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Segment Information
 3 Months Ended
Mar. 31, 2023
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.
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.
For the three months ended March 31, 2023
 RevenuesOperations
and Support
Expenses		EBITDADepreciation
and
Amortization		Operating
Income (Loss)
Communications     
Mobility$20,582 $12,213 $8,369 $2,098 $6,271 
Business Wireline5,331 3,623 1,708 1,330 378 
Consumer Wireline3,239 2,284 955 861 94 
Total Communications29,152 18,120 11,032 4,289 6,743 
Latin America - Mexico883 738 145 175 (30)
Segment Total30,035 18,858 11,177 4,464 6,713 
Corporate and Other     
Corporate:
DTV-related retained costs— 169 (169)144 (313)
Parent administration support(9)374 (383)1 (384)
Securitization fees19 121 (102)— (102)
Value portfolio94 28 66 5 61 
Total Corporate104 692 (588)150 (738)
Certain significant items— (44)44 17 27 
Total Corporate and Other104 648 (544)167 (711)
AT&T Inc.$30,139 $19,506 $10,633 $4,631 $6,002 
For the three months ended March 31, 2022
 RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)
Communications     
Mobility$20,075 $12,327 $7,748 $2,059 $5,689 
Business Wireline5,640 3,702 1,938 1,299 639 
Consumer Wireline3,161 2,236 925 766 159 
Total Communications28,876 18,265 10,611 4,124 6,487 
Latin America - Mexico690 631 59 161 (102)
Segment Total29,566 18,896 10,670 4,285 6,385 
Corporate and Other     
Corporate:
DTV-related retained costs8 160 (152)134 (286)
Parent administration support(12)347 (359)6 (365)
Securitization fees16 82 (66)— (66)
Value portfolio134 37 97 10 87 
Total Corporate146 626 (480)150 (630)
Certain significant items— 191 (191)27 (218)
Total Corporate and Other146 817 (671)177 (848)
AT&T Inc.$29,712 $19,713 $9,999 $4,462 $5,537 
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
March 31,
 20232022
Communications$6,743 $6,487 
Latin America(30)(102)
Segment Operating Income6,713 6,385 
Reconciling Items:
Corporate(738)(630)
Transaction and other costs— (98)
Amortization of intangibles acquired(17)(27)
Benefit-related gains (losses)44 (93)
AT&T Operating Income6,002 5,537 
Interest expense1,708 1,626 
Equity in net income of affiliates538 521 
Other income (expense) — net
935 2,157 
Income from Continuing Operations Before Income Taxes$5,767 $6,589