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AT&T (T)

Filed: 21 Apr 22, 6:26am

AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
UnauditedFirst QuarterPercent
20222021Change
Operating Revenues
Service$32,392 $38,504 (15.9)%
Equipment5,713 5,435 5.1 %
Total Operating Revenues38,105 43,939 (13.3)%
Operating Expenses
Cost of revenues
Equipment6,038 5,556 8.7 %
Broadcast, programming and operations4,313 7,538 (42.8)%
Other cost of revenues (exclusive of depreciation and
amortization shown separately below)
7,206 7,993 (9.8)%
Selling, general and administrative9,368 9,382 (0.1)%
Depreciation and amortization5,539 5,809 (4.6)%
Total Operating Expenses32,464 36,278 (10.5)%
Operating Income5,641 7,661 (26.4)%
Interest Expense1,722 1,870 (7.9)%
Equity in Net Income (Loss) of Affiliates501 52 — %
Other Income (Expense) — Net2,187 4,221 (48.2)%
Income Before Income Taxes6,607 10,064 (34.4)%
Income Tax Expense1,443 2,122 (32.0)%
Net Income5,164 7,942 (35.0)%
Less: Net Income Attributable to Noncontrolling Interest(354)(392)9.7 %
Net Income Attributable to AT&T$4,810 $7,550 (36.3)%
Less: Preferred Stock Dividends(48)(50)4.0 %
Net Income Attributable to Common Stock$4,762 $7,500 (36.5)%
Basic Earnings Per Share Attributable to Common Stock$0.66 $1.04 (36.5)%
Weighted Average Common Shares Outstanding (000,000)7,184 7,161 0.3 %
Diluted Earnings Per Share Attributable to Common Stock1
$0.65 $1.02 (36.3)%
Weighted Average Common Shares Outstanding with Dilution (000,000)1
7,556 7,482 1.0 %
1Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06
1


AT&T Inc.  
Financial Data  
Consolidated Balance Sheets
Dollars in millions
UnauditedMar. 31,Dec. 31,
20222021
Assets
Current Assets
Cash and cash equivalents$38,565 $21,169 
Accounts receivable – net of related allowances for credit loss of $788 and $77117,218 17,571 
Inventories3,153 3,464 
Prepaid and other current assets17,920 17,793 
Total current assets76,856 59,997 
Noncurrent Inventories and Theatrical Film and Television Production Costs19,803 18,983 
Property, Plant and Equipment – Net127,159 125,904 
Goodwill133,247 133,223 
Licenses – Net114,107 113,830 
Trademarks and Trade Names – Net21,781 21,938 
Distribution Networks – Net11,486 11,942 
Other Intangible Assets – Net11,452 11,783 
Investments in and Advances to Equity Affiliates5,943 7,274 
Operating Lease Right-Of-Use Assets23,941 24,180 
Deposits on Wireless Licenses9,129 — 
Other Assets22,291 22,568 
Total Assets$577,195 $551,622 
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year$27,333 $24,630 
Note payable to DIRECTV1,047 1,245 
Accounts payable and accrued liabilities46,845 50,661 
Advanced billings and customer deposits5,183 5,303 
Dividends payable2,086 3,749 
Total current liabilities82,494 85,588 
Long-Term Debt180,225 152,724 
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes65,963 65,226 
Postemployment benefit obligation11,294 12,649 
Operating lease liabilities20,917 21,261 
Other noncurrent liabilities29,746 30,223 
Noncurrent portion of note payable to DIRECTV 96 
Total deferred credits and other noncurrent liabilities127,920 129,455 
Stockholders’ Equity
Preferred stock — 
Common stock7,621 7,621 
Additional paid-in capital129,637 130,112 
Retained earnings45,041 42,350 
Treasury stock(16,553)(17,280)
Accumulated other comprehensive income3,290 3,529 
Noncontrolling interest17,520 17,523 
Total stockholders’ equity186,556 183,855 
Total Liabilities and Stockholders’ Equity$577,195 $551,622 
2


AT&T Inc.  
Financial Data  
Consolidated Statements of Cash Flows
Dollars in millions
UnauditedFirst Quarter
20222021
Operating Activities
Net income$5,164 $7,942 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization5,539 5,809 
Amortization of film and television costs3,009 2,886 
Distributed (undistributed) earnings from investments in equity affiliates26 (47)
Provision for uncollectible accounts460 321 
Deferred income tax expense932 1,848 
Net (gain) loss on investments, net of impairments93 (119)
Pension and postretirement benefit expense (credit)(937)(974)
Actuarial (gain) loss on pension and postretirement benefits(1,053)(2,844)
Changes in operating assets and liabilities:
Receivables(228)751 
Other current assets, inventories and theatrical film and television production costs(3,261)(3,518)
Accounts payable and other accrued liabilities(4,031)(3,060)
Equipment installment receivables and related sales541 1,190 
Deferred customer contract acquisition and fulfillment costs(259)244 
Postretirement claims and contributions(97)(343)
Other - net(166)(159)
Total adjustments568 1,985 
Net Cash Provided by Operating Activities5,732 9,927 
Investing Activities
Capital expenditures(4,748)(4,033)
Acquisitions, net of cash acquired(9,244)(22,884)
Dispositions11 51 
Distributions from DIRECTV in excess of cumulative equity in earnings1,315 — 
Other - net15 14 
Net Cash Used in Investing Activities(12,651)(26,852)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less2,285 687 
Issuance of other short-term borrowings2,593 15,485 
Repayment of other short-term borrowings(3,407)— 
Issuance of long-term debt30,296 9,097 
Repayment of long-term debt(802)(902)
Repayment of note payable to DIRECTV(294)— 
Payment of vendor financing(1,566)(1,690)
Purchase of treasury stock(197)(176)
Issuance of treasury stock26 63 
Dividends paid(3,749)(3,741)
Other - net(934)(340)
Net Cash Provided by Financing Activities24,251 18,483 
Net increase in cash and cash equivalents and restricted cash17,332 1,558 
Cash and cash equivalents and restricted cash beginning of year21,316 9,870 
Cash and Cash Equivalents and Restricted Cash End of Period$38,648 $11,428 

3


AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
UnauditedFirst QuarterPercent
20222021Change
Capital expenditures
Purchase of property and equipment$4,712 $3,972 18.6 %
Interest during construction - capital expenditures36 61 (41.0)%
Total Capital Expenditures$4,748 $4,033 17.7 %
Acquisition, net of cash acquired
Business acquisitions$ $— %
Spectrum acquisitions8,956 22,876 (60.8)%
Interest during construction - spectrum288 — — %
Total Acquisitions$9,244 $22,884 (59.6)%
Cash Paid for Programming and Produced Film/TV Content$5,149 $4,535 13.5 %
Dividends Declared per Common Share$0.28 $0.52 (46.2)%
End of Period Common Shares Outstanding (000,000)7,159 7,140 0.3 %
Debt Ratio52.7 %49.6 %310  BP
Total Employees203,160 228,470 (11.1)%
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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
UnauditedFirst QuarterPercent
20222021Change
Segment Operating Revenues
Mobility$20,075 $19,034 5.5 %
Business Wireline5,640 6,046 (6.7)%
Consumer Wireline3,161 3,098 2.0 %
Total Segment Operating Revenues28,876 28,178 2.5 %
Segment Operating Contribution
Mobility5,853 6,044 (3.2)%
Business Wireline859 1,080 (20.5)%
Consumer Wireline317 307 3.3 %
Total Segment Operating Contribution$7,029 $7,431 (5.4)%


Supplementary Operating Data
Subscribers and connections in thousands
UnauditedMarch 31,Percent
20222021Change
Broadband Connections
Broadband15,130 14,908 1.5 %
DSL403 527 (23.5)%
Total Broadband Connections15,533 15,435 0.6 %
Voice Connections
Retail Consumer Switched Access Lines5,956 6,988 (14.8)%
U-verse Consumer VoIP Connections3,227 3,684 (12.4)%
Total Retail Voice Connections9,183 10,672 (14.0)%
First QuarterPercent
20222021Change
Broadband Net Additions
Broadband56 90 (37.8)%
DSL(27)(39)30.8 %
Total Broadband Net Additions29 51 (43.1)%
5


Mobility

Mobility provides nationwide wireless service and equipment.
Mobility Results
Dollars in millions
UnauditedFirst QuarterPercent
20222021Change
Operating Revenues
Service$14,724 $14,048 4.8 %
Equipment5,351 4,986 7.3 %
Total Operating Revenues20,075 19,034 5.5 %
Operating Expenses
Operations and support12,163 10,976 10.8 %
Depreciation and amortization2,059 2,014 2.2 %
Total Operating Expenses14,222 12,990 9.5 %
Operating Income5,853 6,044 (3.2)%
Equity in Net Income (Loss) of Affiliates — — %
Operating Contribution$5,853 $6,044 (3.2)%
Operating Income Margin29.2 %31.8 %(260) BP
Supplementary Operating Data
Subscribers and connections in thousands
UnauditedMarch 31,Percent
20222021Change
Mobility Subscribers
Postpaid81,639 77,934 4.8 %
Postpaid phone67,518 64,752 4.3 %
Prepaid18,859 18,387 2.6 %
Reseller5,383 6,501 (17.2)%
Connected Devices90,735 83,286 8.9 %
Total Mobility Subscribers1
196,616 186,108 5.6 %
1Wireless subscribers at March 31, 2022 includes a reduction of 10.7 million subscribers and connections (899 postpaid, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8.8 million connected devices) resulting from our 3G network shutdown in February 2022.
First QuarterPercent
20222021Change
Mobility Net Additions
Postpaid Phone Net Additions691 595 16.1 %
Total Phone Net Additions804 802 0.2 %
Postpaid965 823 17.3 %
Prepaid116 279 (58.4)%
Reseller(17)(68)75.0 %
Connected Devices4,468 2,517 77.5 %
Total Mobility Net Additions5,532 3,551 55.8 %
Postpaid Churn0.94 %0.93 %1 BP
Postpaid Phone-Only Churn0.79 %0.76 %3 BP



6


Business Wireline

Business Wireline provides advanced IP-based services, as well as traditional voice and data services and related equipment to business customers.
Business Wireline Results
Dollars in millions
UnauditedFirst QuarterPercent
20222021Change
Operating Revenues
Service$5,478 $5,872 (6.7)%
Equipment162 174 (6.9)%
Total Operating Revenues5,640 6,046 (6.7)%
Operating Expenses  
Operations and support3,482 3,688 (5.6)%
Depreciation and amortization1,299 1,278 1.6 %
Total Operating Expenses4,781 4,966 (3.7)%
Operating Income859 1,080 (20.5)%
Equity in Net Income (Loss) of Affiliates — — %
Operating Contribution$859 $1,080 (20.5)%
Operating Income Margin15.2 %17.9 %(270) BP

7


Consumer Wireline

Consumer Wireline provides broadband, including fiber, and legacy telephony voice communication services to residential customers.
Consumer Wireline Results
Dollars in millions
UnauditedFirst QuarterPercent
20222021Change
Operating Revenues
Broadband$2,355 $2,205 6.8 %
Legacy voice and data services460 519 (11.4)%
Other service and equipment346 374 (7.5)%
Total Operating Revenues3,161 3,098 2.0 %
Operating Expenses
Operations and support2,078 2,029 2.4 %
Depreciation and amortization766 762 0.5 %
Total Operating Expenses2,844 2,791 1.9 %
Operating Income317 307 3.3 %
Equity in Net Income (Loss) of Affiliates — — %
Operating Contribution$317 $307 3.3 %
Operating Income Margin10.0 %9.9 %10  BP
 
Supplementary Operating Data
Subscribers and connections in thousands
UnauditedMarch 31,Percent
20222021Change
Broadband Connections
Total Broadband and DSL Connections14,148 14,146 — %
Broadband13,850 13,767 0.6 %
Fiber Broadband Connections6,281 5,186 21.1 %
Voice Connections
Retail Consumer Switched Access Lines2,324 2,740 (15.2)%
U-verse Consumer VoIP Connections2,628 3,096 (15.1)%
Total Retail Consumer Voice Connections4,952 5,836 (15.1)%
First QuarterPercent
20222021Change
Broadband Net Additions
Total Broadband and DSL Net Additions(12)46 — %
Broadband5 74 (93.2)%
Fiber Broadband Net Additions289 235 23.0 %
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
UnauditedFirst QuarterPercent
20222021Change
Operating Revenues
Wireless service$2,134 $1,969 8.4 %
Wireline service5,478 5,872 (6.7)%
Wireless equipment899 790 13.8 %
Wireline equipment162 174 (6.9)%
Total Operating Revenues8,673 8,805 (1.5)%
Operating Expenses
Operations and support5,608 5,519 1.6 %
Depreciation and amortization1,660 1,614 2.9 %
Total Operating Expenses7,268 7,133 1.9 %
Operating Income1,405 1,672 (16.0)%
Equity in Net Income (Loss) of Affiliates — — %
Operating Contribution$1,405 $1,672 (16.0)%
Operating Income Margin16.2 %19.0 %(280) BP



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WARNERMEDIA SEGMENT

The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. WarnerMedia content is distributed through basic networks, Direct-to-Consumer (DTC) or theatrical, TV content and games licensing. Segment results also include Xandr advertising and Otter Media Holdings, prior to our substantial disposal of the latter in the third quarter of 2021. Additional information is provided as part of the earnings material on the company’s Investor Relations website.

On April 8, 2022, we completed the WarnerMedia/Discovery transaction. With the separation and distribution of WarnerMedia, the WarnerMedia business will meet the criteria for discontinued operations for our second-quarter 2022 reporting.
Segment Results
Dollars in millions
UnauditedFirst QuarterPercent
20222021Change
Segment Operating Revenues
Subscription$3,997 $3,830 4.4 %
Content and other3,059 2,959 3.4 %
Advertising1,685 1,737 (3.0)%
Total Segment Operating Revenues8,741 8,526 2.5 %
Direct Costs
Programming3,976 3,774 5.4 %
Marketing1,096 850 28.9 %
Other869 813 6.9 %
Selling, general and administrative1,354 966 40.2 %
Depreciation and amortization127 163 (22.1)%
Total Operating Expenses7,422 6,566 13.0 %
Operating Income1,319 1,960 (32.7)%
Equity in Net Income (Loss) of Affiliates(13)70 — %
Total Segment Operating Contribution$1,306 $2,030 (35.7)%

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LATIN AMERICA SEGMENT

The Latin America segment provides entertainment and wireless service outside of the U.S. Our international subsidiaries conduct business in their local currency and operating results are converted to U.S. dollars using official exchange rates. The Latin America segment contains two business units: Mexico and Vrio, which was sold in November 2021.
Segment Results
Dollars in millions  
UnauditedFirst QuarterPercent
 20222021Change
Segment Operating Revenues   
Mexico$690 $631 9.4 %
Vrio 743 — %
Total Segment Operating Revenues690 1,374 (49.8)%
Segment Operating Contribution
Mexico(102)(134)23.9 %
Vrio (39)— %
Total Segment Operating Contribution$(102)$(173)41.0 %

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Mexico

Mexico provides wireless services and equipment to customers in Mexico.
Mexico Results
Dollars in millions
UnauditedFirst QuarterPercent
 20222021Change
Operating Revenues
Wireless service$490 $439 11.6 %
Wireless equipment200 192 4.2 %
Total Operating Revenues690 631 9.4 %
Operating Expenses
Operations and support631 620 1.8 %
Depreciation and amortization161 145 11.0 %
Total Operating Expenses792 765 3.5 %
Operating Income (Loss)(102)(134)23.9 %
Equity in Net Income (Loss) of Affiliates — — %
Operating Contribution$(102)$(134)23.9 %
Operating Income Margin(14.8)%(21.2)%640  BP
Supplementary Operating Data
Subscribers and connections in thousands
UnauditedMarch 31,Percent
 20222021Change
Mexico Wireless Subscribers
Postpaid4,810 4,725 1.8 %
Prepaid15,235 13,756 10.8 %
Reseller458 500 (8.4)%
Total Mexico Wireless Subscribers20,503 18,981 8.0 %
 First QuarterPercent
 20222021Change
Mexico Wireless Net Additions
Postpaid3 29 (89.7)%
Prepaid178 (2)— %
Reseller(40)11 — %
Total Mexico Wireless Net Additions141 38 — %
   

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SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended
Dollars in millions
Unaudited
March 31, 2022
RevenuesOperations
and Support
Expenses
EBITDADepreciation
and
Amortization
Operating
Income (Loss)
Equity in Net
Income (Loss) of
Affiliates
Operating
Contribution
Communications
Mobility$20,075 $12,163 $7,912 $2,059 $5,853 $ $5,853 
Business Wireline5,640 3,482 2,158 1,299 859  859 
Consumer Wireline3,161 2,078 1,083 766 317  317 
Total Communications28,876 17,723 11,153 4,124 7,029  7,029 
WarnerMedia8,741 7,295 1,446 127 1,319 (13)1,306 
Latin America - Mexico690 631 59 161 (102) (102)
Segment Total38,307 25,649 12,658 4,412 8,246 (13)8,233 
Corporate and Other
Corporate:
DTV stranded costs8 128 (120)134 (254) (254)
Parent administration
   support
(12)312 (324)4 (328)(8)(336)
Securitization fees16 82 (66) (66) (66)
Value portfolio118 24 94 9 85  85 
Total Corporate130 546 (416)147 (563)(8)(571)
Video     522 522 
Held-for-sale and other
reclassifications
29 16 13 9 4  4 
Reclassification of prior
service credits
 617 (617) (617) (617)
Merger & Significant Items 458 (458)971 (1,429) (1,429)
Eliminations and
consolidations
(361)(361)     
Total Corporate and Other(202)1,276 (1,478)1,127 (2,605)514 (2,091)
AT&T Inc.$38,105 $26,925 $11,180 $5,539 $5,641 $501 $6,142 
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Three Months Ended
Dollars in millions
Unaudited
March 31, 2021
RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)Equity in Net
Income (Loss) of
Affiliates
Operating Contribution
Communications
Mobility$19,034 $10,976 $8,058 $2,014 $6,044 $— $6,044 
Business Wireline6,046 3,688 2,358 1,278 1,080 — 1,080 
Consumer Wireline3,098 2,029 1,069 762 307 — 307 
Total Communications28,178 16,693 11,485 4,054 7,431 — 7,431 
WarnerMedia8,526 6,403 2,123 163 1,960 70 2,030 
Latin America
Mexico631 620 11 145 (134)— (134)
Vrio743 661 82 117 (35)(4)(39)
Total Latin America1,374 1,281 93 262 (169)(4)(173)
Segment Total38,078 24,377 13,701 4,479 9,222 66 9,288 
Corporate and Other
Corporate:
DTV stranded costs— — — — — — — 
Parent administration
   support
(12)334 (346)(352)(9)(361)
Securitization fees13 40 (27)— (27)— (27)
Value portfolio163 41 122 113 — 113 
Total Corporate164 415 (251)15 (266)(9)(275)
Video6,725 5,660 1,065 164 901 — 901 
Held-for-sale and other
reclassifications
262 228 34 20 14 (5)
Reclassification of prior
service credits
— 669 (669)— (669)— (669)
Merger & Significant Items— 61 (61)1,131 (1,192)— (1,192)
Eliminations and
consolidations
(1,290)(941)(349)— (349)— (349)
Total Corporate and Other5,861 6,092 (231)1,330 (1,561)(14)(1,575)
AT&T Inc.$43,939 $30,469 $13,470 $5,809 $7,661 $52 $7,713 

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