AT&T INC. [TBC] Filings

10-Q 1 t-20240630.htm 10-Q AT&T INC. 2ND QUARTER 2024 FORM 10-Q INLINE t-20240630

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, 2024


☐			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 001-08610

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. 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
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


		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
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 or 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 the definitions 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.

☐

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 18, 2024, there were 7,170,243,877 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,
	2024		2023		2024		2023
Operating Revenues
Service	$	25,006	$	24,850	$	49,848	$	49,467
Equipment	4,791		5,067		9,977		10,589
Total operating revenues	29,797		29,917		59,825		60,056

Operating Expenses
Cost of revenues
Equipment	4,815		5,056		9,958		10,714

Other cost of revenues (exclusive of depreciation and amortization shown separately below)	6,627		6,771		13,438		13,444
Selling, general and administrative	7,043		7,009		14,064		14,184
Asset impairments and abandonments and restructuring	480		—		639		—
Depreciation and amortization	5,072		4,675		10,119		9,306
Total operating expenses	24,037		23,511		48,218		47,648
Operating Income	5,760		6,406		11,607		12,408
Other Income (Expense)
Interest expense	(1,699)		(1,608)		(3,423)		(3,316)
Equity in net income of affiliates	348		380		643		918
Other income (expense) — net	682		987		1,133		1,922
Total other income (expense)	(669)		(241)		(1,647)		(476)
Income Before Income Taxes	5,091		6,165		9,960		11,932
Income tax expense	1,142		1,403		2,260		2,717


Net Income	3,949		4,762		7,700		9,215
Less: Net Income Attributable to Noncontrolling Interest	(352)		(273)		(658)		(498)
Net Income Attributable to AT&T	$	3,597	$	4,489	$	7,042	$	8,717
Less: Preferred Stock Dividends	(51)		(52)		(101)		(104)
Net Income Attributable to Common Stock	$	3,546	$	4,437	$	6,941	$	8,613


Basic Earnings Per Share Attributable to Common Stock	$	0.49	$	0.61	$	0.96	$	1.19


Diluted Earnings Per Share Attributable to Common Stock	$	0.49	$	0.61	$	0.96	$	1.19
Weighted Average Number of Common Shares Outstanding — Basic (in millions)	7,196		7,180		7,194		7,174
Weighted Average Number of Common Shares Outstanding — with Dilution (in millions)	7,198		7,180		7,195		7,327

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,
	2024		2023		2024		2023
Net income	$	3,949	$	4,762	$	7,700	$	9,215
Other comprehensive income (loss), net of tax:
Foreign currency:
Translation adjustment, net of taxes of $(69), $88, $(61) and $140	(221)		264		(192)		457
Reclassification adjustment included in net income, net of taxes of $(14), $0, $(14) and $0	127		—		127		—
Securities:
Net unrealized gains (losses), net of taxes of $1, $(4), $(1) and $4	(7)		(11)		(17)		12
Reclassification adjustment included in net income, net of taxes of $1, $1, $3 and $2	4		2		10		5
Derivative instruments:
Net unrealized gains (losses), net of taxes of $(65), $45, $(16) and $2	(260)		176		(49)		24
Reclassification adjustment included in net income, net of taxes of $4, $3, $7 and $6	10		11		22		23

Defined benefit postretirement plans:

Amortization of net prior service credit included in net income, net of taxes of $(123), $(161),$(246) and $(321)	(380)		(491)		(761)		(982)

Other comprehensive income (loss)	(727)		(49)		(860)		(461)
Total comprehensive income	3,222		4,713		6,840		8,754
Less: Total comprehensive income attributable to noncontrolling interest	(352)		(273)		(658)		(498)
Total Comprehensive Income Attributable to AT&T	$	2,870	$	4,440	$	6,182	$	8,256

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED BALANCE SHEETS
Dollars in millions except per share amounts
	June 30,		December 31,
	2024		2023
Assets	(Unaudited)
Current Assets
Cash and cash equivalents	$	3,093	$	6,722
Accounts receivable – net of related allowances for credit loss of $443 and $499	9,686		10,289
Inventories	1,816		2,177
Prepaid and other current assets	15,273		17,270
Total current assets	29,868		36,458
Property, plant and equipment	342,607		339,891
Less: accumulated depreciation and amortization	(214,835)		(211,402)
Property, Plant and Equipment – Net	127,772		128,489
Goodwill – Net	67,854		67,854
Licenses – Net	127,279		127,219
Other Intangible Assets – Net	5,277		5,283
Investments in and Advances to Equity Affiliates	584		1,251
Operating Lease Right-Of-Use Assets	20,582		20,905

Other Assets	18,810		19,601
Total Assets	$	398,026	$	407,060
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	5,249	$	9,477

Accounts payable and accrued liabilities	31,173		35,852
Advanced billings and customer deposits	3,981		3,778
Dividends payable	2,026		2,020
Total current liabilities	42,429		51,127
Long-Term Debt	125,355		127,854
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	58,918		58,666
Postemployment benefit obligation	8,744		8,734
Operating lease liabilities	17,174		17,568
Other noncurrent liabilities	24,082		23,696
Total deferred credits and other noncurrent liabilities	108,918		108,664
Redeemable Noncontrolling Interest	1,977		1,973
Stockholders’ Equity
Preferred stock ($1 par value, 10,000,000 authorized at June 30, 2024 and December 31, 2023):
Series A (48,000 issued and outstanding at June 30, 2024 and December 31, 2023)	—		—
Series B (20,000 issued and outstanding at June 30, 2024 and December 31, 2023)	—		—
Series C (70,000 issued and outstanding at June 30, 2024 and December 31, 2023)	—		—
Common stock ($1 par value, 14,000,000,000 authorized at June 30, 2024 and December 31, 2023: issued 7,620,748,598 at June 30, 2024 and December 31, 2023)	7,621		7,621
Additional paid-in capital	111,515		114,519
Retained earnings (deficit)	2		(5,015)
Treasury stock (450,513,074 at June 30, 2024 and 470,685,237 at December 31, 2023, at cost)	(15,268)		(16,128)
Accumulated other comprehensive income	1,440		2,300
Noncontrolling interest	14,037		14,145
Total stockholders’ equity	119,347		117,442
Total Liabilities and Stockholders’ Equity	$	398,026	$	407,060

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in millions
(Unaudited)
	Six months ended
	June 30,
	2024		2023
Operating Activities
Net Income	$	7,700	$	9,215
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,119		9,306


Provision for uncollectible accounts	942		929
Deferred income tax expense	1,203		1,836
Net (gain) loss on investments, net of impairments	185		(160)
Pension and postretirement benefit expense (credit)	(941)		(1,341)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net	—		(74)
Asset impairments and abandonments and restructuring	639		—
Changes in operating assets and liabilities:
Receivables	130		1,342
Other current assets	1,149		1,106
Accounts payable and other accrued liabilities	(4,831)		(5,769)
Equipment installment receivables and related sales	(320)		(302)
Deferred customer contract acquisition and fulfillment costs	294		34
Postretirement claims and contributions	(93)		(556)
Other - net	464		1,034
Total adjustments	8,940		7,385
Net Cash Provided by Operating Activities	16,640		16,600
Investing Activities
Capital expenditures	(8,118)		(8,605)
Acquisitions, net of cash acquired	(270)		(515)
Dispositions	14		16
Distributions from DIRECTV in excess of cumulative equity in earnings	586		974
(Purchases), sales and settlements of securities and investments - net	1,147		(1,056)
Other - net	(336)		(55)


Net Cash Used in Investing Activities	(6,977)		(9,241)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less	2,686		(914)
Issuance of other short-term borrowings	491		5,406
Repayment of other short-term borrowings	(2,487)		(867)
Issuance of long-term debt	2		9,633
Repayment of long-term debt	(6,910)		(7,609)
Repayment of note payable to DIRECTV	—		(130)
Payment of vendor financing	(1,391)		(3,756)

Purchase of treasury stock	(159)		(189)
Issuance of treasury stock	—		3
Issuance of preferred interests in subsidiary	—		7,151
Redemption of preferred interests in subsidiary	—		(5,333)
Dividends paid	(4,133)		(4,097)

Other - net	(1,392)		(828)
Net Cash Used in Financing Activities	(13,293)		(1,530)






Net increase (decrease) in cash and cash equivalents and restricted cash	$	(3,630)	$	5,829
Cash and cash equivalents and restricted cash beginning of year	6,833		3,793
Cash and Cash Equivalents and Restricted Cash End of Period	$	3,203	$	9,622
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, 2024			June 30, 2023			June 30, 2024			June 30, 2023
	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		$	111,599		$	120,774		$	114,519		$	123,610


Preferred stock dividends		—			(36)			(98)			(134)
Common stock dividends ($0.2775, $0.2775, $0.5550 and $0.5550 per share)		(12)			(1,999)			(2,015)			(4,001)

Issuance of treasury stock		(3)			(3)			(416)			(368)
Share-based payments		83			97			(183)			(274)
Redemption or reclassification of interest held by noncontrolling owners		(152)			—			(292)			—
Balance at end of period		$	111,515		$	118,833		$	111,515		$	118,833
Retained Earnings (Deficit)
Balance at beginning of period		$	(1,570)		$	(15,187)		$	(5,015)		$	(19,415)


Net income attributable to AT&T		3,597			4,489			7,042			8,717
Preferred stock dividends		(36)			—			(36)			—
Common stock dividends ($0.2775, $0.0000, $0.2775 and $0.0000 per share)		(1,989)			—			(1,989)			—
Balance at end of period		$	2		$	(10,698)		$	2		$	(10,698)

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, 2024			June 30, 2023			June 30, 2024			June 30, 2023
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Treasury Stock
Balance at beginning of period	(451)	$	(15,277)	(472)	$	(16,166)	(471)	$	(16,128)	(493)	$	(17,082)
Repurchase and acquisition of common stock	—	(2)		—	(1)		(9)	(159)		(10)	(189)
Reissuance of treasury stock	—	11		1	9		29	1,019		32	1,113
Balance at end of period	(451)	$	(15,268)	(471)	$	(16,158)	(451)	$	(15,268)	(471)	$	(16,158)
Accumulated Other Comprehensive Income Attributable to AT&T, net of tax
Balance at beginning of period		$	2,167		$	2,354		$	2,300		$	2,766
Other comprehensive income (loss) attributable to AT&T		(727)			(49)			(860)			(461)
Balance at end of period		$	1,440		$	2,305		$	1,440		$	2,305
Noncontrolling Interest1
Balance at beginning of period		$	14,080		$	8,950		$	14,145		$	8,957


Net income attributable to noncontrolling interest		317			267			587			492
Issuance and acquisition by noncontrolling owners		—			5,181			—			5,181
Redemption of noncontrolling interest		(41)			—			(58)			—
Distributions		(319)			(226)			(637)			(458)

Balance at end of period		$	14,037		$	14,172		$	14,037		$	14,172
Total Stockholders' Equity at beginning of period		$	118,620		$	108,346		$	117,442		$	106,457
Total Stockholders' Equity at end of period		$	119,347		$	116,075		$	119,347		$	116,075
1Excludes redeemable noncontrolling interest

See Notes to Consolidated Financial Statements.

AT&T INC.

JUNE 30, 2024

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, 2023. 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.

NOTE 2. EARNINGS PER SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below:


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
Numerators
Numerator for basic earnings per share:







Net Income Attributable to Common Stock	$	3,546	$	4,437	$	6,941	$	8,613
Dilutive potential common shares:
Mobility preferred interests	—		—		—		72
Share-based payment	—		—		—		7
Numerator for diluted earnings per share	$	3,546	$	4,437	$	6,941	$	8,692
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding	7,196		7,180		7,194		7,174
Dilutive potential common shares:
Mobility preferred interests (in shares)	—		—		—		142
Share-based payment (in shares)	2		—		1		11
Denominator for diluted earnings per share	7,198		7,180		7,195		7,327

On April 5, 2023, we repurchased all our Series A Cumulative Perpetual Preferred Membership Interests in AT&T Mobility II LLC (Mobility preferred interests). For periods prior to repurchase, under Accounting Standards Update (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, 2024

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.


	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, 2023	$	(1,337)		$	(57)		$	(1,029)		$	4,723		$	2,300
Other comprehensive income (loss) before reclassifications	(192)			(17)			(49)			—			(258)
Amounts reclassified from accumulated OCI	127		1	10		1	22		2	(761)		3	(602)

Net other comprehensive income (loss)	(65)			(7)			(27)			(761)			(860)
Balance as of June 30, 2024	$	(1,402)		$	(64)		$	(1,056)		$	3,962		$	1,440

	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
1(Gains) losses are included in “Other income (expense) - net” in the consolidated statements of income.
2(Gains) losses are primarily included in “Interest expense” in the consolidated statements of income (see Note 7).
3The amortization of prior service credits associated with postretirement benefits are included in “Other income (expense) - net” in the consolidated statements of income (see Note 6).

NOTE 4. SEGMENT INFORMATION

Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We have two reportable segments: Communications and Latin America.

We also evaluate segment and business unit performance based on EBITDA and/or EBITDA margin, which is defined as operating income excluding depreciation and amortization. EBITDA is used as part of our management reporting and we believe EBITDA to be a relevant and useful measurement to our investors as it measures the cash generation potential of our business units. EBITDA does not give effect to depreciation and amortization expenses incurred in operating income nor is it burdened by cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA margin is EBITDA divided by total revenue.

The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units:

•Mobility provides nationwide wireless service and equipment.

•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. In the first quarter of 2024, we began

AT&T INC.

JUNE 30, 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

offering our fixed wireless access product that provides internet services delivered over our 5G wireless network where available.

•Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services to residential customers in select locations and our fixed wireless access product that provides home internet services delivered over our 5G wireless network where available. Consumer Wireline also provides legacy telephony voice communication services.

The Latin America segment provides wireless services and equipment in Mexico.

Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes.

Corporate includes:

•DTV-related retained costs, which are costs previously allocated to the Video business that were retained after the transaction, net of reimbursements from DIRECTV Entertainment Holdings, LLC (DIRECTV) under transition service agreements.

•Parent administration support, which includes costs borne by AT&T where the business units do not influence decision making.

•Securitization fees associated with our sales of receivables (see Note 8).

•Value portfolio, which are businesses no longer integral to our operations or which we no longer actively market.

Other items consist of:

•Certain significant items, which includes items associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments and restructuring, and other items for which the segments are not being evaluated.

“Interest expense” and “Other income (expense) – net” are managed only on a total company basis and are, accordingly, reflected only in consolidated results.


For the three months ended June 30, 2024
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	20,480	$	11,285	$	9,195	$	2,476	$	6,719
Business Wireline	4,755		3,267		1,488		1,386		102
Consumer Wireline	3,347		2,249		1,098		914		184
Total Communications	28,582		16,801		11,781		4,776		7,005
Latin America - Mexico	1,103		925		178		172		6
Segment Total	29,685		17,726		11,959		4,948		7,011
Corporate and Other
Corporate:
DTV-related retained costs	—		116		(116)		102		(218)
Parent administration support	—		443		(443)		2		(445)
Securitization fees	29		150		(121)		—		(121)
Value portfolio	83		25		58		5		53
Total Corporate	112		734		(622)		109		(731)
Certain significant items	—		505		(505)		15		(520)
Total Corporate and Other	112		1,239		(1,127)		124		(1,251)
AT&T Inc.	$	29,797	$	18,965	$	10,832	$	5,072	$	5,760

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JUNE 30, 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

For the three months ended June 30, 2023

Revenues

Operations and Support Expenses

EBITDA

Depreciation and Amortization

Operating Income (Loss)

Communications

Mobility

20,315

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