AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	First Quarter				Percent
	2023		2022		Change
Operating Revenues
Service	$	24,617	$	23,999	2.6	%
Equipment	5,522		5,713		(3.3)	%
Total Operating Revenues	30,139		29,712		1.4	%
Operating Expenses
Cost of revenues
Equipment	5,658		6,036		(6.3)	%
Other cost of revenues (exclusive of depreciation and    amortization shown separately below)	6,673		6,699		(0.4)	%
Selling, general and administrative	7,175		6,978		2.8	%
Depreciation and amortization	4,631		4,462		3.8	%
Total Operating Expenses	24,137		24,175		(0.2)	%
Operating Income	6,002		5,537		8.4	%
Interest Expense	1,708		1,626		5.0	%
Equity in Net Income of Affiliates	538		521		3.3	%
Other Income (Expense) — Net	935		2,157		(56.7)	%
Income from Continuing Operations Before Income Taxes	5,767		6,589		(12.5)	%
Income tax expense on continuing operations	1,314		1,440		(8.8)	%
Income From Continuing Operations	4,453		5,149		(13.5)	%
Income from discontinued operations, net of tax	—		15		—	%
Net Income	4,453		5,164		(13.8)	%
Less: Net Income Attributable to Noncontrolling Interest	(225)		(354)		36.4	%
Net Income Attributable to AT&T	$	4,228	$	4,810	(12.1)	%
Less: Preferred Stock Dividends	(52)		(48)		(8.3)	%
Net Income Attributable to Common Stock	$	4,176	$	4,762	(12.3)	%
Basic Earnings Per Share Attributable to Common Stock
From continuing operations	$	0.58	$	0.66	(12.1)	%
From discontinued operations	$	—	$	—	—	%
	$	0.58	$	0.66	(12.1)	%
Weighted Average Common Shares Outstanding (000,000)	7,168		7,184		(0.2)	%
Diluted Earnings Per Share Attributable to Common Stock
From continuing operations	$	0.57	$	0.65	(12.3)	%
From discontinued operations	$	—	$	—	—	%
	$	0.57	$	0.65	(12.3)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)	7,474		7,556		(1.1)	%

1

AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Unaudited	Mar. 31,		Dec. 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 – 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	—		—
Common stock	7,621		7,621
Additional paid-in capital	120,774		123,610
Retained (deficit) earnings	(15,187)		(19,415)
Treasury stock	(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

2

AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	First Quarter
	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

3

AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited	First Quarter						Percent
	2023			2022			Change
Capital expenditures
Purchase of property and equipment	$	4,291		$	4,532		(5.3)	%
Interest during construction - capital expenditures	44			36			22.2	%
Total Capital Expenditures	$	4,335		$	4,568		(5.1)	%
Acquisitions, net of cash acquired
Business acquisitions	$	—		$	—		—	%
Spectrum acquisitions	63			8,956			(99.3)	%
Interest during construction - spectrum	228			288			(20.8)	%
Total Acquisitions	$	291		$	9,244		(96.9)	%
Cash paid for interest - continuing operations	$	1,971		$	2,154		(8.5)	%
Cash paid for income taxes, net of refunds - continuing operations	$	10		$	72		(86.1)	%
Dividends Declared per Common Share	$	0.2775		$	0.2775		—	%
End of Period Common Shares Outstanding (000,000)	7,149			7,159			(0.1)	%
Debt Ratio	55.9		%	48.5		%	740	BP
Total Employees	157,790			172,580			(8.6)	%

4

COMMUNICATIONS SEGMENT

The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline, and Consumer Wireline.

Results have been recast to remove prior service credits from our historical reporting.

Segment Results
Dollars in millions
Unaudited	First Quarter				Percent
	2023		2022		Change
Segment Operating Revenues
Mobility	$	20,582	$	20,075	2.5	%
Business Wireline	5,331		5,640		(5.5)	%
Consumer Wireline	3,239		3,161		2.5	%
Total Segment Operating Revenues	29,152		28,876		1.0	%
Operating Income
Mobility	6,271		5,689		10.2	%
Business Wireline	378		639		(40.8)	%
Consumer Wireline	94		159		(40.9)	%
Total Operating Income	$	6,743	$	6,487	3.9	%

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,		Percent
	2023	2022	Change
Broadband Connections
Broadband	15,061	15,130	(0.5)	%
DSL	284	403	(29.5)	%
Total Broadband Connections	15,345	15,533	(1.2)	%
Voice Connections
Retail Consumer Switched Access Lines	4,938	5,956	(17.1)	%
U-verse Consumer VoIP Connections	2,835	3,227	(12.1)	%
Total Retail Voice Connections	7,773	9,183	(15.4)	%
	First Quarter		Percent
	2023	2022	Change
Broadband Net Additions
Broadband	(14)	56	—	%
DSL	(27)	(27)	—	%
Total Broadband Net Additions	(41)	29	—	%

5

Mobility

Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
Unaudited	First Quarter						Percent
	2023			2022			Change
Operating Revenues
Service	$	15,483		$	14,724		5.2	%
Equipment	5,099			5,351			(4.7)	%
Total Operating Revenues	20,582			20,075			2.5	%
Operating Expenses
Operations and support	12,213			12,327			(0.9)	%
Depreciation and amortization	2,098			2,059			1.9	%
Total Operating Expenses	14,311			14,386			(0.5)	%
Operating Income	$	6,271		$	5,689		10.2	%
Operating Income Margin	30.5		%	28.3		%	220	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,						Percent
	2023			2022			Change
Mobility Subscribers
Postpaid	85,421			81,639			4.6	%
Postpaid phone	70,049			67,518			3.7	%
Prepaid	19,200			18,859			1.8	%
Reseller	6,192			5,383			15.0	%
Connected Devices	112,026			90,735			23.5	%
Total Mobility Subscribers1	222,839			196,616			13.3	%
1Wireless subscribers at March 31, 2023 includes a reduction of 295 subscribers and connections (206 postpaid, including 74 phone, 132 prepaid, and 89 connected devices) resulting from our 3G network shutdown.
	First Quarter						Percent
	2023			2022			Change
Mobility Net Additions
Postpaid Phone Net Additions	424			691			(38.6)	%
Total Phone Net Additions	464			804			(42.3)	%
Postpaid	542			965			(43.8)	%
Prepaid	40			116			(65.5)	%
Reseller	108			(17)			—	%
Connected Devices	4,457			4,468			(0.2)	%
Total Mobility Net Additions	5,147			5,532			(7.0)	%
Postpaid Churn	0.99		%	0.94		%	5 BP
Postpaid Phone-Only Churn	0.81		%	0.79		%	2 BP

6

Business Wireline

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.

Business Wireline Results
Dollars in millions
Unaudited	First Quarter						Percent
	2023			2022			Change
Operating Revenues
Service	$	5,200		$	5,478		(5.1)	%
Equipment	131			162			(19.1)	%
Total Operating Revenues	5,331			5,640			(5.5)	%
Operating Expenses
Operations and support	3,623			3,702			(2.1)	%
Depreciation and amortization	1,330			1,299			2.4	%
Total Operating Expenses	4,953			5,001			(1.0)	%
Operating Income	$	378		$	639		(40.8)	%
Operating Income Margin	7.1		%	11.3		%	(420)	BP

7

Consumer Wireline

Consumer Wireline provides broadband services, including fiber connections that provide our multi-gig services to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services.

Consumer Wireline Results
Dollars in millions
Unaudited	First Quarter						Percent
	2023			2022			Change
Operating Revenues
Broadband	$	2,527		$	2,355		7.3	%
Legacy voice and data services	396			460			(13.9)	%
Other service and equipment	316			346			(8.7)	%
Total Operating Revenues	3,239			3,161			2.5	%
Operating Expenses
Operations and support	2,284			2,236			2.1	%
Depreciation and amortization	861			766			12.4	%
Total Operating Expenses	3,145			3,002			4.8	%
Operating Income	$	94		$	159		(40.9)	%
Operating Income Margin	2.9		%	5.0		%	(210)	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,						Percent
	2023			2022			Change
Broadband Connections
Total Broadband and DSL Connections	13,949			14,148			(1.4)	%
Broadband	13,730			13,850			(0.9)	%
Fiber Broadband Connections	7,487			6,281			19.2	%
Voice Connections
Retail Consumer Switched Access Lines	1,921			2,324			(17.3)	%
U-verse Consumer VoIP Connections	2,212			2,628			(15.8)	%
Total Retail Consumer Voice Connections	4,133			4,952			(16.5)	%
	First Quarter						Percent
	2023			2022			Change
Broadband Net Additions
Total Broadband and DSL Net Additions	(42)			(12)			—	%
Broadband	(23)			5			—	%
Fiber Broadband Net Additions	272			289			(5.9)	%

8

LATIN AMERICA SEGMENT

The segment provides wireless services and equipment to customers in Mexico.

Segment Results
Dollars in millions
Unaudited	First Quarter						Percent
	2023			2022			Change
Operating Revenues
Wireless service	$	591		$	490		20.6	%
Wireless equipment	292			200			46.0	%
Total Segment Operating Revenues	883			690			28.0	%
Operating Expenses
Operations and support	738			631			17.0	%
Depreciation and amortization	175			161			8.7	%
Total Segment Operating Expenses	913			792			15.3	%
Operating Income (Loss)	$	(30)		$	(102)		70.6	%
Operating Income Margin	(3.4)		%	(14.8)		%	1,140	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,						Percent
	2023			2022			Change
Mexico Wireless Subscribers
Postpaid	4,973			4,810			3.4	%
Prepaid	16,146			15,235			6.0	%
Reseller	494			458			7.9	%
Total Mexico Wireless Subscribers	21,613			20,503			5.4	%
	First Quarter						Percent
	2023			2022			Change
Mexico Wireless Net Additions
Postpaid	49			3			—	%
Prepaid	(58)			178			—	%
Reseller	19			(40)			—	%
Total Mexico Wireless Net Additions	10			141			(92.9)	%

9

SUPPLEMENTAL SEGMENT RECONCILIATION

Three Months Ended
Dollars in millions
Unaudited
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		6,713
Corporate and Other
Corporate:
DTV-related retained costs	—		169		(169)		144		(313)
Parent administration support	(9)		374		(383)		1		(384)
Securitization fees	19		121		(102)		—		(102)
Value portfolio	94		28		66		5		61
Total Corporate	104		692		(588)		150		(738)
Certain significant items	—		(44)		44		17		27
Total Corporate and Other	104		648		(544)		167		(711)
AT&T Inc.	$	30,139	$	19,506	$	10,633	$	4,631	$	6,002
March 31, 2022
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	20,075	$	12,327	$	7,748	$	2,059	$	5,689
Business Wireline	5,640		3,702		1,938		1,299		639
Consumer Wireline	3,161		2,236		925		766		159
Total Communications	28,876		18,265		10,611		4,124		6,487
Latin America - Mexico	690		631		59		161		(102)
Segment Total	29,566		18,896		10,670		4,285		6,385
Corporate and Other
Corporate:
DTV-related retained costs	8		160		(152)		134		(286)
Parent administration support	(12)		347		(359)		6		(365)
Securitization fees	16		82		(66)		—		(66)
Value portfolio	134		37		97		10		87
Total Corporate	146		626		(480)		150		(630)
Certain significant items	—		191		(191)		27		(218)
Total Corporate and Other	146		817		(671)		177		(848)
AT&T Inc.	$	29,712	$	19,713	$	9,999	$	4,462	$	5,537

10