XML 25 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information
NOTE 4. SEGMENT INFORMATION
 
Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We have two reportable segments: Communications and Latin America.
 
We also evaluate segment and business unit performance based on EBITDA and/or EBITDA margin, which is defined as operating income excluding depreciation and amortization. EBITDA is used as part of our management reporting and we believe EBITDA to be a relevant and useful measurement to our investors as it measures the cash generation potential of our business units. EBITDA does not give effect to depreciation and amortization expenses incurred in operating income nor is it burdened by cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA margin is EBITDA divided by total revenues.
In the first quarter of 2022, we reclassified into “Corporate” certain administrative costs borne by AT&T where the business units do not influence decision making to conform with the current period presentation. This recast increased Corporate operations and support expenses by approximately $270 for full-year 2021. Correspondingly, this recast lowered administrative expenses at AT&T’s Communications operations and Video (our former U.S. video operations contributed to DIRECTV Entertainment Holdings, LLC (DIRECTV) in July 2021), with no change on a consolidated basis.

The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. Our business strategies reflect bundled product offerings that cut across product lines and utilize shared assets. This segment contains the following business units:
•Mobility provides nationwide wireless service and equipment.
•Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, as well as traditional voice and data services and related equipment to business customers.
•Consumer Wireline provides broadband services, including fiber connections that now provide our multi-gig services to residential customers. Consumer Wireline also provides legacy telephony voice communication services.

The Latin America segment provides wireless services and equipment in Mexico.
 
Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes.

Corporate includes:
•DTV-related retained costs, which are costs previously allocated to the Video business that were retained after the transaction, net of reimbursements from DIRECTV under transition service agreements.
•Parent administration support, which includes costs borne by AT&T where the business units do not influence decision making.
•Securitization fees associated with our sales of receivables (see Note 9).
•Value portfolio, which are businesses no longer integral to our operations or which we no longer actively market.

Other items consist of:
•Video, which includes our former U.S. video operations that were contributed to DIRECTV on July 31, 2021, and our share of DIRECTV’s earnings as equity in net income of affiliates (see Note 11).
•Held-for-sale and other reclassifications, which includes our former Crunchyroll and Government Solutions operations.
•Reclassification of prior service credits, which includes the reclassification of prior service credit amortization, where we present the impact of benefit plan amendments in our business unit results. Prior service credit amortization is presented in “Other Income (Expense) - Net” in the consolidated statements of income and therefore has no impact on consolidated operating income or EBITDA.
•Merger & Significant Items, which includes items associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments, and other items for which the segments are not being evaluated.
•Eliminations and consolidations, removed transactions involving dealings between Mobility and our Video business, prior to the July 31, 2021 separation of Video.
 
“Interest expense” and “Other income (expense) – net,” are managed only on a total company basis and are, accordingly, reflected only in consolidated results.
For the three months ended September 30, 2022
 RevenuesOperations
and Support
Expenses		EBITDADepreciation
and
Amortization		Operating
Income (Loss)
Communications     
Mobility$20,278 $11,817 $8,461 $2,042 $6,419 
Business Wireline5,668 3,444 2,224 1,342 882 
Consumer Wireline3,185 2,055 1,130 800 330 
Total Communications29,131 17,316 11,815 4,184 7,631 
Latin America - Mexico785 684 101 164 (63)
Segment Total29,916 18,000 11,916 4,348 7,568 
Corporate and Other
Corporate:
DTV-related retained costs— 197 (197)139 (336)
Parent administration support(6)266 (272)2 (274)
Securitization fees
15 103 (88)— (88)
Value portfolio118 32 86 9 77 
Total Corporate127 598 (471)150 (621)
Reclassification of prior service credits— 731 (731)— (731)
Merger & Significant Items— 188 (188)16 (204)
Total Corporate and Other127 1,517 (1,390)166 (1,556)
AT&T Inc.$30,043 $19,517 $10,526 $4,514 $6,012 
For the three months ended September 30, 2021
 RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)
Communications     
Mobility$19,138 $11,116 $8,022 $2,035 $5,987 
Business Wireline5,938 3,632 2,306 1,304 1,002 
Consumer Wireline3,142 2,188 954 775 179 
Total Communications28,218 16,936 11,282 4,114 7,168 
Latin America - Mexico724 697 27 157 (130)
Segment Total28,942 17,633 11,309 4,271 7,038 
Corporate and Other
Corporate:
DTV-related retained costs20 69 (49)92 (141)
Parent administration support— 360 (360)12 (372)
Securitization fees
16 1 15 — 15 
Value portfolio152 46 106 10 96 
Total Corporate188 476 (288)114 (402)
Video2,149 1,731 418 44 374 
Held-for-sale and other reclassifications64 31 33 — 33 
Reclassification of prior service credits— 670 (670)— (670)
Merger & Significant Items— 108 (108)28 (136)
Eliminations and consolidations(17)(17)— — — 
Total Corporate and Other2,384 2,999 (615)186 (801)
AT&T Inc.$31,326 $20,632 $10,694 $4,457 $6,237 
For the nine months ended September 30, 2022
 RevenuesOperations
and Support
Expenses		EBITDADepreciation
and
Amortization		Operating
Income (Loss)
Communications     
Mobility$60,279 $35,677 $24,602 $6,118 $18,484 
Business Wireline16,903 10,498 6,405 3,954 2,451 
Consumer Wireline9,520 6,218 3,302 2,351 951 
Total Communications86,702 52,393 34,309 12,423 21,886 
Latin America - Mexico2,283 2,036 247 494 (247)
Segment Total88,985 54,429 34,556 12,917 21,639 
Corporate and Other     
Corporate:
DTV-related retained costs8 532 (524)408 (932)
Parent administration support(24)873 (897)12 (909)
Securitization fees48 263 (215)— (215)
Value portfolio381 106 275 29 246 
Total Corporate413 1,774 (1,361)449 (1,810)
Reclassification of prior service credits— 1,961 (1,961)— (1,961)
Merger & Significant Items— 1,303 (1,303)60 (1,363)
Total Corporate and Other413 5,038 (4,625)509 (5,134)
AT&T Inc.$89,398 $59,467 $29,931 $13,426 $16,505 
For the nine months ended September 30, 2021
 RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)
Communications     
Mobility$57,108 $32,998 $24,110 $6,072 $18,038 
Business Wireline18,036 11,010 7,026 3,875 3,151 
Consumer Wireline9,380 6,280 3,100 2,306 794 
Total Communications84,524 50,288 34,236 12,253 21,983 
Latin America - Mexico2,043 1,984 59 452 (393)
Segment Total86,567 52,272 34,295 12,705 21,590 
Corporate and Other     
Corporate:
DTV-related retained costs20 69 (49)92 (141)
Parent administration support(12)1,147 (1,159)27 (1,186)
Securitization fees44 53 (9)— (9)
Value portfolio494 161 333 30 303 
Total Corporate546 1,430 (884)149 (1,033)
Video15,513 12,666 2,847 356 2,491 
Held-for-sale and other reclassifications453 306 147 — 147 
Reclassification of prior service credits— 2,011 (2,011)— (2,011)
Merger & Significant Items— 39 (39)142 (181)
Eliminations and consolidations(136)(136)— — — 
Total Corporate and Other16,376 16,316 60 647 (587)
AT&T Inc.$102,943 $68,588 $34,355 $13,352 $21,003 
The following table is a reconciliation of Segment Operating Income to “Income from Continuing Operations Before Income Taxes” reported in our consolidated statements of income:
 Three months ended
September 30,		Nine months ended
September 30,
 2022202120222021
Communications$7,631 $7,168 $21,886 $21,983 
Latin America(63)(130)(247)(393)
Segment Operating Income7,568 7,038 21,639 21,590 
Reconciling Items:
Corporate(621)(402)(1,810)(1,033)
Video— 374 — 2,491 
Held-for-sale and other reclassifications — 33 — 147 
Transaction and other costs(58)(8)(341)(43)
Amortization of intangibles acquired(16)(28)(60)(142)
Asset impairments and abandonments and
restructuring
(114)(105)(745)(105)
Benefit-related gains (losses), and other
   employee-related costs
(16)5 (217)109 
Reclassification of prior service credits(731)(670)(1,961)(2,011)
AT&T Operating Income6,012 6,237 16,505 21,003 
Interest Expense1,420 1,627 4,548 5,090 
Equity in net income (loss) of affiliates392 183 1,417 159 
Other income (expense) — net
2,270 1,522 6,729 6,958 
Income from Continuing Operations Before Income Taxes$7,254 $6,315 $20,103 $23,030