)
Other - net	(3,649)		(1,567)
Net Cash (Used in) Provided by Financing Activities from Continuing Operations	(54,403)		8,453
Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations	(51,950)		9,018
Cash flows from Discontinued Operations:
Cash (used in) provided by operating activities	(3,754)		1,610
Cash provided by (used in) investing activities	1,029		1,195
Cash provided by (used in) financing activities	35,853		(288)
Net increase in cash and cash equivalents and restricted cash from discontinued operations	33,128		2,517
Net (decrease) increase in cash and cash equivalents and restricted cash	$	(18,822)	$	11,535
Cash and cash equivalents and restricted cash beginning of year	21,316		9,870
Cash and Cash Equivalents and Restricted Cash End of Period	$	2,494	$	21,405


			AT&T INC.



Date: October 20, 2022			By: /s/ Debra L. Dial . Debra L. Dial Senior Vice President - Chief Accounting Officer and Controller


AT&T Inc.
Consolidated Supplementary Data

Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited	Third Quarter				Percent		Nine-Month Period						Percent
	2022		2021		Change		2022			2021			Change
Capital expenditures
Purchase of property and equipment	$	5,874	$	4,432	32.5	%	$	15,273		$	11,919		28.1	%
Interest during construction - capital expenditures	47		38		23.7	%	124			132			(6.1)	%
Total Capital Expenditures	$	5,921	$	4,470	32.5	%	$	15,397		$	12,051		27.8	%

Acquisitions, net of cash acquired
Business acquisitions	$	—	$	—	—	%	$	—		$	—		—	%
Spectrum acquisitions	111		131		(15.3)	%	9,076			23,017			(60.6)	%
Interest during construction - spectrum	278		259		7.3	%	883			516			71.1	%
Total Acquisitions	$	389	$	390	(0.3)	%	$	9,959		$	23,533		(57.7)	%



Dividends Declared per Common Share	$	0.2775	$	0.52	(46.6)	%	$	0.8325		$	1.56		(46.6)	%

End of Period Common Shares Outstanding (000,000)							7,126			7,140			(0.2)	%
Debt Ratio							48.8		%	49.5		%	(70)	BP
Total Employees							169,880			177,309			(4.2)	%


Segment Results
Dollars in millions
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2022		2021		Change		2022		2021		Change
Segment Operating Revenues
Mobility	$	20,278	$	19,138	6.0	%	$	60,279	$	57,108	5.6	%
Business Wireline	5,668		5,938		(4.5)	%	16,903		18,036		(6.3)	%
Consumer Wireline	3,185		3,142		1.4	%	9,520		9,380		1.5	%
Total Segment Operating Revenues	29,131		28,218		3.2	%	86,702		84,524		2.6	%

Operating Income
Mobility	6,419		5,987		7.2	%	18,484		18,038		2.5	%
Business Wireline	882		1,002		(12.0)	%	2,451		3,151		(22.2)	%
Consumer Wireline	330		179		84.4	%	951		794		19.8	%
Total Operating Income	$	7,631	$	7,168	6.5	%	$	21,886	$	21,983	(0.4)	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited					September 30,		Percent
					2022	2021	Change
Broadband Connections
Broadband					15,112	15,050	0.4	%
DSL					340	460	(26.1)	%
Total Broadband Connections					15,452	15,510	(0.4)	%

Voice Connections
Retail Consumer Switched Access Lines					5,466	6,404	(14.6)	%
U-verse Consumer VoIP Connections					3,022	3,440	(12.2)	%
Total Retail Voice Connections					8,488	9,844	(13.8)	%

	Third Quarter		Percent		Nine-Month Period		Percent
	2022	2021	Change		2022	2021	Change
Broadband Net Additions
Broadband	(24)	62	—	%	38	232	(83.6)	%
DSL	(33)	(33)	—	%	(90)	(106)	15.1	%
Total Broadband Net Additions	(57)	29	—	%	(52)	126	—	%


Mobility Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2022			2021			Change		2022			2021			Change
Operating Revenues
Service	$	15,337		$	14,527		5.6	%	$	45,065		$	42,921		5.0	%
Equipment	4,941			4,611			7.2	%	15,214			14,187			7.2	%
Total Operating Revenues	20,278			19,138			6.0	%	60,279			57,108			5.6	%

Operating Expenses
Operations and support	11,817			11,116			6.3	%	35,677			32,998			8.1	%
Depreciation and amortization	2,042			2,035			0.3	%	6,118			6,072			0.8	%
Total Operating Expenses	13,859			13,151			5.4	%	41,795			39,070			7.0	%
Operating Income	$	6,419		$	5,987		7.2	%	$	18,484		$	18,038		2.5	%

Operating Income Margin	31.7		%	31.3		%	40	BP	30.7		%	31.6		%	(90)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2022			2021			Change
Mobility Subscribers
Postpaid									83,614			80,249			4.2	%
Postpaid phone									68,969			66,396			3.9	%
Prepaid									19,215			19,028			1.0	%
Reseller									5,854			6,263			(6.5)	%
Connected Devices									101,995			90,979			12.1	%
Total Mobility Subscribers1									210,678			196,519			7.2	%
1Wireless subscribers at September 30, 2022 includes a reduction of 10,707 subscribers and connections (899 postpaid, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,825 connected devices) resulting from our 3G network shutdown in February 2022. The third quarter includes an adjustment of 170 subscribers, primarily connected devices.

	Third Quarter						Percent		Nine-Month Period						Percent
	2022			2021			Change		2022			2021			Change
Mobility Net Additions
Postpaid Phone Net Additions	708			928			(23.7)	%	2,212			2,312			(4.3)	%
Total Phone Net Additions	816			1,177			(30.7)	%	2,629			2,942			(10.6)	%

Postpaid	964			1,218			(20.9)	%	2,987			3,197			(6.6)	%
Prepaid	141			351			(59.8)	%	488			927			(47.4)	%
Reseller	308			(164)			—	%	312			(357)			—	%
Connected Devices	5,716			3,468			64.8	%	15,476			10,194			51.8	%
Total Mobility Net Additions	7,129			4,873			46.3	%	19,263			13,961			38.0	%

Postpaid Churn	1.01		%	0.92		%	9	BP	0.96		%	0.91		%	5 BP
Postpaid Phone-Only Churn	0.84		%	0.72		%	12	BP	0.79		%	0.72		%	7 BP


Business Wireline Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2022			2021			Change		2022			2021			Change
Operating Revenues
Service	$	5,524		$	5,765		(4.2)	%	$	16,418		$	17,497		(6.2)	%
Equipment	144			173			(16.8)	%	485			539			(10.0)	%
Total Operating Revenues	5,668			5,938			(4.5)	%	16,903			18,036			(6.3)	%

Operating Expenses
Operations and support	3,444			3,632			(5.2)	%	10,498			11,010			(4.7)	%
Depreciation and amortization	1,342			1,304			2.9	%	3,954			3,875			2.0	%
Total Operating Expenses	4,786			4,936			(3.0)	%	14,452			14,885			(2.9)	%
Operating Income	$	882		$	1,002		(12.0)	%	$	2,451		$	3,151		(22.2)	%

Operating Income Margin	15.6		%	16.9		%	(130)	BP	14.5		%	17.5		%	(300)	BP


Consumer Wireline Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2022			2021			Change		2022			2021			Change
Operating Revenues
Broadband	$	2,429		$	2,290		6.1	%	$	7,177		$	6,761		6.2	%
Legacy voice and data services	427			484			(11.8)	%	1,332			1,507			(11.6)	%
Other service and equipment	329			368			(10.6)	%	1,011			1,112			(9.1)	%
Total Operating Revenues	3,185			3,142			1.4	%	9,520			9,380			1.5	%

Operating Expenses
Operations and support	2,055			2,188			(6.1)	%	6,218			6,280			(1.0)	%
Depreciation and amortization	800			775			3.2	%	2,351			2,306			2.0	%
Total Operating Expenses	2,855			2,963			(3.6)	%	8,569			8,586			(0.2)	%
Operating Income	$	330		$	179		84.4	%	$	951		$	794		19.8	%

Operating Income Margin	10.4		%	5.7		%	470	BP	10.0		%	8.5		%	150	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2022			2021			Change
Broadband Connections
Total Broadband and DSL Connections									14,055			14,180			(0.9)	%
Broadband									13,796			13,846			(0.4)	%
Fiber Broadband Connections									6,935			5,721			21.2	%

Voice Connections
Retail Consumer Switched Access Lines									2,123			2,527			(16.0)	%
U-verse Consumer VoIP Connections									2,409			2,843			(15.3)	%
Total Retail Consumer Voice Connections									4,532			5,370			(15.6)	%

	Third Quarter						Percent		Nine-Month Period						Percent
	2022			2021			Change		2022			2021			Change
Broadband Net Additions
Total Broadband and DSL Net Additions	(50)			6			—	%	(105)			80			—	%
Broadband	(29)			28			—	%	(49)			153			—	%
Fiber Broadband Net Additions	338			289			17.0	%	943			770			22.5	%


Business Solutions Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2022			2021			Change		2022			2021			Change
Operating Revenues
Wireless service	$	2,222		$	2,059		7.9	%	$	6,531		$	6,053		7.9	%
Wireline service	5,524			5,765			(4.2)	%	16,418			17,497			(6.2)	%
Wireless equipment	859			813			5.7	%	2,632			2,384			10.4	%
Wireline equipment	144			173			(16.8)	%	485			539			(10.0)	%
Total Operating Revenues	8,749			8,810			(0.7)	%	26,066			26,473			(1.5)	%

Operating Expenses
Operations and support	5,531			5,581			(0.9)	%	16,823			16,743			0.5	%
Depreciation and amortization	1,699			1,651			2.9	%	5,025			4,903			2.5	%
Total Operating Expenses	7,230			7,232			—	%	21,848			21,646			0.9	%
Operating Income	$	1,519		$	1,578		(3.7)	%	$	4,218		$	4,827		(12.6)	%

Operating Income Margin	17.4		%	17.9		%	(50)	BP	16.2		%	18.2		%	(200)	BP


Three Months Ended
Dollars in millions
Unaudited
September 30, 2022
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	20,278	$	11,817	$	8,461	$	2,042	$	6,419
Business Wireline	5,668		3,444		2,224		1,342		882
Consumer Wireline	3,185		2,055		1,130		800		330
Total Communications	29,131		17,316		11,815		4,184		7,631
Latin America - Mexico	785		684		101		164		(63)
Segment Total	29,916		18,000		11,916		4,348		7,568
Corporate and Other
Corporate:
DTV-related retained costs	—		197		(197)		139		(336)
Parent administration support	(6)		266		(272)		2		(274)
Securitization fees	15		103		(88)		—		(88)
Value portfolio	118		32		86		9		77
Total Corporate	127		598		(471)		150		(621)





Reclassification of prior service credits	—		731		(731)		—		(731)
Merger & Significant Items	—		188		(188)		16		(204)

Total Corporate and Other	127		1,517		(1,390)		166		(1,556)
AT&T Inc.	$	30,043	$	19,517	$	10,526	$	4,514	$	6,012


Nine Months Ended
Dollars in millions
Unaudited
September 30, 2022
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	60,279	$	35,677	$	24,602	$	6,118	$	18,484
Business Wireline	16,903		10,498		6,405		3,954		2,451
Consumer Wireline	9,520		6,218		3,302		2,351		951
Total Communications	86,702		52,393		34,309		12,423		21,886
Latin America - Mexico	2,283		2,036		247		494		(247)
Segment Total	88,985		54,429		34,556		12,917		21,639
Corporate and Other
Corporate:
DTV-related retained costs	8		532		(524)		408		(932)
Parent administration support	(24)		873		(897)		12		(909)
Securitization fees	48		263		(215)		—		(215)
Value portfolio	381		106		275		29		246
Total Corporate	413		1,774		(1,361)		449		(1,810)


Reclassification of prior service credits	—		1,961		(1,961)		—		(1,961)
Merger & Significant Items	—		1,303		(1,303)		60		(1,363)

Total Corporate and Other	413		5,038		(4,625)		509		(5,134)
AT&T Inc.	$	89,398	$	59,467	$	29,931	$	13,426	$	16,505


Adjusted Diluted EPS
	Third Quarter					Nine-Month Period
	2022			2021		2022			2021
Diluted Earnings Per Share (EPS)	$	0.79		$	0.63	$	2.03		$	2.37


DIRECTV intangible amortization (proportionate share)	0.04			0.04		0.12			0.04
Actuarial (gain) loss1	(0.14)			(0.04)		(0.38)			(0.30)
Restructuring and impairments	0.01			0.01		0.08			0.01
Benefit-related, transaction and other costs1, 2	0.08			0.02		0.19			—

Tax-related items	(0.10)			—		(0.09)			(0.05)

Adjusted EPS	$	0.68		$	0.66	$	1.95		$	2.07
Less: Video and Other dispositions	—			(0.04)		—			(0.22)
Standalone AT&T Adjusted EPS3	$	0.68		$	0.62	$	1.95		$	1.85
Year-over-year growth - Adjusted	9.7		%			5.4		%
Weighted Average Common Shares Outstanding with Dilution (000,000)	7,647			7,506		7,605			7,491
1Includes adjustments for actuarial gains or losses associated with our pension and postretirement benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $1.4 billion in the third quarter of 2022. As a result, adjusted EPS reflects an expected return on plan assets of $0.8 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.50% for our VEBA trusts), rather than the actual return on plan assets of $(3.4) billion (actual pension return of -15.4% and VEBA return of -12.2%), included in the GAAP measure of income. Adjustments also include the impact to our third-quarter 2022 benefit expense accruals that resulted from the prior-quarters 2022 remeasurements of plan assets and obligations, which included increases in the assumed discount rates.
2As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. The per share impact of ASU 2020-06 was to decrease reported diluted EPS $0.02 and $0.01 for the quarters ended September 30, 2022 and 2021, and $0.05 and $0.03 for the nine months ended September 30, 2022 and 2021, respectively.
3See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS.


	Standalone AT&T
	Supplemental Unaudited Quarterly Financial Information
	Dollars in millions
	Unaudited


	Operating Revenues	3/31/20		6/30/20		9/30/20		12/31/20		2020		3/31/21			6/30/21			9/30/21			12/31/21			2021			3/31/22			6/30/22			9/30/22
	Revenues from Continuing Operations	$	35,357	$	34,527	$	35,407	$	37,759	$	143,050	$	35,877		$	35,740		$	31,326		$	31,095		$	134,038		$	29,712		$	29,643		$	30,043
[A]	Less: Video	(7,407)		(7,021)		(7,014)		(7,168)		(28,610)		(6,725)			(6,639)			(2,149)			—			(15,513)			—			—			—
[B]	Less: Other dispositions (Held-for-sale)	(369)		(369)		(420)		(256)		(1,414)		(231)			(158)			(64)			—			(453)			—			—			—
[H]	Less: Intercompany eliminations	64		55		65		83		267		62			57			17			—			136			—			—			—
	Standalone AT&T Operating Revenues	$	27,645	$	27,192	$	28,038	$	30,418	$	113,293	$	28,983		$	29,000		$	29,130		$	31,095		$	118,208		$	29,712		$	29,643		$	30,043
	Revenue from Continuing Operations Growth Rate Y/Y											1.5		%	3.5		%	-11.5		%	-17.6		%	-6.3		%	-17.2		%	-17.1		%	-4.1		%
	Standalone AT&T Revenue Growth Rate Y/Y											4.8		%	6.6		%	3.9		%	2.2		%	4.3		%	2.5		%	2.2		%	3.1		%


	Operations and Support Expenses	3/31/20		6/30/20		9/30/20		12/31/20		2020		3/31/21			6/30/21			9/30/21			12/31/21			2021			3/31/22			6/30/22			9/30/22
	Operations and Support Expenses from Continuing Operations	$	22,369	$	23,311	$	23,733	$	42,742	$	112,155	$	24,217		$	23,739		$	20,632		$	21,701		$	90,289		$	19,713		$	20,237		$	19,517
[I]	Non-GAAP Adjustments	720		(854)		32		(15,573)		(15,675)		(1)			70			(109)			(86)			(126)			(191)			(924)			(188)
	Adjusted Operations and Support Expenses from Continuing Operations	23,089		22,457		23,765		27,169		96,480		24,216			23,809			20,523			21,615			90,163			19,522			19,313			19,329
[A]	Less: Video	(6,020)		(5,809)		(5,887)		(6,458)		(24,174)		(5,660)			(5,275)			(1,731)			—			(12,666)			—			—			—
[B]	Less: Other dispositions (Held-for-sale)	(272)		(268)		(310)		(190)		(1,040)		(194)			(115)			(47)			—			(356)			—			—			—
[H]	Less: Intercompany eliminations	64		55		65		83		267		62			57			17			—			136			—			—			—
[D]	Less: Reclassification of allocations for separated businesses	76		86		76		84		322		15			19			16			(4)			46			—			—			—
[C]	Add: DTV-related retained costs	350		350		350		350		1,400		350			350			117			—			817			—			—			—
	Standalone AT&T Adjusted Operations and Support Expenses	$	17,287	$	16,871	$	18,059	$	21,038	$	73,255	$	18,789		$	18,845		$	18,895		$	21,611		$	78,140		$	19,522		$	19,313		$	19,329
	Operations and Support Expenses from Continuing Operations Growth Rate Y/Y											8.3		%	1.8		%	-13.1		%	-49.2		%	-19.5		%	-18.6		%	-14.8		%	-5.4		%
	Adjusted Operations and Support Expenses from Continuing Operations Growth Rate Y/Y											4.9		%	6.0		%	-13.6		%	-20.4		%	-6.5		%	-19.4		%	-18.9		%	-5.8		%
	Standalone AT&T Adjusted Operations and Support Expenses Growth Rate Y/Y											8.7		%	11.7		%	4.6		%	2.7		%	6.7		%	3.9		%	2.5		%	2.3		%


	Depreciation and Amortization Expense	3/31/20		6/30/20		9/30/20		12/31/20		2020		3/31/21			6/30/21			9/30/21			12/31/21			2021			3/31/22			6/30/22			9/30/22
	Depreciation and Amortization Expense from Continuing Operations	$	5,705	$	5,655	$	5,610	$	5,553	$	22,523	$	4,466		$	4,429		$	4,457		$	4,500		$	17,852		$	4,462		$	4,450		$	4,514
[I]	Non-GAAP Adjustments	(913)		(878)		(839)		(811)		(3,441)		(85)			(28)			(28)			(28)			(169)			(27)			(17)			(16)
	Adjusted Depreciation and Amortization Expense from Continuing Operations	4,792		4,777		4,771		4,742		19,082		4,381			4,401			4,429			4,472			17,683			4,435			4,433			4,498
[A]	Less: Video	(591)		(593)		(557)		(521)		(2,262)		(164)			(148)			(44)			—			(356)			—			—			—
[B]	Less: Other dispositions (Held-for-sale)	(4)		(4)		(4)		(3)		(15)		—			—			—			—			—			—			—			—
[C]	Add: DTV-related retained costs	180		180		180		180		720		180			180			60			—			420			—			—			—
	Standalone AT&T Adjusted Depreciation and Amortization Expense	$	4,377	$	4,360	$	4,390	$	4,398	$	17,525	$	4,397		$	4,433		$	4,445		$	4,472		$	17,747		$	4,435		$	4,433		$	4,498
	Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y											-21.7		%	-21.7		%	-20.6		%	-19.0		%	-20.7		%	-0.1		%	0.5		%	1.3		%
	Adjusted Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y											-8.6		%	-7.9		%	-7.2		%	-5.7		%	-7.3		%	1.2		%	0.7		%	1.6		%
	Standalone AT&T Adjusted Depreciation and Amortization Expense Growth Rate Y/Y											0.5		%	1.7		%	1.3		%	1.7		%	1.3		%	0.9		%	0.0		%	1.2		%


Free Cash Flow and Free Cash Flow Dividend Payout Ratio
Dollars in millions
	Third Quarter						Nine-Month Period
	2022			2021			2022			2021
Net cash provided by operating activities from continuing operations1	$	10,094		$	9,310		$	25,464		$	29,093
Add: Distributions from DIRECTV classified as investing activities	567			—			2,205			—
Less: Capital expenditures	(5,921)			(4,470)			(15,397)			(12,051)
Less: Cash paid for vendor financing	(900)			(1,019)			(4,237)			(4,013)
Free Cash Flow2	3,840			3,821			8,035			13,029

Less: Dividends paid	(2,010)			(3,748)			(7,845)			(11,319)
Free Cash Flow after Dividends	$	1,830		$	73		$	190		$	1,710
Free Cash Flow Dividend Payout Ratio	52.3		%	98.1		%	97.6		%	86.9		%
1Includes distributions from DIRECTV of $392 in the third quarter and $1,429 in the first nine months of 2022.
2For Standalone free cash flow see Exhibit 99.4.


Cash Paid for Capital Investment
Dollars in millions
	Third Quarter				Nine-Month Period
	2022		2021		2022		2021
Capital Expenditures	$	(5,921)	$	(4,470)	$	(15,397)	$	(12,051)
Cash paid for vendor financing	(900)		(1,019)		(4,237)		(4,013)
Cash paid for Capital Investment	$	(6,821)	$	(5,489)	$	(19,634)	$	(16,064)


EBITDA, EBITDA Margin and EBITDA Service Margin
Dollars in millions
	Third Quarter				Nine-Month Period
	2022		2021		2022		2021
Income from Continuing Operations	$	6,346	$	5,019	$	16,246	$	18,574
Additions:
Income Tax Expense	908		1,296		3,857		4,456
Interest Expense	1,420		1,627		4,548		5,090
Equity in Net (Income) Loss of Affiliates	(392)		(183)		(1,417)		(159)
Other (Income) Expense - Net	(2,270)		(1,522)		(6,729)		(6,958)
Depreciation and amortization	4,514		4,457		13,426		13,352
EBITDA	10,526		10,694		29,931		34,355
Transaction and other costs	58		8		341		43
Benefit-related (gain) loss and other employee costs	16		(4)		217		(108)
Assets impairments and abandonment and restructuring	114		105		745		105
Adjusted EBITDA1	$	10,714	$	10,803	$	31,234	$	34,395
Less: Video and Other dispositions	—		(568)		—		(3,811)
Standalone AT&T Adjusted EBITDA2	$	10,714	$	10,235	$	31,234	$	30,584
1 See page 5 for additional discussion and reconciliation of adjusted items.
2 See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA.


Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin
Dollars in millions
	Third Quarter						Nine-Month Period
	2022			2021			2022			2021
Communications Segment
Operating Income	$	7,631		$	7,168		$	21,886		$	21,983
Additions:
Depreciation and amortization	4,184			4,114			12,423			12,253
EBITDA	11,815			11,282			34,309			34,236

Total Operating Revenues	29,131			28,218			86,702			84,524

Operating Income Margin	26.2		%	25.4		%	25.2		%	26.0		%
EBITDA Margin	40.6		%	40.0		%	39.6		%	40.5		%
Mobility
Operating Income	$	6,419		$	5,987		$	18,484		$	18,038
Additions:
Depreciation and amortization	2,042			2,035			6,118			6,072
EBITDA	8,461			8,022			24,602			24,110

Total Operating Revenues	20,278			19,138			60,279			57,108
Service Revenues	15,337			14,527			45,065			42,921

Operating Income Margin	31.7		%	31.3		%	30.7		%	31.6		%
EBITDA Margin	41.7		%	41.9		%	40.8		%	42.2		%
EBITDA Service Margin	55.2		%	55.2		%	54.6		%	56.2		%
Business Wireline
Operating Income	$	882		$	1,002		$	2,451		$	3,151
Additions:
Depreciation and amortization	1,342			1,304			3,954			3,875
EBITDA	2,224			2,306			6,405			7,026

Total Operating Revenues	5,668			5,938			16,903			18,036

Operating Income Margin	15.6		%	16.9		%	14.5		%	17.5		%
EBITDA Margin	39.2		%	38.8		%	37.9		%	39.0		%
Consumer Wireline
Operating Income	$	330		$	179		$	951		$	794
Additions:
Depreciation and amortization	800			775			2,351			2,306
EBITDA	1,130			954			3,302			3,100

Total Operating Revenues	3,185			3,142			9,520			9,380

Operating Income Margin	10.4		%	5.7		%	10.0		%	8.5		%
EBITDA Margin	35.5		%	30.4		%	34.7		%	33.0		%

Latin America Segment - Mexico
Operating Income	$	(63)		$	(130)		$	(247)		$	(393)
Additions:
Depreciation and amortization	164			157			494			452
EBITDA	101			27			247			59

Total Operating Revenues	785			724			2,283			2,043

Operating Income Margin	-8.0		%	-18.0		%	-10.8		%	-19.2		%
EBITDA Margin	12.9		%	3.7		%	10.8		%	2.9		%


Adjusting Items
Dollars in millions
	Third Quarter				Nine-Month Period
	2022		2021		2022		2021



Operating Expenses
Transaction and other costs	$	58	$	8	$	341	$	43
Benefit-related (gain) loss and other employee-related costs	16		(4)		217		(108)
Assets impairments and abandonment and restructuring	114		105		745		105
Adjustments to Operations and Support Expenses	188		109		1,303		40
Amortization of intangible assets	16		28		60		142
Adjustments to Operating Expenses	204		137		1,363		182
Other
DIRECTV intangible amortization (proportionate share)	376		392		1,188		392

Benefit-related (gain) loss, transaction financing costs and other	416		—		822		(337)
Actuarial (gain) loss	(1,440)		(374)		(3,838)		(3,021)
Adjustments to Income Before Income Taxes	(444)		155		(465)		(2,784)
Tax impact of adjustments	(135)		2		(200)		(723)
Tax-related items	727		—		648		368

Adjustments to Net Income	$	(1,036)	$	153	$	(913)	$	(2,429)


Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA Margin
Dollars in millions
	Third Quarter						Nine-Month Period
	2022			2021			2022			2021
Operating Income	$	6,012		$	6,237		$	16,505		$	21,003

Adjustments to Operating Expenses	204			137			1,363			182
Adjusted Operating Income	6,216			6,374			17,868			21,185

EBITDA	10,526			10,694			29,931			34,355

Adjustments to Operations and Support Expenses	188			109			1,303			40
Adjusted EBITDA	10,714			10,803			31,234			34,395

Total Operating Revenues	30,043			31,326			89,398			102,943







Operating Income Margin	20.0		%	19.9		%	18.5		%	20.4		%
Adjusted Operating Income Margin	20.7		%	20.3		%	20.0		%	20.6		%
Adjusted EBITDA Margin	35.7		%	34.5		%	34.9		%	33.4		%


Net Debt to Adjusted EBITDA - 2022
Dollars in millions
	Three Months Ended
	Dec. 31,		March 31,		June 30,		Sept. 30,		Four Quarters
	20211		20221		20221		20221
Adjusted EBITDA	$	9,480	$	10,190	$	10,330	$	10,714	$	40,714





End-of-period current debt									9,626
End-of-period long-term debt									123,854
Total End-of-Period Debt									133,480
Less: Cash and Cash Equivalents									2,423
Net Debt Balance									131,057
Annualized Net Debt to Adjusted EBITDA Ratio									3.22
1As reported in Exhibit 99.4.


Net Debt to Adjusted EBITDA - 2021
Dollars in millions
	Three Months Ended
	Dec. 31,		March 31,		June 30,		Sept. 30,		Four Quarters
	20201		20211		20211		20211
Adjusted EBITDA	$	10,590	$	11,661	$	11,931	$	10,803	$	44,985





End-of-period current debt									23,712
End-of-period long-term debt									153,652
Total End-of-Period Debt									177,364
Less: Cash and Cash Equivalents									18,485
Net Debt Balance									158,879
Annualized Net Debt to Adjusted EBITDA Ratio									3.53
1As reported in Exhibit 99.4.


Supplemental Operational Measure
	Third Quarter
	September 30, 2022								September 30, 2021
	Mobility		Business Wireline		Adjustments1		Business Solutions		Mobility		Business Wireline		Adjustments1		Business Solutions
Operating Revenues
Wireless service	$	15,337	$	—	$	(13,115)	$	2,222	$	14,527	$	—	$	(12,468)	$	2,059
Wireline service	—		5,524		—		5,524		—		5,765		—		5,765
Wireless equipment	4,941		—		(4,082)		859		4,611		—		(3,798)		813
Wireline equipment	—		144		—		144		—		173		—		173
Total Operating Revenues	20,278		5,668		(17,197)		8,749		19,138		5,938		(16,266)		8,810

Operating Expenses
Operations and support	11,817		3,444		(9,730)		5,531		11,116		3,632		(9,167)		5,581
EBITDA	8,461		2,224		(7,467)		3,218		8,022		2,306		(7,099)		3,229
Depreciation and amortization	2,042		1,342		(1,685)		1,699		2,035		1,304		(1,688)		1,651
Total Operating Expenses	13,859		4,786		(11,415)		7,230		13,151		4,936		(10,855)		7,232
Operating Income	6,419		882		(5,782)		1,519		5,987		1,002		(5,411)		1,578


1Non-business wireless reported in the Communications segment under the Mobility business unit.
Results have been recast to conform to the current period's classification.


	Other Income (Expense)	3/31/20		6/30/20		9/30/20		12/31/20		2020		3/31/21		6/30/21		9/30/21		12/31/21		2021		3/31/22		6/30/22		9/30/22
	Interest expense	$	(1,963)	$	(1,990)	$	(1,923)	$	(1,851)	$	(7,727)	$	(1,823)	$	(1,640)	$	(1,627)	$	(1,626)	$	(6,716)	$	(1,626)	$	(1,502)	$	(1,420)
	Equity in net income (loss) of affiliates	—		10		29		50		89		(6)		(18)		183		444		603		521		504		392
	Other income (expense) - net	827		1,161		(211)		(2,865)		(1,088)		4,230		1,206		1,522		2,429		9,387		2,157		2,302		2,270
	Other Income (Expense) from Continuing Operations	(1,136)		(819)		(2,105)		(4,666)		(8,726)		2,401		(452)		78		1,247		3,274		1,052		1,304		1,242
[I]	Non-GAAP Adjustments	293		(26)		1,225		3,962		5,454		(2,968)		(16)		18		(769)		(3,735)		(545)		(635)		(648)
	Adjusted Other Income (Expense) from Continuing Operations	(843)		(845)		(880)		(704)		(3,272)		(567)		(468)		96		478		(461)		507		669		594
[F]	Less: Estimated interest expense impact of debt redemptions	—		—		—		—		—		371		371		371		371		1,484		371		371		—
[E]	Add: Estimated equity in net income from DIRECTV investment	971		848		789		497		3,105		746		955		293		—		1,994		—		—		—
	Standalone AT&T Adjusted Other Income (Expense)	$	128	$	3	$	(91)	$	(207)	$	(167)	$	550	$	858	$	760	$	849	$	3,017	$	878	$	1,040	$	594


EBITDA2	3/31/20			6/30/20			9/30/20			12/31/20			2020			3/31/21			6/30/21			9/30/21			12/31/21			2021			3/31/22			6/30/22			9/30/22
Net Income from Continuing Operations	$	4,849		$	3,699		$	3,204		$	(13,274)		$	(1,522)		$	7,586		$	5,969		$	5,019		$	5,202		$	23,776		$	5,149		$	4,751		$	6,346
Additions:
Income Tax Expense (Benefit)	1,298			1,043			755			(1,928)			1,168			2,009			1,151			1,296			939			5,395			1,440			1,509			908
Interest Expense	1,963			1,990			1,923			1,851			7,727			1,823			1,640			1,627			1,626			6,716			1,626			1,502			1,420
Equity in Net Income (Loss) of Affiliates	—			(10)			(29)			(50)			(89)			6			18			(183)			(444)			(603)			(521)			(504)			(392)
Other (Income) Expense - net	(827)			(1,161)			211			2,865			1,088			(4,230)			(1,206)			(1,522)			(2,429)			(9,387)			(2,157)			(2,302)			(2,270)
Depreciation and amortization	5,705			5,655			5,610			5,553			22,523			4,466			4,429			4,457			4,500			17,852			4,462			4,450			4,514
EBITDA	12,988			11,216			11,674			(4,983)			30,895			11,660			12,001			10,694			9,394			43,749			9,999			9,406			10,526
Non-GAAP Adjustments	(720)			854			(32)			15,573			15,675			1			(70)			109			86			126			191			924			188
Adjusted EBITDA	12,268			12,070			11,642			10,590			46,570			11,661			11,931			10,803			9,480			43,875			10,190			10,330			10,714
Less: Video	(1,387)			(1,212)			(1,127)			(710)			(4,436)			(1,065)			(1,364)			(418)			—			(2,847)			—			—			—
Less: Other dispositions (Held-for-sale)	(97)			(101)			(110)			(66)			(374)			(37)			(43)			(17)			—			(97)			—			—			—
Less: Intercompany eliminations	—			—			—			—			—			—			—			—			—			—			—			—			—
Less: Reclassification of allocations for separated businesses	(76)			(86)			(76)			(84)			(322)			(15)			(19)			(16)			4			(46)			—			—			—
Add: DTV-related retained costs	(350)			(350)			(350)			(350)			(1,400)			(350)			(350)			(117)			—			(817)			—			—			—
Standalone AT&T Adjusted EBITDA	$	10,358		$	10,321		$	9,979		$	9,380		$	40,038		$	10,194		$	10,155		$	10,235		$	9,484		$	40,068		$	10,190		$	10,330		$	10,714

Adjusted EBITDA Growth Rate Y/Y																-4.9		%	-1.2		%	-7.2		%	-10.5		%	-5.8		%	-12.6		%	-13.4		%	-0.8		%
Standalone AT&T Adjusted EBITDA Growth Rate Y/Y																-1.6		%	-1.6		%	2.6		%	1.1		%	0.1		%	0.0		%	1.7		%	4.7		%
Adjusted EBITDA Margin	34.7		%	35.0		%	32.9		%	28.0		%	32.6		%	32.5		%	33.4		%	34.5		%	30.5		%	32.7		%	34.3		%	34.8		%	35.7		%
Standalone AT&T Adjusted EBITDA Margin	37.5		%	38.0		%	35.6		%	30.8		%	35.3		%	35.2		%	35.0		%	35.1		%	30.5		%	33.9		%	34.3		%	34.8		%	35.7		%

2 EBITDA is operating income before depreciation and amortization. It excludes depreciation and amortization, interest expense, other income (expense) - net and income taxes from net income.


	Free Cash Flow ($B)3	3/31/21		6/30/21		9/30/21		12/31/21		2021		3/31/22		6/30/22		9/30/22
	Net cash provided by operating activities from Continuing Operations	$	9.6	$	10.2	$	9.3	$	8.1	$	37.2	$	7.6	$	7.7	$	10.1
	Add: Distributions from DIRECTV classified as investing activities	—		—		—		1.3		1.3		1.3		0.3		0.6
	Less: Capital expenditures	(3.9)		(3.7)		(4.5)		(3.5)		(15.6)		(4.6)		(4.9)		(5.9)
	Less: Cash paid vendor financing	(1.7)		(1.3)		(1.0)		(0.6)		(4.6)		(1.6)		(1.8)		(0.9)
	Free Cash Flow from Continuing Operations	4.0		5.2		3.8		5.3		18.3		2.8		1.4		3.8
[E]	Add: Estimated equity in net income from DIRECTV investment	—		—		0.7		—		0.7		—		—		—
	Standalone AT&T Free Cash Flow	$	4.0	$	5.2	$	4.5	$	5.3	$	19.0	$	2.8	$	1.4	$	3.8
	3 May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.



	NOTES

[A]	Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products.
[B]	Other dispositions include the held-for-sale businesses, Crunchyroll, Government Solutions and operations in Puerto Rico that do not meet the requirements for presentation in discontinued operations.
[C]	After the DIRECTV transaction, we expect to retain incurred operations and support costs in the range of ~$500M per quarter and depreciation of network infrastructure that provides both U-verse video and broadband services to customers of ~$150M per quarter, of which approximately 60% will be received from DIRECTV through transition service agreements and commercial arrangements. These estimated net retained costs have been applied to prior periods for comparability.
[D]	Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T.
[E]	Estimated equity in net income of affiliates from DIRECTV. Calculated at 70% of Video EBITDA, which excludes the noncash depreciation and amortization of fair value accretion expected to result from DIRECTV’s revaluation of assets and purchase price allocation.
[F]	Reflects the use of proceeds to pay down approximately $39.0 billion of borrowings and the resulting reduction to interest expense. The estimated impact of interest expense reduction was determined using the weighted-average interest rate of AT&T’s long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, of 3.8%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X.
[G]	Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate.
[H]	Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video.
[I]	Non-GAAP Adjustments:	3/31/20		6/30/20		9/30/20		12/31/20		2020		3/31/21		6/30/21		9/30/21		12/31/21		2021		3/31/22		6/30/22		9/30/22

	Transaction and other costs	$	23	$	35	$	29	$	25	$	112	$	35	$	—	$	8	$	(3)	$	40	$	98	$	185	$	58
	Employee separation costs and benefit-related (gain) loss	129		748		(61)		(37)		779		(34)		(70)		(4)		(20)		(128)		93		108		16
	Asset impairments and abandonments and restructuring	28		71		—		15,585		15,684		—		—		105		109		214		—		631		114
	Gain on spectrum transaction	(900)		—		—		—		(900)		—		—		—		—		—		—		—		—
	Adjustments to Operations and Support Expenses/ EBITDA	(720)		854		(32)		15,573		15,675		1		(70)		109		86		126		191		924		188
	Amortization of intangible assets	913		878		839		797		3,427		85		28		28		28		169		27		17		16
	Impairments	—		—		—		14		14		—		—		—		—		—		—		—		—
	Adjustments to Operating Income	193		1,732		807		16,384		19,116		86		(42)		137		114		295		218		941		204
	Other income (expense) net	293		(26)		1,225		3,962		5,454		(2,968)		(16)		18		(769)		(3,735)		(545)		(635)		(648)
	Tax impact of adjustments and discrete items	(103)		(376)		(387)		(2,861)		(3,727)		606		(249)		(2)		(109)		246		103		41		(592)
	Adjustments to Net Income	$	383	$	1,330	$	1,645	$	17,485	$	20,843	$	(2,276)	$	(307)	$	153	$	(764)	$	(3,194)	$	(224)	$	347	$	(1,036)

[J]	As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation.