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Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information
NOTE 4. SEGMENT INFORMATION
 
Our segments are strategic business units that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We analyze our segments based on segment operating contribution, which consists of operating income, excluding acquisition-related costs and other significant items (as discussed below), and equity in net income (loss) of affiliates for investments managed within each segment. We have three reportable segments: (1) Communications, (2) WarnerMedia and (3) Latin America.
 
We have recast our segment results for all prior periods to include our prior Xandr segment within our WarnerMedia segment.
 
We also evaluate segment and business unit performance based on EBITDA and/or EBITDA margin, which is defined as operating contribution excluding equity in net income (loss) of affiliates and depreciation and amortization. We believe EBITDA to be a relevant and useful measurement to our investors as it is part of our internal management reporting and planning processes and it is an important metric that management uses to evaluate operating performance. EBITDA does not give effect to 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 revenues.
The Communications segment provides wireless and wireline telecom, video and broadband services to consumers located in the U.S. and businesses globally. This segment contains the following business units:
•Mobility provides nationwide wireless service and equipment.
•Entertainment Group provides video, including over-the-top (OTT) services, broadband and voice communications services primarily to residential customers. This segment also records advertising revenue.
•Business Wireline provides advanced IP-based services, as well as traditional voice and data services to business customers.
 
The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. Historical financial results from Xandr, previously a separate reportable segment, have been combined with the WarnerMedia segment within Eliminations and other. This segment contains the following:
•Turner primarily operates multichannel basic television networks and digital properties. Turner also sells advertising on its networks and digital properties.
•Home Box Office consists of premium pay television and OTT and streaming services domestically and premium pay, basic tier television and OTT services internationally, as well as content licensing and home entertainment.
•Warner Bros. primarily consists of the production, distribution and licensing of television programming and feature films, the distribution of home entertainment products and the production and distribution of games.
•Eliminations & Other includes the Xandr advertising business and Otter Media Holdings operations, and also removes transactions between the Turner, Home Box Office and Warner Bros. business units, including internal sales of content to the HBO Max platform that began in the fourth quarter of 2019 (see Note 5).
 
The Latin America segment provides entertainment and wireless services outside of the U.S. This segment contains the following business units:
•Vrio provides video services primarily to residential customers using satellite technology in Latin America and the Caribbean.
•Mexico provides wireless service and equipment to customers in Mexico.
 
Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes, and includes:
•Corporate, which consists of: (1) businesses no longer integral to our operations or which we no longer actively market, (2) corporate support functions, (3) impacts of corporate-wide decisions for which the individual operating segments are not being evaluated, and (4) the reclassification of the amortization of prior service credits, which we continue to report with segment operating expenses, to consolidated “Other income (expense) – net.”
•Acquisition-related items, which consists of items associated with the merger and integration of acquired businesses, including amortization of intangible assets
•Certain significant items, which includes (1) employee separation charges associated with voluntary and/or strategic offers, (2) losses resulting from abandonment of network assets and impairments, and (3) other items for which the segments are not being evaluated.
•Eliminations and consolidations, which (1) removes transactions involving dealings between our segments, including channel distribution between WarnerMedia and Communications, and (2) includes adjustments for our reporting of the advertising business.
 
“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 September 30, 2020
 RevenuesOperations
and Support
Expenses		EBITDADepreciation
and
Amortization		Operating
Income (Loss)		Equity in Net
Income (Loss) of
Affiliates		Segment
Contribution
Communications       
Mobility$17,894 $10,182 $7,712 $2,021 $5,691 $— $5,691 
Entertainment Group10,053 7,997 2,056 1,277 779 — 779 
Business Wireline6,340 3,833 2,507 1,329 1,178 — 1,178 
Total Communications34,287 22,012 12,275 4,627 7,648 — 7,648 
WarnerMedia
Turner3,176 2,088 1,088 69 1,019 (6)1,013 
Home Box Office1,781 1,694 87 27 60 — 60 
Warner Bros.2,411 1,973 438 43 395 (23)372 
Eliminations and other146 (171)317 32 285 40 325 
Total WarnerMedia7,514 5,584 1,930 171 1,759 11 1,770 
Latin America
Vrio753 675 78 126 (48)14 (34)
Mexico643 662 (19)124 (143)— (143)
Total Latin America1,396 1,337 59 250 (191)14 (177)
Segment Total43,197 28,933 14,264 5,048 9,216 $25 $9,241 
Corporate and Other      
Corporate431 1,012 (581)61 (642)  
Acquisition-related
items
— 38 (38)1,921 (1,959)  
Certain significant items— 113 (113)— (113)  
Eliminations and
consolidations
(1,288)(918)(370)— (370)  
AT&T Inc.$42,340 $29,178 $13,162 $7,030 $6,132   
For the three months ended September 30, 2019
 RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)Equity in Net
Income (Loss) of
Affiliates		Segment Contribution
Communications       
Mobility$17,701 $9,948 $7,753 $2,011 $5,742 $— $5,742 
Entertainment Group11,197 8,797 2,400 1,316 1,084 — 1,084 
Business Wireline6,503 4,022 2,481 1,271 1,210 — 1,210 
Total Communications35,401 22,767 12,634 4,598 8,036 — 8,036 
WarnerMedia
Turner3,007 1,460 1,547 68 1,479 10 1,489 
Home Box Office1,819 1,072 747 33 714 10 724 
Warner Bros.3,333 2,706 627 39 588 (25)563 
Eliminations and other191 91 100 25 75 20 95 
Total WarnerMedia8,350 5,329 3,021 165 2,856 15 2,871 
Latin America
Vrio1,013 851 162 162 — 13 13 
Mexico717 774 (57)122 (179)— (179)
Total Latin America1,730 1,625 105 284 (179)13 (166)
Segment Total45,481 29,721 15,760 5,047 10,713 $28 $10,741 
Corporate and Other       
Corporate407 703 (296)131 (427)  
Acquisition-related
items
— 190 (190)1,771 (1,961)  
Certain significant
items
— 39 (39)— (39)  
Eliminations and
consolidations
(1,300)(915)(385)— (385)  
AT&T Inc.$44,588 $29,738 $14,850 $6,949 $7,901   
For the nine months ended September 30, 2020
 RevenuesOperations
and Support
Expenses		EBITDADepreciation
and
Amortization		Operating
Income (Loss)		Equity in Net
Income (Loss) of
Affiliates		Segment
Contribution
Communications       
Mobility$52,445 $29,083 $23,362 $6,078 $17,284 $— $17,284 
Entertainment Group30,637 23,618 7,019 3,875 3,144 — 3,144 
Business Wireline19,046 11,563 7,483 3,948 3,535 — 3,535 
Total Communications102,128 64,264 37,864 13,901 23,963 — 23,963 
WarnerMedia
Turner9,326 5,145 4,181 207 3,974 — 3,974 
Home Box Office4,905 4,236 669 73 596 15 611 
Warner Bros.8,907 7,506 1,401 124 1,277 (50)1,227 
Eliminations and other(962)(882)(80)97 (177)65 (112)
Total WarnerMedia22,176 16,005 6,171 501 5,670 30 5,700 
Latin America
Vrio2,392 2,119 273 400 (127)26 (101)
Mexico1,826 1,914 (88)373 (461)— (461)
Total Latin America4,218 4,033 185 773 (588)26 (562)
Segment Total128,522 84,302 44,220 15,175 29,045 $56 $29,101 
Corporate and Other       
Corporate1,256 2,819 (1,563)241 (1,804)  
Acquisition-related
items
— 431 (431)6,122 (6,553)  
Certain significant
items
— 2,539 (2,539)— (2,539)  
Eliminations and
consolidations
(3,709)(2,709)(1,000)(1)(999)  
AT&T Inc.$126,069 $87,382 $38,687 $21,537 $17,150   
For the nine months ended September 30, 2019
 RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)Equity in Net
Income (Loss) of
Affiliates		Segment Contribution
Communications       
Mobility$52,356 $29,511 $22,845 $6,027 $16,818 $— $16,818 
Entertainment Group33,893 25,839 8,054 3,978 4,076 — 4,076 
Business Wireline19,588 12,029 7,559 3,735 3,824 — 3,824 
Total Communications105,837 67,379 38,458 13,740 24,718 — 24,718 
WarnerMedia
Turner9,860 5,813 4,047 167 3,880 46 3,926 
Home Box Office5,045 3,124 1,921 67 1,854 40 1,894 
Warner Bros.10,240 8,543 1,697 122 1,575 (19)1,556 
Eliminations and other845 438 407 69 338 70 408 
Total WarnerMedia25,990 17,918 8,072 425 7,647 137 7,784 
Latin America
Vrio3,112 2,598 514 496 18 25 43 
Mexico2,093 2,312 (219)372 (591)— (591)
Total Latin America5,205 4,910 295 868 (573)25 (548)
Segment Total137,032 90,207 46,825 15,033 31,792 $162 $31,954 
Corporate and Other       
Corporate1,290 2,129 (839)505 (1,344)  
Acquisition-related
items
(72)579 (651)5,719 (6,370)  
Certain significant
items
— 381 (381)— (381)  
Eliminations and
consolidations
(3,878)(2,814)(1,064)(1)(1,063)  
AT&T Inc.$134,372 $90,482 $43,890 $21,256 $22,634   
The following table is a reconciliation of Segment Contributions to “Income Before Income Taxes” reported on our consolidated statements of income:
 Three months ended
September 30,		Nine months ended
September 30,
 2020201920202019
Communications$7,648 $8,036 $23,963 $24,718 
WarnerMedia1,770 2,871 5,700 7,784 
Latin America(177)(166)(562)(548)
Segment Contribution9,241 10,741 29,101 31,954 
Reconciling Items:
Corporate and Other(642)(427)(1,804)(1,344)
Merger and integration items(38)(190)(431)(651)
Amortization of intangibles acquired(1,921)(1,771)(6,122)(5,719)
Asset impairments and abandonments(73)— (2,515)— 
Gain on spectrum transaction1
— — 900 — 
Employee separation costs and benefit-related losses(40)(39)(924)(381)
Segment equity in net income of affiliates(25)(28)(56)(162)
Eliminations and consolidations(370)(385)(999)(1,063)
AT&T Operating Income6,132 7,901 17,150 22,634 
Interest Expense1,972 2,083 6,031 6,373 
Equity in net income (loss) of affiliates5 3 (11)36 
Other income (expense) - net(231)(935)1,589 (967)
Income Before Income Taxes$3,934 $4,886 $12,697 $15,330 
1Included as a reduction of "Selling, general and administrative expenses" in the consolidated statement of income.

The following table presents intersegment revenues by segment:
Intersegment Reconciliation    
 Three months ended
September 30,		Nine months ended
September 30,
 2020201920202019
Intersegment Revenues    
Communications$3 $2 $7 $10 
WarnerMedia812 819 2,402 2,538 
Latin America— — — — 
Total Intersegment Revenues815 821 2,409 2,548 
Consolidations473 479 1,300 1,330 
Eliminations and consolidations$1,288 $1,300 $3,709 $3,878