AT&T INC. [TBB] Filings

10-Q 1 t-20230630.htm 10-Q AT&T INC. 2ND QUARTER 2023 FORM 10-Q INLINE t-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


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

For the quarterly period ended June 30, 2023


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

For the transition period from to

Commission File Number 001-8610

AT&T INC.

Incorporated under the laws of the State of Delaware

I.R.S. Employer Identification Number 43-1301883

208 S. Akard St., Dallas, Texas 75202

Telephone Number: (210) 821-4105

Securities registered pursuant to Section 12(b) of the Act:


		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
Common Shares (Par Value $1.00 Per Share)	T	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A	T PRA	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C	T PRC	New York Stock Exchange
AT&T Inc. 2.750% Global Notes due May 19, 2023	T 23C	New York Stock Exchange
AT&T Inc. Floating Rate Global Notes due September 5, 2023	T 23D	New York Stock Exchange
AT&T Inc. 1.050% Global Notes due September 5, 2023	T 23E	New York Stock Exchange
AT&T Inc. 1.300% Global Notes due September 5, 2023	T 23A	New York Stock Exchange
AT&T Inc. 1.950% Global Notes due September 15, 2023	T 23F	New York Stock Exchange
AT&T Inc. 2.400% Global Notes due March 15, 2024	T 24A	New York Stock Exchange
AT&T Inc. Floating Rate Global Notes due March 6, 2025	T 25A	New York Stock Exchange
AT&T Inc. 3.550% Global Notes due November 18, 2025	T 25B	New York Stock Exchange
AT&T Inc. 3.500% Global Notes due December 17, 2025	T 25	New York Stock Exchange
AT&T Inc. 0.250% Global Notes due March 4, 2026	T 26E	New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 5, 2026	T 26D	New York Stock Exchange
AT&T Inc. 2.900% Global Notes due December 4, 2026	T 26A	New York Stock Exchange
AT&T Inc. 1.600% Global Notes due May 19, 2028	T 28C	New York Stock Exchange


		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
AT&T Inc. 2.350% Global Notes due September 5, 2029	T 29D	New York Stock Exchange
AT&T Inc. 4.375% Global Notes due September 14, 2029	T 29B	New York Stock Exchange
AT&T Inc. 2.600% Global Notes due December 17, 2029	T 29A	New York Stock Exchange
AT&T Inc. 0.800% Global Notes due March 4, 2030	T 30B	New York Stock Exchange
AT&T Inc. 3.950% Global Notes due April 30, 2031	T 31F	New York Stock Exchange
AT&T Inc. 2.050% Global Notes due May 19, 2032	T 32A	New York Stock Exchange
AT&T Inc. 3.550% Global Notes due December 17, 2032	T 32	New York Stock Exchange
AT&T Inc. 5.200% Global Notes due November 18, 2033	T 33	New York Stock Exchange
AT&T Inc. 3.375% Global Notes due March 15, 2034	T 34	New York Stock Exchange
AT&T Inc. 4.300% Global Notes due November 18, 2034	T 34C	New York Stock Exchange
AT&T Inc. 2.450% Global Notes due March 15, 2035	T 35	New York Stock Exchange
AT&T Inc. 3.150% Global Notes due September 4, 2036	T 36A	New York Stock Exchange
AT&T Inc. 2.600% Global Notes due May 19, 2038	T 38C	New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 14, 2039	T 39B	New York Stock Exchange
AT&T Inc. 7.000% Global Notes due April 30, 2040	T 40	New York Stock Exchange
AT&T Inc. 4.250% Global Notes due June 1, 2043	T 43	New York Stock Exchange
AT&T Inc. 4.875% Global Notes due June 1, 2044	T 44	New York Stock Exchange
AT&T Inc. 4.000% Global Notes due June 1, 2049	T 49A	New York Stock Exchange
AT&T Inc. 4.250% Global Notes due March 1, 2050	T 50	New York Stock Exchange
AT&T Inc. 3.750% Global Notes due September 1, 2050	T 50A	New York Stock Exchange
AT&T Inc. 5.350% Global Notes due November 1, 2066	TBB	New York Stock Exchange
AT&T Inc. 5.625% Global Notes due August 1, 2067	TBC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


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

Yes ☐ No ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

At July 24, 2023, there were 7,149 million common shares outstanding.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements


AT&T INC.
CONSOLIDATED STATEMENTS OF INCOME
Dollars in millions except per share amounts
(Unaudited)
	Three months ended				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Operating Revenues
Service	$	24,850	$	24,268	$	49,467	$	48,267
Equipment	5,067		5,375		10,589		11,088
Total operating revenues	29,917		29,643		60,056		59,355

Operating Expenses
Cost of revenues
Equipment	5,056		5,534		10,714		11,570

Other cost of revenues (exclusive of depreciation and amortization shown separately below)	6,771		6,807		13,444		13,506
Selling, general and administrative	7,009		7,265		14,184		14,243
Asset impairments and abandonments and restructuring	—		631		—		631
Depreciation and amortization	4,675		4,450		9,306		8,912
Total operating expenses	23,511		24,687		47,648		48,862
Operating Income	6,406		4,956		12,408		10,493
Other Income (Expense)
Interest expense	(1,608)		(1,502)		(3,316)		(3,128)
Equity in net income of affiliates	380		504		918		1,025
Other income (expense) — net	987		2,302		1,922		4,459
Total other income (expense)	(241)		1,304		(476)		2,356
Income from Continuing Operations Before Income Taxes	6,165		6,260		11,932		12,849
Income tax expense on continuing operations	1,403		1,509		2,717		2,949
Income from Continuing Operations	4,762		4,751		9,215		9,900
Income (loss) from discontinued operations, net of tax	—		(214)		—		(199)
Net Income	4,762		4,537		9,215		9,701
Less: Net Income Attributable to Noncontrolling Interest	(273)		(380)		(498)		(734)
Net Income Attributable to AT&T	$	4,489	$	4,157	$	8,717	$	8,967
Less: Preferred Stock Dividends	(52)		(52)		(104)		(100)
Net Income Attributable to Common Stock	$	4,437	$	4,105	$	8,613	$	8,867
Basic Earnings Per Share from continuing operations	$	0.61	$	0.60	$	1.19	$	1.26
Basic Earnings (Loss) Per Share from discontinued operations	$	—	$	(0.03)	$	—	$	(0.03)
Basic Earnings Per Share Attributable to Common Stock	$	0.61	$	0.57	$	1.19	$	1.23
Diluted Earnings Per Share from continuing operations	$	0.61	$	0.59	$	1.19	$	1.23
Diluted Earnings (Loss) Per Share from discontinued operations	$	—	$	(0.03)	$	—	$	(0.02)
Diluted Earnings Per Share Attributable to Common Stock	$	0.61	$	0.56	$	1.19	$	1.21
Weighted Average Number of Common Shares Outstanding — Basic (in millions)	7,180		7,169		7,174		7,176
Weighted Average Number of Common Shares Outstanding — with Dilution (in millions)	7,180		7,611		7,327		7,584

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Dollars in millions
(Unaudited)
	Three months ended				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Net income	$	4,762	$	4,537	$	9,215	$	9,701
Other comprehensive income (loss), net of tax:
Foreign currency:
Translation adjustment, net of taxes of $88, $58, $140 and $63	264		229		457		248
Distribution of WarnerMedia, net of taxes of $0, $(38), $0 and $(38)	—		(170)		—		(170)
Securities:
Net unrealized gains (losses), net of taxes of $(4), $(14), $4 and $(37)	(11)		(40)		12		(109)
Reclassification adjustment included in net income, net of taxes of $1, $1, $2 and $2	2		3		5		6
Derivative instruments:
Net unrealized gains (losses), net of taxes of $45, $(172), $2 and $(103)	176		(603)		24		(345)
Reclassification adjustment included in net income, net of taxes of $3, $15, $6 and $19	11		58		23		73
Distribution of WarnerMedia, net of taxes of $0, $(12), $0 and $(12)	—		(24)		—		(24)
Defined benefit postretirement plans:

Amortization of net prior service credit included in net income, net of taxes of $(161), $(152), $(321) and $(304)	(491)		(461)		(982)		(926)
Distribution of WarnerMedia, net of taxes of $0, $5, $0 and $5	—		25		—		25
Other comprehensive income (loss)	(49)		(983)		(461)		(1,222)
Total comprehensive income	4,713		3,554		8,754		8,479
Less: Total comprehensive income attributable to noncontrolling interest	(273)		(380)		(498)		(734)
Total Comprehensive Income Attributable to AT&T	$	4,440	$	3,174	$	8,256	$	7,745

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED BALANCE SHEETS
Dollars in millions except per share amounts
(Unaudited)
	June 30,		December 31,
	2023		2022
Assets
Current Assets
Cash and cash equivalents	$	9,528	$	3,701
Accounts receivable – net of related allowances for credit loss of $528 and $588	9,304		11,466
Inventories	2,348		3,123
Prepaid and other current assets	15,492		14,818
Total current assets	36,672		33,108
Property, plant and equipment	334,206		329,630
Less: accumulated depreciation and amortization	(205,423)		(202,185)
Property, Plant and Equipment – Net	128,783		127,445
Goodwill – Net	67,854		67,895
Licenses – Net	125,049		124,092
Other Intangible Assets – Net	5,339		5,354
Investments in and Advances to Equity Affiliates	2,779		3,533
Operating Lease Right-Of-Use Assets	21,581		21,814

Other Assets	20,396		19,612
Total Assets	$	408,453	$	402,853
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	15,268	$	7,467
Note payable to DIRECTV	—		130
Accounts payable and accrued liabilities	33,038		42,644
Advanced billings and customer deposits	3,833		3,918
Dividends payable	2,020		2,014
Total current liabilities	54,159		56,173
Long-Term Debt	128,012		128,423
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	57,972		57,032
Postemployment benefit obligation	6,696		7,260
Operating lease liabilities	18,311		18,659
Other noncurrent liabilities	25,258		28,849
Total deferred credits and other noncurrent liabilities	108,237		111,800
Redeemable Noncontrolling Interest	1,970		—
Stockholders’ Equity
Preferred stock ($1 par value, 10,000,000 authorized at June 30, 2023 and December 31, 2022):
Series A (48,000 issued and outstanding at June 30, 2023 and December 31, 2022)	—		—
Series B (20,000 issued and outstanding at June 30, 2023 and December 31, 2022)	—		—
Series C (70,000 issued and outstanding at June 30, 2023 and December 31, 2022)	—		—
Common stock ($1 par value, 14,000,000,000 authorized at June 30, 2023 and December 31, 2022: issued 7,620,748,598 at June 30, 2023 and December 31, 2022)	7,621		7,621
Additional paid-in capital	118,833		123,610
Retained (deficit) earnings	(10,698)		(19,415)
Treasury stock (471,323,301 at June 30, 2023 and 493,156,816 at December 31, 2022, at cost)	(16,158)		(17,082)
Accumulated other comprehensive income	2,305		2,766
Noncontrolling interest	14,172		8,957
Total stockholders’ equity	116,075		106,457
Total Liabilities and Stockholders’ Equity	$	408,453	$	402,853

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in millions
(Unaudited)
	Six months ended
	June 30,
	2023		2022
Operating Activities
Income from continuing operations	$	9,215	$	9,900
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization	9,306		8,912


Provision for uncollectible accounts	929		870
Deferred income tax expense	1,836		2,324
Net (gain) loss on investments, net of impairments	(160)		333
Pension and postretirement benefit expense (credit)	(1,341)		(1,735)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net	(74)		(2,398)
Asset impairments and abandonments and restructuring	—		631
Changes in operating assets and liabilities:
Receivables	1,342		1,292
Other current assets	1,106		11
Accounts payable and other accrued liabilities	(5,769)		(3,905)
Equipment installment receivables and related sales	(302)		342
Deferred customer contract acquisition and fulfillment costs	34		(506)
Postretirement claims and contributions	(556)		(186)
Other - net	1,034		(515)
Total adjustments	7,385		5,470
Net Cash Provided by Operating Activities from Continuing Operations	16,600		15,370
Investing Activities
Capital expenditures	(8,605)		(9,476)
Acquisitions, net of cash acquired	(515)		(9,570)
Dispositions	16		22
Distributions from DIRECTV in excess of cumulative equity in earnings	974		1,638
(Purchases), sales and settlements of securities and investments - net	(1,056)		73
Other - net	(55)		2


Net Cash Used in Investing Activities from Continuing Operations	(9,241)		(17,311)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less	(914)		172
Issuance of other short-term borrowings	5,406		2,593
Repayment of other short-term borrowings	(867)		(15,613)
Issuance of long-term debt	9,633		479
Repayment of long-term debt	(7,609)		(24,213)
Repayment of note payable to DIRECTV	(130)		(722)
Payment of vendor financing	(3,756)		(3,337)

Purchase of treasury stock	(189)		(872)
Issuance of treasury stock	3		28
Issuance of preferred interests in subsidiary	7,151		—
Redemption of preferred interests in subsidiary	(5,333)		—
Dividends paid	(4,097)		(5,835)

Other - net	(828)		(2,144)
Net Cash Used in Financing Activities from Continuing Operations	(1,530)		(49,464)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations	5,829		(51,405)
Cash flows from Discontinued Operations:
Cash (used in) provided by operating activities	—		(3,731)
Cash provided by (used in) investing activities	—		872
Cash provided by (used in) financing activities	—		37,065
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations	—		34,206
Net increase (decrease) in cash and cash equivalents and restricted cash	$	5,829	$	(17,199)
Cash and cash equivalents and restricted cash beginning of year	3,793		21,316
Cash and Cash Equivalents and Restricted Cash End of Period	$	9,622	$	4,117
See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Dollars and shares in millions except per share amounts
(Unaudited)
	Three months ended						Six months ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Preferred Stock - Series A
Balance at beginning of period	—	$	—	—	$	—	—	$	—	—	$	—

Balance at end of period	—	$	—	—	$	—	—	$	—	—	$	—
Preferred Stock - Series B
Balance at beginning of period	—	$	—	—	$	—	—	$	—	—	$	—

Balance at end of period	—	$	—	—	$	—	—	$	—	—	$	—
Preferred Stock - Series C
Balance at beginning of period	—	$	—	—	$	—	—	$	—	—	$	—

Balance at end of period	—	$	—	—	$	—	—	$	—	—	$	—
Common Stock
Balance at beginning of period	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621

Balance at end of period	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621
Additional Paid-In Capital
Balance at beginning of period		$	120,774		$	129,637		$	123,610		$	130,112
Distribution of WarnerMedia		—			(6,832)			—			(6,832)

Preferred stock dividends		(36)			—			(134)			—
Common stock dividends ($0.2775 and $0.5550 per share in 2023)		(1,999)			—			(4,001)			—

Issuance of treasury stock		(3)			(18)			(368)			(144)
Share-based payments		97			63			(274)			(286)

Balance at end of period		$	118,833		$	122,850		$	118,833		$	122,850
Retained (Deficit) Earnings
Balance at beginning of period		$	(15,187)		$	45,041		$	(19,415)		$	42,350


Net income attributable to AT&T		4,489			4,157			8,717			8,967
Distribution of WarnerMedia		—			(45,041)			—			(45,041)
Preferred stock dividends		—			(36)			—			(135)
Common stock dividends ($0.2775 and $0.5550 per share in 2022)		—			(1,993)			—			(4,013)
Balance at end of period		$	(10,698)		$	2,128		$	(10,698)		$	2,128

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - continued
Dollars and shares in millions except per share amounts
(Unaudited)
	Three months ended						Six months ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Treasury Stock
Balance at beginning of period	(472)	$	(16,166)	(462)	$	(16,553)	(493)	$	(17,082)	(480)	$	(17,280)
Repurchase and acquisition of common stock	—	(1)		(35)	(675)		(10)	(189)		(43)	(872)
Reissuance of treasury stock	1	9		2	68		32	1,113		28	992
Balance at end of period	(471)	$	(16,158)	(495)	$	(17,160)	(471)	$	(16,158)	(495)	$	(17,160)
Accumulated Other Comprehensive Income Attributable to AT&T, net of tax
Balance at beginning of period		$	2,354		$	3,290		$	2,766		$	3,529
Other comprehensive income attributable to AT&T		(49)			(983)			(461)			(1,222)
Balance at end of period		$	2,305		$	2,307		$	2,305		$	2,307
Noncontrolling Interest
Balance at beginning of period		$	8,950		$	17,520		$	8,957		$	17,523


Net income attributable to noncontrolling interest		267			380			492			734
Issuance and acquisition by noncontrolling owners		5,181			—			5,181			—
Redemption of noncontrolling interest		—			—			—			(16)
Distributions		(226)			(339)			(458)			(680)


Balance at end of period		$	14,172		$	17,561		$	14,172		$	17,561
Total Stockholders' Equity at beginning of period		$	108,346		$	186,556		$	106,457		$	183,855
Total Stockholders' Equity at end of period		$	116,075		$	135,307		$	116,075		$	135,307

See Notes to Consolidated Financial Statements.

AT&T INC.

JUNE 30, 2023

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Dollars in millions except per share amounts

NOTE 1. PREPARATION OF INTERIM FINANCIAL STATEMENTS

Basis of Presentation Throughout this document, AT&T Inc. is referred to as “we,” “AT&T” or the “Company.” The consolidated financial statements include the accounts of the Company and subsidiaries and affiliates which we control. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this document in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The results for the interim periods are not necessarily indicative of those for the full year. These consolidated financial statements include all adjustments that are necessary to present fairly the results for the presented interim periods, consisting of normal recurring accruals and other items.

All significant intercompany transactions are eliminated in the consolidation process. Investments in subsidiaries and partnerships which we do not control but have significant influence are accounted for under the equity method. Earnings from certain investments accounted for using the equity method are included in our results on a one quarter lag. We also record our proportionate share of our equity method investees’ other comprehensive income (OCI) items, including translation adjustments.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions, including estimates of fair value, probable losses and expenses, that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain prior period amounts have been conformed to the current period’s presentation. Unless otherwise noted, the information in Notes 1 through 12 refer only to our continuing operations and do not include discussion of balances or activity of WarnerMedia, Vrio, Xandr and Playdemic Ltd., which were part of discontinued operations.

Accounting Policies, Adopted and Pending Accounting Standards and Other Changes

Supplier Finance Obligations As of January 1, 2023, we adopted, with retrospective application, the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” (ASU 2022-04), which establishes interim and annual reporting disclosure requirements about a company’s supplier finance programs for its purchase of goods and services. Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. The annual rollforward requirement becomes effective for annual periods beginning after December 15, 2023, with prospective application. In the year of adoption, the disclosure of payment and other key terms under the programs and outstanding balances under the obligations also applies to interim reporting dates.

AT&T INC.

JUNE 30, 2023

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

NOTE 2. EARNINGS PER SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings per share for the three months and six months ended June 30, 2023 and 2022, is shown in the table below:


	Three months ended				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Numerators
Numerator for basic earnings per share:
Income from continuing operations, net of tax	$	4,762	$	4,751	$	9,215	$	9,900
Net income from continuing operations attributable to noncontrolling interests	(273)		(380)		(498)		(734)
Preferred Stock Dividends	(52)		(52)		(104)		(100)
Income from continuing operations attributable to common stock	4,437		4,319		8,613		9,066


Income (loss) from discontinued operations attributable to common stock	—		(214)		—		(199)
Net Income Attributable to Common Stock	$	4,437	$	4,105	$	8,613	$	8,867
Dilutive potential common shares:
Mobility preferred interests	—		140		72		280
Share-based payment	—		3		7		9
Numerator for diluted earnings per share	$	4,437	$	4,248	$	8,692	$	9,156
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding	7,180		7,169		7,174		7,176
Dilutive potential common shares:
Mobility preferred interests (in shares)	—		399		142		368
Share-based payment (in shares)	—		43		11		40
Denominator for diluted earnings per share	7,180		7,611		7,327		7,584

On April 5, 2023, we repurchased all our Series A Cumulative Perpetual Preferred Membership Interests in AT&T Mobility II LLC (Mobility preferred interests) (see Note 12). For periods prior to repurchase, under ASU No. 2020-06, “Debt—Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (ASU 2020-06), the ability to settle the Mobility preferred interests in stock was reflected in our diluted earnings per share calculation.

AT&T INC.

JUNE 30, 2023

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

NOTE 3. OTHER COMPREHENSIVE INCOME

Changes in the balances of each component included in accumulated OCI are presented below. All amounts are net of tax and exclude noncontrolling interest.


	Foreign Currency Translation Adjustment			Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivative Instruments			Defined Benefit Postretirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2022	$	(1,800)		$	(90)		$	(1,998)		$	6,654		$	2,766
Other comprehensive income (loss) before reclassifications	457			12			24			—			493
Amounts reclassified from accumulated OCI	—		1	5		1	23		2	(982)		3	(954)

Net other comprehensive income (loss)	457			17			47			(982)			(461)
Balance as of June 30, 2023	$	(1,343)		$	(73)		$	(1,951)		$	5,672		$	2,305

	Foreign Currency Translation Adjustment			Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivative Instruments			Defined Benefit Postretirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2021	$	(1,964)		$	45		$	(1,422)		$	6,870		$	3,529
Other comprehensive income (loss) before reclassifications	248			(109)			(345)			—			(206)
Amounts reclassified from accumulated OCI	—		1	6		1	73		2	(926)		3	(847)
Distribution of WarnerMedia	(170)			—			(24)

AT&T INC. [TBB] Filings
AT&T INC. [T] Filings
AT&T INC. [TBC] Filings
AT&T INC. [T-PA] Filings
AT&T INC. [T-PC] Filings
10-Q	[2023-07-27]
10-Q	[2023-05-01]
10-K	[2023-02-13]
10-Q	[2022-11-03]
10-Q	[2022-08-04]
10-Q	[2022-05-03]
10-K	[2022-02-16]
10-Q	[2021-11-04]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-02-25]
10-Q	[2020-11-05]
10-Q	[2020-08-05]
10-Q	[2020-05-06]
10-K	[2020-02-20]
10-Q	[2019-11-05]
10-Q	[2019-08-05]
10-Q	[2019-05-06]
10-K	[2019-02-20]
10-Q	[2018-11-02]
10-Q	[2018-08-02]
10-Q	[2018-05-03]
10-K	[2018-02-20]
10-Q	[2017-11-03]
10-Q	[2017-08-03]
10-Q	[2017-05-04]
10-K	[2017-02-17]
10-Q	[2016-11-03]
10-Q	[2016-08-04]
10-Q	[2016-05-05]
10-K	[2016-02-18]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-05]
10-K	[2015-02-20]
10-Q	[2014-11-10]
10-Q	[2014-08-01]
10-Q	[2014-05-02]
10-K	[2014-02-21]
10-Q	[2013-11-01]
10-Q	[2013-08-02]
10-Q	[2013-05-03]
10-K	[2013-02-22]
10-Q	[2012-11-02]
10-Q	[2012-08-03]
10-Q	[2012-05-04]
10-K	[2012-02-24]

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AT&T INC. [T] Filings

AT&T INC. [TBC] Filings

AT&T INC. [T-PA] Filings

AT&T INC. [T-PC] Filings