Enhanced Investments - Financial Portal

Published: 2022-01-26 06:34:42 ET

EX-99.2 3 t-4q2021exhibit992.htm EX99.2 AT&T SELECTED FINANCIAL STATEMENTS AND OPERATING DATA Document


AT&T Inc.
Financial Data

Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Fourth Quarter				Percent		Year Ended				Percent
	2021		2020		Change		2021		2020		Change
Operating Revenues
Service	$	34,088	$	39,051	(12.7)	%	$	146,391	$	152,767	(4.2)	%
Equipment	6,870		6,640		3.5	%	22,473		18,993		18.3	%
Total Operating Revenues	40,958		45,691		(10.4)	%	168,864		171,760		(1.7)	%

Operating Expenses
Cost of revenues
Equipment	7,454		7,084		5.2	%	23,778		19,706		20.7	%
Broadcast, programming and operations	4,906		7,750		(36.7)	%	24,797		27,305		(9.2)	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)	7,435		8,076		(7.9)	%	31,232		32,909		(5.1)	%
Selling, general and administrative	9,994		10,182		(1.8)	%	37,944		38,039		(0.2)	%
Asset impairments and abandonments	188		16,365		(98.9)	%	4,904		18,880		(74.0)	%
Depreciation and amortization	5,673		6,979		(18.7)	%	22,862		28,516		(19.8)	%
Total Operating Expenses	35,650		56,436		(36.8)	%	145,517		165,355		(12.0)	%
Operating Income (Loss)	5,308		(10,745)		—	%	23,347		6,405		—	%
Interest Expense	1,663		1,894		(12.2)	%	6,884		7,925		(13.1)	%
Equity in Net Income of Affiliates	447		106		—	%	631		95		—	%
Other Income (Expense) — Net	2,354		(3,020)		—	%	9,853		(1,431)		—	%
Income (Loss) Before Income Taxes	6,446		(15,553)		—	%	26,947		(2,856)		—	%
Income Tax (Benefit) Expense	1,056		(2,038)		—	%	5,468		965		—	%
Net Income (Loss)	5,390		(13,515)		—	%	21,479		(3,821)		—	%
Less: Net Income Attributable to Noncontrolling Interest	(347)		(368)		5.7	%	(1,398)		(1,355)		(3.2)	%
Net Income (Loss) Attributable to AT&T	$	5,043	$	(13,883)	—	%	$	20,081	$	(5,176)	—	%
Less: Preferred Stock Dividends	(51)		(55)		7.3	%	(207)		(193)		(7.3)	%
Net Income (Loss) Attributable to Common Stock	$	4,992	$	(13,938)	—	%	$	19,874	$	(5,369)	—	%

Basic Earnings Per Share Attributable to Common Stock	$	0.69	$	(1.95)	—	%	$	2.77	$	(0.75)	—	%
Weighted Average Common Shares Outstanding (000,000)	7,172		7,150		0.3	%	7,168		7,157		0.2	%
Diluted Earnings Per Share Attributable to Common Stock	$	0.69	$	(1.95)	—	%	$	2.76	$	(0.75)	—	%
Weighted Average Common Shares Outstanding with Dilution (000,000)	7,204		7,176		0.4	%	7,199		7,183		0.2	%


AT&T Inc.
Financial Data

Consolidated Balance Sheets
Dollars in millions
Unaudited	Dec. 31,		Dec. 31,
	2021		2020
Assets
Current Assets
Cash and cash equivalents	$	21,169	$	9,740
Accounts receivable – net of related allowance for credit loss of $771 and $1,221	17,571		20,215
Inventories	3,464		3,695
Prepaid and other current assets	17,793		18,358
Total current assets	59,997		52,008
Noncurrent Inventories and Theatrical Film and Television Production Costs	18,983		14,752
Property, Plant and Equipment – Net	125,904		127,315
Goodwill	133,223		135,259
Licenses – Net	113,830		93,840
Trademarks and Trade Names – Net	21,938		23,297
Distribution Networks – Net	11,942		13,793
Other Intangible Assets – Net	11,783		15,386
Investments in and Advances to Equity Affiliates	7,274		1,780
Operating Lease Right-Of-Use Assets	24,180		24,714
Other Assets	22,568		23,617
Total Assets	$	551,622	$	525,761
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	24,630	$	3,470
Note payable to DIRECTV	1,245		—
Accounts payable and accrued liabilities	50,661		50,051
Advanced billings and customer deposits	5,303		6,176
Dividends payable	3,749		3,741
Total current liabilities	85,588		63,438
Long-Term Debt	152,724		153,775
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	64,871		60,472
Postemployment benefit obligation	12,649		18,276
Operating lease liabilities	21,261		22,202
Other noncurrent liabilities	30,578		28,358
Noncurrent portion of note payable to DIRECTV	96		—
Total deferred credits and other noncurrent liabilities	129,455		129,308
Stockholders’ Equity
Preferred stock	—		—
Common stock	7,621		7,621
Additional paid-in capital	130,112		130,175
Retained earnings	42,350		37,457
Treasury stock	(17,280)		(17,910)
Accumulated other comprehensive income	3,529		4,330
Noncontrolling interest	17,523		17,567
Total stockholders’ equity	183,855		179,240
Total Liabilities and Stockholders’ Equity	$	551,622	$	525,761


AT&T Inc.
Financial Data

Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Year Ended
	2021		2020
Operating Activities
Net income (loss)	$	21,479	$	(3,821)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	22,862		28,516
Amortization of film and television costs	11,006		8,603
Distributed (undistributed) earnings from investments in equity affiliates	184		38
Provision for uncollectible accounts	1,240		1,972
Deferred income tax expense	5,246		1,675
Net (gain) loss on investments, net of impairments	(927)		(742)
Pension and postretirement benefit expense (credit)	(3,848)		(2,992)
Actuarial (gain) loss on pension and postretirement benefits	(4,140)		4,169
Asset impairments and abandonments	4,904		18,880
Changes in operating assets and liabilities:
Receivables	(634)		2,216
Other current assets, inventories and theatrical film and television production costs	(16,472)		(13,070)
Accounts payable and other accrued liabilities	1,636		(1,410)
Equipment installment receivables and related sales	(265)		(1,429)
Deferred customer contract acquisition and fulfillment costs	52		376
Postretirement claims and contributions	(822)		(985)
Other - net	456		1,134
Total adjustments	20,478		46,951
Net Cash Provided by Operating Activities	41,957		43,130

Investing Activities
Capital expenditures	(16,527)		(15,675)
Acquisitions, net of cash acquired	(25,453)		(1,851)
Dispositions	8,740		3,641
Distributions from DIRECTV in excess of cumulative equity in earnings	1,323		—
Other - net	(172)		337
Net Cash Used in Investing Activities	(32,089)		(13,548)

Financing Activities
Net change in short-term borrowings with original maturities of three months or less	1,316		(17)
Issuance of other short-term borrowings	21,856		9,440
Repayment of other short-term borrowings	(7,510)		(9,467)
Issuance of long-term debt	9,931		31,988
Repayment of long-term debt	(3,142)		(39,964)
Note payable to DIRECTV, net of payments of $459	1,341		—
Payment of vendor financing	(4,596)		(2,966)
Issuance of preferred stock	—		3,869
Purchase of treasury stock	(202)		(5,498)
Issuance of treasury stock	96		105
Issuance of preferred interests in subsidiaries	—		1,979
Redemption of preferred interest in subsidiaries	—		(1,950)
Dividends paid	(15,068)		(14,956)
Other - net	(2,444)		(4,570)
Net Cash Provided by (Used in) Financing Activities	1,578		(32,007)
Net increase (decrease) in cash and cash equivalents and restricted cash	11,446		(2,425)
Cash and cash equivalents and restricted cash beginning of year	9,870		12,295
Cash and Cash Equivalents and Restricted Cash End of Year	$	21,316	$	9,870


AT&T Inc.
Consolidated Supplementary Data

Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited	Fourth Quarter				Percent		Year Ended						Percent
	2021		2020		Change		2021			2020			Change
Capital expenditures
Purchase of property and equipment	$	3,790	$	2,361	60.5	%	$	16,354		$	15,552		5.2	%
Interest during construction	41		31		32.3	%	173			123			40.7	%
Total Capital Expenditures	$	3,831	$	2,392	60.2	%	$	16,527		$	15,675		5.4	%

Acquisition, net of cash acquired
Business acquisitions	$	—	$	85	—	%	$	—		$	238		—	%
Spectrum acquisitions	1,655		551		—	%	24,672			1,613			—	%
Interest during construction - spectrum	265		—		—	%	781			—			—	%
Total Acquisitions	$	1,920	$	636	—	%	$	25,453		$	1,851		—	%

Cash Paid for Programming and Produced Film/TV Content	$	4,602	$	4,617	(0.3)	%	$	19,164		$	14,898		28.6	%

Dividends Declared per Common Share	$	0.52	$	0.52	—	%	$	2.08		$	2.08		—	%

End of Period Common Shares Outstanding (000,000)							7,141			7,126			0.2	%
Debt Ratio							49.1		%	46.7		%	240	BP
Total Employees							202,600			230,760			(12.2)	%

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 the Video business, instead reporting those results in Corporate and Other.


Segment Results
Dollars in millions
Unaudited	Fourth Quarter				Percent		Year Ended				Percent
	2021		2020		Change		2021		2020		Change
Segment Operating Revenues
Mobility	$	21,146	$	20,119	5.1	%	$	78,254	$	72,564	7.8	%
Business Wireline	5,901		6,251		(5.6)	%	23,937		25,083		(4.6)	%
Consumer Wireline	3,159		3,116		1.4	%	12,539		12,318		1.8	%
Total Segment Operating Revenues	30,206		29,486		2.4	%	114,730		109,965		4.3	%

Segment Operating Contribution
Mobility	5,353		5,088		5.2	%	23,312		22,372		4.2	%
Business Wireline	897		997		(10.0)	%	3,990		4,564		(12.6)	%
Consumer Wireline	201		275		(26.9)	%	977		1,377		(29.0)	%
Total Segment Operating Contribution	$	6,451	$	6,360	1.4	%	$	28,279	$	28,313	(0.1)	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited					December 31,		Percent
					2021	2020	Change
Broadband Connections
Broadband					15,074	14,818	1.7	%
DSL					430	566	(24.0)	%
Total Broadband Connections					15,504	15,384	0.8	%

Voice Connections
Retail Consumer Switched Access Lines					6,177	7,263	(15.0)	%
U-verse Consumer VoIP Connections					3,333	3,816	(12.7)	%
Total Retail Consumer Voice Connections					9,510	11,079	(14.2)	%

	Fourth Quarter		Percent		Year Ended		Percent
	2021	2020	Change		2021	2020	Change
Broadband Net Additions
Broadband	24	57	(57.9)	%	256	159	61.0	%
DSL	(30)	(48)	37.5	%	(136)	(164)	17.1	%
Total Broadband Net Additions	(6)	9	—	%	120	(5)	—	%

Mobility

Mobility provides nationwide wireless service and equipment.


Mobility Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Service	$	14,669		$	14,022		4.6	%	$	57,590		$	55,542		3.7	%
Equipment	6,477			6,097			6.2	%	20,664			17,022			21.4	%
Total Operating Revenues	21,146			20,119			5.1	%	78,254			72,564			7.8	%

Operating Expenses
Operations and support	13,743			13,023			5.5	%	46,820			42,106			11.2	%
Depreciation and amortization	2,050			2,008			2.1	%	8,122			8,086			0.4	%
Total Operating Expenses	15,793			15,031			5.1	%	54,942			50,192			9.5	%
Operating Income	5,353			5,088			5.2	%	23,312			22,372			4.2	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	5,353		$	5,088		5.2	%	$	23,312		$	22,372		4.2	%

Operating Income Margin	25.3		%	25.3		%	—	BP	29.8		%	30.8		%	(100)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,						Percent
									2021			2020			Change
Mobility Subscribers
Postpaid									81,534			77,154			5.7	%
Postpaid phone									67,260			64,216			4.7	%
Prepaid									19,028			18,102			5.1	%
Reseller									6,113			6,535			(6.5)	%
Connected Devices									95,116			80,767			17.8	%
Total Mobility Subscribers									201,791			182,558			10.5	%

	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Mobility Net Additions
Postpaid Phone Net Additions	884			800			10.5	%	3,196			1,457			—	%
Total Phone Net Additions	908			760			19.5	%	3,850			1,640			—	%

Postpaid	1,285			1,229			4.6	%	4,482			2,183			—	%
Prepaid	29			14			—	%	956			379			—	%
Reseller	(177)			(197)			10.2	%	(534)			(449)			(18.9)	%
Connected Devices	4,134			4,809			(14.0)	%	14,328			14,785			(3.1)	%
Total Mobility Net Additions	5,271			5,855			(10.0)	%	19,232			16,898			13.8	%

Postpaid Churn	1.02		%	0.94		%	8	BP	0.94		%	0.98		%	(4) BP
Postpaid Phone-Only Churn	0.85		%	0.76		%	9	BP	0.76		%	0.79		%	(3) BP

Business Wireline

Business Wireline provides advanced IP-based services, as well as traditional data services to business customers.

Results have been recast to characterize revenues as either service or equipment, consistent with the way we are managing the business unit.


Business Wireline Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Service	$	5,727		$	6,042		(5.2)	%	$	23,224		$	24,313		(4.5)	%
Equipment	174			209			(16.7)	%	713			770			(7.4)	%
Total Operating Revenues	5,901			6,251			(5.6)	%	23,937			25,083			(4.6)	%

Operating Expenses
Operations and support	3,687			3,938			(6.4)	%	14,755			15,303			(3.6)	%
Depreciation and amortization	1,317			1,316			0.1	%	5,192			5,216			(0.5)	%
Total Operating Expenses	5,004			5,254			(4.8)	%	19,947			20,519			(2.8)	%
Operating Income	897			997			(10.0)	%	3,990			4,564			(12.6)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	897		$	997		(10.0)	%	$	3,990		$	4,564		(12.6)	%

Operating Income Margin	15.2		%	15.9		%	(70)	BP	16.7		%	18.2		%	(150)	BP

Consumer Wireline

Consumer Wireline provides internet, including broadband fiber, and voice communication services primarily to residential customers.

Results have been recast to refine the allocation of shared infrastructure and deferred customer acquisition costs between Consumer Wireline and Video.


Consumer Wireline Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Broadband	$	2,324		$	2,205		5.4	%	$	9,085		$	8,534		6.5	%
Legacy voice and data services	470			534			(12.0)	%	1,977			2,213			(10.7)	%
Other service and equipment	365			377			(3.2)	%	1,477			1,571			(6.0)	%
Total Operating Revenues	3,159			3,116			1.4	%	12,539			12,318			1.8	%

Operating Expenses
Operations and support	2,169			2,103			3.1	%	8,467			8,027			5.5	%
Depreciation and amortization	789			738			6.9	%	3,095			2,914			6.2	%
Total Operating Expenses	2,958			2,841			4.1	%	11,562			10,941			5.7	%
Operating Income	201			275			(26.9)	%	977			1,377			(29.0)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	201		$	275		(26.9)	%	$	977		$	1,377		(29.0)	%

Operating Income Margin	6.4		%	8.8		%	(240)	BP	7.8		%	11.2		%	(340)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,						Percent
									2021			2020			Change





Broadband Connections
Total Broadband and DSL Connections									14,160			14,100			0.4	%
Fiber Broadband Connections									5,992			4,951			21.0	%

Voice Connections
Retail Consumer Switched Access Lines									2,423			2,862			(15.3)	%
U-verse Consumer VoIP Connections									2,736			3,231			(15.3)	%
Total Retail Consumer Voice Connections									5,159			6,093			(15.3)	%

	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change





Broadband Net Additions
Total Broadband and DSL Net Additions	(20)			(2)			—	%	60			(19)			—	%
Fiber Broadband Net Additions	271			273			(0.7)	%	1,041			1,064			(2.2)	%

Business Solutions

As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile solutions to serving our business customers.

Results have been recast to conform to the current period's classification of revenues.


Business Solutions Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Wireless service	$	2,108		$	1,948		8.2	%	$	8,161		$	7,732		5.5	%
Wireline service	5,727			6,042			(5.2)	%	23,224			24,313			(4.5)	%
Wireless equipment	1,030			925			11.4	%	3,414			2,882			18.5	%
Wireline equipment	174			209			(16.7)	%	713			770			(7.4)	%
Total Operating Revenues	9,039			9,124			(0.9)	%	35,512			35,697			(0.5)	%

Operating Expenses
Operations and support	6,011			6,035			(0.4)	%	22,826			22,482			1.5	%
Depreciation and amortization	1,667			1,638			1.8	%	6,570			6,500			1.1	%
Total Operating Expenses	7,678			7,673			0.1	%	29,396			28,982			1.4	%
Operating Income	1,361			1,451			(6.2)	%	6,116			6,715			(8.9)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	1,361		$	1,451		(6.2)	%	$	6,116		$	6,715		(8.9)	%

Operating Income Margin	15.1		%	15.9		%	(80)	BP	17.2		%	18.8		%	(160)	BP

WARNERMEDIA SEGMENT

The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. WarnerMedia content is distributed through basic networks, Direct-to-Consumer (DTC) or theatrical, TV content and games licensing. Segment results also include Xandr advertising and Otter Media Holdings. We disposed of substantially all Otter Media assets in the third quarter of 2021. Additional information is provided as part of the earnings material on the company's Investor Relations website.


Segment Results
Dollars in millions
Unaudited	Fourth Quarter				Percent		Year Ended				Percent
	2021		2020		Change		2021		2020		Change
Segment Operating Revenues
Subscription	$	3,817	$	3,623	5.4	%	$	15,596	$	13,765	13.3	%
Content and other	4,411		3,042		45.0	%	13,514		10,552		28.1	%
Advertising	1,645		1,889		(12.9)	%	6,522		6,125		6.5	%
Total Segment Operating Revenues	9,873		8,554		15.4	%	35,632		30,442		17.0	%

Direct Costs
Programming	4,290		3,040		41.1	%	15,286		11,678		30.9	%
Marketing	1,208		779		55.1	%	4,137		2,529		63.6	%
Other	1,059		882		20.1	%	3,658		3,211		13.9	%
Selling, general and administrative	1,572		1,134		38.6	%	4,656		4,161		11.9	%
Depreciation and amortization	165		177		(6.8)	%	656		671		(2.2)	%
Total Operating Expenses	8,294		6,012		38.0	%	28,393		22,250		27.6	%
Operating Income	1,579		2,542		(37.9)	%	7,239		8,192		(11.6)	%
Equity in Net Income (Loss) of Affiliates	(6)		(13)		53.8	%	38		18		—	%
Total Segment Operating Contribution	$	1,573	$	2,529	(37.8)	%	$	7,277	$	8,210	(11.4)	%

LATIN AMERICA SEGMENT

The Latin America segment provides entertainment and wireless service outside of the U.S. Our international subsidiaries conduct business in their local currency and operating results are converted to U.S. dollars using official exchange rates. The Latin America segment contains two business units: Mexico and Vrio, which was sold in November 2021.


Segment Results
Dollars in millions
Unaudited	Fourth Quarter				Percent		Year Ended				Percent
	2021		2020		Change		2021		2020		Change
Segment Operating Revenues
Mexico	$	704	$	736	(4.3)	%	$	2,747	$	2,562	7.2	%
Vrio	359		762		(52.9)	%	2,607		3,154		(17.3)	%
Total Segment Operating Revenues	1,063		1,498		(29.0)	%	5,354		5,716		(6.3)	%

Segment Operating Contribution
Mexico	(117)		(126)		7.1	%	(510)		(587)		13.1	%
Vrio	37		(41)		—	%	80		(142)		—	%
Total Segment Operating Contribution	$	(80)	$	(167)	52.1	%	$	(430)	$	(729)	41.0	%

Mexico

Mexico provides wireless services and equipment to customers in Mexico.


Mexico Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Wireless service	$	485		$	459		5.7	%	$	1,834		$	1,656		10.7	%
Wireless equipment	219			277			(20.9)	%	913			906			0.8	%
Total Operating Revenues	704			736			(4.3)	%	2,747			2,562			7.2	%

Operating Expenses
Operations and support	668			722			(7.5)	%	2,652			2,636			0.6	%
Depreciation and amortization	153			140			9.3	%	605			513			17.9	%
Total Operating Expenses	821			862			(4.8)	%	3,257			3,149			3.4	%
Operating Income (Loss)	(117)			(126)			7.1	%	(510)			(587)			13.1	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	(117)		$	(126)		7.1	%	$	(510)		$	(587)		13.1	%

Operating Income Margin	(16.6)		%	(17.1)		%	50	BP	(18.6)		%	(22.9)		%	430	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,						Percent
									2021			2020			Change
Mexico Wireless Subscribers
Postpaid									4,807			4,696			2.4	%
Prepaid									15,057			13,758			9.4	%
Reseller									498			489			1.8	%
Total Mexico Wireless Subscribers									20,362			18,943			7.5	%

	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Mexico Wireless Net Additions
Postpaid	26			(14)			—	%	111			(407)			—	%
Prepaid	858			509			68.6	%	1,299			174			—	%
Reseller	5			34			(85.3)	%	9			118			(92.4)	%
Total Mexico Wireless Net Additions	889			529			68.1	%	1,419			(115)			—	%

Vrio

Vrio provides entertainment services to customers utilizing satellite technology in Latin America and the Caribbean. Vrio was sold to Grupo Werthein in November 2021.


Vrio Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues	$	359		$	762		(52.9)	%	$	2,607		$	3,154		(17.3)	%

Operating Expenses
Operations and support	321			681			(52.9)	%	2,302			2,800			(17.8)	%
Depreciation and amortization	—			120			—	%	231			520			(55.6)	%
Total Operating Expenses	321			801			(59.9)	%	2,533			3,320			(23.7)	%
Operating Income (Loss)	38			(39)			—	%	74			(166)			—	%
Equity in Net Income (Loss) of Affiliates	(1)			(2)			50.0	%	6			24			(75.0)	%
Operating Contribution	$	37		$	(41)		—	%	$	80		$	(142)		—	%

Operating Income Margin	10.6		%	(5.1)		%	1,570	BP	2.8		%	(5.3)		%	810	BP

SUPPLEMENTAL SEGMENT RECONCILIATION


Three Months Ended
Dollars in millions
Unaudited
December 31, 2021
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	21,146	$	13,743	$	7,403	$	2,050	$	5,353	$	—	$	5,353
Business Wireline	5,901		3,687		2,214		1,317		897		—		897
Consumer Wireline	3,159		2,169		990		789		201		—		201
Total Communications	30,206		19,599		10,607		4,156		6,451		—		6,451
WarnerMedia	9,873		8,129		1,744		165		1,579		(6)		1,573
Latin America
Mexico	704		668		36		153		(117)		—		(117)
Vrio	359		321		38		—		38		(1)		37
Total Latin America	1,063		989		74		153		(79)		(1)		(80)
Segment Total	41,142		28,717		12,425		4,474		7,951		$	(7)	$	7,944
Corporate and Other
Corporate	199		1,323		(1,124)		178		(1,302)
Video	—		—		—		—		—
Acquisition-related items	—		132		(132)		1,021		(1,153)
Certain significant items	—		188		(188)		—		(188)
Eliminations and consolidations	(383)		(383)		—		—		—
AT&T Inc.	$	40,958	$	29,977	$	10,981	$	5,673	$	5,308


Three Months Ended
Dollars in millions
Unaudited
December 31, 2020
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	20,119	$	13,023	$	7,096	$	2,008	$	5,088	$	—	$	5,088
Business Wireline	6,251		3,938		2,313		1,316		997		—		997
Consumer Wireline	3,116		2,103		1,013		738		275		—		275
Total Communications	29,486		19,064		10,422		4,062		6,360		—		6,360
WarnerMedia	8,554		5,835		2,719		177		2,542		(13)		2,529
Latin America
Mexico	736		722		14		140		(126)		—		(126)
Vrio	762		681		81		120		(39)		(2)		(41)
Total Latin America	1,498		1,403		95		260		(165)		(2)		(167)
Segment Total	39,538		26,302		13,236		4,499		8,737		$	(15)	$	8,722
Corporate and Other
Corporate	456		949		(493)		56		(549)
Video	7,168		6,458		710		521		189
Acquisition-related items	—		37		(37)		1,890		(1,927)
Certain significant items	—		16,617		(16,617)		14		(16,631)
Eliminations and consolidations	(1,471)		(906)		(565)		(1)		(564)
AT&T Inc.	$	45,691	$	49,457	$	(3,766)	$	6,979	$	(10,745)

SUPPLEMENTAL SEGMENT RECONCILIATION


Year Ended
Dollars in millions
Unaudited
December 31, 2021
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	78,254	$	46,820	$	31,434	$	8,122	$	23,312	$	—	$	23,312
Business Wireline	23,937		14,755		9,182		5,192		3,990		—		3,990
Consumer Wireline	12,539		8,467		4,072		3,095		977		—		977
Total Communications	114,730		70,042		44,688		16,409		28,279		—		28,279
WarnerMedia	35,632		27,737		7,895		656		7,239		38		7,277
Latin America
Mexico	2,747		2,652		95		605		(510)		—		(510)
Vrio	2,607		2,302		305		231		74		6		80
Total Latin America	5,354		4,954		400		836		(436)		6		(430)
Segment Total	155,716		102,733		52,983		17,901		35,082		$	44	$	35,126
Corporate and Other
Corporate	1,264		4,805		(3,541)		372		(3,913)
Video	15,513		12,666		2,847		356		2,491
Acquisition-related items	—		299		(299)		4,233		(4,532)
Certain significant items	—		4,961		(4,961)		—		(4,961)
Eliminations and consolidations	(3,629)		(2,809)		(820)		—		(820)
AT&T Inc.	$	168,864	$	122,655	$	46,209	$	22,862	$	23,347


Year Ended
Dollars in millions
Unaudited
December 31, 2020
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	72,564	$	42,106	$	30,458	$	8,086	$	22,372	$	—	$	22,372
Business Wireline	25,083		15,303		9,780		5,216		4,564		—		4,564
Consumer Wireline	12,318		8,027		4,291		2,914		1,377		—		1,377
Total Communications	109,965		65,436		44,529		16,216		28,313		—		28,313
WarnerMedia	30,442		21,579		8,863		671		8,192		18		8,210
Latin America
Mexico	2,562		2,636		(74)		513		(587)		—		(587)
Vrio	3,154		2,800		354		520		(166)		24		(142)
Total Latin America	5,716		5,436		280		1,033		(753)		24		(729)
Segment Total	146,123		92,451		53,672		17,920		35,752		$	42	$	35,794
Corporate and Other
Corporate	2,207		4,205		(1,998)		310		(2,308)
Video	28,610		24,174		4,436		2,262		2,174
Acquisition-related items	—		468		(468)		8,012		(8,480)
Certain significant items	—		19,156		(19,156)		14		(19,170)
Eliminations and consolidations	(5,180)		(3,615)		(1,565)		(2)		(1,563)
AT&T Inc.	$	171,760	$	136,839	$	34,921	$	28,516	$	6,405

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

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.
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.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
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.
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.