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Published: 2022-04-15 19:18:19 ET
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EX-99.1 2 exhibit991supplementalcomp.htm EX-99.1 SUPPLEMENTAL COMPARATIVE QUARTERLY FINANCIAL INFORMATION Document

Comparative Basis Financial Information
Supplemental Unaudited Quarterly Comparative Financial Information1
Dollars in millions
Unaudited
Operating Revenues3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
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 
[A]Less: WarnerMedia (7,765)(6,728)(7,395)(8,554)(30,442)(8,526)(8,791)(8,442)(9,873)(35,632)
[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)
[D]Add: Other items (conveyed) retained12 9 13 18 52 11 16 14 15 56 
[K]Less: Intercompany eliminations 1,232 1,070 1,223 1,388 4,913 1,228 1,254 628 383 3,493 
Revenues from Continuing Operations35,357 34,526 35,407 37,759 143,049 35,878 35,740 31,325 31,095 134,038 
[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 
Reported Revenue Growth Rate Y/Y2.7 %7.6 %(5.7)%(10.4)%(1.7)%
Revenue from Continuing Operations Growth Rate Y/Y1.5 %3.5 %(11.5)%(17.6)%(6.3)%
Standalone AT&T Revenue Growth Rate Y/Y4.8 %6.7 %3.9 %2.2 %4.3 %

1

Operations and Support Expenses3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
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 
[A]Less: WarnerMedia (5,605)(4,656)(5,483)(5,835)(21,579)(6,403)(6,934)(6,271)(8,129)(27,737)
[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)
[D]Add: Other items (conveyed) retained57 67 55 75 254 41 42 48 40 171 
[C]Less: WarnerMedia Film amortization
   recharacterization and receivable
   securitization		13 54 (11)(16)40 (49)(52)(28)(33)(162)
[K]Less: Intercompany eliminations 858 814 853 823 3,348 879 882 529 383 2,673 
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 
[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 costs350 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 
[L]Standalone AT&T Merger & Significant
   items		750 (757)56 (44)5 11 93 (145)(97)(138)
Standalone AT&T Adjusted Operations
   and Support Expenses		$17,285 $16,870 $18,060 $21,037 $73,252 $18,788 $18,845 $18,897 $21,612 $78,142 
Reported Operations and Support Expense Growth Rate Y/Y8.5 %16.2 %(6.8)%(39.4)%(10.4)%
Operations and Support Expenses from Continuing Operations Growth Rate Y/Y8.3 %1.8 %(13.1)%(49.2)%(19.5)%
Standalone AT&T Operations and Support Expense Growth Rate Y/Y13.6 %6.4 %5.8 %3.0 %6.9 %
Standalone AT&T Adjusted Operations and Support Expense Growth Rate Y/Y8.7 %11.7 %4.6 %2.7 %6.7 %


2

Depreciation and Amortization Expense3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
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 
[A]Less: WarnerMedia (161)(164)(169)(177)(671)(163)(165)(163)(165)(656)
[B]Less: Vrio (147)(127)(126)(120)(520)(117)(114)— — (231)
[D]Add: Other items (conveyed) retained3 3 3 3 12 3 3 3 3 12 
[C]Less: WarnerMedia Film amortization
  recharacterization and receivable
   securitization		(69)(77)(47)(38)(231)(20)(16)(18)(19)(73)
[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)
[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 
[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 costs180 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 
[L]Standalone AT&T Merger & Significant
   items		(34)(32)(26)(31)(123)(86)(29)9 (7)(113)
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 
Reported Depreciation and Amortization Expense Growth Rate Y/Y(19.6)%(20.9)%(20.1)%(18.7)%(19.8)%
Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y(21.7)%(21.7)%(21.2)%(19.4)%(21.0)%
Standalone AT&T Depreciation and Amortization Expense Growth Rate Y/Y1.6 %1.6 %0.5 %1.1 %1.2 %
Standalone AT&T Adjusted Depreciation and Amortization Expense Growth Rate Y/Y0.5 %1.7 %1.3 %1.6 %1.3 %


3

Operating Income3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
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 
Less: WarnerMedia (1,999)(1,908)(1,743)(2,542)(8,192)(1,960)(1,692)(2,008)(1,579)(7,239)
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 
Add: Other items conveyed (retained)(48)(61)(45)(60)(214)(33)(29)(37)(28)(127)
Less: WarnerMedia Film amortization
   recharacterization and receivable
   securitization		42 — 37 32 111 38 33 5 23 99 
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 
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 
Standalone AT&T Merger & Significant
   items		(716)789 (30)77 120 75 (64)136 104 251 
Standalone AT&T Adjusted
   Operating Income 		$5,983 $5,962 $5,589 $4,984 $22,518 $5,799 $5,723 $5,787 $5,012 $22,321 
Reported Operating Income Growth Rate Y/Y2.3 %(7.4)%15.9 %149.4 %264.5 %
Operating Income from Continuing Operations
   Growth Rate Y/Y		(1.2)%36.2 %3.4 %146.6 %210.0 %
Standalone AT&T Operating Income Growth
   Rate Y/Y		(14.6)%11.9 %0.6 %— %(1.5)%
Standalone AT&T Adjusted Operating Income
   Growth Rate Y/Y		(3.1)%(4.0)%3.5 %0.6 %(0.9)%
Reported Operating Income Margin17.5 %8.6 %14.5 %(23.5)%3.7 %17.4 %7.4 %17.8 %13.0 %13.8 %
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 %
Standalone AT&T Operating Income Margin24.2 %19.0 %20.0 %16.1 %19.8 %19.7 %20.0 %19.4 %15.8 %18.7 %
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 %
4


Other Income (Expense)3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
Interest expense$(2,018)$(2,041)$(1,972)$(1,894)$(7,925)$(1,870)$(1,684)$(1,667)$(1,663)$(6,884)
Equity in net income (loss) of affiliates(6)(10)5 106 95 52 41 91 447 631 
Other income (expense) - net803 1,017 (231)(3,020)(1,431)4,221 999 2,279 2,354 9,853 
Reported AT&T Other Income (Expense)(1,221)(1,034)(2,198)(4,808)(9,261)2,403 (644)703 1,138 3,600 
Less: Interest expense on debt conveyed54 52 49 43 198 46 45 40 31 162 
Less: Equity method investments
   conveyed		(25)1 (7)20 (11)(68)(56)74 1 (49)
Less: Other income (expense) - net
   related to WarnerMedia and Vrio		(24)(42)(41)220 113 (22)(215)119 (179)(297)
[L]Less: Merger & Significant items related
   to WarnerMedia and Vrio		24 158 37 2 221 — 135 (703)124 (444)
Other Income (Expense) from
   Continuing Operations		(1,192)(865)(2,160)(4,523)(8,740)2,359 (735)233 1,115 2,972 
[I]Less: Estimated interest expense impact
   of debt redemptions		— — — — — 371 371 371 371 1,484 
[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 
[L]Standalone AT&T Merger & Significant
   items		288 (26)1,225 3,862 5,349 (2,899)(12)25 (854)(3,740)
Standalone AT&T Adjusted Other Income
    (Expense)		$72 $(43)$(146)$(82)$(199)$513 $579 $920 $699 $2,711 


5

Income From Continuing Operations3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
Revenues$35,357 $34,526 $35,407 $37,759 $143,049 $35,878 $35,740 $31,325 $31,095 $134,038 
Operations and Support Expenses 22,369 23,311 23,734 42,741 112,155 24,217 23,738 20,633 21,702 90,290 
Depreciation and Amortization Expense 5,705 5,654 5,609 5,554 22,522 4,467 4,429 4,420 4,478 17,794 
Operating Income 7,283 5,561 6,064 (10,536)8,372 7,194 7,573 6,272 4,915 25,954 
Other Income (Expense) (1,192)(865)(2,160)(4,523)(8,740)2,359 (735)233 1,115 2,972 
Income (Loss) Before Income Taxes6,091 4,696 3,904 (15,059)(368)9,553 6,838 6,505 6,030 28,926 
Income tax expense1,280 1,026 741 (1,900)1,147 2,028 1,047 1,335 906 5,316 
Income from Continuing Operations4,811 3,670 3,163 (13,159)(1,515)7,525 5,791 5,170 5,124 23,610 
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 
[J]Less: Estimated tax on pro forma
   adjustments		92 113 64 1,773 2,042 (62)(101)41 17 (106)
Standalone AT&T Net Income5,111 4,017 3,443 1,090 13,661 7,170 5,432 5,170 5,538 23,311 
Standalone AT&T Merger & Significant
   items		(341)596 966 2,930 4,151 (2,251)(72)20 (802)(3,105)
[M]Add: Adjustment of estimated interest
   expense impact of debt redemptions		— — — — — (297)(297)(297)(297)(1,188)
Standalone AT&T Adjusted Net Income4,770 4,613 4,409 4,020 17,812 4,622 5,063 4,893 4,439 19,018 
Less: Income from Continuing
   Operations attributable to
   Noncontrolling Interest		(353)(282)(352)(368)(1,355)(392)(304)(355)(347)(1,398)
Less: Preferred Stock Dividends(32)(52)(54)(55)(193)(50)(56)(50)(51)(207)
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 $17,332 

6

Earnings from continuing operations per
share of common stock:1
3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
Basic$0.62 $0.45 $0.39 $(1.90)$(0.44)$0.99 $0.75 $0.66 $0.66 $3.06 
Diluted$0.61 $0.45 $0.38 $(1.89)$(0.44)$0.99 $0.74 $0.66 $0.66 $3.05 
Comparative Basis Adjusted Diluted$0.61 $0.58 $0.56 $0.50 $2.25 $0.58 $0.64 $0.62 $0.56 $2.41 
7

EBITDA2
3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
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 
Additions:
Income Tax Expense (Benefit)1,302 935 766 (2,038)965 2,122 751 1,539 1,056 5,468 
Interest Expense2,018 2,041 1,972 1,894 7,925 1,870 1,684 1,667 1,663 6,884 
Equity in Net Income (Loss) of Affiliates6 10 (5)(106)(95)(52)(41)(91)(447)(631)
Other (Income) Expense - net(803)(1,017)231 3,020 1,431 (4,221)(999)(2,279)(2,354)(9,853)
Depreciation and amortization7,222 7,285 7,030 6,979 28,516 5,809 5,761 5,619 5,673 22,862 
EBITDA14,708 10,817 13,162 (3,766)34,921 13,470 9,030 12,728 10,981 46,209 
[L]Adjustments(476)3,295 151 16,655 19,625 61 4,484 287 301 5,133 
Adjusted EBITDA14,232 14,112 13,313 12,889 54,546 13,531 13,514 13,015 11,282 51,342 
Less: WarnerMedia(2,160)(2,072)(1,912)(2,719)(8,863)(2,123)(1,857)(2,171)(1,744)(7,895)
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)
Less: WarnerMedia Film amortization
   recharacterization and receivable
   securitization		(27)(77)(10)(6)(120)18 17 (13)4 26 
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 eliminations374 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 EBITDA3
$10,360 $10,321 $9,978 $9,381 $40,040 $10,196 $10,155 $10,232 $9,483 $40,066 
Adjusted EBITDA Growth Rate Y/Y(4.9)%(4.2)%(2.2)%(12.5)%(5.9)%
Standalone AT&T Adjusted EBITDA Growth
   Rate Y/Y		(1.6)%(1.6)%2.5 %1.1 %0.1 %
Standalone AT&T EBITDA Margin33.3 %34.5 %31.4 %28.2 %31.8 %30.8 %30.7 %32.6 %27.5 %30.4 %
Standalone AT&T Adjusted EBITDA Margin37.5 %38.0 %35.6 %30.8 %35.3 %35.2 %35.0 %35.1 %30.5 %33.9 %
1 Diluted EPS does not reflect the adoption of ASU 2020-06.
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.
3Standalone AT&T adjusted EBITDA and pro forma adjusted net income definitions have been updated to exclude mark-to-market adjustments on benefit-related investments in 2021. Benefit-related investment gains included in EBITDA were ~$30M, $70M, $5M and $20M in the first, second, third and fourth quarters of 2021. Total benefit-related gains (losses) in net income were ~$90M, $170M, $0M and $170M in first, second, third and fourth quarters of 2021.
8

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.
9

[L] Non-GAAP Adjustments1:
3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
Intercompany Eliminations as reported
   by AT&T:
DTC (HBO Max) sales to Mobility &
   Consumer Wireline		$— $(61)$(190)$(217)$(468)$(235)$(253)$(261)$(302)$(1,051)
WarnerMedia video distribution sales
   to DIRECTV and Vrio		(794)(704)(600)(544)(2,642)(585)(570)(226)(31)(1,412)
WarnerMedia sales of DIRECTV
   advertising inventory		(413)(294)(408)(603)(1,718)(388)(410)(111)— (909)
Other(89)(66)(90)(107)(352)(82)(78)(47)(50)(257)
Revenue Eliminations(1,296)(1,125)(1,288)(1,471)(5,180)(1,290)(1,311)(645)(383)(3,629)
DTC (HBO Max) sales to Mobility &
   Consumer Wireline		— (61)(190)(217)(468)(235)(253)(261)(302)(1,051)
WarnerMedia video distribution sales
   to DIRECTV and Vrio		(794)(704)(600)(544)(2,642)(585)(570)(226)(31)(1,412)
WarnerMedia sales of DIRECTV
   advertising inventory		(39)(38)(38)(38)(153)(39)(38)(12)— (89)
Other(89)(66)(90)(107)(352)(82)(78)(47)(50)(257)
Operations and Support Eliminations(922)(869)(918)(906)(3,615)(941)(939)(546)(383)(2,809)
Operating Income & EBITDA$(374)$(256)$(370)$(565)$(1,565)$(349)$(372)$(99)$— $(820)



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[L] Non-GAAP Adjustments1:
3/31/20206/30/20209/30/202012/31/202020203/31/20216/30/20219/30/202112/31/20212021
Merger costs$182 $211 $38 $37 $468 $37 $— $130 $132 $299 
Employee separation costs and
   benefit-related (gain) loss		119 765 40 253 1,177 57 — — — 57 
Recast: (Gains) losses on benefit-
   related investments		— — — — — (33)(71)(4)(19)(127)
Asset impairments and abandonments123 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 16,655 19,625 61 4,484 287 301 5,133 
Amortization of intangible assets2,056 2,145 1,921 1,890 8,012 1,131 1,069 1,012 1,021 4,233 
Impairments— — — 14 14 — — — — — 
Adjustments to Operating Income1,580 5,440 2,072 18,559 27,651 1,192 5,553 1,299 1,322 9,366 
Other income (expense) net2
317 132 1,262 3,971 5,682 (2,903)337 (682)(491)(3,739)
Recast: (Gains) losses on benefit-
   related and other cost investments		— — — (17)(17)(60)(214)2 (154)(426)
Tax impact of adjustments and discrete
    items		(394)(749)(648)(3,227)(5,018)352 (1,018)(195)(224)(1,085)
Noncontrolling interest— (105)— — (105)— (81)— — (81)
Adjustments to Net Income$1,503 $4,718 $2,686 $19,286 $28,193 $(1,419)$4,577 $424 $453 $4,035 

1 As reported in AT&T’s Form 8-K filed April 22, 2021, July 23, 2021, October 21, 2021 and January 26, 2022, recast for consistency to include gains on benefit-related and other cost investments as noted above. Adjusting items include items considered non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, severance and other material gains and losses.
2 Includes adjustments to equity in net income of affiliates, including adjustment for DIRECTV intangible amortization (proportionate share).


[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.
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