Enhanced Investments - Financial Portal

Published: 2021-10-21 06:27:57 ET

EX-99.1 2 t-3q2021801exhibit991.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
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2021		2020		Change		2021		2020		Change
Operating Revenues
Service	$	34,843	$	37,782	(7.8)	%	$	112,303	$	113,716	(1.2)	%
Equipment	5,079		4,558		11.4	%	15,603		12,353		26.3	%
Total Operating Revenues	39,922		42,340		(5.7)	%	127,906		126,069		1.5	%

Operating Expenses
Cost of revenues
Equipment	5,427		4,552		19.2	%	16,324		12,622		29.3	%
Broadcast, programming and operations	4,750		6,912		(31.3)	%	19,891		19,555		1.7	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)	7,649		8,375		(8.7)	%	23,797		24,833		(4.2)	%
Selling, general and administrative	9,207		9,266		(0.6)	%	27,950		27,857		0.3	%
Asset impairments and abandonments	161		73		—	%	4,716		2,515		87.5	%
Depreciation and amortization	5,619		7,030		(20.1)	%	17,189		21,537		(20.2)	%
Total Operating Expenses	32,813		36,208		(9.4)	%	109,867		108,919		0.9	%
Operating Income	7,109		6,132		15.9	%	18,039		17,150		5.2	%
Interest Expense	1,667		1,972		(15.5)	%	5,221		6,031		(13.4)	%
Equity in Net Income (Loss) of Affiliates	91		5		—	%	184		(11)		—	%
Other Income (Expense) — Net	2,279		(231)		—	%	7,499		1,589		—	%
Income Before Income Taxes	7,812		3,934		98.6	%	20,501		12,697		61.5	%
Income Tax Expense	1,539		766		—	%	4,412		3,003		46.9	%
Net Income	6,273		3,168		98.0	%	16,089		9,694		66.0	%
Less: Net Income Attributable to Noncontrolling Interest	(355)		(352)		(0.9)	%	(1,051)		(987)		(6.5)	%
Net Income Attributable to AT&T	$	5,918	$	2,816	—	%	$	15,038	$	8,707	72.7	%
Less: Preferred Stock Dividends	(50)		(54)		7.4	%	(156)		(138)		(13.0)	%
Net Income Attributable to Common Stock	$	5,868	$	2,762	—	%	$	14,882	$	8,569	73.7	%

Basic Earnings Per Share Attributable to Common Stock	$	0.82	$	0.39	—	%	$	2.07	$	1.19	73.9	%
Weighted Average Common Shares Outstanding (000,000)	7,171		7,147		0.3	%	7,167		7,160		0.1	%
Diluted Earnings Per Share Attributable to Common Stock	$	0.82	$	0.39	—	%	$	2.07	$	1.19	73.9	%
Weighted Average Common Shares Outstanding with Dilution (000,000)	7,202		7,173		0.4	%	7,197		7,186		0.2	%


AT&T Inc.
Financial Data

Consolidated Balance Sheets
Dollars in millions
Unaudited	Sep. 30,		Dec. 31,
	2021		2020
Assets
Current Assets
Cash and cash equivalents	$	21,270	$	9,740
Accounts receivable – net of related allowances for credit loss of $806 and $1,221	16,304		20,215
Inventories	3,088		3,695
Prepaid and other current assets	16,568		18,358
Total current assets	57,230		52,008
Noncurrent Inventories and Theatrical Film and Television Production Costs	17,811		14,752
Property, Plant and Equipment – Net	124,419		127,315
Goodwill	133,663		135,259
Licenses – Net	112,423		93,840
Trademarks and Trade Names – Net	22,097		23,297
Distribution Networks – Net	12,408		13,793
Other Intangible Assets – Net	12,338		15,386
Investments in and Advances to Equity Affiliates	8,629		1,780
Operating Lease Right-Of-Use Assets	24,341		24,714
Other Assets	21,748		23,617
Total Assets	$	547,107	$	525,761
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	23,755	$	3,470
Note payable to DIRECTV	1,180		—
Accounts payable and accrued liabilities	47,926		50,051
Advanced billings and customer deposits	4,991		6,176
Dividends payable	3,749		3,741
Total current liabilities	81,601		63,438
Long-Term Debt	155,406		153,775
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	63,405		60,472
Postemployment benefit obligation	14,158		18,276
Operating lease liabilities	21,510		22,202
Other noncurrent liabilities	29,466		28,358
Noncurrent note payable to DIRECTV	258		—
Total deferred credits and other noncurrent liabilities	128,797		129,308
Stockholders’ Equity
Preferred stock	—		—
Common stock	7,621		7,621
Additional paid-in capital	130,035		130,175
Retained earnings	41,091		37,457
Treasury stock	(17,319)		(17,910)
Accumulated other comprehensive income	2,343		4,330
Noncontrolling interest	17,532		17,567
Total stockholders’ equity	181,303		179,240
Total Liabilities and Stockholders’ Equity	$	547,107	$	525,761


AT&T Inc.
Financial Data

Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Nine-Month Period
	2021		2020
Operating Activities
Net income	$	16,089	$	9,694
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17,189		21,537
Amortization of film and television costs	8,421		6,448
Distributed (undistributed) earnings from investments in equity affiliates	102		108
Provision for uncollectible accounts	858		1,611
Deferred income tax expense	3,187		2,248
Net (gain) loss on investments, net of impairments	(965)		(689)
Pension and postretirement benefit expense (credit)	(2,870)		(2,245)
Actuarial (gain) loss on pension and postretirement benefits	(3,021)		63
Asset impairments and abandonments	4,716		2,515
Changes in operating assets and liabilities:
Receivables	57		2,321
Other current assets, inventories and theatrical film and television production costs	(11,928)		(7,836)
Accounts payable and other accrued liabilities	(2,254)		(4,905)
Equipment installment receivables and related sales	715		(148)
Deferred customer contract acquisition and fulfillment costs	316		453
Postretirement claims and contributions	(425)		(409)
Other - net	516		2,282
Total adjustments	14,614		23,354
Net Cash Provided by Operating Activities	30,703		33,048

Investing Activities
Capital expenditures	(12,696)		(13,283)
Acquisitions, net of cash acquired	(23,533)		(1,215)
Dispositions	9,086		428
Other - net	(190)		344
Net Cash Used in Investing Activities	(27,333)		(13,726)

Financing Activities
Net change in short-term borrowings with original maturities of three months or less	630		(17)
Issuance of other short-term borrowings	17,476		9,440
Repayment of other short-term borrowings	(2,448)		(7,710)
Issuance of long-term debt	9,931		31,987
Repayment of long-term debt	(1,653)		(37,583)
Note payable to DIRECTV, net of payments of $361	1,439		—
Payment of vendor financing	(4,013)		(1,965)
Issuance of preferred stock	—		3,869
Purchase of treasury stock	(191)		(5,483)
Issuance of treasury stock	89		88
Issuance of preferred interests in subsidiaries	—		1,979
Dividends paid	(11,319)		(11,215)
Other - net	(1,776)		(5,158)
Net Cash Provided by (Used in) Financing Activities	8,165		(21,768)
Net increase (decrease) in cash and cash equivalents and restricted cash	11,535		(2,446)
Cash and cash equivalents and restricted cash beginning of year	9,870		12,295
Cash and Cash Equivalents and Restricted Cash End of Period	$	21,405	$	9,849


AT&T Inc.
Consolidated Supplementary Data

Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited	Third Quarter				Percent		Nine-Month Period						Percent
	2021		2020		Change		2021			2020			Change
Capital expenditures
Purchase of property and equipment	$	4,666	$	3,819	22.2	%	$	12,564		$	13,191		(4.8)	%
Interest during construction - capital expenditures	38		32		18.8	%	132			92			43.5	%
Total Capital Expenditures	$	4,704	$	3,851	22.2	%	$	12,696		$	13,283		(4.4)	%

Acquisition, net of cash acquired
Business acquisitions	$	(26)	$	25	—	%	$	—		$	153		—	%
Spectrum acquisitions	131		16		—	%	23,017			1,062			—	%
Interest during construction - spectrum	259		—		—	%	516			—			—	%
Total Acquisitions	$	364	$	41	—	%	$	23,533		$	1,215		—	%

Cash Paid for Programming and Produced Film/TV Content	$	4,766	$	3,062	55.6	%	$	14,562		$	10,281		41.6	%

Dividends Declared per Common Share	$	0.52	$	0.52	—	%	$	1.56		$	1.56		—	%

End of Period Common Shares Outstanding (000,000)							7,140			7,125			0.2	%
Debt Ratio							49.7		%	44.9		%	480	BP
Total Employees							214,840			234,630			(8.4)	%

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


Segment Results
Dollars in millions
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2021		2020		Change		2021		2020		Change
Segment Operating Revenues
Mobility	$	19,138	$	17,894	7.0	%	$	57,108	$	52,445	8.9	%
Business Wireline	5,938		6,261		(5.2)	%	18,036		18,832		(4.2)	%
Consumer Wireline	3,142		3,040		3.4	%	9,380		9,202		1.9	%
Total Segment Operating Revenues	28,218		27,195		3.8	%	84,524		80,479		5.0	%

Segment Operating Contribution
Mobility	5,955		5,691		4.6	%	17,959		17,284		3.9	%
Business Wireline	985		1,184		(16.8)	%	3,093		3,567		(13.3)	%
Consumer Wireline	183		189		(3.2)	%	776		1,102		(29.6)	%
Total Segment Operating Contribution	$	7,123	$	7,064	0.8	%	$	21,828	$	21,953	(0.6)	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited					September 30,		Percent
					2021	2020	Change
Broadband Connections
Broadband					15,050	14,761	2.0	%
DSL					460	614	(25.1)	%
Total Broadband Connections					15,510	15,375	0.9	%

Voice Connections
Retail Consumer Switched Access Lines					6,404	7,562	(15.3)	%
U-verse Consumer VoIP Connections					3,440	3,942	(12.7)	%
Total Retail Voice Connections					9,844	11,504	(14.4)	%

	Third Quarter		Percent		Nine-Month Period		Percent
	2021	2020	Change		2021	2020	Change
Broadband Net Additions
Broadband	62	213	(70.9)	%	232	102	—	%
DSL	(33)	(39)	15.4	%	(106)	(116)	8.6	%
Total Broadband Net Additions	29	174	(83.3)	%	126	(14)	—	%

Mobility

Mobility provides nationwide wireless service and equipment.


Mobility Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Service	$	14,527		$	13,883		4.6	%	$	42,921		$	41,520		3.4	%
Equipment	4,611			4,011			15.0	%	14,187			10,925			29.9	%
Total Operating Revenues	19,138			17,894			7.0	%	57,108			52,445			8.9	%

Operating Expenses
Operations and support	11,148			10,182			9.5	%	33,077			29,083			13.7	%
Depreciation and amortization	2,035			2,021			0.7	%	6,072			6,078			(0.1)	%
Total Operating Expenses	13,183			12,203			8.0	%	39,149			35,161			11.3	%
Operating Income	5,955			5,691			4.6	%	17,959			17,284			3.9	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	5,955		$	5,691		4.6	%	$	17,959		$	17,284		3.9	%

Operating Income Margin	31.1		%	31.8		%	(70)	BP	31.4		%	33.0		%	(160)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2021			2020			Change
Mobility Subscribers
Postpaid									80,249			75,969			5.6	%
Postpaid phone									66,396			63,485			4.6	%
Prepaid									19,028			18,100			5.1	%
Reseller									6,263			6,708			(6.6)	%
Connected Devices									90,979			75,967			19.8	%
Total Mobility Subscribers									196,519			176,744			11.2	%

	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Mobility Net Additions
Postpaid Phone Net Additions	928			645			43.9	%	2,312			657			—	%
Total Phone Net Additions	1,177			776			51.7	%	2,942			880			—	%

Postpaid	1,218			1,081			12.7	%	3,197			954			—	%
Prepaid	351			245			43.3	%	927			365			—	%
Reseller	(164)			(4)			—	%	(357)			(252)			(41.7)	%
Connected Devices	3,468			4,203			(17.5)	%	10,194			9,976			2.2	%
Total Mobility Net Additions	4,873			5,525			(11.8)	%	13,961			11,043			26.4	%

Postpaid Churn	0.92		%	0.85		%	7 BP		0.91		%	0.99		%	(8) BP
Postpaid Phone-Only Churn	0.72		%	0.69		%	3 BP		0.72		%	0.80		%	(8) 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	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Service	$	5,765		$	6,079		(5.2)	%	$	17,497		$	18,271		(4.2)	%
Equipment	173			182			(4.9)	%	539			561			(3.9)	%
Total Operating Revenues	5,938			6,261			(5.2)	%	18,036			18,832			(4.2)	%

Operating Expenses
Operations and support	3,649			3,764			(3.1)	%	11,068			11,365			(2.6)	%
Depreciation and amortization	1,304			1,313			(0.7)	%	3,875			3,900			(0.6)	%
Total Operating Expenses	4,953			5,077			(2.4)	%	14,943			15,265			(2.1)	%
Operating Income	985			1,184			(16.8)	%	3,093			3,567			(13.3)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	985		$	1,184		(16.8)	%	$	3,093		$	3,567		(13.3)	%

Operating Income Margin	16.6		%	18.9		%	(230)	BP	17.1		%	18.9		%	(180)	BP

Consumer Wireline

Consumer Wireline provides broadband, including 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	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Broadband	$	2,290		$	2,128		7.6	%	$	6,761		$	6,329		6.8	%
Legacy voice and data services	484			538			(10.0)	%	1,507			1,679			(10.2)	%
Other service and equipment	368			374			(1.6)	%	1,112			1,194			(6.9)	%
Total Operating Revenues	3,142			3,040			3.4	%	9,380			9,202			1.9	%

Operating Expenses
Operations and support	2,184			2,117			3.2	%	6,298			5,924			6.3	%
Depreciation and amortization	775			734			5.6	%	2,306			2,176			6.0	%
Total Operating Expenses	2,959			2,851			3.8	%	8,604			8,100			6.2	%
Operating Income	183			189			(3.2)	%	776			1,102			(29.6)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	183		$	189		(3.2)	%	$	776		$	1,102		(29.6)	%

Operating Income Margin	5.8		%	6.2		%	(40)	BP	8.3		%	12.0		%	(370)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2021			2020			Change
Broadband Connections
Total Broadband and DSL Connections									14,180			14,102			0.6	%
Fiber Broadband Connections									5,721			4,678			22.3	%

Voice Connections
Retail Consumer Switched Access Lines									2,527			2,977			(15.1)	%
U-verse Consumer VoIP Connections									2,843			3,361			(15.4)	%
Total Retail Consumer Voice Connections									5,370			6,338			(15.3)	%

	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Broadband Net Additions
Total Broadband and DSL Net Additions	6			158			(96.2)	%	80			(17)			—	%
Fiber Broadband Net Additions	289			357			(19.0)	%	770			791			(2.7)	%

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	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Wireless service	$	2,059		$	1,950		5.6	%	$	6,053		$	5,784		4.7	%
Wireline service	5,765			6,079			(5.2)	%	17,497			18,271			(4.2)	%
Wireless equipment	813			662			22.8	%	2,384			1,957			21.8	%
Wireline equipment	173			182			(4.9)	%	539			561			(3.9)	%
Total Operating Revenues	8,810			8,873			(0.7)	%	26,473			26,573			(0.4)	%

Operating Expenses
Operations and support	5,603			5,441			3.0	%	16,815			16,447			2.2	%
Depreciation and amortization	1,651			1,632			1.2	%	4,903			4,862			0.8	%
Total Operating Expenses	7,254			7,073			2.6	%	21,718			21,309			1.9	%
Operating Income	1,556			1,800			(13.6)	%	4,755			5,264			(9.7)	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	1,556		$	1,800		(13.6)	%	$	4,755		$	5,264		(9.7)	%

Operating Income Margin	17.7		%	20.3		%	(260)	BP	18.0		%	19.8		%	(180)	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. Additional information is provided as part of the earnings material on the company’s Investor Relations website.


Segment Results
Dollars in millions
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2021		2020		Change		2021		2020		Change
Segment Operating Revenues
Subscription	$	3,988	$	3,477	14.7	%	$	11,779	$	10,142	16.1	%
Content and other	3,053		2,318		31.7	%	9,103		7,510		21.2	%
Advertising	1,401		1,600		(12.4)	%	4,877		4,236		15.1	%
Total Segment Operating Revenues	8,442		7,395		14.2	%	25,759		21,888		17.7	%

Direct Costs
Programming	3,068		3,181		(3.6)	%	10,996		8,638		27.3	%
Marketing	1,096		655		67.3	%	2,929		1,750		67.4	%
Other	932		734		27.0	%	2,599		2,329		11.6	%
General and administrative	1,175		913		28.7	%	3,084		3,027		1.9	%
Depreciation and amortization	163		169		(3.6)	%	491		494		(0.6)	%
Total Operating Expenses	6,434		5,652		13.8	%	20,099		16,238		23.8	%
Operating Income	2,008		1,743		15.2	%	5,660		5,650		0.2	%
Equity in Net Income (Loss) of Affiliates	(73)		12		—	%	44		31		41.9	%
Total Segment Operating Contribution	$	1,935	$	1,755	10.3	%	$	5,704	$	5,681	0.4	%

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: Vrio and Mexico.


Segment Results
Dollars in millions
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2021		2020		Change		2021		2020		Change
Segment Operating Revenues
Vrio	$	756	$	753	0.4	%	$	2,248	$	2,392	(6.0)	%
Mexico	724		643		12.6	%	2,043		1,826		11.9	%
Total Segment Operating Revenues	1,480		1,396		6.0	%	4,291		4,218		1.7	%

Segment Operating Contribution
Vrio	105		(34)		—	%	43		(101)		—	%
Mexico	(130)		(143)		9.1	%	(393)		(461)		14.8	%
Total Segment Operating Contribution	$	(25)	$	(177)	85.9	%	$	(350)	$	(562)	37.7	%

Vrio

Vrio provides entertainment services to customers utilizing satellite technology in Latin America and the Caribbean. We agreed to sell our Vrio business and applied held-for-sale accounting in the second quarter of 2021.


Vrio Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues	$	756		$	753		0.4	%	$	2,248		$	2,392		(6.0)	%

Operating Expenses
Operations and support	660			675			(2.2)	%	1,981			2,119			(6.5)	%
Depreciation and amortization	—			126			—	%	231			400			(42.3)	%
Total Operating Expenses	660			801			(17.6)	%	2,212			2,519			(12.2)	%
Operating Income (Loss)	96			(48)			—	%	36			(127)			—	%
Equity in Net Income (Loss) of Affiliates	9			14			(35.7)	%	7			26			(73.1)	%
Operating Contribution	$	105		$	(34)		—	%	$	43		$	(101)		—	%

Operating Income Margin	12.7		%	(6.4)		%	1,910	BP	1.6		%	(5.3)		%	690	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2021			2020			Change
Vrio Video Subscribers									10,142			10,893			(6.9)	%

	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Vrio Video Net Additions	(178)			229			—	%	(800)			(197)			—	%

Mexico

Mexico provides wireless services and equipment to customers in Mexico.


Mexico Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Operating Revenues
Wireless service	$	463		$	385		20.3	%	$	1,349		$	1,197		12.7	%
Wireless equipment	261			258			1.2	%	694			629			10.3	%
Total Operating Revenues	724			643			12.6	%	2,043			1,826			11.9	%

Operating Expenses
Operations and support	697			662			5.3	%	1,984			1,914			3.7	%
Depreciation and amortization	157			124			26.6	%	452			373			21.2	%
Total Operating Expenses	854			786			8.7	%	2,436			2,287			6.5	%
Operating Income (Loss)	(130)			(143)			9.1	%	(393)			(461)			14.8	%
Equity in Net Income (Loss) of Affiliates	—			—			—	%	—			—			—	%
Operating Contribution	$	(130)		$	(143)		9.1	%	$	(393)		$	(461)		14.8	%

Operating Income Margin	(18.0)		%	(22.2)		%	420	BP	(19.2)		%	(25.2)		%	600	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2021			2020			Change
Mexico Wireless Subscribers
Postpaid									4,781			4,710			1.5	%
Prepaid									14,199			13,249			7.2	%
Reseller									493			455			8.4	%
Total Mexico Wireless Subscribers									19,473			18,414			5.8	%

	Third Quarter						Percent		Nine-Month Period						Percent
	2021			2020			Change		2021			2020			Change
Mexico Wireless Net Additions
Postpaid	36			(61)			—	%	85			(393)			—	%
Prepaid	389			472			(17.6)	%	441			(335)			—	%
Reseller	2			30			(93.3)	%	4			83			(95.2)	%
Total Mexico Wireless Net Additions	427			441			(3.2)	%	530			(645)			—	%

SUPPLEMENTAL SEGMENT RECONCILIATION


Three Months Ended
Dollars in millions
Unaudited
September 30, 2021
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	19,138	$	11,148	$	7,990	$	2,035	$	5,955	$	—	$	5,955
Business Wireline	5,938		3,649		2,289		1,304		985		—		985
Consumer Wireline	3,142		2,184		958		775		183		—		183
Total Communications	28,218		16,981		11,237		4,114		7,123		—		7,123





WarnerMedia	8,442		6,271		2,171		163		2,008		(73)		1,935
Latin America
Vrio	756		660		96		—		96		9		105
Mexico	724		697		27		157		(130)		—		(130)
Total Latin America	1,480		1,357		123		157		(34)		9		(25)
Segment Total	38,140		24,609		13,531		4,434		9,097		$	(64)	$	9,033
Corporate and Other
Corporate	278		1,109		(831)		129		(960)
Video	2,149		1,731		418		44		374
Acquisition-related items	—		130		(130)		1,012		(1,142)
Certain significant items	—		161		(161)		—		(161)
Eliminations and consolidations	(645)		(546)		(99)		—		(99)
AT&T Inc.	$	39,922	$	27,194	$	12,728	$	5,619	$	7,109


Three Months Ended
Dollars in millions
Unaudited
September 30, 2020
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	17,894	$	10,182	$	7,712	$	2,021	$	5,691	$	—	$	5,691
Business Wireline	6,261		3,764		2,497		1,313		1,184		—		1,184
Consumer Wireline	3,040		2,117		923		734		189		—		189
Total Communications	27,195		16,063		11,132		4,068		7,064		—		7,064





WarnerMedia	7,395		5,483		1,912		169		1,743		12		1,755
Latin America
Vrio	753		675		78		126		(48)		14		(34)
Mexico	643		662		(19)		124		(143)		—		(143)
Total Latin America	1,396		1,337		59		250		(191)		14		(177)
Segment Total	35,986		22,883		13,103		4,487		8,616		$	26	$	8,642
Corporate and Other
Corporate	628		1,175		(547)		65		(612)
Video	7,014		5,887		1,127		557		570
Acquisition-related items	—		38		(38)		1,921		(1,959)
Certain significant items	—		113		(113)		—		(113)
Eliminations and consolidations	(1,288)		(918)		(370)		—		(370)
AT&T Inc.	$	42,340	$	29,178	$	13,162	$	7,030	$	6,132

SUPPLEMENTAL SEGMENT RECONCILIATION


Nine Months Ended
Dollars in millions
Unaudited
September 30, 2021
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	57,108	$	33,077	$	24,031	$	6,072	$	17,959	$	—	$	17,959
Business Wireline	18,036		11,068		6,968		3,875		3,093		—		3,093
Consumer Wireline	9,380		6,298		3,082		2,306		776		—		776
Total Communications	84,524		50,443		34,081		12,253		21,828		—		21,828





WarnerMedia	25,759		19,608		6,151		491		5,660		44		5,704
Latin America
Vrio	2,248		1,981		267		231		36		7		43
Mexico	2,043		1,984		59		452		(393)		—		(393)
Total Latin America	4,291		3,965		326		683		(357)		7		(350)
Segment Total	114,574		74,016		40,558		13,427		27,131		$	51	$	27,182
Corporate and Other
Corporate	1,065		3,482		(2,417)		194		(2,611)
Video	15,513		12,666		2,847		356		2,491
Acquisition-related items	—		167		(167)		3,212		(3,379)
Certain significant items	—		4,773		(4,773)		—		(4,773)
Eliminations and consolidations	(3,246)		(2,426)		(820)		—		(820)
AT&T Inc.	$	127,906	$	92,678	$	35,228	$	17,189	$	18,039


Nine Months Ended
Dollars in millions
Unaudited
September 30, 2020
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	52,445	$	29,083	$	23,362	$	6,078	$	17,284	$	—	$	17,284
Business Wireline	18,832		11,365		7,467		3,900		3,567		—		3,567
Consumer Wireline	9,202		5,924		3,278		2,176		1,102		—		1,102
Total Communications	80,479		46,372		34,107		12,154		21,953		—		21,953





WarnerMedia	21,888		15,744		6,144		494		5,650		31		5,681
Latin America
Vrio	2,392		2,119		273		400		(127)		26		(101)
Mexico	1,826		1,914		(88)		373		(461)		—		(461)
Total Latin America	4,218		4,033		185		773		(588)		26		(562)
Segment Total	106,585		66,149		40,436		13,421		27,015		$	57	$	27,072
Corporate and Other
Corporate	1,751		3,256		(1,505)		254		(1,759)
Video	21,442		17,716		3,726		1,741		1,985
Acquisition-related items	—		431		(431)		6,122		(6,553)
Certain significant items	—		2,539		(2,539)		—		(2,539)
Eliminations and consolidations	(3,709)		(2,709)		(1,000)		(1)		(999)
AT&T Inc.	$	126,069	$	87,382	$	38,687	$	21,537	$	17,150

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.