t-20230331falseQ12023--12-3100007327173021http://fasb.org/us-gaap/2022#AccountsPayableAndAccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#AccountsPayableAndAccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#OperatingLeaseLiabilityNoncurrenthttp://fasb.org/us-gaap/2022#OperatingLeaseLiabilityNoncurrenthttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2022#DebtCurrenthttp://fasb.org/us-gaap/2022#DebtCurrenthttp://fasb.org/us-gaap/2022#LongTermDebtAndCapitalLeaseObligationshttp://fasb.org/us-gaap/2022#LongTermDebtAndCapitalLeaseObligations00007327172023-01-012023-03-310000732717us-gaap:CommonStockMember2023-01-012023-03-310000732717us-gaap:SeriesAPreferredStockMember2023-01-012023-03-310000732717us-gaap:SeriesCPreferredStockMember2023-01-012023-03-310000732717t:ATTInc2500GlobalNotesDueMarch152023Member2023-01-012023-03-310000732717t:ATTInc2750GlobalNotesDueMay192023Member2023-01-012023-03-310000732717t:ATTIncFloatingRateDueSeptember52023Member2023-01-012023-03-310000732717t:ATTInc1050GlobalNotesDueSeptember52023Member2023-01-012023-03-310000732717t:ATTInc1300GlobalNotesDueSeptember52023Member2023-01-012023-03-310000732717t:ATTInc1950GlobalNotesDueSeptember152023Member2023-01-012023-03-310000732717t:ATTInc2400GlobalNotesDueMarch152024Member2023-01-012023-03-310000732717t:ATTIncFloatingRateGlobalNotesMarch6Due2025Member2023-01-012023-03-310000732717t:ATTInc3500GlobalNotesDueDecember172025Member2023-01-012023-03-310000732717t:ATTInc0250GlobalNotesDueMarch42026Member2023-01-012023-03-310000732717t:ATTInc1800GlobalNotesDueSeptember52026Member2023-01-012023-03-310000732717t:ATTInc2900PercentGlobalNotesDueDecember42026Member2023-01-012023-03-310000732717t:AttInc1600GlobalNotesDueMay192028Member2023-01-012023-03-310000732717t:ATTInc2350GlobalNotesDueSeptember52029Member2023-01-012023-03-310000732717t:ATTInc4375GlobalNotesDueSeptember142029Member2023-01-012023-03-310000732717t:ATTInc2600GlobalNotesDueDecember172029Member2023-01-012023-03-310000732717t:ATTInc0800GlobalNotesDueMarch42030Member2023-01-012023-03-310000732717t:AttInc2050GlobalNotesDueMay192032Member2023-01-012023-03-310000732717t:ATTInc3550GlobalNotesDueDecember172032Member2023-01-012023-03-310000732717t:ATTInc5200GlobalNotesDueNovember182033Member2023-01-012023-03-310000732717t:ATTInc3375GlobalNotesDueMarch152034Member2023-01-012023-03-310000732717t:ATTInc2450GlobalNotesDueMarch152035Member2023-01-012023-03-310000732717t:ATTInc3150GlobalNotesDueSeptember42036Member2023-01-012023-03-310000732717t:AttInc2600GlobalNotesDueMay192038Member2023-01-012023-03-310000732717t:ATTInc1800GlobalNotesDueSeptember142039Member2023-01-012023-03-310000732717t:ATTInc7000GlobalNotesDueApril302040Member2023-01-012023-03-310000732717t:ATTInc4250GlobalNotesDueJune12043Member2023-01-012023-03-310000732717t:ATTInc4875GlobalNotesDueJune12044Member2023-01-012023-03-310000732717t:AttInc4000GlobalNotesDueJune12049Member2023-01-012023-03-310000732717t:AttInc4250GlobalNotesDueMarch12050Member2023-01-012023-03-310000732717t:AttInc3750GlobalNotesDueSeptember12050Member2023-01-012023-03-310000732717t:ATTInc5350GlobalNotesDueNovember12066Member2023-01-012023-03-310000732717t:ATTInc5625GlobalNotesDueAugust12067Member2023-01-012023-03-3100007327172023-04-25xbrli:shares0000732717t:ServiceAndOtherMember2023-01-012023-03-31iso4217:USD0000732717t:ServiceAndOtherMember2022-01-012022-03-310000732717us-gaap:ProductMember2023-01-012023-03-310000732717us-gaap:ProductMember2022-01-012022-03-3100007327172022-01-012022-03-31iso4217:USDxbrli:shares00007327172023-03-3100007327172022-12-310000732717us-gaap:SeriesAPreferredStockMember2023-03-310000732717us-gaap:SeriesAPreferredStockMember2022-12-310000732717us-gaap:SeriesBPreferredStockMember2022-12-310000732717us-gaap:SeriesBPreferredStockMember2023-03-310000732717us-gaap:SeriesCPreferredStockMember2023-03-310000732717us-gaap:SeriesCPreferredStockMember2022-12-3100007327172021-12-3100007327172022-03-310000732717us-gaap:PreferredStockMemberus-gaap:SeriesAPreferredStockMember2022-12-310000732717us-gaap:PreferredStockMemberus-gaap:SeriesAPreferredStockMember2021-12-310000732717us-gaap:PreferredStockMemberus-gaap:SeriesAPreferredStockMember2023-03-310000732717us-gaap:PreferredStockMemberus-gaap:SeriesAPreferredStockMember2022-03-310000732717us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-12-310000732717us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2021-12-310000732717us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2023-03-310000732717us-gaap:SeriesBPreferredStockMemberus-gaap:PreferredStockMember2022-03-310000732717us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMember2022-12-310000732717us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMember2021-12-310000732717us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMember2023-03-310000732717us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMember2022-03-310000732717us-gaap:CommonStockMember2022-12-310000732717us-gaap:CommonStockMember2021-12-310000732717us-gaap:CommonStockMember2023-03-310000732717us-gaap:CommonStockMember2022-03-310000732717us-gaap:AdditionalPaidInCapitalMember2022-12-310000732717us-gaap:AdditionalPaidInCapitalMember2021-12-310000732717us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000732717us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000732717us-gaap:AdditionalPaidInCapitalMember2023-03-310000732717us-gaap:AdditionalPaidInCapitalMember2022-03-310000732717us-gaap:RetainedEarningsMember2022-12-310000732717us-gaap:RetainedEarningsMember2021-12-310000732717us-gaap:RetainedEarningsMember2023-01-012023-03-310000732717us-gaap:RetainedEarningsMember2022-01-012022-03-310000732717us-gaap:RetainedEarningsMember2023-03-310000732717us-gaap:RetainedEarningsMember2022-03-310000732717us-gaap:TreasuryStockMember2022-12-310000732717us-gaap:TreasuryStockMember2021-12-310000732717us-gaap:TreasuryStockMember2023-01-012023-03-310000732717us-gaap:TreasuryStockMember2022-01-012022-03-310000732717us-gaap:TreasuryStockMember2023-03-310000732717us-gaap:TreasuryStockMember2022-03-310000732717us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000732717us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000732717us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000732717us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000732717us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000732717us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000732717us-gaap:NoncontrollingInterestMember2022-12-310000732717us-gaap:NoncontrollingInterestMember2021-12-310000732717us-gaap:NoncontrollingInterestMember2023-01-012023-03-310000732717us-gaap:NoncontrollingInterestMember2022-01-012022-03-310000732717us-gaap:NoncontrollingInterestMember2023-03-310000732717us-gaap:NoncontrollingInterestMember2022-03-310000732717t:ATTMobilityIILLCPreferredInterestConversionMember2023-01-012023-03-310000732717t:ATTMobilityIILLCPreferredInterestConversionMember2022-01-012022-03-310000732717t:OtherATTUnitsMember2023-01-012023-03-310000732717t:OtherATTUnitsMember2022-01-012022-03-310000732717us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000732717us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000732717us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000732717us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000732717us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310000732717us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-03-310000732717us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000732717us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-03-310000732717us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000732717us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310000732717us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-310000732717us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-03-310000732717us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000732717us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000732717us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000732717us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000732717us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310000732717us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310000732717us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-03-310000732717us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-03-310000732717us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000732717us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310000732717us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310000732717us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-31t:segment0000732717srt:RevisionOfPriorPeriodReclassificationAdjustmentMemberus-gaap:CorporateNonSegmentMember2022-01-012022-12-310000732717us-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMember2023-01-012023-03-310000732717t:DTVRelatedRetainedCostsMember2023-01-012023-03-310000732717t:ParentAdministrationSupportMember2023-01-012023-03-310000732717t:SecuritizationFeesMember2023-01-012023-03-310000732717t:ValuePortfolioMember2023-01-012023-03-310000732717us-gaap:CorporateNonSegmentMember2023-01-012023-03-310000732717t:MergerAndSignificantItemsMember2023-01-012023-03-310000732717us-gaap:CorporateAndOtherMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMember2022-01-012022-03-310000732717t:DTVRelatedRetainedCostsMember2022-01-012022-03-310000732717t:ParentAdministrationSupportMember2022-01-012022-03-310000732717t:SecuritizationFeesMember2022-01-012022-03-310000732717t:ValuePortfolioMember2022-01-012022-03-310000732717us-gaap:CorporateNonSegmentMember2022-01-012022-03-310000732717t:MergerAndSignificantItemsMember2022-01-012022-03-310000732717us-gaap:CorporateAndOtherMember2022-01-012022-03-310000732717t:CorporateAndReconcilingItemsMember2023-01-012023-03-310000732717t:CorporateAndReconcilingItemsMember2022-01-012022-03-310000732717us-gaap:MaterialReconcilingItemsMember2023-01-012023-03-310000732717us-gaap:MaterialReconcilingItemsMember2022-01-012022-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717t:WirelessServiceMembert:CorporateAndReconcilingItemsMember2023-01-012023-03-310000732717t:WirelessServiceMember2023-01-012023-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717t:BusinessServiceMembert:CorporateAndReconcilingItemsMember2023-01-012023-03-310000732717t:BusinessServiceMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:IPBroadbandMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:IPBroadbandMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:IPBroadbandMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:IPBroadbandMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717t:CorporateAndReconcilingItemsMembert:IPBroadbandMember2023-01-012023-03-310000732717t:IPBroadbandMember2023-01-012023-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717t:LegacyVoiceAndDataMembert:CorporateAndReconcilingItemsMember2023-01-012023-03-310000732717t:LegacyVoiceAndDataMember2023-01-012023-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717t:OtherServiceMembert:CorporateAndReconcilingItemsMember2023-01-012023-03-310000732717t:OtherServiceMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMemberus-gaap:ServiceMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:ConsumerWirelineMemberus-gaap:ServiceMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717t:CorporateAndReconcilingItemsMemberus-gaap:ServiceMember2023-01-012023-03-310000732717us-gaap:ServiceMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ProductMembert:CommunicationsMembert:MobilityMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMemberus-gaap:ProductMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ProductMembert:ConsumerWirelineMembert:CommunicationsMember2023-01-012023-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ProductMembert:LatinAmericaBusinessSegmentMember2023-01-012023-03-310000732717us-gaap:ProductMembert:CorporateAndReconcilingItemsMember2023-01-012023-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:WirelessServiceMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717t:WirelessServiceMembert:CorporateAndReconcilingItemsMember2022-01-012022-03-310000732717t:WirelessServiceMember2022-01-012022-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:BusinessServiceMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717t:BusinessServiceMembert:CorporateAndReconcilingItemsMember2022-01-012022-03-310000732717t:BusinessServiceMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:IPBroadbandMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:IPBroadbandMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:IPBroadbandMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:IPBroadbandMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717t:CorporateAndReconcilingItemsMembert:IPBroadbandMember2022-01-012022-03-310000732717t:IPBroadbandMember2022-01-012022-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:LegacyVoiceAndDataMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717t:LegacyVoiceAndDataMembert:CorporateAndReconcilingItemsMember2022-01-012022-03-310000732717t:LegacyVoiceAndDataMember2022-01-012022-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:BusinessWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:ConsumerWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717t:OtherServiceMemberus-gaap:OperatingSegmentsMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717t:OtherServiceMembert:CorporateAndReconcilingItemsMember2022-01-012022-03-310000732717t:OtherServiceMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMemberus-gaap:ServiceMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:ConsumerWirelineMemberus-gaap:ServiceMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ServiceMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717t:CorporateAndReconcilingItemsMemberus-gaap:ServiceMember2022-01-012022-03-310000732717us-gaap:ServiceMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ProductMembert:CommunicationsMembert:MobilityMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMembert:BusinessWirelineMemberus-gaap:ProductMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ProductMembert:ConsumerWirelineMembert:CommunicationsMember2022-01-012022-03-310000732717us-gaap:OperatingSegmentsMemberus-gaap:ProductMembert:LatinAmericaBusinessSegmentMember2022-01-012022-03-310000732717us-gaap:ProductMembert:CorporateAndReconcilingItemsMember2022-01-012022-03-310000732717t:DeferredCustomerContractFulfillmentCostMembersrt:MinimumMember2023-03-310000732717t:DeferredCustomerContractAcquisitionCostsMembersrt:MinimumMember2023-03-310000732717srt:MaximumMembert:DeferredCustomerContractAcquisitionCostsMember2023-03-310000732717t:DeferredCustomerContractFulfillmentCostMembersrt:MaximumMember2023-03-310000732717us-gaap:PrepaidExpensesAndOtherCurrentAssetsMembert:DeferredCustomerContractAcquisitionCostsMember2023-03-310000732717us-gaap:PrepaidExpensesAndOtherCurrentAssetsMembert:DeferredCustomerContractAcquisitionCostsMember2022-12-310000732717us-gaap:OtherAssetsMembert:DeferredCustomerContractAcquisitionCostsMember2023-03-310000732717us-gaap:OtherAssetsMembert:DeferredCustomerContractAcquisitionCostsMember2022-12-310000732717t:DeferredCustomerContractAcquisitionCostsMember2023-03-310000732717t:DeferredCustomerContractAcquisitionCostsMember2022-12-310000732717t:DeferredCustomerContractFulfillmentCostMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-03-310000732717t:DeferredCustomerContractFulfillmentCostMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-12-310000732717t:DeferredCustomerContractFulfillmentCostMemberus-gaap:OtherAssetsMember2023-03-310000732717t:DeferredCustomerContractFulfillmentCostMemberus-gaap:OtherAssetsMember2022-12-310000732717t:DeferredCustomerContractFulfillmentCostMember2023-03-310000732717t:DeferredCustomerContractFulfillmentCostMember2022-12-310000732717t:DeferredCustomerContractAcquisitionCostsMember2023-01-012023-03-310000732717t:DeferredCustomerContractAcquisitionCostsMember2022-01-012022-03-310000732717t:DeferredCustomerContractFulfillmentCostMember2023-01-012023-03-310000732717t:DeferredCustomerContractFulfillmentCostMember2022-01-012022-03-310000732717us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-03-310000732717us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-12-310000732717us-gaap:OtherCurrentLiabilitiesMember2023-03-310000732717us-gaap:OtherCurrentLiabilitiesMember2022-12-3100007327172023-04-012023-03-31xbrli:pure00007327172025-01-012023-03-310000732717us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-03-310000732717us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-03-310000732717us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-03-310000732717us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-03-310000732717us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-01-012023-03-310000732717us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2022-01-012022-03-310000732717us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-03-310000732717us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310000732717us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000732717us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000732717us-gaap:FairValueInputsLevel1Memberus-gaap:SecuritiesInvestmentMembercountry:US2023-03-310000732717us-gaap:SecuritiesInvestmentMembercountry:USus-gaap:FairValueInputsLevel2Member2023-03-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:SecuritiesInvestmentMembercountry:US2023-03-310000732717us-gaap:SecuritiesInvestmentMembercountry:US2023-03-310000732717us-gaap:NonUsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SecuritiesInvestmentMember2023-03-310000732717us-gaap:NonUsMemberus-gaap:SecuritiesInvestmentMemberus-gaap:FairValueInputsLevel2Member2023-03-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:NonUsMemberus-gaap:SecuritiesInvestmentMember2023-03-310000732717us-gaap:NonUsMemberus-gaap:SecuritiesInvestmentMember2023-03-310000732717us-gaap:FairValueInputsLevel1Memberus-gaap:FixedIncomeInvestmentsMember2023-03-310000732717us-gaap:FixedIncomeInvestmentsMemberus-gaap:FairValueInputsLevel2Member2023-03-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:FixedIncomeInvestmentsMember2023-03-310000732717us-gaap:FixedIncomeInvestmentsMember2023-03-310000732717us-gaap:FairValueInputsLevel1Member2023-03-310000732717us-gaap:FairValueInputsLevel2Member2023-03-310000732717us-gaap:FairValueInputsLevel3Member2023-03-310000732717us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMember2023-03-310000732717us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2023-03-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2023-03-310000732717us-gaap:InterestRateSwapMember2023-03-310000732717us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Member2023-03-310000732717us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Member2023-03-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:CrossCurrencyInterestRateContractMember2023-03-310000732717us-gaap:CrossCurrencyInterestRateContractMember2023-03-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2023-03-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2023-03-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2023-03-310000732717us-gaap:ForeignExchangeContractMember2023-03-310000732717us-gaap:FairValueInputsLevel1Memberus-gaap:SecuritiesInvestmentMembercountry:US2022-12-310000732717us-gaap:SecuritiesInvestmentMembercountry:USus-gaap:FairValueInputsLevel2Member2022-12-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:SecuritiesInvestmentMembercountry:US2022-12-310000732717us-gaap:SecuritiesInvestmentMembercountry:US2022-12-310000732717us-gaap:NonUsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SecuritiesInvestmentMember2022-12-310000732717us-gaap:NonUsMemberus-gaap:SecuritiesInvestmentMemberus-gaap:FairValueInputsLevel2Member2022-12-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:NonUsMemberus-gaap:SecuritiesInvestmentMember2022-12-310000732717us-gaap:NonUsMemberus-gaap:SecuritiesInvestmentMember2022-12-310000732717us-gaap:FairValueInputsLevel1Memberus-gaap:FixedIncomeInvestmentsMember2022-12-310000732717us-gaap:FixedIncomeInvestmentsMemberus-gaap:FairValueInputsLevel2Member2022-12-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:FixedIncomeInvestmentsMember2022-12-310000732717us-gaap:FixedIncomeInvestmentsMember2022-12-310000732717us-gaap:FairValueInputsLevel1Member2022-12-310000732717us-gaap:FairValueInputsLevel2Member2022-12-310000732717us-gaap:FairValueInputsLevel3Member2022-12-310000732717us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Member2022-12-310000732717us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Member2022-12-310000732717us-gaap:FairValueInputsLevel3Memberus-gaap:CrossCurrencyInterestRateContractMember2022-12-310000732717us-gaap:CrossCurrencyInterestRateContractMember2022-12-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2022-12-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2022-12-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2022-12-310000732717us-gaap:ForeignExchangeContractMember2022-12-3100007327172022-01-012022-09-300000732717us-gaap:MeasurementInputEntityCreditRiskMember2023-03-310000732717us-gaap:InterestRateSwapMember2023-03-310000732717us-gaap:InterestRateSwapMember2022-12-310000732717us-gaap:CrossCurrencyInterestRateContractMember2023-03-310000732717us-gaap:CrossCurrencyInterestRateContractMember2022-12-310000732717us-gaap:ForeignExchangeContractMember2023-03-310000732717us-gaap:ForeignExchangeContractMember2022-12-310000732717us-gaap:InterestRateSwapMember2023-01-012023-03-310000732717us-gaap:InterestRateSwapMember2022-01-012022-03-310000732717us-gaap:CrossCurrencyInterestRateContractMember2023-01-012023-03-310000732717us-gaap:CrossCurrencyInterestRateContractMember2022-01-012022-03-310000732717us-gaap:ForeignExchangeContractMember2023-01-012023-03-310000732717us-gaap:ForeignExchangeContractMember2022-01-012022-03-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-03-310000732717us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-03-310000732717us-gaap:InterestExpenseMemberus-gaap:InterestRateLockCommitmentsMember2023-01-012023-03-310000732717us-gaap:InterestExpenseMemberus-gaap:InterestRateLockCommitmentsMember2022-01-012022-03-310000732717t:EquipmentInstallmentProgramMember2023-01-012023-03-310000732717t:EquipmentInstallmentProgramMember2022-01-012022-03-310000732717t:OtherSalesOfReceivablesMember2023-01-012023-03-310000732717t:OtherSalesOfReceivablesMember2022-01-012022-03-310000732717t:EquipmentInstallmentProgramMember2023-03-310000732717t:EquipmentInstallmentProgramMember2022-12-310000732717t:EquipmentInstallmentProgramMemberus-gaap:NotesReceivableMember2023-03-310000732717t:EquipmentInstallmentProgramMemberus-gaap:NotesReceivableMember2022-12-310000732717t:EquipmentInstallmentProgramMemberus-gaap:TradeAccountsReceivableMember2023-03-310000732717t:EquipmentInstallmentProgramMemberus-gaap:TradeAccountsReceivableMember2022-12-310000732717t:EquipmentInstallmentProgramMembert:DeferredPurchasePriceMember2023-03-310000732717t:EquipmentInstallmentProgramMembert:DeferredPurchasePriceMember2022-12-310000732717t:EquipmentInstallmentProgramMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMembert:DeferredPurchasePriceMember2023-03-310000732717t:EquipmentInstallmentProgramMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMembert:DeferredPurchasePriceMember2022-12-310000732717t:EquipmentInstallmentProgramMemberus-gaap:GuaranteeObligationsMember2023-03-310000732717t:EquipmentInstallmentProgramMemberus-gaap:GuaranteeObligationsMember2022-12-310000732717t:EquipmentInstallmentProgramMemberus-gaap:GuaranteeObligationsMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMember2023-03-310000732717t:EquipmentInstallmentProgramMemberus-gaap:GuaranteeObligationsMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMember2022-12-310000732717srt:MaximumMember2023-03-310000732717t:DIRECTVMember2023-01-012023-03-310000732717t:DIRECTVMember2022-01-012022-03-310000732717us-gaap:EquityMethodInvesteeMembert:DIRECTVMember2023-01-012023-03-310000732717us-gaap:EquityMethodInvesteeMembert:DIRECTVMembert:OperatingActivitiesMember2023-01-012023-03-310000732717us-gaap:EquityMethodInvesteeMembert:DIRECTVMembert:InvestingActivitiesMember2023-01-012023-03-310000732717us-gaap:EquityMethodInvesteeMembert:DIRECTVMember2022-01-012022-03-310000732717us-gaap:EquityMethodInvesteeMembert:DIRECTVMembert:OperatingActivitiesMember2022-01-012022-03-310000732717us-gaap:EquityMethodInvesteeMembert:DIRECTVMembert:InvestingActivitiesMember2022-01-012022-03-310000732717t:DIRECTVMember2023-03-310000732717t:DTVRelatedRetainedCostsMember2023-01-012023-03-310000732717t:SupplierFinancingProgramMember2023-03-310000732717t:SupplierFinancingProgramMember2022-12-310000732717t:DirectSupplierFinancingProgramMember2023-03-310000732717t:DirectSupplierFinancingProgramMember2022-12-310000732717t:VendorFinancingProgramMember2023-01-012023-03-310000732717t:VendorFinancingProgramMember2022-01-012022-03-310000732717us-gaap:PropertyPlantAndEquipmentMember2023-01-012023-03-310000732717us-gaap:PropertyPlantAndEquipmentMember2022-01-012022-03-310000732717us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2023-01-012023-03-310000732717us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2022-01-012022-03-310000732717us-gaap:LicenseMember2023-01-012023-03-310000732717us-gaap:LicenseMember2022-01-012022-03-310000732717t:TelcoLLCMemberus-gaap:SubsequentEventMembert:ClassA2AndClassA3Member2023-04-180000732717t:TelcoLLCMemberus-gaap:SubsequentEventMember2023-04-180000732717t:TelcoLLCMemberus-gaap:SubsequentEventMembert:ClassA2AndClassA3Member2023-01-012023-04-04t:period0000732717t:ATTMobilityIILLCMemberus-gaap:SubsequentEventMemberus-gaap:SeriesAPreferredStockMember2023-01-012023-04-040000732717t:ATTMobilityIILLCMemberus-gaap:SeriesAPreferredStockMember2023-01-012023-03-310000732717t:ATTMobilityIILLCMemberus-gaap:SeriesAPreferredStockMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMember2023-01-012023-03-310000732717t:ATTMobilityIILLCMemberus-gaap:SeriesAPreferredStockMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-01-012023-03-310000732717us-gaap:SubsequentEventMemberus-gaap:PensionPlansDefinedBenefitMember2023-04-012023-06-300000732717us-gaap:SubsequentEventMemberus-gaap:PensionPlansDefinedBenefitMember2023-04-26t:employee0000732717us-gaap:SubsequentEventMemberus-gaap:PensionPlansDefinedBenefitMember2023-04-262023-04-26
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 March 31, 2023
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. 2.500% 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. Floating Rate Global Notes due March 6, 2025 | T 25A | 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 (§232.405 of this chapter) 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 an emerging growth company. See definition of “large accelerated filer,” “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 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.
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 April 25, 2023, there were 7,149 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 |
| | | March 31, |
| | | | | 2023 | | 2022 |
Operating Revenues | | | | | | | |
Service | | | | | $ | 24,617 | | | $ | 23,999 | |
Equipment | | | | | 5,522 | | | 5,713 | |
Total operating revenues | | | | | 30,139 | | | 29,712 | |
| | | | | | | |
Operating Expenses | | | | | | | |
Cost of revenues | | | | | | | |
Equipment | | | | | 5,658 | | | 6,036 | |
| | | | | | | |
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | | | | | 6,673 | | | 6,699 | |
Selling, general and administrative | | | | | 7,175 | | | 6,978 | |
| | | | | | | |
Depreciation and amortization | | | | | 4,631 | | | 4,462 | |
Total operating expenses | | | | | 24,137 | | | 24,175 | |
Operating Income | | | | | 6,002 | | | 5,537 | |
Other Income (Expense) | | | | | | | |
Interest expense | | | | | (1,708) | | | (1,626) | |
Equity in net income of affiliates | | | | | 538 | | | 521 | |
Other income (expense) — net | | | | | 935 | | | 2,157 | |
Total other income (expense) | | | | | (235) | | | 1,052 | |
Income from Continuing Operations Before Income Taxes | | | | | 5,767 | | | 6,589 | |
Income tax expense on continuing operations | | | | | 1,314 | | | 1,440 | |
Income from Continuing Operations | | | | | 4,453 | | | 5,149 | |
Income from discontinued operations, net of tax | | | | | — | | | 15 | |
Net Income | | | | | 4,453 | | | 5,164 | |
Less: Net Income Attributable to Noncontrolling Interest | | | | | (225) | | | (354) | |
Net Income Attributable to AT&T | | | | | $ | 4,228 | | | $ | 4,810 | |
Less: Preferred Stock Dividends | | | | | (52) | | | (48) | |
Net Income Attributable to Common Stock | | | | | $ | 4,176 | | | $ | 4,762 | |
Basic Earnings Per Share from continuing operations | | | | | $ | 0.58 | | | $ | 0.66 | |
Basic Earnings Per Share from discontinued operations | | | | | $ | — | | | $ | — | |
Basic Earnings Per Share Attributable to Common Stock | | | | | $ | 0.58 | | | $ | 0.66 | |
Diluted Earnings Per Share from continuing operations | | | | | $ | 0.57 | | | $ | 0.65 | |
Diluted Earnings Per Share from discontinued operations | | | | | $ | — | | | $ | — | |
Diluted Earnings Per Share Attributable to Common Stock | | | | | $ | 0.57 | | | $ | 0.65 | |
Weighted Average Number of Common Shares Outstanding — Basic (in millions) | | | | | 7,168 | | | 7,184 | |
Weighted Average Number of Common Shares Outstanding — with Dilution (in millions) | | | | | 7,474 | | | 7,556 | |
See Notes to Consolidated Financial Statements.
| | | | | | | | | | | | | | | |
AT&T INC. | | | | | | | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | |
Dollars in millions | | | | | | | |
(Unaudited) | | | | | | | |
| | | Three months ended |
| | | March 31, |
| | | | | 2023 | | 2022 |
Net income | | | | | $ | 4,453 | | | $ | 5,164 | |
Other comprehensive income (loss), net of tax: | | | | | | | |
Foreign currency: | | | | | | | |
Translation adjustment, net of taxes of $52 and $5 | | | | | 193 | | | 19 | |
| | | | | | | |
Securities: | | | | | | | |
Net unrealized gains (losses), net of taxes of $8 and $(23) | | | | | 23 | | | (69) | |
Reclassification adjustment included in net income, net of taxes of $1 and $1 | | | | | 3 | | | 3 | |
Derivative instruments: | | | | | | | |
Net unrealized gains (losses), net of taxes of $(43) and $69 | | | | | (152) | | | 258 | |
Reclassification adjustment included in net income, net of taxes of $3 and $4 | | | | | 12 | | | 15 | |
| | | | | | | |
Defined benefit postretirement plans: | | | | | | | |
| | | | | | | |
Amortization of net prior service credit included in net income, net of taxes of $(160) and $(152) | | | | | (491) | | | (465) | |
| | | | | | | |
Other comprehensive income (loss) | | | | | (412) | | | (239) | |
Total comprehensive income | | | | | 4,041 | | | 4,925 | |
Less: Total comprehensive income attributable to noncontrolling interest | | | | | (225) | | | (354) | |
Total Comprehensive Income Attributable to AT&T | | | | | $ | 3,816 | | | $ | 4,571 | |
See Notes to Consolidated Financial Statements.
| | | | | | | | | | | |
AT&T INC. |
CONSOLIDATED BALANCE SHEETS |
Dollars in millions except per share amounts |
(Unaudited) | | | |
| March 31, | | December 31, |
| 2023 | | 2022 |
Assets | | | |
Current Assets | | | |
Cash and cash equivalents | $ | 2,821 | | | $ | 3,701 | |
Accounts receivable – net of related allowances for credit loss of $619 and $588 | 10,214 | | | 11,466 | |
Inventories | 2,791 | | | 3,123 | |
Prepaid and other current assets | 14,077 | | | 14,818 | |
Total current assets | 29,903 | | | 33,108 | |
Property, plant and equipment | 330,486 | | | 329,630 | |
Less: accumulated depreciation and amortization | (202,028) | | | (202,185) | |
Property, Plant and Equipment – Net | 128,458 | | | 127,445 | |
Goodwill – Net | 67,895 | | | 67,895 | |
Licenses – Net | 124,502 | | | 124,092 | |
Other Intangible Assets – Net | 5,346 | | | 5,354 | |
Investments in and Advances to Equity Affiliates | 2,810 | | | 3,533 | |
Operating Lease Right-Of-Use Assets | 21,619 | | | 21,814 | |
| | | |
Other Assets | 20,340 | | | 19,612 | |
Total Assets | $ | 400,873 | | | $ | 402,853 | |
Liabilities and Stockholders’ Equity | | | |
Current Liabilities | | | |
Debt maturing within one year | $ | 13,757 | | | $ | 7,467 | |
Note payable to DIRECTV | — | | | 130 | |
Accounts payable and accrued liabilities | 38,389 | | | 42,644 | |
Advanced billings and customer deposits | 3,922 | | | 3,918 | |
Dividends payable | 2,082 | | | 2,014 | |
Total current liabilities | 58,150 | | | 56,173 | |
Long-Term Debt | 123,727 | | | 128,423 | |
Deferred Credits and Other Noncurrent Liabilities | | | |
Deferred income taxes | 57,294 | | | 57,032 | |
Postemployment benefit obligation | 7,060 | | | 7,260 | |
Operating lease liabilities | 18,413 | | | 18,659 | |
Other noncurrent liabilities | 27,883 | | | 28,849 | |
Total deferred credits and other noncurrent liabilities | 110,650 | | | 111,800 | |
Stockholders’ Equity | | | |
Preferred stock ($1 par value, 10,000,000 authorized at March 31, 2023 and December 31, 2022): | | | |
Series A (48,000 issued and outstanding at March 31, 2023 and December 31, 2022) | — | | | — | |
Series B (20,000 issued and outstanding at March 31, 2023 and December 31, 2022) | — | | | — | |
Series C (70,000 issued and outstanding at March 31, 2023 and December 31, 2022) | — | | | — | |
Common stock ($1 par value, 14,000,000,000 authorized at March 31, 2023 and December 31, 2022: issued 7,620,748,598 at March 31, 2023 and December 31, 2022) | 7,621 | | | 7,621 | |
Additional paid-in capital | 120,774 | | | 123,610 | |
Retained (deficit) earnings | (15,187) | | | (19,415) | |
Treasury stock (471,514,050 at March 31, 2023 and 493,156,816 at December 31, 2022, at cost) | (16,166) | | | (17,082) | |
Accumulated other comprehensive income | 2,354 | | | 2,766 | |
Noncontrolling interest | 8,950 | | | 8,957 | |
Total stockholders’ equity | 108,346 | | | 106,457 | |
Total Liabilities and Stockholders’ Equity | $ | 400,873 | | | $ | 402,853 | |
See Notes to Consolidated Financial Statements.
| | | | | | | | | | | |
AT&T INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Dollars in millions |
(Unaudited) | | | |
| Three months ended |
| March 31, |
| 2023 | | 2022 |
Operating Activities | | | |
Income from continuing operations | $ | 4,453 | | | $ | 5,149 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | | | |
Depreciation and amortization | 4,631 | | | 4,462 | |
| | | |
| | | |
Provision for uncollectible accounts | 477 | | | 430 | |
Deferred income tax expense | 529 | | | 1,150 | |
Net (gain) loss on investments, net of impairments | (93) | | | 87 | |
Pension and postretirement benefit expense (credit) | (670) | | | (940) | |
Actuarial (gain) loss on pension and postretirement benefits | — | | | (1,053) | |
| | | |
Changes in operating assets and liabilities: | | | |
Receivables | 620 | | | 864 | |
Other current assets | 364 | | | 244 | |
Accounts payable and other accrued liabilities | (3,409) | | | (2,651) | |
Equipment installment receivables and related sales | (243) | | | 541 | |
Deferred customer contract acquisition and fulfillment costs | (22) | | | (259) | |
Postretirement claims and contributions | (89) | | | (97) | |
Other - net | 130 | | | (297) | |
Total adjustments | 2,225 | | | 2,481 | |
Net Cash Provided by Operating Activities from Continuing Operations | 6,678 | | | 7,630 | |
Investing Activities | | | |
Capital expenditures | (4,335) | | | (4,568) | |
Acquisitions, net of cash acquired | (291) | | | (9,244) | |
Dispositions | 15 | | | 7 | |
Distributions from DIRECTV in excess of cumulative equity in earnings | 774 | | | 1,315 | |
Other - net | 19 | | | 32 | |
| | | |
| | | |
Net Cash Used in Investing Activities from Continuing Operations | (3,818) | | | (12,458) | |
Financing Activities | | | |
Net change in short-term borrowings with original maturities of three months or less | (536) | | | 2,285 | |
Issuance of other short-term borrowings | 3,627 | | | 2,593 | |
Repayment of other short-term borrowings | — | | | (3,407) | |
Issuance of long-term debt | 3,366 | | | 479 | |
Repayment of long-term debt | (5,945) | | | (790) | |
Repayment of note payable to DIRECTV | (130) | | | (294) | |
Payment of vendor financing | (2,113) | | | (1,566) | |
| | | |
Purchase of treasury stock | (188) | | | (197) | |
Issuance of treasury stock | 3 | | | 26 | |
| | | |
| | | |
Dividends paid | (2,014) | | | (3,749) | |
| | | |
Other - net | 219 | | | (930) | |
Net Cash Used in Financing Activities from Continuing Operations | (3,711) | | | (5,550) | |
Net decrease in cash and cash equivalents and restricted cash from continuing operations | (851) | | | (10,378) | |
Cash flows from Discontinued Operations: | | | |
Cash (used in) provided by operating activities | — | | | (1,898) | |
Cash provided by (used in) investing activities | — | | | (193) | |
Cash provided by (used in) financing activities | — | | | 29,801 | |
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations | — | | | 27,710 | |
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (851) | | | $ | 17,332 | |
Cash and cash equivalents and restricted cash beginning of year | 3,793 | | | 21,316 | |
Cash and Cash Equivalents and Restricted Cash End of Period | $ | 2,942 | | | $ | 38,648 | |
See Notes to Consolidated Financial Statements. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AT&T INC. | | | | | | | | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY |
Dollars and shares in millions except per share amounts | | | | | | | | |
(Unaudited) | | | | | | | | |
| | | Three months ended |
| | | | | March 31, 2023 | | March 31, 2022 |
| | | | | | | | | Shares | | Amount | | Shares | | Amount |
Preferred Stock - Series A | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | — | | | $ | — | | | — | | | $ | — | |
| | | | | | | | | | | | | | | |
Balance at end of period | | | | | | | | | — | | | $ | — | | | — | | | $ | — | |
Preferred Stock - Series B | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | — | | | $ | — | | | — | | | $ | — | |
| | | | | | | | | | | | | | | |
Balance at end of period | | | | | | | | | — | | | $ | — | | | — | | | $ | — | |
Preferred Stock - Series C | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | — | | | $ | — | | | — | | | $ | — | |
| | | | | | | | | | | | | | | |
Balance at end of period | | | | | | | | | — | | | $ | — | | | — | | | $ | — | |
Common Stock | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | 7,621 | | | $ | 7,621 | | | 7,621 | | | $ | 7,621 | |
| | | | | | | | | | | | | | | |
Balance at end of period | | | | | | | | | 7,621 | | | $ | 7,621 | | | 7,621 | | | $ | 7,621 | |
Additional Paid-In Capital | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | | | $ | 123,610 | | | | | $ | 130,112 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Preferred stock dividends | | | | | | | | | | | (98) | | | | | — | |
Common stock dividends ($0.2775 per share in 2023) | | | | | | | | | | | (2,002) | | | | | — | |
| | | | | | | | | | | | | | | |
Issuance of treasury stock | | | | | | | | | | | (365) | | | | | (126) | |
Share-based payments | | | | | | | | | | | (371) | | | | | (349) | |
| | | | | | | | | | | | | | | |
Balance at end of period | | | | | | | | | | | $ | 120,774 | | | | | $ | 129,637 | |
Retained (Deficit) Earnings | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | | | $ | (19,415) | | | | | $ | 42,350 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Net income attributable to AT&T | | | | | | | | | | | 4,228 | | | | | 4,810 | |
| | | | | | | | | | | | | | | |
Preferred stock dividends | | | | | | | | | | | — | | | | | (99) | |
Common stock dividends ($0.2775 per share in 2022) | | | | | | | | | | | — | | | | | (2,020) | |
Balance at end of period | | | | | | | | | | | $ | (15,187) | | | | | $ | 45,041 | |
See Notes to Consolidated Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AT&T INC. | | | | | | | | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - continued |
Dollars and shares in millions except per share amounts | | | | | | | | |
(Unaudited) | | | | | | | | |
| | | Three months ended |
| | | | | March 31, 2023 | | March 31, 2022 |
| | | | | | | | | Shares | | Amount | | Shares | | Amount |
Treasury Stock | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | (493) | | | $ | (17,082) | | | (480) | | | $ | (17,280) | |
Repurchase and acquisition of common stock | | | | | | | | | (10) | | | (188) | | | (8) | | | (197) | |
Reissuance of treasury stock | | | | | | | | | 31 | | | 1,104 | | | 26 | | | 924 | |
Balance at end of period | | | | | | | | | (472) | | | $ | (16,166) | | | (462) | | | $ | (16,553) | |
Accumulated Other Comprehensive Income Attributable to AT&T, net of tax | | | | | | |
Balance at beginning of period | | | | | | | | | | | $ | 2,766 | | | | | $ | 3,529 | |
Other comprehensive income attributable to AT&T | | | | | | | | | | | (412) | | | | | (239) | |
Balance at end of period | | | | | | | | | | | $ | 2,354 | | | | | $ | 3,290 | |
Noncontrolling Interest | | | | | | | | | | | | | | | |
Balance at beginning of period | | | | | | | | | | | $ | 8,957 | | | | | $ | 17,523 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Net income attributable to noncontrolling interest | | | | | | | | | | | 225 | | | | | 354 | |
| | | | | | | | | | | | | | | |
Redemption of noncontrolling interest | | | | | | | | | | | — | | | | | (16) | |
Distributions | | | | | | | | | | | (232) | | | | | (341) | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Balance at end of period | | | | | | | | | | | $ | 8,950 | | | | | $ | 17,520 | |
Total Stockholders' Equity at beginning of period | | | | | | | | | | | $ | 106,457 | | | | | $ | 183,855 | |
Total Stockholders' Equity at end of period | | | | | | | | | | | $ | 108,346 | | | | | $ | 186,556 | |
See Notes to Consolidated Financial Statements.
AT&T INC.
MARCH 31, 2023
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Dollars in millions except per share amounts
NOTE 1. PREPARATION OF INTERIM FINANCIAL STATEMENTS
Basis of Presentation Throughout this document, AT&T Inc. is referred to as “we,” “AT&T” or the “Company.” The consolidated financial statements include the accounts of the Company and subsidiaries and affiliates which we control. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this document in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The results for the interim periods are not necessarily indicative of those for the full year. These consolidated financial statements include all adjustments that are necessary to present fairly the results for the presented interim periods, consisting of normal recurring accruals and other items.
All significant intercompany transactions are eliminated in the consolidation process. Investments in subsidiaries and partnerships which we do not control but have significant influence are accounted for under the equity method. Earnings from certain investments accounted for using the equity method are included in our results on a one quarter lag. We also record our proportionate share of our equity method investees’ other comprehensive income (OCI) items, including translation adjustments.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions, including estimates of fair value, probable losses and expenses, that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain prior period amounts have been conformed to the current period’s presentation. Unless otherwise noted, the information in Notes 1 through 13 refer only to our continuing operations and do not include discussion of balances or activity of WarnerMedia, Vrio, Xandr and Playdemic Ltd., which were part of discontinued operations.
Accounting Policies, Adopted and Pending Accounting Standards and Other Changes
Supplier Finance Obligations As of January 1, 2023, we adopted, with retrospective application, the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” (ASU 2022-04), which establishes interim and annual reporting disclosure requirements about a company’s supplier finance programs for its purchase of goods and services. Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. The annual rollforward requirement becomes effective for annual periods beginning after December 15, 2023, with prospective application. The standard allows early adoption of this requirement. In the year of adoption, the disclosure of payment and other key terms under the programs and outstanding balances under the obligations also applies to interim reporting dates.
AT&T INC.
MARCH 31, 2023
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
NOTE 2. EARNINGS PER SHARE
A reconciliation of the numerators and denominators of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022, is shown in the table below:
| | | | | | | | | | | | | | | |
| | | Three months ended |
| | | March 31, |
| | | | | 2023 | | 2022 |
Numerators | | | | | | | |
Numerator for basic earnings per share: | | | | | | | |
Income from continuing operations, net of tax | | | | | $ | 4,453 | | | $ | 5,149 | |
Net income from continuing operations attributable to noncontrolling interests | | | | | (225) | | | (354) | |
Preferred Stock Dividends | | | | | (52) | | | (48) | |
Income from continuing operations attributable to common stock | | | | | 4,176 | | | 4,747 | |
| | | | | | | |
| | | | | | | |
Income from discontinued operations attributable to common stock | | | | | — | | | 15 | |
Net Income Attributable to Common Stock | | | | | $ | 4,176 | | | $ | 4,762 | |
Dilutive potential common shares: | | | | | | | |
Mobility preferred interests | | | | | 72 | | | 140 | |
Share-based payment | | | | | 4 | | | 6 | |
Numerator for diluted earnings per share | | | | | $ | 4,252 | | | $ | 4,908 | |
Denominators (000,000) | | | | | | | |
Denominator for basic earnings per share: | | | | | | | |
Weighted average number of common shares outstanding | | | | | 7,168 | | | 7,184 | |
Dilutive potential common shares: | | | | | | | |
Mobility preferred interests (in shares) | | | | | 284 | | | 337 | |
Share-based payment (in shares) | | | | | 22 | | | 35 | |
Denominator for diluted earnings per share | | | | | 7,474 | | | 7,556 | |
Under ASU No. 2020-06, “Debt—Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (ASU 2020-06), the ability to settle our Series A Cumulative Perpetual Preferred Membership Interests in AT&T Mobility II LLC (Mobility preferred interests) in stock is reflected in our diluted earnings per share calculation. While our intent is to settle the Mobility preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. On April 5, 2023, we repurchased the remaining Mobility preferred interests and our calculation of diluted earnings per share will not reflect the dilutive potential of these instruments for the quarterly periods after the repurchase.
AT&T INC.
MARCH 31, 2023
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
NOTE 3. OTHER COMPREHENSIVE INCOME
Changes in the balances of each component included in accumulated OCI are presented below. All amounts are net of tax and exclude noncontrolling interest.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Translation Adjustment | | Net Unrealized Gains (Losses) on Securities | | Net Unrealized Gains (Losses) on Derivative Instruments | | Defined Benefit Postretirement Plans | | Accumulated Other Comprehensive Income (Loss) |
Balance as of December 31, 2022 | $ | (1,800) | | | $ | (90) | | | $ | (1,998) | | | $ | 6,654 | | | $ | 2,766 | |
Other comprehensive income (loss) before reclassifications | 193 | | | 23 | | | (152) | | | — | | | 64 | |
Amounts reclassified from accumulated OCI | — | | 1 | 3 | | 1 | 12 | | 2 | (491) | | 3 | (476) | |
| | | | | | | | | |
Net other comprehensive income (loss) | 193 | | | 26 | | | (140) | | | (491) | | | (412) | |
Balance as of March 31, 2023 | $ | (1,607) | | | $ | (64) | | | $ | (2,138) | | | $ | 6,163 | | | $ | 2,354 | |
| | | | | | | | | |
| Foreign Currency Translation Adjustment | | Net Unrealized Gains (Losses) on Securities | | Net Unrealized Gains (Losses) on Derivative Instruments | | Defined Benefit Postretirement Plans | | Accumulated Other Comprehensive Income (Loss) |
Balance as of December 31, 2021 | $ | (1,964) | | | $ | 45 | | | $ | (1,422) | | | $ | 6,870 | | | $ | 3,529 | |
Other comprehensive income (loss) before reclassifications | 19 | | | (69) | | | 258 | | | — | | | 208 | |
Amounts reclassified from accumulated OCI | — | | 1 | 3 | | 1 | 15 | | 2 | (465) | | 3 | (447) | |
| | | | | | | | | |
Net other comprehensive income (loss) | 19 | | | (66) | | | 273 | | | (465) | | | (239) | |
Balance as of March 31, 2022 | $ | (1,945) | | | $ | (21) | | | $ | (1,149) | | | $ | 6,405 | | | $ | 3,290 | |
1(Gains) losses are included in “Other income (expense) - net” in the consolidated statements of income. |
2(Gains) losses are primarily included in “Interest expense” in the consolidated statements of income (see Note 7). |
3The amortization of prior service credits associated with postretirement benefits are included in “Other income (expense) - net” in the consolidated statements of income (see Note 6). |
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.
AT&T INC.
MARCH 31, 2023
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
Effective for the first quarter of 2023, we no longer record prior service credits to our individual business units or the corresponding charge to Corporate and Other, and segment operating expenses were recast to remove prior service credits from our historical reporting. Prior service credits are, and will continue to be, recorded as other income in our consolidated income statement in accordance with GAAP. This recast increased Communications segment operations and support expenses by approximately $2,400 for full-year 2022. Correspondingly, this recast lowered administrative expenses within Corporate and Other, 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 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 8).
•Value portfolio, which are businesses no longer integral to our operations or which we no longer actively market.
Other items consist of:
•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 other items for which the segments are not being evaluated.
“Interest expense” and “Other income (expense) – net” are managed only on a total company basis and are, accordingly, reflected only in consolidated results.
AT&T INC.
MARCH 31, 2023
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
Dollars in millions except per share amounts
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the three months ended March 31, 2023 |
| Revenues | | Operations and Support Expenses | | EBITDA | | Depreciation and Amortization | | Operating Income (Loss) |
Communications | | | | | | | | | |
Mobility | $ | 20,582 | | | $ | 12,213 | | | $ | 8,369 | | | $ | 2,098 | | | $ | 6,271 | |
Business Wireline | 5,331 | | | 3,623 | | | 1,708 | | | 1,330 | | | 378 | |
Consumer Wireline | 3,239 | | | 2,284 | | | 955 | | | 861 | | | 94 | |
Total Communications | 29,152 | | | 18,120 | | | 11,032 | | | 4,289 | | | 6,743 | |
Latin America - Mexico | 883 | | | 738 | | | 145 | | | 175 | | | (30) | |
Segment Total | 30,035 | | | 18,858 | | | 11,177 | | | 4,464 | | | |