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, 2021

or

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

For the transition period from to

Commission File Number 001-8610

AT&T INC.

Incorporated under the laws of the State of Delaware

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

208 S. Akard St., Dallas, Texas 75202

Telephone Number: (210) 821-4105

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

		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
Common Shares (Par Value $1.00 Per Share)	T	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A	T PRA	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C	T PRC	New York Stock Exchange
AT&T Inc. 2.650% Global Notes due December 17, 2021	T 21B	New York Stock Exchange
AT&T Inc. 1.450% Global Notes due June 1, 2022	T 22B	New York Stock Exchange
AT&T Inc. 2.500% Global Notes due March 15, 2023	T 23	New York Stock Exchange
AT&T Inc. 2.750% Global Notes due May 19, 2023	T 23C	New York Stock Exchange
AT&T Inc. Floating Rate Global Notes due September 5, 2023	T 23D	New York Stock Exchange
AT&T Inc. 1.050% Global Notes due September 5, 2023	T 23E	New York Stock Exchange
AT&T Inc. 1.300% Global Notes due September 5, 2023	T 23A	New York Stock Exchange
AT&T Inc. 1.950% Global Notes due September 15, 2023	T 23F	New York Stock Exchange
AT&T Inc. 2.400% Global Notes due March 15, 2024	T 24A	New York Stock Exchange
AT&T Inc. 3.500% Global Notes due December 17, 2025	T 25	New York Stock Exchange
AT&T Inc. 0.250% Global Notes due March 4, 2026	T 26E	New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 5, 2026	T 26D	New York Stock Exchange
AT&T Inc. 2.900% Global Notes due December 4, 2026	T 26A	New York Stock Exchange
AT&T Inc. 1.600% Global Notes due May 19, 2028	T 28C	New York Stock Exchange

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

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

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T 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 emerging growth company. See definition of “accelerated filer,” “large 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 checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Yes ☐ No ☐

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

Yes ☐ No ☒

At July 30, 2021, there were 7,140 million common shares outstanding.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

AT&T INC.
CONSOLIDATED STATEMENTS OF INCOME
Dollars in millions except per share amounts
(Unaudited)
	Three months ended				Six months ended
	June 30,				June 30,
	2021		2020		2021		2020
Operating Revenues
Service	$	38,956	$	37,051	$	77,460	$	75,934
Equipment	5,089		3,899		10,524		7,795
Total operating revenues	44,045		40,950		87,984		83,729
Operating Expenses
Cost of revenues
Equipment	5,341		3,978		10,897		8,070
Broadcast, programming and operations	7,603		5,889		15,141		12,643
Other cost of revenues (exclusive of depreciation and amortization shown separately below)	8,155		8,116		16,148		16,458
Selling, general and administrative	9,361		9,831		18,743		18,591
Asset impairments and abandonments	4,555		2,319		4,555		2,442
Depreciation and amortization	5,761		7,285		11,570		14,507
Total operating expenses	40,776		37,418		77,054		72,711
Operating Income	3,269		3,532		10,930		11,018
Other Income (Expense)
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
Total other income (expense)	(644)		(1,034)		1,759		(2,255)
Income Before Income Taxes	2,625		2,498		12,689		8,763
Income tax expense	751		935		2,873		2,237
Net Income	1,874		1,563		9,816		6,526
Less: Net Income Attributable to Noncontrolling Interest	(304)		(282)		(696)		(635)
Net Income Attributable to AT&T	$	1,570	$	1,281	$	9,120	$	5,891
Less: Preferred Stock Dividends	(56)		(52)		(106)		(84)
Net Income Attributable to Common Stock	$	1,514	$	1,229	$	9,014	$	5,807
Basic Earnings Per Share Attributable to Common Stock	$	0.21	$	0.17	$	1.25	$	0.81
Diluted Earnings Per Share Attributable to Common Stock	$	0.21	$	0.17	$	1.25	$	0.81
Weighted Average Number of Common Shares Outstanding — Basic (in millions)	7,168		7,145		7,165		7,166
Weighted Average Number of Common Shares Outstanding — with Dilution (in millions)	7,200		7,170		7,194		7,192

See Notes to Consolidated Financial Statements.

3

AT&T INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Dollars in millions
(Unaudited)
	Three months ended				Six months ended
	June 30,				June 30,
	2021		2020		2021		2020
Net income	$	1,874	$	1,563	$	9,816	$	6,526
Other comprehensive income (loss), net of tax:
Foreign currency:
Translation adjustment (includes $6, $(8), $2 and $(59) attributable to noncontrolling interest), net of taxes of $41, $(135), $4 and $(197)	301		305		192		(1,549)
Securities:
Net unrealized gains (losses), net of taxes of $6, $5, $(12) and $27	20		14		(35)		80
Reclassification adjustment included in net income, net of taxes of $0, $0, $(1) and $0	(1)		—		(3)		—
Derivative instruments:
Net unrealized gains (losses), net of taxes of $(242), $168, $(106) and $(803)	(909)		631		(398)		(3,026)
Reclassification adjustment included in net income, net of taxes of $6, $4, $12 and $4	22		17		46		17
Defined benefit postretirement plans:
Amortization of net prior service credit included in net income, net of taxes of $(165), $(150), $(330) and $(301)	(507)		(461)		(1,011)		(922)
Other comprehensive income (loss)	(1,074)		506		(1,209)		(5,400)
Total comprehensive income	800		2,069		8,607		1,126
Less: Total comprehensive income attributable to noncontrolling interest	(310)		(274)		(698)		(576)
Total Comprehensive Income Attributable to AT&T	$	490	$	1,795	$	7,909	$	550

See Notes to Consolidated Financial Statements.

4

AT&T INC.
CONSOLIDATED BALANCE SHEETS
Dollars in millions except per share amounts
	June 30,		December 31,
	2021		2020
Assets	(Unaudited)
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	322,259		327,751
Less: accumulated depreciation and amortization	(198,668)		(200,436)
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 ($1 par value, 10,000,000 authorized at June 30, 2021 and December 31, 2020):
Series A (48,000 issued and outstanding at June 30, 2021 and December 31, 2020)	—		—
Series B (20,000 issued and outstanding at June 30, 2021 and December 31, 2020)	—		—
Series C (70,000 issued and outstanding at June 30, 2021 and December 31, 2020)	—		—
Common stock ($1 par value, 14,000,000,000 authorized at June 30, 2021 and December 31, 2020: issued 7,620,748,598 at June 30, 2021 and December 31, 2020)	7,621		7,621
Additional paid-in capital	129,941		130,175
Retained earnings	38,947		37,457
Treasury stock (