Segment Information

12 Months Ended

Dec. 31, 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 revenue.

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 and $1,310 for full-year 2021 and 2020, respectively. Correspondingly, this recast lowered administrative expenses for the Communications segment and Video (our former U.S. video operations contributed to 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 provide our multi-gig services to residential customers in select locations. 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 17).

•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 19).

•Held-for-sale and other reclassifications, which includes our former Crunchyroll, Government Solutions and wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands.

•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.

•Certain 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 restructuring, 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 year ended December 31, 2022
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	81,780	$	49,054	$	32,726	$	8,198	$	24,528
Business Wireline	22,538		13,972		8,566		5,314		3,252
Consumer Wireline	12,749		8,253		4,496		3,169		1,327
Total Communications	117,067		71,279		45,788		16,681		29,107
Latin America - Mexico	3,144		2,812		332		658		(326)
Segment Total	120,211		74,091		46,120		17,339		28,781
Corporate and Other
Corporate:
DTV-related retained costs	8		737		(729)		549		(1,278)
Parent administration support	(32)		1,199		(1,231)		16		(1,247)
Securitization fees	65		419		(354)		—		(354)
Value portfolio	489		139		350		41		309
Total Corporate	530		2,494		(1,964)		606		(2,570)
Reclassification of prior service credits	—		2,691		(2,691)		—		(2,691)
Certain significant items	—		28,031		(28,031)		76		(28,107)
Total Corporate and Other	530		33,216		(32,686)		682		(33,368)
AT&T Inc.	$	120,741	$	107,307	$	13,434	$	18,021	$	(4,587)

For the year ended December 31, 2021
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	78,254	$	46,762	$	31,492	$	8,122	$	23,370
Business Wireline	23,937		14,718		9,219		5,192		4,027
Consumer Wireline	12,539		8,448		4,091		3,095		996
Total Communications	114,730		69,928		44,802		16,409		28,393
Latin America - Mexico	2,747		2,652		95		605		(510)
Segment Total	117,477		72,580		44,897		17,014		27,883
Corporate and Other
Corporate:
DTV-related retained costs	49		243		(194)		236		(430)
Parent administration support	(18)		1,523		(1,541)		36		(1,577)
Securitization fees	61		89		(28)		—		(28)
Value portfolio	639		208		431		40		391
Total Corporate	731		2,063		(1,332)		312		(1,644)
Video	15,513		12,666		2,847		356		2,491
Held-for-sale and other reclassifications	453		310		143		—		143
Reclassification of prior service credits	—		2,680		(2,680)		—		(2,680)
Certain significant items	—		126		(126)		170		(296)
Eliminations and consolidations	(136)		(136)		—		—		—
Total Corporate and Other	16,561		17,709		(1,148)		838		(1,986)
AT&T Inc.	$	134,038	$	90,289	$	43,749	$	17,852	$	25,897

For the year ended December 31, 2020
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	72,564	$	41,677	$	30,887	$	8,086	$	22,801
Business Wireline	25,083		15,068		10,015		5,216		4,799
Consumer Wireline	12,318		7,942		4,376		2,914		1,462
Total Communications	109,965		64,687		45,278		16,216		29,062
Latin America - Mexico	2,562		2,636		(74)		513		(587)
Segment Total	112,527		67,323		45,204		16,729		28,475
Corporate and Other
Corporate:
Parent administration support	(62)		1,681		(1,743)		12		(1,755)
Securitization fees	53		72		(19)		—		(19)
Value portfolio	775		335		440		64		376
Total Corporate	766		2,088		(1,322)		76		(1,398)
Video	28,610		24,174		4,436		2,262		2,174
Held-for-sale and other reclassifications	1,414		718		696		15		681
Reclassification of prior service credits	—		2,442		(2,442)		—		(2,442)
Certain significant items	—		15,677		(15,677)		3,441		(19,118)
Eliminations and consolidations	(267)		(267)		—		—		—
Total Corporate and Other	30,523		44,832		(14,309)		5,794		(20,103)
AT&T Inc.	$	143,050	$	112,155	$	30,895	$	22,523	$	8,372

The following table is a reconciliation of operating income (loss) to “Income (Loss) from Continuing Operations Before Income Taxes” reported in our consolidated statements of income:

	2022		2021		2020
Communications	$	29,107	$	28,393	$	29,062
Latin America	(326)		(510)		(587)
Segment Operating Income	28,781		27,883		28,475
Reconciling Items:
Corporate	(2,570)		(1,644)		(1,398)
Video	—		2,491		2,174
Held-for-sale and other reclassifications	—		143		681
Transaction and other costs	(425)		(41)		(1,064)
Amortization of intangibles acquired	(76)		(170)		(3,427)
Asset impairments and abandonments and restructuring	(27,498)		(213)		(15,687)
Gain on spectrum transaction1	—		—		900
Benefit-related gains (losses)	(108)		128		160
Reclassification of prior service credits	(2,691)		(2,680)		(2,442)
AT&T Operating Income (Loss)	(4,587)		25,897		8,372
Interest Expense	6,108		6,716		7,727
Equity in net income of affiliates	1,791		603		89
Other income (expense) – net	5,810		9,387		(1,088)
Income (Loss) from Continuing Operations Before Income Taxes	$	(3,094)	$	29,171	$	(354)
1Included as a reduction of “Selling, general and administrative” expense in the consolidated statements of income.

The following table sets forth revenues earned from customers, and property, plant and equipment located in different geographic areas:

	2022				2021				2020
	Revenues		Net Property, Plant & Equipment		Revenues		Net Property, Plant & Equipment		Revenues		Net Property, Plant & Equipment
United States	$	116,006	$	123,305	$	129,157	$	117,690	$	138,188	$	116,926
Mexico	3,210		3,718		2,824		3,460		2,651		3,528
Asia/Pacific Rim	592		124		747		136		816		170
Europe	584		201		907		249		1,022		347
Latin America	217		74		251		82		212		94
Other	132		23		152		32		161		39
Total	$	120,741	$	127,445	$	134,038	$	121,649	$	143,050	$	121,104

The following table presents assets, investments in equity affiliates and capital expenditures by segment:

At or for the years ended December 31,	2022						2021
	Assets		Investments in Equity Method Investees		Capital Expenditures		Assets		Investments in Equity Method Investees		Capital Expenditures
Communications	$	471,444	$	—	$	18,962	$	448,757	$	—	$	14,691
Latin America	8,408		—		360		8,874		—		319
Corporate and eliminations1	(76,999)		3,533		304		93,991		6,168		535
Total	$	402,853	$	3,533	$	19,626	$	551,622	$	6,168	$	15,545
1Includes $119,776 of assets from discontinued operations at December 31, 2021.