8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________________________________

FORM 8-K

______________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) April 21, 2022

______________________________________________________

AT&T INC.

(Exact Name of Registrant as Specified in Charter)

______________________________________________________

Delaware	001-08610	43-1301883
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
208 S. Akard St., Dallas, Texas (Address of Principal Executive Offices)		75202 (Zip Code)

Registrant’s telephone number, including area code (210) 821-4105

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	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))

Securities Registered Pursuant to Section 12(b) of the Act

Title of each class	Trading Symbol(s)	Name of each exchange 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. 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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
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
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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.  ☐

Item 8.01 Other Events.

Throughout this document, AT&T Inc. is referred to as “we” or “AT&T.” AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications, media and technology industries.

Overview

We announced on April 21, 2022 that first-quarter 2022 net income attributable to common stock totaled $4.8 billion, or $0.65 per diluted share. First-quarter 2022 income per diluted share included amounts totaling to $(961) million (pre-tax), or $(0.12) per share, resulting from the following significant items: $(0.10) per share for the amortization of merger-related intangible assets, $(0.04) per share of transaction costs, $(0.04) per share from our proportionate share of DIRECTV intangible amortization, $(0.05) per share of other charges, including the impact from the adoption of Accounting Standards Update (ASU) No. 2020-06 (ASU 2020-06), partially offset by an actuarial gain on remeasurement of our pension benefit plan assets and obligations of $0.11. These results compare with a reported net income attributable to common stock of $7.5 billion, or $1.02 per diluted share, in the first quarter of 2021, which reflects our retrospective adoption of ASU 2020-06.

Operating revenues in the first quarter of 2022 were $38.1 billion, down 13.3 percent from the first quarter of 2021, reflecting the impact of our divested Video and Vrio businesses, which were sold in the third and fourth quarter of 2021, respectively, and lower Business Wireline revenues. The declines were partially offset by higher Mobility, and, to a lesser extent, increased WarnerMedia, Consumer Wireline and Mexico revenues.

Operating expenses in the first quarter of 2022 were $32.5 billion, down 10.5 percent, driven by impacts from divested businesses. Expenses in the quarter reflect updates to the expected economic lives of customer relationships, which extended the amortization period of deferred acquisition and fulfillment costs and reduced expenses approximately $135 million, with approximately $60 million recorded to Mobility, $35 million to Business Wireline and $40 million to Consumer Wireline. Effective January 1, 2022, we also extended the estimated economic lives and depreciation period of AT&T owned fiber assets, which decreased depreciation expense approximately $70 million. Partially offsetting the decreases were higher wireless equipment costs, including 3G network shutdown costs, and higher WarnerMedia programming, marketing and selling costs.

Operating income in the first quarter was $5.6 billion compared to $7.7 billion in the comparable 2021 period, and AT&T’s first-quarter operating income margin was 14.8 percent, compared to 17.4 percent in the comparable 2021 period.

Cash from operating activities in the first quarter of 2022 was $5.7 billion, down $4.2 billion when compared to 2021, reflecting lower receivable securitization, increased cash spend for content and higher bonus payouts. Total cash paid for WarnerMedia's content investment in the first quarter of 2022 was $5.1 billion ($0.6 billion higher than the prior-year comparable period). Capital expenditures in the first quarter of 2022 were $4.7 billion, and when including $1.6 billion cash paid for vendor financing, capital investment was $6.3 billion, compared to prior-year first quarter capital investment of $5.7 billion (capital expenditures of $4.0 billion and vendor financing of $1.7 billion).

Segment Summary

We analyze our segments based on, among other things, segment contribution, which consists of operating income, excluding acquisition-related costs and other significant items, and equity in net income (loss) of affiliates for investments managed within each segment. Our reportable segments are: Communications, WarnerMedia and Latin America.

For the quarter ended March 31, 2022, to conform with the current period presentation, we have reclassified into "Corporate" certain administrative costs borne by AT&T where the business units do not influence decision making. This recast increased Corporate operations and support expenses by approximately $100 million in the first quarter of 2021 (full-year 2021 increase of $270 million). Correspondingly, this recast lowered administrative expenses at AT&T's Communications operations, Video and WarnerMedia with no change on a consolidated basis.

Communications

Our Communications segment consists of our Mobility, Business Wireline and Consumer Wireline business units.

First-quarter 2022 operating revenues were $28.9 billion, up 2.5 percent versus first-quarter 2021, with segment operating contribution of $7.0 billion, down 5.4 percent versus the year-ago quarter. The Communications segment operating income margin was 24.3 percent, compared to 26.4 percent in the year-earlier quarter.

1

Mobility

Mobility revenues for the first quarter of 2022 were $20.1 billion, up 5.5 percent versus the first quarter of 2021, driven by service revenue growth from subscriber gains, and equipment revenue growth from higher priced smartphone sales. Mobility operating expenses totaled $14.2 billion, up 9.5 percent versus the first quarter of 2021 due to increased equipment costs, including 3G network shutdown costs, higher costs associated with bundling HBO Max and the elimination of CAF II government credits. Mobility’s operating income margin was 29.2 percent compared to 31.8 percent in the year-ago quarter.

In our Mobility business unit, during the first quarter of 2022, we reported a net gain of 5.5 million wireless subscribers. At March 31, 2022, wireless subscribers totaled 196.6 million (including approximately 3.3 million FirstNet connections) compared to 186.1 million at March 31, 2021. Wireless subscribers at March 31, 2022, include a reduction of 10.7 million subscribers and connections (899,000 postpaid, including 438,000 phones, 234,000 prepaid, 749,000 reseller and 8.8 million connected devices) resulting from our 3G network shutdown in February 2022.

During the first quarter, total phone net adds (postpaid and prepaid) were 804,000 with total net adds by subscriber category as follows:

•Postpaid subscriber net adds were 965,000, with phone net adds of 691,000 and additions from wearables and non-tablet computing devices.

•Prepaid subscriber net adds were 116,000, with phone net adds of 113,000.

•Reseller net losses were 17,000.

•Connected device net adds were 4.5 million, 1.5 million of which were primarily attributable to wholesale connected cars.

For the quarter ended March 31, 2022, postpaid phone-only ARPU decreased 0.2 percent versus the year-earlier quarter.

Postpaid phone-only churn was 0.79 percent compared to 0.76 percent in the first quarter of 2021. Total postpaid churn was 0.94 percent compared to 0.93 percent in the year-ago quarter.

Business Wireline

Business Wireline revenues for the first quarter of 2022 were $5.6 billion, down 6.7 percent versus the year-ago quarter, primarily due to lower demand for legacy voice and data services and a strategic decision to deemphasize non-core services. Business Wireline operating expenses totaled $4.8 billion, down 3.7 percent when compared to the first quarter of 2021 due to ongoing operational cost efficiencies and lower amortization of deferred fulfillment costs, partially offset by higher depreciation expense. Business Wireline operating income margin was 15.2 percent compared to 17.9 percent in the year-earlier quarter.

Consumer Wireline

Consumer Wireline revenues for the first quarter of 2022 were $3.2 billion, up 2.0 percent versus the year-ago quarter, driven by growth in broadband revenues attributable to fiber growth, partially offset by declines in legacy voice and data services. Consumer Wireline operating expenses totaled $2.8 billion, up 1.9 percent versus the first quarter of 2021, largely driven by higher advertising costs and the elimination of CAF II government credits. These expense increases were partially offset by lower amortization of deferred fulfillment costs. Consumer Wireline operating income margin was 10.0 percent compared to 9.9 percent in the year-earlier quarter.

At March 31, 2022, Consumer Wireline had approximately 13.9 million broadband connections compared to 13.8 million at March 31, 2021. During the first quarter, broadband subscriber net adds were 5,000, with fiber broadband net adds of 289,000. Total broadband and DSL connection were 14.1 million at March 31, 2022, compared to 14.1 million at March 31, 2021.

WarnerMedia

WarnerMedia revenues for the first quarter of 2022 were $8.7 billion, up 2.5 percent versus the year-ago quarter, driven by increased subscription revenues and higher content and other revenues, partially offset by lower advertising revenues. Subscription revenues increased primarily due to growth of HBO Max subscribers. Content and other revenues increased driven by higher theatrical revenues, with higher HBO Max licensing, partially offset by lower TV licensing. Advertising revenues declined from lower linear audiences and lower political ad spending, partially offset by higher sports.

WarnerMedia operating expenses totaled $7.4 billion, up 13.0 percent when compared to the first quarter of 2021, driven by higher marketing costs, programming costs, and incremental selling costs associated with DIRECTV advertising revenue sharing arrangements.

WarnerMedia segment operating contribution was $1.3 billion, down 35.7 percent. The WarnerMedia segment operating income margin was 15.1 percent, compared to 23.0 percent in the year-earlier quarter.

2

Latin America

Our Latin America segment consists of our Mexico business unit, and prior to the November 2021 disposition of Vrio, our Vrio business unit, and is subject to foreign currency fluctuations.

First-quarter 2022 operating revenues were $0.7 billion, down 49.8 percent versus the prior year, reflecting the sale of Vrio in the fourth quarter of 2021. Segment operating contribution was $(102) million, versus $(173) million in the comparable 2021 period. The Latin America operating income margin was (14.8) percent, compared to (12.3) percent in the year-earlier quarter.

Mexico

Revenues were $690 million, up 9.4 percent when compared to the first quarter of 2021, primarily due to increased service revenues driven by growth in other services and the subscriber base. Operating expenses were $792 million, up 3.5 percent, driven by increased depreciation expense from higher in-service assets and equipment costs from customer growth. Mexico’s operating income margin was (14.8) percent, compared to (21.2) percent in the year-earlier quarter.

We had approximately 20.5 million Mexico wireless subscribers at March 31, 2022 compared to 19.0 million at March 31, 2021. During the first quarter of 2022, we had postpaid net adds of 3,000 and prepaid net adds of 178,000.

Subsequent Event

On April 8, 2022, we completed the separation of our WarnerMedia business in a Reverse Morris Trust transaction, under which Magallanes, Inc., which held the WarnerMedia business (Spinco), was distributed to AT&T stockholders via a pro rata dividend, followed by the combination of Spinco with a subsidiary of Discovery, Inc., which was renamed Warner Bros. Discovery, Inc. (WBD). Each AT&T shareholder was entitled to receive 0.241917 shares of WBD common stock for each share of AT&T common stock held as of the record date.

With the separation and distribution of WarnerMedia, the WarnerMedia business will meet the criteria for discontinued operations for our second-quarter 2022 reporting. For discontinued operations, we evaluated transactions completed during 2021 that were components of AT&T’s single plan of a strategic shift, including dispositions that may not have individually met the criteria due to materiality, and have determined discontinued operations to be comprised of the WarnerMedia, Vrio, Xandr and Playdemic Ltd. transactions. Beginning with the second quarter of 2022, the transactions will be reflected in our historical financial statements as discontinued operations.

CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS

Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this filing based on new information or otherwise.

3

Item 9.01 Financial Statements and Exhibits.

The following exhibits are furnished as part of this report:

(d)	Exhibits
	99.1	AT&T Inc. selected financial statements and operating data.
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

4

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AT&T INC.
Date: April 21, 2022	By: /s/ Debra L. Dial                                  .        Debra L. Dial  Senior Vice President and Controller

5

EX-99.1

AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	First Quarter				Percent
	2022		2021		Change
Operating Revenues
Service	$	32,392	$	38,504	(15.9)	%
Equipment	5,713		5,435		5.1	%
Total Operating Revenues	38,105		43,939		(13.3)	%
Operating Expenses
Cost of revenues
Equipment	6,038		5,556		8.7	%
Broadcast, programming and operations	4,313		7,538		(42.8)	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)	7,206		7,993		(9.8)	%
Selling, general and administrative	9,368		9,382		(0.1)	%
Depreciation and amortization	5,539		5,809		(4.6)	%
Total Operating Expenses	32,464		36,278		(10.5)	%
Operating Income	5,641		7,661		(26.4)	%
Interest Expense	1,722		1,870		(7.9)	%
Equity in Net Income (Loss) of Affiliates	501		52		—	%
Other Income (Expense) — Net	2,187		4,221		(48.2)	%
Income Before Income Taxes	6,607		10,064		(34.4)	%
Income Tax Expense	1,443		2,122		(32.0)	%
Net Income	5,164		7,942		(35.0)	%
Less: Net Income Attributable to Noncontrolling Interest	(354)		(392)		9.7	%
Net Income Attributable to AT&T	$	4,810	$	7,550	(36.3)	%
Less: Preferred Stock Dividends	(48)		(50)		4.0	%
Net Income Attributable to Common Stock	$	4,762	$	7,500	(36.5)	%
Basic Earnings Per Share Attributable to Common Stock	$	0.66	$	1.04	(36.5)	%
Weighted Average Common Shares Outstanding (000,000)	7,184		7,161		0.3	%
Diluted Earnings Per Share Attributable to Common Stock1	$	0.65	$	1.02	(36.3)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)1	7,556		7,482		1.0	%
1Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06

1

AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Unaudited	Mar. 31,		Dec. 31,
	2022		2021
Assets
Current Assets
Cash and cash equivalents	$	38,565	$	21,169
Accounts receivable – net of related allowances for credit loss of $788 and $771	17,218		17,571
Inventories	3,153		3,464
Prepaid and other current assets	17,920		17,793
Total current assets	76,856		59,997
Noncurrent Inventories and Theatrical Film and Television Production Costs	19,803		18,983
Property, Plant and Equipment – Net	127,159		125,904
Goodwill	133,247		133,223
Licenses – Net	114,107		113,830
Trademarks and Trade Names – Net	21,781		21,938
Distribution Networks – Net	11,486		11,942
Other Intangible Assets – Net	11,452		11,783
Investments in and Advances to Equity Affiliates	5,943		7,274
Operating Lease Right-Of-Use Assets	23,941		24,180
Deposits on Wireless Licenses	9,129		—
Other Assets	22,291		22,568
Total Assets	$	577,195	$	551,622
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	27,333	$	24,630
Note payable to DIRECTV	1,047		1,245
Accounts payable and accrued liabilities	46,845		50,661
Advanced billings and customer deposits	5,183		5,303
Dividends payable	2,086		3,749
Total current liabilities	82,494		85,588
Long-Term Debt	180,225		152,724
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	65,963		65,226
Postemployment benefit obligation	11,294		12,649
Operating lease liabilities	20,917		21,261
Other noncurrent liabilities	29,746		30,223
Noncurrent portion of note payable to DIRECTV	—		96
Total deferred credits and other noncurrent liabilities	127,920		129,455
Stockholders’ Equity
Preferred stock	—		—
Common stock	7,621		7,621
Additional paid-in capital	129,637		130,112
Retained earnings	45,041		42,350
Treasury stock	(16,553)		(17,280)
Accumulated other comprehensive income	3,290		3,529
Noncontrolling interest	17,520		17,523
Total stockholders’ equity	186,556		183,855
Total Liabilities and Stockholders’ Equity	$	577,195	$	551,622

2

AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	First Quarter
	2022		2021
Operating Activities
Net income	$	5,164	$	7,942
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,539		5,809
Amortization of film and television costs	3,009		2,886
Distributed (undistributed) earnings from investments in equity affiliates	26		(47)
Provision for uncollectible accounts	460		321
Deferred income tax expense	932		1,848
Net (gain) loss on investments, net of impairments	93		(119)
Pension and postretirement benefit expense (credit)	(937)		(974)
Actuarial (gain) loss on pension and postretirement benefits	(1,053)		(2,844)
Changes in operating assets and liabilities:
Receivables	(228)		751
Other current assets, inventories and theatrical film and television production costs	(3,261)		(3,518)
Accounts payable and other accrued liabilities	(4,031)		(3,060)
Equipment installment receivables and related sales	541		1,190
Deferred customer contract acquisition and fulfillment costs	(259)		244
Postretirement claims and contributions	(97)		(343)
Other - net	(166)		(159)
Total adjustments	568		1,985
Net Cash Provided by Operating Activities	5,732		9,927
Investing Activities
Capital expenditures	(4,748)		(4,033)
Acquisitions, net of cash acquired	(9,244)		(22,884)
Dispositions	11		51
Distributions from DIRECTV in excess of cumulative equity in earnings	1,315		—
Other - net	15		14
Net Cash Used in Investing Activities	(12,651)		(26,852)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less	2,285		687
Issuance of other short-term borrowings	2,593		15,485
Repayment of other short-term borrowings	(3,407)		—
Issuance of long-term debt	30,296		9,097
Repayment of long-term debt	(802)		(902)
Repayment of note payable to DIRECTV	(294)		—
Payment of vendor financing	(1,566)		(1,690)
Purchase of treasury stock	(197)		(176)
Issuance of treasury stock	26		63
Dividends paid	(3,749)		(3,741)
Other - net	(934)		(340)
Net Cash Provided by Financing Activities	24,251		18,483
Net increase in cash and cash equivalents and restricted cash	17,332		1,558
Cash and cash equivalents and restricted cash beginning of year	21,316		9,870
Cash and Cash Equivalents and Restricted Cash End of Period	$	38,648	$	11,428

3

AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited	First Quarter						Percent
	2022			2021			Change
Capital expenditures
Purchase of property and equipment	$	4,712		$	3,972		18.6	%
Interest during construction - capital expenditures	36			61			(41.0)	%
Total Capital Expenditures	$	4,748		$	4,033		17.7	%
Acquisition, net of cash acquired
Business acquisitions	$	—		$	8		—	%
Spectrum acquisitions	8,956			22,876			(60.8)	%
Interest during construction - spectrum	288			—			—	%
Total Acquisitions	$	9,244		$	22,884		(59.6)	%
Cash Paid for Programming and Produced Film/TV Content	$	5,149		$	4,535		13.5	%
Dividends Declared per Common Share	$	0.28		$	0.52		(46.2)	%
End of Period Common Shares Outstanding (000,000)	7,159			7,140			0.3	%
Debt Ratio	52.7		%	49.6		%	310	BP
Total Employees	203,160			228,470			(11.1)	%

4

COMMUNICATIONS SEGMENT

The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline, and Consumer Wireline.

Results have been recast to refine the allocation of shared infrastructure costs between the Communications segment and Corporate and Other.

Segment Results
Dollars in millions
Unaudited	First Quarter				Percent
	2022		2021		Change
Segment Operating Revenues
Mobility	$	20,075	$	19,034	5.5	%
Business Wireline	5,640		6,046		(6.7)	%
Consumer Wireline	3,161		3,098		2.0	%
Total Segment Operating Revenues	28,876		28,178		2.5	%
Segment Operating Contribution
Mobility	5,853		6,044		(3.2)	%
Business Wireline	859		1,080		(20.5)	%
Consumer Wireline	317		307		3.3	%
Total Segment Operating Contribution	$	7,029	$	7,431	(5.4)	%

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,		Percent
	2022	2021	Change
Broadband Connections
Broadband	15,130	14,908	1.5	%
DSL	403	527	(23.5)	%
Total Broadband Connections	15,533	15,435	0.6	%
Voice Connections
Retail Consumer Switched Access Lines	5,956	6,988	(14.8)	%
U-verse Consumer VoIP Connections	3,227	3,684	(12.4)	%
Total Retail Voice Connections	9,183	10,672	(14.0)	%
	First Quarter		Percent
	2022	2021	Change
Broadband Net Additions
Broadband	56	90	(37.8)	%
DSL	(27)	(39)	30.8	%
Total Broadband Net Additions	29	51	(43.1)	%

5

Mobility

Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
Unaudited	First Quarter						Percent
	2022			2021			Change
Operating Revenues
Service	$	14,724		$	14,048		4.8	%
Equipment	5,351			4,986			7.3	%
Total Operating Revenues	20,075			19,034			5.5	%
Operating Expenses
Operations and support	12,163			10,976			10.8	%
Depreciation and amortization	2,059			2,014			2.2	%
Total Operating Expenses	14,222			12,990			9.5	%
Operating Income	5,853			6,044			(3.2)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%
Operating Contribution	$	5,853		$	6,044		(3.2)	%
Operating Income Margin	29.2		%	31.8		%	(260)	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,						Percent
	2022			2021			Change
Mobility Subscribers
Postpaid	81,639			77,934			4.8	%
Postpaid phone	67,518			64,752			4.3	%
Prepaid	18,859			18,387			2.6	%
Reseller	5,383			6,501			(17.2)	%
Connected Devices	90,735			83,286			8.9	%
Total Mobility Subscribers1	196,616			186,108			5.6	%
1Wireless subscribers at March 31, 2022 includes a reduction of 10.7 million subscribers and connections (899 postpaid, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8.8 million connected devices) resulting from our 3G network shutdown in February 2022.
	First Quarter						Percent
	2022			2021			Change
Mobility Net Additions
Postpaid Phone Net Additions	691			595			16.1	%
Total Phone Net Additions	804			802			0.2	%
Postpaid	965			823			17.3	%
Prepaid	116			279			(58.4)	%
Reseller	(17)			(68)			75.0	%
Connected Devices	4,468			2,517			77.5	%
Total Mobility Net Additions	5,532			3,551			55.8	%
Postpaid Churn	0.94		%	0.93		%	1 BP
Postpaid Phone-Only Churn	0.79		%	0.76		%	3 BP

6

Business Wireline

Business Wireline provides advanced IP-based services, as well as traditional voice and data services and related equipment to business customers.

Business Wireline Results
Dollars in millions
Unaudited	First Quarter						Percent
	2022			2021			Change
Operating Revenues
Service	$	5,478		$	5,872		(6.7)	%
Equipment	162			174			(6.9)	%
Total Operating Revenues	5,640			6,046			(6.7)	%
Operating Expenses
Operations and support	3,482			3,688			(5.6)	%
Depreciation and amortization	1,299			1,278			1.6	%
Total Operating Expenses	4,781			4,966			(3.7)	%
Operating Income	859			1,080			(20.5)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%
Operating Contribution	$	859		$	1,080		(20.5)	%
Operating Income Margin	15.2		%	17.9		%	(270)	BP

7

Consumer Wireline

Consumer Wireline provides broadband, including fiber, and legacy telephony voice communication services to residential customers.

Consumer Wireline Results
Dollars in millions
Unaudited	First Quarter						Percent
	2022			2021			Change
Operating Revenues
Broadband	$	2,355		$	2,205		6.8	%
Legacy voice and data services	460			519			(11.4)	%
Other service and equipment	346			374			(7.5)	%
Total Operating Revenues	3,161			3,098			2.0	%
Operating Expenses
Operations and support	2,078			2,029			2.4	%
Depreciation and amortization	766			762			0.5	%
Total Operating Expenses	2,844			2,791			1.9	%
Operating Income	317			307			3.3	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%
Operating Contribution	$	317		$	307		3.3	%
Operating Income Margin	10.0		%	9.9		%	10	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,						Percent
	2022			2021			Change
Broadband Connections
Total Broadband and DSL Connections	14,148			14,146			—	%
Broadband	13,850			13,767			0.6	%
Fiber Broadband Connections	6,281			5,186			21.1	%
Voice Connections
Retail Consumer Switched Access Lines	2,324			2,740			(15.2)	%
U-verse Consumer VoIP Connections	2,628			3,096			(15.1)	%
Total Retail Consumer Voice Connections	4,952			5,836			(15.1)	%
	First Quarter						Percent
	2022			2021			Change
Broadband Net Additions
Total Broadband and DSL Net Additions	(12)			46			—	%
Broadband	5			74			(93.2)	%
Fiber Broadband Net Additions	289			235			23.0	%

8

Business Solutions

As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile solutions to serving our business customers.

Business Solutions Results
Dollars in millions
Unaudited	First Quarter						Percent
	2022			2021			Change
Operating Revenues
Wireless service	$	2,134		$	1,969		8.4	%
Wireline service	5,478			5,872			(6.7)	%
Wireless equipment	899			790			13.8	%
Wireline equipment	162			174			(6.9)	%
Total Operating Revenues	8,673			8,805			(1.5)	%
Operating Expenses
Operations and support	5,608			5,519			1.6	%
Depreciation and amortization	1,660			1,614			2.9	%
Total Operating Expenses	7,268			7,133			1.9	%
Operating Income	1,405			1,672			(16.0)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%
Operating Contribution	$	1,405		$	1,672		(16.0)	%
Operating Income Margin	16.2		%	19.0		%	(280)	BP

9

WARNERMEDIA SEGMENT

The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. WarnerMedia content is distributed through basic networks, Direct-to-Consumer (DTC) or theatrical, TV content and games licensing. Segment results also include Xandr advertising and Otter Media Holdings, prior to our substantial disposal of the latter in the third quarter of 2021. Additional information is provided as part of the earnings material on the company’s Investor Relations website.

On April 8, 2022, we completed the WarnerMedia/Discovery transaction. With the separation and distribution of WarnerMedia, the WarnerMedia business will meet the criteria for discontinued operations for our second-quarter 2022 reporting.

Segment Results
Dollars in millions
Unaudited	First Quarter				Percent
	2022		2021		Change
Segment Operating Revenues
Subscription	$	3,997	$	3,830	4.4	%
Content and other	3,059		2,959		3.4	%
Advertising	1,685		1,737		(3.0)	%
Total Segment Operating Revenues	8,741		8,526		2.5	%
Direct Costs
Programming	3,976		3,774		5.4	%
Marketing	1,096		850		28.9	%
Other	869		813		6.9	%
Selling, general and administrative	1,354		966		40.2	%
Depreciation and amortization	127		163		(22.1)	%
Total Operating Expenses	7,422		6,566		13.0	%
Operating Income	1,319		1,960		(32.7)	%
Equity in Net Income (Loss) of Affiliates	(13)		70		—	%
Total Segment Operating Contribution	$	1,306	$	2,030	(35.7)	%

10

LATIN AMERICA SEGMENT

The Latin America segment provides entertainment and wireless service outside of the U.S. Our international subsidiaries conduct business in their local currency and operating results are converted to U.S. dollars using official exchange rates. The Latin America segment contains two business units: Mexico and Vrio, which was sold in November 2021.

Segment Results
Dollars in millions
Unaudited	First Quarter				Percent
	2022		2021		Change
Segment Operating Revenues
Mexico	$	690	$	631	9.4	%
Vrio	—		743		—	%
Total Segment Operating Revenues	690		1,374		(49.8)	%
Segment Operating Contribution
Mexico	(102)		(134)		23.9	%
Vrio	—		(39)		—	%
Total Segment Operating Contribution	$	(102)	$	(173)	41.0	%

11

Mexico

Mexico provides wireless services and equipment to customers in Mexico.

Mexico Results
Dollars in millions
Unaudited	First Quarter						Percent
	2022			2021			Change
Operating Revenues
Wireless service	$	490		$	439		11.6	%
Wireless equipment	200			192			4.2	%
Total Operating Revenues	690			631			9.4	%
Operating Expenses
Operations and support	631			620			1.8	%
Depreciation and amortization	161			145			11.0	%
Total Operating Expenses	792			765			3.5	%
Operating Income (Loss)	(102)			(134)			23.9	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%
Operating Contribution	$	(102)		$	(134)		23.9	%
Operating Income Margin	(14.8)		%	(21.2)		%	640	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,						Percent
	2022			2021			Change
Mexico Wireless Subscribers
Postpaid	4,810			4,725			1.8	%
Prepaid	15,235			13,756			10.8	%
Reseller	458			500			(8.4)	%
Total Mexico Wireless Subscribers	20,503			18,981			8.0	%
	First Quarter						Percent
	2022			2021			Change
Mexico Wireless Net Additions
Postpaid	3			29			(89.7)	%
Prepaid	178			(2)			—	%
Reseller	(40)			11			—	%
Total Mexico Wireless Net Additions	141			38			—	%

12

SUPPLEMENTAL SEGMENT RECONCILIATION

Three Months Ended
Dollars in millions
Unaudited
March 31, 2022
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Operating Contribution
Communications
Mobility	$	20,075	$	12,163	$	7,912	$	2,059	$	5,853	$	—	$	5,853
Business Wireline	5,640		3,482		2,158		1,299		859		—		859
Consumer Wireline	3,161		2,078		1,083		766		317		—		317
Total Communications	28,876		17,723		11,153		4,124		7,029		—		7,029
WarnerMedia	8,741		7,295		1,446		127		1,319		(13)		1,306
Latin America - Mexico	690		631		59		161		(102)		—		(102)
Segment Total	38,307		25,649		12,658		4,412		8,246		(13)		8,233
Corporate and Other
Corporate:
DTV stranded costs	8		128		(120)		134		(254)		—		(254)
Parent administration    support	(12)		312		(324)		4		(328)		(8)		(336)
Securitization fees	16		82		(66)		—		(66)		—		(66)
Value portfolio	118		24		94		9		85		—		85
Total Corporate	130		546		(416)		147		(563)		(8)		(571)
Video	—		—		—		—		—		522		522
Held-for-sale and other reclassifications	29		16		13		9		4		—		4
Reclassification of prior service credits	—		617		(617)		—		(617)		—		(617)
Merger & Significant Items	—		458		(458)		971		(1,429)		—		(1,429)
Eliminations and consolidations	(361)		(361)		—		—		—		—		—
Total Corporate and Other	(202)		1,276		(1,478)		1,127		(2,605)		514		(2,091)
AT&T Inc.	$	38,105	$	26,925	$	11,180	$	5,539	$	5,641	$	501	$	6,142

13

Three Months Ended
Dollars in millions
Unaudited
March 31, 2021
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Operating Contribution
Communications
Mobility	$	19,034	$	10,976	$	8,058	$	2,014	$	6,044	$	—	$	6,044
Business Wireline	6,046		3,688		2,358		1,278		1,080		—		1,080
Consumer Wireline	3,098		2,029		1,069		762		307		—		307
Total Communications	28,178		16,693		11,485		4,054		7,431		—		7,431
WarnerMedia	8,526		6,403		2,123		163		1,960		70		2,030
Latin America
Mexico	631		620		11		145		(134)		—		(134)
Vrio	743		661		82		117		(35)		(4)		(39)
Total Latin America	1,374		1,281		93		262		(169)		(4)		(173)
Segment Total	38,078		24,377		13,701		4,479		9,222		66		9,288
Corporate and Other
Corporate:
DTV stranded costs	—		—		—		—		—		—		—
Parent administration    support	(12)		334		(346)		6		(352)		(9)		(361)
Securitization fees	13		40		(27)		—		(27)		—		(27)
Value portfolio	163		41		122		9		113		—		113
Total Corporate	164		415		(251)		15		(266)		(9)		(275)
Video	6,725		5,660		1,065		164		901		—		901
Held-for-sale and other reclassifications	262		228		34		20		14		(5)		9
Reclassification of prior service credits	—		669		(669)		—		(669)		—		(669)
Merger & Significant Items	—		61		(61)		1,131		(1,192)		—		(1,192)
Eliminations and consolidations	(1,290)		(941)		(349)		—		(349)		—		(349)
Total Corporate and Other	5,861		6,092		(231)		1,330		(1,561)		(14)		(1,575)
AT&T Inc.	$	43,939	$	30,469	$	13,470	$	5,809	$	7,661	$	52	$	7,713

14

XML

Cover	Apr. 21, 2022
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Apr. 21, 2022
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Entity Address, Address Line One	208 S. Akard St.
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75202
City Area Code	210
Local Phone Number	821-4105
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000732717
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Common Shares (Par Value $1.00 Per Share)
Entity Information [Line Items]
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Trading Symbol	T
Security Exchange Name	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A
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Security Exchange Name	NYSE
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Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 1.450% Global Notes due June 1, 2022
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 2.500% Global Notes due March 15, 2023
Entity Information [Line Items]
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AT&T Inc. 2.750% Global Notes due May 19, 2023
Entity Information [Line Items]
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AT&T Inc. Floating Rate Global Notes due September 5, 2023
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AT&T Inc. 1.050% Global Notes due September 5, 2023
Entity Information [Line Items]
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AT&T Inc. 1.300% Global Notes due September 5, 2023
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AT&T Inc. 1.950% Global Notes due September 15, 2023
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 2.400% Global Notes due March 15, 2024
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 3.500% Global Notes due December 17, 2025
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 0.250% Global Notes due March 4, 2026
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Security Exchange Name	NYSE
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AT&T Inc. 2.900% Global Notes due December 4, 2026
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 1.600% Global Notes due May 19, 2028
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 2.350% Global Notes due September 5, 2029
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 4.375% Global Notes due September 14, 2029
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Security Exchange Name	NYSE
AT&T Inc. 2.600% Global Notes due December 17, 2029
Entity Information [Line Items]
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AT&T Inc. 2.050% Global Notes due May 19, 2032
Entity Information [Line Items]
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AT&T Inc. 3.550% Global Notes due December 17, 2032
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 5.200% Global Notes due November 18, 2033
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 3.375% Global Notes due March 15, 2034
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 2.450% Global Notes due March 15, 2035
Entity Information [Line Items]
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Trading Symbol	T 35
Security Exchange Name	NYSE
AT&T Inc. 3.150% Global Notes due September 4, 2036
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 2.600% Global Notes due May 19, 2038
Entity Information [Line Items]
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Security Exchange Name	NYSE
AT&T Inc. 1.800% Global Notes due September 14, 2039
Entity Information [Line Items]
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Trading Symbol	T 39B
Security Exchange Name	NYSE
AT&T Inc. 7.000% Global Notes due April 30, 2040
Entity Information [Line Items]
Title of 12(b) Security	AT&T Inc. 7.000% Global Notes due April 30, 2040
Trading Symbol	T 40
Security Exchange Name	NYSE
AT&T Inc. 4.250% Global Notes due June 1, 2043
Entity Information [Line Items]
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Trading Symbol	T 43
Security Exchange Name	NYSE
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Entity Information [Line Items]
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Trading Symbol	T 44
Security Exchange Name	NYSE
AT&T Inc. 4.000% Global Notes due June 1, 2049
Entity Information [Line Items]
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Trading Symbol	T 49A
Security Exchange Name	NYSE
AT&T Inc. 4.250% Global Notes due March 1, 2050
Entity Information [Line Items]
Title of 12(b) Security	AT&T Inc. 4.250% Global Notes due March 1, 2050
Trading Symbol	T 50
Security Exchange Name	NYSE
AT&T Inc. 3.750% Global Notes due September 1, 2050
Entity Information [Line Items]
Title of 12(b) Security	AT&T Inc. 3.750% Global Notes due September 1, 2050
Trading Symbol	T 50A
Security Exchange Name	NYSE
AT&T Inc. 5.350% Global Notes due November 1, 2066
Entity Information [Line Items]
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Security Exchange Name	NYSE
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Entity Information [Line Items]
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Security Exchange Name	NYSE