Enhanced Investments - Financial Portal

Published: 2022-04-21 06:33:43 ET

EX-99.5 6 t-1q2022exhibit995.htm EX-99.5 SUPPLEMENTAL QUARTERLY STANDALONE AT&T FINANCIAL INFORMATION Document


Standalone AT&T Adjusted Consolidated Financial Information
Supplemental Unaudited Quarterly Comparative 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
	Reported AT&T Operating Revenues	$	42,779	$	40,950	$	42,340	$	45,691	$	171,760	$	43,939		$	44,045		$	39,922		$	40,958		$	168,864		$	38,105
[A]	Less: WarnerMedia	(7,765)		(6,728)		(7,395)		(8,554)		(30,442)		(8,526)			(8,791)			(8,442)			(9,873)			(35,632)			(8,741)
[B]	Less: Vrio	(887)		(752)		(753)		(762)		(3,154)		(743)			(749)			(756)			(359)			(2,607)			—
[C]	Less: Securitization - Revolver (WarnerMedia)	(14)		(23)		(21)		(22)		(80)		(31)			(35)			(41)			(29)			(136)			(29)
[D]	Add: Other items (conveyed) retained	12		9		13		18		52		11			16			14			15			56			17
[K]	Less: Intercompany eliminations	1,232		1,070		1,223		1,388		4,913		1,228			1,254			628			383			3,493			361
	Revenues from Continuing Operations	35,357		34,526		35,407		37,759		143,049		35,878			35,740			31,325			31,095			134,038			29,713
[E]	Less: Video	(7,407)		(7,021)		(7,014)		(7,168)		(28,610)		(6,725)			(6,639)			(2,149)			—			(15,513)			—
[F]	Less: Other dispositions (Held-for-sale)	(369)		(369)		(420)		(256)		(1,414)		(231)			(158)			(64)			—			(453)			—
[K]	Less: Intercompany eliminations	64		55		65		83		267		62			57			17			—			136			—
	Standalone AT&T Operating Revenues	$	27,645	$	27,191	$	28,038	$	30,418	$	113,292	$	28,984		$	29,000		$	29,129		$	31,095		$	118,208		$	29,713
	Reported Revenue Growth Rate Y/Y											2.7		%	7.6		%	(5.7)		%	(10.4)		%	(1.7)		%	(13.3)		%
	Revenue from Continuing Operations Growth Rate Y/Y											1.5		%	3.5		%	(11.5)		%	(17.6)		%	(6.3)		%	(17.2)		%
	Standalone AT&T Revenue Growth Rate Y/Y											4.8		%	6.7		%	3.9		%	2.2		%	4.3		%	2.5		%


	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
	Reported AT&T Operations and Support Expenses	$	28,071	$	30,133	$	29,178	$	49,457	$	136,839	$	30,469		$	35,015		$	27,194		$	29,977		$	122,655		$	26,925
[A]	Less: WarnerMedia	(5,605)		(4,656)		(5,483)		(5,835)		(21,579)		(6,403)			(6,934)			(6,271)			(8,129)			(27,737)			(7,295)
[B]	Less: Vrio	(783)		(661)		(675)		(681)		(2,800)		(661)			(660)			(660)			(321)			(2,302)			—
[L]	Less: Merger & Significant items related to WarnerMedia and Vrio	(242)		(2,440)		(183)		(1,082)		(3,947)		(59)			(4,555)			(179)			(215)			(5,008)			(267)
[D]	Add: Other items (conveyed) retained	57		67		55		75		254		41			42			48			40			171			39
[C]	Less: WarnerMedia Film amortization recharacterization and receivable securitization	13		54		(11)		(16)		40		(49)			(52)			(28)			(33)			(162)			(51)
[K]	Less: Intercompany eliminations	858		814		853		823		3,348		879			882			529			383			2,673			361
	Operations and Support Expenses from Continuing Operations	22,369		23,311		23,734		42,741		112,155		24,217			23,738			20,633			21,702			90,290			19,712
[D]	Less: Video	(6,020)		(5,809)		(5,887)		(6,458)		(24,174)		(5,660)			(5,275)			(1,731)			—			(12,666)			—
[E]	Less: Other dispositions (Held-for-sale)	(272)		(268)		(310)		(190)		(1,040)		(194)			(115)			(47)			—			(356)			—
[L]	Less: Merger & Significant items related to DTV and other dispositions	(32)		(98)		(24)		(15,529)		(15,683)		(13)			(22)			37			11			13			—
[K]	Less: Intercompany eliminations	64		55		65		83		267		62			57			17			—			136			—
[M]	Less: Reclassification of allocations for separated businesses	(76)		(86)		(76)		(84)		(322)		(15)			(19)			(16)			4			(46)			—
[G]	Add: DTV-related retained costs	350		350		350		350		1,400		350			350			117			—			817			—
	Standalone AT&T Operations and Support Expenses	16,535		17,627		18,004		21,081		73,247		18,777			18,752			19,042			21,709			78,280			19,712
[L]	Standalone AT&T Merger & Significant items	750		(757)		56		(43)		6		11			93			(146)			(96)			(138)			(191)
	Standalone AT&T Adjusted Operations and Support Expenses	$	17,285	$	16,870	$	18,060	$	21,038	$	73,253	$	18,788		$	18,845		$	18,896		$	21,613		$	78,142		$	19,521
	Reported Operations and Support Expense Growth Rate Y/Y											8.5		%	16.2		%	(6.8)		%	(39.4)		%	(10.4)		%	(11.6)		%
	Operations and Support Expenses from Continuing Operations Growth Rate Y/Y											8.3		%	1.8		%	(13.1)		%	(49.2)		%	(19.5)		%	(18.6)		%
	Standalone AT&T Operations and Support Expense Growth Rate Y/Y											13.6		%	6.4		%	5.8		%	3.0		%	6.9		%	5.0		%
	Standalone AT&T Adjusted Operations and Support Expense Growth Rate Y/Y											8.7		%	11.7		%	4.6		%	2.7		%	6.7		%	3.9		%


	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
	Reported AT&T Depreciation and Amortization Expense	$	7,222	$	7,285	$	7,030	$	6,979	$	28,516	$	5,809		$	5,761		$	5,619		$	5,673		$	22,862		$	5,539
[A]	Less: WarnerMedia	(161)		(164)		(169)		(177)		(671)		(163)			(165)			(163)			(165)			(656)			(127)
[B]	Less: Vrio	(147)		(127)		(126)		(120)		(520)		(117)			(114)			—			—			(231)			—
[D]	Add: Other items (conveyed) retained	3		3		3		3		12		3			3			3			3			12			3
[C]	Less: WarnerMedia Film amortization recharacterization	(69)		(77)		(47)		(38)		(231)		(20)			(16)			(18)			(19)			(73)			(9)
[L]	Less: Merger & Significant items related to WarnerMedia and Vrio	(1,143)		(1,267)		(1,082)		(1,093)		(4,585)		(1,045)			(1,040)			(1,021)			(1,014)			(4,120)			(944)
[K]	Less: Intercompany eliminations	—		1		—		—		1		—			—			—			—			—			—
	Depreciation and Amortization Expense from Continuing Operations	5,705		5,654		5,609		5,554		22,522		4,467			4,429			4,420			4,478			17,794			4,462
[E]	Less: Video	(591)		(593)		(557)		(521)		(2,262)		(164)			(148)			(44)			—			(356)			—
[F]	Less: Other dispositions (Held-for-sale)	(4)		(4)		(4)		(3)		(15)		—			—			—			—			—			—
[L]	Less: Merger & Significant items related to DTV and other dispositions	(879)		(846)		(813)		(780)		(3,318)		—			—			—			—			—			—
[G]	Add: DTV-related retained costs	180		180		180		180		720		180			180			60			—			420			—
	Standalone AT&T Depreciation and Amortization Expense	4,411		4,391		4,415		4,430		17,647		4,483			4,461			4,436			4,478			17,858			4,462
[L]	Standalone AT&T Merger & Significant items	(34)		(32)		(26)		(31)		(123)		(86)			(29)			9			(7)			(113)			(27)
	Standalone AT&T Adjusted Depreciation and Amortization Expense	$	4,377	$	4,359	$	4,389	$	4,399	$	17,524	$	4,397		$	4,432		$	4,445		$	4,471		$	17,745		$	4,435
	Reported Depreciation and Amortization Expense Growth Rate Y/Y											(19.6)		%	(20.9)		%	(20.1)		%	(18.7)		%	(19.8)		%	(4.6)		%
	Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y											(21.7)		%	(21.7)		%	(21.2)		%	(19.4)		%	(21.0)		%	(0.1)		%
	Standalone AT&T Depreciation and Amortization Expense Growth Rate Y/Y											1.6		%	1.6		%	0.5		%	1.1		%	1.2		%	(0.5)		%
	Standalone AT&T Adjusted Depreciation and Amortization Expense Growth Rate Y/Y											0.5		%	1.7		%	1.3		%	1.6		%	1.3		%	0.9		%


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
Reported AT&T Operating Income	$	7,486		$	3,532		$	6,132		$	(10,745)		$	6,405		$	7,661		$	3,269		$	7,109		$	5,308		$	23,347		$	5,641
Less: WarnerMedia	(1,999)			(1,908)			(1,743)			(2,542)			(8,192)			(1,960)			(1,692)			(2,008)			(1,579)			(7,239)			(1,319)
Less: Vrio	43			36			48			39			166			35			25			(96)			(38)			(74)			—
Less: Merger & Significant items related to WarnerMedia and Vrio	1,385			3,707			1,265			2,175			8,532			1,104			5,595			1,200			1,229			9,128			1,211
Add: Other items conveyed (retained)	(48)			(61)			(45)			(60)			(214)			(33)			(29)			(37)			(28)			(127)			(25)
Less: WarnerMedia Film amortization recharacterization and receivable securitization	42			—			37			32			111			38			33			5			23			99			31
Less: Intercompany eliminations	374			255			370			565			1,564			349			372			99			—			820			—
Operating Income from Continuing Operations	7,283			5,561			6,064			(10,536)			8,372			7,194			7,573			6,272			4,915			25,954			5,539
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: Merger & Significant items related to DTV and other dispositions	911			944			837			16,309			19,001			13			22			(37)			(11)			(13)			—
Less: Intercompany eliminations	—			—			—			—			—			—			—			—			—			—			—
Less: Reclassification of allocations for separated businesses	(76)			(86)			(76)			(84)			(322)			(15)			(19)			(16)			4			(46)			—
Add: Retained costs	(530)			(530)			(530)			(530)			(2,120)			(530)			(530)			(177)			—			(1,237)			—
Standalone AT&T Operating Income	$	6,699		$	5,173		$	5,619		$	4,907		$	22,398		$	5,724		$	5,787		$	5,651		$	4,908		$	22,070		$	5,539
Standalone AT&T Merger & Significant items	(716)			789			(30)			74			117			75			(64)			137			103			251			218
Standalone AT&T Adjusted Operating Income	$	5,983		$	5,962		$	5,589		$	4,981		$	22,515		$	5,799		$	5,723		$	5,788		$	5,011		$	22,321		$	5,757
Reported Operating Income Growth Rate Y/Y																2.3		%	(7.4)		%	15.9		%	149.4		%	264.5		%	(26.4)		%
Operating Income from Continuing Operations Growth Rate Y/Y																(1.2)		%	36.2		%	3.4		%	146.6		%	210.0		%	(23.0)		%
Standalone AT&T Operating Income Growth Rate Y/Y																(14.6)		%	11.9		%	0.6		%	—		%	(1.5)		%	(3.2)		%
Standalone AT&T Adjusted Operating Income Growth Rate Y/Y																(3.1)		%	(4.0)		%	3.6		%	0.6		%	(0.9)		%	(0.7)		%
Reported Operating Income Margin	17.5		%	8.6		%	14.5		%	(23.5)		%	3.7		%	17.4		%	7.4		%	17.8		%	13.0		%	13.8		%	14.8		%
Operating Income Margin from Continuing Operations	20.6		%	16.1		%	17.1		%	(27.9)		%	5.9		%	20.1		%	21.2		%	20.0		%	15.8		%	19.4		%	18.6		%
Standalone AT&T Operating Income Margin	24.2		%	19.0		%	20.0		%	16.1		%	19.8		%	19.7		%	20.0		%	19.4		%	15.8		%	18.7		%	18.6		%
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		%


	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
	Interest expense	$	(2,018)	$	(2,041)	$	(1,972)	$	(1,894)	$	(7,925)	$	(1,870)	$	(1,684)	$	(1,667)	$	(1,663)	$	(6,884)	$	(1,722)
	Equity in net income (loss) of affiliates	(6)		(10)		5		106		95		52		41		91		447		631		501
	Other income (expense) - net	803		1,017		(231)		(3,020)		(1,431)		4,221		999		2,279		2,354		9,853		2,187
	Reported AT&T Other Income (Expense)	(1,221)		(1,034)		(2,198)		(4,808)		(9,261)		2,403		(644)		703		1,138		3,600		966
	Less: Interest expense on debt conveyed	54		52		49		43		198		46		45		40		31		162		32
	Less: Equity method investments conveyed	(25)		1		(7)		20		(11)		(68)		(56)		74		1		(49)		13
	Less: Other income (expense) - net related to WarnerMedia and Vrio	(24)		(42)		(41)		220		113		(22)		(215)		119		(179)		(297)		(54)
[L]	Less: Merger & Significant items related to WarnerMedia and Vrio	24		158		37		2		221		—		135		(703)		124		(444)		78
	Other Income (Expense) from Continuing Operations	(1,192)		(865)		(2,160)		(4,523)		(8,740)		2,359		(735)		233		1,115		2,972		1,035
[I]	Less: Estimated interest expense impact of debt redemptions	—		—		—		—		—		371		371		371		371		1,484		371
[H]	Add: Estimated equity in net income from DIRECTV investment	971		848		789		497		3,105		746		955		293		—		1,994		—
[L]	Less: Merger & Significant items related to DTV and other dispositions	5		—		—		82		87		(64)		—		(2)		67		1		—
	Standalone AT&T Other Income (Expense)	$	(216)	$	(17)	$	(1,371)	$	(3,944)	$	(5,548)	$	3,412	$	591	$	895	$	1,553	$	6,451	$	1,406
[L]	Standalone AT&T Merger & Significant items	288		(26)		1,225		3,862		5,349		(2,899)		(12)		25		(854)		(3,740)		(546)
	Standalone AT&T Adjusted Other Income (Expense)	$	72	$	(43)	$	(146)	$	(82)	$	(199)	$	513	$	579	$	920	$	699	$	2,711	$	860


	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
	Revenues	$	35,357	$	34,526	$	35,407	$	37,759	$	143,049	$	35,878	$	35,740	$	31,325	$	31,095	$	134,038	$	29,713
	Operations and Support Expenses	22,369		23,311		23,734		42,741		112,155		24,217		23,738		20,633		21,702		90,290		19,712
	Depreciation and Amortization Expense	5,705		5,654		5,609		5,554		22,522		4,467		4,429		4,420		4,478		17,794		4,462
	Operating Income	7,283		5,561		6,064		(10,536)		8,372		7,194		7,573		6,272		4,915		25,954		5,539
	Other Income (Expense)	(1,192)		(865)		(2,160)		(4,523)		(8,740)		2,359		(735)		233		1,115		2,972		1,035
	Income (Loss) Before Income Taxes	6,091		4,696		3,904		(15,059)		(368)		9,553		6,838		6,505		6,030		28,926		6,574
	Income tax expense	1,280		1,026		741		(1,900)		1,147		2,028		1,047		1,335		906		5,316		1,425
	Income from Continuing Operations	4,811		3,670		3,163		(13,159)		(1,515)		7,525		5,791		5,170		5,124		23,610		5,149
	Less: Pro Forma adjustments to Operating Income	(584)		(388)		(445)		15,443		14,026		(1,470)		(1,786)		(621)		(7)		(3,884)		—
	Less: Pro forma adjustments Other Income (Expense)	976		848		789		579		3,192		1,053		1,326		662		438		3,479		371
[J]	Less: Estimated tax on pro forma adjustments	92		113		64		1,773		2,042		(62)		(101)		41		17		(105)		78
	Standalone AT&T Net Income	5,111		4,017		3,443		1,090		13,661		7,170		5,432		5,170		5,538		23,310		5,442
	Standalone AT&T Merger & Significant items	(341)		596		966		2,930		4,151		(2,251)		(72)		20		(802)		(3,105)		(210)
[M]	Add: Adjustment of estimated interest expense impact of debt redemptions	—		—		—		—		—		(297)		(297)		(297)		(297)		(1,188)		(293)
	Standalone AT&T Adjusted Net Income	4,770		4,613		4,409		4,020		17,812		4,622		5,063		4,893		4,439		19,017		4,939
	Less: Income from Continuing Operations attributable to Noncontrolling Interest	(353)		(282)		(352)		(368)		(1,355)		(392)		(304)		(355)		(347)		(1,398)		(354)
	Less: Preferred Stock Dividends	(32)		(52)		(54)		(55)		(193)		(50)		(56)		(50)		(51)		(207)		(48)
	Less: Merger & Significant items related to WarnerMedia and Vrio	—		(105)		—		—		(105)		—		(81)		—		—		(81)		—
	Adjusted Income from Continuing Operations Attributable to AT&T	$	4,385	$	4,174	$	4,003	$	3,597	$	16,159	$	4,180	$	4,622	$	4,488	$	4,041	$	17,331	$	4,537

	Comparative Basis Adjusted Diluted EPS	$	0.61	$	0.58	$	0.56	$	0.50	$	2.25	$	0.58	$	0.64	$	0.62	$	0.56	$	2.41	$	0.63


	EBITDA1	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
	Reported AT&T Net Income	$	4,963		$	1,563		$	3,168		$	(13,515)		$	(3,821)		$	7,942		$	1,874		$	6,273		$	5,390		$	21,479		$	5,164
	Additions:
	Income Tax Expense (Benefit)	1,302			935			766			(2,038)			965			2,122			751			1,539			1,056			5,468			1,443
	Interest Expense	2,018			2,041			1,972			1,894			7,925			1,870			1,684			1,667			1,663			6,884			1,722
	Equity in Net Income (Loss) of Affiliates	6			10			(5)			(106)			(95)			(52)			(41)			(91)			(447)			(631)			(501)
	Other (Income) Expense - net	(803)			(1,017)			231			3,020			1,431			(4,221)			(999)			(2,279)			(2,354)			(9,853)			(2,187)
	Depreciation and amortization	7,222			7,285			7,030			6,979			28,516			5,809			5,761			5,619			5,673			22,862			5,539
	EBITDA	14,708			10,817			13,162			(3,766)			34,921			13,470			9,030			12,728			10,981			46,209			11,180
[L]	Adjustments	(476)			3,295			151			16,654			19,625			61			4,484			288			300			5,133			458
	Adjusted EBITDA	14,232			14,112			13,313			12,888			54,545			13,531			13,514			13,016			11,281			51,342			11,638
	Less: WarnerMedia	(2,160)			(2,072)			(1,912)			(2,719)			(8,863)			(2,123)			(1,857)			(2,171)			(1,744)			(7,895)			(1,446)
	Less: Vrio	(104)			(91)			(78)			(81)			(354)			(82)			(89)			(96)			(38)			(305)			—
	Add: Other items conveyed (retained)	(45)			(58)			(42)			(57)			(202)			(30)			(26)			(34)			(25)			(115)			(22)
	Less: WarnerMedia Film amortization recharacterization and receivable securitization	(27)			(77)			(10)			(6)			(120)			18			17			(13)			4			26			22
	Less: Other dispositions (Held-for-sale)	(97)			(101)			(110)			(66)			(374)			(37)			(43)			(17)			—			(97)			—
	Less: Video	(1,387)			(1,212)			(1,127)			(710)			(4,436)			(1,065)			(1,364)			(418)			—			(2,847)			—
	Less: Intercompany eliminations	374			256			370			565			1,565			349			372			99			—			820			—
	Less: Reclassification of allocations for separated businesses	(76)			(86)			(76)			(84)			(322)			(15)			(19)			(16)			4			(46)			—
	Add: Retained costs	(350)			(350)			(350)			(350)			(1,400)			(350)			(350)			(117)			—			(817)			—
	Standalone AT&T Adjusted EBITDA	$	10,360		$	10,321		$	9,978		$	9,380		$	40,039		$	10,196		$	10,155		$	10,233		$	9,482		$	40,066		$	10,192
	Adjusted EBITDA Growth Rate Y/Y																(4.9)		%	(4.2)		%	(2.2)		%	(12.5)		%	(5.9)		%	(14.0)		%
	Standalone AT&T Adjusted EBITDA Growth Rate Y/Y																(1.6)		%	(1.6)		%	2..6			1.1		%	0.1		%	—		%
	Standalone AT&T EBITDA Margin	33.3		%	34.5		%	31.4		%	28.2		%	31.8		%	30.8		%	30.7		%	32.6		%	27.5		%	30.4		%	30.5		%
	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		%


	1 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.

NOTES


[A]			WarnerMedia segment results as reported in AT&T's consolidated financial statements, including Otter, Xandr and Playdemic.
[B]			Vrio business unit results within the Latin America segment as reported in AT&T's consolidated statements. AT&T retained the investment in Sky Mexico.
[C]			Adjustments for impacts from receivable securitizations related to WarnerMedia and the recharacterization of programming intangible assets amortization for released programming acquired in the Time Warner acquisition, which we continued to report with the WarnerMedia segment operating expenses.
[D]			Adjustments for AT&T's retention of the addressable TV advertising business, Invidi, and historically allocated general corporate overhead costs that do not meet the requirements for presentation in discontinued operations.
[E]			Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products.
[F]			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.
[G]			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.
[H]			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.
[I]			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%. As of the date of the filing to which these unaudited pro forma financial statements are attached, the Company has committed to approximately $10.1 billion of term loan repayments with a weighted-average rate of 1.1% and make-whole or other redemptions totaling $9.3 billion with a weighted-average rate of 3.5%. This adjustment is required for forma financial information prepared in accordance with Article 11 of Regulation S-X.
[J]			Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate of 20.0% for the year ended December 31, 2021, and 19.6% for the year ended December 31, 2020.
[K]			Under GAAP, AT&T removed transactions involving dealing between segments, including channel distribution of WarnerMedia content, and advertising arrangements.


	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		3/31/21
Intercompany Eliminations as reported by AT&T:
DTC (HBO Max) sales to Mobility & Consumer Wireline	$	—	$	(61)	$	(190)	$	(217)	$	(468)	$	(235)	$	(253)	$	(261)	$	(302)	$	(1,051)	$	(310)
WarnerMedia video distribution sales to DIRECTV and Vrio	(794)		(704)		(600)		(544)		(2,642)		(585)		(570)		(226)		(31)		(1,412)		—
WarnerMedia sales of DIRECTV advertising inventory	(413)		(294)		(408)		(603)		(1,718)		(388)		(410)		(111)		—		(909)		—
Other	(89)		(66)		(90)		(107)		(352)		(82)		(78)		(47)		(50)		(257)		(51)
Revenue Eliminations	(1,296)		(1,125)		(1,288)		(1,471)		(5,180)		(1,290)		(1,311)		(645)		(383)		(3,629)		(361)
DTC (HBO Max) sales to Mobility & Consumer Wireline	—		(61)		(190)		(217)		(468)		(235)		(253)		(261)		(302)		(1,051)		(310)
WarnerMedia video distribution sales to DIRECTV and Vrio	(794)		(704)		(600)		(544)		(2,642)		(585)		(570)		(226)		(31)		(1,412)		—
WarnerMedia sales of DIRECTV advertising inventory	(39)		(38)		(38)		(38)		(153)		(39)		(38)		(12)		—		(89)		—
Other	(89)		(66)		(90)		(107)		(352)		(82)		(78)		(47)		(50)		(257)		(51)
Operations and Support Eliminations	(922)		(869)		(918)		(906)		(3,615)		(941)		(939)		(546)		(383)		(2,809)		(361)
Operating Income & EBITDA	$	(374)	$	(256)	$	(370)	$	(565)	$	(1,565)	$	(349)	$	(372)	$	(99)	$	—	$	(820)	$	—


[L] Non-GAAP Adjustments1:	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		3/31/21
Merger costs	$	182	$	211	$	38	$	37	$	468	$	37	$	—	$	130	$	132	$	299	$	364
Employee separation costs and benefit-related (gain) loss	119		765		40		252		1,176		24		(71)		(3)		(20)		(70)		94
Asset impairments and abandonments	123		2,319		73		16,365		18,880		—		4,555		161		188		4,904		—
Gain on spectrum transaction	(900)		—		—		—		(900)		—		—		—		—		—		—
Adjustments to Operations and Support Expenses/ EBITDA	(476)		3,295		151		16,654		19,624		61		4,484		288		300		5,133		458
Amortization of intangible assets	2,056		2,145		1,921		1,890		8,012		1,131		1,069		1,012		1,021		4,233		971
Impairments	—		—		—		14		14		—		—		—		—		—		—
Adjustments to Operating Income	1,580		5,440		2,072		18,558		27,650		1,192		5,553		1,300		1,321		9,366		1,429
Other income (expense) net	317		132		1,262		3,971		5,682		(2,963)		123		(680)		(645)		(4,165)		(468)
Tax impact of adjustments and discrete items	(394)		(749)		(648)		(3,227)		(5,018)		372		(962)		(196)		(197)		(983)		(171)
Noncontrolling interest	—		(105)		—		—		(105)		—		(81)		—		—		(81)		—
Adjustments to Net Income	$	1,503	$	4,718	$	2,686	$	19,302	$	28,209	$	(1,399)	$	4,633	$	424	$	479	$	4,137	$	790


[M]			Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs born by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T.

Enhanced Investments, Inc.
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Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.