(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
(d) | Exhibits | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
AT&T INC. | |||||
Date: July 22, 2021 | By: /s/ Debra L. Dial . Debra L. Dial Senior Vice President and Controller |
AT&T Inc. | ||||||||||||||||||||
Financial Data | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 38,956 | $ | 37,051 | 5.1 | % | $ | 77,460 | $ | 75,934 | 2.0 | % | ||||||||
Equipment | 5,089 | 3,899 | 30.5 | % | 10,524 | 7,795 | 35.0 | % | ||||||||||||
Total Operating Revenues | 44,045 | 40,950 | 7.6 | % | 87,984 | 83,729 | 5.1 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||
Equipment | 5,341 | 3,978 | 34.3 | % | 10,897 | 8,070 | 35.0 | % | ||||||||||||
Broadcast, programming and operations | 7,603 | 5,889 | 29.1 | % | 15,141 | 12,643 | 19.8 | % | ||||||||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | 8,155 | 8,116 | 0.5 | % | 16,148 | 16,458 | (1.9) | % | ||||||||||||
Selling, general and administrative | 9,361 | 9,831 | (4.8) | % | 18,743 | 18,591 | 0.8 | % | ||||||||||||
Asset impairments and abandonments | 4,555 | 2,319 | 96.4 | % | 4,555 | 2,442 | 86.5 | % | ||||||||||||
Depreciation and amortization | 5,761 | 7,285 | (20.9) | % | 11,570 | 14,507 | (20.2) | % | ||||||||||||
Total Operating Expenses | 40,776 | 37,418 | 9.0 | % | 77,054 | 72,711 | 6.0 | % | ||||||||||||
Operating Income | 3,269 | 3,532 | (7.4) | % | 10,930 | 11,018 | (0.8) | % | ||||||||||||
Interest Expense | 1,684 | 2,041 | (17.5) | % | 3,554 | 4,059 | (12.4) | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | 41 | (10) | — | % | 93 | (16) | — | % | ||||||||||||
Other Income (Expense) — Net | 999 | 1,017 | (1.8) | % | 5,220 | 1,820 | — | % | ||||||||||||
Income Before Income Taxes | 2,625 | 2,498 | 5.1 | % | 12,689 | 8,763 | 44.8 | % | ||||||||||||
Income Tax Expense | 751 | 935 | (19.7) | % | 2,873 | 2,237 | 28.4 | % | ||||||||||||
Net Income | 1,874 | 1,563 | 19.9 | % | 9,816 | 6,526 | 50.4 | % | ||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (304) | (282) | (7.8) | % | (696) | (635) | (9.6) | % | ||||||||||||
Net Income Attributable to AT&T | $ | 1,570 | $ | 1,281 | 22.6 | % | $ | 9,120 | $ | 5,891 | 54.8 | % | ||||||||
Less: Preferred Stock Dividends | (56) | (52) | (7.7) | % | (106) | (84) | (26.2) | % | ||||||||||||
Net Income Attributable to Common Stock | $ | 1,514 | $ | 1,229 | 23.2 | % | $ | 9,014 | $ | 5,807 | 55.2 | % | ||||||||
Basic Earnings Per Share Attributable to Common Stock | $ | 0.21 | $ | 0.17 | 23.5 | % | $ | 1.25 | $ | 0.81 | 54.3 | % | ||||||||
Weighted Average Common Shares Outstanding (000,000) | 7,168 | 7,145 | 0.3 | % | 7,165 | 7,166 | — | % | ||||||||||||
Diluted Earnings Per Share Attributable to Common Stock | $ | 0.21 | $ | 0.17 | 23.5 | % | $ | 1.25 | $ | 0.81 | 54.3 | % | ||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,200 | 7,170 | 0.4 | % | 7,194 | 7,192 | — | % |
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Balance Sheets | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Jun. 30, | Dec. 31, | |||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 11,869 | $ | 9,740 | |||||||
Accounts receivable – net of related allowances for credit loss of $843 and $1,221 | 15,771 | 20,215 | |||||||||
Inventories | 2,810 | 3,695 | |||||||||
Prepaid and other current assets | 32,419 | 18,358 | |||||||||
Total current assets | 62,869 | 52,008 | |||||||||
Noncurrent Inventories and Theatrical Film and Television Production Costs | 16,271 | 14,752 | |||||||||
Property, Plant and Equipment – Net | 123,591 | 127,315 | |||||||||
Goodwill | 134,626 | 135,259 | |||||||||
Licenses – Net | 87,962 | 93,840 | |||||||||
Trademarks and Trade Names – Net | 22,276 | 23,297 | |||||||||
Distribution Networks – Net | 12,875 | 13,793 | |||||||||
Other Intangible Assets – Net | 12,736 | 15,386 | |||||||||
Investments in and Advances to Equity Affiliates | 1,853 | 1,780 | |||||||||
Operating Lease Right-Of-Use Assets | 24,390 | 24,714 | |||||||||
Deposits on Wireless Licenses | 23,663 | — | |||||||||
Other Assets | 21,598 | 23,617 | |||||||||
Total Assets | $ | 544,710 | $ | 525,761 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Debt maturing within one year | $ | 24,016 | $ | 3,470 | |||||||
Accounts payable and accrued liabilities | 49,429 | 50,051 | |||||||||
Advanced billings and customer deposits | 4,932 | 6,176 | |||||||||
Dividends payable | 3,749 | 3,741 | |||||||||
Total current liabilities | 82,126 | 63,438 | |||||||||
Long-Term Debt | 155,767 | 153,775 | |||||||||
Deferred Credits and Other Noncurrent Liabilities | |||||||||||
Deferred income taxes | 61,732 | 60,472 | |||||||||
Postemployment benefit obligation | 14,876 | 18,276 | |||||||||
Operating lease liabilities | 21,637 | 22,202 | |||||||||
Other noncurrent liabilities | 28,726 | 28,358 | |||||||||
Total deferred credits and other noncurrent liabilities | 126,971 | 129,308 | |||||||||
Stockholders’ Equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 7,621 | 7,621 | |||||||||
Additional paid-in capital | 129,941 | 130,175 | |||||||||
Retained earnings | 38,947 | 37,457 | |||||||||
Treasury stock | (17,332) | (17,910) | |||||||||
Accumulated other comprehensive income | 3,119 | 4,330 | |||||||||
Noncontrolling interest | 17,550 | 17,567 | |||||||||
Total stockholders’ equity | 179,846 | 179,240 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 544,710 | $ | 525,761 | |||||||
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Six-Month Period | ||||||||||
2021 | 2020 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | 9,816 | $ | 6,526 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 11,570 | 14,507 | |||||||||
Amortization of film and television costs | 6,256 | 3,985 | |||||||||
Undistributed earnings from investments in equity affiliates | 15 | 64 | |||||||||
Provision for uncollectible accounts | 596 | 1,199 | |||||||||
Deferred income tax expense | 1,772 | 653 | |||||||||
Net (gain) loss on investments, net of impairments | (237) | (705) | |||||||||
Pension and postretirement benefit expense (credit) | (1,899) | (1,495) | |||||||||
Actuarial (gain) loss on pension and postretirement benefits | (2,647) | — | |||||||||
Asset impairments and abandonments | 4,555 | 2,442 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 1,415 | 2,522 | |||||||||
Other current assets, inventories and theatrical film and television production costs | (6,985) | (5,592) | |||||||||
Accounts payable and other accrued liabilities | (4,298) | (3,847) | |||||||||
Equipment installment receivables and related sales | 811 | 226 | |||||||||
Deferred customer contract acquisition and fulfillment costs | 410 | 322 | |||||||||
Postretirement claims and contributions | (207) | (228) | |||||||||
Other - net | (106) | 346 | |||||||||
Total adjustments | 11,021 | 14,399 | |||||||||
Net Cash Provided by Operating Activities | 20,837 | 20,925 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | (7,992) | (9,432) | |||||||||
Acquisitions, net of cash acquired | (23,169) | (1,174) | |||||||||
Dispositions | 635 | 347 | |||||||||
Other - net | (105) | (19) | |||||||||
Net Cash Used in Investing Activities | (30,631) | (10,278) | |||||||||
Financing Activities | |||||||||||
Net change in short-term borrowings with original maturities of three months or less | 76 | 498 | |||||||||
Issuance of other short-term borrowings | 16,440 | 8,440 | |||||||||
Repayment of other short-term borrowings | (857) | (5,975) | |||||||||
Issuance of long-term debt | 9,097 | 21,060 | |||||||||
Repayment of long-term debt | (1,155) | (17,284) | |||||||||
Payment of vendor financing | (2,994) | (1,354) | |||||||||
Issuance of preferred stock | — | 3,869 | |||||||||
Purchase of treasury stock | (185) | (5,480) | |||||||||
Issuance of treasury stock | 85 | 84 | |||||||||
Dividends paid | (7,571) | (7,474) | |||||||||
Other - net | (1,036) | (2,295) | |||||||||
Net Cash Provided by (Used in) Financing Activities | 11,900 | (5,911) | |||||||||
Net increase in cash and cash equivalents and restricted cash | 2,106 | 4,736 | |||||||||
Cash and cash equivalents and restricted cash beginning of year | 9,870 | 12,295 | |||||||||
Cash and Cash Equivalents and Restricted Cash End of Period | $ | 11,976 | $ | 17,031 | |||||||
AT&T Inc. | ||||||||||||||||||||
Consolidated Supplementary Data | ||||||||||||||||||||
Supplementary Financial Data | ||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Capital expenditures | ||||||||||||||||||||
Purchase of property and equipment | $ | 3,926 | $ | 4,434 | (11.5) | % | $ | 7,898 | $ | 9,372 | (15.7) | % | ||||||||
Interest during construction - capital expenditures | 33 | 32 | 3.1 | % | 94 | 60 | 56.7 | % | ||||||||||||
Total Capital Expenditures | $ | 3,959 | $ | 4,466 | (11.4) | % | $ | 7,992 | $ | 9,432 | (15.3) | % | ||||||||
Acquisition, net of cash acquired | ||||||||||||||||||||
Business acquisitions | $ | 18 | $ | 125 | (85.6) | % | $ | 26 | $ | 128 | (79.7) | % | ||||||||
Spectrum acquisitions | 10 | 949 | (98.9) | % | 22,886 | 1,046 | — | % | ||||||||||||
Interest during construction - spectrum | 257 | — | — | % | 257 | — | — | % | ||||||||||||
Total Acquisitions | $ | 285 | $ | 1,074 | (73.5) | % | $ | 23,169 | $ | 1,174 | — | % | ||||||||
Cash Paid for Programming and Produced Film/TV Content | $ | 5,261 | $ | 2,897 | 81.6 | % | $ | 9,769 | $ | 7,219 | 35.3 | % | ||||||||
Dividends Declared per Common Share | $ | 0.52 | $ | 0.52 | — | % | $ | 1.04 | $ | 1.04 | — | % | ||||||||
End of Period Common Shares Outstanding (000,000) | 7,140 | 7,125 | 0.2 | % | ||||||||||||||||
Debt Ratio | 50.0 | % | 46.6 | % | 340 | BP | ||||||||||||||
Total Employees | 226,840 | 243,350 | (6.8) | % | ||||||||||||||||
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Mobility | $ | 18,936 | $ | 17,149 | 10.4 | % | $ | 37,970 | $ | 34,551 | 9.9 | % | ||||||||
Business Wireline | 6,052 | 6,305 | (4.0) | % | 12,098 | 12,571 | (3.8) | % | ||||||||||||
Consumer Wireline | 3,140 | 3,051 | 2.9 | % | 6,238 | 6,162 | 1.2 | % | ||||||||||||
Total Segment Operating Revenues | 28,128 | 26,505 | 6.1 | % | 56,306 | 53,284 | 5.7 | % | ||||||||||||
Segment Operating Contribution | ||||||||||||||||||||
Mobility | 6,002 | 5,805 | 3.4 | % | 12,004 | 11,593 | 3.5 | % | ||||||||||||
Business Wireline | 1,050 | 1,290 | (18.6) | % | 2,108 | 2,383 | (11.5) | % | ||||||||||||
Consumer Wireline | 288 | 393 | (26.7) | % | 593 | 913 | (35.0) | % | ||||||||||||
Total Segment Operating Contribution | $ | 7,340 | $ | 7,488 | (2.0) | % | $ | 14,705 | $ | 14,889 | (1.2) | % | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
IP | 14,988 | 14,548 | 3.0 | % | ||||||||||||||||
DSL | 493 | 653 | (24.5) | % | ||||||||||||||||
Total Broadband Connections | 15,481 | 15,201 | 1.8 | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Network Access Lines | 6,691 | 7,878 | (15.1) | % | ||||||||||||||||
U-verse VoIP Connections | 3,559 | 4,058 | (12.3) | % | ||||||||||||||||
Total Retail Voice Connections | 10,250 | 11,936 | (14.1) | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
IP | 80 | (79) | — | % | 170 | (111) | — | % | ||||||||||||
DSL | (34) | (35) | 2.9 | % | (73) | (77) | 5.2 | % | ||||||||||||
Total Broadband Net Additions | 46 | (114) | — | % | 97 | (188) | — | % |
Mobility Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 14,346 | $ | 13,669 | 5.0 | % | $ | 28,394 | $ | 27,637 | 2.7 | % | ||||||||
Equipment | 4,590 | 3,480 | 31.9 | % | 9,576 | 6,914 | 38.5 | % | ||||||||||||
Total Operating Revenues | 18,936 | 17,149 | 10.4 | % | 37,970 | 34,551 | 9.9 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 10,911 | 9,332 | 16.9 | % | 21,929 | 18,901 | 16.0 | % | ||||||||||||
Depreciation and amortization | 2,023 | 2,012 | 0.5 | % | 4,037 | 4,057 | (0.5) | % | ||||||||||||
Total Operating Expenses | 12,934 | 11,344 | 14.0 | % | 25,966 | 22,958 | 13.1 | % | ||||||||||||
Operating Income | 6,002 | 5,805 | 3.4 | % | 12,004 | 11,593 | 3.5 | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | % | — | — | — | % | ||||||||||||
Operating Contribution | $ | 6,002 | $ | 5,805 | 3.4 | % | $ | 12,004 | $ | 11,593 | 3.5 | % | ||||||||
Operating Income Margin | 31.7 | % | 33.9 | % | (220) | BP | 31.6 | % | 33.6 | % | (200) | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Mobility Subscribers | ||||||||||||||||||||
Postpaid | 79,059 | 74,919 | 5.5 | % | ||||||||||||||||
Postpaid phone | 65,503 | 62,882 | 4.2 | % | ||||||||||||||||
Prepaid | 18,681 | 18,008 | 3.7 | % | ||||||||||||||||
Reseller | 6,406 | 6,718 | (4.6) | % | ||||||||||||||||
Connected Devices | 87,500 | 71,762 | 21.9 | % | ||||||||||||||||
Total Mobility Subscribers | 191,646 | 171,407 | 11.8 | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Mobility Net Additions | ||||||||||||||||||||
Postpaid Phone Net Additions | 789 | (151) | — | % | 1,384 | 12 | — | % | ||||||||||||
Total Phone Net Additions | 963 | (16) | — | % | 1,765 | 104 | — | % | ||||||||||||
Postpaid | 1,156 | (154) | — | % | 1,979 | (127) | — | % | ||||||||||||
Prepaid | 297 | 165 | 80.0 | % | 576 | 120 | — | % | ||||||||||||
Reseller | (125) | (58) | — | % | (193) | (248) | 22.2 | % | ||||||||||||
Connected Devices | 4,209 | 2,255 | 86.7 | % | 6,726 | 5,773 | 16.5 | % | ||||||||||||
Total Mobility Net Additions | 5,537 | 2,208 | — | % | 9,088 | 5,518 | 64.7 | % | ||||||||||||
Postpaid Churn | 0.87 | % | 1.05 | % | (18) | BP | 0.90 | % | 1.06 | % | (16) BP | |||||||||
Postpaid Phone-Only Churn | 0.69 | % | 0.84 | % | (15) | BP | 0.73 | % | 0.85 | % | (12) BP | |||||||||
Business Wireline Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 5,860 | $ | 6,101 | (4.0) | % | $ | 11,732 | $ | 12,192 | (3.8) | % | ||||||||
Equipment | 192 | 204 | (5.9) | % | 366 | 379 | (3.4) | % | ||||||||||||
Total Operating Revenues | 6,052 | 6,305 | (4.0) | % | 12,098 | 12,571 | (3.8) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 3,709 | 3,714 | (0.1) | % | 7,419 | 7,601 | (2.4) | % | ||||||||||||
Depreciation and amortization | 1,293 | 1,301 | (0.6) | % | 2,571 | 2,587 | (0.6) | % | ||||||||||||
Total Operating Expenses | 5,002 | 5,015 | (0.3) | % | 9,990 | 10,188 | (1.9) | % | ||||||||||||
Operating Income | 1,050 | 1,290 | (18.6) | % | 2,108 | 2,383 | (11.5) | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | % | — | — | — | % | ||||||||||||
Operating Contribution | $ | 1,050 | $ | 1,290 | (18.6) | % | $ | 2,108 | $ | 2,383 | (11.5) | % | ||||||||
Operating Income Margin | 17.3 | % | 20.5 | % | (320) | BP | 17.4 | % | 19.0 | % | (160) | BP |
Consumer Wireline Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Broadband | $ | 2,266 | $ | 2,092 | 8.3 | % | $ | 4,471 | $ | 4,201 | 6.4 | % | ||||||||
Legacy voice and data services | 504 | 560 | (10.0) | % | 1,023 | 1,141 | (10.3) | % | ||||||||||||
Other service and equipment | 370 | 399 | (7.3) | % | 744 | 820 | (9.3) | % | ||||||||||||
Total Operating Revenues | 3,140 | 3,051 | 2.9 | % | 6,238 | 6,162 | 1.2 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 2,083 | 1,928 | 8.0 | % | 4,114 | 3,807 | 8.1 | % | ||||||||||||
Depreciation and amortization | 769 | 730 | 5.3 | % | 1,531 | 1,442 | 6.2 | % | ||||||||||||
Total Operating Expenses | 2,852 | 2,658 | 7.3 | % | 5,645 | 5,249 | 7.5 | % | ||||||||||||
Operating Income | 288 | 393 | (26.7) | % | 593 | 913 | (35.0) | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | % | — | — | — | % | ||||||||||||
Operating Contribution | $ | 288 | $ | 393 | (26.7) | % | $ | 593 | $ | 913 | (35.0) | % | ||||||||
Operating Income Margin | 9.2 | % | 12.9 | % | (370) | BP | 9.5 | % | 14.8 | % | (530) | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
Total Broadband and DSL Connections | 14,174 | 13,944 | 1.6 | % | ||||||||||||||||
Fiber Broadband Connections | 5,432 | 4,321 | 25.7 | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Retail Consumer Switched Access Lines | 2,631 | 3,096 | (15.0) | % | ||||||||||||||||
U-verse Consumer VoIP Connections | 2,965 | 3,480 | (14.8) | % | ||||||||||||||||
Total Retail Consumer Voice Connections | 5,596 | 6,576 | (14.9) | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
Total Broadband and DSL Net Additions | 28 | (102) | — | % | 74 | (175) | — | % | ||||||||||||
Fiber Broadband Net Additions | 246 | 225 | 9.3 | % | 481 | 434 | 10.8 | % | ||||||||||||
Business Solutions Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 2,025 | $ | 1,885 | 7.4 | % | $ | 3,994 | $ | 3,834 | 4.2 | % | ||||||||
Wireline service | 5,860 | 6,101 | (4.0) | % | 11,732 | 12,192 | (3.8) | % | ||||||||||||
Wireless equipment | 781 | 585 | 33.5 | % | 1,571 | 1,295 | 21.3 | % | ||||||||||||
Wireline equipment | 192 | 204 | (5.9) | % | 366 | 379 | (3.4) | % | ||||||||||||
Total Operating Revenues | 8,858 | 8,775 | 0.9 | % | 17,663 | 17,700 | (0.2) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 5,663 | 5,360 | 5.7 | % | 11,212 | 11,006 | 1.9 | % | ||||||||||||
Depreciation and amortization | 1,638 | 1,621 | 1.0 | % | 3,252 | 3,230 | 0.7 | % | ||||||||||||
Total Operating Expenses | 7,301 | 6,981 | 4.6 | % | 14,464 | 14,236 | 1.6 | % | ||||||||||||
Operating Income | 1,557 | 1,794 | (13.2) | % | 3,199 | 3,464 | (7.7) | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | % | — | — | — | % | ||||||||||||
Operating Contribution | $ | 1,557 | $ | 1,794 | (13.2) | % | $ | 3,199 | $ | 3,464 | (7.7) | % | ||||||||
Operating Income Margin | 17.6 | % | 20.4 | % | (280) | BP | 18.1 | % | 19.6 | % | (150) | BP |
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Subscription | $ | 3,961 | $ | 3,265 | 21.3 | % | $ | 7,791 | $ | 6,665 | 16.9 | % | ||||||||
Content and other | 3,091 | 2,292 | 34.9 | % | 6,050 | 5,192 | 16.5 | % | ||||||||||||
Advertising | 1,739 | 1,171 | 48.5 | % | 3,476 | 2,636 | 31.9 | % | ||||||||||||
Total Segment Operating Revenues | 8,791 | 6,728 | 30.7 | % | 17,317 | 14,493 | 19.5 | % | ||||||||||||
Direct Costs | ||||||||||||||||||||
Programming | 4,154 | 2,375 | 74.9 | % | 7,928 | 5,457 | 45.3 | % | ||||||||||||
Marketing | 983 | 545 | 80.4 | % | 1,833 | 1,095 | 67.4 | % | ||||||||||||
Other | 854 | 820 | 4.1 | % | 1,667 | 1,595 | 4.5 | % | ||||||||||||
General and administrative | 943 | 916 | 2.9 | % | 1,909 | 2,114 | (9.7) | % | ||||||||||||
Depreciation and amortization | 165 | 164 | 0.6 | % | 328 | 325 | 0.9 | % | ||||||||||||
Total Operating Expenses | 7,099 | 4,820 | 47.3 | % | 13,665 | 10,586 | 29.1 | % | ||||||||||||
Operating Income | 1,692 | 1,908 | (11.3) | % | 3,652 | 3,907 | (6.5) | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | 47 | 4 | — | % | 117 | 19 | — | % | ||||||||||||
Total Segment Operating Contribution | $ | 1,739 | $ | 1,912 | (9.0) | % | $ | 3,769 | $ | 3,926 | (4.0) | % | ||||||||
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Vrio | $ | 749 | $ | 752 | (0.4) | % | $ | 1,492 | $ | 1,639 | (9.0) | % | ||||||||
Mexico | 688 | 480 | 43.3 | % | 1,319 | 1,183 | 11.5 | % | ||||||||||||
Total Segment Operating Revenues | 1,437 | 1,232 | 16.6 | % | 2,811 | 2,822 | (0.4) | % | ||||||||||||
Segment Operating Contribution | ||||||||||||||||||||
Vrio | (23) | (28) | 17.9 | % | (62) | (67) | 7.5 | % | ||||||||||||
Mexico | (129) | (173) | 25.4 | % | (263) | (318) | 17.3 | % | ||||||||||||
Total Segment Operating Contribution | $ | (152) | $ | (201) | 24.4 | % | $ | (325) | $ | (385) | 15.6 | % | ||||||||
Vrio Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | $ | 749 | $ | 752 | (0.4) | % | $ | 1,492 | $ | 1,639 | (9.0) | % | ||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 660 | 661 | (0.2) | % | 1,321 | 1,444 | (8.5) | % | ||||||||||||
Depreciation and amortization | 114 | 127 | (10.2) | % | 231 | 274 | (15.7) | % | ||||||||||||
Total Operating Expenses | 774 | 788 | (1.8) | % | 1,552 | 1,718 | (9.7) | % | ||||||||||||
Operating Income (Loss) | (25) | (36) | 30.6 | % | (60) | (79) | 24.1 | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | 2 | 8 | (75.0) | % | (2) | 12 | — | % | ||||||||||||
Operating Contribution | $ | (23) | $ | (28) | 17.9 | % | $ | (62) | $ | (67) | 7.5 | % | ||||||||
Operating Income Margin | (3.3) | % | (4.8) | % | 150 | BP | (4.0) | % | (4.8) | % | 80 | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Vrio Video Subscribers | 10,320 | 10,664 | (3.2) | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Vrio Video Net Additions | (239) | (312) | 23.4 | % | (622) | (426) | (46.0) | % | ||||||||||||
Mexico Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 447 | $ | 345 | 29.6 | % | $ | 886 | $ | 812 | 9.1 | % | ||||||||
Wireless equipment | 241 | 135 | 78.5 | % | 433 | 371 | 16.7 | % | ||||||||||||
Total Operating Revenues | 688 | 480 | 43.3 | % | 1,319 | 1,183 | 11.5 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 667 | 538 | 24.0 | % | 1,287 | 1,252 | 2.8 | % | ||||||||||||
Depreciation and amortization | 150 | 115 | 30.4 | % | 295 | 249 | 18.5 | % | ||||||||||||
Total Operating Expenses | 817 | 653 | 25.1 | % | 1,582 | 1,501 | 5.4 | % | ||||||||||||
Operating Income (Loss) | (129) | (173) | 25.4 | % | (263) | (318) | 17.3 | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | % | — | — | — | % | ||||||||||||
Operating Contribution | $ | (129) | $ | (173) | 25.4 | % | $ | (263) | $ | (318) | 17.3 | % | ||||||||
Operating Income Margin | (18.8) | % | (36.0) | % | 1,720 | BP | (19.9) | % | (26.9) | % | 700 | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Mexico Wireless Subscribers | ||||||||||||||||||||
Postpaid | 4,745 | 4,771 | (0.5) | % | ||||||||||||||||
Prepaid | 13,810 | 12,777 | 8.1 | % | ||||||||||||||||
Reseller | 491 | 425 | 15.5 | % | ||||||||||||||||
Total Mexico Wireless Subscribers | 19,046 | 17,973 | 6.0 | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Mexico Wireless Net Additions | ||||||||||||||||||||
Postpaid | 20 | (191) | — | % | 49 | (332) | — | % | ||||||||||||
Prepaid | 54 | (915) | — | % | 52 | (807) | — | % | ||||||||||||
Reseller | (9) | 21 | — | % | 2 | 53 | (96.2) | % | ||||||||||||
Total Mexico Wireless Net Additions | 65 | (1,085) | — | % | 103 | (1,086) | — | % | ||||||||||||
Video Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 6,607 | $ | 6,979 | (5.3) | % | $ | 13,291 | $ | 14,376 | (7.5) | % | ||||||||
Equipment | 32 | 42 | (23.8) | % | 73 | 52 | 40.4 | % | ||||||||||||
Total Operating Revenues | 6,639 | 7,021 | (5.4) | % | 13,364 | 14,428 | (7.4) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 5,275 | 5,809 | (9.2) | % | 10,935 | 11,829 | (7.6) | % | ||||||||||||
Depreciation and amortization1 | 148 | 593 | (75.0) | % | 312 | 1,184 | (73.6) | % | ||||||||||||
Total Operating Expenses | 5,423 | 6,402 | (15.3) | % | 11,247 | 13,013 | (13.6) | % | ||||||||||||
Operating Income | 1,216 | 619 | 96.4 | % | 2,117 | 1,415 | 49.6 | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | % | — | — | — | % | ||||||||||||
Operating Contribution | $ | 1,216 | $ | 619 | 96.4 | % | $ | 2,117 | $ | 1,415 | 49.6 | % | ||||||||
Operating Income Margin | 18.3 | % | 8.8 | % | 950 | BP | 15.8 | % | 9.8 | % | 600 | BP | ||||||||
1Includes depreciation on assets that support AT&T U-verse products that provide both video and broadband services to customers over a shared network infrastructure. | ||||||||||||||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Premium TV Connections | 15,412 | 17,712 | (13.0) | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||
Premium TV Net Additions | (473) | (887) | 46.7 | % | (1,093) | (1,784) | 38.7 | % |
Three Months Ended | |||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | |||||||||||||||||
Communications | |||||||||||||||||||||||
Mobility | $ | 18,936 | $ | 10,911 | $ | 8,025 | $ | 2,023 | $ | 6,002 | $ | — | $ | 6,002 | |||||||||
Business Wireline | 6,052 | 3,709 | 2,343 | 1,293 | 1,050 | — | 1,050 | ||||||||||||||||
Consumer Wireline | 3,140 | 2,083 | 1,057 | 769 | 288 | — | 288 | ||||||||||||||||
Total Communications | 28,128 | 16,703 | 11,425 | 4,085 | 7,340 | — | 7,340 | ||||||||||||||||
WarnerMedia | 8,791 | 6,934 | 1,857 | 165 | 1,692 | 47 | 1,739 | ||||||||||||||||
Latin America | |||||||||||||||||||||||
Vrio | 749 | 660 | 89 | 114 | (25) | 2 | (23) | ||||||||||||||||
Mexico | 688 | 667 | 21 | 150 | (129) | — | (129) | ||||||||||||||||
Total Latin America | 1,437 | 1,327 | 110 | 264 | (154) | 2 | (152) | ||||||||||||||||
Segment Total | 38,356 | 24,964 | 13,392 | 4,514 | 8,878 | $ | 49 | $ | 8,927 | ||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Corporate | 361 | 1,160 | (799) | 30 | (829) | ||||||||||||||||||
Video | 6,639 | 5,275 | 1,364 | 148 | 1,216 | ||||||||||||||||||
Acquisition-related items | — | — | — | 1,069 | (1,069) | ||||||||||||||||||
Certain significant items | — | 4,555 | (4,555) | — | (4,555) | ||||||||||||||||||
Eliminations and consolidations | (1,311) | (939) | (372) | — | (372) | ||||||||||||||||||
AT&T Inc. | $ | 44,045 | $ | 35,015 | $ | 9,030 | $ | 5,761 | $ | 3,269 | |||||||||||||
Three Months Ended | |||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | |||||||||||||||||
Communications | |||||||||||||||||||||||
Mobility | $ | 17,149 | $ | 9,332 | $ | 7,817 | $ | 2,012 | $ | 5,805 | $ | — | $ | 5,805 | |||||||||
Business Wireline | 6,305 | 3,714 | 2,591 | 1,301 | 1,290 | — | 1,290 | ||||||||||||||||
Consumer Wireline | 3,051 | 1,928 | 1,123 | 730 | 393 | — | 393 | ||||||||||||||||
Total Communications | 26,505 | 14,974 | 11,531 | 4,043 | 7,488 | — | 7,488 | ||||||||||||||||
WarnerMedia | 6,728 | 4,656 | 2,072 | 164 | 1,908 | 4 | 1,912 | ||||||||||||||||
Latin America | |||||||||||||||||||||||
Vrio | 752 | 661 | 91 | 127 | (36) | 8 | (28) | ||||||||||||||||
Mexico | 480 | 538 | (58) | 115 | (173) | — | (173) | ||||||||||||||||
Total Latin America | 1,232 | 1,199 | 33 | 242 | (209) | 8 | (201) | ||||||||||||||||
Segment Total | 34,465 | 20,829 | 13,636 | 4,449 | 9,187 | $ | 12 | $ | 9,199 | ||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Corporate | 589 | 1,069 | (480) | 99 | (579) | ||||||||||||||||||
Video | 7,021 | 5,809 | 1,212 | 593 | 619 | ||||||||||||||||||
Acquisition-related items | — | 211 | (211) | 2,145 | (2,356) | ||||||||||||||||||
Certain significant items | — | 3,084 | (3,084) | — | (3,084) | ||||||||||||||||||
Eliminations and consolidations | (1,125) | (869) | (256) | (1) | (255) | ||||||||||||||||||
AT&T Inc. | $ | 40,950 | $ | 30,133 | $ | 10,817 | $ | 7,285 | $ | 3,532 | |||||||||||||
Six Months Ended | |||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | |||||||||||||||||
Communications | |||||||||||||||||||||||
Mobility | $ | 37,970 | $ | 21,929 | $ | 16,041 | $ | 4,037 | $ | 12,004 | $ | — | $ | 12,004 | |||||||||
Business Wireline | 12,098 | 7,419 | 4,679 | 2,571 | 2,108 | — | 2,108 | ||||||||||||||||
Consumer Wireline | 6,238 | 4,114 | 2,124 | 1,531 | 593 | — | 593 | ||||||||||||||||
Total Communications | 56,306 | 33,462 | 22,844 | 8,139 | 14,705 | — | 14,705 | ||||||||||||||||
WarnerMedia | 17,317 | 13,337 | 3,980 | 328 | 3,652 | 117 | 3,769 | ||||||||||||||||
Latin America | |||||||||||||||||||||||
Vrio | 1,492 | 1,321 | 171 | 231 | (60) | (2) | (62) | ||||||||||||||||
Mexico | 1,319 | 1,287 | 32 | 295 | (263) | — | (263) | ||||||||||||||||
Total Latin America | 2,811 | 2,608 | 203 | 526 | (323) | (2) | (325) | ||||||||||||||||
Segment Total | 76,434 | 49,407 | 27,027 | 8,993 | 18,034 | $ | 115 | $ | 18,149 | ||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Corporate | 787 | 2,373 | (1,586) | 65 | (1,651) | ||||||||||||||||||
Video | 13,364 | 10,935 | 2,429 | 312 | 2,117 | ||||||||||||||||||
Acquisition-related items | — | 37 | (37) | 2,200 | (2,237) | ||||||||||||||||||
Certain significant items | — | 4,612 | (4,612) | — | (4,612) | ||||||||||||||||||
Eliminations and consolidations | (2,601) | (1,880) | (721) | — | (721) | ||||||||||||||||||
AT&T Inc. | $ | 87,984 | $ | 65,484 | $ | 22,500 | $ | 11,570 | $ | 10,930 | |||||||||||||
Six Months Ended | |||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | |||||||||||||||||
Communications | |||||||||||||||||||||||
Mobility | $ | 34,551 | $ | 18,901 | $ | 15,650 | $ | 4,057 | $ | 11,593 | $ | — | $ | 11,593 | |||||||||
Business Wireline | 12,571 | 7,601 | 4,970 | 2,587 | 2,383 | — | 2,383 | ||||||||||||||||
Consumer Wireline | 6,162 | 3,807 | 2,355 | 1,442 | 913 | — | 913 | ||||||||||||||||
Total Communications | 53,284 | 30,309 | 22,975 | 8,086 | 14,889 | — | 14,889 | ||||||||||||||||
WarnerMedia | 14,493 | 10,261 | 4,232 | 325 | 3,907 | 19 | 3,926 | ||||||||||||||||
Latin America | |||||||||||||||||||||||
Vrio | 1,639 | 1,444 | 195 | 274 | (79) | 12 | (67) | ||||||||||||||||
Mexico | 1,183 | 1,252 | (69) | 249 | (318) | — | (318) | ||||||||||||||||
Total Latin America | 2,822 | 2,696 | 126 | 523 | (397) | 12 | (385) | ||||||||||||||||
Segment Total | 70,599 | 43,266 | 27,333 | 8,934 | 18,399 | $ | 31 | $ | 18,430 | ||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Corporate | 1,123 | 2,081 | (958) | 189 | (1,147) | ||||||||||||||||||
Video | 14,428 | 11,829 | 2,599 | 1,184 | 1,415 | ||||||||||||||||||
Acquisition-related items | — | 393 | (393) | 4,201 | (4,594) | ||||||||||||||||||
Certain significant items | — | 2,426 | (2,426) | — | (2,426) | ||||||||||||||||||
Eliminations and consolidations | (2,421) | (1,791) | (630) | (1) | (629) | ||||||||||||||||||
AT&T Inc. | $ | 83,729 | $ | 58,204 | $ | 25,525 | $ | 14,507 | $ | 11,018 | |||||||||||||
Free Cash Flow and Free Cash Flow Dividend Payout Ratio | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Net cash provided by operating activities | $ | 10,910 | $ | 12,059 | $ | 20,837 | $ | 20,925 | |||||||||
Less: Capital expenditures | (3,959) | (4,466) | (7,992) | (9,432) | |||||||||||||
Free Cash Flow | 6,951 | 7,593 | 12,845 | 11,493 | |||||||||||||
Less: Dividends paid | (3,830) | (3,737) | (7,571) | (7,474) | |||||||||||||
Free Cash Flow after Dividends | $ | 3,121 | $ | 3,856 | $ | 5,274 | $ | 4,019 | |||||||||
Free Cash Flow Dividend Payout Ratio | 55.1 | % | 49.2 | % | 58.9 | % | 65.0 | % |
Cash Paid for Capital Investment | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Capital Expenditures | $ | (3,959) | $ | (4,466) | $ | (7,992) | $ | (9,432) | |||||||||
Cash paid for vendor financing | (1,304) | (563) | (2,994) | (1,354) | |||||||||||||
Cash paid for Capital Investment | $ | (5,263) | $ | (5,029) | $ | (10,986) | $ | (10,786) | |||||||||
FirstNet reimbursement | — | (72) | — | (79) | |||||||||||||
Gross Capital Investment | $ | (5,263) | $ | (5,101) | $ | (10,986) | $ | (10,865) |
EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Net Income | $ | 1,874 | $ | 1,563 | $ | 9,816 | $ | 6,526 | |||||||||
Additions: | |||||||||||||||||
Income Tax Expense | 751 | 935 | 2,873 | 2,237 | |||||||||||||
Interest Expense | 1,684 | 2,041 | 3,554 | 4,059 | |||||||||||||
Equity in Net (Income) Loss of Affiliates | (41) | 10 | (93) | 16 | |||||||||||||
Other (Income) Expense - Net | (999) | (1,017) | (5,220) | (1,820) | |||||||||||||
Depreciation and amortization | 5,761 | 7,285 | 11,570 | 14,507 | |||||||||||||
EBITDA | 9,030 | 10,817 | 22,500 | 25,525 | |||||||||||||
Merger costs | — | 211 | 37 | 393 | |||||||||||||
Employee separation costs and benefit-related (gain) loss | — | 765 | 57 | 884 | |||||||||||||
Impairments | 4,555 | 2,319 | 4,555 | 2,442 | |||||||||||||
Gain on spectrum transaction | — | — | — | (900) | |||||||||||||
Adjusted EBITDA 1 | $ | 13,585 | $ | 14,112 | $ | 27,149 | $ | 28,344 | |||||||||
1 See page 5 for additional discussion and reconciliation of adjusted items. |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Communications Segment | |||||||||||||||||
Operating Contribution | $ | 7,340 | $ | 7,488 | $ | 14,705 | $ | 14,889 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 4,085 | 4,043 | 8,139 | 8,086 | |||||||||||||
EBITDA | 11,425 | 11,531 | 22,844 | 22,975 | |||||||||||||
Total Operating Revenues | 28,128 | 26,505 | 56,306 | 53,284 | |||||||||||||
Operating Income Margin | 26.1 | % | 28.3 | % | 26.1 | % | 27.9 | % | |||||||||
EBITDA Margin | 40.6 | % | 43.5 | % | 40.6 | % | 43.1 | % | |||||||||
Mobility | |||||||||||||||||
Operating Contribution | $ | 6,002 | $ | 5,805 | $ | 12,004 | $ | 11,593 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 2,023 | 2,012 | 4,037 | 4,057 | |||||||||||||
EBITDA | 8,025 | 7,817 | 16,041 | 15,650 | |||||||||||||
Total Operating Revenues | 18,936 | 17,149 | 37,970 | 34,551 | |||||||||||||
Service Revenues | 14,346 | 13,669 | 28,394 | 27,637 | |||||||||||||
Operating Income Margin | 31.7 | % | 33.9 | % | 31.6 | % | 33.6 | % | |||||||||
EBITDA Margin | 42.4 | % | 45.6 | % | 42.2 | % | 45.3 | % | |||||||||
EBITDA Service Margin | 55.9 | % | 57.2 | % | 56.5 | % | 56.6 | % | |||||||||
Business Wireline | |||||||||||||||||
Operating Contribution | $ | 1,050 | $ | 1,290 | $ | 2,108 | $ | 2,383 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 1,293 | 1,301 | 2,571 | 2,587 | |||||||||||||
EBITDA | 2,343 | 2,591 | 4,679 | 4,970 | |||||||||||||
Total Operating Revenues | 6,052 | 6,305 | 12,098 | 12,571 | |||||||||||||
Operating Income Margin | 17.3 | % | 20.5 | % | 17.4 | % | 19.0 | % | |||||||||
EBITDA Margin | 38.7 | % | 41.1 | % | 38.7 | % | 39.5 | % | |||||||||
Consumer Wireline | |||||||||||||||||
Operating Contribution | $ | 288 | $ | 393 | $ | 593 | $ | 913 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 769 | 730 | 1,531 | 1,442 | |||||||||||||
EBITDA | 1,057 | 1,123 | 2,124 | 2,355 | |||||||||||||
Total Operating Revenues | 3,140 | 3,051 | 6,238 | 6,162 | |||||||||||||
Operating Income Margin | 9.2 | % | 12.9 | % | 9.5 | % | 14.8 | % | |||||||||
EBITDA Margin | 33.7 | % | 36.8 | % | 34.0 | % | 38.2 | % |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
WarnerMedia Segment | |||||||||||||||||
Operating Contribution | $ | 1,739 | $ | 1,912 | $ | 3,769 | $ | 3,926 | |||||||||
Additions: | |||||||||||||||||
Equity in Net (Income) of Affiliates | (47) | (4) | (117) | (19) | |||||||||||||
Depreciation and amortization | 165 | 164 | 328 | 325 | |||||||||||||
EBITDA | 1,857 | 2,072 | 3,980 | 4,232 | |||||||||||||
Total Operating Revenues | 8,791 | 6,728 | 17,317 | 14,493 | |||||||||||||
Operating Income Margin | 19.2 | % | 28.4 | % | 21.1 | % | 27.0 | % | |||||||||
EBITDA Margin | 21.1 | % | 30.8 | % | 23.0 | % | 29.2 | % |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Latin America Segment | |||||||||||||||||
Operating Contribution | $ | (152) | $ | (201) | $ | (325) | $ | (385) | |||||||||
Additions: | |||||||||||||||||
Equity in Net (Income) of Affiliates | (2) | (8) | 2 | (12) | |||||||||||||
Depreciation and amortization | 264 | 242 | 526 | 523 | |||||||||||||
EBITDA | 110 | 33 | 203 | 126 | |||||||||||||
Total Operating Revenues | 1,437 | 1,232 | 2,811 | 2,822 | |||||||||||||
Operating Income Margin | -10.7 | % | -17.0 | % | -11.5 | % | -14.1 | % | |||||||||
EBITDA Margin | 7.7 | % | 2.7 | % | 7.2 | % | 4.5 | % | |||||||||
Vrio | |||||||||||||||||
Operating Contribution | $ | (23) | $ | (28) | $ | (62) | $ | (67) | |||||||||
Additions: | |||||||||||||||||
Equity in Net (Income) of Affiliates | (2) | (8) | 2 | (12) | |||||||||||||
Depreciation and amortization | 114 | 127 | 231 | 274 | |||||||||||||
EBITDA | 89 | 91 | 171 | 195 | |||||||||||||
Total Operating Revenues | 749 | 752 | 1,492 | 1,639 | |||||||||||||
Operating Income Margin | -3.3 | % | -4.8 | % | -4.0 | % | -4.8 | % | |||||||||
EBITDA Margin | 11.9 | % | 12.1 | % | 11.5 | % | 11.9 | % | |||||||||
Mexico | |||||||||||||||||
Operating Contribution | $ | (129) | $ | (173) | $ | (263) | $ | (318) | |||||||||
Additions: | |||||||||||||||||
Equity in Net (Income) Loss of Affiliates | — | — | — | — | |||||||||||||
Depreciation and amortization | 150 | 115 | 295 | 249 | |||||||||||||
EBITDA | 21 | (58) | 32 | (69) | |||||||||||||
Total Operating Revenues | 688 | 480 | 1,319 | 1,183 | |||||||||||||
Operating Income Margin | -18.8 | % | -36.0 | % | -19.9 | % | -26.9 | % | |||||||||
EBITDA Margin | 3.1 | % | -12.1 | % | 2.4 | % | -5.8 | % |
Supplemental EBITDA and EBITDA Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Video | |||||||||||||||||
Operating Contribution | $ | 1,216 | $ | 619 | $ | 2,117 | $ | 1,415 | |||||||||
Additions: | |||||||||||||||||
Equity in Net (Income) of Affiliates | — | — | — | — | |||||||||||||
Depreciation and amortization | 148 | 593 | 312 | 1,184 | |||||||||||||
EBITDA | 1,364 | 1,212 | 2,429 | 2,599 | |||||||||||||
Total Operating Revenues | 6,639 | 7,021 | 13,364 | 14,428 | |||||||||||||
Operating Income Margin | 18.3 | % | 8.8 | % | 15.8 | % | 9.8 | % | |||||||||
EBITDA Margin | 20.5 | % | 17.3 | % | 18.2 | % | 18.0 | % |
Adjusting Items | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Operating Expenses | |||||||||||||||||
Merger costs | $ | — | $ | 211 | $ | 37 | $ | 393 | |||||||||
Employee separation costs and benefit-related (gain) loss1 | — | 765 | 57 | 884 | |||||||||||||
Assets impairments and abandonment | 4,555 | 2,319 | 4,555 | 2,442 | |||||||||||||
Gain on spectrum transaction | — | — | — | (900) | |||||||||||||
Adjustments to Operations and Support Expenses | 4,555 | 3,295 | 4,649 | 2,819 | |||||||||||||
Amortization of intangible assets | 1,069 | 2,145 | 2,200 | 4,201 | |||||||||||||
Adjustments to Operating Expenses | 5,624 | 5,440 | 6,849 | 7,020 | |||||||||||||
Other | |||||||||||||||||
Debt redemption, (gain) loss on sale of assets, impairments and other | 140 | 293 | 81 | 407 | |||||||||||||
Actuarial (gain) loss | 197 | — | (2,647) | — | |||||||||||||
Employee benefit-related (gain) loss1 | — | (161) | — | 42 | |||||||||||||
Adjustments to Income Before Income Taxes | 5,961 | 5,572 | 4,283 | 7,469 | |||||||||||||
Tax impact of adjustments | 1,018 | 749 | 548 | 1,143 | |||||||||||||
Tax-related items | — | — | 118 | — | |||||||||||||
Impairment attributable to noncontrolling interest | 81 | 105 | 81 | 105 | |||||||||||||
Adjustments to Net Income | $ | 4,862 | $ | 4,718 | $ | 3,536 | $ | 6,221 | |||||||||
1 Mark-to-market gains and losses on benefit-related investments were adjusted in 2020 reflecting more significant market volatility and uncertainty experienced as a result of the onset of the COVID-19 pandemic. Benefit-related investment gains were $170 and $259 in the second quarter and for the first six months of 2021 and $286 and $2 in the second quarter and for the first six months of 2020. |
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Operating Income | $ | 3,269 | $ | 3,532 | $ | 10,930 | $ | 11,018 | |||||||||
Adjustments to Operating Expenses | 5,624 | 5,440 | 6,849 | 7,020 | |||||||||||||
Adjusted Operating Income | 8,893 | 8,972 | 17,779 | 18,038 | |||||||||||||
EBITDA | 9,030 | 10,817 | 22,500 | 25,525 | |||||||||||||
Adjustments to Operations and Support Expenses | 4,555 | 3,295 | 4,649 | 2,819 | |||||||||||||
Adjusted EBITDA | 13,585 | 14,112 | 27,149 | 28,344 | |||||||||||||
Total Operating Revenues | 44,045 | 40,950 | 87,984 | 83,729 | |||||||||||||
Operating Income Margin | 7.4 | % | 8.6 | % | 12.4 | % | 13.2 | % | |||||||||
Adjusted Operating Income Margin | 20.2 | % | 21.9 | % | 20.2 | % | 21.5 | % | |||||||||
Adjusted EBITDA Margin | 30.8 | % | 34.5 | % | 30.9 | % | 33.9 | % | |||||||||
Adjusted Diluted EPS | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Diluted Earnings Per Share (EPS) | $ | 0.21 | $ | 0.17 | $ | 1.25 | $ | 0.81 | |||||||||
Amortization of intangible assets | 0.12 | 0.24 | 0.24 | 0.46 | |||||||||||||
Merger integration items | — | 0.02 | — | 0.04 | |||||||||||||
Employee separation, (gain) loss on sale of assets and other | 0.02 | 0.08 | 0.04 | 0.02 | |||||||||||||
Actuarial (gain) loss 1 | 0.02 | — | (0.28) | — | |||||||||||||
Impairments | 0.52 | 0.32 | 0.52 | 0.34 | |||||||||||||
Tax-related items | — | — | (0.02) | — | |||||||||||||
Adjusted EPS | $ | 0.89 | $ | 0.83 | $ | 1.75 | $ | 1.67 | |||||||||
Year-over-year growth - Adjusted | 7.2 | % | 4.8 | % | |||||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,200 | 7,170 | 7,194 | 7,192 | |||||||||||||
1Includes adjustments for actuarial gains or losses associated with our pension benefit plan, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial loss of $0.2 billion in the second quarter of 2021. As a result, adjusted EPS reflects an expected return on plan assets of $0.9 billion (based on an average expected return on plan assets of 6.75% for our pension trust), rather than the actual return on plan assets of $2.1 billion (actual pension return of 4.3%), included in the GAAP measure of income. |
Net Debt to Adjusted EBITDA - 2021 | ||||||||||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Sept. 30, | Dec. 31, | March. 31 | June 30, | Four Quarters | ||||||||||||||||||||||||||||
2020 1 | 2020 1 | 2021 1 | 2021 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 13,313 | $ | 12,889 | $ | 13,564 | $ | 13,585 | $ | 53,351 | ||||||||||||||||||||||
End-of-period current debt | 24,016 | |||||||||||||||||||||||||||||||
End-of-period long-term debt | 155,767 | |||||||||||||||||||||||||||||||
Total End-of-Period Debt | 179,783 | |||||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 11,869 | |||||||||||||||||||||||||||||||
Net Debt Balance | 167,914 | |||||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 3.15 | |||||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed October 22, 2020, January 27, 2021 and April 22, 2021. |
Net Debt to Adjusted EBITDA - 2020 | ||||||||||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Sept. 30, | Dec. 31, | March. 31 | June 30, | Four Quarters | ||||||||||||||||||||||||||||
2019 1 | 2019 1 | 2020 1 | 2020 1 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 15,079 | $ | 14,365 | $ | 14,232 | $ | 14,112 | $ | 57,788 | ||||||||||||||||||||||
End-of-period current debt | 15,576 | |||||||||||||||||||||||||||||||
End-of-period long-term debt | 153,388 | |||||||||||||||||||||||||||||||
Total End-of-Period Debt | 168,964 | |||||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 16,941 | |||||||||||||||||||||||||||||||
Net Debt Balance | 152,023 | |||||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 2.63 | |||||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed October 28, 2019, January 29, 2020, April 22, 2020, and July 23, 2020. |
Supplemental Operational Measure | |||||||||||||||||||||||||||||
Second Quarter | |||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||||||||
Mobility | Business Wireline | Adjustments1 | Business Solutions | Mobility | Business Wireline | Adjustments1 | Business Solutions | ||||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||||||||
Wireless service | $ | 14,346 | $ | — | $ | (12,321) | $ | 2,025 | $ | 13,669 | $ | — | $ | (11,784) | $ | 1,885 | |||||||||||||
Wireline service | — | 5,860 | — | 5,860 | — | 6,101 | — | 6,101 | |||||||||||||||||||||
Wireless equipment | 4,590 | — | (3,809) | 781 | 3,480 | — | (2,895) | 585 | |||||||||||||||||||||
Wireline equipment | — | 192 | — | 192 | — | 204 | — | 204 | |||||||||||||||||||||
Total Operating Revenues | 18,936 | 6,052 | (16,130) | 8,858 | 17,149 | 6,305 | (14,679) | 8,775 | |||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||
Operations and support | 10,911 | 3,709 | (8,957) | 5,663 | 9,332 | 3,714 | (7,686) | 5,360 | |||||||||||||||||||||
EBITDA | 8,025 | 2,343 | (7,173) | 3,195 | 7,817 | 2,591 | (6,993) | 3,415 | |||||||||||||||||||||
Depreciation and amortization | 2,023 | 1,293 | (1,678) | 1,638 | 2,012 | 1,301 | (1,692) | 1,621 | |||||||||||||||||||||
Total Operating Expenses | 12,934 | 5,002 | (10,635) | 7,301 | 11,344 | 5,015 | (9,378) | 6,981 | |||||||||||||||||||||
Operating Income | 6,002 | 1,050 | (5,495) | 1,557 | 5,805 | 1,290 | (5,301) | 1,794 | |||||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Operating Contribution | $ | 6,002 | $ | 1,050 | $ | (5,495) | $ | 1,557 | $ | 5,805 | $ | 1,290 | $ | (5,301) | $ | 1,794 | |||||||||||||
1Non-business wireless reported in the Communication segment under the Mobility business unit. | |||||||||||||||||||||||||||||
Results have been recast to conform to the current period's classification. |
Supplemental Operational Measure | |||||||||||||||||||||||||||||
Six-Month Period | |||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||||||||
Mobility | Business Wireline | Adjustments1 | Business Solutions | Mobility | Business Wireline | Adjustments1 | Business Solutions | ||||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||||||||
Wireless service | $ | 28,394 | $ | — | $ | (24,400) | $ | 3,994 | $ | 27,637 | $ | — | $ | (23,803) | $ | 3,834 | |||||||||||||
Wireline service | — | 11,732 | — | 11,732 | — | 12,192 | — | 12,192 | |||||||||||||||||||||
Wireless equipment | 9,576 | — | (8,005) | 1,571 | 6,914 | — | (5,619) | 1,295 | |||||||||||||||||||||
Wireline equipment | — | 366 | — | 366 | — | 379 | — | 379 | |||||||||||||||||||||
Total Operating Revenues | 37,970 | 12,098 | (32,405) | 17,663 | 34,551 | 12,571 | (29,422) | 17,700 | |||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||
Operations and support | 21,929 | 7,419 | (18,136) | 11,212 | 18,901 | 7,601 | (15,496) | 11,006 | |||||||||||||||||||||
EBITDA | 16,041 | 4,679 | (14,269) | 6,451 | 15,650 | 4,970 | (13,926) | 6,694 | |||||||||||||||||||||
Depreciation and amortization | 4,037 | 2,571 | (3,356) | 3,252 | 4,057 | 2,587 | (3,414) | 3,230 | |||||||||||||||||||||
Total Operating Expenses | 25,966 | 9,990 | (21,492) | 14,464 | 22,958 | 10,188 | (18,910) | 14,236 | |||||||||||||||||||||
Operating Income | 12,004 | 2,108 | (10,913) | 3,199 | 11,593 | 2,383 | (10,512) | 3,464 | |||||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Operating Contribution | $ | 12,004 | $ | 2,108 | $ | (10,913) | $ | 3,199 | $ | 11,593 | $ | 2,383 | $ | (10,512) | $ | 3,464 | |||||||||||||
1Non-business wireless reported in the Communication segment under the Mobility business unit. | |||||||||||||||||||||||||||||
Results have been recast to conform to the current period's classification. |
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