At&T Inc 10-Q for FY2021 Q1

At&T Inc. (T)

10-Q 2021-05-06 For: 2021-03-31

Added on April 12, 2026

About this 10-Q

At&T Inc filed this 10-Q on May 6, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $43.94B; up 2.7% from $42.78B a year earlier
Net income: $7.55B; up 63.8% from net income of $4.61B a year earlier
Diluted EPS: $1.04; up 65.1% from $0.63 a year earlier

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		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
Common Shares (Par Value $1.00 Per Share)	T	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A	T PRA	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C	T PRC	New York Stock Exchange
AT&T Inc. 2.650% Global Notes due December 17, 2021	T 21B	New York Stock Exchange
AT&T Inc. 1.450% Global Notes due June 1, 2022	T 22B	New York Stock Exchange
AT&T Inc. 2.500% Global Notes due March 15, 2023	T 23	New York Stock Exchange
AT&T Inc. 2.750% Global Notes due May 19, 2023	T 23C	New York Stock Exchange
AT&T Inc. Floating Rate Global Notes due September 5, 2023	T 23D	New York Stock Exchange
AT&T Inc. 1.050% Global Notes due September 5, 2023	T 23E	New York Stock Exchange
AT&T Inc. 1.300% Global Notes due September 5, 2023	T 23A	New York Stock Exchange
AT&T Inc. 1.950% Global Notes due September 15, 2023	T 23F	New York Stock Exchange
AT&T Inc. 2.400% Global Notes due March 15, 2024	T 24A	New York Stock Exchange
AT&T Inc. 3.500% Global Notes due December 17, 2025	T 25	New York Stock Exchange
AT&T Inc. 0.250% Global Notes due March 4, 2026	T 26E	New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 5, 2026	T 26D	New York Stock Exchange


		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
AT&T Inc. 2.900% Global Notes due December 4, 2026	T 26A	New York Stock Exchange
AT&T Inc. 1.600% Global Notes due May 19, 2028	T 28C	New York Stock Exchange
AT&T Inc. 2.350% Global Notes due September 5, 2029	T 29D	New York Stock Exchange
AT&T Inc. 4.375% Global Notes due September 14, 2029	T 29B	New York Stock Exchange
AT&T Inc. 2.600% Global Notes due December 17, 2029	T 29A	New York Stock Exchange
AT&T Inc. 0.800% Global Notes due March 4, 2030	T 30B	New York Stock Exchange
AT&T Inc. 2.050% Global Notes due May 19, 2032	T 32A	New York Stock Exchange
AT&T Inc. 3.550% Global Notes due December 17, 2032	T 32	New York Stock Exchange
AT&T Inc. 5.200% Global Notes due November 18, 2033	T 33	New York Stock Exchange
AT&T Inc. 3.375% Global Notes due March 15, 2034	T 34	New York Stock Exchange
AT&T Inc. 2.450% Global Notes due March 15, 2035	T 35	New York Stock Exchange
AT&T Inc. 3.150% Global Notes due September 4, 2036	T 36A	New York Stock Exchange
AT&T Inc. 2.600% Global Notes due May 19, 2038	T 38C	New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 14, 2039	T 39B	New York Stock Exchange
AT&T Inc. 7.000% Global Notes due April 30, 2040	T 40	New York Stock Exchange
AT&T Inc. 4.250% Global Notes due June 1, 2043	T 43	New York Stock Exchange
AT&T Inc. 4.875% Global Notes due June 1, 2044	T 44	New York Stock Exchange
AT&T Inc. 4.000% Global Notes due June 1, 2049	T 49A	New York Stock Exchange
AT&T Inc. 4.250% Global Notes due March 1, 2050	T 50	New York Stock Exchange
AT&T Inc. 3.750% Global Notes due September 1, 2050	T 50A	New York Stock Exchange
AT&T Inc. 5.350% Global Notes due November 1, 2066	TBB	New York Stock Exchange
AT&T Inc. 5.625% Global Notes due August 1, 2067	TBC	New York Stock Exchange


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


AT&T INC.
CONSOLIDATED STATEMENTS OF INCOME
Dollars in millions except per share amounts
(Unaudited)
	Three months ended
	March 31,
		2021		2020
Operating Revenues
Service		$	38,504	$	38,883
Equipment		5,435		3,896
Total operating revenues		43,939		42,779

Operating Expenses
Cost of revenues
Equipment		5,556		4,092
Broadcast, programming and operations		7,538		6,754
Other cost of revenues (exclusive of depreciation and amortization shown separately below)		7,993		8,342
Selling, general and administrative		9,382		8,760
Asset impairments and abandonments		—		123
Depreciation and amortization		5,809		7,222
Total operating expenses		36,278		35,293
Operating Income		7,661		7,486
Other Income (Expense)
Interest expense		(1,870)		(2,018)
Equity in net income (loss) of affiliates		52		(6)
Other income (expense) — net		4,221		803
Total other income (expense)		2,403		(1,221)
Income Before Income Taxes		10,064		6,265
Income tax expense		2,122		1,302
Net Income		7,942		4,963
Less: Net Income Attributable to Noncontrolling Interest		(392)		(353)
Net Income Attributable to AT&T		$	7,550	$	4,610
Less: Preferred Stock Dividends		(50)		(32)
Net Income Attributable to Common Stock		$	7,500	$	4,578
Basic Earnings Per Share Attributable to Common Stock		$	1.04	$	0.63
Diluted Earnings Per Share Attributable to Common Stock		$	1.04	$	0.63
Weighted Average Number of Common Shares Outstanding — Basic (in millions)		7,161		7,187
Weighted Average Number of Common Shares Outstanding — with Dilution (in millions)		7,188		7,214


AT&T INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Dollars in millions
(Unaudited)
	Three months ended
	March 31,
		2021		2020
Net income		$	7,942	$	4,963
Other comprehensive income (loss), net of tax:
Foreign currency:
Translation adjustment (includes $(4) and $(51) attributable to noncontrolling interest), net of taxes of $(37) and $(62)		(109)		(1,854)
Securities:
Net unrealized gains (losses), net of taxes of $(18) and $22		(55)		66
Reclassification adjustment included in net income, net of taxes of $(1) and $0		(2)		—
Derivative instruments:
Net unrealized gains (losses), net of taxes of $136 and $(971)		511		(3,657)
Reclassification adjustment included in net income, net of taxes of $6 and $0		24		—
Defined benefit postretirement plans:
Amortization of net prior service credit included in net income, net of taxes of $(165) and $(151)		(504)		(461)
Other comprehensive income (loss)		(135)		(5,906)
Total comprehensive income (loss)		7,807		(943)
Less: Total comprehensive income attributable to noncontrolling interest		(388)		(302)
Total Comprehensive Income (Loss) Attributable to AT&T		$	7,419	$	(1,245)


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


AT&T INC.
CONSOLIDATED BALANCE SHEETS
Dollars in millions except per share amounts
	March 31, 2021		December 31, 2020
Assets	(Unaudited)
Current Assets
Cash and cash equivalents	$	11,342	$	9,740
Accounts receivable – net of related allowances for credit loss of $954 and $1,221	16,971		20,215
Inventories	3,347		3,695
Prepaid and other current assets	31,094		18,358
Total current assets	62,754		52,008
Noncurrent Inventories and Theatrical Film and Television Production Costs	15,626		14,752
Property, plant and equipment	322,534		327,751
Less: accumulated depreciation and amortization	(197,927)		(200,436)
Property, Plant and Equipment – Net	124,607		127,315
Goodwill	135,168		135,259
Licenses – Net	87,947		93,840
Trademarks and Trade Names – Net	23,043		23,297
Distribution Networks – Net	13,334		13,793
Other Intangible Assets – Net	13,384		15,386
Investments in and Advances to Equity Affiliates	1,805		1,780
Operating Lease Right-Of-Use Assets	24,415		24,714
Deposits on Wireless Licenses	23,406		—
Other Assets	21,496		23,617
Total Assets	$	546,985	$	525,761
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	19,505	$	3,470
Accounts payable and accrued liabilities	48,245		50,051
Advanced billings and customer deposits	5,029		6,176
Dividends payable	3,829		3,741
Total current liabilities	76,608		63,438
Long-Term Debt	160,694		153,775
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	61,886		60,472
Postemployment benefit obligation	14,723		18,276
Operating lease liabilities	21,766		22,202
Other noncurrent liabilities	28,229		28,358
Total deferred credits and other noncurrent liabilities	126,604		129,308
Stockholders’ Equity
Preferred stock ($1 par value, 10,000,000 authorized):
Series A (48,000 issued and outstanding at March 31, 2021 and December 31, 2020)	—		—
Series B (20,000 issued and outstanding at March 31, 2021 and December 31, 2020)	—		—
Series C (70,000 issued and outstanding at March 31, 2021 and December 31, 2020)	—		—
Common stock ($1 par value, 14,000,000,000 authorized at March 31, 2021 and December 31, 2020: issued 7,620,748,598 at March 31, 2021 and December 31, 2020)	7,621		7,621
Additional paid-in capital	129,856		130,175
Retained earnings	41,154		37,457
Treasury stock (480,892,174 at March 31, 2021 and 494,826,583 at December 31, 2020, at cost)	(17,342)		(17,910)
Accumulated other comprehensive income	4,199		4,330
Noncontrolling interest	17,591		17,567
Total stockholders’ equity	183,079		179,240
Total Liabilities and Stockholders’ Equity	$	546,985	$	525,761


AT&T INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in millions
(Unaudited)
	Three months ended
	March 31,
	2021		2020
Operating Activities
Net income	$	7,942	$	4,963
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,809		7,222
Amortization of film and television costs	2,886		2,269
Undistributed earnings from investments in equity affiliates	(47)		39
Provision for uncollectible accounts	321		780
Deferred income tax expense	1,848		259
Net (gain) loss on investments, net of impairments	(119)		(646)
Pension and postretirement benefit expense (credit)	(974)		(748)
Actuarial (gain) loss on pension and postretirement benefits	(2,844)		—
Asset impairments and abandonments	—		123
Changes in operating assets and liabilities:
Receivables	751		1,695
Other current assets, inventories and theatrical film and television production costs	(3,518)		(3,267)
Accounts payable and other accrued liabilities	(3,060)		(3,884)
Equipment installment receivables and related sales	1,190		535
Deferred customer contract acquisition and fulfillment costs	244		105
Postretirement claims and contributions	(343)		(111)
Other - net	(159)		(468)
Total adjustments	1,985		3,903
Net Cash Provided by Operating Activities	9,927		8,866
Investing Activities
Capital expenditures, including $(61) and $(28) of interest during construction	(4,033)		(4,966)
Acquisitions, net of cash acquired	(22,884)		(100)
Dispositions	51		118
(Purchases), sales and settlements of securities and investments, net	(4)		(6)
Advances to and investments in equity affiliates, net	18		(68)
Net Cash Used in Investing Activities	(26,852)		(5,022)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less	687		1,742
Issuance of other short-term borrowings	15,485		1,390
Issuance of long-term debt	9,097		4,357
Repayment of long-term debt	(902)		(4,422)
Payment of vendor financing	(1,690)		(791)
Issuance of preferred stock	—		3,869
Purchase of treasury stock	(176)		(5,463)
Issuance of treasury stock	63		58
Dividends paid	(3,741)		(3,737)
Other - net	(340)		(3,102)
Net Cash Provided by (Used in) Financing Activities	18,483		(6,099)
Net increase (decrease) in cash and cash equivalents and restricted cash	1,558		(2,255)
Cash and cash equivalents and restricted cash beginning of year	9,870		12,295
Cash and Cash Equivalents and Restricted Cash End of Period	$	11,428	$	10,040


AT&T INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Dollars and shares in millions except per share amounts
(Unaudited)
	Three months ended
		March 31, 2021	March 31, 2020
			Shares	Amount		Shares	Amount
Preferred Stock - Series A
Balance at beginning of period			—	$	—	—	$	—
Issuance of stock			—	—		—	—
Balance at end of period			—	$	—	—	$	—
Preferred Stock - Series B
Balance at beginning of period			—	$	—	—	$	—
Issuance of stock			—	—		—	—
Balance at end of period			—	$	—	—	$	—
Preferred Stock - Series C
Balance at beginning of period			—	$	—	—	$	—
Issuance of stock			—	—		—	—
Balance at end of period			—	$	—	—	$	—
Common Stock
Balance at beginning of period			7,621	$	7,621	7,621	$	7,621
Issuance of stock			—	—		—	—
Balance at end of period			7,621	$	7,621	7,621	$	7,621
Additional Paid-In Capital
Balance at beginning of period				$	130,175		$	126,279
Repurchase and acquisition of common stock				—			67
Issuance of preferred stock				—			3,869
Issuance of treasury stock				(70)			(47)
Share-based payments				(249)			(202)

Balance at end of period				$	129,856		$	129,966
Retained Earnings
Balance at beginning of period				$	37,457		$	57,936
Cumulative effect of accounting change and other adjustments				—			(293)
Adjusted beginning balance				37,457			57,643
Net income attributable to AT&T				7,550			4,610
Preferred stock dividends				(117)			(32)
Common stock dividends ($0.52 and $0.52 per share)				(3,736)			(3,687)
Balance at end of period				$	41,154		$	58,534


	Foreign Currency Translation Adjustment			Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivative Instruments			Defined Benefit Postretirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2020	$	(3,926)		$	111		$	(779)		$	8,924		$	4,330
Other comprehensive income (loss) before reclassifications	(105)			(55)			511			—			351
Amounts reclassified from accumulated OCI	—		1	(2)		1	24		2	(504)		3	(482)
Net other comprehensive income (loss)	(105)			(57)			535			(504)			(131)
Balance as of March 31, 2021	$	(4,031)		$	54		$	(244)		$	8,420		$	4,199

	Foreign Currency Translation Adjustment			Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivative Instruments			Defined Benefit Postretirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2019	$	(3,056)		$	48		$	(37)		$	8,515		$	5,470
Other comprehensive income (loss) before reclassifications	(1,803)			66			(3,657)			—			(5,394)
Amounts reclassified from accumulated OCI	—		1	—		1	—		2	(461)		3	(461)
Net other comprehensive income (loss)	(1,803)			66			(3,657)			(461)			(5,855)
Balance as of March 31, 2020	$	(4,859)		$	114		$	(3,694)		$	8,054		$	(385)


For the three months ended March 31, 2021
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	19,034	$	11,018	$	8,016	$	2,014	$	6,002	$	—	$	6,002
Business Wireline	6,046		3,710		2,336		1,278		1,058		—		1,058
Consumer Wireline	3,098		2,031		1,067		762		305		—		305
Total Communications	28,178		16,759		11,419		4,054		7,365		—		7,365





WarnerMedia	8,526		6,403		2,123		163		1,960		70		2,030
Latin America
Vrio	743		661		82		117		(35)		(4)		(39)
Mexico	631		620		11		145		(134)		—		(134)
Total Latin America	1,374		1,281		93		262		(169)		(4)		(173)
Segment Total	38,078		24,443		13,635		4,479		9,156		$	66	$	9,222
Corporate and Other
Corporate1	426		1,213		(787)		35		(822)
Video	6,725		5,660		1,065		164		901
Acquisition-related items	—		37		(37)		1,131		(1,168)
Certain significant items	—		57		(57)		—		(57)
Eliminations and consolidations	(1,290)		(941)		(349)		—		(349)
AT&T Inc.	$	43,939	$	30,469	$	13,470	$	5,809	$	7,661
1Operations and Support Expenses include $669 for the reclassification of prior service credit amortization.


For the three months ended March 31, 2020
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	17,402	$	9,569	$	7,833	$	2,045	$	5,788	$	—	$	5,788
Business Wireline	6,266		3,887		2,379		1,286		1,093		—		1,093
Consumer Wireline	3,111		1,879		1,232		712		520		—		520
Total Communications	26,779		15,335		11,444		4,043		7,401		—		7,401





WarnerMedia	7,765		5,605		2,160		161		1,999		15		2,014
Latin America
Vrio	887		783		104		147		(43)		4		(39)
Mexico	703		714		(11)		134		(145)		—		(145)
Total Latin America	1,590		1,497		93		281		(188)		4		(184)
Segment Total	36,134		22,437		13,697		4,485		9,212		$	19	$	9,231
Corporate and Other
Corporate1	534		1,012		(478)		90		(568)
Video	7,407		6,020		1,387		591		796
Acquisition-related items	—		182		(182)		2,056		(2,238)
Certain significant items	—		(658)		658		—		658
Eliminations and consolidations	(1,296)		(922)		(374)		—		(374)
AT&T Inc.	$	42,779	$	28,071	$	14,708	$	7,222	$	7,486
1Operations and Support Expenses include $612 for the reclassification of prior service credit amortization.


	Three months ended March 31,
		2021		2020
Communications		$	7,365	$	7,401
WarnerMedia		2,030		2,014
Latin America		(173)		(184)
Segment Contribution		9,222		9,231
Reconciling Items:
Corporate and Other		(822)		(568)
Video		901		796
Merger costs		(37)		(182)
Amortization of intangibles acquired		(1,131)		(2,056)
Asset impairments and abandonments		—		(123)
Gain on spectrum transaction1		—		900
Employee separation costs and benefit-related losses		(57)		(119)
Segment equity in net income of affiliates		(66)		(19)
Eliminations and consolidations		(349)		(374)
AT&T Operating Income		7,661		7,486
Interest Expense		1,870		2,018
Equity in net income (loss) of affiliates		52		(6)
Other income (expense) - net		4,221		803
Income Before Income Taxes		$	10,064	$	6,265


Intersegment Reconciliation
	Three months ended March 31,
		2021		2020
Intersegment Revenues
Communications		$	3	$	2
WarnerMedia		838		817
Latin America		—		—
Total Intersegment Revenues		841		819
Consolidations		449		477
Eliminations and consolidations		$	1,290	$	1,296


	March 31, 2021		December 31, 2020
Assets
Communications1	$	506,168	$	506,102
WarnerMedia	148,588		148,037
Latin America	15,522		15,811
Corporate and eliminations1	(123,293)		(144,189)
Total	$	546,985	$	525,761
1Amounts above, including December 31, 2020, have been updated to reflect the classification of our Video business as held-for-sale, which included the recast of historical results to remove Video from our Communications segment and instead report in Corporate and Other (see Note 8).


	March 31,		December 31,
Consolidated Balance Sheets	2021		2020
Contract asset	$	3,554	$	3,501
Contract liability	5,517		6,879


	March 31, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Notes and debentures1	$	171,194	$	192,420	$	155,209	$	187,224
Commercial paper	7,078		7,078		—		—

Investment securities2	3,208		3,208		3,249		3,249
1Includes credit agreement borrowings. Amounts at March 31, 2021 exclude $205 associated with Video business that was classified as held-for-sale (see Note 8).
2Excludes investments accounted for under the equity method.


	March 31, 2021
	Level 1		Level 2		Level 3		Total
Equity Securities
Domestic equities	$	1,060	$	—	$	—	$	1,060
International equities	198		—		—		198
Fixed income equities	227		—		—		227
Available-for-Sale Debt Securities	—		1,404		—		1,404
Asset Derivatives

Cross-currency swaps	—		1,461		—		1,461

Foreign exchange contracts	—		8		—		8
Liability Derivatives

Cross-currency swaps	—		(2,038)		—		(2,038)

Foreign exchange contracts	—		(7)		—		(7)


Effect of Derivatives on the Consolidated Statements of Income
	Three months ended
	March 31,
Fair Value Hedging Relationships		2021		2020
Interest rate swaps (Interest expense):
Gain (Loss) on interest rate swaps		$	(1)	$	10
Gain (Loss) on long-term debt		1		(10)
Cross-currency swaps:
Gain (Loss) on cross-currency swaps		(48)		—
Gain (Loss) on long-term debt		48		—
Gain (Loss) recognized in accumulated OCI		(1)		—


	Three months ended
	March 31,
Cash Flow Hedging Relationships		2021		2020
Cross-currency swaps:
Gain (Loss) recognized in accumulated OCI		$	644	$	(3,979)
Foreign exchange contracts:
Gain (Loss) recognized in accumulated OCI		4		(13)
Other income (expense) - net reclassified from accumulated OCI into income		(5)		16
Interest rate locks:
Gain (Loss) recognized in accumulated OCI		—		(636)
Interest income (expense) reclassified from accumulated OCI into income		(25)		(16)


Assets held-for-sale:
Current assets	$	3,776
Property, plant and equipment - net	2,410
Licenses, net	5,798
Other intangible assets, net	1,633
Other assets	1,948
Total assets	$	15,565

Liabilities related to assets held-for-sale:
Current liabilities	$	4,022
Long-term debt	205
Other noncurrent liabilities	351
Total liabilities	$	4,578


	March 31, 2021			December 31, 2020
Operating Leases
Operating lease right-of-use assets	$	24,415		$	24,714

Accounts payable and accrued liabilities	$	3,564		$	3,537
Operating lease obligation	21,766			22,202
Total operating lease obligation	$	25,330		$	25,739
Finance Leases
Property, plant and equipment, at cost	$	3,414		$	3,586
Accumulated depreciation and amortization	(1,308)			(1,361)
Property, plant and equipment, net	$	2,106		$	2,225

Current portion of long-term debt	$	180		$	189
Long-term debt	1,747			1,847
Total finance lease obligation	$	1,927		$	2,036

	March 31,
	2021			2020
Weighted-Average Remaining Lease Term (years)
Operating leases	8.4			8.4
Finance leases	9.8			10.7

Weighted-Average Discount Rate
Operating leases	4.0		%	4.2		%
Finance leases	8.0		%	8.4		%


At March 31, 2021	Operating		Finance
	Leases		Leases
Remainder of 2021	$	3,631	$	242
2022	4,647		314
2023	4,212		291
2024	3,671		272
2025	3,015		269
Thereafter	11,668		1,587
Total lease payments	30,844		2,975
Less: imputed interest	(5,514)		(1,048)
Total	$	25,330	$	1,927


Net commercial paper borrowings	$	7,072
Issuance of Notes and Debentures1:
U.S. dollar denominated global notes	$	6,000
Initial average rate of 1.27%
Euro denominated global notes	1,461
Rate of 0.00%
2021 Syndicated Term Loan	7,350
BAML Bilateral Term Loan	2,000
Private financing	750
Other	636
Debt Issuances	$	18,197

Repayments:
Private financing	$	(649)
Other	(253)
Repayments of long-term debt	$	(902)


	First Quarter
						Percent
		2021		2020		Change
Operating Revenues
Communications		$	28,178	$	26,779	5.2	%
WarnerMedia		8,526		7,765		9.8
Latin America		1,374		1,590		(13.6)
Corporate		426		534		(20.2)
Video		6,725		7,407		(9.2)
Eliminations and consolidation		(1,290)		(1,296)		0.5
AT&T Operating Revenues		43,939		42,779		2.7

Operating Contribution
Communications		7,365		7,401		(0.5)
WarnerMedia		2,030		2,014		0.8
Latin America		(173)		(184)		6.0
Segment Operating Contribution		$	9,222	$	9,231	(0.1)	%


COMMUNICATIONS SEGMENT	First Quarter
						Percent
		2021		2020		Change
Segment Operating Revenues
Mobility		$	19,034	$	17,402	9.4	%
Business Wireline		6,046		6,266		(3.5)
Consumer Wireline		3,098		3,111		(0.4)
Total Segment Operating Revenues		28,178		26,779		5.2

Segment Operating Contribution
Mobility		6,002		5,788		3.7
Business Wireline		1,058		1,093		(3.2)
Consumer Wireline		305		520		(41.3)
Total Segment Operating Contribution		$	7,365	$	7,401	(0.5)	%


Selected Subscribers and Connections
	March 31,
(000s)	2021	2020
Mobility Subscribers	186,108	169,198
Total domestic broadband connections	15,435	15,315
Network access lines in service	6,988	8,160
U-verse VoIP connections	3,684	4,213


Communications Business Unit Discussion
Mobility Results
	First Quarter
						Percent
		2021		2020		Change
Operating revenues
Service		$	14,048	$	13,968	0.6	%
Equipment		4,986		3,434		45.2
Total Operating Revenues		19,034		17,402		9.4

Operating expenses
Operations and support		11,018		9,569		15.1
Depreciation and amortization		2,014		2,045		(1.5)
Total Operating Expenses		13,032		11,614		12.2
Operating Income		6,002		5,788		3.7
Equity in Net Income (Loss) of Affiliates		—		—		—
Operating Contribution		$	6,002	$	5,788	3.7	%


Subscribers
	March 31,		Percent
(in 000s)	2021	2020	Change
Postpaid	77,934	75,148	3.7	%
Postpaid phone	64,752	63,105	2.6
Prepaid	18,387	17,808	3.3
Reseller	6,501	6,736	(3.5)
Connected devices1	83,286	69,506	19.8
Total Mobility Subscribers	186,108	169,198	10.0	%


Net Additions
	First Quarter
						Percent
(in 000s)		2021		2020		Change
Postpaid Phone Net Additions		595		163		—	%
Total Phone Net Additions		802		120		—

Postpaid2		823		27		—
Prepaid		279		(45)		—
Reseller		(68)		(190)		64.2
Connected devices3		2,517		3,518		(28.5)
Mobility Net Subscriber Additions1		3,551		3,310		7.3	%

Postpaid Churn4		0.93	%	1.08	%	(15)	BP
Postpaid Phone-Only Churn4		0.76	%	0.86	%	(10)	BP
1Excludes migrations and acquisition-related activities during the period.
2In addition to postpaid phones, includes tablets and wearables and other. Tablet net (losses) were (63) and (267) for the quarter ended March 31, 2021 and 2020. Wearables and other net adds were 291 and 131 for the quarter ended March 31, 2021 and 2020.
3Includes data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems. Excludes postpaid tablets and other postpaid data devices. Wholesale connected car net adds were 1.2 million for the quarter ended March 31, 2021.
4Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month divided by the total number of wireless subscribers at the beginning of that month. The churn rate for the period is equal to the average of the churn rate for each month of that period.


Business Wireline Results
	First Quarter
						Percent
		2021		2020		Change
Operating revenues
Service		$	5,872	$	6,091	(3.6)	%
Equipment		174		175		(0.6)
Total Operating Revenues		6,046		6,266		(3.5)

Operating expenses
Operations and support		3,710		3,887		(4.6)
Depreciation and amortization		1,278		1,286		(0.6)
Total Operating Expenses		4,988		5,173		(3.6)
Operating Income		1,058		1,093		(3.2)
Equity in Net Income (Loss) of Affiliates		—		—		—
Operating Contribution		$	1,058	$	1,093	(3.2)	%


Consumer Wireline Results
	First Quarter
						Percent
		2021		2020		Change
Operating revenues
IP Broadband		$	2,205	$	2,109	4.6	%
Legacy voice and data services		519		581		(10.7)
Other service and equipment		374		421		(11.2)
Total Operating Revenues		3,098		3,111		(0.4)

Operating expenses
Operations and support		2,031		1,879		8.1
Depreciation and amortization		762		712		7.0
Total Operating Expenses		2,793		2,591		7.8
Operating Income		305		520		(41.3)
Equity in Net Income (Loss) of Affiliates		—		—		—
Operating Contribution		$	305	$	520	(41.3)	%


Connections
	March 31,		Percent
(in 000s)	2021	2020	Change
Broadband Connections
Total Broadband Connections	14,146	14,046	0.7	%
Fiber Broadband Connections	5,186	4,096	26.6

Voice Connections
Retail Consumer Switched Access Lines	2,740	3,196	(14.3)
U-verse Consumer VoIP Connections	3,096	3,630	(14.7)
Total Retail Consumer Voice Connections	5,836	6,826	(14.5)	%


WARNERMEDIA SEGMENT	First Quarter
						Percent
		2021		2020		Change
Segment Operating Revenues
Subscription		$	3,830	$	3,401	12.6	%
Content		3,420		3,303		3.5
Advertising		1,750		1,477		18.5
Other		169		254		(33.5)
Eliminations		(643)		(670)		4.0
Total Segment Operating Revenues		8,526		7,765		9.8

Segment Operating Expenses
Direct Costs
Programming		4,383		3,513		24.8
Marketing		849		526		61.4
Other		722		669		7.9
General and administrative		967		1,222		(20.9)
Eliminations and other		(518)		(325)		(59.4)
Depreciation and amortization		163		161		1.2
Total Operating Expenses		6,566		5,766		13.9
Operating Income		1,960		1,999		(2.0)
Equity in Net Income (Loss) of Affiliates		70		15		—
Total Segment Operating Contribution		$	2,030	$	2,014	0.8	%


LATIN AMERICA SEGMENT	First Quarter
						Percent
		2021		2020		Change
Segment Operating Revenues
Vrio		$	743	$	887	(16.2)	%
Mexico		631		703		(10.2)
Total Segment Operating Revenues		1,374		1,590		(13.6)

Segment Operating Contribution
Vrio		(39)		(39)		—
Mexico		(134)		(145)		7.6
Total Segment Operating Contribution		$	(173)	$	(184)	6.0	%


Latin America Business Unit Discussion
Vrio Results
	First Quarter
						Percent
		2021		2020		Change
Operating revenues		$	743	$	887	(16.2)	%

Operating expenses
Operations and support		661		783		(15.6)
Depreciation and amortization		117		147		(20.4)
Total Operating Expenses		778		930		(16.3)
Operating Income (Loss)		(35)		(43)		18.6
Equity in Net Income (Loss) of Affiliates		(4)		4		—
Operating Contribution		$	(39)	$	(39)	—	%


Mexico Results
	First Quarter
		2021		2020		Percent Change
Operating revenues
Service		$	439	$	467	(6.0)	%
Equipment		192		236		(18.6)
Total Operating Revenues		631		703		(10.2)

Operating expenses
Operations and support		620		714		(13.2)
Depreciation and amortization		145		134		8.2
Total Operating Expenses		765		848		(9.8)
Operating Income (Loss)		(134)		(145)		7.6
Equity in Net Income (Loss) of Affiliates		—		—		—
Operating Contribution		$	(134)	$	(145)	7.6	%



Video Results
	First Quarter
						Percent
		2021		2020		Change
Operating revenues
Service		$	6,684	$	7,397	(9.6)	%
Equipment		41		10		—
Total Operating Revenues		6,725		7,407		(9.2)

Operating expenses
Operations and support		5,660		6,020		(6.0)
Depreciation and amortization1		164		591		(72.3)
Total Operating Expenses		5,824		6,611		(11.9)
Operating Income		901		796		13.2
Equity in Net Income (Loss) of Affiliates		—		—		—
Operating Contribution		$	901	$	796	13.2	%
1Includes depreciation on assets that support AT&T U-verse products that provide both video and broadband services to customers over a shared network infrastructure.