Delaware | 001-08610 | 43-1301883 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
||||||
208 S. Akard St., Dallas, Texas
(Address of Principal Executive Offices)
|
75202
(Zip Code)
|
|||||||
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered |
||||||||||||
Common Shares (Par Value $1.00 Per Share) | T | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A | T PRA | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C | T PRC | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.450% Global Notes due June 1, 2022 | T 22B | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.500% Global Notes due March 15, 2023 | T 23 | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.750% Global Notes due May 19, 2023 | T 23C | New York Stock Exchange |
Title of each class |
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||||||||||||
AT&T Inc. Floating Rate Global Notes due September 5, 2023 | T 23D | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.050% Global Notes due September 5, 2023 | T 23E | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.300% Global Notes due September 5, 2023 | T 23A | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.950% Global Notes due September 15, 2023 | T 23F | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.400% Global Notes due March 15, 2024 | T 24A | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.500% Global Notes due December 17, 2025 | T 25 | New York Stock Exchange | ||||||||||||
AT&T Inc. 0.250% Global Notes due March 4, 2026 | T 26E | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.800% Global Notes due September 5, 2026 | T 26D | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.900% Global Notes due December 4, 2026 | T 26A | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.600% Global Notes due May 19, 2028 | T 28C | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.350% Global Notes due September 5, 2029 | T 29D | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.375% Global Notes due September 14, 2029 | T 29B | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.600% Global Notes due December 17, 2029 | T 29A | New York Stock Exchange | ||||||||||||
AT&T Inc. 0.800% Global Notes due March 4, 2030 | T 30B | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.050% Global Notes due May 19, 2032 | T 32A | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.550% Global Notes due December 17, 2032 | T 32 | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.200% Global Notes due November 18, 2033 | T 33 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.375% Global Notes due March 15, 2034 | T 34 | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.450% Global Notes due March 15, 2035 | T 35 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.150% Global Notes due September 4, 2036 | T 36A | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.600% Global Notes due May 19, 2038 | T 38C | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.800% Global Notes due September 14, 2039 | T 39B | New York Stock Exchange | ||||||||||||
AT&T Inc. 7.000% Global Notes due April 30, 2040 | T 40 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.250% Global Notes due June 1, 2043 | T 43 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.875% Global Notes due June 1, 2044 | T 44 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.000% Global Notes due June 1, 2049 | T 49A | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.250% Global Notes due March 1, 2050 | T 50 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.750% Global Notes due September 1, 2050 | T 50A | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.350% Global Notes due November 1, 2066 | TBB | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.625% Global Notes due August 1, 2067 | TBC | New York Stock Exchange |
(d) |
Exhibits | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
AT&T INC. | |||||
Date: July 21, 2022 |
By: /s/ Debra L. Dial .
Debra L. Dial
Senior Vice President - Chief Accounting Officer
and Controller
|
AT&T Inc. | ||||||||||||||||||||
Financial Data | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 24,268 | $ | 30,651 | (20.8) | % | $ | 48,267 | $ | 61,093 | (21.0) | % | ||||||||
Equipment | 5,375 | 5,089 | 5.6 | % | 11,088 | 10,524 | 5.4 | % | ||||||||||||
Total Operating Revenues | 29,643 | 35,740 | (17.1) | % | 59,355 | 71,617 | (17.1) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||
Equipment | 5,534 | 5,315 | 4.1 | % | 11,570 | 10,841 | 6.7 | % | ||||||||||||
Broadcast, programming and operations | — | 3,397 | — | % | — | 6,989 | — | % | ||||||||||||
Other cost of revenues (exclusive of
depreciation and amortization shown
separately below)
|
6,807 | 7,446 | (8.6) | % | 13,506 | 14,919 | (9.5) | % | ||||||||||||
Selling, general and administrative | 7,265 | 7,581 | (4.2) | % | 14,243 | 15,207 | (6.3) | % | ||||||||||||
Asset impairments and abandonments and restructuring |
631 | — | — | % | 631 | — | — | % | ||||||||||||
Depreciation and amortization | 4,450 | 4,429 | 0.5 | % | 8,912 | 8,895 | 0.2 | % | ||||||||||||
Total Operating Expenses | 24,687 | 28,168 | (12.4) | % | 48,862 | 56,851 | (14.1) | % | ||||||||||||
Operating Income | 4,956 | 7,572 | (34.5) | % | 10,493 | 14,766 | (28.9) | % | ||||||||||||
Interest Expense | 1,502 | 1,640 | (8.4) | % | 3,128 | 3,463 | (9.7) | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | 504 | (18) | — | % | 1,025 | (24) | — | % | ||||||||||||
Other Income (Expense) — Net | 2,302 | 1,206 | 90.9 | % | 4,459 | 5,436 | (18.0) | % | ||||||||||||
Income from Continuing Operations Before Income Taxes |
6,260 | 7,120 | (12.1) | % | 12,849 | 16,715 | (23.1) | % | ||||||||||||
Income tax expense on continuing
operations
|
1,509 | 1,151 | 31.1 | % | 2,949 | 3,160 | (6.7) | % | ||||||||||||
Income From Continuing Operations | 4,751 | 5,969 | (20.4) | % | 9,900 | 13,555 | (27.0) | % | ||||||||||||
Income (loss) from discontinued
operations, net of tax
|
(214) | (4,095) | 94.8 | % | (199) | (3,739) | 94.7 | % | ||||||||||||
Net Income | 4,537 | 1,874 | — | % | 9,701 | 9,816 | (1.2) | % | ||||||||||||
Less: Net Income Attributable to Noncontrolling Interest |
(380) | (304) | (25.0) | % | (734) | (696) | (5.5) | % | ||||||||||||
Net Income Attributable to AT&T | $ | 4,157 | $ | 1,570 | — | % | $ | 8,967 | $ | 9,120 | (1.7) | % | ||||||||
Less: Preferred Stock Dividends | (52) | (56) | 7.1 | % | (100) | (106) | 5.7 | % | ||||||||||||
Net Income Attributable to Common Stock | $ | 4,105 | $ | 1,514 | — | % | $ | 8,867 | $ | 9,014 | (1.6) | % | ||||||||
Basic Earnings Per Share Attributable to
Common Stock
|
||||||||||||||||||||
From continuing operations | $ | 0.60 | $ | 0.77 | (22.1) | % | $ | 1.26 | $ | 1.76 | (28.4) | % | ||||||||
From discontinued operations | $ | (0.03) | $ | (0.56) | 94.6 | % | $ | (0.03) | $ | (0.51) | 94.1 | % | ||||||||
$ | 0.57 | $ | 0.21 | — | % | $ | 1.23 | $ | 1.25 | (1.6) | % | |||||||||
Weighted Average Common Shares
Outstanding (000,000)
|
7,169 | 7,168 | — | % | 7,176 | 7,165 | 0.2 | % | ||||||||||||
Diluted Earnings Per Share Attributable to
Common Stock 1
|
||||||||||||||||||||
From continuing operations | $ | 0.59 | $ | 0.76 | (22.4) | % | $ | 1.23 | $ | 1.73 | (28.9) | % | ||||||||
From discontinued operations | $ | (0.03) | $ | (0.54) | 94.4 | % | $ | (0.02) | $ | (0.49) | 95.9 | % | ||||||||
$ | 0.56 | $ | 0.22 | — | % | $ | 1.21 | $ | 1.24 | (2.4) | % | |||||||||
Weighted Average Common Shares
Outstanding with Dilution (000,000) 1
|
7,611 | 7,484 | 1.7 | % | 7,584 | 7,483 | 1.3 | % | ||||||||||||
1Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 |
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Balance Sheets | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Jun. 30, | Dec. 31, | |||||||||
2022 | 2021 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 4,018 | $ | 19,223 | |||||||
Accounts receivable – net of related allowances for credit loss of $655 and $658 | 11,377 | 12,313 | |||||||||
Inventories | 3,241 | 3,325 | |||||||||
Prepaid and other current assets | 15,764 | 16,131 | |||||||||
Assets from discontinued operations | 85 | 119,776 | |||||||||
Total current assets | 34,485 | 170,768 | |||||||||
Property, Plant and Equipment – Net | 125,135 | 121,649 | |||||||||
Goodwill | 92,746 | 92,740 | |||||||||
Licenses – Net | 123,557 | 113,830 | |||||||||
Other Intangible Assets – Net | 5,371 | 5,391 | |||||||||
Investments in and Advances to Equity Affiliates | 4,523 | 6,168 | |||||||||
Operating Lease Right-Of-Use Assets | 21,808 | 21,824 | |||||||||
Other Assets | 18,808 | 19,252 | |||||||||
Total Assets | $ | 426,433 | $ | 551,622 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Debt maturing within one year | $ | 6,210 | $ | 24,620 | |||||||
Note payable to DIRECTV | 619 | 1,245 | |||||||||
Accounts payable and accrued liabilities | 35,459 | 39,095 | |||||||||
Advanced billings and customer deposits | 3,603 | 3,966 | |||||||||
Dividends payable | 2,013 | 3,749 | |||||||||
Liabilities from discontinued operations | 85 | 33,555 | |||||||||
Total current liabilities | 47,989 | 106,230 | |||||||||
Long-Term Debt | 129,747 | 151,011 | |||||||||
Deferred Credits and Other Noncurrent Liabilities | |||||||||||
Deferred income taxes | 55,301 | 53,767 | |||||||||
Postemployment benefit obligation | 9,775 | 12,560 | |||||||||
Operating lease liabilities | 18,749 | 18,956 | |||||||||
Other noncurrent liabilities | 28,365 | 25,243 | |||||||||
Total deferred credits and other noncurrent liabilities | 112,190 | 110,526 | |||||||||
Stockholders’ Equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 7,621 | 7,621 | |||||||||
Additional paid-in capital | 124,050 | 130,112 | |||||||||
Retained earnings | 2,128 | 42,350 | |||||||||
Treasury stock | (17,160) | (17,280) | |||||||||
Accumulated other comprehensive income | 2,307 | 3,529 | |||||||||
Noncontrolling interest | 17,561 | 17,523 | |||||||||
Total stockholders’ equity | 136,507 | 183,855 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 426,433 | $ | 551,622 | |||||||
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Six-Month Period | ||||||||||
2022 | 2021 | ||||||||||
Operating Activities | |||||||||||
Income from continuing operations | $ | 9,900 | $ | 13,555 | |||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: |
|||||||||||
Depreciation and amortization | 8,912 | 8,895 | |||||||||
Provision for uncollectible accounts | 870 | 606 | |||||||||
Deferred income tax expense | 2,324 | 3,525 | |||||||||
Net (gain) loss on investments, net of impairments | 333 | (310) | |||||||||
Pension and postretirement benefit expense (credit) | (1,735) | (1,903) | |||||||||
Actuarial (gain) loss on pension and postretirement benefits | (2,398) | (2,647) | |||||||||
Asset impairments and abandonments and restructuring | 631 | — | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 1,292 | 796 | |||||||||
Other current assets | 11 | 751 | |||||||||
Accounts payable and other accrued liabilities | (3,905) | (4,108) | |||||||||
Equipment installment receivables and related sales | 342 | 811 | |||||||||
Deferred customer contract acquisition and fulfillment costs | (506) | 394 | |||||||||
Postretirement claims and contributions | (186) | (207) | |||||||||
Other - net | (515) | (375) | |||||||||
Total adjustments | 5,470 | 6,228 | |||||||||
Net Cash Provided by Operating Activities from Continuing Operations | 15,370 | 19,783 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | (9,476) | (7,581) | |||||||||
Acquisitions, net of cash acquired | (9,570) | (23,143) | |||||||||
Dispositions | 22 | 375 | |||||||||
Distributions from DIRECTV in excess of cumulative equity in earnings | 1,638 | — | |||||||||
Other - net | 75 | 20 | |||||||||
Net Cash Used in Investing Activities from Continuing Operations | (17,311) | (30,329) | |||||||||
Financing Activities | |||||||||||
Net change in short-term borrowings with original maturities of three months or less | 172 | 76 | |||||||||
Issuance of other short-term borrowings | 2,593 | 16,440 | |||||||||
Repayment of other short-term borrowings | (15,613) | (857) | |||||||||
Issuance of long-term debt | 479 | 9,097 | |||||||||
Repayment of long-term debt | (24,213) | (1,096) | |||||||||
Repayment of note payable to DIRECTV | (722) | — | |||||||||
Payment of vendor financing | (3,337) | (2,994) | |||||||||
Purchase of treasury stock | (872) | (185) | |||||||||
Issuance of treasury stock | 28 | 85 | |||||||||
Dividends paid | (5,835) | (7,571) | |||||||||
Other - net | (2,144) | (892) | |||||||||
Net Cash (Used in) Provided by Financing Activities from Continuing Operations | (49,464) | 12,103 | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations |
(51,405) | 1,557 | |||||||||
Cash flows from Discontinued Operations: | |||||||||||
Cash (used in) provided by operating activities | (3,731) | 1,054 | |||||||||
Cash provided by (used in) investing activities | 872 | (302) | |||||||||
Cash provided by (used in) financing activities | 37,065 | (203) | |||||||||
Net increase in cash and cash equivalents and restricted cash from discontinued operations |
34,206 | 549 | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (17,199) | $ | 2,106 | |||||||
Cash and cash equivalents and restricted cash beginning of year | 21,316 | 9,870 | |||||||||
Cash and Cash Equivalents and Restricted Cash End of Period | $ | 4,117 | $ | 11,976 |
AT&T Inc. | ||||||||||||||||||||
Consolidated Supplementary Data | ||||||||||||||||||||
Supplementary Financial Data | ||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Capital expenditures | ||||||||||||||||||||
Purchase of property and equipment | $ | 4,867 | $ | 3,677 | 32.4 | % | $ | 9,399 | $ | 7,487 | 25.5 | % | ||||||||
Interest during construction - capital expenditures | 41 | 33 | 24.2 | % | 77 | 94 | (18.1) | % | ||||||||||||
Total Capital Expenditures | $ | 4,908 | $ | 3,710 | 32.3 | % | $ | 9,476 | $ | 7,581 | 25.0 | % | ||||||||
Acquisition, net of cash acquired | ||||||||||||||||||||
Spectrum acquisitions | $ | 8 | $ | 10 | (20.0) | % | $ | 8,964 | $ | 22,886 | (60.8) | % | ||||||||
Interest during construction - spectrum | 318 | 257 | 23.7 | % | 606 | 257 | — | % | ||||||||||||
Total Acquisitions | $ | 326 | $ | 267 | 22.1 | % | $ | 9,570 | $ | 23,143 | (58.6) | % | ||||||||
Dividends Declared per Common Share | $ | 0.2775 | $ | 0.52 | (46.6) | % | $ | 0.5550 | $ | 1.04 | (46.6) | % | ||||||||
End of Period Common Shares Outstanding (000,000) | 7,126 | 7,140 | (0.2) | % | ||||||||||||||||
Debt Ratio | 49.9 | % | 49.7 | % | 20 | BP | ||||||||||||||
Total Employees | 172,400 | 188,710 | (8.6) | % | ||||||||||||||||
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Mobility | $ | 19,926 | $ | 18,936 | 5.2 | % | $ | 40,001 | $ | 37,970 | 5.3 | % | ||||||||
Business Wireline | 5,595 | 6,052 | (7.6) | % | 11,235 | 12,098 | (7.1) | % | ||||||||||||
Consumer Wireline | 3,174 | 3,140 | 1.1 | % | 6,335 | 6,238 | 1.6 | % | ||||||||||||
Total Segment Operating Revenues | 28,695 | 28,128 | 2.0 | % | 57,571 | 56,306 | 2.2 | % | ||||||||||||
Operating Income | ||||||||||||||||||||
Mobility | 6,212 | 6,007 | 3.4 | % | 12,065 | 12,051 | 0.1 | % | ||||||||||||
Business Wireline | 710 | 1,069 | (33.6) | % | 1,569 | 2,149 | (27.0) | % | ||||||||||||
Consumer Wireline | 304 | 308 | (1.3) | % | 621 | 615 | 1.0 | % | ||||||||||||
Total Operating Income | $ | 7,226 | $ | 7,384 | (2.1) | % | $ | 14,255 | $ | 14,815 | (3.8) | % | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
Broadband | 15,136 | 14,988 | 1.0 | % | ||||||||||||||||
DSL | 373 | 493 | (24.3) | % | ||||||||||||||||
Total Broadband Connections | 15,509 | 15,481 | 0.2 | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Retail Consumer Switched Access Lines | 5,725 | 6,691 | (14.4) | % | ||||||||||||||||
U-verse Consumer VoIP Connections | 3,124 | 3,559 | (12.2) | % | ||||||||||||||||
Total Retail Voice Connections | 8,849 | 10,250 | (13.7) | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
Broadband | 6 | 80 | (92.5) | % | 62 | 170 | (63.5) | % | ||||||||||||
DSL | (30) | (34) | 11.8 | % | (57) | (73) | 21.9 | % | ||||||||||||
Total Broadband Net Additions | (24) | 46 | — | % | 5 | 97 | (94.8) | % |
Mobility Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 15,004 | $ | 14,346 | 4.6 | % | $ | 29,728 | $ | 28,394 | 4.7 | % | ||||||||
Equipment | 4,922 | 4,590 | 7.2 | % | 10,273 | 9,576 | 7.3 | % | ||||||||||||
Total Operating Revenues | 19,926 | 18,936 | 5.2 | % | 40,001 | 37,970 | 5.3 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 11,697 | 10,906 | 7.3 | % | 23,860 | 21,882 | 9.0 | % | ||||||||||||
Depreciation and amortization | 2,017 | 2,023 | (0.3) | % | 4,076 | 4,037 | 1.0 | % | ||||||||||||
Total Operating Expenses | 13,714 | 12,929 | 6.1 | % | 27,936 | 25,919 | 7.8 | % | ||||||||||||
Operating Income | $ | 6,212 | $ | 6,007 | 3.4 | % | $ | 12,065 | $ | 12,051 | 0.1 | % | ||||||||
Operating Income Margin | 31.2 | % | 31.7 | % | (50) | BP | 30.2 | % | 31.7 | % | (150) | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Mobility Subscribers | ||||||||||||||||||||
Postpaid | 82,694 | 79,059 | 4.6 | % | ||||||||||||||||
Postpaid phone | 68,311 | 65,503 | 4.3 | % | ||||||||||||||||
Prepaid | 19,095 | 18,681 | 2.2 | % | ||||||||||||||||
Reseller | 5,480 | 6,406 | (14.5) | % | ||||||||||||||||
Connected Devices | 96,104 | 87,500 | 9.8 | % | ||||||||||||||||
Total Mobility Subscribers1 |
203,373 | 191,646 | 6.1 | % | ||||||||||||||||
1Wireless subscribers at June 30, 2022 includes a reduction of 10.7 million subscribers and connections (899 postpaid, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8.8 million connected devices) resulting from our 3G network shutdown in February 2022. | ||||||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Mobility Net Additions | ||||||||||||||||||||
Postpaid Phone Net Additions | 813 | 789 | 3.0 | % | 1,504 | 1,384 | 8.7 | % | ||||||||||||
Total Phone Net Additions | 1,009 | 963 | 4.8 | % | 1,813 | 1,765 | 2.7 | % | ||||||||||||
Postpaid | 1,058 | 1,156 | (8.5) | % | 2,023 | 1,979 | 2.2 | % | ||||||||||||
Prepaid | 231 | 297 | (22.2) | % | 347 | 576 | (39.8) | % | ||||||||||||
Reseller | 21 | (125) | — | % | 4 | (193) | — | % | ||||||||||||
Connected Devices | 5,292 | 4,209 | 25.7 | % | 9,760 | 6,726 | 45.1 | % | ||||||||||||
Total Mobility Net Additions | 6,602 | 5,537 | 19.2 | % | 12,134 | 9,088 | 33.5 | % | ||||||||||||
Postpaid Churn | 0.93 | % | 0.87 | % | 6 | BP | 0.93 | % | 0.90 | % | 3 BP | |||||||||
Postpaid Phone-Only Churn | 0.75 | % | 0.69 | % | 6 | BP | 0.77 | % | 0.73 | % | 4 BP |
Business Wireline Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 5,416 | $ | 5,860 | (7.6) | % | $ | 10,894 | $ | 11,732 | (7.1) | % | ||||||||
Equipment | 179 | 192 | (6.8) | % | 341 | 366 | (6.8) | % | ||||||||||||
Total Operating Revenues | 5,595 | 6,052 | (7.6) | % | 11,235 | 12,098 | (7.1) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 3,572 | 3,690 | (3.2) | % | 7,054 | 7,378 | (4.4) | % | ||||||||||||
Depreciation and amortization | 1,313 | 1,293 | 1.5 | % | 2,612 | 2,571 | 1.6 | % | ||||||||||||
Total Operating Expenses | 4,885 | 4,983 | (2.0) | % | 9,666 | 9,949 | (2.8) | % | ||||||||||||
Operating Income | $ | 710 | $ | 1,069 | (33.6) | % | $ | 1,569 | $ | 2,149 | (27.0) | % | ||||||||
Operating Income Margin | 12.7 | % | 17.7 | % | (500) | BP | 14.0 | % | 17.8 | % | (380) | BP |
Consumer Wireline Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Broadband | $ | 2,393 | $ | 2,266 | 5.6 | % | $ | 4,748 | $ | 4,471 | 6.2 | % | ||||||||
Legacy voice and data services | 445 | 504 | (11.7) | % | 905 | 1,023 | (11.5) | % | ||||||||||||
Other service and equipment | 336 | 370 | (9.2) | % | 682 | 744 | (8.3) | % | ||||||||||||
Total Operating Revenues | 3,174 | 3,140 | 1.1 | % | 6,335 | 6,238 | 1.6 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 2,085 | 2,063 | 1.1 | % | 4,163 | 4,092 | 1.7 | % | ||||||||||||
Depreciation and amortization | 785 | 769 | 2.1 | % | 1,551 | 1,531 | 1.3 | % | ||||||||||||
Total Operating Expenses | 2,870 | 2,832 | 1.3 | % | 5,714 | 5,623 | 1.6 | % | ||||||||||||
Operating Income | $ | 304 | $ | 308 | (1.3) | % | $ | 621 | $ | 615 | 1.0 | % | ||||||||
Operating Income Margin | 9.6 | % | 9.8 | % | (20) | BP | 9.8 | % | 9.9 | % | (10) | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
Total Broadband and DSL Connections | 14,105 | 14,174 | (0.5) | % | ||||||||||||||||
Broadband | 13,825 | 13,818 | 0.1 | % | ||||||||||||||||
Fiber Broadband Connections | 6,597 | 5,432 | 21.4 | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Retail Consumer Switched Access Lines | 2,228 | 2,631 | (15.3) | % | ||||||||||||||||
U-verse Consumer VoIP Connections | 2,521 | 2,965 | (15.0) | % | ||||||||||||||||
Total Retail Consumer Voice Connections | 4,749 | 5,596 | (15.1) | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
Total Broadband and DSL Net Additions | (43) | 28 | — | % | (55) | 74 | — | % | ||||||||||||
Broadband | (25) | 51 | — | % | (20) | 125 | — | % | ||||||||||||
Fiber Broadband Net Additions | 316 | 246 | 28.5 | % | 605 | 481 | 25.8 | % | ||||||||||||
Business Solutions Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 2,175 | $ | 2,025 | 7.4 | % | $ | 4,309 | $ | 3,994 | 7.9 | % | ||||||||
Wireline service | 5,416 | 5,860 | (7.6) | % | 10,894 | 11,732 | (7.1) | % | ||||||||||||
Wireless equipment | 874 | 781 | 11.9 | % | 1,773 | 1,571 | 12.9 | % | ||||||||||||
Wireline equipment | 179 | 192 | (6.8) | % | 341 | 366 | (6.8) | % | ||||||||||||
Total Operating Revenues | 8,644 | 8,858 | (2.4) | % | 17,317 | 17,663 | (2.0) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 5,684 | 5,643 | 0.7 | % | 11,292 | 11,162 | 1.2 | % | ||||||||||||
Depreciation and amortization | 1,666 | 1,638 | 1.7 | % | 3,326 | 3,252 | 2.3 | % | ||||||||||||
Total Operating Expenses | 7,350 | 7,281 | 0.9 | % | 14,618 | 14,414 | 1.4 | % | ||||||||||||
Operating Income | $ | 1,294 | $ | 1,577 | (17.9) | % | $ | 2,699 | $ | 3,249 | (16.9) | % | ||||||||
Operating Income Margin | 15.0 | % | 17.8 | % | (280) | BP | 15.6 | % | 18.4 | % | (280) | BP |
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Second Quarter | Percent | Six-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 534 | $ | 447 | 19.5 | % | $ | 1,024 | $ | 886 | 15.6 | % | ||||||||
Wireless equipment | 274 | 241 | 13.7 | % | 474 | 433 | 9.5 | % | ||||||||||||
Total Segment Operating Revenues | 808 | 688 | 17.4 | % | 1,498 | 1,319 | 13.6 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 721 | 667 | 8.1 | % | 1,352 | 1,287 | 5.1 | % | ||||||||||||
Depreciation and amortization | 169 | 150 | 12.7 | % | 330 | 295 | 11.9 | % | ||||||||||||
Total Segment Operating Expenses | 890 | 817 | 8.9 | % | 1,682 | 1,582 | 6.3 | % | ||||||||||||
Operating Income (Loss) | $ | (82) | $ | (129) | 36.4 | % | $ | (184) | $ | (263) | 30.0 | % | ||||||||
Operating Income Margin | (10.1) | % | (18.8) | % | 870 | BP | (12.3) | % | (19.9) | % | 760 | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | June 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Mexico Wireless Subscribers | ||||||||||||||||||||
Postpaid | 4,835 | 4,745 | 1.9 | % | ||||||||||||||||
Prepaid | 15,422 | 13,810 | 11.7 | % | ||||||||||||||||
Reseller | 443 | 491 | (9.8) | % | ||||||||||||||||
Total Mexico Wireless Subscribers | 20,700 | 19,046 | 8.7 | % | ||||||||||||||||
Second Quarter | Percent | Six-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Mexico Wireless Net Additions | ||||||||||||||||||||
Postpaid | 25 | 20 | 25.0 | % | 28 | 49 | (42.9) | % | ||||||||||||
Prepaid | 187 | 54 | — | % | 365 | 52 | — | % | ||||||||||||
Reseller | (15) | (9) | (66.7) | % | (55) | 2 | — | % | ||||||||||||
Total Mexico Wireless Net Additions | 197 | 65 | — | % | 338 | 103 | — | % | ||||||||||||
Three Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
Revenues | Operations and Support Expenses |
EBITDA | Depreciation and Amortization |
Operating Income (Loss) |
|||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 19,926 | $ | 11,697 | $ | 8,229 | $ | 2,017 | $ | 6,212 | |||||||
Business Wireline | 5,595 | 3,572 | 2,023 | 1,313 | 710 | ||||||||||||
Consumer Wireline | 3,174 | 2,085 | 1,089 | 785 | 304 | ||||||||||||
Total Communications | 28,695 | 17,354 | 11,341 | 4,115 | 7,226 | ||||||||||||
Latin America - Mexico | 808 | 721 | 87 | 169 | (82) | ||||||||||||
Segment Total | 29,503 | 18,075 | 11,428 | 4,284 | 7,144 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | 207 | (207) | 135 | (342) | ||||||||||||
Parent administration support | (6) | 303 | (309) | 4 | (313) | ||||||||||||
Securitization fees | 17 | 78 | (61) | — | (61) | ||||||||||||
Value portfolio | 129 | 37 | 92 | 10 | 82 | ||||||||||||
Total Corporate | 140 | 625 | (485) | 149 | (634) | ||||||||||||
Reclassification of prior service credits | — | 613 | (613) | — | (613) | ||||||||||||
Merger & Significant Items | — | 924 | (924) | 17 | (941) | ||||||||||||
Total Corporate and Other | 140 | 2,162 | (2,022) | 166 | (2,188) | ||||||||||||
AT&T Inc. | $ | 29,643 | $ | 20,237 | $ | 9,406 | $ | 4,450 | $ | 4,956 | |||||||
Three Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
June 30, 2021 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 18,936 | $ | 10,906 | $ | 8,030 | $ | 2,023 | $ | 6,007 | |||||||
Business Wireline | 6,052 | 3,690 | 2,362 | 1,293 | 1,069 | ||||||||||||
Consumer Wireline | 3,140 | 2,063 | 1,077 | 769 | 308 | ||||||||||||
Total Communications | 28,128 | 16,659 | 11,469 | 4,085 | 7,384 | ||||||||||||
Latin America - Mexico | 688 | 667 | 21 | 150 | (129) | ||||||||||||
Segment Total | 28,816 | 17,326 | 11,490 | 4,235 | 7,255 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | — | — | — | — | ||||||||||||
Parent administration support | 3 | 414 | (411) | 8 | (419) | ||||||||||||
Securitization fees | 15 | 12 | 3 | — | 3 | ||||||||||||
Value portfolio | 166 | 71 | 95 | 10 | 85 | ||||||||||||
Total Corporate | 184 | 497 | (313) | 18 | (331) | ||||||||||||
Video | 6,639 | 5,275 | 1,364 | 148 | 1,216 | ||||||||||||
Held-for-sale and other
reclassifications
|
158 | 96 | 62 | — | 62 | ||||||||||||
Reclassification of prior service credits | — | 672 | (672) | — | (672) | ||||||||||||
Merger & Significant Items | — | (70) | 70 | 28 | 42 | ||||||||||||
Eliminations and consolidations | (57) | (57) | — | — | — | ||||||||||||
Total Corporate and Other | 6,924 | 6,413 | 511 | 194 | 317 | ||||||||||||
AT&T Inc. | $ | 35,740 | $ | 23,739 | $ | 12,001 | $ | 4,429 | $ | 7,572 | |||||||
Six Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
Revenues | Operations and Support Expenses |
EBITDA | Depreciation and Amortization |
Operating Income (Loss) |
|||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 40,001 | $ | 23,860 | $ | 16,141 | $ | 4,076 | $ | 12,065 | |||||||
Business Wireline | 11,235 | 7,054 | 4,181 | 2,612 | 1,569 | ||||||||||||
Consumer Wireline | 6,335 | 4,163 | 2,172 | 1,551 | 621 | ||||||||||||
Total Communications | 57,571 | 35,077 | 22,494 | 8,239 | 14,255 | ||||||||||||
Latin America - Mexico | 1,498 | 1,352 | 146 | 330 | (184) | ||||||||||||
Segment Total | 59,069 | 36,429 | 22,640 | 8,569 | 14,071 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | 8 | 335 | (327) | 269 | (596) | ||||||||||||
Parent administration support | (18) | 607 | (625) | 10 | (635) | ||||||||||||
Securitization fees | 33 | 160 | (127) | — | (127) | ||||||||||||
Value portfolio | 263 | 74 | 189 | 20 | 169 | ||||||||||||
Total Corporate | 286 | 1,176 | (890) | 299 | (1,189) | ||||||||||||
Reclassification of prior service credits | — | 1,230 | (1,230) | — | (1,230) | ||||||||||||
Merger & Significant Items | — | 1,115 | (1,115) | 44 | (1,159) | ||||||||||||
Total Corporate and Other | 286 | 3,521 | (3,235) | 343 | (3,578) | ||||||||||||
AT&T Inc. | $ | 59,355 | $ | 39,950 | $ | 19,405 | $ | 8,912 | $ | 10,493 | |||||||
Six Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
June 30, 2021 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 37,970 | $ | 21,882 | $ | 16,088 | $ | 4,037 | $ | 12,051 | |||||||
Business Wireline | 12,098 | 7,378 | 4,720 | 2,571 | 2,149 | ||||||||||||
Consumer Wireline | 6,238 | 4,092 | 2,146 | 1,531 | 615 | ||||||||||||
Total Communications | 56,306 | 33,352 | 22,954 | 8,139 | 14,815 | ||||||||||||
Latin America - Mexico | 1,319 | 1,287 | 32 | 295 | (263) | ||||||||||||
Segment Total | 57,625 | 34,639 | 22,986 | 8,434 | 14,552 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | — | — | — | — | ||||||||||||
Parent administration support | (12) | 787 | (799) | 15 | (814) | ||||||||||||
Securitization fees | 28 | 52 | (24) | — | (24) | ||||||||||||
Value portfolio | 342 | 115 | 227 | 20 | 207 | ||||||||||||
Total Corporate | 358 | 954 | (596) | 35 | (631) | ||||||||||||
Video | 13,364 | 10,935 | 2,429 | 312 | 2,117 | ||||||||||||
Held-for-sale and other
reclassifications
|
389 | 275 | 114 | — | 114 | ||||||||||||
Reclassification of prior service credits | — | 1,341 | (1,341) | — | (1,341) | ||||||||||||
Merger & Significant Items | — | (69) | 69 | 114 | (45) | ||||||||||||
Eliminations and consolidations | (119) | (119) | — | — | — | ||||||||||||
Total Corporate and Other | 13,992 | 13,317 | 675 | 461 | 214 | ||||||||||||
AT&T Inc. | $ | 71,617 | $ | 47,956 | $ | 23,661 | $ | 8,895 | $ | 14,766 | |||||||
Free Cash Flow and Free Cash Flow Dividend Payout Ratio | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Net cash provided by operating activities1 |
$ | 7,740 | $ | 10,181 | $ | 15,370 | $ | 19,783 | |||||||||
Add: Distributions from DIRECTV classified as investing activities | 323 | — | 1,638 | — | |||||||||||||
Less: Capital expenditures | (4,908) | (3,710) | (9,476) | (7,581) | |||||||||||||
Less: Cash paid for vendor financing | (1,771) | (1,304) | (3,337) | (2,994) | |||||||||||||
Free Cash Flow | 1,384 | 5,167 | 4,195 | 9,208 | |||||||||||||
Less: Dividends paid | (2,086) | (3,830) | (5,835) | (7,571) | |||||||||||||
Free Cash Flow after Dividends | $ | (702) | $ | 1,337 | $ | (1,640) | $ | 1,637 | |||||||||
Free Cash Flow Dividend Payout Ratio | 150.7 | % | 74.1 | % | 139.1 | % | 82.2 | % | |||||||||
1Includes distributions from DIRECTV of $515 in the second quarter and $1,037 in the first six months of 2022. |
Cash Paid for Capital Investment | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Capital Expenditures | $ | (4,908) | $ | (3,710) | $ | (9,476) | $ | (7,581) | |||||||||
Cash paid for vendor financing | (1,771) | (1,304) | (3,337) | (2,994) | |||||||||||||
Cash paid for Capital Investment | $ | (6,679) | $ | (5,014) | $ | (12,813) | $ | (10,575) | |||||||||
EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Income from Continuing Operations | $ | 4,751 | $ | 5,969 | $ | 9,900 | $ | 13,555 | |||||||||
Additions: | |||||||||||||||||
Income Tax Expense | 1,509 | 1,151 | 2,949 | 3,160 | |||||||||||||
Interest Expense | 1,502 | 1,640 | 3,128 | 3,463 | |||||||||||||
Equity in Net (Income) Loss of Affiliates | (504) | 18 | (1,025) | 24 | |||||||||||||
Other (Income) Expense - Net | (2,302) | (1,206) | (4,459) | (5,436) | |||||||||||||
Depreciation and amortization | 4,450 | 4,429 | 8,912 | 8,895 | |||||||||||||
EBITDA | 9,406 | 12,001 | 19,405 | 23,661 | |||||||||||||
Transaction and other costs | 185 | — | 283 | 35 | |||||||||||||
Employee separation costs and benefit-related (gain) loss |
108 | (70) | 201 | (104) | |||||||||||||
Assets impairments and abandonment and restructuring |
631 | — | 631 | — | |||||||||||||
Adjusted EBITDA 1 |
$ | 10,330 | $ | 11,931 | $ | 20,520 | $ | 23,592 | |||||||||
Less: Video and Other dispositions | — | (1,776) | — | (3,243) | |||||||||||||
Standalone AT&T Adjusted EBITDA 2 |
$ | 10,330 | $ | 10,155 | $ | 20,520 | $ | 20,349 | |||||||||
1 See page 5 for additional discussion and reconciliation of adjusted items. | |||||||||||||||||
2 See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA. |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Communications Segment | |||||||||||||||||
Operating Income | $ | 7,226 | $ | 7,384 | $ | 14,255 | $ | 14,815 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 4,115 | 4,085 | 8,239 | 8,139 | |||||||||||||
EBITDA | 11,341 | 11,469 | 22,494 | 22,954 | |||||||||||||
Total Operating Revenues | 28,695 | 28,128 | 57,571 | 56,306 | |||||||||||||
Operating Income Margin | 25.2 | % | 26.3 | % | 24.8 | % | 26.3 | % | |||||||||
EBITDA Margin | 39.5 | % | 40.8 | % | 39.1 | % | 40.8 | % | |||||||||
Mobility | |||||||||||||||||
Operating Income | $ | 6,212 | $ | 6,007 | $ | 12,065 | $ | 12,051 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 2,017 | 2,023 | 4,076 | 4,037 | |||||||||||||
EBITDA | 8,229 | 8,030 | 16,141 | 16,088 | |||||||||||||
Total Operating Revenues | 19,926 | 18,936 | 40,001 | 37,970 | |||||||||||||
Service Revenues | 15,004 | 14,346 | 29,728 | 28,394 | |||||||||||||
Operating Income Margin | 31.2 | % | 31.7 | % | 30.2 | % | 31.7 | % | |||||||||
EBITDA Margin | 41.3 | % | 42.4 | % | 40.4 | % | 42.4 | % | |||||||||
EBITDA Service Margin | 54.8 | % | 56.0 | % | 54.3 | % | 56.7 | % | |||||||||
Business Wireline | |||||||||||||||||
Operating Income | $ | 710 | $ | 1,069 | $ | 1,569 | $ | 2,149 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 1,313 | 1,293 | 2,612 | 2,571 | |||||||||||||
EBITDA | 2,023 | 2,362 | 4,181 | 4,720 | |||||||||||||
Total Operating Revenues | 5,595 | 6,052 | 11,235 | 12,098 | |||||||||||||
Operating Income Margin | 12.7 | % | 17.7 | % | 14.0 | % | 17.8 | % | |||||||||
EBITDA Margin | 36.2 | % | 39.0 | % | 37.2 | % | 39.0 | % | |||||||||
Consumer Wireline | |||||||||||||||||
Operating Income | $ | 304 | $ | 308 | $ | 621 | $ | 615 | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 785 | 769 | 1,551 | 1,531 | |||||||||||||
EBITDA | 1,089 | 1,077 | 2,172 | 2,146 | |||||||||||||
Total Operating Revenues | 3,174 | 3,140 | 6,335 | 6,238 | |||||||||||||
Operating Income Margin | 9.6 | % | 9.8 | % | 9.8 | % | 9.9 | % | |||||||||
EBITDA Margin | 34.3 | % | 34.3 | % | 34.3 | % | 34.4 | % | |||||||||
Latin America Segment - Mexico |
|||||||||||||||||
Operating Income | $ | (82) | $ | (129) | $ | (184) | $ | (263) | |||||||||
Additions: | |||||||||||||||||
Depreciation and amortization | 169 | 150 | 330 | 295 | |||||||||||||
EBITDA | 87 | 21 | 146 | 32 | |||||||||||||
Total Operating Revenues | 808 | 688 | 1,498 | 1,319 | |||||||||||||
Operating Income Margin | -10.1 | % | -18.8 | % | -12.3 | % | -19.9 | % | |||||||||
EBITDA Margin | 10.8 | % | 3.1 | % | 9.7 | % | 2.4 | % |
Adjusting Items | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Operating Expenses | |||||||||||||||||
Transaction and other costs | $ | 185 | $ | — | $ | 283 | $ | 35 | |||||||||
Benefit-related (gain) loss and other employee-related costs |
108 | (70) | 201 | (104) | |||||||||||||
Assets impairments and abandonment and restructuring |
631 | — | 631 | — | |||||||||||||
Adjustments to Operations and Support Expenses | 924 | (70) | 1,115 | (69) | |||||||||||||
Amortization of intangible assets | 17 | 28 | 44 | 114 | |||||||||||||
Adjustments to Operating Expenses | 941 | (42) | 1,159 | 45 | |||||||||||||
Other | |||||||||||||||||
DIRECTV intangible amortization (proportionate share) | 396 | — | 812 | — | |||||||||||||
Benefit-related (gain) loss, transaction financing costs and other |
314 | (213) | 406 | (337) | |||||||||||||
Actuarial (gain) loss | (1,345) | 197 | (2,398) | (2,647) | |||||||||||||
Adjustments to Income Before Income Taxes | 306 | (58) | (21) | (2,939) | |||||||||||||
Tax impact of adjustments | 38 | (1) | (65) | (725) | |||||||||||||
Tax-related items | (79) | 250 | (79) | 368 | |||||||||||||
Adjustments to Net Income | $ | 347 | $ | (307) | $ | 123 | $ | (2,582) | |||||||||
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA Margin | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Operating Income | $ | 4,956 | $ | 7,572 | $ | 10,493 | $ | 14,766 | |||||||||
Adjustments to Operating Expenses | 941 | (42) | 1,159 | 45 | |||||||||||||
Adjusted Operating Income | 5,897 | 7,530 | 11,652 | 14,811 | |||||||||||||
EBITDA | 9,406 | 12,001 | 19,405 | 23,661 | |||||||||||||
Adjustments to Operations and Support Expenses | 924 | (70) | 1,115 | (69) | |||||||||||||
Adjusted EBITDA | 10,330 | 11,931 | 20,520 | 23,592 | |||||||||||||
Total Operating Revenues | 29,643 | 35,740 | 59,355 | 71,617 | |||||||||||||
Operating Income Margin | 16.7 | % | 21.2 | % | 17.7 | % | 20.6 | % | |||||||||
Adjusted Operating Income Margin | 19.9 | % | 21.1 | % | 19.6 | % | 20.7 | % | |||||||||
Adjusted EBITDA Margin | 34.8 | % | 33.4 | % | 34.6 | % | 32.9 | % | |||||||||
Adjusted Diluted EPS | |||||||||||||||||
Second Quarter | Six-Month Period | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Diluted Earnings Per Share (EPS) | $ | 0.59 | $ | 0.76 | $ | 1.23 | $ | 1.73 | |||||||||
DIRECTV intangible amortization (proportionate share) | 0.04 | — | 0.08 | — | |||||||||||||
Actuarial (gain) loss 1 |
(0.13) | 0.02 | (0.24) | (0.27) | |||||||||||||
Restructuring and impairments | 0.06 | — | 0.06 | — | |||||||||||||
Benefit-related, transaction and other costs1, 2 |
0.08 | (0.02) | 0.13 | (0.01) | |||||||||||||
Tax-related items | 0.01 | (0.03) | 0.01 | (0.05) | |||||||||||||
Adjusted EPS | $ | 0.65 | $ | 0.73 | $ | 1.27 | $ | 1.40 | |||||||||
Less: Video and Other dispositions | — | (0.09) | — | (0.18) | |||||||||||||
Standalone AT&T Adjusted EPS3 |
$ | 0.65 | $ | 0.64 | $ | 1.27 | $ | 1.22 | |||||||||
Year-over-year growth - Adjusted | 1.6 | % | 4.1 | % | |||||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,611 | 7,484 | 7,584 | 7,483 | |||||||||||||
1Includes adjustments for actuarial gains or losses associated with our pension benefit plan, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gain of $1.3 billion in the second quarter of 2022. As a result, adjusted EPS reflects an expected return on plan assets of $0.8 billion (based on an average expected return on plan assets of 6.75% for our pension trust), rather than the actual return on plan assets of $(4.0) billion (actual pension return of -11.3%), included in the GAAP measure of income. Adjustments also include the impact to our second-quarter 2022 benefit expense accrual that resulted from the first-quarter 2022 remeasurement of plan assets and obligations, which included an increase in the assumed discount rate. | |||||||||||||||||
2As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II 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 II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. The per share impact of ASU 2020-06 was to decrease reported diluted EPS $0.02 and $0.01 for the quarters ended June 30, 2022 and 2021, and $0.02 and $0.02 for the six months ended June 30, 2022 and 2021, respectively. | |||||||||||||||||
3See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. |
Net Debt to Adjusted EBITDA - 2022 | |||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Sept. 30 | Dec. 31, | March 31, | June 30, | Four Quarters | |||||||||||||||||||||||||
2021 1 |
2021 1 |
2022 1 |
2022 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 10,803 | $ | 9,480 | $ | 10,190 | $ | 10,330 | $ | 40,803 | |||||||||||||||||||
End-of-period current debt | 6,210 | ||||||||||||||||||||||||||||
End-of-period long-term debt | 129,747 | ||||||||||||||||||||||||||||
Total End-of-Period Debt | 135,957 | ||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 4,018 | ||||||||||||||||||||||||||||
Net Debt Balance | 131,939 | ||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio 2 |
3.23 | ||||||||||||||||||||||||||||
1As reported in Exhibit 99.4. | |||||||||||||||||||||||||||||
2Annualized Net Debt to Adjusted EBITDA Ratio of 3.28 when adjusted to remove the impacts for Video and Other dispositions of $568 and $4 in the third and fourth quarters of 2021, respectively. Additional information on Standalone AT&T can be found in Exhibit 99.4. |
Net Debt to Adjusted EBITDA - 2021 | |||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Sept. 30 | Dec. 31, | March 31, | June 30, | Four Quarters | |||||||||||||||||||||||||
2020 1 |
2020 1 |
2021 1 |
2021 1 |
||||||||||||||||||||||||||
Adjusted EBITDA | $ | 11,642 | $ | 10,590 | $ | 11,661 | $ | 11,931 | $ | 45,824 | |||||||||||||||||||
End-of-period current debt | 23,975 | ||||||||||||||||||||||||||||
End-of-period long-term debt | 154,006 | ||||||||||||||||||||||||||||
Total End-of-Period Debt | 177,981 | ||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 9,924 | ||||||||||||||||||||||||||||
Net Debt Balance | 168,057 | ||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 3.67 | ||||||||||||||||||||||||||||
1As reported in Exhibit 99.4. |
Supplemental Operational Measure | |||||||||||||||||||||||||||||
Second Quarter | |||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||||||
Mobility | Business Wireline |
Adjustments1 |
Business Solutions |
Mobility | Business Wireline |
Adjustments1 |
Business Solutions |
||||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||||||||
Wireless service | $ | 15,004 | $ | — | $ | (12,829) | $ | 2,175 | $ | 14,346 | $ | — | $ | (12,321) | $ | 2,025 | |||||||||||||
Wireline service | — | 5,416 | — | 5,416 | — | 5,860 | — | 5,860 | |||||||||||||||||||||
Wireless equipment | 4,922 | — | (4,048) | 874 | 4,590 | — | (3,809) | 781 | |||||||||||||||||||||
Wireline equipment | — | 179 | — | 179 | — | 192 | — | 192 | |||||||||||||||||||||
Total Operating Revenues | 19,926 | 5,595 | (16,877) | 8,644 | 18,936 | 6,052 | (16,130) | 8,858 | |||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||
Operations and support | 11,697 | 3,572 | (9,585) | 5,684 | 10,906 | 3,690 | (8,953) | 5,643 | |||||||||||||||||||||
EBITDA | 8,229 | 2,023 | (7,292) | 2,960 | 8,030 | 2,362 | (7,177) | 3,215 | |||||||||||||||||||||
Depreciation and amortization | 2,017 | 1,313 | (1,664) | 1,666 | 2,023 | 1,293 | (1,678) | 1,638 | |||||||||||||||||||||
Total Operating Expenses | 13,714 | 4,885 | (11,249) | 7,350 | 12,929 | 4,983 | (10,631) | 7,281 | |||||||||||||||||||||
Operating Income | 6,212 | 710 | (5,628) | 1,294 | 6,007 | 1,069 | (5,499) | 1,577 | |||||||||||||||||||||
1Non-business wireless reported in the Communications segment under the Mobility business unit. | |||||||||||||||||||||||||||||
Results have been recast to conform to the current period's classification. |
Supplemental Operational Measure | |||||||||||||||||||||||||||||
Six-Month Period | |||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||||||
Mobility | Business Wireline |
Adjustments1 |
Business Solutions |
Mobility | Business Wireline |
Adjustments1 |
Business Solutions |
||||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||||||||
Wireless service | $ | 29,728 | $ | — | $ | (25,419) | $ | 4,309 | $ | 28,394 | $ | — | $ | (24,400) | $ | 3,994 | |||||||||||||
Wireline service | — | 10,894 | — | 10,894 | — | 11,732 | — | 11,732 | |||||||||||||||||||||
Wireless equipment | 10,273 | — | (8,500) | 1,773 | 9,576 | — | (8,005) | 1,571 | |||||||||||||||||||||
Wireline equipment | — | 341 | — | 341 | — | 366 | — | 366 | |||||||||||||||||||||
Total Operating Revenues | 40,001 | 11,235 | (33,919) | 17,317 | 37,970 | 12,098 | (32,405) | 17,663 | |||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||
Operations and support | 23,860 | 7,054 | (19,622) | 11,292 | 21,882 | 7,378 | (18,098) | 11,162 | |||||||||||||||||||||
EBITDA | 16,141 | 4,181 | (14,297) | 6,025 | 16,088 | 4,720 | (14,307) | 6,501 | |||||||||||||||||||||
Depreciation and amortization | 4,076 | 2,612 | (3,362) | 3,326 | 4,037 | 2,571 | (3,356) | 3,252 | |||||||||||||||||||||
Total Operating Expenses | 27,936 | 9,666 | (22,984) | 14,618 | 25,919 | 9,949 | (21,454) | 14,414 | |||||||||||||||||||||
Operating Income | 12,065 | 1,569 | (10,935) | 2,699 | 12,051 | 2,149 | (10,951) | 3,249 | |||||||||||||||||||||
1Non-business wireless reported in the Communications segment under the Mobility business unit. | |||||||||||||||||||||||||||||
Results have been recast to conform to the current period's classification. |
Standalone AT&T | |||||||||||||||||||||||||||||||||||||||||
Supplemental Unaudited Quarterly Financial Information | |||||||||||||||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||||||||||||||||
Operating Revenues | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | |||||||||||||||||||||||||||||
Revenues from Continuing Operations | $ | 35,357 | $ | 34,527 | $ | 35,407 | $ | 37,759 | $ | 143,050 | $ | 35,877 | $ | 35,740 | $ | 31,326 | $ | 31,095 | $ | 134,038 | $ | 29,712 | $ | 29,643 | |||||||||||||||||
[A] | Less: Video | (7,407) | (7,021) | (7,014) | (7,168) | (28,610) | (6,725) | (6,639) | (2,149) | — | (15,513) | — | — | ||||||||||||||||||||||||||||
[B] | Less: Other dispositions (Held-for-sale) | (369) | (369) | (420) | (256) | (1,414) | (231) | (158) | (64) | — | (453) | — | — | ||||||||||||||||||||||||||||
[H] | Less: Intercompany eliminations | 64 | 55 | 65 | 83 | 267 | 62 | 57 | 17 | — | 136 | — | — | ||||||||||||||||||||||||||||
Standalone AT&T Operating Revenues | $ | 27,645 | $ | 27,192 | $ | 28,038 | $ | 30,418 | $ | 113,293 | $ | 28,983 | $ | 29,000 | $ | 29,130 | $ | 31,095 | $ | 118,208 | $ | 29,712 | $ | 29,643 | |||||||||||||||||
Revenue from Continuing Operations Growth Rate Y/Y | 1.5 | % | 3.5 | % | -11.5 | % | -17.6 | % | -6.3 | % | -17.2 | % | -17.1 | % | |||||||||||||||||||||||||||
Standalone AT&T Revenue Growth Rate Y/Y | 4.8 | % | 6.6 | % | 3.9 | % | 2.2 | % | 4.3 | % | 2.5 | % | 2.2 | % | |||||||||||||||||||||||||||
Operations and Support Expenses | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | |||||||||||||||||||||||||||||
Operations and Support Expenses from Continuing Operations | $ | 22,369 | $ | 23,311 | $ | 23,733 | $ | 42,742 | $ | 112,155 | $ | 24,217 | $ | 23,739 | $ | 20,632 | $ | 21,701 | $ | 90,289 | $ | 19,713 | $ | 20,237 | |||||||||||||||||
[I] | Non-GAAP Adjustments | 720 | (854) | 32 | (15,573) | (15,675) | (1) | 70 | (109) | (86) | (126) | (191) | (924) | ||||||||||||||||||||||||||||
Adjusted Operations and Support Expenses from Continuing Operations | 23,089 | 22,457 | 23,765 | 27,169 | 96,480 | 24,216 | 23,809 | 20,523 | 21,615 | 90,163 | 19,522 | 19,313 | |||||||||||||||||||||||||||||
[A] | Less: Video | (6,020) | (5,809) | (5,887) | (6,458) | (24,174) | (5,660) | (5,275) | (1,731) | — | (12,666) | — | — | ||||||||||||||||||||||||||||
[B] | Less: Other dispositions (Held-for-sale) | (272) | (268) | (310) | (190) | (1,040) | (194) | (115) | (47) | — | (356) | — | — | ||||||||||||||||||||||||||||
[H] | Less: Intercompany eliminations | 64 | 55 | 65 | 83 | 267 | 62 | 57 | 17 | — | 136 | — | — | ||||||||||||||||||||||||||||
[D] | Less: Reclassification of allocations for separated businesses | 76 | 86 | 76 | 84 | 322 | 15 | 19 | 16 | (4) | 46 | — | — | ||||||||||||||||||||||||||||
[C] | Add: DTV-related retained costs | 350 | 350 | 350 | 350 | 1,400 | 350 | 350 | 117 | — | 817 | — | — | ||||||||||||||||||||||||||||
Standalone AT&T Adjusted Operations and Support Expenses | $ | 17,287 | $ | 16,871 | $ | 18,059 | $ | 21,038 | $ | 73,255 | $ | 18,789 | $ | 18,845 | $ | 18,895 | $ | 21,611 | $ | 78,140 | $ | 19,522 | $ | 19,313 | |||||||||||||||||
Operations and Support Expenses from Continuing Operations Growth Rate Y/Y | 8.3 | % | 1.8 | % | -13.1 | % | -49.2 | % | -19.5 | % | -18.6 | % | -14.8 | % | |||||||||||||||||||||||||||
Adjusted Operations and Support Expenses from Continuing Operations Growth Rate Y/Y | 4.9 | % | 6.0 | % | -13.6 | % | -20.4 | % | -6.5 | % | -19.4 | % | -18.9 | % | |||||||||||||||||||||||||||
Standalone AT&T Adjusted Operations and Support Expenses Growth Rate Y/Y | 8.7 | % | 11.7 | % | 4.6 | % | 2.7 | % | 6.7 | % | 3.9 | % | 2.5 | % | |||||||||||||||||||||||||||
Depreciation and Amortization Expense | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | |||||||||||||||||||||||||||||
Depreciation and Amortization Expense from Continuing Operations | $ | 5,705 | $ | 5,655 | $ | 5,610 | $ | 5,553 | $ | 22,523 | $ | 4,466 | $ | 4,429 | $ | 4,457 | $ | 4,500 | $ | 17,852 | $ | 4,462 | $ | 4,450 | |||||||||||||||||
[I] | Non-GAAP Adjustments | (913) | (878) | (839) | (811) | (3,441) | (85) | (28) | (28) | (28) | (169) | (27) | (17) | ||||||||||||||||||||||||||||
Adjusted Depreciation and Amortization Expense from Continuing Operations | 4,792 | 4,777 | 4,771 | 4,742 | 19,082 | 4,381 | 4,401 | 4,429 | 4,472 | 17,683 | 4,435 | 4,433 | |||||||||||||||||||||||||||||
[A] | Less: Video | (591) | (593) | (557) | (521) | (2,262) | (164) | (148) | (44) | — | (356) | — | — | ||||||||||||||||||||||||||||
[B] | Less: Other dispositions (Held-for-sale) | (4) | (4) | (4) | (3) | (15) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
[C] | Add: DTV-related retained costs | 180 | 180 | 180 | 180 | 720 | 180 | 180 | 60 | — | 420 | — | — | ||||||||||||||||||||||||||||
Standalone AT&T Adjusted Depreciation and Amortization Expense | $ | 4,377 | $ | 4,360 | $ | 4,390 | $ | 4,398 | $ | 17,525 | $ | 4,397 | $ | 4,433 | $ | 4,445 | $ | 4,472 | $ | 17,747 | $ | 4,435 | $ | 4,433 | |||||||||||||||||
Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y | -21.7 | % | -21.7 | % | -20.6 | % | -19.0 | % | -20.7 | % | -0.1 | % | 0.5 | % | |||||||||||||||||||||||||||
Adjusted Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y | -8.6 | % | -7.9 | % | -7.2 | % | -5.7 | % | -7.3 | % | 1.2 | % | 0.7 | % | |||||||||||||||||||||||||||
Standalone AT&T Adjusted Depreciation and Amortization Expense Growth Rate Y/Y | 0.5 | % | 1.7 | % | 1.3 | % | 1.7 | % | 1.3 | % | 0.9 | % | 0.0 | % | |||||||||||||||||||||||||||
Operating Income | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | |||||||||||||||||||||||||||||
Operating Income from Continuing Operations | $ | 7,283 | $ | 5,561 | $ | 6,064 | $ | (10,536) | $ | 8,372 | $ | 7,194 | $ | 7,572 | $ | 6,237 | $ | 4,894 | $ | 25,897 | $ | 5,537 | $ | 4,956 | |||||||||||||||||
[I] | Non-GAAP Adjustments | 193 | 1,732 | 807 | 16,384 | 19,116 | 86 | (42) | 137 | 114 | 295 | 218 | 941 | ||||||||||||||||||||||||||||
Adjusted Operating Income from Continuing Operations | 7,476 | 7,293 | 6,871 | 5,848 | 27,488 | 7,280 | 7,530 | 6,374 | 5,008 | 26,192 | 5,755 | 5,897 | |||||||||||||||||||||||||||||
Less: Video | (796) | (619) | (570) | (189) | (2,174) | (901) | (1,216) | (374) | — | (2,491) | — | — | |||||||||||||||||||||||||||||
Less: Other dispositions (Held-for-sale) | (93) | (97) | (106) | (63) | (359) | (37) | (43) | (17) | — | (97) | — | — | |||||||||||||||||||||||||||||
Less: Intercompany eliminations | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Less: Reclassification of allocations for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | — | — | |||||||||||||||||||||||||||||
Add: DTV-related retained costs | (530) | (530) | (530) | (530) | (2,120) | (530) | (530) | (177) | — | (1,237) | — | — | |||||||||||||||||||||||||||||
Standalone AT&T Adjusted Operating Income | $ | 5,981 | $ | 5,961 | $ | 5,589 | $ | 4,982 | $ | 22,513 | $ | 5,797 | $ | 5,722 | $ | 5,790 | $ | 5,012 | $ | 22,321 | $ | 5,755 | $ | 5,897 | |||||||||||||||||
Operating Income from Continuing Operations Growth Rate Y/Y | -1.2 | % | 36.2 | % | 2.9 | % | 146.5 | % | 209.3 | % | -23.0 | % | -34.5 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Growth Rate Y/Y | -2.6 | % | 3.2 | % | -7.2 | % | -14.4 | % | -4.7 | % | -20.9 | % | -21.7 | % | |||||||||||||||||||||||||||
Standalone AT&T Adjusted Operating Income Growth Rate Y/Y | -3.1 | % | -4.0 | % | 3.6 | % | 0.6 | % | -0.9 | % | -0.7 | % | 3.1 | % | |||||||||||||||||||||||||||
Operating Income Margin from Continuing Operations | 20.6 | % | 16.1 | % | 17.1 | % | -27.9 | % | 5.9 | % | 20.1 | % | 21.2 | % | 19.9 | % | 15.7 | % | 19.3 | % | 18.6 | % | 16.7 | % | |||||||||||||||||
Adjusted Operating Income Margin | 21.1 | % | 21.1 | % | 19.4 | % | 15.5 | % | 19.2 | % | 20.3 | % | 21.1 | % | 20.3 | % | 16.1 | % | 19.5 | % | 19.4 | % | 19.9 | % | |||||||||||||||||
Standalone AT&T Adjusted Operating Income Margin | 21.6 | % | 21.9 | % | 19.9 | % | 16.4 | % | 19.9 | % | 20.0 | % | 19.7 | % | 19.9 | % | 16.1 | % | 18.9 | % | 19.4 | % | 19.9 | % | |||||||||||||||||
Other Income (Expense) | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | |||||||||||||||||||||||||||||
Interest expense | $ | (1,963) | $ | (1,990) | $ | (1,923) | $ | (1,851) | $ | (7,727) | $ | (1,823) | $ | (1,640) | $ | (1,627) | $ | (1,626) | $ | (6,716) | $ | (1,626) | $ | (1,502) | |||||||||||||||||
Equity in net income (loss) of affiliates | — | 10 | 29 | 50 | 89 | (6) | (18) | 183 | 444 | 603 | 521 | 504 | |||||||||||||||||||||||||||||
Other income (expense) - net | 827 | 1,161 | (211) | (2,865) | (1,088) | 4,230 | 1,206 | 1,522 | 2,429 | 9,387 | 2,157 | 2,302 | |||||||||||||||||||||||||||||
Other Income (Expense) from Continuing Operations | (1,136) | (819) | (2,105) | (4,666) | (8,726) | 2,401 | (452) | 78 | 1,247 | 3,274 | 1,052 | 1,304 | |||||||||||||||||||||||||||||
[I] | Non-GAAP Adjustments | 293 | (26) | 1,225 | 3,962 | 5,454 | (2,968) | (16) | 18 | (769) | (3,735) | (545) | (635) | ||||||||||||||||||||||||||||
Adjusted Other Income (Expense) from Continuing Operations | (843) | (845) | (880) | (704) | (3,272) | (567) | (468) | 96 | 478 | (461) | 507 | 669 | |||||||||||||||||||||||||||||
[F] | Less: Estimated interest expense impact of debt redemptions | — | — | — | — | — | 371 | 371 | 371 | 371 | 1,484 | 371 | 371 | ||||||||||||||||||||||||||||
[E] | Add: Estimated equity in net income from DIRECTV investment | 971 | 848 | 789 | 497 | 3,105 | 746 | 955 | 293 | — | 1,994 | — | — | ||||||||||||||||||||||||||||
Standalone AT&T Adjusted Other Income (Expense) | $ | 128 | $ | 3 | $ | (91) | $ | (207) | $ | (167) | $ | 550 | $ | 858 | $ | 760 | $ | 849 | $ | 3,017 | $ | 878 | $ | 1,040 | |||||||||||||||||
Income From Continuing Operations | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | |||||||||||||||||||||||||||||
Income from Continuing Operations | $ | 4,849 | $ | 3,699 | $ | 3,204 | $ | (13,274) | $ | (1,522) | $ | 7,586 | $ | 5,969 | $ | 5,019 | $ | 5,202 | $ | 23,776 | $ | 5,149 | $ | 4,751 | |||||||||||||||||
[I] | Non-GAAP Adjustments | 383 | 1,330 | 1,645 | 17,485 | 20,843 | (2,276) | (307) | 153 | (764) | (3,194) | (224) | 347 | ||||||||||||||||||||||||||||
Adjusted Income from Continuing Operations | 5,232 | 5,029 | 4,849 | 4,211 | 19,321 | 5,310 | 5,662 | 5,172 | 4,438 | 20,582 | 4,925 | 5,098 | |||||||||||||||||||||||||||||
Less: Operating Income of Video and Other dispositions | (1,495) | (1,332) | (1,282) | (866) | (4,975) | (1,483) | (1,808) | (584) | 4 | (3,871) | — | — | |||||||||||||||||||||||||||||
Add: Estimated equity in net income from DIRECTV investment | 971 | 848 | 789 | 497 | 3,105 | 746 | 955 | 293 | — | 1,994 | — | — | |||||||||||||||||||||||||||||
Less: Estimated interest expense impact of debt redemptions | — | — | — | — | — | 371 | 371 | 371 | 371 | 1,484 | 371 | 371 | |||||||||||||||||||||||||||||
[G] | Less: Estimated tax on Video & Other dispositions | (111) | (106) | (94) | (67) | (378) | (73) | (95) | 16 | 75 | (76) | 74 | 74 | ||||||||||||||||||||||||||||
Add: Adjustment of estimated interest expense impact of debt redemptions | — | — | — | — | — | (297) | (297) | (297) | (297) | (1,187) | (297) | (297) | |||||||||||||||||||||||||||||
Standalone AT&T Adjusted Net Income | 4,819 | 4,651 | 4,450 | 3,909 | 17,829 | 4,720 | 4,978 | 4,939 | 4,441 | 19,078 | 4,925 | 5,098 | |||||||||||||||||||||||||||||
Less: Income from Continuing Operations attributable to Noncontrolling Interest | (361) | (384) | (357) | (368) | (1,470) | (394) | (387) | (356) | (348) | (1,485) | (354) | (380) | |||||||||||||||||||||||||||||
Less: Preferred Stock Dividends | (32) | (52) | (54) | (55) | (193) | (50) | (56) | (50) | (51) | (207) | (48) | (52) | |||||||||||||||||||||||||||||
Adjusted Standalone AT&T Income Attributable to Common Stock | $ | 4,426 | $ | 4,215 | $ | 4,039 | $ | 3,486 | $ | 16,166 | $ | 4,276 | $ | 4,535 | $ | 4,533 | $ | 4,042 | $ | 17,386 | $ | 4,523 | $ | 4,666 | |||||||||||||||||
Earnings from Continuing Operations per share of common stock:1 | |||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.62 | $ | 0.46 | $ | 0.39 | $ | (1.92) | $ | (0.45) | $ | 0.99 | $ | 0.77 | $ | 0.64 | $ | 0.67 | $ | 3.07 | $ | 0.66 | $ | 0.60 | |||||||||||||||||
Diluted | $ | 0.62 | $ | 0.46 | $ | 0.39 | $ | (1.92) | $ | (0.45) | $ | 0.97 | $ | 0.76 | $ | 0.63 | $ | 0.66 | $ | 3.02 | $ | 0.65 | $ | 0.59 | |||||||||||||||||
[J] | Continuing Operations Adjusted Diluted | $ | 0.68 | $ | 0.73 | $ | 0.66 | $ | 0.56 | $ | 2.63 | $ | 0.63 | $ | 0.65 | ||||||||||||||||||||||||||
[J] | Standalone AT&T Adjusted Diluted | $ | 0.61 | $ | 0.58 | $ | 0.56 | $ | 0.50 | $ | 2.25 | $ | 0.58 | $ | 0.64 | $ | 0.62 | $ | 0.56 | $ | 2.41 | $ | 0.63 | $ | 0.65 | ||||||||||||||||
Weighted Average Common Shares Outstanding | 7,187 | 7,145 | 7,147 | 7,150 | 7,157 | 7,161 | 7,168 | 7,171 | 7,172 | 7,168 | 7,184 | 7,169 | |||||||||||||||||||||||||||||
Weighted Average Common Shares Outstanding with Dilution under ASU 2020-06 | 7,455 | 7,463 | 7,465 | 7,480 | 7,466 | 7,482 | 7,484 | 7,506 | 7,541 | 7,503 | 7,555 | 7,611 | |||||||||||||||||||||||||||||
Weighted Average Common Shares Outstanding with Dilution under historical | 7,214 | 7,170 | 7,173 | 7,176 | 7,183 | 7,188 | 7,200 | 7,202 | 7,204 | 7,199 | 7,217 | 7,212 | |||||||||||||||||||||||||||||
1 Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period. |
EBITDA2 |
3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | |||||||||||||||||||||||||||||
Net Income from Continuing Operations | $ | 4,849 | $ | 3,699 | $ | 3,204 | $ | (13,274) | $ | (1,522) | $ | 7,586 | $ | 5,969 | $ | 5,019 | $ | 5,202 | $ | 23,776 | $ | 5,149 | $ | 4,751 | |||||||||||||||||
Additions: | |||||||||||||||||||||||||||||||||||||||||
Income Tax Expense (Benefit) | 1,298 | 1,043 | 755 | (1,928) | 1,168 | 2,009 | 1,151 | 1,296 | 939 | 5,395 | 1,440 | 1,509 | |||||||||||||||||||||||||||||
Interest Expense | 1,963 | 1,990 | 1,923 | 1,851 | 7,727 | 1,823 | 1,640 | 1,627 | 1,626 | 6,716 | 1,626 | 1,502 | |||||||||||||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | — | (10) | (29) | (50) | (89) | 6 | 18 | (183) | (444) | (603) | (521) | (504) | |||||||||||||||||||||||||||||
Other (Income) Expense - net | (827) | (1,161) | 211 | 2,865 | 1,088 | (4,230) | (1,206) | (1,522) | (2,429) | (9,387) | (2,157) | (2,302) | |||||||||||||||||||||||||||||
Depreciation and amortization | 5,705 | 5,655 | 5,610 | 5,553 | 22,523 | 4,466 | 4,429 | 4,457 | 4,500 | 17,852 | 4,462 | 4,450 | |||||||||||||||||||||||||||||
EBITDA | 12,988 | 11,216 | 11,674 | (4,983) | 30,895 | 11,660 | 12,001 | 10,694 | 9,394 | 43,749 | 9,999 | 9,406 | |||||||||||||||||||||||||||||
Non-GAAP Adjustments | (720) | 854 | (32) | 15,573 | 15,675 | 1 | (70) | 109 | 86 | 126 | 191 | 924 | |||||||||||||||||||||||||||||
Adjusted EBITDA | 12,268 | 12,070 | 11,642 | 10,590 | 46,570 | 11,661 | 11,931 | 10,803 | 9,480 | 43,875 | 10,190 | 10,330 | |||||||||||||||||||||||||||||
Less: Video | (1,387) | (1,212) | (1,127) | (710) | (4,436) | (1,065) | (1,364) | (418) | — | (2,847) | — | — | |||||||||||||||||||||||||||||
Less: Other dispositions (Held-for-sale) | (97) | (101) | (110) | (66) | (374) | (37) | (43) | (17) | — | (97) | — | — | |||||||||||||||||||||||||||||
Less: Intercompany eliminations | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Less: Reclassification of allocations for separated businesses | (76) | (86) | (76) | (84) | (322) | (15) | (19) | (16) | 4 | (46) | — | — | |||||||||||||||||||||||||||||
Add: DTV-related retained costs | (350) | (350) | (350) | (350) | (1,400) | (350) | (350) | (117) | — | (817) | — | — | |||||||||||||||||||||||||||||
Standalone AT&T Adjusted EBITDA | $ | 10,358 | $ | 10,321 | $ | 9,979 | $ | 9,380 | $ | 40,038 | $ | 10,194 | $ | 10,155 | $ | 10,235 | $ | 9,484 | $ | 40,068 | $ | 10,190 | $ | 10,330 | |||||||||||||||||
Adjusted EBITDA Growth Rate Y/Y | -4.9 | % | -1.2 | % | -7.2 | % | -10.5 | % | -5.8 | % | -12.6 | % | -13.4 | % | |||||||||||||||||||||||||||
Standalone AT&T Adjusted EBITDA Growth Rate Y/Y | -1.6 | % | -1.6 | % | 2.6 | % | 1.1 | % | 0.1 | % | 0.0 | % | 1.7 | % | |||||||||||||||||||||||||||
Adjusted EBITDA Margin | 34.7 | % | 35.0 | % | 32.9 | % | 28.0 | % | 32.6 | % | 32.5 | % | 33.4 | % | 34.5 | % | 30.5 | % | 32.7 | % | 34.3 | % | 34.8 | % | |||||||||||||||||
Standalone AT&T Adjusted EBITDA Margin | 37.5 | % | 38.0 | % | 35.6 | % | 30.8 | % | 35.3 | % | 35.2 | % | 35.0 | % | 35.1 | % | 30.5 | % | 33.9 | % | 34.3 | % | 34.8 | % | |||||||||||||||||
2 EBITDA is operating income before depreciation and amortization. It excludes depreciation and amortization, interest expense, other income (expense) - net and income taxes from net income. |
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Free Cash Flow ($B)3 |
3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities from Continuing Operations | $ | 9.6 | $ | 10.2 | $ | 9.3 | $ | 8.1 | $ | 37.2 | $ | 7.6 | $ | 7.7 | |||||||||||||||||||||||||||
Add: Distributions from DIRECTV classified as investing activities | — | — | — | 1.3 | 1.3 | 1.3 | 0.3 | ||||||||||||||||||||||||||||||||||
Less: Capital expenditures | (3.9) | (3.7) | (4.5) | (3.5) | (15.6) | (4.6) | (4.9) | ||||||||||||||||||||||||||||||||||
Less: Cash paid vendor financing | (1.7) | (1.3) | (1.0) | (0.6) | (4.6) | (1.6) | (1.8) | ||||||||||||||||||||||||||||||||||
Free Cash Flow from Continuing Operations | 4.0 | 5.2 | 3.8 | 5.3 | 18.3 | 2.8 | 1.4 | ||||||||||||||||||||||||||||||||||
[E] | Add: Estimated equity in net income from DIRECTV investment | — | — | 0.7 | — | 0.7 | — | — | |||||||||||||||||||||||||||||||||
Standalone AT&T Free Cash Flow | $ | 4.0 | $ | 5.2 | $ | 4.5 | $ | 5.3 | $ | 19.0 | $ | 2.8 | $ | 1.4 | |||||||||||||||||||||||||||
3 May not foot due to rounding. Historical presentation may differ due insignificant reclasses between continuing and discontinued operations. |
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NOTES | |||||||||||||||||||||||||||||||||||||||||
[A] | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | ||||||||||||||||||||||||||||||||||||||||
[B] | Other dispositions include the held-for-sale businesses, Crunchyroll, Government Solutions and operations in Puerto Rico that do not meet the requirements for presentation in discontinued operations. | ||||||||||||||||||||||||||||||||||||||||
[C] | After the DIRECTV transaction, we expect to retain incurred operations and support costs in the range of ~$500M per quarter and depreciation of network infrastructure that provides both U-verse video and broadband services to customers of ~$150M per quarter, of which approximately 60% will be received from DIRECTV through transition service agreements and commercial arrangements. These estimated net retained costs have been applied to prior periods for comparability. | ||||||||||||||||||||||||||||||||||||||||
[D] | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | ||||||||||||||||||||||||||||||||||||||||
[E] | Estimated equity in net income of affiliates from DIRECTV. Calculated at 70% of Video EBITDA, which excludes the noncash depreciation and amortization of fair value accretion expected to result from DIRECTV’s revaluation of assets and purchase price allocation. | ||||||||||||||||||||||||||||||||||||||||
[F] | Reflects the use of proceeds to pay down approximately $39.0 billion of borrowings and the resulting reduction to interest expense. The estimated impact of interest expense reduction was determined using the weighted-average interest rate of AT&T’s long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, of 3.8%. This adjustment is required for forma financial information prepared in accordance with Article 11 of Regulation S-X. | ||||||||||||||||||||||||||||||||||||||||
[G] | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | ||||||||||||||||||||||||||||||||||||||||
[H] | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | ||||||||||||||||||||||||||||||||||||||||
[I] | Non-GAAP Adjustments: | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 2020 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | ||||||||||||||||||||||||||||
Transaction and other costs | $ | 23 | $ | 35 | $ | 29 | $ | 25 | $ | 112 | $ | 35 | $ | — | $ | 8 | $ | (3) | $ | 40 | $ | 98 | $ | 185 | |||||||||||||||||
Employee separation costs and benefit-related (gain) loss | 129 | 748 | (61) | (37) | 779 | (34) | (70) | (3) | (20) | (127) | 93 | 108 | |||||||||||||||||||||||||||||
Asset impairments and abandonments and restructuring | 28 | 71 | — | 15,585 | 15,684 | — | — | 104 | 109 | 213 | — | 631 | |||||||||||||||||||||||||||||
Gain on spectrum transaction | (900) | — | — | — | (900) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjustments to Operations and Support Expenses/ EBITDA | (720) | 854 | (32) | 15,573 | 15,675 | 1 | (70) | 109 | 86 | 126 | 191 | 924 | |||||||||||||||||||||||||||||
Amortization of intangible assets | 913 | 878 | 839 | 797 | 3,427 | 85 | 28 | 28 | 28 | 169 | 27 | 17 | |||||||||||||||||||||||||||||
Impairments | — | — | — | 14 | 14 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjustments to Operating Income | 193 | 1,732 | 807 | 16,384 | 19,116 | 86 | (42) | 137 | 114 | 295 | 218 | 941 | |||||||||||||||||||||||||||||
Other income (expense) net | 293 | (26) | 1,225 | 3,962 | 5,454 | (2,968) | (16) | 18 | (769) | (3,735) | (545) | (635) | |||||||||||||||||||||||||||||
Tax impact of adjustments and discrete items | (103) | (376) | (387) | (2,861) | (3,727) | 606 | (249) | (2) | (109) | 246 | 103 | 41 | |||||||||||||||||||||||||||||
Adjustments to Net Income | $ | 383 | $ | 1,330 | $ | 1,645 | $ | 17,485 | $ | 20,843 | $ | (2,276) | $ | (307) | $ | 153 | $ | (764) | $ | (3,194) | $ | (224) | $ | 347 | |||||||||||||||||
[J] | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II 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 II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. |