EX-99.2 3 ex99_2.htm AT&T INC. 3RD QUARTER 2018 DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES

Discussion and Reconciliation of Non-GAAP Measures

 

Supplemental Operational Measures

We provide a supplemental discussion of our business solutions operations that is calculated by combining our Mobility and Business Wireline operating units, and then adjusting to remove non-business operations. The following table presents a reconciliation of our supplemental Business Solutions results.

Supplemental Operational Measure

 

 

Three Months Ended

 

 

September 30, 2018

 

 

September 30, 2017

 

 

Mobility

 

Business Wireline

 

Adjustments1

 

Business Solutions

 

 

Mobility

 

Business
Wireline

 

Adjustments1

 

Business Solutions

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Wireless service

$

13,989

$

-

$

(12,112)

$

1,877

 

$

14,475

$

-

$

(12,452)

$

2,023

  Strategic services

 

-

 

3,059

 

-

 

3,059

 

 

-

 

3,018

 

-

 

3,018

  Legacy voice and data services

 

-

 

2,615

 

-

 

2,615

 

 

-

 

3,343

 

-

 

3,343

  Other services and equipment

 

-

 

1,029

 

-

 

1,029

 

 

-

 

917

 

-

 

917

  Wireless equipment

 

3,949

 

-

 

(3,359)

 

590

 

 

2,895

 

-

 

(2,555)

 

340

Total Operating Revenues

 

17,938

 

6,703

 

(15,471)

 

9,170

 

 

17,370

 

7,278

 

(15,007)

 

9,641

  Operations and support

 

10,255

 

4,030

 

(8,687)

 

5,598

 

 

10,029

 

4,635

 

(8,568)

 

6,096

EBITDA

 

7,683

 

2,673

 

(6,784)

 

3,572

 

 

7,341

 

2,643

 

(6,439)

 

3,545

  Depreciation and amortization

 

2,079

 

1,197

 

(1,777)

 

1,499

 

 

2,008

 

1,189

 

(1,731)

 

1,466

Total Operating Expenses

 

12,334

 

5,227

 

(10,464)

 

7,097

 

 

12,037

 

5,824

 

(10,299)

 

7,562

Operating Income

$

5,604

$

1,476

$

(5,007)

$

2,073

 

$

5,333

$

1,454

$

(4,708)

$

2,079

Equity in net Income of Affiliates

 

(1)

 

(1)

 

1

 

(1)

 

 

-

 

1

 

(1)

 

-

Contribution

 

5,603

 

1,475

 

(5,006)

 

2,072

 

 

5,333

 

1,455

 

(4,709)

 

2,079

1 Non-business wireless reported in the Communication segment under the Mobility business unit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Operational Measure

 

 

Nine Months Ended

 

 

September 30, 2018

 

 

September 30, 2017

 

 

Mobility

 

Business Wireline

 

Adjustments1

 

Business Solutions

 

 

Mobility

 

Business
Wireline

 

Adjustments1

 

Business Solutions

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Wireless service

$

41,074

$

-

$

(35,577)

$

5,497

 

$

43,414

$

-

$

(37,384)

$

6,030

  Strategic services

 

-

 

9,168

 

-

 

9,168

 

 

-

 

8,880

 

-

 

8,880

  Legacy voice and data services

 

-

 

8,176

 

-

 

8,176

 

 

-

 

10,314

 

-

 

10,314

  Other services and equipment

 

-

 

2,756

 

-

 

2,756

 

 

-

 

2,717

 

-

 

2,717

  Wireless equipment

 

11,501

 

-

 

(9,749)

 

1,752

 

 

8,508

 

-

 

(7,520)

 

988

Total Operating Revenues

 

52,575

 

20,100

 

(45,326)

 

27,349

 

 

51,922

 

21,911

 

(44,904)

 

28,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Operations and support

 

30,020

 

12,084

 

(25,296)

 

16,808

 

 

30,005

 

13,906

 

(25,764)

 

18,147

EBITDA

 

22,555

 

8,016

 

(20,030)

 

10,541

 

 

21,917

 

8,005

 

(19,140)

 

10,782

  Depreciation and amortization

 

6,287

 

3,547

 

(5,390)

 

4,444

 

 

5,988

 

3,583

 

(5,162)

 

4,409

Total Operating Expenses

 

36,307

 

15,631

 

(30,686)

 

21,252

 

 

35,993

 

17,489

 

(30,926)

 

22,556

Operating Income

$

16,268

$

4,469

$

(14,640)

$

6,097

 

$

15,929

$

4,422

$

(13,978)

$

6,373

Equity in net Income of Affiliates

 

(1)

 

(1)

 

1

 

(1)

 

 

-

 

-

 

-

 

-

Contribution

 

16,267

 

4,468

 

(14,639)

 

6,096

 

 

15,929

 

4,422

 

(13,978)

 

6,373

1 Non-business wireless reported in the Communication segment under the Mobility business unit.

 

 

1