EX-99.3 3 ex99_2.htm AT&T INC. 3RD QUARTER 2019 DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES

Discussion and Reconciliation of Non-GAAP Measures

Supplemental Operational Measures
We provide a supplemental discussion of our business solutions operations that is calculated by combining our Mobility and Business Wireline operating units, and then adjusting to remove non-business operations. The following table presents a reconciliation of our supplemental Business Solutions results.

Supplemental Operational Measure
   
Third Quarter
   
September 30, 2019
    
September 30, 2018
   
Mobility
  
Business Wireline
  
Adjustments1
  
Business Solutions
    
Mobility
  
Business Wireline
  
Adjustments1
  
Business Solutions
Operating Revenues
                                  
  Wireless service
$
13,930
$
-
$
(11,921)
$
2,009
  
$
13,828
$
-
$
(11,971)
$
1,857
  Strategic and managed services
  
-
  
3,900
  
-
  
3,900
    
-
  
3,677
  
-
  
3,677
  Legacy voice and data services
  
-
  
2,252
  
-
  
2,252
    
-
  
2,602
  
-
  
2,602
  Other services and equipment
  
-
  
351
  
-
  
351
    
-
  
404
  
-
  
404
  Wireless equipment
  
3,771
  
-
  
(3,077)
  
694
    
3,907
  
-
  
(3,321)
  
586
Total Operating Revenues
  
17,701
  
6,503
  
(14,998)
  
9,206
    
17,735
  
6,683
  
(15,292)
  
9,126
                                   
Operating Expenses
                                  
  Operations and support
  
9,948
  
4,022
  
(8,327)
  
5,643
    
10,104
  
4,022
  
(8,551)
  
5,575
EBITDA
  
7,753
  
2,481
  
(6,671)
  
3,563
    
7,631
  
2,661
  
(6,741)
  
3,551
  Depreciation and amortization
  
2,011
  
1,271
  
(1,709)
  
1,573
    
2,057
  
1,187
  
(1,759)
  
1,485
Total Operating Expenses
  
11,959
  
5,293
  
(10,036)
  
7,216
    
12,161
  
5,209
  
(10,310)
  
7,060
Operating Income
  
5,742
  
1,210
  
(4,962)
  
1,990
    
5,574
  
1,474
  
(4,982)
  
2,066
Equity in Net Income (Loss) of Affiliates
  
-
  
(1)
  
-
  
(1)
    
1
  
(3)
  
(1)
  
(3)
Operating Contribution
$
5,742
$
1,209
$
(4,962)
$
1,989
  
$
5,575
$
1,471
$
(4,983)
$
2,063
1 Non-business wireless reported in the Communication segment under the Mobility business unit.
                                   
Supplemental Operational Measure
   
Nine-Month Period
   
September 30, 2019
    
September 30, 2018
   
Mobility
  
Business Wireline
  
Adjustments1
  
Business Solutions
    
Mobility
  
Business Wireline
  
Adjustments1
  
Business Solutions
Operating Revenues
                                  
  Wireless service
$
41,383
$
-
$
(35,482)
$
5,901
  
$
40,594
$
-
$
(35,154)
$
5,440
  Strategic and managed services
  
-
  
11,513
  
-
  
11,513
    
-
  
10,849
  
-
  
10,849
  Legacy voice and data services
  
-
  
6,973
  
-
  
6,973
    
-
  
8,176
  
-
  
8,176
  Other services and equipment
  
-
  
1,102
  
-
  
1,102
    
-
  
1,010
  
-
  
1,010
  Wireless equipment
  
10,973
  
-
  
(9,071)
  
1,902
    
11,371
  
-
  
(9,634)
  
1,737
Total Operating Revenues
  
52,356
  
19,588
  
(44,553)
  
27,391
    
51,965
  
20,035
  
(44,788)
  
27,212
                                   
Operating Expenses
                                  
  Operations and support
  
29,511
  
12,029
  
(24,770)
  
16,770
    
29,603
  
12,047
  
(24,926)
  
16,724
EBITDA
  
22,845
  
7,559
  
(19,783)
  
10,621
    
22,362
  
7,988
  
(19,862)
  
10,488
  Depreciation and amortization
  
6,027
  
3,735
  
(5,119)
  
4,643
    
6,218
  
3,520
  
(5,330)
  
4,408
Total Operating Expenses
  
35,538
  
15,764
  
(29,889)
  
21,413
    
35,821
  
15,567
  
(30,256)
  
21,132
Operating Income
  
16,818
  
3,824
  
(14,664)
  
5,978
    
16,144
  
4,468
  
(14,532)
  
6,080
Equity in Net Income (Loss) of Affiliates
  
(1)
  
-
  
1
  
-
    
-
  
(2)
  
-
  
(2)
Operating Contribution
$
16,817
$
3,824
$
(14,663)
$
5,978
  
$
16,144
$
4,466
$
(14,532)
$
6,078
1 Non-business wireless reported in the Communication segment under the Mobility business unit.