At&T Inc 8-K, filed Apr 18, 2022
At&T Inc. (T)
8-K
2022-04-18
For: 2022-04-15
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Added on
April 12, 2026
About this 8-K
At&T Inc filed this 8-K on April 18, 2022, reporting on events of April 15, 2022.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
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 (Date of earliest event reported) April 15, 2022
______________________________________________________
(Exact Name of Registrant as Specified in Charter)
______________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code (210 ) 821-4105
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| 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)) | |||||
Securities Registered Pursuant to Section 12(b) of the Act
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
Throughout this document, AT&T Inc. is referred to as “we” or “AT&T.” AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries.
As a convenience to investors, we are providing quarterly consolidated and segment and business unit income statement information as a supplement to our Form 8-K filed on April 14, 2022, which included required pro forma financial information prepared in accordance with Article 11 of Regulation S-X, to give effect to the pro forma discontinued operations presentation of the separation and distribution of the WarnerMedia business. For discontinued operations, we evaluated transactions completed during 2021 that were components of AT&T’s single plan of a strategic shift, including dispositions that may not have individually met the criteria due to materiality, and have determined discontinued operations to be comprised of the WarnerMedia, Vrio, Xandr and Playdemic Ltd. (Playdemic) transactions (collectively, the “Transactions”). Beginning with the second quarter of 2022, the transactions will be reflected in our historical financial statements as discontinued operations.
Additionally, for the quarter ended March 31, 2022, we have reclassified in to "Corporate" certain administrative costs borne by AT&T where the business units do not influence decision making to conform with the current period presentation. This recast increased Corporate operations and support expenses by approximately $1.2 billion in 2020 and $270 million in 2021. Correspondingly, this recast lowered administrative expenses at WarnerMedia, Video and AT&T's Communications operations with no change on a consolidated basis. We are also enhancing our reporting within Corporate to provide additional details of the activities and reconciling items.
This supplemental information in the exhibits includes:
•Reconciliation of AT&T's reported consolidated income statement to: (1) continuing operations, (2) standalone AT&T, and (3) adjusted standalone AT&T as Exhibit 99.1.
•Presentation of AT&T's segment and business unit results, recast for parent allocation methodology, and enhanced details of Corporate items reconciled to: (1) total AT&T reported operating results and EBITDA (operating income before depreciation and amortization), (2) standalone AT&T operating results and EBITDA, and (3) adjusted standalone AT&T operating results and EBITDA as Exhibit 99.2.
•Presentation of standalone AT&T segment and business unit results reconciled to adjusted standalone AT&T operating results and EBITDA as Exhibit 99.3.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this Form 8-K contains financial estimates, statements as to the expected timing, completion and effects of the Xandr transaction and other forward-looking statements that are subject to risks and uncertainties. These estimates and statements are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this filing based on new information or otherwise.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are furnished as part of this report:
(d) | Exhibits | |||||||
| Supplemental consolidated quarterly income statement reconciliation of reported, continuing operations and Standalone AT&T | ||||||||
| Supplemental quarterly segment information with reconciliation to Standalone AT&T | ||||||||
| Supplemental quarterly segment information of Standalone AT&T | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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 hereunto duly authorized.
| AT&T INC. | |||||
Date: April 15, 2022 | By: /s/ Debra L. Dial . Debra L. Dial Senior Vice President and Controller | ||||
| Comparative Basis Financial Information | |||||||||||||||||||||||||||||||||||
Supplemental Unaudited Quarterly Comparative Financial Information1 | |||||||||||||||||||||||||||||||||||
| Dollars in millions | |||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||
| Operating Revenues | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Reported AT&T Operating Revenues | $ | 42,779 | $ | 40,950 | $ | 42,340 | $ | 45,691 | $ | 171,760 | $ | 43,939 | $ | 44,045 | $ | 39,922 | $ | 40,958 | $ | 168,864 | |||||||||||||||
| [A] | Less: WarnerMedia | (7,765) | (6,728) | (7,395) | (8,554) | (30,442) | (8,526) | (8,791) | (8,442) | (9,873) | (35,632) | ||||||||||||||||||||||||
| [B] | Less: Vrio | (887) | (752) | (753) | (762) | (3,154) | (743) | (749) | (756) | (359) | (2,607) | ||||||||||||||||||||||||
| [C] | Less: Securitization - Revolver (WarnerMedia) | (14) | (23) | (21) | (22) | (80) | (31) | (35) | (41) | (29) | (136) | ||||||||||||||||||||||||
| [D] | Add: Other items (conveyed) retained | 12 | 9 | 13 | 18 | 52 | 11 | 16 | 14 | 15 | 56 | ||||||||||||||||||||||||
| [K] | Less: Intercompany eliminations | 1,232 | 1,070 | 1,223 | 1,388 | 4,913 | 1,228 | 1,254 | 628 | 383 | 3,493 | ||||||||||||||||||||||||
| Revenues from Continuing Operations | 35,357 | 34,526 | 35,407 | 37,759 | 143,049 | 35,878 | 35,740 | 31,325 | 31,095 | 134,038 | |||||||||||||||||||||||||
| [E] | Less: Video | (7,407) | (7,021) | (7,014) | (7,168) | (28,610) | (6,725) | (6,639) | (2,149) | — | (15,513) | ||||||||||||||||||||||||
| [F] | Less: Other dispositions (Held-for-sale) | (369) | (369) | (420) | (256) | (1,414) | (231) | (158) | (64) | — | (453) | ||||||||||||||||||||||||
| [K] | Less: Intercompany eliminations | 64 | 55 | 65 | 83 | 267 | 62 | 57 | 17 | — | 136 | ||||||||||||||||||||||||
| Standalone AT&T Operating Revenues | $ | 27,645 | $ | 27,191 | $ | 28,038 | $ | 30,418 | $ | 113,292 | $ | 28,984 | $ | 29,000 | $ | 29,129 | $ | 31,095 | $ | 118,208 | |||||||||||||||
| Reported Revenue Growth Rate Y/Y | 2.7 | % | 7.6 | % | (5.7) | % | (10.4) | % | (1.7) | % | |||||||||||||||||||||||||
| Revenue from Continuing Operations Growth Rate Y/Y | 1.5 | % | 3.5 | % | (11.5) | % | (17.6) | % | (6.3) | % | |||||||||||||||||||||||||
| Standalone AT&T Revenue Growth Rate Y/Y | 4.8 | % | 6.7 | % | 3.9 | % | 2.2 | % | 4.3 | % | |||||||||||||||||||||||||
1
| Operations and Support Expenses | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Reported AT&T Operations and Support Expenses | $ | 28,071 | $ | 30,133 | $ | 29,178 | $ | 49,457 | $ | 136,839 | $ | 30,469 | $ | 35,015 | $ | 27,194 | $ | 29,977 | $ | 122,655 | |||||||||||||||
| [A] | Less: WarnerMedia | (5,605) | (4,656) | (5,483) | (5,835) | (21,579) | (6,403) | (6,934) | (6,271) | (8,129) | (27,737) | ||||||||||||||||||||||||
| [B] | Less: Vrio | (783) | (661) | (675) | (681) | (2,800) | (661) | (660) | (660) | (321) | (2,302) | ||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to WarnerMedia and Vrio | (242) | (2,440) | (183) | (1,082) | (3,947) | (59) | (4,555) | (179) | (215) | (5,008) | ||||||||||||||||||||||||
| [D] | Add: Other items (conveyed) retained | 57 | 67 | 55 | 75 | 254 | 41 | 42 | 48 | 40 | 171 | ||||||||||||||||||||||||
| [C] | Less: WarnerMedia Film amortization recharacterization and receivable securitization | 13 | 54 | (11) | (16) | 40 | (49) | (52) | (28) | (33) | (162) | ||||||||||||||||||||||||
| [K] | Less: Intercompany eliminations | 858 | 814 | 853 | 823 | 3,348 | 879 | 882 | 529 | 383 | 2,673 | ||||||||||||||||||||||||
| Operations and Support Expenses from Continuing Operations | 22,369 | 23,311 | 23,734 | 42,741 | 112,155 | 24,217 | 23,738 | 20,633 | 21,702 | 90,290 | |||||||||||||||||||||||||
| [D] | Less: Video | (6,020) | (5,809) | (5,887) | (6,458) | (24,174) | (5,660) | (5,275) | (1,731) | — | (12,666) | ||||||||||||||||||||||||
| [E] | Less: Other dispositions (Held-for-sale) | (272) | (268) | (310) | (190) | (1,040) | (194) | (115) | (47) | — | (356) | ||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to DTV and other dispositions | (32) | (98) | (24) | (15,529) | (15,683) | (13) | (22) | 37 | 11 | 13 | ||||||||||||||||||||||||
| [K] | Less: Intercompany eliminations | 64 | 55 | 65 | 83 | 267 | 62 | 57 | 17 | — | 136 | ||||||||||||||||||||||||
| [M] | Less: Reclassification of allocations for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | ||||||||||||||||||||||||
| [G] | Add: DTV-related retained costs | 350 | 350 | 350 | 350 | 1,400 | 350 | 350 | 117 | — | 817 | ||||||||||||||||||||||||
| Standalone AT&T Operations and Support Expenses | 16,535 | 17,627 | 18,004 | 21,081 | 73,247 | 18,777 | 18,752 | 19,042 | 21,709 | 78,280 | |||||||||||||||||||||||||
| [L] | Standalone AT&T Merger & Significant items | 750 | (757) | 56 | (44) | 5 | 11 | 93 | (145) | (97) | (138) | ||||||||||||||||||||||||
| Standalone AT&T Adjusted Operations and Support Expenses | $ | 17,285 | $ | 16,870 | $ | 18,060 | $ | 21,037 | $ | 73,252 | $ | 18,788 | $ | 18,845 | $ | 18,897 | $ | 21,612 | $ | 78,142 | |||||||||||||||
| Reported Operations and Support Expense Growth Rate Y/Y | 8.5 | % | 16.2 | % | (6.8) | % | (39.4) | % | (10.4) | % | |||||||||||||||||||||||||
| Operations and Support Expenses from Continuing Operations Growth Rate Y/Y | 8.3 | % | 1.8 | % | (13.1) | % | (49.2) | % | (19.5) | % | |||||||||||||||||||||||||
| Standalone AT&T Operations and Support Expense Growth Rate Y/Y | 13.6 | % | 6.4 | % | 5.8 | % | 3.0 | % | 6.9 | % | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Operations and Support Expense Growth Rate Y/Y | 8.7 | % | 11.7 | % | 4.6 | % | 2.7 | % | 6.7 | % | |||||||||||||||||||||||||
2
| Depreciation and Amortization Expense | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Reported AT&T Depreciation and Amortization Expense | $ | 7,222 | $ | 7,285 | $ | 7,030 | $ | 6,979 | $ | 28,516 | $ | 5,809 | $ | 5,761 | $ | 5,619 | $ | 5,673 | $ | 22,862 | |||||||||||||||
| [A] | Less: WarnerMedia | (161) | (164) | (169) | (177) | (671) | (163) | (165) | (163) | (165) | (656) | ||||||||||||||||||||||||
| [B] | Less: Vrio | (147) | (127) | (126) | (120) | (520) | (117) | (114) | — | — | (231) | ||||||||||||||||||||||||
| [D] | Add: Other items (conveyed) retained | 3 | 3 | 3 | 3 | 12 | 3 | 3 | 3 | 3 | 12 | ||||||||||||||||||||||||
| [C] | Less: WarnerMedia Film amortization recharacterization and receivable securitization | (69) | (77) | (47) | (38) | (231) | (20) | (16) | (18) | (19) | (73) | ||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to WarnerMedia and Vrio | (1,143) | (1,267) | (1,082) | (1,093) | (4,585) | (1,045) | (1,040) | (1,021) | (1,014) | (4,120) | ||||||||||||||||||||||||
| [K] | Less: Intercompany eliminations | — | 1 | — | 1 | — | — | — | — | — | |||||||||||||||||||||||||
| Depreciation and Amortization Expense from Continuing Operations | 5,705 | 5,654 | 5,609 | 5,554 | 22,522 | 4,467 | 4,429 | 4,420 | 4,478 | 17,794 | |||||||||||||||||||||||||
| [E] | Less: Video | (591) | (593) | (557) | (521) | (2,262) | (164) | (148) | (44) | — | (356) | ||||||||||||||||||||||||
| [F] | Less: Other dispositions (Held-for-sale) | (4) | (4) | (4) | (3) | (15) | — | — | — | — | — | ||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to DTV and other dispositions | (879) | (846) | (813) | (780) | (3,318) | — | — | — | — | — | ||||||||||||||||||||||||
| [G] | Add: DTV-related retained costs | 180 | 180 | 180 | 180 | 720 | 180 | 180 | 60 | — | 420 | ||||||||||||||||||||||||
| Standalone AT&T Depreciation and Amortization Expense | 4,411 | 4,391 | 4,415 | 4,430 | 17,647 | 4,483 | 4,461 | 4,436 | 4,478 | 17,858 | |||||||||||||||||||||||||
| [L] | Standalone AT&T Merger & Significant items | (34) | (32) | (26) | (31) | (123) | (86) | (29) | 9 | (7) | (113) | ||||||||||||||||||||||||
| Standalone AT&T Adjusted Depreciation and Amortization Expense | $ | 4,377 | $ | 4,359 | $ | 4,389 | $ | 4,399 | $ | 17,524 | $ | 4,397 | $ | 4,432 | $ | 4,445 | $ | 4,471 | $ | 17,745 | |||||||||||||||
| Reported Depreciation and Amortization Expense Growth Rate Y/Y | (19.6) | % | (20.9) | % | (20.1) | % | (18.7) | % | (19.8) | % | |||||||||||||||||||||||||
| Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y | (21.7) | % | (21.7) | % | (21.2) | % | (19.4) | % | (21.0) | % | |||||||||||||||||||||||||
| Standalone AT&T Depreciation and Amortization Expense Growth Rate Y/Y | 1.6 | % | 1.6 | % | 0.5 | % | 1.1 | % | 1.2 | % | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Depreciation and Amortization Expense Growth Rate Y/Y | 0.5 | % | 1.7 | % | 1.3 | % | 1.6 | % | 1.3 | % | |||||||||||||||||||||||||
3
| Operating Income | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Reported AT&T Operating Income | $ | 7,486 | $ | 3,532 | $ | 6,132 | $ | (10,745) | $ | 6,405 | $ | 7,661 | $ | 3,269 | $ | 7,109 | $ | 5,308 | $ | 23,347 | |||||||||||||||
| Less: WarnerMedia | (1,999) | (1,908) | (1,743) | (2,542) | (8,192) | (1,960) | (1,692) | (2,008) | (1,579) | (7,239) | |||||||||||||||||||||||||
| Less: Vrio | 43 | 36 | 48 | 39 | 166 | 35 | 25 | (96) | (38) | (74) | |||||||||||||||||||||||||
| Less: Merger & Significant items related to WarnerMedia and Vrio | 1,385 | 3,707 | 1,265 | 2,175 | 8,532 | 1,104 | 5,595 | 1,200 | 1,229 | 9,128 | |||||||||||||||||||||||||
| Add: Other items conveyed (retained) | (48) | (61) | (45) | (60) | (214) | (33) | (29) | (37) | (28) | (127) | |||||||||||||||||||||||||
| Less: WarnerMedia Film amortization recharacterization and receivable securitization | 42 | — | 37 | 32 | 111 | 38 | 33 | 5 | 23 | 99 | |||||||||||||||||||||||||
| Less: Intercompany eliminations | 374 | 255 | 370 | 565 | 1,564 | 349 | 372 | 99 | — | 820 | |||||||||||||||||||||||||
| Operating Income from Continuing Operations | 7,283 | 5,561 | 6,064 | (10,536) | 8,372 | 7,194 | 7,573 | 6,272 | 4,915 | 25,954 | |||||||||||||||||||||||||
| Less: Video | (796) | (619) | (570) | (189) | (2,174) | (901) | (1,216) | (374) | — | (2,491) | |||||||||||||||||||||||||
| Less: Other dispositions (Held-for-sale) | (93) | (97) | (106) | (63) | (359) | (37) | (43) | (17) | — | (97) | |||||||||||||||||||||||||
| Less: Merger & Significant items related to DTV and other dispositions | 911 | 944 | 837 | 16,309 | 19,001 | 13 | 22 | (37) | (11) | (13) | |||||||||||||||||||||||||
| Less: Intercompany eliminations | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| Less: Reclassification of allocations for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | |||||||||||||||||||||||||
| Add: Retained costs | (530) | (530) | (530) | (530) | (2,120) | (530) | (530) | (177) | — | (1,237) | |||||||||||||||||||||||||
| Standalone AT&T Operating Income | $ | 6,699 | $ | 5,173 | $ | 5,619 | $ | 4,907 | $ | 22,398 | $ | 5,724 | $ | 5,787 | $ | 5,651 | $ | 4,908 | $ | 22,070 | |||||||||||||||
| Standalone AT&T Merger & Significant items | (716) | 789 | (30) | 77 | 120 | 75 | (64) | 136 | 104 | 251 | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Operating Income | $ | 5,983 | $ | 5,962 | $ | 5,589 | $ | 4,984 | $ | 22,518 | $ | 5,799 | $ | 5,723 | $ | 5,787 | $ | 5,012 | $ | 22,321 | |||||||||||||||
| Reported Operating Income Growth Rate Y/Y | 2.3 | % | (7.4) | % | 15.9 | % | 149.4 | % | 264.5 | % | |||||||||||||||||||||||||
| Operating Income from Continuing Operations Growth Rate Y/Y | (1.2) | % | 36.2 | % | 3.4 | % | 146.6 | % | 210.0 | % | |||||||||||||||||||||||||
| Standalone AT&T Operating Income Growth Rate Y/Y | (14.6) | % | 11.9 | % | 0.6 | % | — | % | (1.5) | % | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Operating Income Growth Rate Y/Y | (3.1) | % | (4.0) | % | 3.5 | % | 0.6 | % | (0.9) | % | |||||||||||||||||||||||||
| Reported Operating Income Margin | 17.5 | % | 8.6 | % | 14.5 | % | (23.5) | % | 3.7 | % | 17.4 | % | 7.4 | % | 17.8 | % | 13.0 | % | 13.8 | % | |||||||||||||||
| Operating Income Margin from Continuing Operations | 20.6 | % | 16.1 | % | 17.1 | % | (27.9) | % | 5.9 | % | 20.1 | % | 21.2 | % | 20.0 | % | 15.8 | % | 19.4 | % | |||||||||||||||
| Standalone AT&T Operating Income Margin | 24.2 | % | 19.0 | % | 20.0 | % | 16.1 | % | 19.8 | % | 19.7 | % | 20.0 | % | 19.4 | % | 15.8 | % | 18.7 | % | |||||||||||||||
| Standalone AT&T Adjusted Operating Income Margin | 21.6 | % | 21.9 | % | 19.9 | % | 16.4 | % | 19.9 | % | 20.0 | % | 19.7 | % | 19.9 | % | 16.1 | % | 18.9 | % | |||||||||||||||
4
| Other Income (Expense) | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Interest expense | $ | (2,018) | $ | (2,041) | $ | (1,972) | $ | (1,894) | $ | (7,925) | $ | (1,870) | $ | (1,684) | $ | (1,667) | $ | (1,663) | $ | (6,884) | |||||||||||||||
| Equity in net income (loss) of affiliates | (6) | (10) | 5 | 106 | 95 | 52 | 41 | 91 | 447 | 631 | |||||||||||||||||||||||||
| Other income (expense) - net | 803 | 1,017 | (231) | (3,020) | (1,431) | 4,221 | 999 | 2,279 | 2,354 | 9,853 | |||||||||||||||||||||||||
| Reported AT&T Other Income (Expense) | (1,221) | (1,034) | (2,198) | (4,808) | (9,261) | 2,403 | (644) | 703 | 1,138 | 3,600 | |||||||||||||||||||||||||
| Less: Interest expense on debt conveyed | 54 | 52 | 49 | 43 | 198 | 46 | 45 | 40 | 31 | 162 | |||||||||||||||||||||||||
| Less: Equity method investments conveyed | (25) | 1 | (7) | 20 | (11) | (68) | (56) | 74 | 1 | (49) | |||||||||||||||||||||||||
| Less: Other income (expense) - net related to WarnerMedia and Vrio | (24) | (42) | (41) | 220 | 113 | (22) | (215) | 119 | (179) | (297) | |||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to WarnerMedia and Vrio | 24 | 158 | 37 | 2 | 221 | — | 135 | (703) | 124 | (444) | ||||||||||||||||||||||||
| Other Income (Expense) from Continuing Operations | (1,192) | (865) | (2,160) | (4,523) | (8,740) | 2,359 | (735) | 233 | 1,115 | 2,972 | |||||||||||||||||||||||||
| [I] | Less: Estimated interest expense impact of debt redemptions | — | — | — | — | — | 371 | 371 | 371 | 371 | 1,484 | ||||||||||||||||||||||||
| [H] | Add: Estimated equity in net income from DIRECTV investment | 971 | 848 | 789 | 497 | 3,105 | 746 | 955 | 293 | — | 1,994 | ||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to DTV and other dispositions | 5 | — | — | 82 | 87 | (64) | — | (2) | 67 | 1 | ||||||||||||||||||||||||
| Standalone AT&T Other Income (Expense) | $ | (216) | $ | (17) | $ | (1,371) | $ | (3,944) | $ | (5,548) | $ | 3,412 | $ | 591 | $ | 895 | $ | 1,553 | $ | 6,451 | |||||||||||||||
| [L] | Standalone AT&T Merger & Significant items | 288 | (26) | 1,225 | 3,862 | 5,349 | (2,899) | (12) | 25 | (854) | (3,740) | ||||||||||||||||||||||||
| Standalone AT&T Adjusted Other Income (Expense) | $ | 72 | $ | (43) | $ | (146) | $ | (82) | $ | (199) | $ | 513 | $ | 579 | $ | 920 | $ | 699 | $ | 2,711 | |||||||||||||||
5
| Income From Continuing Operations | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Revenues | $ | 35,357 | $ | 34,526 | $ | 35,407 | $ | 37,759 | $ | 143,049 | $ | 35,878 | $ | 35,740 | $ | 31,325 | $ | 31,095 | $ | 134,038 | |||||||||||||||
| Operations and Support Expenses | 22,369 | 23,311 | 23,734 | 42,741 | 112,155 | 24,217 | 23,738 | 20,633 | 21,702 | 90,290 | |||||||||||||||||||||||||
| Depreciation and Amortization Expense | 5,705 | 5,654 | 5,609 | 5,554 | 22,522 | 4,467 | 4,429 | 4,420 | 4,478 | 17,794 | |||||||||||||||||||||||||
| Operating Income | 7,283 | 5,561 | 6,064 | (10,536) | 8,372 | 7,194 | 7,573 | 6,272 | 4,915 | 25,954 | |||||||||||||||||||||||||
| Other Income (Expense) | (1,192) | (865) | (2,160) | (4,523) | (8,740) | 2,359 | (735) | 233 | 1,115 | 2,972 | |||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 6,091 | 4,696 | 3,904 | (15,059) | (368) | 9,553 | 6,838 | 6,505 | 6,030 | 28,926 | |||||||||||||||||||||||||
| Income tax expense | 1,280 | 1,026 | 741 | (1,900) | 1,147 | 2,028 | 1,047 | 1,335 | 906 | 5,316 | |||||||||||||||||||||||||
| Income from Continuing Operations | 4,811 | 3,670 | 3,163 | (13,159) | (1,515) | 7,525 | 5,791 | 5,170 | 5,124 | 23,610 | |||||||||||||||||||||||||
| Less: Pro Forma adjustments to Operating Income | (584) | (388) | (445) | 15,443 | 14,026 | (1,470) | (1,786) | (621) | (7) | (3,884) | |||||||||||||||||||||||||
| Less: Pro forma adjustments Other Income (Expense) | 976 | 848 | 789 | 579 | 3,192 | 1,053 | 1,326 | 662 | 438 | 3,479 | |||||||||||||||||||||||||
| [J] | Less: Estimated tax on pro forma adjustments | 92 | 113 | 64 | 1,773 | 2,042 | (62) | (101) | 41 | 17 | (106) | ||||||||||||||||||||||||
| Standalone AT&T Net Income | 5,111 | 4,017 | 3,443 | 1,090 | 13,661 | 7,170 | 5,432 | 5,170 | 5,538 | 23,311 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | (341) | 596 | 966 | 2,930 | 4,151 | (2,251) | (72) | 20 | (802) | (3,105) | |||||||||||||||||||||||||
| [M] | Add: Adjustment of estimated interest expense impact of debt redemptions | — | — | — | — | — | (297) | (297) | (297) | (297) | (1,188) | ||||||||||||||||||||||||
| Standalone AT&T Adjusted Net Income | 4,770 | 4,613 | 4,409 | 4,020 | 17,812 | 4,622 | 5,063 | 4,893 | 4,439 | 19,018 | |||||||||||||||||||||||||
| Less: Income from Continuing Operations attributable to Noncontrolling Interest | (353) | (282) | (352) | (368) | (1,355) | (392) | (304) | (355) | (347) | (1,398) | |||||||||||||||||||||||||
| Less: Preferred Stock Dividends | (32) | (52) | (54) | (55) | (193) | (50) | (56) | (50) | (51) | (207) | |||||||||||||||||||||||||
| Less: Merger & Significant items related to WarnerMedia and Vrio | — | (105) | — | — | (105) | — | (81) | — | — | (81) | |||||||||||||||||||||||||
| Adjusted Income from Continuing Operations Attributable to AT&T | $ | 4,385 | $ | 4,174 | $ | 4,003 | $ | 3,597 | $ | 16,159 | $ | 4,180 | $ | 4,622 | $ | 4,488 | $ | 4,041 | $ | 17,332 | |||||||||||||||
6
Earnings from continuing operations per share of common stock:1 | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Basic | $ | 0.62 | $ | 0.45 | $ | 0.39 | $ | (1.90) | $ | (0.44) | $ | 0.99 | $ | 0.75 | $ | 0.66 | $ | 0.66 | $ | 3.06 | |||||||||||||||
| Diluted | $ | 0.61 | $ | 0.45 | $ | 0.38 | $ | (1.89) | $ | (0.44) | $ | 0.99 | $ | 0.74 | $ | 0.66 | $ | 0.66 | $ | 3.05 | |||||||||||||||
| Comparative Basis Adjusted Diluted | $ | 0.61 | $ | 0.58 | $ | 0.56 | $ | 0.50 | $ | 2.25 | $ | 0.58 | $ | 0.64 | $ | 0.62 | $ | 0.56 | $ | 2.41 | |||||||||||||||
7
EBITDA2 | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Reported AT&T Net Income | $ | 4,963 | $ | 1,563 | $ | 3,168 | $ | (13,515) | $ | (3,821) | $ | 7,942 | $ | 1,874 | $ | 6,273 | $ | 5,390 | $ | 21,479 | |||||||||||||||
| Additions: | |||||||||||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | 1,302 | 935 | 766 | (2,038) | 965 | 2,122 | 751 | 1,539 | 1,056 | 5,468 | |||||||||||||||||||||||||
| Interest Expense | 2,018 | 2,041 | 1,972 | 1,894 | 7,925 | 1,870 | 1,684 | 1,667 | 1,663 | 6,884 | |||||||||||||||||||||||||
| Equity in Net Income (Loss) of Affiliates | 6 | 10 | (5) | (106) | (95) | (52) | (41) | (91) | (447) | (631) | |||||||||||||||||||||||||
| Other (Income) Expense - net | (803) | (1,017) | 231 | 3,020 | 1,431 | (4,221) | (999) | (2,279) | (2,354) | (9,853) | |||||||||||||||||||||||||
| Depreciation and amortization | 7,222 | 7,285 | 7,030 | 6,979 | 28,516 | 5,809 | 5,761 | 5,619 | 5,673 | 22,862 | |||||||||||||||||||||||||
| EBITDA | 14,708 | 10,817 | 13,162 | (3,766) | 34,921 | 13,470 | 9,030 | 12,728 | 10,981 | 46,209 | |||||||||||||||||||||||||
| [L] | Adjustments | (476) | 3,295 | 151 | 16,655 | 19,625 | 61 | 4,484 | 287 | 301 | 5,133 | ||||||||||||||||||||||||
| Adjusted EBITDA | 14,232 | 14,112 | 13,313 | 12,889 | 54,546 | 13,531 | 13,514 | 13,015 | 11,282 | 51,342 | |||||||||||||||||||||||||
| Less: WarnerMedia | (2,160) | (2,072) | (1,912) | (2,719) | (8,863) | (2,123) | (1,857) | (2,171) | (1,744) | (7,895) | |||||||||||||||||||||||||
| Less: Vrio | (104) | (91) | (78) | (81) | (354) | (82) | (89) | (96) | (38) | (305) | |||||||||||||||||||||||||
| Add: Other items conveyed (retained) | (45) | (58) | (42) | (57) | (202) | (30) | (26) | (34) | (25) | (115) | |||||||||||||||||||||||||
| Less: WarnerMedia Film amortization recharacterization and receivable securitization | (27) | (77) | (10) | (6) | (120) | 18 | 17 | (13) | 4 | 26 | |||||||||||||||||||||||||
| Less: Other dispositions (Held-for-sale) | (97) | (101) | (110) | (66) | (374) | (37) | (43) | (17) | — | (97) | |||||||||||||||||||||||||
| Less: Video | (1,387) | (1,212) | (1,127) | (710) | (4,436) | (1,065) | (1,364) | (418) | — | (2,847) | |||||||||||||||||||||||||
| Less: Intercompany eliminations | 374 | 256 | 370 | 565 | 1,565 | 349 | 372 | 99 | — | 820 | |||||||||||||||||||||||||
| Less: Reclassification of allocations for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | |||||||||||||||||||||||||
| Add: Retained costs | (350) | (350) | (350) | (350) | (1,400) | (350) | (350) | (117) | — | (817) | |||||||||||||||||||||||||
Standalone AT&T Adjusted EBITDA3 | $ | 10,360 | $ | 10,321 | $ | 9,978 | $ | 9,381 | $ | 40,040 | $ | 10,196 | $ | 10,155 | $ | 10,232 | $ | 9,483 | $ | 40,066 | |||||||||||||||
| Adjusted EBITDA Growth Rate Y/Y | (4.9) | % | (4.2) | % | (2.2) | % | (12.5) | % | (5.9) | % | |||||||||||||||||||||||||
| Standalone AT&T Adjusted EBITDA Growth Rate Y/Y | (1.6) | % | (1.6) | % | 2.5 | % | 1.1 | % | 0.1 | % | |||||||||||||||||||||||||
| Standalone AT&T EBITDA Margin | 33.3 | % | 34.5 | % | 31.4 | % | 28.2 | % | 31.8 | % | 30.8 | % | 30.7 | % | 32.6 | % | 27.5 | % | 30.4 | % | |||||||||||||||
| 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 | % | |||||||||||||||
1 Diluted EPS does not reflect the adoption of ASU 2020-06. | |||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||
3Standalone AT&T adjusted EBITDA and pro forma adjusted net income definitions have been updated to exclude mark-to-market adjustments on benefit-related investments in 2021. Benefit-related investment gains included in EBITDA were ~$30M, $70M, $5M and $20M in the first, second, third and fourth quarters of 2021. Total benefit-related gains (losses) in net income were ~$90M, $170M, $0M and $170M in first, second, third and fourth quarters of 2021. | |||||||||||||||||||||||||||||||||||
8
NOTES
| [A] | WarnerMedia segment results as reported in AT&T's consolidated financial statements, including Otter, Xandr and Playdemic. | ||||||||||||||||||||||||||||||||||
| [B] | Vrio business unit results within the Latin America segment as reported in AT&T's consolidated statements. AT&T retained the investment in Sky Mexico. | ||||||||||||||||||||||||||||||||||
| [C] | Adjustments for impacts from receivable securitizations related to WarnerMedia and the recharacterization of programming intangible assets amortization for released programming acquired in the Time Warner acquisition, which we continued to report with the WarnerMedia segment operating expenses. | ||||||||||||||||||||||||||||||||||
| [D] | Adjustments for AT&T's retention of the addressable TV advertising business, Invidi, and historically allocated general corporate overhead costs that do not meet the requirements for presentation in discontinued operations. | ||||||||||||||||||||||||||||||||||
| [E] | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | ||||||||||||||||||||||||||||||||||
| [F] | 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. | ||||||||||||||||||||||||||||||||||
| [G] | 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. | ||||||||||||||||||||||||||||||||||
| [H] | 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. | ||||||||||||||||||||||||||||||||||
| [I] | 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%. As of the date of the filing to which these unaudited pro forma financial statements are attached, the Company has committed to approximately $10.1 billion of term loan repayments with a weighted-average rate of 1.1% and make-whole or other redemptions totaling $9.3 billion with a weighted-average rate of 3.5%. This adjustment is required for forma financial information prepared in accordance with Article 11 of Regulation S-X. | ||||||||||||||||||||||||||||||||||
| [J] | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate of 20.0% for the year ended December 31, 2021, and 19.6% for the year ended December 31, 2020. | ||||||||||||||||||||||||||||||||||
| [K] | Under GAAP, AT&T removed transactions involving dealing between segments, including channel distribution of WarnerMedia content, and advertising arrangements. | ||||||||||||||||||||||||||||||||||
9
[L] Non-GAAP Adjustments1: | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | ||||||||||||||||||||||
| Intercompany Eliminations as reported by AT&T: | ||||||||||||||||||||||||||||||||
| DTC (HBO Max) sales to Mobility & Consumer Wireline | $ | — | $ | (61) | $ | (190) | $ | (217) | $ | (468) | $ | (235) | $ | (253) | $ | (261) | $ | (302) | $ | (1,051) | ||||||||||||
| WarnerMedia video distribution sales to DIRECTV and Vrio | (794) | (704) | (600) | (544) | (2,642) | (585) | (570) | (226) | (31) | (1,412) | ||||||||||||||||||||||
| WarnerMedia sales of DIRECTV advertising inventory | (413) | (294) | (408) | (603) | (1,718) | (388) | (410) | (111) | — | (909) | ||||||||||||||||||||||
| Other | (89) | (66) | (90) | (107) | (352) | (82) | (78) | (47) | (50) | (257) | ||||||||||||||||||||||
| Revenue Eliminations | (1,296) | (1,125) | (1,288) | (1,471) | (5,180) | (1,290) | (1,311) | (645) | (383) | (3,629) | ||||||||||||||||||||||
| DTC (HBO Max) sales to Mobility & Consumer Wireline | — | (61) | (190) | (217) | (468) | (235) | (253) | (261) | (302) | (1,051) | ||||||||||||||||||||||
| WarnerMedia video distribution sales to DIRECTV and Vrio | (794) | (704) | (600) | (544) | (2,642) | (585) | (570) | (226) | (31) | (1,412) | ||||||||||||||||||||||
| WarnerMedia sales of DIRECTV advertising inventory | (39) | (38) | (38) | (38) | (153) | (39) | (38) | (12) | — | (89) | ||||||||||||||||||||||
| Other | (89) | (66) | (90) | (107) | (352) | (82) | (78) | (47) | (50) | (257) | ||||||||||||||||||||||
| Operations and Support Eliminations | (922) | (869) | (918) | (906) | (3,615) | (941) | (939) | (546) | (383) | (2,809) | ||||||||||||||||||||||
| Operating Income & EBITDA | $ | (374) | $ | (256) | $ | (370) | $ | (565) | $ | (1,565) | $ | (349) | $ | (372) | $ | (99) | $ | — | $ | (820) | ||||||||||||
10
[L] Non-GAAP Adjustments1: | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | ||||||||||||||||||||||
| Merger costs | $ | 182 | $ | 211 | $ | 38 | $ | 37 | $ | 468 | $ | 37 | $ | — | $ | 130 | $ | 132 | $ | 299 | ||||||||||||
| Employee separation costs and benefit-related (gain) loss | 119 | 765 | 40 | 253 | 1,177 | 57 | — | — | — | 57 | ||||||||||||||||||||||
| Recast: (Gains) losses on benefit- related investments | — | — | — | — | — | (33) | (71) | (4) | (19) | (127) | ||||||||||||||||||||||
| Asset impairments and abandonments | 123 | 2,319 | 73 | 16,365 | 18,880 | — | 4,555 | 161 | 188 | 4,904 | ||||||||||||||||||||||
| Gain on spectrum transaction | (900) | — | — | — | (900) | — | — | — | — | — | ||||||||||||||||||||||
| Adjustments to Operations and Support Expenses/ EBITDA | (476) | 3,295 | 151 | 16,655 | 19,625 | 61 | 4,484 | 287 | 301 | 5,133 | ||||||||||||||||||||||
| Amortization of intangible assets | 2,056 | 2,145 | 1,921 | 1,890 | 8,012 | 1,131 | 1,069 | 1,012 | 1,021 | 4,233 | ||||||||||||||||||||||
| Impairments | — | — | — | 14 | 14 | — | — | — | — | — | ||||||||||||||||||||||
| Adjustments to Operating Income | 1,580 | 5,440 | 2,072 | 18,559 | 27,651 | 1,192 | 5,553 | 1,299 | 1,322 | 9,366 | ||||||||||||||||||||||
Other income (expense) net2 | 317 | 132 | 1,262 | 3,971 | 5,682 | (2,903) | 337 | (682) | (491) | (3,739) | ||||||||||||||||||||||
| Recast: (Gains) losses on benefit- related and other cost investments | — | — | — | (17) | (17) | (60) | (214) | 2 | (154) | (426) | ||||||||||||||||||||||
| Tax impact of adjustments and discrete items | (394) | (749) | (648) | (3,227) | (5,018) | 352 | (1,018) | (195) | (224) | (1,085) | ||||||||||||||||||||||
| Noncontrolling interest | — | (105) | — | — | (105) | — | (81) | — | — | (81) | ||||||||||||||||||||||
| Adjustments to Net Income | $ | 1,503 | $ | 4,718 | $ | 2,686 | $ | 19,286 | $ | 28,193 | $ | (1,419) | $ | 4,577 | $ | 424 | $ | 453 | $ | 4,035 | ||||||||||||
1 As reported in AT&T’s Form 8-K filed April 22, 2021, July 23, 2021, October 21, 2021 and January 26, 2022, recast for consistency to include gains on benefit-related and other cost investments as noted above. Adjusting items include items considered non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, severance and other material gains and losses.
2 Includes adjustments to equity in net income of affiliates, including adjustment for DIRECTV intangible amortization (proportionate share).
| [M] | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs born by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | ||||
11
| Comparative Basis Financial Information - Historical, Continuing Operations and Standalone AT&T by Segment | |||||||||||||||||||||||||||||||||||
| Supplemental Unaudited Quarterly Comparative Financial Information | |||||||||||||||||||||||||||||||||||
| Dollars in millions | |||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||
| Operating Revenues | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 17,402 | $ | 17,149 | $ | 17,894 | $ | 20,119 | $ | 72,564 | $ | 19,034 | $ | 18,936 | $ | 19,138 | $ | 21,146 | $ | 78,254 | |||||||||||||||
| Business Wireline | 6,266 | 6,305 | 6,261 | 6,251 | 25,083 | 6,046 | 6,052 | 5,938 | 5,901 | 23,937 | |||||||||||||||||||||||||
| Consumer Wireline | 3,111 | 3,051 | 3,040 | 3,116 | 12,318 | 3,098 | 3,140 | 3,142 | 3,159 | 12,539 | |||||||||||||||||||||||||
| WarnerMedia | 7,765 | 6,728 | 7,395 | 8,554 | 30,442 | 8,526 | 8,791 | 8,442 | 9,873 | 35,632 | |||||||||||||||||||||||||
| Mexico | 703 | 480 | 643 | 736 | 2,562 | 631 | 688 | 724 | 704 | 2,747 | |||||||||||||||||||||||||
| Vrio | 887 | 752 | 753 | 762 | 3,154 | 743 | 749 | 756 | 359 | 2,607 | |||||||||||||||||||||||||
| Segment Total | 36,134 | 34,465 | 35,986 | 39,538 | 146,123 | 38,078 | 38,356 | 38,140 | 41,142 | 155,716 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| Securitization | 14 | 14 | 13 | 12 | 53 | 13 | 15 | 16 | 17 | 61 | |||||||||||||||||||||||||
| Securitization - Revolver (WarnerMedia) | 14 | 23 | 21 | 22 | 80 | 31 | 35 | 41 | 29 | 136 | |||||||||||||||||||||||||
| Commercial agreements with DIRECTV | — | — | — | — | — | — | — | 20 | 29 | 49 | |||||||||||||||||||||||||
| Parent | (43) | (9) | (4) | (6) | (62) | (12) | — | — | (6) | (18) | |||||||||||||||||||||||||
| Value portfolio | 180 | 192 | 178 | 172 | 722 | 163 | 153 | 137 | 130 | 583 | |||||||||||||||||||||||||
| Total Corporate | 165 | 220 | 208 | 200 | 793 | 195 | 203 | 214 | 199 | 811 | |||||||||||||||||||||||||
| Video | 7,407 | 7,021 | 7,014 | 7,168 | 28,610 | 6,725 | 6,639 | 2,149 | — | 15,513 | |||||||||||||||||||||||||
Held-for-sale2 | 369 | 369 | 420 | 256 | 1,414 | 231 | 158 | 64 | — | 453 | |||||||||||||||||||||||||
| Eliminations and consolidations | (1,296) | (1,125) | (1,288) | (1,471) | (5,180) | (1,290) | (1,311) | (645) | (383) | (3,629) | |||||||||||||||||||||||||
| Historical Operating Revenues | 42,779 | 40,950 | 42,340 | 45,691 | 171,760 | 43,939 | 44,045 | 39,922 | 40,958 | 168,864 | |||||||||||||||||||||||||
| Adjustments for Discontinued Operations | |||||||||||||||||||||||||||||||||||
| [A] | Less: WarnerMedia | (7,765) | (6,728) | (7,395) | (8,554) | (30,442) | (8,526) | (8,791) | (8,442) | (9,873) | (35,632) | ||||||||||||||||||||||||
| [B] | Less: Vrio | (887) | (752) | (753) | (762) | (3,154) | (743) | (749) | (756) | (359) | (2,607) | ||||||||||||||||||||||||
| [C] | Less: Securitization - Revolver (WarnerMedia) | (14) | (23) | (21) | (22) | (80) | (31) | (35) | (41) | (29) | (136) | ||||||||||||||||||||||||
| [D] | Add: Other items (conveyed) retained | 12 | 9 | 13 | 18 | 52 | 11 | 16 | 14 | 15 | 56 | ||||||||||||||||||||||||
| [L] | Eliminations and consolidations | 1,232 | 1,070 | 1,223 | 1,388 | 4,913 | 1,228 | 1,254 | 628 | 383 | 3,493 | ||||||||||||||||||||||||
| Operating Revenues from Continuing Operations | 35,357 | 34,526 | 35,407 | 37,759 | 143,049 | 35,878 | 35,740 | 31,325 | 31,095 | 134,038 | |||||||||||||||||||||||||
| Adjustments for Other Separated Businesses | |||||||||||||||||||||||||||||||||||
| [E] | Less: Video | (7,407) | (7,021) | (7,014) | (7,168) | (28,610) | (6,725) | (6,639) | (2,149) | — | (15,513) | ||||||||||||||||||||||||
| [F] | Less: Held-for-sale2 | (369) | (369) | (420) | (256) | (1,414) | (231) | (158) | (64) | — | (453) | ||||||||||||||||||||||||
| [L] | Less: Intercompany eliminations | 64 | 55 | 65 | 83 | 267 | 62 | 57 | 17 | — | 136 | ||||||||||||||||||||||||
| Standalone AT&T Operating Revenues | $ | 27,645 | $ | 27,191 | $ | 28,038 | $ | 30,418 | $ | 113,292 | $ | 28,984 | $ | 29,000 | $ | 29,129 | $ | 31,095 | $ | 118,208 | |||||||||||||||
1
| Operations and Support Expenses | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 9,463 | $ | 9,218 | $ | 10,075 | $ | 12,921 | $ | 41,677 | $ | 10,976 | $ | 10,906 | $ | 11,116 | $ | 13,764 | $ | 46,762 | |||||||||||||||
| Business Wireline | 3,823 | 3,653 | 3,699 | 3,893 | 15,068 | 3,688 | 3,690 | 3,632 | 3,708 | 14,718 | |||||||||||||||||||||||||
| Consumer Wireline | 1,860 | 1,906 | 2,082 | 2,094 | 7,942 | 2,029 | 2,063 | 2,188 | 2,168 | 8,448 | |||||||||||||||||||||||||
| WarnerMedia | 5,605 | 4,656 | 5,483 | 5,835 | 21,579 | 6,403 | 6,934 | 6,271 | 8,129 | 27,737 | |||||||||||||||||||||||||
| Mexico | 714 | 538 | 662 | 722 | 2,636 | 620 | 667 | 697 | 668 | 2,652 | |||||||||||||||||||||||||
| Vrio | 783 | 661 | 675 | 681 | 2,800 | 661 | 660 | 660 | 321 | 2,302 | |||||||||||||||||||||||||
| Segment Total | 22,248 | 20,632 | 22,676 | 26,146 | 91,702 | 24,377 | 24,920 | 24,564 | 28,758 | 102,619 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | 69 | 174 | 243 | |||||||||||||||||||||||||
| Parent | 283 | 435 | 455 | 306 | 1,479 | 334 | 376 | 316 | 348 | 1,374 | |||||||||||||||||||||||||
| Securitization fees | 42 | 20 | 3 | 7 | 72 | 40 | 12 | 1 | 36 | 89 | |||||||||||||||||||||||||
| Value portfolio | 83 | 72 | 68 | 60 | 283 | 41 | 67 | 42 | 38 | 188 | |||||||||||||||||||||||||
| Total Corporate | 408 | 527 | 526 | 373 | 1,834 | 415 | 455 | 428 | 596 | 1,894 | |||||||||||||||||||||||||
| Video | 6,020 | 5,809 | 5,887 | 6,458 | 24,174 | 5,660 | 5,275 | 1,731 | — | 12,666 | |||||||||||||||||||||||||
Held-for-sale2 | 272 | 268 | 310 | 190 | 1,040 | 194 | 115 | 47 | — | 356 | |||||||||||||||||||||||||
Film amortization recharacterization and receivable securitization - WarnerMedia1 | (13) | (54) | 11 | 16 | (40) | 49 | 52 | 28 | 33 | 162 | |||||||||||||||||||||||||
| Reclassification of allocation changes for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | |||||||||||||||||||||||||
| Reclassification of prior service credits | 610 | 611 | 611 | 610 | 2,442 | 669 | 672 | 670 | 669 | 2,680 | |||||||||||||||||||||||||
| Merger & Significant Items | (476) | 3,295 | 151 | 16,654 | 19,624 | 61 | 4,484 | 288 | 300 | 5,133 | |||||||||||||||||||||||||
| Eliminations and consolidations | (922) | (869) | (918) | (906) | (3,615) | (941) | (939) | (546) | (383) | (2,809) | |||||||||||||||||||||||||
| Historical Operations and Support Expenses | 28,071 | 30,133 | 29,178 | 49,457 | 136,839 | 30,469 | 35,015 | 27,194 | 29,977 | 122,655 | |||||||||||||||||||||||||
| Adjustments for Discontinued Operations | |||||||||||||||||||||||||||||||||||
| [A] | Less: WarnerMedia | (5,605) | (4,656) | (5,483) | (5,835) | (21,579) | (6,403) | (6,934) | (6,271) | (8,129) | (27,737) | ||||||||||||||||||||||||
| [B] | Less: Vrio | (783) | (661) | (675) | (681) | (2,800) | (661) | (660) | (660) | (321) | (2,302) | ||||||||||||||||||||||||
| [C] | Add: Other items (conveyed) retained | 57 | 67 | 55 | 75 | 254 | 41 | 42 | 48 | 40 | 171 | ||||||||||||||||||||||||
| Less: WarnerMedia Film amortization recharacterization and receivable securitization | 13 | 54 | (11) | (16) | 40 | (49) | (52) | (28) | (33) | (162) | |||||||||||||||||||||||||
| [D] | Less: Merger & Significant items related to WarnerMedia and Vrio | (242) | (2,440) | (183) | (1,082) | (3,947) | (59) | (4,555) | (179) | (215) | (5,008) | ||||||||||||||||||||||||
| [L] | Less: Intercompany eliminations | 858 | 814 | 853 | 823 | 3,348 | 879 | 882 | 529 | 383 | 2,673 | ||||||||||||||||||||||||
| Operations and Support from Continuing Operations | 22,369 | 23,311 | 23,734 | 42,741 | 112,155 | 24,217 | 23,738 | 20,633 | 21,702 | 90,290 | |||||||||||||||||||||||||
| Adjustments for Other Separated Businesses | |||||||||||||||||||||||||||||||||||
| [E] | Less: Video | (6,020) | (5,809) | (5,887) | (6,458) | (24,174) | (5,660) | (5,275) | (1,731) | — | (12,666) | ||||||||||||||||||||||||
| [F] | Less: Held-for-sale2 | (272) | (268) | (310) | (190) | (1,040) | (194) | (115) | (47) | — | (356) | ||||||||||||||||||||||||
| Less: Merger & Significant items related to DTV and other dispositions | (32) | (98) | (24) | (15,529) | (15,683) | (13) | (22) | 37 | 11 | 13 | |||||||||||||||||||||||||
| Less: Intercompany eliminations | 64 | 55 | 65 | 83 | 267 | 62 | 57 | 17 | — | 136 | |||||||||||||||||||||||||
| [M] | Less: Reclassification of allocations for separated businesses | 76 | 86 | 76 | 84 | 322 | 15 | 19 | 16 | (4) | 46 | ||||||||||||||||||||||||
| [L] | Add: Estimated comparative adjustment for DTV retained costs | 350 | 350 | 350 | 350 | 1,400 | 350 | 350 | 117 | — | 817 | ||||||||||||||||||||||||
| Standalone AT&T Operations and Support Expenses | 16,535 | 17,627 | 18,004 | 21,081 | 73,247 | 18,777 | 18,752 | 19,042 | 21,709 | 78,280 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | 750 | (757) | 56 | (44) | 5 | 11 | 93 | (145) | (97) | (138) | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Operations and Support Expenses | $ | 17,285 | $ | 16,870 | $ | 18,060 | $ | 21,037 | $ | 73,252 | $ | 18,788 | $ | 18,845 | $ | 18,897 | $ | 21,612 | $ | 78,142 | |||||||||||||||
1 Includes the recharacterization of programming intangible assets amortization for released programming acquired in the Time Warner acquisition, which we continued to report with WarnerMedia segment operating expenses.
2
| Depreciation and Amortization Expense | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 2,045 | $ | 2,012 | $ | 2,021 | $ | 2,008 | $ | 8,086 | $ | 2,014 | $ | 2,023 | $ | 2,035 | $ | 2,050 | $ | 8,122 | |||||||||||||||
| Business Wireline | 1,286 | 1,301 | 1,313 | 1,316 | 5,216 | 1,278 | 1,293 | 1,304 | 1,317 | 5,192 | |||||||||||||||||||||||||
| Consumer Wireline | 712 | 730 | 734 | 738 | 2,914 | 762 | 769 | 775 | 789 | 3,095 | |||||||||||||||||||||||||
| WarnerMedia | 161 | 164 | 169 | 177 | 671 | 163 | 165 | 163 | 165 | 656 | |||||||||||||||||||||||||
| Mexico | 134 | 115 | 124 | 140 | 513 | 145 | 150 | 157 | 153 | 605 | |||||||||||||||||||||||||
| Vrio | 147 | 127 | 126 | 120 | 520 | 117 | 114 | — | — | 231 | |||||||||||||||||||||||||
| Segment Total | 4,485 | 4,449 | 4,487 | 4,499 | 17,920 | 4,479 | 4,514 | 4,434 | 4,474 | 17,901 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | 92 | 144 | 236 | |||||||||||||||||||||||||
| Value Portfolio | 17 | 18 | 14 | 15 | 64 | 15 | 14 | 19 | 15 | 63 | |||||||||||||||||||||||||
| Total Corporate | 17 | 18 | 14 | 15 | 64 | 15 | 14 | 111 | 159 | 299 | |||||||||||||||||||||||||
| Video | 591 | 593 | 557 | 521 | 2,262 | 164 | 148 | 44 | — | 356 | |||||||||||||||||||||||||
Held-for-sale2 | 4 | 4 | 4 | 3 | 15 | — | — | — | — | — | |||||||||||||||||||||||||
Film amortization recharacterization and receivable securitization - WarnerMedia1 | 69 | 77 | 47 | 38 | 231 | 20 | 16 | 18 | 19 | 73 | |||||||||||||||||||||||||
| Merger & Significant Items | 2,056 | 2,145 | 1,921 | 1,904 | 8,026 | 1,131 | 1,069 | 1,012 | 1,021 | 4,233 | |||||||||||||||||||||||||
| Eliminations and consolidations | — | (1) | — | (1) | (2) | — | — | — | — | — | |||||||||||||||||||||||||
| Historical Depreciation and Amortization Expense | 7,222 | 7,285 | 7,030 | 6,979 | 28,516 | 5,809 | 5,761 | 5,619 | 5,673 | 22,862 | |||||||||||||||||||||||||
| Adjustments for Discontinued Operations | |||||||||||||||||||||||||||||||||||
| [A] | Less: WarnerMedia | (161) | (164) | (169) | (177) | (671) | (163) | (165) | (163) | (165) | (656) | ||||||||||||||||||||||||
| [B] | Less: Vrio | (147) | (127) | (126) | (120) | (520) | (117) | (114) | — | — | (231) | ||||||||||||||||||||||||
| [D] | Add: Other items (conveyed) retained | 3 | 3 | 3 | 3 | 12 | 3 | 3 | 3 | 3 | 12 | ||||||||||||||||||||||||
| [C] | Less: WarnerMedia Film amortization recharacterization and receivable securitization | (69) | (77) | (47) | (38) | (231) | (20) | (16) | (18) | (19) | (73) | ||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to WarnerMedia and Vrio | (1,143) | (1,267) | (1,082) | (1,093) | (4,585) | (1,045) | (1,040) | (1,021) | (1,014) | (4,120) | ||||||||||||||||||||||||
| [K] | Less: Intercompany eliminations | — | 1 | — | — | 1 | — | — | — | — | — | ||||||||||||||||||||||||
| Depreciation and Amortization from Continuing Operations | 5,705 | 5,654 | 5,609 | 5,554 | 22,522 | 4,467 | 4,429 | 4,420 | 4,478 | 17,794 | |||||||||||||||||||||||||
| Adjustments for Other Separated Businesses | |||||||||||||||||||||||||||||||||||
| [E] | Less: Video | (591) | (593) | (557) | (521) | (2,262) | (164) | (148) | (44) | — | (356) | ||||||||||||||||||||||||
| [F] | Less: Held-for-sale2 | (4) | (4) | (4) | (3) | (15) | — | — | — | — | — | ||||||||||||||||||||||||
| [L] | Less: Merger & Significant items related to DTV and other dispositions | (879) | (846) | (813) | (780) | (3,318) | — | — | — | — | — | ||||||||||||||||||||||||
| [G] | Add: Estimated comparative adjustment for DTV retained costs | 180 | 180 | 180 | 180 | 720 | 180 | 180 | 60 | — | 420 | ||||||||||||||||||||||||
| Standalone AT&T Depreciation and Amortization Expense | 4,411 | 4,391 | 4,415 | 4,430 | 17,647 | 4,483 | 4,461 | 4,436 | 4,478 | 17,858 | |||||||||||||||||||||||||
| [L] | Standalone AT&T Merger & Significant items | (34) | (32) | (26) | (31) | (123) | (86) | (29) | 9 | (7) | (113) | ||||||||||||||||||||||||
| Standalone AT&T Adjusted Depreciation and Amortization Expense | $ | 4,377 | $ | 4,359 | $ | 4,389 | $ | 4,399 | $ | 17,524 | $ | 4,397 | $ | 4,432 | $ | 4,445 | $ | 4,471 | $ | 17,745 | |||||||||||||||
1 Includes the recharacterization of programming intangible assets amortization for released programming acquired in the Time Warner acquisition, which we continued to report with WarnerMedia segment operating expenses.
3
| Operating Income | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 5,894 | $ | 5,919 | $ | 5,798 | $ | 5,190 | $ | 22,801 | $ | 6,044 | $ | 6,007 | $ | 5,987 | $ | 5,332 | $ | 23,370 | |||||||||||||||
| Business Wireline | 1,157 | 1,351 | 1,249 | 1,042 | 4,799 | 1,080 | 1,069 | 1,002 | 876 | 4,027 | |||||||||||||||||||||||||
| Consumer Wireline | 539 | 415 | 224 | 284 | 1,462 | 307 | 308 | 179 | 202 | 996 | |||||||||||||||||||||||||
| WarnerMedia | 1,999 | 1,908 | 1,743 | 2,542 | 8,192 | 1,960 | 1,692 | 2,008 | 1,579 | 7,239 | |||||||||||||||||||||||||
| Mexico | (145) | (173) | (143) | (126) | (587) | (134) | (129) | (130) | (117) | (510) | |||||||||||||||||||||||||
| Vrio | (43) | (36) | (48) | (39) | (166) | (35) | (25) | 96 | 38 | 74 | |||||||||||||||||||||||||
| Segment Total | 9,401 | 9,384 | 8,823 | 8,893 | 36,501 | 9,222 | 8,922 | 9,142 | 7,910 | 35,196 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | (141) | (289) | (430) | |||||||||||||||||||||||||
| Parent administration support | (326) | (444) | (459) | (312) | (1,541) | (346) | (376) | (316) | (354) | (1,392) | |||||||||||||||||||||||||
| Securitization fees | (28) | (6) | 10 | 5 | (19) | (27) | 3 | 15 | (19) | (28) | |||||||||||||||||||||||||
| Value portfolio | 80 | 102 | 96 | 97 | 375 | 107 | 72 | 76 | 77 | 332 | |||||||||||||||||||||||||
| Total Corporate | (274) | (348) | (353) | (210) | (1,185) | (266) | (301) | (366) | (585) | (1,518) | |||||||||||||||||||||||||
| Video | 796 | 619 | 570 | 189 | 2,174 | 901 | 1,216 | 374 | — | 2,491 | |||||||||||||||||||||||||
| Held-for-sale | 93 | 97 | 106 | 63 | 359 | 37 | 43 | 17 | — | 97 | |||||||||||||||||||||||||
Film amortization recharacterization and receivable securitization - WarnerMedia1 | (42) | — | (37) | (32) | (111) | (38) | (33) | (5) | (23) | (99) | |||||||||||||||||||||||||
| Reclassification of allocation changes for separated businesses | 76 | 86 | 76 | 84 | 322 | 15 | 19 | 16 | (4) | 46 | |||||||||||||||||||||||||
| Reclassification of prior service credits | (610) | (611) | (611) | (610) | (2,442) | (669) | (672) | (670) | (669) | (2,680) | |||||||||||||||||||||||||
| Merger & Significant Items | (1,580) | (5,440) | (2,072) | (18,558) | (27,650) | (1,192) | (5,553) | (1,300) | (1,321) | (9,366) | |||||||||||||||||||||||||
| Eliminations and consolidations | (374) | (255) | (370) | (564) | (1,563) | (349) | (372) | (99) | — | (820) | |||||||||||||||||||||||||
| Historical Operating Income | 7,486 | 3,532 | 6,132 | (10,745) | 6,405 | 7,661 | 3,269 | 7,109 | 5,308 | 23,347 | |||||||||||||||||||||||||
| Adjustments for Discontinued Operations | |||||||||||||||||||||||||||||||||||
| Less: WarnerMedia | (1,999) | (1,908) | (1,743) | (2,542) | (8,192) | (1,960) | (1,692) | (2,008) | (1,579) | (7,239) | |||||||||||||||||||||||||
| Less: Vrio | 43 | 36 | 48 | 39 | 166 | 35 | 25 | (96) | (38) | (74) | |||||||||||||||||||||||||
| Add: Other items conveyed (retained) | (48) | (61) | (45) | (60) | (214) | (33) | (29) | (37) | (28) | (127) | |||||||||||||||||||||||||
| Less: WarnerMedia Film amortization recharacterization and receivable securitization | 42 | — | 37 | 32 | 111 | 38 | 33 | 5 | 23 | 99 | |||||||||||||||||||||||||
| Less: Merger & Significant items related to WarnerMedia and Vrio | 1,385 | 3,707 | 1,265 | 2,175 | 8,532 | 1,104 | 5,595 | 1,200 | 1,229 | 9,128 | |||||||||||||||||||||||||
| Less: Intercompany eliminations | 374 | 255 | 370 | 565 | 1,564 | 349 | 372 | 99 | — | 820 | |||||||||||||||||||||||||
| Operating Income from Continuing Operations | 7,283 | 5,561 | 6,064 | (10,536) | 8,372 | 7,194 | 7,573 | 6,272 | 4,915 | 25,954 | |||||||||||||||||||||||||
| Adjustments for Other Separated Businesses | |||||||||||||||||||||||||||||||||||
| Less: Video | (796) | (619) | (570) | (189) | (2,174) | (901) | (1,216) | (374) | — | (2,491) | |||||||||||||||||||||||||
| Less: Held-for-sale | (93) | (97) | (106) | (63) | (359) | (37) | (43) | (17) | — | (97) | |||||||||||||||||||||||||
| Less: Merger & Significant items related to DTV and other dispositions | 911 | 944 | 837 | 16,309 | 19,001 | 13 | 22 | (37) | (11) | (13) | |||||||||||||||||||||||||
| Less: Intercompany eliminations | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| Less: Reclassification of allocations for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | |||||||||||||||||||||||||
| Add: Estimated comparative adjustment for DTV retained costs | (530) | (530) | (530) | (530) | (2,120) | (530) | (530) | (177) | — | (1,237) | |||||||||||||||||||||||||
| Standalone AT&T Operating Income | 6,699 | 5,173 | 5,619 | 4,907 | 22,398 | 5,724 | 5,787 | 5,651 | 4,908 | 22,070 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | (716) | 789 | (30) | 77 | 120 | 75 | (64) | 136 | 104 | 251 | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Operating Income | $ | 5,983 | $ | 5,962 | $ | 5,589 | $ | 4,984 | $ | 22,518 | $ | 5,799 | $ | 5,723 | $ | 5,787 | $ | 5,012 | $ | 22,321 | |||||||||||||||
4
EBITDA1 | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 7,939 | $ | 7,931 | $ | 7,819 | $ | 7,198 | $ | 30,887 | $ | 8,058 | $ | 8,030 | $ | 8,022 | $ | 7,382 | $ | 31,492 | |||||||||||||||
| Business Wireline | 2,443 | 2,652 | 2,562 | 2,358 | 10,015 | 2,358 | 2,362 | 2,306 | 2,193 | 9,219 | |||||||||||||||||||||||||
| Consumer Wireline | 1,251 | 1,145 | 958 | 1,022 | 4,376 | 1,069 | 1,077 | 954 | 991 | 4,091 | |||||||||||||||||||||||||
| WarnerMedia | 2,160 | 2,072 | 1,912 | 2,719 | 8,863 | 2,123 | 1,857 | 2,171 | 1,744 | 7,895 | |||||||||||||||||||||||||
| Mexico | (11) | (58) | (19) | 14 | (74) | 11 | 21 | 27 | 36 | 95 | |||||||||||||||||||||||||
| Vrio | 104 | 91 | 78 | 81 | 354 | 82 | 89 | 96 | 38 | 305 | |||||||||||||||||||||||||
| Segment Total | 13,886 | 13,833 | 13,310 | 13,392 | 54,421 | 13,701 | 13,436 | 13,576 | 12,384 | 53,097 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | (49) | (145) | (194) | |||||||||||||||||||||||||
| Parent administration support | (326) | (444) | (459) | (312) | (1,541) | (346) | (376) | (316) | (354) | (1,392) | |||||||||||||||||||||||||
| Securitization fees | (28) | (6) | 10 | 5 | (19) | (27) | 3 | 15 | (19) | (28) | |||||||||||||||||||||||||
| Value portfolio | 97 | 120 | 110 | 112 | 439 | 122 | 86 | 95 | 92 | 395 | |||||||||||||||||||||||||
| Total Corporate | (257) | (330) | (339) | (195) | (1,121) | (251) | (287) | (255) | (426) | (1,219) | |||||||||||||||||||||||||
| Video | 1,387 | 1,212 | 1,127 | 710 | 4,436 | 1,065 | 1,364 | 418 | — | 2,847 | |||||||||||||||||||||||||
Held-for-sale2 | 97 | 101 | 110 | 66 | 374 | 37 | 43 | 17 | — | 97 | |||||||||||||||||||||||||
Film amortization recharacterization and receivable securitization - WarnerMedia1 | 27 | 77 | 10 | 6 | 120 | (18) | (17) | 13 | (4) | (26) | |||||||||||||||||||||||||
| Reclassification of allocation changes for separated businesses | 76 | 86 | 76 | 84 | 322 | 15 | 19 | 16 | (4) | 46 | |||||||||||||||||||||||||
| Reclassification of prior service credits | (610) | (611) | (611) | (610) | (2,442) | (669) | (672) | (670) | (669) | (2,680) | |||||||||||||||||||||||||
| Merger & Significant Items | 476 | (3,295) | (151) | (16,654) | (19,624) | (61) | (4,484) | (288) | (300) | (5,133) | |||||||||||||||||||||||||
| Eliminations and consolidations | (374) | (256) | (370) | (565) | (1,565) | (349) | (372) | (99) | — | (820) | |||||||||||||||||||||||||
| Historical EBITDA | 14,708 | 10,817 | 13,162 | (3,766) | 34,921 | 13,470 | 9,030 | 12,728 | 10,981 | 46,209 | |||||||||||||||||||||||||
| Adjustments for Discontinued Operations | |||||||||||||||||||||||||||||||||||
| Less: WarnerMedia | (2,160) | (2,072) | (1,912) | (2,719) | (8,863) | (2,123) | (1,857) | (2,171) | (1,744) | (7,895) | |||||||||||||||||||||||||
| Less: Vrio | (104) | (91) | (78) | (81) | (354) | (82) | (89) | (96) | (38) | (305) | |||||||||||||||||||||||||
| Add: Other items conveyed (retained) | (45) | (58) | (42) | (57) | (202) | (30) | (26) | (34) | (25) | (115) | |||||||||||||||||||||||||
| Less: WarnerMedia Film amortization recharacterization and receivable securitization | (27) | (77) | (10) | (6) | (120) | 18 | 17 | (13) | 4 | 26 | |||||||||||||||||||||||||
| Less: Merger & Significant items related to WarnerMedia and Vrio | 242 | 2,440 | 183 | 1,082 | 3,947 | 59 | 4,555 | 179 | 215 | 5,008 | |||||||||||||||||||||||||
| Less: Intercompany eliminations | 374 | 256 | 370 | 565 | 1,565 | 349 | 372 | 99 | — | 820 | |||||||||||||||||||||||||
| EBITDA from Continuing Operations | 12,988 | 11,215 | 11,673 | (4,982) | 30,894 | 11,661 | 12,002 | 10,692 | 9,393 | 43,748 | |||||||||||||||||||||||||
| Adjustments for Other Separated Businesses | |||||||||||||||||||||||||||||||||||
| Less: Video | (1,387) | (1,212) | (1,127) | (710) | (4,436) | (1,065) | (1,364) | (418) | — | (2,847) | |||||||||||||||||||||||||
Less: Held-for-sale2 | (97) | (101) | (110) | (66) | (374) | (37) | (43) | (17) | — | (97) | |||||||||||||||||||||||||
| Less: Merger & Significant items related to DTV and other dispositions | 32 | 98 | 24 | 15,529 | 15,683 | 13 | 22 | (37) | (11) | (13) | |||||||||||||||||||||||||
| Less: Intercompany eliminations | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| [M] | Less: Reclassification of allocations for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | ||||||||||||||||||||||||
| Add: Estimated comparative adjustment for DTV retained costs | (350) | (350) | (350) | (350) | (1,400) | (350) | (350) | (117) | — | (817) | |||||||||||||||||||||||||
| Standalone AT&T EBITDA | 11,110 | 9,564 | 10,034 | 9,337 | 40,045 | 10,207 | 10,248 | 10,087 | 9,386 | 39,928 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | (750) | 757 | (56) | 44 | (5) | (11) | (93) | 145 | 97 | 138 | |||||||||||||||||||||||||
| Standalone AT&T Adjusted EBITDA | $ | 10,360 | $ | 10,321 | $ | 9,978 | $ | 9,381 | $ | 40,040 | $ | 10,196 | $ | 10,155 | $ | 10,232 | $ | 9,483 | $ | 40,066 | |||||||||||||||
1 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.
2 Crunchyroll anime business (sold third-quarter 2021), Government Solutions (sold first-quarter 2021) and wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands (sold fourth-quarter 2020).
5
| Comparative Basis Financial Information - Standalone AT&T by Segment | |||||||||||||||||||||||||||||||||||
| Supplemental Unaudited Quarterly Comparative Financial Information | |||||||||||||||||||||||||||||||||||
| Dollars in millions | |||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||
| Operating Revenues | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 17,402 | $ | 17,149 | $ | 17,894 | $ | 20,119 | $ | 72,564 | $ | 19,034 | $ | 18,936 | $ | 19,138 | $ | 21,146 | $ | 78,254 | |||||||||||||||
| Business Wireline | 6,266 | 6,305 | 6,261 | 6,251 | 25,083 | 6,046 | 6,052 | 5,938 | 5,901 | 23,937 | |||||||||||||||||||||||||
| Consumer Wireline | 3,111 | 3,051 | 3,040 | 3,116 | 12,318 | 3,098 | 3,140 | 3,142 | 3,159 | 12,539 | |||||||||||||||||||||||||
| Mexico | 703 | 480 | 643 | 736 | 2,562 | 631 | 688 | 724 | 704 | 2,747 | |||||||||||||||||||||||||
| Segment Total | 27,482 | 26,985 | 27,838 | 30,222 | 112,527 | 28,809 | 28,816 | 28,942 | 30,910 | 117,477 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| Securitization - Installment | 14 | 14 | 13 | 12 | 53 | 13 | 15 | 16 | 17 | 61 | |||||||||||||||||||||||||
| Commercial agreements with DIRECTV | — | — | — | — | — | — | — | 20 | 29 | 49 | |||||||||||||||||||||||||
| Parent retained | (43) | (9) | (4) | (6) | (62) | (12) | — | — | (6) | (18) | |||||||||||||||||||||||||
| Value portfolio (including Invidi) | 192 | 201 | 191 | 190 | 774 | 174 | 169 | 151 | 145 | 639 | |||||||||||||||||||||||||
| Total Corporate | 163 | 206 | 200 | 196 | 765 | 175 | 184 | 187 | 185 | 731 | |||||||||||||||||||||||||
| Standalone AT&T Operating Revenues | $ | 27,645 | $ | 27,191 | $ | 28,038 | $ | 30,418 | $ | 113,292 | $ | 28,984 | $ | 29,000 | $ | 29,129 | $ | 31,095 | $ | 118,208 | |||||||||||||||
| Operations and Support Expenses | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 9,463 | $ | 9,218 | $ | 10,075 | $ | 12,921 | $ | 41,677 | $ | 10,976 | $ | 10,906 | $ | 11,116 | $ | 13,764 | $ | 46,762 | |||||||||||||||
| Business Wireline | 3,823 | 3,653 | 3,699 | 3,893 | 15,068 | 3,688 | 3,690 | 3,632 | 3,708 | 14,718 | |||||||||||||||||||||||||
| Consumer Wireline | 1,860 | 1,906 | 2,082 | 2,094 | 7,942 | 2,029 | 2,063 | 2,188 | 2,168 | 8,448 | |||||||||||||||||||||||||
| Mexico | 714 | 538 | 662 | 722 | 2,636 | 620 | 667 | 697 | 668 | 2,652 | |||||||||||||||||||||||||
| Segment Total | 15,860 | 15,315 | 16,518 | 19,630 | 67,323 | 17,313 | 17,326 | 17,633 | 20,308 | 72,580 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | 69 | 174 | 243 | |||||||||||||||||||||||||
| Estimated comparative adjustment for DTV retained cost | 350 | 350 | 350 | 350 | 1,400 | 350 | 350 | 117 | — | 817 | |||||||||||||||||||||||||
| Parent administration support | 327 | 489 | 497 | 368 | 1,681 | 364 | 406 | 352 | 376 | 1,498 | |||||||||||||||||||||||||
| Securitization fees | 42 | 20 | 3 | 7 | 72 | 40 | 12 | 1 | 36 | 89 | |||||||||||||||||||||||||
| Value portfolio (including Invidi) | 96 | 85 | 81 | 72 | 334 | 52 | 79 | 54 | 50 | 235 | |||||||||||||||||||||||||
| Total Corporate | 815 | 944 | 931 | 797 | 3,487 | 806 | 847 | 593 | 636 | 2,882 | |||||||||||||||||||||||||
| Reclassification of prior service credits | 610 | 611 | 611 | 610 | 2,442 | 669 | 672 | 670 | 669 | 2,680 | |||||||||||||||||||||||||
| Merger & Significant Items | (750) | 757 | (56) | 44 | (5) | (11) | (93) | 146 | 96 | 138 | |||||||||||||||||||||||||
| Standalone AT&T Operations and Support Expenses | 16,535 | 17,627 | 18,004 | 21,081 | 73,247 | 18,777 | 18,752 | 19,042 | 21,709 | 78,280 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | 750 | (757) | 56 | (44) | 5 | 11 | 93 | (145) | (97) | (138) | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Operations and Support Expenses | $ | 17,285 | $ | 16,870 | $ | 18,060 | $ | 21,037 | $ | 73,252 | $ | 18,788 | $ | 18,845 | $ | 18,897 | $ | 21,612 | $ | 78,142 | |||||||||||||||
| Depreciation and Amortization Expense | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 2,045 | $ | 2,012 | $ | 2,021 | $ | 2,008 | $ | 8,086 | $ | 2,014 | $ | 2,023 | $ | 2,035 | $ | 2,050 | $ | 8,122 | |||||||||||||||
| Business Wireline | 1,286 | 1,301 | 1,313 | 1,316 | 5,216 | 1,278 | 1,293 | 1,304 | 1,317 | 5,192 | |||||||||||||||||||||||||
| Consumer Wireline | 712 | 730 | 734 | 738 | 2,914 | 762 | 769 | 775 | 789 | 3,095 | |||||||||||||||||||||||||
| Mexico | 134 | 115 | 124 | 140 | 513 | 145 | 150 | 157 | 153 | 605 | |||||||||||||||||||||||||
| Segment Total | 4,177 | 4,158 | 4,192 | 4,202 | 16,729 | 4,199 | 4,235 | 4,271 | 4,309 | 17,014 | |||||||||||||||||||||||||
| Corporate: | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | 92 | 144 | 236 | |||||||||||||||||||||||||
| Estimated comparative adjustment for DTV retained cost | 180 | 180 | 180 | 180 | 720 | 180 | 180 | 60 | — | 420 | |||||||||||||||||||||||||
| Value Portfolio | 20 | 21 | 17 | 18 | 76 | 18 | 17 | 22 | 18 | 75 | |||||||||||||||||||||||||
| Total Corporate | 200 | 201 | 197 | 198 | 796 | 198 | 197 | 174 | 162 | 731 | |||||||||||||||||||||||||
| Merger & Significant Items | 34 | 32 | 26 | 30 | 122 | 86 | 29 | (9) | 7 | 113 | |||||||||||||||||||||||||
| Standalone AT&T Depreciation and Amortization Expense | 4,411 | 4,391 | 4,415 | 4,430 | 17,647 | 4,483 | 4,461 | 4,436 | 4,478 | 17,858 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | (34) | (32) | (26) | (31) | (123) | (86) | (29) | 9 | (7) | (113) | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Depreciation and Amortization Expense | $ | 4,377 | $ | 4,359 | $ | 4,389 | $ | 4,399 | $ | 17,524 | $ | 4,397 | $ | 4,432 | $ | 4,445 | $ | 4,471 | $ | 17,745 | |||||||||||||||
| Operating Income | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 5,894 | $ | 5,919 | $ | 5,798 | $ | 5,190 | $ | 22,801 | $ | 6,044 | $ | 6,007 | $ | 5,987 | $ | 5,332 | $ | 23,370 | |||||||||||||||
| Business Wireline | 1,157 | 1,351 | 1,249 | 1,042 | 4,799 | 1,080 | 1,069 | 1,002 | 876 | 4,027 | |||||||||||||||||||||||||
| Consumer Wireline | 539 | 415 | 224 | 284 | 1,462 | 307 | 308 | 179 | 202 | 996 | |||||||||||||||||||||||||
| Mexico | (145) | (173) | (143) | (126) | (587) | (134) | (129) | (130) | (117) | (510) | |||||||||||||||||||||||||
| Segment Total | 7,445 | 7,512 | 7,128 | 6,390 | 28,475 | 7,297 | 7,255 | 7,038 | 6,293 | 27,883 | |||||||||||||||||||||||||
| Corporate | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | (141) | (289) | (430) | |||||||||||||||||||||||||
| Estimated comparative adjustment for DTV retained cost | (530) | (530) | (530) | (530) | (2,120) | (530) | (530) | (177) | — | (1,237) | |||||||||||||||||||||||||
| Parent administration support | (370) | (498) | (501) | (374) | (1,743) | (376) | (406) | (352) | (382) | (1,516) | |||||||||||||||||||||||||
| Securitization fees | (28) | (6) | 10 | 5 | (19) | (27) | 3 | 15 | (19) | (28) | |||||||||||||||||||||||||
| Value portfolio (including Invidi) | 76 | 95 | 93 | 100 | 364 | 104 | 73 | 75 | 77 | 329 | |||||||||||||||||||||||||
| Total Corporate | (852) | (939) | (928) | (799) | (3,518) | (829) | (860) | (580) | (613) | (2,882) | |||||||||||||||||||||||||
| Reclassification of prior service credits | (610) | (611) | (611) | (610) | (2,442) | (669) | (672) | (670) | (669) | (2,680) | |||||||||||||||||||||||||
| Merger & Significant Items | 716 | (789) | 30 | (74) | (117) | (75) | 64 | (137) | (103) | (251) | |||||||||||||||||||||||||
| Standalone AT&T Operating Income | 6,699 | 5,173 | 5,619 | 4,907 | 22,398 | 5,724 | 5,787 | 5,651 | 4,908 | 22,070 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | (716) | 789 | (30) | 77 | 120 | 75 | (64) | 136 | 104 | 251 | |||||||||||||||||||||||||
| Standalone AT&T Adjusted Operating Income | $ | 5,983 | $ | 5,962 | $ | 5,589 | $ | 4,984 | $ | 22,518 | $ | 5,799 | $ | 5,723 | $ | 5,787 | $ | 5,012 | $ | 22,321 | |||||||||||||||
EBITDA1 | 3/31/2020 | 6/30/2020 | 9/30/2020 | 12/31/2020 | 2020 | 3/31/2021 | 6/30/2021 | 9/30/2021 | 12/31/2021 | 2021 | |||||||||||||||||||||||||
| Mobility | $ | 7,939 | $ | 7,931 | $ | 7,819 | $ | 7,198 | $ | 30,887 | $ | 8,058 | $ | 8,030 | $ | 8,022 | $ | 7,382 | $ | 31,492 | |||||||||||||||
| Business Wireline | 2,443 | 2,652 | 2,562 | 2,358 | 10,015 | 2,358 | 2,362 | 2,306 | 2,193 | 9,219 | |||||||||||||||||||||||||
| Consumer Wireline | 1,251 | 1,145 | 958 | 1,022 | 4,376 | 1,069 | 1,077 | 954 | 991 | 4,091 | |||||||||||||||||||||||||
| Mexico | (11) | (58) | (19) | 14 | (74) | 11 | 21 | 27 | 36 | 95 | |||||||||||||||||||||||||
| Segment Total | 11,622 | 11,670 | 11,320 | 10,592 | 45,204 | 11,496 | 11,490 | 11,309 | 10,602 | 44,897 | |||||||||||||||||||||||||
| Corporate | |||||||||||||||||||||||||||||||||||
| DTV stranded costs | — | — | — | — | — | — | — | (49) | (145) | (194) | |||||||||||||||||||||||||
| Estimated comparative adjustment for DTV retained cost | (350) | (350) | (350) | (350) | (1,400) | (350) | (350) | (117) | — | (817) | |||||||||||||||||||||||||
| Parent administration support | (370) | (498) | (501) | (374) | (1,743) | (376) | (406) | (352) | (382) | (1,516) | |||||||||||||||||||||||||
| Securitization fees | (28) | (6) | 10 | 5 | (19) | (27) | 3 | 15 | (19) | (28) | |||||||||||||||||||||||||
| Value portfolio (including Invidi) | 96 | 116 | 110 | 118 | 440 | 122 | 90 | 97 | 95 | 404 | |||||||||||||||||||||||||
| Total Corporate | (652) | (738) | (731) | (601) | (2,722) | (631) | (663) | (406) | (451) | (2,151) | |||||||||||||||||||||||||
| Reclassification of prior service credits | (610) | (611) | (611) | (610) | (2,442) | (669) | (672) | (670) | (669) | (2,680) | |||||||||||||||||||||||||
| Merger & Significant Items | 750 | (757) | 56 | (44) | 5 | 11 | 93 | (146) | (96) | (138) | |||||||||||||||||||||||||
| Standalone AT&T EBITDA | 11,110 | 9,564 | 10,034 | 9,337 | 40,045 | 10,207 | 10,248 | 10,087 | 9,386 | 39,928 | |||||||||||||||||||||||||
| Standalone AT&T Merger & Significant items | (750) | 757 | (56) | 44 | (5) | (11) | (93) | 145 | 97 | 138 | |||||||||||||||||||||||||
| Standalone AT&T Adjusted EBITDA | $ | 10,360 | $ | 10,321 | $ | 9,978 | $ | 9,381 | $ | 40,040 | $ | 10,196 | $ | 10,155 | $ | 10,232 | $ | 9,483 | $ | 40,066 | |||||||||||||||
1 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.