At&T Inc 8-K, filed Oct 20, 2022
At&T Inc. (T)
8-K
2022-10-20
For: 2022-10-20
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July 08, 2026
About this 8-K
At&T Inc filed this 8-K on October 20, 2022.
Items reported
- Item 8.01: Other events
- 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) October 20, 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 8.01 Other Events.
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.
On April 8, 2022, we completed the separation of our WarnerMedia business and recast historical financial results to present WarnerMedia and other business dispositions that were components of AT&T’s single plan of a strategic shift as discontinued operations. The discussion below refers to our continuing operations and includes the results of the U.S. Video business that was separated in July 2021.
Overview
We announced on October 20, 2022 that third-quarter 2022 income from continuing operations totaled $6.3 billion, or $0.79 per diluted share. Third-quarter 2022 income per diluted share included amounts totaling to $444 million (pre-tax), or $0.11 per share, resulting from the following significant items: actuarial gains on remeasurement of our pension and postemployment benefit plan assets and obligations of $0.14 per share and benefits from tax items of $0.10 per share partially offset by $(0.04) per share from our proportionate share of DIRECTV intangible amortization, $(0.04) per share of other benefit related market-driven adjustments $(0.02) per share from the adoption of Accounting Standards Update (ASU) No. 2020-06 (ASU 2020-06) and $(0.03) per share of other charges. These results compare with a reported net income from continuing operations of $5.0 billion, or $0.63 per diluted share, in the third quarter of 2021, which included $0.04 per share of actuarial gains and $(0.01) per share from our retrospective adoption of ASU 2020-06.
Operating revenues in the third quarter of 2022 were $30.0 billion, down 4.1 percent from the third quarter of 2021, reflecting the impact of our divested Video business and other businesses that did not qualify as discontinued operations, and lower Business Wireline revenues. The declines were partially offset by higher Mobility, and, to a lesser extent, increased Consumer Wireline and Mexico revenues.
Operating expenses in the third quarter of 2022 were $24.0 billion, down 4.2 percent, reflecting impacts from divested businesses and 3G network shutdown costs in the prior-year quarter. Partially offsetting the decreases were increased Mobility costs, including equipment costs driven by increased sales and the mix of higher-priced smartphones.
Operating income in the third quarter was $6.0 billion compared to $6.2 billion in the comparable 2021 period, and AT&T’s third-quarter operating income margin was 20.0 percent, compared to 19.9 percent in the comparable 2021 period.
Other income (expense) - net in the third quarter was $2.3 billion compared to $1.5 billion in the comparable 2021 period. The increase reflects a $1.4 billion actuarial gain on pension and postretirement benefits in the third quarter of 2022 versus a $374 million gain in the prior-year quarter. Third-quarter 2022 benefit expense also includes approximately $140 million favorable impact from a retirement benefit plan change, with $115 million resulting from prior service credits that have no impact on consolidated operating income. We present the impact of benefit plan amendments in our business unit results, with the Communications segment operating income margins including $115 million operating expense reduction.
Cash from operating activities from continuing operations in the third quarter of 2022 was $10.1 billion, up $0.8 billion when compared to 2021, reflecting higher distributions from DIRECTV and receivable sales, partially offset by payments for wireless devices. Capital expenditures in the third quarter of 2022 were $5.9 billion, and when including $0.9 billion cash paid for vendor financing, capital investment was $6.8 billion, compared to prior-year third quarter capital investment of $5.5 billion (capital expenditures of $4.5 billion and vendor financing of $1.0 billion).
Segment Summary
We analyze our segments based on segment operating income, which excludes acquisition-related costs and other significant items. Our reportable segments are: Communications and Latin America.
Communications
Our Communications segment consists of our Mobility, Business Wireline and Consumer Wireline business units.
Third-quarter 2022 operating revenues were $29.1 billion, up 3.2 percent versus third-quarter 2021, with segment operating income of $7.6 billion, up 6.5 percent versus the year-ago quarter. Operating income reflects lower costs associated with a third-quarter 2022 benefit plan change of approximately $115 million, with $50 million for Business Wireline, $40 million for Consumer Wireline and $20 million for Mobility. The Communications segment operating income margin was 26.2 percent, compared to 25.4 percent in the year-earlier quarter.
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Mobility
Mobility revenues for the third quarter of 2022 were $20.3 billion, up 6.0 percent versus the third quarter of 2021, driven by service revenue growth from subscriber and ARPU growth and equipment revenue growth from higher sales and the mix of higher priced smartphone sales. Mobility operating expenses totaled $13.9 billion, up 5.4 percent versus the third quarter of 2021 due to increased equipment costs resulting from sales and the mix of higher priced smartphones, higher bad debt expense, higher sales costs, increased amortization of customer acquisition costs, higher network costs and the elimination of CAF II government credits, partially offset by the absence of 3G network shutdown costs in the current-year quarter. Mobility’s operating income margin was 31.7 percent compared to 31.3 percent in the year-ago quarter.
In our Mobility business unit, during the third quarter of 2022, we reported a net gain of 7.1 million wireless subscribers. At September 30, 2022, wireless subscribers totaled 210.7 million (including approximately 4.0 million FirstNet connections) compared to 196.5 million at September 30, 2021.
During the third quarter, total phone net adds (postpaid and prepaid) were 816,000 with total net adds by subscriber category as follows:
•Postpaid subscriber net adds were 964,000, with phone net adds of 708,000.
•Prepaid subscriber net adds were 141,000, with phone net adds of 108,000.
•Reseller net adds were 308,000.
•Connected device net adds were 5.7 million, 2.6 million of which were primarily attributable to wholesale connected cars.
For the quarter ended September 30, 2022, postpaid phone-only ARPU increased 2.4 percent versus the year-earlier quarter.
Postpaid phone-only churn was 0.84 percent compared to 0.72 percent in the third quarter of 2021. Total postpaid churn was 1.01 percent compared to 0.92 percent in the year-ago quarter.
Business Wireline
Business Wireline revenues for the third quarter of 2022 were $5.7 billion, down 4.5 percent versus the year-ago quarter, primarily due to lower demand for legacy voice and data services and product simplification. Also contributing to the decline was lower revenues from the government sector. Partially offsetting revenue declines was growth in connectivity services and revenues of approximately $100 from intellectual property sales. Business Wireline operating expenses totaled $4.8 billion, down 3.0 percent when compared to the third quarter of 2021 due to ongoing operational cost efficiencies, credits from a benefit plan change and lower amortization of deferred fulfillment costs, partially offset by higher wholesale access network costs and depreciation expense. Business Wireline operating income margin was 15.6 percent compared to 16.9 percent in the year-earlier quarter.
Consumer Wireline
Consumer Wireline revenues for the third quarter of 2022 were $3.2 billion, up 1.4 percent versus the year-ago quarter, driven by growth in broadband revenues attributable to fiber growth, partially offset by declines in legacy voice and data services and other services. Consumer Wireline operating expenses totaled $2.9 billion, down 3.6 percent versus the third quarter of 2021, largely driven by lower network and customer support costs, fewer employee-related costs, including impacts of a benefit plan change, decreased HBO Max licensing fees and lower amortization of deferred fulfillment costs. Partially offsetting these decreases were the elimination of CAF II government credits, and higher bad debt and depreciation expenses. Consumer Wireline operating income margin was 10.4 percent compared to 5.7 percent in the year-earlier quarter.
At September 30, 2022, Consumer Wireline had approximately 13.8 million broadband connections compared to 13.8 million at September 30, 2021. During the third quarter, broadband subscriber net losses were 29,000, with fiber broadband net adds of 338,000. Total broadband and DSL connections were 14.1 million at September 30, 2022, compared to 14.2 million at September 30, 2021.
Latin America
Our Latin America segment consists of our Mexico business unit and is subject to foreign currency fluctuations.
Revenues were $785 million, up 8.4 percent when compared to the third quarter of 2021, primarily due to increased service revenues driven by growth in wholesale revenue and subscribers. Operating expenses were $848 million, down 0.7 percent, driven by lower equipment costs partially offset by higher bad debt and depreciation expenses. Mexico’s operating income margin was (8.0) percent, compared to (18.0) percent in the year-earlier quarter.
We had approximately 21.0 million Mexico wireless subscribers at September 30, 2022 compared to 19.5 million at September 30, 2021. During the third quarter of 2022, we had postpaid net adds of 19,000 and prepaid net adds of 267,000.
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CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. 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.
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Item 9.01 Financial Statements and Exhibits.
The following exhibits are furnished as part of this report:
(d) | Exhibits | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AT&T INC. | |||||
Date: October 20, 2022 | By: /s/ Debra L. Dial . Debra L. Dial Senior Vice President - Chief Accounting Officer and Controller | ||||
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| AT&T Inc. | ||||||||||||||||||||
| Financial Data | ||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||
| Dollars in millions except per share amounts | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Service | $ | 24,731 | $ | 26,247 | (5.8) | % | $ | 72,998 | $ | 87,340 | (16.4) | % | ||||||||
| Equipment | 5,312 | 5,079 | 4.6 | % | 16,400 | 15,603 | 5.1 | % | ||||||||||||
| Total Operating Revenues | 30,043 | 31,326 | (4.1) | % | 89,398 | 102,943 | (13.2) | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Cost of revenues | ||||||||||||||||||||
| Equipment | 5,440 | 5,401 | 0.7 | % | 17,010 | 16,242 | 4.7 | % | ||||||||||||
| Broadcast, programming and operations | — | 1,117 | — | % | — | 8,106 | — | % | ||||||||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | 6,761 | 6,915 | (2.2) | % | 20,267 | 21,834 | (7.2) | % | ||||||||||||
| Selling, general and administrative | 7,202 | 7,094 | 1.5 | % | 21,445 | 22,301 | (3.8) | % | ||||||||||||
| Asset impairments and abandonments and restructuring | 114 | 105 | 8.6 | % | 745 | 105 | — | % | ||||||||||||
| Depreciation and amortization | 4,514 | 4,457 | 1.3 | % | 13,426 | 13,352 | 0.6 | % | ||||||||||||
| Total Operating Expenses | 24,031 | 25,089 | (4.2) | % | 72,893 | 81,940 | (11.0) | % | ||||||||||||
| Operating Income | 6,012 | 6,237 | (3.6) | % | 16,505 | 21,003 | (21.4) | % | ||||||||||||
| Interest Expense | 1,420 | 1,627 | (12.7) | % | 4,548 | 5,090 | (10.6) | % | ||||||||||||
| Equity in Net Income (Loss) of Affiliates | 392 | 183 | — | % | 1,417 | 159 | — | % | ||||||||||||
| Other Income (Expense) — Net | 2,270 | 1,522 | 49.1 | % | 6,729 | 6,958 | (3.3) | % | ||||||||||||
| Income from Continuing Operations Before Income Taxes | 7,254 | 6,315 | 14.9 | % | 20,103 | 23,030 | (12.7) | % | ||||||||||||
Income tax expense on continuing operations | 908 | 1,296 | (29.9) | % | 3,857 | 4,456 | (13.4) | % | ||||||||||||
| Income From Continuing Operations | 6,346 | 5,019 | 26.4 | % | 16,246 | 18,574 | (12.5) | % | ||||||||||||
Income (loss) from discontinued operations, net of tax | 53 | 1,254 | (95.8) | % | (146) | (2,485) | 94.1 | % | ||||||||||||
| Net Income | 6,399 | 6,273 | 2.0 | % | 16,100 | 16,089 | 0.1 | % | ||||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | (373) | (355) | (5.1) | % | (1,107) | (1,051) | (5.3) | % | ||||||||||||
| Net Income Attributable to AT&T | $ | 6,026 | $ | 5,918 | 1.8 | % | $ | 14,993 | $ | 15,038 | (0.3) | % | ||||||||
| Less: Preferred Stock Dividends | (49) | (50) | 2.0 | % | (149) | (156) | 4.5 | % | ||||||||||||
| Net Income Attributable to Common Stock | $ | 5,977 | $ | 5,868 | 1.9 | % | $ | 14,844 | $ | 14,882 | (0.3) | % | ||||||||
Basic Earnings Per Share Attributable to Common Stock | ||||||||||||||||||||
| From continuing operations | $ | 0.82 | $ | 0.64 | 28.1 | % | $ | 2.08 | $ | 2.40 | (13.3) | % | ||||||||
| From discontinued operations | $ | 0.01 | $ | 0.18 | (94.4) | % | $ | (0.02) | $ | (0.33) | 93.9 | % | ||||||||
| $ | 0.83 | $ | 0.82 | 1.2 | % | $ | 2.06 | $ | 2.07 | (0.5) | % | |||||||||
Weighted Average Common Shares Outstanding (000,000) | 7,153 | 7,171 | (0.3) | % | 7,169 | 7,167 | — | % | ||||||||||||
Diluted Earnings Per Share Attributable to Common Stock 1 | ||||||||||||||||||||
| From continuing operations | $ | 0.79 | $ | 0.63 | 25.4 | % | $ | 2.03 | $ | 2.37 | (14.3) | % | ||||||||
| From discontinued operations | $ | 0.01 | $ | 0.17 | (94.1) | % | $ | (0.02) | $ | (0.33) | 93.9 | % | ||||||||
| $ | 0.80 | $ | 0.80 | — | % | $ | 2.01 | $ | 2.04 | (1.5) | % | |||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) 1 | 7,647 | 7,506 | 1.9 | % | 7,605 | 7,491 | 1.5 | % | ||||||||||||
1Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 | ||||||||||||||||||||
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| AT&T Inc. | |||||||||||
| Financial Data | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | Sep. 30, | Dec. 31, | |||||||||
| 2022 | 2021 | ||||||||||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 2,423 | $ | 19,223 | |||||||
| Accounts receivable – net of related allowances for credit loss of $646 and $658 | 11,384 | 12,313 | |||||||||
| Inventories | 3,935 | 3,325 | |||||||||
| Prepaid and other current assets | 14,553 | 16,131 | |||||||||
| Assets from discontinued operations | — | 119,776 | |||||||||
| Total current assets | 32,295 | 170,768 | |||||||||
| Property, Plant and Equipment – Net | 127,045 | 121,649 | |||||||||
| Goodwill | 92,725 | 92,740 | |||||||||
| Licenses – Net | 123,856 | 113,830 | |||||||||
| Other Intangible Assets – Net | 5,362 | 5,391 | |||||||||
| Investments in and Advances to Equity Affiliates | 3,964 | 6,168 | |||||||||
| Operating Lease Right-Of-Use Assets | 21,782 | 21,824 | |||||||||
| Other Assets | 19,434 | 19,252 | |||||||||
| Total Assets | $ | 426,463 | $ | 551,622 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Debt maturing within one year | $ | 9,626 | $ | 24,620 | |||||||
| Note payable to DIRECTV | 271 | 1,245 | |||||||||
| Accounts payable and accrued liabilities | 36,642 | 39,095 | |||||||||
| Advanced billings and customer deposits | 3,705 | 3,966 | |||||||||
| Dividends payable | 2,013 | 3,749 | |||||||||
| Liabilities from discontinued operations | — | 33,555 | |||||||||
| Total current liabilities | 52,257 | 106,230 | |||||||||
| Long-Term Debt | 123,854 | 151,011 | |||||||||
| Deferred Credits and Other Noncurrent Liabilities | |||||||||||
| Deferred income taxes | 56,055 | 53,767 | |||||||||
| Postemployment benefit obligation | 6,152 | 12,560 | |||||||||
| Operating lease liabilities | 18,741 | 18,956 | |||||||||
| Other noncurrent liabilities | 29,426 | 25,243 | |||||||||
| Total deferred credits and other noncurrent liabilities | 110,374 | 110,526 | |||||||||
| Stockholders’ Equity | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 7,621 | 7,621 | |||||||||
| Additional paid-in capital | 122,933 | 130,112 | |||||||||
| Retained earnings | 6,127 | 42,350 | |||||||||
| Treasury stock | (17,148) | (17,280) | |||||||||
| Accumulated other comprehensive income | 2,873 | 3,529 | |||||||||
| Noncontrolling interest | 17,572 | 17,523 | |||||||||
| Total stockholders’ equity | 139,978 | 183,855 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 426,463 | $ | 551,622 | |||||||
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| AT&T Inc. | |||||||||||
| Financial Data | |||||||||||
| Consolidated Statements of Cash Flows | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | Nine-Month Period | ||||||||||
| 2022 | 2021 | ||||||||||
| Operating Activities | |||||||||||
| Income from continuing operations | $ | 16,246 | $ | 18,574 | |||||||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | |||||||||||
| Depreciation and amortization | 13,426 | 13,352 | |||||||||
| Provision for uncollectible accounts | 1,323 | 857 | |||||||||
| Deferred income tax expense | 2,947 | 5,234 | |||||||||
| Net (gain) loss on investments, net of impairments | 412 | (298) | |||||||||
| Pension and postretirement benefit expense (credit) | (2,484) | (2,875) | |||||||||
| Actuarial (gain) loss on pension and postretirement benefits | (3,838) | (3,021) | |||||||||
| Asset impairments and abandonments and restructuring | 745 | 105 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | 1,021 | (101) | |||||||||
| Other current assets | (799) | (484) | |||||||||
| Accounts payable and other accrued liabilities | (3,261) | (2,660) | |||||||||
| Equipment installment receivables and related sales | 906 | 715 | |||||||||
| Deferred customer contract acquisition and fulfillment costs | (756) | 287 | |||||||||
| Postretirement claims and contributions | (443) | (425) | |||||||||
| Other - net | 19 | (167) | |||||||||
| Total adjustments | 9,218 | 10,519 | |||||||||
| Net Cash Provided by Operating Activities from Continuing Operations | 25,464 | 29,093 | |||||||||
| Investing Activities | |||||||||||
| Capital expenditures | (15,397) | (12,051) | |||||||||
| Acquisitions, net of cash acquired | (9,959) | (23,533) | |||||||||
| Dispositions | 49 | 7,061 | |||||||||
| Distributions from DIRECTV in excess of cumulative equity in earnings | 2,205 | — | |||||||||
| Other - net | 91 | (5) | |||||||||
| Net Cash Used in Investing Activities from Continuing Operations | (23,011) | (28,528) | |||||||||
| Financing Activities | |||||||||||
| Net change in short-term borrowings with original maturities of three months or less | 84 | 630 | |||||||||
| Issuance of other short-term borrowings | 3,955 | 17,476 | |||||||||
| Repayment of other short-term borrowings | (16,861) | (2,448) | |||||||||
| Issuance of long-term debt | 479 | 9,931 | |||||||||
| Repayment of long-term debt | (24,412) | (1,574) | |||||||||
| Note payable to DIRECTV, net of payments | (1,070) | 1,439 | |||||||||
| Payment of vendor financing | (4,237) | (4,013) | |||||||||
| Purchase of treasury stock | (875) | (191) | |||||||||
| Issuance of treasury stock | 28 | 89 | |||||||||
| Dividends paid | (7,845) | (11,319) | |||||||||
| Other - net | (3,649) | (1,567) | |||||||||
| Net Cash (Used in) Provided by Financing Activities from Continuing Operations | (54,403) | 8,453 | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations | (51,950) | 9,018 | |||||||||
| Cash flows from Discontinued Operations: | |||||||||||
| Cash (used in) provided by operating activities | (3,754) | 1,610 | |||||||||
| Cash provided by (used in) investing activities | 1,029 | 1,195 | |||||||||
| Cash provided by (used in) financing activities | 35,853 | (288) | |||||||||
| Net increase in cash and cash equivalents and restricted cash from discontinued operations | 33,128 | 2,517 | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (18,822) | $ | 11,535 | |||||||
| Cash and cash equivalents and restricted cash beginning of year | 21,316 | 9,870 | |||||||||
| Cash and Cash Equivalents and Restricted Cash End of Period | $ | 2,494 | $ | 21,405 | |||||||
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| AT&T Inc. | ||||||||||||||||||||
| Consolidated Supplementary Data | ||||||||||||||||||||
| Supplementary Financial Data | ||||||||||||||||||||
| Dollars in millions except per share amounts | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Capital expenditures | ||||||||||||||||||||
| Purchase of property and equipment | $ | 5,874 | $ | 4,432 | 32.5 | % | $ | 15,273 | $ | 11,919 | 28.1 | % | ||||||||
| Interest during construction - capital expenditures | 47 | 38 | 23.7 | % | 124 | 132 | (6.1) | % | ||||||||||||
| Total Capital Expenditures | $ | 5,921 | $ | 4,470 | 32.5 | % | $ | 15,397 | $ | 12,051 | 27.8 | % | ||||||||
| Acquisitions, net of cash acquired | ||||||||||||||||||||
| Business acquisitions | $ | — | $ | — | — | % | $ | — | $ | — | — | % | ||||||||
| Spectrum acquisitions | 111 | 131 | (15.3) | % | 9,076 | 23,017 | (60.6) | % | ||||||||||||
| Interest during construction - spectrum | 278 | 259 | 7.3 | % | 883 | 516 | 71.1 | % | ||||||||||||
| Total Acquisitions | $ | 389 | $ | 390 | (0.3) | % | $ | 9,959 | $ | 23,533 | (57.7) | % | ||||||||
| Dividends Declared per Common Share | $ | 0.2775 | $ | 0.52 | (46.6) | % | $ | 0.8325 | $ | 1.56 | (46.6) | % | ||||||||
| End of Period Common Shares Outstanding (000,000) | 7,126 | 7,140 | (0.2) | % | ||||||||||||||||
| Debt Ratio | 48.8 | % | 49.5 | % | (70) | BP | ||||||||||||||
| Total Employees | 169,880 | 177,309 | (4.2) | % | ||||||||||||||||
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COMMUNICATIONS SEGMENT
The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline, and Consumer Wireline.
Results have been recast to refine the allocation of shared infrastructure costs between the Communications segment and Corporate and Other.
| Segment Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Segment Operating Revenues | ||||||||||||||||||||
| Mobility | $ | 20,278 | $ | 19,138 | 6.0 | % | $ | 60,279 | $ | 57,108 | 5.6 | % | ||||||||
| Business Wireline | 5,668 | 5,938 | (4.5) | % | 16,903 | 18,036 | (6.3) | % | ||||||||||||
| Consumer Wireline | 3,185 | 3,142 | 1.4 | % | 9,520 | 9,380 | 1.5 | % | ||||||||||||
| Total Segment Operating Revenues | 29,131 | 28,218 | 3.2 | % | 86,702 | 84,524 | 2.6 | % | ||||||||||||
| Operating Income | ||||||||||||||||||||
| Mobility | 6,419 | 5,987 | 7.2 | % | 18,484 | 18,038 | 2.5 | % | ||||||||||||
| Business Wireline | 882 | 1,002 | (12.0) | % | 2,451 | 3,151 | (22.2) | % | ||||||||||||
| Consumer Wireline | 330 | 179 | 84.4 | % | 951 | 794 | 19.8 | % | ||||||||||||
| Total Operating Income | $ | 7,631 | $ | 7,168 | 6.5 | % | $ | 21,886 | $ | 21,983 | (0.4) | % | ||||||||
| Supplementary Operating Data | ||||||||||||||||||||
| Subscribers and connections in thousands | ||||||||||||||||||||
| Unaudited | September 30, | Percent | ||||||||||||||||||
| 2022 | 2021 | Change | ||||||||||||||||||
| Broadband Connections | ||||||||||||||||||||
| Broadband | 15,112 | 15,050 | 0.4 | % | ||||||||||||||||
| DSL | 340 | 460 | (26.1) | % | ||||||||||||||||
| Total Broadband Connections | 15,452 | 15,510 | (0.4) | % | ||||||||||||||||
| Voice Connections | ||||||||||||||||||||
| Retail Consumer Switched Access Lines | 5,466 | 6,404 | (14.6) | % | ||||||||||||||||
| U-verse Consumer VoIP Connections | 3,022 | 3,440 | (12.2) | % | ||||||||||||||||
| Total Retail Voice Connections | 8,488 | 9,844 | (13.8) | % | ||||||||||||||||
| Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Broadband Net Additions | ||||||||||||||||||||
| Broadband | (24) | 62 | — | % | 38 | 232 | (83.6) | % | ||||||||||||
| DSL | (33) | (33) | — | % | (90) | (106) | 15.1 | % | ||||||||||||
| Total Broadband Net Additions | (57) | 29 | — | % | (52) | 126 | — | % | ||||||||||||
5
Mobility
Mobility provides nationwide wireless service and equipment.
| Mobility Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Service | $ | 15,337 | $ | 14,527 | 5.6 | % | $ | 45,065 | $ | 42,921 | 5.0 | % | ||||||||
| Equipment | 4,941 | 4,611 | 7.2 | % | 15,214 | 14,187 | 7.2 | % | ||||||||||||
| Total Operating Revenues | 20,278 | 19,138 | 6.0 | % | 60,279 | 57,108 | 5.6 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 11,817 | 11,116 | 6.3 | % | 35,677 | 32,998 | 8.1 | % | ||||||||||||
| Depreciation and amortization | 2,042 | 2,035 | 0.3 | % | 6,118 | 6,072 | 0.8 | % | ||||||||||||
| Total Operating Expenses | 13,859 | 13,151 | 5.4 | % | 41,795 | 39,070 | 7.0 | % | ||||||||||||
| Operating Income | $ | 6,419 | $ | 5,987 | 7.2 | % | $ | 18,484 | $ | 18,038 | 2.5 | % | ||||||||
| Operating Income Margin | 31.7 | % | 31.3 | % | 40 | BP | 30.7 | % | 31.6 | % | (90) | BP | ||||||||
| Supplementary Operating Data | ||||||||||||||||||||
| Subscribers and connections in thousands | ||||||||||||||||||||
| Unaudited | September 30, | Percent | ||||||||||||||||||
| 2022 | 2021 | Change | ||||||||||||||||||
| Mobility Subscribers | ||||||||||||||||||||
| Postpaid | 83,614 | 80,249 | 4.2 | % | ||||||||||||||||
| Postpaid phone | 68,969 | 66,396 | 3.9 | % | ||||||||||||||||
| Prepaid | 19,215 | 19,028 | 1.0 | % | ||||||||||||||||
| Reseller | 5,854 | 6,263 | (6.5) | % | ||||||||||||||||
| Connected Devices | 101,995 | 90,979 | 12.1 | % | ||||||||||||||||
Total Mobility Subscribers1 | 210,678 | 196,519 | 7.2 | % | ||||||||||||||||
1Wireless subscribers at September 30, 2022 includes a reduction of 10,707 subscribers and connections (899 postpaid, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,825 connected devices) resulting from our 3G network shutdown in February 2022. The third quarter includes an adjustment of 170 subscribers, primarily connected devices. | ||||||||||||||||||||
| Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Mobility Net Additions | ||||||||||||||||||||
| Postpaid Phone Net Additions | 708 | 928 | (23.7) | % | 2,212 | 2,312 | (4.3) | % | ||||||||||||
| Total Phone Net Additions | 816 | 1,177 | (30.7) | % | 2,629 | 2,942 | (10.6) | % | ||||||||||||
| Postpaid | 964 | 1,218 | (20.9) | % | 2,987 | 3,197 | (6.6) | % | ||||||||||||
| Prepaid | 141 | 351 | (59.8) | % | 488 | 927 | (47.4) | % | ||||||||||||
| Reseller | 308 | (164) | — | % | 312 | (357) | — | % | ||||||||||||
| Connected Devices | 5,716 | 3,468 | 64.8 | % | 15,476 | 10,194 | 51.8 | % | ||||||||||||
| Total Mobility Net Additions | 7,129 | 4,873 | 46.3 | % | 19,263 | 13,961 | 38.0 | % | ||||||||||||
| Postpaid Churn | 1.01 | % | 0.92 | % | 9 | BP | 0.96 | % | 0.91 | % | 5 BP | |||||||||
| Postpaid Phone-Only Churn | 0.84 | % | 0.72 | % | 12 | BP | 0.79 | % | 0.72 | % | 7 BP | |||||||||
6
Business Wireline
Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, as well as traditional voice and data services and related equipment to business customers.
| Business Wireline Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Service | $ | 5,524 | $ | 5,765 | (4.2) | % | $ | 16,418 | $ | 17,497 | (6.2) | % | ||||||||
| Equipment | 144 | 173 | (16.8) | % | 485 | 539 | (10.0) | % | ||||||||||||
| Total Operating Revenues | 5,668 | 5,938 | (4.5) | % | 16,903 | 18,036 | (6.3) | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 3,444 | 3,632 | (5.2) | % | 10,498 | 11,010 | (4.7) | % | ||||||||||||
| Depreciation and amortization | 1,342 | 1,304 | 2.9 | % | 3,954 | 3,875 | 2.0 | % | ||||||||||||
| Total Operating Expenses | 4,786 | 4,936 | (3.0) | % | 14,452 | 14,885 | (2.9) | % | ||||||||||||
| Operating Income | $ | 882 | $ | 1,002 | (12.0) | % | $ | 2,451 | $ | 3,151 | (22.2) | % | ||||||||
| Operating Income Margin | 15.6 | % | 16.9 | % | (130) | BP | 14.5 | % | 17.5 | % | (300) | BP | ||||||||
7
Consumer Wireline
Consumer Wireline provides broadband services, including fiber connections that now provide our multi-gig services to residential customers. Consumer Wireline also provides legacy telephony voice communication services.
| Consumer Wireline Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Broadband | $ | 2,429 | $ | 2,290 | 6.1 | % | $ | 7,177 | $ | 6,761 | 6.2 | % | ||||||||
| Legacy voice and data services | 427 | 484 | (11.8) | % | 1,332 | 1,507 | (11.6) | % | ||||||||||||
| Other service and equipment | 329 | 368 | (10.6) | % | 1,011 | 1,112 | (9.1) | % | ||||||||||||
| Total Operating Revenues | 3,185 | 3,142 | 1.4 | % | 9,520 | 9,380 | 1.5 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 2,055 | 2,188 | (6.1) | % | 6,218 | 6,280 | (1.0) | % | ||||||||||||
| Depreciation and amortization | 800 | 775 | 3.2 | % | 2,351 | 2,306 | 2.0 | % | ||||||||||||
| Total Operating Expenses | 2,855 | 2,963 | (3.6) | % | 8,569 | 8,586 | (0.2) | % | ||||||||||||
| Operating Income | $ | 330 | $ | 179 | 84.4 | % | $ | 951 | $ | 794 | 19.8 | % | ||||||||
| Operating Income Margin | 10.4 | % | 5.7 | % | 470 | BP | 10.0 | % | 8.5 | % | 150 | BP | ||||||||
| Supplementary Operating Data | ||||||||||||||||||||
| Subscribers and connections in thousands | ||||||||||||||||||||
| Unaudited | September 30, | Percent | ||||||||||||||||||
| 2022 | 2021 | Change | ||||||||||||||||||
| Broadband Connections | ||||||||||||||||||||
| Total Broadband and DSL Connections | 14,055 | 14,180 | (0.9) | % | ||||||||||||||||
| Broadband | 13,796 | 13,846 | (0.4) | % | ||||||||||||||||
| Fiber Broadband Connections | 6,935 | 5,721 | 21.2 | % | ||||||||||||||||
| Voice Connections | ||||||||||||||||||||
| Retail Consumer Switched Access Lines | 2,123 | 2,527 | (16.0) | % | ||||||||||||||||
| U-verse Consumer VoIP Connections | 2,409 | 2,843 | (15.3) | % | ||||||||||||||||
| Total Retail Consumer Voice Connections | 4,532 | 5,370 | (15.6) | % | ||||||||||||||||
| Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Broadband Net Additions | ||||||||||||||||||||
| Total Broadband and DSL Net Additions | (50) | 6 | — | % | (105) | 80 | — | % | ||||||||||||
| Broadband | (29) | 28 | — | % | (49) | 153 | — | % | ||||||||||||
| Fiber Broadband Net Additions | 338 | 289 | 17.0 | % | 943 | 770 | 22.5 | % | ||||||||||||
8
Business Solutions
As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile solutions to serving our business customers.
| Business Solutions Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Wireless service | $ | 2,222 | $ | 2,059 | 7.9 | % | $ | 6,531 | $ | 6,053 | 7.9 | % | ||||||||
| Wireline service | 5,524 | 5,765 | (4.2) | % | 16,418 | 17,497 | (6.2) | % | ||||||||||||
| Wireless equipment | 859 | 813 | 5.7 | % | 2,632 | 2,384 | 10.4 | % | ||||||||||||
| Wireline equipment | 144 | 173 | (16.8) | % | 485 | 539 | (10.0) | % | ||||||||||||
| Total Operating Revenues | 8,749 | 8,810 | (0.7) | % | 26,066 | 26,473 | (1.5) | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 5,531 | 5,581 | (0.9) | % | 16,823 | 16,743 | 0.5 | % | ||||||||||||
| Depreciation and amortization | 1,699 | 1,651 | 2.9 | % | 5,025 | 4,903 | 2.5 | % | ||||||||||||
| Total Operating Expenses | 7,230 | 7,232 | — | % | 21,848 | 21,646 | 0.9 | % | ||||||||||||
| Operating Income | $ | 1,519 | $ | 1,578 | (3.7) | % | $ | 4,218 | $ | 4,827 | (12.6) | % | ||||||||
| Operating Income Margin | 17.4 | % | 17.9 | % | (50) | BP | 16.2 | % | 18.2 | % | (200) | BP | ||||||||
9
LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
| Segment Results | ||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||
| Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Wireless service | $ | 559 | $ | 463 | 20.7 | % | $ | 1,583 | $ | 1,349 | 17.3 | % | ||||||||
| Wireless equipment | 226 | 261 | (13.4) | % | 700 | 694 | 0.9 | % | ||||||||||||
| Total Segment Operating Revenues | 785 | 724 | 8.4 | % | 2,283 | 2,043 | 11.7 | % | ||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Operations and support | 684 | 697 | (1.9) | % | 2,036 | 1,984 | 2.6 | % | ||||||||||||
| Depreciation and amortization | 164 | 157 | 4.5 | % | 494 | 452 | 9.3 | % | ||||||||||||
| Total Segment Operating Expenses | 848 | 854 | (0.7) | % | 2,530 | 2,436 | 3.9 | % | ||||||||||||
| Operating Income (Loss) | $ | (63) | $ | (130) | 51.5 | % | $ | (247) | $ | (393) | 37.2 | % | ||||||||
| Operating Income Margin | (8.0) | % | (18.0) | % | 1,000 | BP | (10.8) | % | (19.2) | % | 840 | BP | ||||||||
| Supplementary Operating Data | ||||||||||||||||||||
| Subscribers and connections in thousands | ||||||||||||||||||||
| Unaudited | September 30, | Percent | ||||||||||||||||||
| 2022 | 2021 | Change | ||||||||||||||||||
| Mexico Wireless Subscribers | ||||||||||||||||||||
| Postpaid | 4,854 | 4,781 | 1.5 | % | ||||||||||||||||
| Prepaid | 15,689 | 14,199 | 10.5 | % | ||||||||||||||||
| Reseller | 455 | 493 | (7.7) | % | ||||||||||||||||
| Total Mexico Wireless Subscribers | 20,998 | 19,473 | 7.8 | % | ||||||||||||||||
| Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
| Mexico Wireless Net Additions | ||||||||||||||||||||
| Postpaid | 19 | 36 | (47.2) | % | 47 | 85 | (44.7) | % | ||||||||||||
| Prepaid | 267 | 389 | (31.4) | % | 632 | 441 | 43.3 | % | ||||||||||||
| Reseller | 12 | 2 | — | % | (43) | 4 | — | % | ||||||||||||
| Total Mexico Wireless Net Additions | 298 | 427 | (30.2) | % | 636 | 530 | 20.0 | % | ||||||||||||
10
SUPPLEMENTAL SEGMENT RECONCILIATION
| Three Months Ended | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Unaudited | |||||||||||||||||
| September 30, 2022 | |||||||||||||||||
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
| Communications | |||||||||||||||||
| Mobility | $ | 20,278 | $ | 11,817 | $ | 8,461 | $ | 2,042 | $ | 6,419 | |||||||
| Business Wireline | 5,668 | 3,444 | 2,224 | 1,342 | 882 | ||||||||||||
| Consumer Wireline | 3,185 | 2,055 | 1,130 | 800 | 330 | ||||||||||||
| Total Communications | 29,131 | 17,316 | 11,815 | 4,184 | 7,631 | ||||||||||||
| Latin America - Mexico | 785 | 684 | 101 | 164 | (63) | ||||||||||||
| Segment Total | 29,916 | 18,000 | 11,916 | 4,348 | 7,568 | ||||||||||||
| Corporate and Other | |||||||||||||||||
| Corporate: | |||||||||||||||||
| DTV-related retained costs | — | 197 | (197) | 139 | (336) | ||||||||||||
| Parent administration support | (6) | 266 | (272) | 2 | (274) | ||||||||||||
| Securitization fees | 15 | 103 | (88) | — | (88) | ||||||||||||
| Value portfolio | 118 | 32 | 86 | 9 | 77 | ||||||||||||
| Total Corporate | 127 | 598 | (471) | 150 | (621) | ||||||||||||
| Reclassification of prior service credits | — | 731 | (731) | — | (731) | ||||||||||||
| Merger & Significant Items | — | 188 | (188) | 16 | (204) | ||||||||||||
| Total Corporate and Other | 127 | 1,517 | (1,390) | 166 | (1,556) | ||||||||||||
| AT&T Inc. | $ | 30,043 | $ | 19,517 | $ | 10,526 | $ | 4,514 | $ | 6,012 | |||||||
11
| Three Months Ended | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Unaudited | |||||||||||||||||
| September 30, 2021 | |||||||||||||||||
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
| Communications | |||||||||||||||||
| Mobility | $ | 19,138 | $ | 11,116 | $ | 8,022 | $ | 2,035 | $ | 5,987 | |||||||
| Business Wireline | 5,938 | 3,632 | 2,306 | 1,304 | 1,002 | ||||||||||||
| Consumer Wireline | 3,142 | 2,188 | 954 | 775 | 179 | ||||||||||||
| Total Communications | 28,218 | 16,936 | 11,282 | 4,114 | 7,168 | ||||||||||||
| Latin America - Mexico | 724 | 697 | 27 | 157 | (130) | ||||||||||||
| Segment Total | 28,942 | 17,633 | 11,309 | 4,271 | 7,038 | ||||||||||||
| Corporate and Other | |||||||||||||||||
| Corporate: | |||||||||||||||||
| DTV-related retained costs | 20 | 69 | (49) | 92 | (141) | ||||||||||||
| Parent administration support | — | 360 | (360) | 12 | (372) | ||||||||||||
| Securitization fees | 16 | 1 | 15 | — | 15 | ||||||||||||
| Value portfolio | 152 | 46 | 106 | 10 | 96 | ||||||||||||
| Total Corporate | 188 | 476 | (288) | 114 | (402) | ||||||||||||
| Video | 2,149 | 1,731 | 418 | 44 | 374 | ||||||||||||
| Held-for-sale and other reclassifications | 64 | 31 | 33 | — | 33 | ||||||||||||
| Reclassification of prior service credits | — | 670 | (670) | — | (670) | ||||||||||||
| Merger & Significant Items | — | 108 | (108) | 28 | (136) | ||||||||||||
| Eliminations and consolidations | (17) | (17) | — | — | — | ||||||||||||
| Total Corporate and Other | 2,384 | 2,999 | (615) | 186 | (801) | ||||||||||||
| AT&T Inc. | $ | 31,326 | $ | 20,632 | $ | 10,694 | $ | 4,457 | $ | 6,237 | |||||||
12
SUPPLEMENTAL SEGMENT RECONCILIATION
| Nine Months Ended | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Unaudited | |||||||||||||||||
| September 30, 2022 | |||||||||||||||||
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
| Communications | |||||||||||||||||
| Mobility | $ | 60,279 | $ | 35,677 | $ | 24,602 | $ | 6,118 | $ | 18,484 | |||||||
| Business Wireline | 16,903 | 10,498 | 6,405 | 3,954 | 2,451 | ||||||||||||
| Consumer Wireline | 9,520 | 6,218 | 3,302 | 2,351 | 951 | ||||||||||||
| Total Communications | 86,702 | 52,393 | 34,309 | 12,423 | 21,886 | ||||||||||||
| Latin America - Mexico | 2,283 | 2,036 | 247 | 494 | (247) | ||||||||||||
| Segment Total | 88,985 | 54,429 | 34,556 | 12,917 | 21,639 | ||||||||||||
| Corporate and Other | |||||||||||||||||
| Corporate: | |||||||||||||||||
| DTV-related retained costs | 8 | 532 | (524) | 408 | (932) | ||||||||||||
| Parent administration support | (24) | 873 | (897) | 12 | (909) | ||||||||||||
| Securitization fees | 48 | 263 | (215) | — | (215) | ||||||||||||
| Value portfolio | 381 | 106 | 275 | 29 | 246 | ||||||||||||
| Total Corporate | 413 | 1,774 | (1,361) | 449 | (1,810) | ||||||||||||
| Reclassification of prior service credits | — | 1,961 | (1,961) | — | (1,961) | ||||||||||||
| Merger & Significant Items | — | 1,303 | (1,303) | 60 | (1,363) | ||||||||||||
| Total Corporate and Other | 413 | 5,038 | (4,625) | 509 | (5,134) | ||||||||||||
| AT&T Inc. | $ | 89,398 | $ | 59,467 | $ | 29,931 | $ | 13,426 | $ | 16,505 | |||||||
13
| Nine Months Ended | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Unaudited | |||||||||||||||||
| September 30, 2021 | |||||||||||||||||
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
| Communications | |||||||||||||||||
| Mobility | $ | 57,108 | $ | 32,998 | $ | 24,110 | $ | 6,072 | $ | 18,038 | |||||||
| Business Wireline | 18,036 | 11,010 | 7,026 | 3,875 | 3,151 | ||||||||||||
| Consumer Wireline | 9,380 | 6,280 | 3,100 | 2,306 | 794 | ||||||||||||
| Total Communications | 84,524 | 50,288 | 34,236 | 12,253 | 21,983 | ||||||||||||
| Latin America - Mexico | 2,043 | 1,984 | 59 | 452 | (393) | ||||||||||||
| Segment Total | 86,567 | 52,272 | 34,295 | 12,705 | 21,590 | ||||||||||||
| Corporate and Other | |||||||||||||||||
| Corporate: | |||||||||||||||||
| DTV-related retained costs | 20 | 69 | (49) | 92 | (141) | ||||||||||||
| Parent administration support | (12) | 1,147 | (1,159) | 27 | (1,186) | ||||||||||||
| Securitization fees | 44 | 53 | (9) | — | (9) | ||||||||||||
| Value portfolio | 494 | 161 | 333 | 30 | 303 | ||||||||||||
| Total Corporate | 546 | 1,430 | (884) | 149 | (1,033) | ||||||||||||
| Video | 15,513 | 12,666 | 2,847 | 356 | 2,491 | ||||||||||||
| Held-for-sale and other reclassifications | 453 | 306 | 147 | — | 147 | ||||||||||||
| Reclassification of prior service credits | — | 2,011 | (2,011) | — | (2,011) | ||||||||||||
| Merger & Significant Items | — | 39 | (39) | 142 | (181) | ||||||||||||
| Eliminations and consolidations | (136) | (136) | — | — | — | ||||||||||||
| Total Corporate and Other | 16,376 | 16,316 | 60 | 647 | (587) | ||||||||||||
| AT&T Inc. | $ | 102,943 | $ | 68,588 | $ | 34,355 | $ | 13,352 | $ | 21,003 | |||||||
14