EX-99.1 2 t-3q2023801exhibit991.htm EX-99.1 AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA Document

AT&T Inc.   
Financial Data   
Consolidated Statements of Income
Dollars in millions except per share amounts
UnauditedThird QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Operating Revenues
Service$25,112 $24,731 1.5 %$74,579 $72,998 2.2 %
Equipment5,238 5,312 (1.4)%15,827 16,400 (3.5)%
Total Operating Revenues30,350 30,043 1.0 %90,406 89,398 1.1 %
Operating Expenses
Cost of revenues
Equipment5,219 5,440 (4.1)%15,933 17,010 (6.3)%
Other cost of revenues (exclusive of depreciation
   and amortization shown separately below)
6,835 6,761 1.1 %20,279 20,267 0.1 %
Selling, general and administrative7,205 7,202 — %21,389 21,445 (0.3)%
Asset impairments and abandonments
    and restructuring
604 114 — %604 745 (18.9)%
Depreciation and amortization4,705 4,514 4.2 %14,011 13,426 4.4 %
Total Operating Expenses24,568 24,031 2.2 %72,216 72,893 (0.9)%
Operating Income5,782 6,012 (3.8)%18,190 16,505 10.2 %
Interest Expense1,662 1,420 17.0 %4,978 4,548 9.5 %
Equity in Net Income of Affiliates420 392 7.1 %1,338 1,417 (5.6)%
Other Income (Expense) — Net440 2,270 (80.6)%2,362 6,729 (64.9)%
Income from Continuing Operations
 Before Income Taxes
4,980 7,254 (31.3)%16,912 20,103 (15.9)%
Income tax expense on continuing operations1,154 908 27.1 %3,871 3,857 0.4 %
Income From Continuing Operations3,826 6,346 (39.7)%13,041 16,246 (19.7)%
Income (loss) from discontinued operations, net of tax 53 — % (146)— %
Net Income3,826 6,399 (40.2)%13,041 16,100 (19.0)%
Less: Net Income Attributable to Noncontrolling
Interest
(331)(373)11.3 %(829)(1,107)25.1 %
Net Income Attributable to AT&T$3,495 $6,026 (42.0)%$12,212 $14,993 (18.5)%
Less: Preferred Stock Dividends(51)(49)(4.1)%(155)(149)(4.0)%
Net Income Attributable to Common Stock$3,444 $5,977 (42.4)%$12,057 $14,844 (18.8)%
Basic Earnings (Loss) Per Share Attributable to
Common Stock
From continuing operations$0.48 $0.82 (41.5)%$1.67 $2.08 (19.7)%
From discontinued operations$ $0.01 — %$ $(0.02)— %
$0.48 $0.83 (42.2)%$1.67 $2.06 (18.9)%
Weighted Average Common Shares
Outstanding (000,000)
7,185 7,153 0.4 %7,178 7,169 0.1 %
Diluted Earnings (Loss) Per Share Attributable to
Common Stock
From continuing operations$0.48 $0.79 (39.2)%$1.67 $2.03 (17.7)%
From discontinued operations$ $0.01 — %$ $(0.02)— %
$0.48 $0.80 (40.0)%$1.67 $2.01 (16.9)%
Weighted Average Common Shares
Outstanding with Dilution (000,000)
7,185 7,647 (6.0)%7,280 7,605 (4.3)%
1


AT&T Inc.  
Financial Data  
Consolidated Balance Sheets
Dollars in millions
UnauditedSep. 30,Dec. 31,
20232022
Assets
Current Assets
Cash and cash equivalents$7,540 $3,701 
Accounts receivable – net of related allowances for credit loss of $484 and $5888,962 11,466 
Inventories2,520 3,123 
Prepaid and other current assets16,598 14,818 
Total current assets35,620 33,108 
Property, Plant and Equipment – Net128,496 127,445 
Goodwill – Net67,854 67,895 
Licenses – Net127,113 124,092 
Other Intangible Assets – Net5,332 5,354 
Investments in and Advances to Equity Affiliates1,847 3,533 
Operating Lease Right-Of-Use Assets21,001 21,814 
Other Assets19,435 19,612 
Total Assets$406,698 $402,853 
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year$11,302 $7,467 
Note payable to DIRECTV 130 
Accounts payable and accrued liabilities34,659 42,644 
Advanced billings and customer deposits3,703 3,918 
Dividends payable2,020 2,014 
Total current liabilities51,684 56,173 
Long-Term Debt126,701 128,423 
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes58,671 57,032 
Postemployment benefit obligation6,494 7,260 
Operating lease liabilities17,730 18,659 
Other noncurrent liabilities25,591 28,849 
Total deferred credits and other noncurrent liabilities108,486 111,800 
Redeemable Noncontrolling Interest1,972 — 
Stockholders’ Equity
Preferred stock — 
Common stock7,621 7,621 
Additional paid-in capital116,890 123,610 
Retained (deficit) earnings(7,203)(19,415)
Treasury stock(16,150)(17,082)
Accumulated other comprehensive income2,545 2,766 
Noncontrolling interest14,152 8,957 
Total stockholders’ equity117,855 106,457 
Total Liabilities and Stockholders’ Equity$406,698 $402,853 
2


AT&T Inc.  
Financial Data  
Consolidated Statements of Cash Flows
Dollars in millions
UnauditedNine-Month Period
20232022
Operating Activities
Income from continuing operations$13,041 $16,246 
Adjustments to reconcile income from continuing operations to net cash provided by
    operating activities from continuing operations:
Depreciation and amortization14,011 13,426 
Provision for uncollectible accounts1,409 1,323 
Deferred income tax expense3,163 2,947 
Net (gain) loss on investments, net of impairments335 412 
Pension and postretirement benefit expense (credit)(1,966)(2,529)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net(145)(3,838)
Asset impairments and abandonments and restructuring604 745 
Changes in operating assets and liabilities:
Receivables1,173 1,021 
Other current assets57 (799)
Accounts payable and other accrued liabilities(5,062)(3,261)
Equipment installment receivables and related sales(56)906 
Deferred customer contract acquisition and fulfillment costs47 (756)
Postretirement claims and contributions(715)(443)
Other - net1,040 64 
Total adjustments13,895 9,218 
Net Cash Provided by Operating Activities from Continuing Operations26,936 25,464 
Investing Activities
Capital expenditures(13,252)(15,397)
Acquisitions, net of cash acquired(923)(9,959)
Dispositions66 49 
Distributions from DIRECTV in excess of cumulative equity in earnings1,447 2,205 
(Purchases), sales and settlements of securities and investments - net(1,043)93 
Other - net(81)(2)
Net Cash Used in Investing Activities from Continuing Operations(13,786)(23,011)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less(914)84 
Issuance of other short-term borrowings5,406 3,955 
Repayment of other short-term borrowings(979)(16,861)
Issuance of long-term debt9,633 479 
Repayment of long-term debt(11,889)(24,412)
Repayment of note payable to DIRECTV(130)(1,070)
Payment of vendor financing(4,736)(4,237)
Purchase of treasury stock(190)(875)
Issuance of treasury stock3 28 
Issuance of preferred interests in subsidiary7,151 — 
Redemption of preferred interests in subsidiary(5,333)— 
Dividends paid(6,116)(7,845)
Other - net(1,190)(3,649)
Net Cash Used in Financing Activities from Continuing Operations(9,284)(54,403)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations3,866 (51,950)
Cash flows from Discontinued Operations:
Cash (used in) provided by operating activities (3,754)
Cash provided by (used in) investing activities 1,029 
Cash provided by (used in) financing activities 35,853 
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations 33,128 
Net increase (decrease) in cash and cash equivalents and restricted cash$3,866 $(18,822)
Cash and cash equivalents and restricted cash beginning of year3,793 21,316 
Cash and Cash Equivalents and Restricted Cash End of Period$7,659 $2,494 
3


AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
UnauditedThird QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Capital expenditures
Purchase of property and equipment$4,601 $5,874 (21.7)%$13,116 $15,273 (14.1)%
Interest during construction - capital expenditures46 47 (2.1)%136 124 9.7 %
Total Capital Expenditures$4,647 $5,921 (21.5)%$13,252 $15,397 (13.9)%
Acquisitions, net of cash acquired
Business acquisitions$ $— — %$ $— — %
Spectrum acquisitions241 111 — %309 9,076 (96.6)%
Interest during construction - spectrum167 278 (39.9)%614 883 (30.5)%
Total Acquisitions$408 $389 4.9 %$923 $9,959 (90.7)%
Cash paid for interest - continuing operations$2,099 $1,953 7.5 %$5,703 $5,981 (4.6)%
Cash paid for income taxes, net of refunds - continuing operations$423 $62 — %$758 $400 89.5 %
Dividends Declared per Common Share$0.2775 $0.2775 — %$0.8325 $0.8325 — %
End of Period Common Shares Outstanding (000,000)7,150 7,126 0.3 %
Debt Ratio53.5 %48.8 %470  BP
Total Employees152,740 169,880 (10.1)%
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
UnauditedThird QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Segment Operating Revenues
Mobility$20,692 $20,278 2.0 %$61,589 $60,279 2.2 %
Business Wireline5,221 5,668 (7.9)%15,831 16,903 (6.3)%
Consumer Wireline3,331 3,185 4.6 %9,821 9,520 3.2 %
Total Segment Operating Revenues29,244 29,131 0.4 %87,241 86,702 0.6 %
Segment Operating Income
Mobility6,763 6,226 8.6 %19,647 17,963 9.4 %
Business Wireline350 621 (43.6)%1,124 1,750 (35.8)%
Consumer Wireline160 142 12.7 %422 446 (5.4)%
Total Segment Operating Income$7,273 $6,989 4.1 %$21,193 $20,159 5.1 %


Supplementary Operating Data
Subscribers and connections in thousands
UnauditedSeptember 30,Percent
20232022Change
Broadband Connections
Broadband15,065 15,112 (0.3)%
DSL231 340 (32.1)%
Total Broadband Connections15,296 15,452 (1.0)%
Voice Connections
Retail Consumer Switched Access Lines4,421 5,466 (19.1)%
Consumer VoIP Connections
2,649 3,022 (12.3)%
Total Retail Consumer Voice Connections7,070 8,488 (16.7)%
Third QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Broadband Net Additions
Broadband20 (24)— %(10)38 — %
DSL(28)(33)15.2 %(80)(90)11.1 %
Total Broadband Net Additions(8)(57)86.0 %(90)(52)(73.1)%
5


Mobility

Mobility provides nationwide wireless service and equipment.
Mobility Results
Dollars in millions
UnauditedThird QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Operating Revenues
Service$15,908 $15,337 3.7 %$47,136 $45,065 4.6 %
Equipment4,784 4,941 (3.2)%14,453 15,214 (5.0)%
Total Operating Revenues20,692 20,278 2.0 %61,589 60,279 2.2 %
Operating Expenses
Operations and support11,795 12,010 (1.8)%35,587 36,198 (1.7)%
Depreciation and amortization2,134 2,042 4.5 %6,355 6,118 3.9 %
Total Operating Expenses13,929 14,052 (0.9)%41,942 42,316 (0.9)%
Operating Income$6,763 $6,226 8.6 %$19,647 $17,963 9.4 %
Operating Income Margin32.7 %30.7 %200  BP31.9 %29.8 %210  BP
Supplementary Operating Data
Subscribers and connections in thousands
UnauditedSeptember 30,Percent
20232022Change
Mobility Subscribers
Postpaid86,365 83,614 3.3 %
Postpaid phone70,757 68,969 2.6 %
Prepaid19,391 19,215 0.9 %
Reseller7,101 5,854 21.3 %
Connected Devices122,728 101,995 20.3 %
Total Mobility Subscribers1
235,585 210,678 11.8 %
1Wireless subscribers at September 30, 2023 includes an increase of 295 subscribers and connections (206 postpaid, including 74 phone, and 89 connected devices) resulting from our 3G network shutdown.
Third QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Mobility Net Additions
Postpaid Phone Net Additions468 708 (33.9)%1,218 2,212 (44.9)%
Total Phone Net Additions494 816 (39.5)%1,407 2,629 (46.5)%
Postpaid550 964 (42.9)%1,556 2,987 (47.9)%
Prepaid56 141 (60.3)%263 488 (46.1)%
Reseller401 308 30.2 %941 312 — %
Connected Devices5,547 5,716 (3.0)%15,133 15,476 (2.2)%
Total Mobility Net Additions6,554 7,129 (8.1)%17,893 19,263 (7.1)%
Postpaid Churn0.95 %1.01 %(6)BP0.97 %0.96 %1 BP
Postpaid Phone-Only Churn0.79 %0.84 %(5)BP0.80 %0.79 %1 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
UnauditedThird QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Operating Revenues
Service$5,087 $5,524 (7.9)%$15,401 $16,418 (6.2)%
Equipment134 144 (6.9)%430 485 (11.3)%
Total Operating Revenues5,221 5,668 (7.9)%15,831 16,903 (6.3)%
Operating Expenses    
Operations and support3,526 3,705 (4.8)%10,699 11,199 (4.5)%
Depreciation and amortization1,345 1,342 0.2 %4,008 3,954 1.4 %
Total Operating Expenses4,871 5,047 (3.5)%14,707 15,153 (2.9)%
Operating Income$350 $621 (43.6)%$1,124 $1,750 (35.8)%
Operating Income Margin6.7 %11.0 %(430) BP7.1 %10.4 %(330) 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
UnauditedThird QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Operating Revenues
Broadband$2,667 $2,429 9.8 %$7,755 $7,177 8.1 %
Legacy voice and data services368 427 (13.8)%1,147 1,332 (13.9)%
Other service and equipment296 329 (10.0)%919 1,011 (9.1)%
Total Operating Revenues3,331 3,185 4.6 %9,821 9,520 3.2 %
Operating Expenses
Operations and support2,300 2,243 2.5 %6,810 6,723 1.3 %
Depreciation and amortization871 800 8.9 %2,589 2,351 10.1 %
Total Operating Expenses3,171 3,043 4.2 %9,399 9,074 3.6 %
Operating Income$160 $142 12.7 %$422 $446 (5.4)%
Operating Income Margin4.8 %4.5 %30  BP4.3 %4.7 %(40) BP
    
Supplementary Operating Data
Subscribers and connections in thousands
UnauditedSeptember 30,Percent
20232022Change
Broadband Connections
Total Broadband and DSL Connections13,887 14,055 (1.2)%
Broadband13,710 13,796 (0.6)%
Fiber Broadband Connections8,034 6,935 15.8 %
Voice Connections
Retail Consumer Switched Access Lines1,737 2,123 (18.2)%
Consumer VoIP Connections2,035 2,409 (15.5)%
Total Retail Consumer Voice Connections3,772 4,532 (16.8)%
Third QuarterPercentNine-Month PeriodPercent
20232022Change20232022Change
Broadband Net Additions
Total Broadband and DSL Net Additions(8)(50)84.0 %(104)(105)1.0 %
Broadband Net Additions
15 (29)— %(43)(49)12.2 %
Fiber Broadband Net Additions296 338 (12.4)%819 943 (13.1)%
8


LATIN AMERICA SEGMENT

The segment provides wireless services and equipment to customers in Mexico.
Segment Results
Dollars in millions  
UnauditedThird QuarterPercentNine-Month PeriodPercent
 20232022Change20232022Change
Operating Revenues    
Wireless service$672 $559 20.2 %$1,898 $1,583 19.9 %
Wireless equipment320 226 41.6 %944 700 34.9 %
Total Segment Operating Revenues992 785 26.4 %2,842 2,283 24.5 %
Operating Expenses
Operations and support837 684 22.4 %2,396 2,036 17.7 %
Depreciation and amortization184 164 12.2 %544 494 10.1 %
Total Segment Operating Expenses1,021 848 20.4 %2,940 2,530 16.2 %
Operating Income (Loss)$(29)$(63)54.0 %$(98)$(247)60.3 %
Operating Income Margin(2.9)%(8.0)%510  BP(3.4)%(10.8)%740  BP
Supplementary Operating Data
Subscribers and connections in thousands  
UnauditedSeptember 30,Percent
 20232022Change
Mexico Wireless Subscribers
Postpaid5,085 4,854 4.8 %
Prepaid16,213 15,689 3.3 %
Reseller456 455 0.2 %
Total Mexico Wireless Subscribers21,754 20,998 3.6 %
 Third QuarterPercentNine-Month PeriodPercent
 20232022Change20232022Change
Mexico Wireless Net Additions
Postpaid55 19 — %160 47 — %
Prepaid17 267 (93.6)%9 632 (98.6)%
Reseller(7)12 — %(18)(43)58.1 %
Total Mexico Wireless Net Additions65 298 (78.2)%151 636 (76.3)%

9


SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended
Dollars in millions
Unaudited
September 30, 2023
RevenuesOperations
and Support
Expenses
EBITDADepreciation
and
Amortization
Operating
Income (Loss)
Communications
Mobility$20,692 $11,795 $8,897 $2,134 $6,763 
Business Wireline5,221 3,526 1,695 1,345 350 
Consumer Wireline3,331 2,300 1,031 871 160 
Total Communications29,244 17,621 11,623 4,350 7,273 
Latin America - Mexico992 837 155 184 (29)
Segment Total30,236 18,458 11,778 4,534 7,244 
Corporate and Other
Corporate:
DTV-related retained costs 167 (167)144 (311)
Parent administration support(1)333 (334)1 (335)
Securitization fees25 164 (139) (139)
Value portfolio90 25 65 5 60 
Total Corporate114 689 (575)150 (725)
Certain significant items 716 (716)21 (737)
Total Corporate and Other114 1,405 (1,291)171 (1,462)
AT&T Inc.$30,350 $19,863 $10,487 $4,705 $5,782 
September 30, 2022
RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)
Communications
Mobility$20,278 $12,010 $8,268 $2,042 $6,226 
Business Wireline5,668 3,705 1,963 1,342 621 
Consumer Wireline3,185 2,243 942 800 142 
Total Communications29,131 17,958 11,173 4,184 6,989 
Latin America - Mexico785 684 101 164 (63)
Segment Total29,916 18,642 11,274 4,348 6,926 
Corporate and Other
Corporate:
DTV-related retained costs— 235 (235)139 (374)
Parent administration support(6)317 (323)(325)
Securitization fees15 103 (88)— (88)
Value portfolio118 32 86 77 
Total Corporate127 687 (560)150 (710)
Certain significant items— 188 (188)16 (204)
Total Corporate and Other127 875 (748)166 (914)
AT&T Inc.$30,043 $19,517 $10,526 $4,514 $6,012 
10


SUPPLEMENTAL SEGMENT RECONCILIATION
Nine Months Ended
Dollars in millions
Unaudited
September 30, 2023
RevenuesOperations
and Support
Expenses
EBITDADepreciation
and
Amortization
Operating
Income (Loss)
Communications
Mobility$61,589 $35,587 $26,002 $6,355 $19,647 
Business Wireline15,831 10,699 5,132 4,008 1,124 
Consumer Wireline9,821 6,810 3,011 2,589 422 
Total Communications87,241 53,096 34,145 12,952 21,193 
Latin America - Mexico2,842 2,396 446 544 (98)
Segment Total90,083 55,492 34,591 13,496 21,095 
Corporate and Other
Corporate:
DTV-related retained costs 514 (514)440 (954)
Parent administration support(13)1,039 (1,052)4 (1,056)
Securitization fees61 439 (378) (378)
Value portfolio275 77 198 16 182 
Total Corporate323 2,069 (1,746)460 (2,206)
Certain significant items 644 (644)55 (699)
Total Corporate and Other323 2,713 (2,390)515 (2,905)
AT&T Inc.$90,406 $58,205 $32,201 $14,011 $18,190 
September 30, 2022
RevenuesOperations and Support ExpensesEBITDADepreciation and AmortizationOperating Income (Loss)
Communications
Mobility$60,279 $36,198 $24,081 $6,118 $17,963 
Business Wireline16,903 11,199 5,704 3,954 1,750 
Consumer Wireline9,520 6,723 2,797 2,351 446 
Total Communications86,702 54,120 32,582 12,423 20,159 
Latin America - Mexico2,283 2,036 247 494 (247)
Segment Total88,985 56,156 32,829 12,917 19,912 
Corporate and Other
Corporate:
DTV-related retained costs634 (626)408 (1,034)
Parent administration support(24)1,005 (1,029)12 (1,041)
Securitization fees48 263 (215)— (215)
Value portfolio381 106 275 29 246 
Total Corporate413 2,008 (1,595)449 (2,044)
Certain significant items— 1,303 (1,303)60 (1,363)
Total Corporate and Other413 3,311 (2,898)509 (3,407)
AT&T Inc.$89,398 $59,467 $29,931 $13,426 $16,505 
11