# EDGAR Filing Document

**Accession Number:** 0000732717
**File Stem:** 0000732717-23-000007
**Filing Date:** 2023-1
**Character Count:** 218728
**Document Hash:** 31b581473336fcd1bbc3cd46d073a2ae
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000732717-23-000007.hdr.sgml**: 20230125

**ACCESSION NUMBER**: 0000732717-23-000007

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20230125

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230125

**DATE AS OF CHANGE**: 20230125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AT&T INC.
- **CENTRAL INDEX KEY:** 0000732717
- **STANDARD INDUSTRIAL CLASSIFICATION:** TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
- **IRS NUMBER:** 431301883
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08610
- **FILM NUMBER:** 23549678

**BUSINESS ADDRESS:**
- **STREET 1:** 208 S. AKARD ST
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75202
- **BUSINESS PHONE:** 2108214105

**MAIL ADDRESS:**
- **STREET 1:** 208 S. AKARD ST
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75202

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SBC COMMUNICATIONS INC
- **DATE OF NAME CHANGE:** 19950501

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOUTHWESTERN BELL CORP
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" ? t-20230125

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**______________________________________________________**

**FORM 8-K** 

**______________________________________________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of report (Date of earliest event reported) January 25, 2023**

**______________________________________________________**

**AT&T INC.**

**(Exact Name of Registrant as Specified in Charter)**

**______________________________________________________**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-08610** | **43-1301883** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |
| **208 S. Akard St., Dallas, Texas**<br>**(Address of Principal Executive Offices)** | **208 S. Akard St., Dallas, Texas**<br>**(Address of Principal Executive Offices)** | **75202**<br>**(Zip Code)** |
| **208 S. Akard St., Dallas, Texas**<br>**(Address of Principal Executive Offices)** | **208 S. Akard St., Dallas, Texas**<br>**(Address of Principal Executive Offices)** | **75202**<br>**(Zip Code)** |

---

**Registrant's telephone number, including area code (210) 821-4105**

**(Former Name or Former Address, if Changed Since Last Report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities Registered Pursuant to Section 12(b) of the Act**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange<br>on which registered** |
| Common Shares (Par Value $1.00 Per Share) | T | New York Stock Exchange |
| Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A | T PRA | New York Stock Exchange |
| Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C | T PRC | New York Stock Exchange |
| AT&T Inc. 2.500% Global Notes due March 15, 2023 | T 23 | New York Stock Exchange |
| AT&T Inc. 2.750% Global Notes due May 19, 2023 | T 23C | New York Stock Exchange |
| AT&T Inc. Floating Rate Global Notes due September 5, 2023 | T 23D | New York Stock Exchange |
| AT&T Inc. 1.050% Global Notes due September 5, 2023 | T 23E | New York Stock Exchange |
| AT&T Inc. 1.300% Global Notes due September 5, 2023 | T 23A | New York Stock Exchange |

---

------

---

| | | |
|:---|:---|:---|
| **Title of each class** | <br>**Trading**<br>**Symbol(s)** | <br>**Name of each exchange**<br>**on which registered** |
| AT&T Inc. 1.950% Global Notes due September 15, 2023 | T 23F | New York Stock Exchange |
| AT&T Inc. 2.400% Global Notes due March 15, 2024 | T 24A | New York Stock Exchange |
| AT&T Inc. 3.500% Global Notes due December 17, 2025 | T 25 | New York Stock Exchange |
| AT&T Inc. 0.250% Global Notes due March 4, 2026 | T 26E | New York Stock Exchange |
| AT&T Inc. 1.800% Global Notes due September 5, 2026 | T 26D | New York Stock Exchange |
| AT&T Inc. 2.900% Global Notes due December 4, 2026 | T 26A | New York Stock Exchange |
| AT&T Inc. 1.600% Global Notes due May 19, 2028 | T 28C | New York Stock Exchange |
| AT&T Inc. 2.350% Global Notes due September 5, 2029 | T 29D | New York Stock Exchange |
| AT&T Inc. 4.375% Global Notes due September 14, 2029 | T 29B | New York Stock Exchange |
| AT&T Inc. 2.600% Global Notes due December 17, 2029 | T 29A | New York Stock Exchange |
| AT&T Inc. 0.800% Global Notes due March 4, 2030 | T 30B | New York Stock Exchange |
| AT&T Inc. 2.050% Global Notes due May 19, 2032 | T 32A | New York Stock Exchange |
| AT&T Inc. 3.550% Global Notes due December 17, 2032 | T 32 | New York Stock Exchange |
| AT&T Inc. 5.200% Global Notes due November 18, 2033 | T 33 | New York Stock Exchange |
| AT&T Inc. 3.375% Global Notes due March 15, 2034 | T 34 | New York Stock Exchange |
| AT&T Inc. 2.450% Global Notes due March 15, 2035 | T 35 | New York Stock Exchange |
| AT&T Inc. 3.150% Global Notes due September 4, 2036 | T 36A | New York Stock Exchange |
| AT&T Inc. 2.600% Global Notes due May 19, 2038 | T 38C | New York Stock Exchange |
| AT&T Inc. 1.800% Global Notes due September 14, 2039 | T 39B | New York Stock Exchange |
| AT&T Inc. 7.000% Global Notes due April 30, 2040 | T 40 | New York Stock Exchange |
| AT&T Inc. 4.250% Global Notes due June 1, 2043 | T 43 | New York Stock Exchange |
| AT&T Inc. 4.875% Global Notes due June 1, 2044 | T 44 | New York Stock Exchange |
| AT&T Inc. 4.000% Global Notes due June 1, 2049 | T 49A | New York Stock Exchange |
| AT&T Inc. 4.250% Global Notes due March 1, 2050 | T 50 | New York Stock Exchange |
| AT&T Inc. 3.750% Global Notes due September 1, 2050 | T 50A | New York Stock Exchange |
| AT&T Inc. 5.350% Global Notes due November 1, 2066 | TBB | New York Stock Exchange |
| AT&T Inc. 5.625% Global Notes due August 1, 2067 | TBC | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition.**

The registrant announced on January 25, 2023, its results of operations for the fourth quarter of 2022. The text of the press release and accompanying financial information are attached as exhibits and incorporated herein by reference.

**Item 9.01 Financial Statements and Exhibits.**

The following exhibits are furnished as part of this report:

---

| | | |
|:---|:---|:---|
| (d) | Exhibits | Exhibits |
|  | <u>[99.1](t-4q2022exhibit991.htm)</u> | <u>[Press release dated January 25, 2023 reporting financial results for the fourth quarter ended December 31, 2022.](t-4q2022exhibit991.htm)</u> |
|  | <u>[99.2](t-4q2022exhibit992.htm)</u> | <u>[AT&T Inc. selected financial statements and operating data.](t-4q2022exhibit992.htm)</u> |
|  | <u>[99.3](t-4q2022exhibit993.htm)</u> | <u>[Discussion and reconciliation of non-GAAP measures.](t-4q2022exhibit993.htm)</u> |
|  | <u>[99.4](t-4q2022exhibit994.htm)</u> | <u>[Supplemental Quarterly Standalone AT&T Financial Information.](t-4q2022exhibit994.htm)</u> |
|  | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**Signature**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| | AT&T INC. |
| Date: January 25, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: /<u>s/ Debra L. Dial</u> <u>.</u><br>&nbsp;&nbsp;&nbsp;&nbsp; Debra L. Dial<br>Senior Vice President - Chief Accounting Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;and Controller |

---

## Exhibit 99.1

![header4q2022a.gif](header4q2022a.gif)

**AT&T Reports Fourth-Quarter Results and Full-Year Results**

***Continued strong subscriber growth***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *656,000 postpaid phone net adds; nearly 2.9 million for the full year* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *280,000 AT&T Fiber net adds, 12 straight quarters with more than 200,000 net adds; more than 1.2 million net adds for full-year 2022, fifth straight year with 1 million or more AT&T Fiber net adds*

***Subscriber additions driving revenue growth***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Domestic wireless service revenues up 5.2%; 5.1% for the full year*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Consumer broadband revenues up 7.2% driven by AT&T Fiber revenue growth of more than 31%; full-year broadband revenues grew 6.4% with AT&T Fiber revenues up nearly 29%*

***Network deployment on or ahead of schedule***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Mid-band 5G spectrum covering 150 million people, more than two times higher than original end-of-year target*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Ability to serve more than 19 million consumer locations and more than 3 million business customer locations in more than 100 U.S. metro areas with fiber*

***Transformation supporting margin growth***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Achieved more than $5 billion of $6 billion-plus run-rate cost savings target at year end*

**Fourth-Quarter Consolidated Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Revenues*** *from continuing operations*<sup>1</sup> *of $31.3 billion*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Reported EPS*** *from continuing operations of $(3.20)*<sup>2</sup> *due to non-cash charges compared to $.66 in the prior year*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Adjusted EPS***<sup>\*</sup> *from continuing operations of $0.61 compared to $.56 in the prior year* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Cash from operating activities*** *from continuing operations of $10.3 billion*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Capital expenditures*** *from continuing operations of $4.2 billion; capital investment*<sup>\*</sup> *from continuing operations of $4.7 billion*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Free cash flow***<sup>\*</sup> *from continuing operations of $6.1 billion*

**Full-Year Consolidated Results** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Revenues*** *from continuing operations of $120.7 billion*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Reported EPS*** *from continuing operations of ($1.10)* <sup>2</sup> *due to non-cash charges* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Adjusted EPS***<sup>\*</sup> *from continuing operations of $2.57*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Cash from operations*** *of $35.8 billion*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Capital expenditures*** *of $19.6 billion; capital investment*<sup>\*</sup> *of $24.3 billion*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Free cash flow***<sup>\*</sup> *of $14.1 billion*

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

------

![header4q2022a.gif](header4q2022a.gif)

**2023 Outlook – Continuing Operations**

For the full year AT&T expects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wireless service revenue growth of 4% or higher

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Broadband revenue growth of 5% or higher

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA\* growth of 3% or higher

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital investment\* of about $24 billion, consistent with 2022 levels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free cash flow\* of $16 billion or better, up $2 billion from 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EPS<sup>\*</sup> of $2.35 to $2.45, which includes an expected ($0.25) of impacts from higher non-cash pension costs related to higher interest rates, lower capitalized interest and impacts from an expected higher effective tax rate of 23% to 24%

*Note: AT&T's fourth-quarter earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, January 25, 2023. The webcast and related materials, including financial highlights, will be available on AT&T's Investor Relations website at https://investors.att.com.*

DALLAS, January 25, 2023 — AT&T Inc. (NYSE: T) reported fourth-quarter results that showed sustained momentum in customer additions across 5G and fiber and solid growth in wireless service and broadband revenues.

"We're committed to connecting people to greater possibility, and our results demonstrate that our customers are responding to this," said John Stankey, AT&T CEO. "Our consistent go-to-market strategy and the simplicity of our offerings drove continued robust, high-quality wireless and fiber customer additions in the fourth quarter. Over the last 10 quarters, we've demonstrated sustainable momentum in growing customer relationships, with 7.5 million postpaid phone net adds and 2.9 million AT&T Fiber net adds.

"We met or surpassed all of our profitability targets for the year all while investing at record levels to bring the benefits of our 5G and fiber technologies to even more people. As we enter 2023, I'm confident in the trajectory of our business and in our team's ability to deliver profitable and durable growth for our shareholders."

**Consolidated Financial Results** 

**Revenues** from continuing operations for the fourth quarter totaled $31.3 billion versus $31.1 billion in the year-ago quarter, up 0.8%. This increase primarily reflects higher Mobility, Mexico and Consumer Wireline revenues, partly offset by lower Business Wireline revenues.

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 2

------

![header4q2022a.gif](header4q2022a.gif)

**Operating expenses** from continuing operations were $52.4 billion versus $26.2 billion in the year-ago quarter. Operating expenses increased primarily due to non-cash goodwill impairments and asset abandonments and restructuring charges in the current quarter totaling $26.8 billion. Goodwill impairments of $24.8 billion were associated with our Business Wireline, Consumer Wireline and Mexico reporting units and were driven by higher interest rates consistent with the macroeconomic environment, with secular declines also impacting Business Wireline growth rates. Asset abandonments of $1.4 billion were associated with certain wireline conduits no longer required to support our copper and fiber networks. To a lesser extent, the year-over-year increase also reflected higher bad debt expense and increased depreciation, partly offset by lower wireless equipment costs from lower volumes and the lack of 3G network shutdown costs in the fourth quarter of 2022.

**Operating income (loss)** from continuing operations was ($21.1) billion versus $4.9 billion in the year-ago quarter. When adjusting for the asset impairments and abandonments, and other items, adjusted operating income<sup>\*</sup> from continuing operations was $5.7 billion versus $5.0 billion in the year-ago quarter.

**Equity in net income of affiliates** of $0.4 billion primarily from the DIRECTV investment. With adjustment for our proportionate share of intangible amortization, adjusted equity in net income from the DIRECTV investment<sup>\*</sup> was $0.7 billion.

**Income (loss) from continuing operations** was ($23.1) billion versus $5.2 billion in the year-ago quarter. Earnings per common share from continuing operations was ($3.20) versus $0.66 in the year-ago quarter. Adjusting for ($3.81), which includes asset impairments and abandonments, an actuarial loss on benefit plans, our proportionate share of intangible amortization from the DIRECTV equity method investment and other items, earnings per diluted common share<sup>\*</sup> from continuing operations was $0.61 compared to $0.56 in the year-ago quarter.

**Cash from operating activities** from continuing operations was $10.3 billion, up $2.3 billion year over year. **Capital expenditures** from continuing operations were $4.2 billion in the quarter versus $3.5 billion in the year-ago quarter. **Capital investment**<sup>\*</sup> from continuing operations, which includes $0.5 billion of cash payments for vendor financing, totaled $4.7 billion.

**Free cash flow**<sup>\*</sup> from continuing operations was $6.1 billion for the quarter.

**Full-Year Results**

**Revenues** from continuing operations for the full year totaled $120.7 billion versus $134.0 billion in 2021, down 9.9% reflecting the impact of the U.S. Video separation in July 2021. Excluding the impact of U.S. Video, operating revenues for standalone AT&T<sup>\*</sup> were up 2.1%, from $118.2 billion, primarily driven by higher revenues from Mobility, and, to a lesser extent, Mexico and Consumer Wireline, partially offset by lower Business Wireline revenues.

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 3

------

![header4q2022a.gif](header4q2022a.gif)

**Operating expenses** from continuing operations were $125.3 billion compared with $108.1 billion in 2021 primarily due to higher non-cash asset impairments and abandonments, and restructuring charges, partly offset by the inclusion in the prior year of U.S. Video results for seven months as well as other divested businesses. To a lesser extent, the year-over-year increase reflects higher bad debt expense, the elimination of CAF II government credits and increased wholesale network access charges. Wireless equipment costs were up slightly year over year as the impacts of higher sales volumes and the sale of higher-priced smartphones were largely offset by lower 3G network shutdown costs.

**Operating income (loss)** from continuing operations was ($4.6) billion versus $25.9 billion in 2021. When adjusting for asset impairments, abandonments, restructuring, and other items, adjusted operating income<sup>\*</sup> from continuing operations was $23.5 billion versus $26.2 billion a year ago. When excluding the impacts of prior-year dispositions, standalone AT&T<sup>\*</sup> adjusted operating income totaled $22.3 billion for full year 2021.

**Equity in net income of affiliates** of $1.8 billion primarily from the DIRECTV investment. With adjustment for our proportionate share of intangible amortization, adjusted equity in net income from the DIRECTV investment<sup>\*</sup> for full year 2022 was $3.4 billion.

**Income (loss) from continuing operations** was ($6.9) billion versus $23.8 billion a year ago. Earnings per common share from continuing operations was ($1.10) versus $3.02 for full-year 2021. With adjustments for both years, adjusted earnings per diluted common share from continuing operations<sup>\*</sup> was $2.57 versus $2.63 for full-year 2021. On a standalone AT&T<sup>\*</sup> comparative basis, adjusted earnings per diluted common share was $2.41 for 2021.

**Cash from operating activities** from continuing operations was $35.8 billion, down from $37.2 billion in the prior year due to inclusion of U.S. Video in 2021. **Capital expenditures** from continuing operations were $19.6 billion for the full year, versus $15.5 billion for full-year 2021. **Capital investment**<sup>\*</sup> from continuing operations, which includes $4.7 billion of cash payments for vendor financing, totaled $24.3 billion.

**Free cash flow**<sup>\*</sup> from continuing operations was $14.1 billion for the full year. **Total debt** was $135.9 billion at the end of the fourth quarter, and **net debt**<sup>\*</sup> was $132.2 billion.

**Communications Operational Highlights** 

Fourth-quarter **revenues** were $30.4 billion, up 0.5% year over year due to increases in Mobility and Consumer Wireline, which more than offset a decline in Business Wireline. **Operating income** was $7.2 billion, up 12.7% year over year, with **operating income margin** of 23.8%, compared to 21.2% in the year-ago quarter. Operating income in the quarter reflects the lower costs associated with a third-quarter 2022 retirement benefit plan change of about $115 million, with about $50 million for Business Wireline, $40 million for Consumer Wireline and $20 million for Mobility.

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 4

------

![header4q2022a.gif](header4q2022a.gif)

**Mobility** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenues** were up 1.7% year over year to $21.5 billion due to higher service revenues. **Service revenues** were $15.4 billion, up 5.2% year over year, primarily driven by subscriber and postpaid ARPU growth. **Equipment revenues** were $6.1 billion, down 6.3% year over year, driven by lower volumes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operating expenses** were $15.5 billion, down 2.3% year over year primarily due to lower equipment costs including the absence of 3G network shutdown costs, gains from tower transactions, decreased advertising costs and lower content costs. These decreases were partially offset by higher bad debt expense, increased amortization of customer acquisition costs and the elimination of CAF II government credits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operating income** was $6.0 billion, up 13.4% year over year. **Operating income margin** was 28.1%, compared to 25.2% in the year-ago quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **EBITDA**<sup>\*</sup> was $8.1 billion, up 10.1% year over year with **EBITDA margin**<sup>\*</sup> of 37.8%, up from 34.9% a year ago. **EBITDA service margin**<sup>\*</sup> was 52.6%, up from 50.3% in the year-ago quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total wireless net adds** were 6.4 million including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 1.1 million postpaid net adds with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 656,000 postpaid phone net adds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 39,000 postpaid tablet and other branded computing device net adds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 409,000 other net adds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ (13,000) prepaid phone net adds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Postpaid churn** was 1.01% versus 1.02% in the year-ago quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Postpaid phone churn** was 0.84% versus 0.85% in the year-ago quarter*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Prepaid churn** was less than 3%, with Cricket substantially lower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Postpaid phone-only ARPU** was $55.43, up 2.5% versus the year-ago quarter, due to pricing actions, higher international roaming and a mix shift to higher-priced unlimited plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **FirstNet**<sup>®</sup> **connections** reached approximately 4.4 million across more than 24,000 agencies. FirstNet is the nationwide communications platform dedicated to public safety. The AT&T and FirstNet networks cover more than 99% of the U.S. population, and FirstNet covers more first responders than any other network in America.

**Business Wireline**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenues** were $5.6 billion, down 4.5% year over year due to lower demand for legacy voice and data services and product simplification, partly offset by growth in connectivity services. The quarter also included approximately $90 million in revenues from intellectual property sales, an increase of about $15 million year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operating expenses** were $4.8 billion, down 3.8% year over year due to ongoing operational cost efficiencies, credits associated with a retirement benefit plan change in the third quarter of 2022 and lower amortization of deferred fulfillment costs, partly offset by higher wholesale network access costs and higher depreciation expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operating income** was $801 million, down 8.6%, with **operating income margin** of 14.2% compared to 14.8% in the year-ago quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **EBITDA**<sup>\*</sup> was $2.2 billion, down 1.5% year over year with **EBITDA margin**<sup>\*</sup> of 38.3%, compared to 37.2% in the year-ago quarter. EBITDA margin for both periods includes the impacts from intellectual property sales.

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 5

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![header4q2022a.gif](header4q2022a.gif)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AT&T Business serves the largest global companies, government agencies and small businesses. More than 750,000 U.S. business buildings are lit with fiber from AT&T, enabling high-speed fiber connections to more than 3 million U.S. business customer locations. Nationwide, more than 10 million business customer locations are on or within 1,000 feet of our fiber.<sup>3</sup>

**Consumer Wireline**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenues** were $3.2 billion, up 2.2% year over year due to gains in broadband more than offsetting declines in legacy voice and data and other services. **Broadband revenues** increased 7.2% due to fiber growth of more than 31%, partly offset by non-fiber revenue declines of 12.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operating expenses** were $2.9 billion, down 3.5% year over year due to lower network and customer support costs, decreased advertising costs, credits associated with a retirement benefit plan change in the third quarter of 2022, and lower content costs, partly offset by the elimination of CAF II government credits, higher depreciation expense and higher bad debt expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operating income** was $376 million, up 86.1% year over year with **operating income margin** of 11.6%, compared to 6.4% in the year-ago quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **EBITDA**<sup>\*</sup> was $1.2 billion, up 20.5% year over year with **EBITDA margin**<sup>\*</sup> of 37.0%, up from 31.4% in the year-ago quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total broadband losses**, excluding DSL, were 43,000, reflecting **AT&T Fiber net adds** of 280,000, more than offset by losses in non-fiber services. AT&T Fiber now has the ability to serve more than 19 million customer locations and offers symmetrical, multi-gig speeds across parts of its entire footprint of more than 100 metro areas.

**Latin America - Mexico Operational Highlights**<sup>4</sup>

**Revenues** were $861 million, up 22.3% year over year primarily due to growth in both service and equipment revenues, including favorable foreign exchange impacts. **Service revenues** were $579 million, up 19.4% year over year, driven by growth in wholesale revenue and subscribers. **Equipment revenues** were $282 million, up 28.8% year over year due to higher sales.

**Operating loss** was ($79) million compared to ($117) million in the year-ago quarter. **EBITDA**<sup>\*</sup> was $85 million compared to $36 million in the year-ago quarter.

**Total wireless net adds** were 605,000, including 515,000 **prepaid net adds**, 71,000 **postpaid net adds** and 19,000 **reseller net adds**.

FirstNet and the FirstNet logo are registered trademarks and service marks of the First Responder Network Authority. All other marks are the property of their respective owners.

<sup>1</sup>With the closing of the WarnerMedia transaction in April 2022, historical financial results have been recast to present WarnerMedia and other divested businesses, including Vrio, Xandr and Playdemic, as discontinued operations. Consolidated results reflect AT&T's remaining continuing operations, which include U.S. Video and certain other dispositions in the prior year.

<sup>2</sup>**Reported Earnings per Common Share from continuing operations** is calculated using Income (Loss) from Continuing Operations, less Net Income Attributable to Noncontrolling Interest and Preferred Stock Dividends and adjustment for distributions on Mobility II preferred interests and share-based payments (in periods of net income) or adjustment of carrying value of noncontrolling interest (in periods of net loss), divided by the weighted average common shares outstanding for the period.

<sup>3</sup> The more than 3 million U.S. business customer locations are included within the 10+ million U.S. business customer locations on or within 1,000 feet of our fiber.

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 6

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<sup>4</sup>Latin America segment results have been recast to classify Vrio as a discontinued operation. Segment results consist solely of AT&T Mexico operations.

**About AT&T**

*We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.*

**Cautionary Language Concerning Forward-Looking Statements**

Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at https://investors.att.com.

**Non-GAAP Measures and Reconciliations to GAAP Measures**

Schedules and reconciliations of non-GAAP financial measures cited in this document to the most directly comparable financial measures under generally accepted accounting principles (GAAP) can be found at https://investors.att.com and in our Form 8-K dated January 25, 2023. Free cash flow, EBITDA, adjusted operating income and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies.

**Adjusted diluted EPS from continuing operations** includes adjusting items to revenues and costs that we consider non-operational in nature, including items arising from asset acquisitions or dispositions. We adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. The tax impact of adjusting items is calculated using the effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately 25%.

For **4Q22**, Adjusted EPS from continuing operations of $0.61 is Reported EPS from continuing operations of ($3.20) adjusted for $3.57 impairments, abandonments and restructuring, $0.19 actuarial loss on benefit plans, $0.04 proportionate share of intangible amortization at the DIRECTV equity method investment, $0.04 benefit-related and other costs and $0.01 impact of Accounting Standards Update (ASU) No. 2020-06, minus $0.04 benefit from tax items.

For **4Q21**, Adjusted EPS from continuing operations of $0.56 is Diluted EPS from continuing operations of $0.66 adjusted for $0.05 proportionate share of intangible amortization at the DIRECTV equity method investment, $0.01 asset impairments and $0.01 impact of ASU No. 2020-06, minus $0.11 actuarial gain on benefit plans, $0.03 benefit from tax items and $0.03 of benefit-related and other costs.

For **2022**, Adjusted EPS from continuing operations of $2.57 is Reported EPS from continuing operations of ($1.10) adjusted for $3.59 impairments, abandonments and restructuring, $0.19 benefit-related and other costs, $0.16 proportionate share of intangible amortization at the DIRECTV equity method investment, and $0.06 impact of ASU No. 2020-06, minus $0.20 actuarial gain on benefit plans and $0.13 benefit from tax items.

For **2021**, Adjusted EPS from continuing operations of $2.63 is Diluted EPS from continuing operations of $3.02 adjusted for $0.09 proportionate share of intangible amortization at the DIRECTV equity method investment, $0.03 impact of ASU No. 2020-06, and $0.02 asset impairments, minus $0.42 actuarial gain on benefit plans, $0.08 benefit from tax items and $0.03 of benefit-related and other costs.

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 7

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The company expects adjustments to 2023 reported diluted EPS to include our proportionate share of intangible amortization at the DIRECTV equity method investment in the range of $1.3 billion, a non-cash mark-to-market benefit plan gain/loss, the impact of ASU No. 2020-06 and other items. The company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. Our **projected 2023 Adjusted EPS** depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between these projected non-GAAP metrics and the reported GAAP metrics without unreasonable effort.

**Capital investment from continuing operations** is a non-GAAP financial measure that provides an additional view of cash paid for capital investment to provide a comprehensive view of cash used to invest in our networks, product developments and support systems. In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. Capital investment from continuing operations includes capital expenditures from continuing operations and cash paid for vendor financing ($0.5 billion in 4Q22, $4.7 billion in 2022). For **2023**, capital investment is expected to be about $24 billion, consistent with 2022 levels. Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the company is not able to provide a reconciliation between projected capital investment and the most comparable GAAP metrics without unreasonable effort.

**Free cash flow from continuing operations** for 4Q22 of $6.1 billion is cash from operating activities from continuing operations of $10.3 billion, plus cash distributions from DIRECTV classified as investing activities of $0.4 billion, minus capital expenditures from continuing operations of $4.2 billion and cash paid for vendor financing of $0.5 billion.

For **2022**, free cash flow from continuing operations of $14.1 billion is cash from operating activities from continuing operations of $35.8 billion, plus cash distributions from DIRECTV classified as investing activities of $2.6 billion, minus capital expenditures from continuing operations of $19.6 billion and cash paid for vendor financing of $4.7 billion.

Due to high variability and difficulty in predicting items that impact cash from operating activities, cash distributions from DIRECTV, capital expenditures and vendor financing payments, the company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.

**EBITDA** is operating income before depreciation and amortization. **EBITDA margin** is operating income before depreciation and amortization, divided by total revenues. **EBITDA service margin** is operating income before depreciation and amortization, divided by total service revenues.

**Adjusted EBITDA** is calculated by excluding from operating revenues and operating expenses certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairment, benefit-related gains and losses, employee separation and other material gains and losses.

**EBITDA** and **Adjusted EBITDA** estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected EBITDA and projected Adjusted EBITDA and the most comparable GAAP metrics without unreasonable effort.

**Standalone AT&T results** reflect the historical operating results of the company presented as continuing operations, and also excludes U.S. Video and other 2021 dispositions included in Corporate and Other. Standalone AT&T results are presented to provide 2021 full-year results that are comparable to 2022 continuing operations financial data. For the current and future quarters and 2022, standalone AT&T is the same as continuing operations. See our Form 8-K dated January 25, 2023, for further discussion and information.

**Operating Revenues of standalone AT&T** for 2021 of $118.2 billion is calculated as Operating Revenues from continuing operations of $134.0 billion less revenues of $15.8 billion from U.S. Video and other divested businesses.

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 8

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**Adjusted Operating Income of standalone AT&T** for 2021 of $22.3 billion is calculated as Adjusted Operating Income from continuing operations of $26.2 billion less $3.9 billion from U.S. Video and other divested businesses, including a comparative adjustment applied to prior periods for estimated DIRECTV-related retained costs. After the 3Q21 DIRECTV transaction, we retained incurred operations and support costs and depreciation of network infrastructure, that provides both U-verse video and broadband services to customers. Approximately 60% of these costs will be received from DIRECTV through transition service agreements and commercial arrangements.

**Standalone AT&T Adjusted diluted EPS** for 2021 of $2.41 is calculated as Adjusted EPS from continuing operations of $2.63 less $0.22 of adjustments to exclude operating income of U.S. Video (including estimated retained costs) and other dispositions, and include our estimate of equity in net income from DIRECTV investment.

**Adjusted Operating Income from continuing operations** is operating income from continuing operations adjusted for revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions. For **4Q22**, Adjusted Operating Income from continuing operations of $5.7 billion is calculated as operating income from continuing operations of ($21.1) billion plus $26.7 billion of adjustments. For **4Q21**, Adjusted Operating Income from continuing operations of $5.0 billion is calculated as operating income from continuing operations of $4.9 billion plus $0.1 billion of adjustments.

For **2022**, Adjusted Operating Income from continuing operations of $23.5 billion is calculated as Operating Income from continuing operations of ($4.6) billion plus $28.1 billion of adjustments. For **2021**, Adjusted Operating Income from continuing operations of $26.2 billion is calculated as operating income from continuing operations of $25.9 billion plus $0.3 billion of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated January 25, 2023.

**Adjusted Equity in Net Income from DIRECTV investment** of $0.7 billion for 4Q22 ($3.4 billion for 2022) is calculated as equity income from DIRECTV of $0.4 billion ($1.8 billion for 2022) reported in Equity in Net Income of Affiliates and excludes $0.4 billion ($1.5 billion for 2022) of AT&T's proportionate share of the noncash depreciation and amortization of fair value accretion from DIRECTV's revaluation of assets and purchase price allocation. Our projected 2023 adjusted equity in net income from DIRECTV investment depends on financial projections provided by DIRECTV. The company is not able to provide a reconciliation to the most comparable GAAP metric as DIRECTV's financial results are not reasonably estimable by AT&T.

**Net Debt** of $132.2 billion at December 31, 2022 is calculated as Total Debt of $135.9 billion less Cash and Cash Equivalents of $3.7 billion).

**For more information, contact:**

Fletcher Cook

AT&T Inc.

Phone: (214) 912-8541

Email: fletcher.cook@att.com

Brittany Siwald

AT&T Inc.

Phone: (214) 202-6630

Email: brittany.a.siwald@att.com

\* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at https://investors.att.com.

<br>© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.................Page 9

## Exhibit 99.2

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **AT&T Inc.** | | | | | | |
| **Financial Data** | | | | | | |
| **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** | **Consolidated Statements of Income** |
| *Dollars in millions except per share amounts* |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Year Ended | Year Ended | Percent |
|  | **2022** | 2021 | Change | **2022** | 2021 | Change |
| **Operating Revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service | $**24833** | $24225 | 2.5% | $**97831** | $111565 | (12.3)% |
| &nbsp;&nbsp;&nbsp;Equipment | **6510** | 6870 | (5.2)% | **22910** | 22473 | 1.9% |
| &nbsp;&nbsp;&nbsp;**Total Operating Revenues** | **31343** | 31095 | 0.8% | **120741** | 134038 | (9.9)% |
| **Operating Expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment | **6999** | 7443 | (6.0)% | **24009** | 23685 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Broadcast, programming and operations | **—** |  | —% | **—** | 8106 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other cost of revenues (exclusive of<br>depreciation and amortization shown<br>separately below) | **6572** | 6782 | (3.1)% | **26839** | 28616 | (6.2)% |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | **7516** | 7368 | 2.0% | **28961** | 29669 | (2.4)% |
| &nbsp;&nbsp;&nbsp;Asset impairments and abandonments<br> and restructuring | **26753** | 108 | —% | **27498** | 213 | —% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **4595** | 4500 | 2.1% | **18021** | 17852 | 0.9% |
| &nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **52435** | 26201 | —% | **125328** | 108141 | 15.9% |
| **Operating Income (Loss)** | **(21092)** | 4894 | —% | **(4587)** | 25897 | —% |
| **Interest Expense** | **1560** | 1626 | (4.1)% | **6108** | 6716 | (9.1)% |
| **Equity in Net Income of Affiliates** | **374** | 444 | (15.8)% | **1791** | 603 | —% |
| **Other Income (Expense) — Net** | **(919)** | 2429 | —% | **5810** | 9387 | (38.1)% |
| **Income (Loss) from Continuing Operations<br> Before Income Taxes** | **(23197)** | 6141 | —% | **(3094)** | 29171 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) on continuing<br> operations | **(77)** | 939 | —% | **3780** | 5395 | (29.9)% |
| **Income (Loss) From Continuing Operations** | **(23120)** | 5202 | —% | **(6874)** | 23776 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from discontinued<br> operations, net of tax | **(35)** | 188 | —% | **(181)** | (2297) | 92.1% |
| **Net Income (Loss)** | **(23155)** | 5390 | —% | **(7055)** | 21479 | —% |
| **Less: Net Income Attributable to<br> Noncontrolling Interest** | **(362)** | (347) | (4.3)% | **(1469)** | (1398) | (5.1)% |
| **Net Income (Loss) Attributable to AT&T** | $**(23517)** | $5043 | —% | $**(8524)** | $20081 | —% |
| **Less: Preferred Stock Dividends** | **(54)** | (51) | (5.9)% | **(203)** | (207) | 1.9% |
| **Net Income (Loss) Attributable to Common Stock** | $**(23571)** | $4992 | —% | $**(8727)** | $19874 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Basic Earnings (Loss) Per Share Attributable to** <br>**Common Stock** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From continuing operations | $**(3.20)** | $0.67 | —% | $**(1.10)** | $3.07 | —% |
| &nbsp;&nbsp;&nbsp;From discontinued operations | $**—** | $0.02 | —% | $**(0.03)** | $(0.30) | 90.0% |
|  | $**(3.20)** | $0.69 | —% | $**(1.13)** | $2.77 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Common Shares <br>Outstanding (000000) | **7157** | 7172 | (0.2)% | **7166** | 7168 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Diluted Earnings (Loss) Per Share Attributable to** <br>**Common Stock** <sup>1</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From continuing operations | $**(3.20)** | $0.66 | —% | $**(1.10)** | $3.02 | —% |
| &nbsp;&nbsp;&nbsp;From discontinued operations | $**—** | $0.02 | —% | $**(0.03)** | $(0.29) | 89.7% |
|  | $**(3.20)** | $0.68 | —% | $**(1.13)** | $2.73 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Common Shares <br>Outstanding with Dilution (000000) <sup>1</sup> | **7533** | 7541 | (0.1)% | **7587** | 7503 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 |

---

------

---

| | | |
|:---|:---|:---|
| **AT&T Inc.** | | |
| **Financial Data** | | |
| **Consolidated Balance Sheets** | **Consolidated Balance Sheets** | **Consolidated Balance Sheets** |
| *Dollars in millions* |  |  |
| *Unaudited* | **Dec. 31,** | Dec. 31, |
|  | **2022** | 2021 |
| **Assets** |  |  |
| **Current Assets** |  |  |
| Cash and cash equivalents | $**3701** | $19223 |
| Accounts receivable – net of related allowance for credit loss of $588 and $658 | **11466** | 12313 |
| Inventories | **3123** | 3325 |
| Prepaid and other current assets | **14818** | 16131 |
| Assets from discontinued operations | **—** | 119776 |
| Total current assets | **33108** | 170768 |
| **Property, Plant and Equipment – Net** | **127445** | 121649 |
| **Goodwill – Net** | **67895** | 92740 |
| **Licenses – Net** | **124092** | 113830 |
| **Other Intangible Assets – Net** | **5354** | 5391 |
| **Investments in and Advances to Equity Affiliates** | **3533** | 6168 |
| **Operating Lease Right-Of-Use Assets** | **21814** | 21824 |
| **Other Assets** | **19612** | 19252 |
| **Total Assets** | $**402853** | $551622 |
| **Liabilities and Stockholders' Equity** |  |  |
| **Current Liabilities** |  |  |
| Debt maturing within one year | $**7467** | $24620 |
| Note payable to DIRECTV | **130** | 1245 |
| Accounts payable and accrued liabilities | **42644** | 39095 |
| Advanced billings and customer deposits | **3918** | 3966 |
| Dividends payable | **2014** | 3749 |
| Liabilities from discontinued operations | **—** | 33555 |
| Total current liabilities | **56173** | 106230 |
| **Long-Term Debt** | **128423** | 151011 |
| **Deferred Credits and Other Noncurrent Liabilities** |  |  |
| Deferred income taxes | **57032** | 53767 |
| Postemployment benefit obligation | **7260** | 12560 |
| Operating lease liabilities | **18659** | 18956 |
| Other noncurrent liabilities | **28849** | 25243 |
| Total deferred credits and other noncurrent liabilities | **111800** | 110526 |
| **Stockholders' Equity** |  |  |
| Preferred stock | **—** |  |
| Common stock | **7621** | 7621 |
| Additional paid-in capital | **123610** | 130112 |
| Retained (deficit) earnings | **(19415)** | 42350 |
| Treasury stock | **(17082)** | (17280) |
| Accumulated other comprehensive income | **2766** | 3529 |
| Noncontrolling interest | **8957** | 17523 |
| Total stockholders' equity | **106457** | 183855 |
| **Total Liabilities and Stockholders' Equity** | $**402853** | $551622 |

---

------

---

| | | |
|:---|:---|:---|
| **AT&T Inc.** | | |
| **Financial Data** | | |
| **Consolidated Statements of Cash Flows** | **Consolidated Statements of Cash Flows** | **Consolidated Statements of Cash Flows** |
| *Dollars in millions* |  |  |
| *Unaudited* | Year Ended | Year Ended |
|  | **2022** | 2021 |
| **Operating Activities** |  |  |
| Income (loss) from continuing operations | $**(6874)** | $23776 |
| Adjustments to reconcile income (loss) from continuing operations to net cash provided by<br>&nbsp;&nbsp;&nbsp;&nbsp;operating activities from continuing operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **18021** | 17852 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for uncollectible accounts | **1865** | 1241 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense | **2975** | 7412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (gain) loss on investments, net of impairments | **381** | (369) |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and postretirement benefit expense (credit) | **(3237)** | (3857) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial (gain) loss on pension and postretirement benefits | **(1999)** | (4143) |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairments and abandonments and restructuring | **27498** | 213 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables | **727** | (1125) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **(674)** | (1288) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | **(1109)** | (1570) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment installment receivables and related sales | **154** | (271) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred customer contract acquisition and fulfillment costs | **(947)** | 18 |
| Postretirement claims and contributions | **(823)** | (822) |
| Other - net | **(146)** | 103 |
| Total adjustments | **42686** | 13394 |
| Net Cash Provided by Operating Activities from Continuing Operations | **35812** | 37170 |
| **Investing Activities** |  |  |
| Capital expenditures | **(19626)** | (15545) |
| Acquisitions, net of cash acquired | **(10200)** | (25453) |
| Dispositions | **199** | 7136 |
| Distributions from DIRECTV in excess of cumulative equity in earnings | **2649** | 1323 |
| Other - net | **79** | 50 |
| Net Cash Used in Investing Activities from Continuing Operations | **(26899)** | (32489) |
| **Financing Activities** |  |  |
| Net change in short-term borrowings with original maturities of three months or less | **(519)** | 1316 |
| Issuance of other short-term borrowings | **3955** | 21856 |
| Repayment of other short-term borrowings | **(18345)** | (7510) |
| Issuance of long-term debt | **2979** | 9931 |
| Repayment of long-term debt | **(25118)** | (3039) |
| Note payable to DIRECTV, net of payments | **(1211)** | 1341 |
| Payment of vendor financing | **(4697)** | (4596) |
| Purchase of treasury stock | **(890)** | (202) |
| Issuance of treasury stock | **28** | 96 |
| Redemption of preferred interest in subsidiaries | **(2665)** |  |
| Dividends paid | **(9859)** | (15068) |
| Other - net | **(3222)** | (2231) |
| Net Cash (Used in) Provided by Financing Activities from Continuing Operations | **(59564)** | 1894 |
| Net (decrease) increase in cash and cash equivalents and restricted cash from<br>&nbsp;&nbsp;&nbsp;&nbsp;continuing operations | **(50651)** | 6575 |
| **Cash flows from Discontinued Operations:** |  |  |
| Cash (used in) provided by operating activities | **(3789)** | 4788 |
| Cash provided by (used in) investing activities | **1094** | 399 |
| Cash provided by (used in) financing activities | **35823** | (316) |
| Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations | **33128** | 4871 |
| **Net (decrease) increase in cash and cash equivalents and restricted cash** | $**(17523)** | $11446 |
| Cash and cash equivalents and restricted cash beginning of year | **21316** | 9870 |
| **Cash and Cash Equivalents and Restricted Cash End of Year** | $**3793** | $21316 |

---

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **AT&T Inc.** | **AT&T Inc.** | **AT&T Inc.** | **AT&T Inc.** | | | | |
| **Consolidated Supplementary Data** | **Consolidated Supplementary Data** | **Consolidated Supplementary Data** | **Consolidated Supplementary Data** | | | | |
| **Supplementary Financial Data** | **Supplementary Financial Data** | **Supplementary Financial Data** | **Supplementary Financial Data** | **Supplementary Financial Data** | **Supplementary Financial Data** | **Supplementary Financial Data** | **Supplementary Financial Data** |
| *Dollars in millions except per share amounts* |  |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | **2022** | 2021 | Change | Change |
| Capital expenditures |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | $**4179** | $3453 | 21.0% | $**19452** | $15372 | 26.5 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest during construction | **50** | 41 | 22.0% | **174** | 173 | 0.6 | % |
| Total Capital Expenditures | $**4229** | $3494 | 21.0% | $**19626** | $15545 | 26.3 | % |
| Acquisitions, net of cash acquired |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions | $**—** | $— | —% | $**—** | $— |  | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spectrum acquisitions | **4** | 1655 | —% | **9080** | 24672 | (63.2) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest during construction - spectrum | **237** | 265 | (10.6)% | **1120** | 781 | 43.4 | % |
| Total Acquisitions | $**241** | $1920 | (87.4)% | $**10200** | $25453 | (59.9) | % |
| Cash paid for interest - continuing operations | $**1791** | $1554 | 15.3% | $**7772** | $7485 | 3.8 | % |
| Cash paid for income taxes, net of refunds - <br>&nbsp;&nbsp;&nbsp;&nbsp;continuing operations<sup>1</sup> | $**192** | $36 | —% | $**592** | $251 |  | % |
| Dividends Declared per Common Share | $**0.2775** | $0.52 | (46.6)% | $**1.11** | $2.08 | (46.6) | % |
| End of Period Common Shares Outstanding (000000) |  |  |  | **7128** | 7141 | (0.2) | % |
| Debt Ratio |  |  |  | **56.1%** | 48.9% | 720 | BP |
| Total Employees |  |  |  | **162920** | 172880 | (5.8) | % |
| <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  | <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  | <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  | <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  | <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  | <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  | <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  | <sup>1</sup> Total cash income taxes paid, net of refunds, by AT&T for the quarters ended December 31, 2022 and 2021 were $192 and $162, and $696 and $700 for the years ended December 31, 2022 and 2021.  |

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**<u>COMMUNICATIONS SEGMENT</u>**

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 refine the allocation of shared infrastructure costs between the Communications segment and Corporate and Other.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** |
| *Dollars in millions* |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Year Ended | Year Ended | Percent |
|  | **2022** | 2021 | Change | **2022** | 2021 | Change |
| **Segment Operating Revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;Mobility | $**21501** | $21146 | 1.7% | $**81780** | $78254 | 4.5% |
| &nbsp;&nbsp;Business Wireline | **5635** | 5901 | (4.5)% | **22538** | 23937 | (5.8)% |
| &nbsp;&nbsp;Consumer Wireline | **3229** | 3159 | 2.2% | **12749** | 12539 | 1.7% |
| Total Segment Operating Revenues | **30365** | 30206 | 0.5% | **117067** | 114730 | 2.0% |
| **Segment Operating Income** |  |  |  |  |  |  |
| &nbsp;&nbsp;Mobility | **6044** | 5332 | 13.4% | **24528** | 23370 | 5.0% |
| &nbsp;&nbsp;Business Wireline | **801** | 876 | (8.6)% | **3252** | 4027 | (19.2)% |
| &nbsp;&nbsp;Consumer Wireline | **376** | 202 | 86.1% | **1327** | 996 | 33.2% |
| Total Segment Operating Income | $**7221** | $6410 | 12.7% | $**29107** | $28393 | 2.5% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** |
| *Subscribers and connections in thousands* |  |  |  |  |  |  |
| *Unaudited* |  |  |  | December 31, | December 31, | Percent |
|  |  |  |  | **2022** | 2021 | Change |
| **Broadband Connections** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Broadband |  |  |  | **15075** | 15074 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;DSL |  |  |  | **311** | 430 | (27.7)% |
| Total Broadband Connections |  |  |  | **15386** | 15504 | (0.8)% |
| **Voice Connections** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail Consumer Switched Access Lines |  |  |  | **5213** | 6177 | (15.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;U-verse Consumer VoIP Connections |  |  |  | **2930** | 3333 | (12.1)% |
| Total Retail Consumer Voice Connections |  |  |  | **8143** | 9510 | (14.4)% |
|  | Fourth Quarter | Fourth Quarter | Percent | Year Ended | Year Ended | Percent |
|  | **2022** | 2021 | Change | **2022** | 2021 | Change |
| **Broadband Net Additions** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Broadband | **(37)** | 24 | —% | **1** | 256 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;DSL | **(29)** | (30) | 3.3% | **(119)** | (136) | 12.5% |
| Total Broadband Net Additions | **(66)** | (6) | —% | **(118)** | 120 | —% |

---

------

**<u>Mobility</u>**

Mobility provides nationwide wireless service and equipment.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Mobility Results** | **Mobility Results** | **Mobility Results** | **Mobility Results** | **Mobility Results** | **Mobility Results** | **Mobility Results** | **Mobility Results** | **Mobility Results** |
| *Dollars in millions* |  |  |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Operating Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | $**15434** | $14669 | 5.2 | % | $**60499** | $57590 | 5.1 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment | **6067** | 6477 | (6.3) | % | **21281** | 20664 | 3.0 | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Revenues** | **21501** | 21146 | 1.7 | % | **81780** | 78254 | 4.5 | % |
| **Operating Expenses** |  |  |  |  |  |  |  |  |
| Operations and support | **13377** | 13764 | (2.8) | % | **49054** | 46762 | 4.9 | % |
| Depreciation and amortization | **2080** | 2050 | 1.5 | % | **8198** | 8122 | 0.9 | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **15457** | 15814 | (2.3) | % | **57252** | 54884 | 4.3 | % |
| **Operating Income** | $**6044** | $5332 | 13.4 | % | $**24528** | $23370 | 5.0 | % |
| **Operating Income Margin** | **28.1%** | 25.2% | 290 | BP | **30.0%** | 29.9% | 10 | BP |
| **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** |
| *Subscribers and connections in thousands* |  |  |  |  |  |  |  |  |
| *Unaudited* |  |  |  |  | December 31, | December 31, | Percent | Percent |
|  |  |  |  |  | **2022** | 2021 | Change | Change |
| **Mobility Subscribers** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Postpaid |  |  |  |  | **84700** | 81534 | 3.9 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Postpaid phone |  |  |  |  | **69596** | 67260 | 3.5 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid |  |  |  |  | **19176** | 19028 | 0.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Reseller |  |  |  |  | **6043** | 6113 | (1.1) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Connected Devices |  |  |  |  | **107478** | 95116 | 13.0 | % |
| Total Mobility Subscribers<sup>1</sup> |  |  |  |  | **217397** | 201791 | 7.7 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Wireless subscribers at December 31, 2022 excludes the impact of 10,537 subscriber and connected device disconnections resulting from our 3G network shutdown in February 2022. Postpaid disconnections were 897, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,657 connected devices. The fourth quarter includes an adjustment of 360 subscribers, primarily connected devices. |
|  | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Mobility Net Additions** |  |  |  |  |  |  |  |  |
| Postpaid Phone Net Additions | **656** | 884 | (25.8) | % | **2868** | 3196 | (10.3) | % |
| Total Phone Net Additions | **643** | 908 | (29.2) | % | **3272** | 3850 | (15.0) | % |
| &nbsp;&nbsp;Postpaid | **1104** | 1285 | (14.1) | % | **4091** | 4482 | (8.7) | % |
| &nbsp;&nbsp;Prepaid | **(9)** | 29 |  | % | **479** | 956 | (49.9) | % |
| &nbsp;&nbsp;Reseller | **150** | (177) |  | % | **462** | (534) |  | % |
| &nbsp;&nbsp;Connected Devices | **5118** | 4134 | 23.8 | % | **20594** | 14328 | 43.7 | % |
| Total Mobility Net Additions | **6363** | 5271 | 20.7 | % | **25626** | 19232 | 33.2 | % |
| Postpaid Churn | **1.01%** | 1.02% | (1) | BP | **0.97%** | 0.94% | 3 BP | 3 BP |
| Postpaid Phone-Only Churn | **0.84%** | 0.85% | (1) | BP | **0.81%** | 0.76% | 5 BP | 5 BP |

---

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**<u>Business Wireline</u>**

Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional serivices as well as traditional data services and related equipment to business customers.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Business Wireline Results** | **Business Wireline Results** | **Business Wireline Results** | **Business Wireline Results** | **Business Wireline Results** | **Business Wireline Results** | **Business Wireline Results** | **Business Wireline Results** | **Business Wireline Results** |
| *Dollars in millions* |  |  |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Operating Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | $**5473** | $5727 | (4.4) | % | $**21891** | $23224 | (5.7) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment | **162** | 174 | (6.9) | % | **647** | 713 | (9.3) | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Revenues** | **5635** | 5901 | (4.5) | % | **22538** | 23937 | (5.8) | % |
| **Operating Expenses** |  |  |  |  |  |  |  |  |
| Operations and support | **3474** | 3708 | (6.3) | % | **13972** | 14718 | (5.1) | % |
| Depreciation and amortization | **1360** | 1317 | 3.3 | % | **5314** | 5192 | 2.3 | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **4834** | 5025 | (3.8) | % | **19286** | 19910 | (3.1) | % |
| **Operating Income** | $**801** | $876 | (8.6) | % | $**3252** | $4027 | (19.2) | % |
| **Operating Income Margin** | **14.2%** | 14.8% | (60) | BP | **14.4%** | 16.8% | (240) | BP |

---

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**<u>Consumer Wireline</u>**

Consumer Wireline provides internet, including fiber connections that provide multi-gig services to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Consumer Wireline Results** | **Consumer Wireline Results** | **Consumer Wireline Results** | **Consumer Wireline Results** | **Consumer Wireline Results** | **Consumer Wireline Results** | **Consumer Wireline Results** | **Consumer Wireline Results** | **Consumer Wireline Results** |
| *Dollars in millions* |  |  |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Operating Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broadband | $**2492** | $2324 | 7.2 | % | $**9669** | $9085 | 6.4 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legacy voice and data services | **414** | 470 | (11.9) | % | **1746** | 1977 | (11.7) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other service and equipment | **323** | 365 | (11.5) | % | **1334** | 1477 | (9.7) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Operating Revenues** | **3229** | 3159 | 2.2 | % | **12749** | 12539 | 1.7 | % |
| **Operating Expenses** |  |  |  |  |  |  |  |  |
| Operations and support | **2035** | 2168 | (6.1) | % | **8253** | 8448 | (2.3) | % |
| Depreciation and amortization | **818** | 789 | 3.7 | % | **3169** | 3095 | 2.4 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **2853** | 2957 | (3.5) | % | **11422** | 11543 | (1.0) | % |
| **Operating Income** | $**376** | $202 | 86.1 | % | $**1327** | $996 | 33.2 | % |
| **Operating Income Margin** | **11.6%** | 6.4% | 520 | BP | **10.4%** | 7.9% | 250 | BP |
| **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** |
| *Subscribers and connections in thousands* |  |  |  |  |  |  |  |  |
| *Unaudited* |  |  |  |  | December 31, | December 31, | Percent | Percent |
|  |  |  |  |  | **2022** | 2021 | Change | Change |
| **Broadband Connections** |  |  |  |  |  |  |  |  |
| Total Broadband and DSL Connections |  |  |  |  | **13991** | 14160 | (1.2) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Broadband |  |  |  |  | **13753** | 13845 | (0.7) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Fiber Broadband Connections |  |  |  |  | **7215** | 5992 | 20.4 | % |
| **Voice Connections** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail Consumer Switched Access Lines |  |  |  |  | **2028** | 2423 | (16.3) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;U-verse Consumer VoIP Connections |  |  |  |  | **2311** | 2736 | (15.5) | % |
| Total Retail Consumer Voice Connections |  |  |  |  | **4339** | 5159 | (15.9) | % |
|  | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Broadband Net Additions** |  |  |  |  |  |  |  |  |
| Total Broadband and DSL Net Additions | **(64)** | (20) |  | % | **(169)** | 60 |  | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Broadband Net Additions | **(43)** | (1) |  | % | **(92)** | 152 |  | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Fiber Broadband Net Additions | **280** | 271 | 3.3 | % | **1223** | 1041 | 17.5 | % |

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**<u>Business Solutions</u>**

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.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Business Solutions Results** | **Business Solutions Results** | **Business Solutions Results** | **Business Solutions Results** | **Business Solutions Results** | **Business Solutions Results** | **Business Solutions Results** | **Business Solutions Results** | **Business Solutions Results** |
| *Dollars in millions* |  |  |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Operating Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless service | $**2258** | $2108 | 7.1 | % | $**8789** | $8161 | 7.7 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireline service | **5473** | 5727 | (4.4) | % | **21891** | 23224 | (5.7) | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless equipment | **937** | 1030 | (9.0) | % | **3569** | 3414 | 4.5 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireline equipment | **162** | 174 | (6.9) | % | **647** | 713 | (9.3) | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Revenues** | **8830** | 9039 | (2.3) | % | **34896** | 35512 | (1.7) | % |
| **Operating Expenses** |  |  |  |  |  |  |  |  |
| Operations and support | **5656** | 6035 | (6.3) | % | **22479** | 22778 | (1.3) | % |
| Depreciation and amortization | **1724** | 1667 | 3.4 | % | **6749** | 6570 | 2.7 | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **7380** | 7702 | (4.2) | % | **29228** | 29348 | (0.4) | % |
| **Operating Income** | $**1450** | $1337 | 8.5 | % | $**5668** | $6164 | (8.0) | % |
| **Operating Income Margin** | **16.4%** | 14.8% | 160 | BP | **16.2%** | 17.4% | (120) | BP |

---

------

**<u>LATIN AMERICA SEGMENT</u>**

The segment provides wireless services and equipment to customers in Mexico.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** | **Segment Results** |
| *Dollars in millions* |  |  |  |  |  |  |  |  |
| *Unaudited* | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Operating Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless service | $**579** | $485 | 19.4 | % | $**2162** | $1834 | 17.9 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless equipment | **282** | 219 | 28.8 | % | **982** | 913 | 7.6 | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Revenues** | **861** | 704 | 22.3 | % | **3144** | 2747 | 14.5 | % |
| **Operating Expenses** |  |  |  |  |  |  |  |  |
| Operations and support | **776** | 668 | 16.2 | % | **2812** | 2652 | 6.0 | % |
| Depreciation and amortization | **164** | 153 | 7.2 | % | **658** | 605 | 8.8 | % |
| &nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **940** | 821 | 14.5 | % | **3470** | 3257 | 6.5 | % |
| **Operating Income (Loss)** | $**(79)** | $(117) | 32.5 | % | $**(326)** | $(510) | 36.1 | % |
| **Operating Income Margin** | **(9.2) %** | (16.6)% | 740 | BP | **(10.4)%** | (18.6)% | 820 | BP |
| **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** | **Supplementary Operating Data** |
| *Subscribers and connections in thousands* |  |  |  |  |  |  |  |  |
| *Unaudited* |  |  |  |  | December 31, | December 31, | Percent | Percent |
|  |  |  |  |  | **2022** | 2021 | Change | Change |
| **Mexico Wireless Subscribers** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Postpaid |  |  |  |  | **4925** | 4807 | 2.5 | % |
| &nbsp;&nbsp;&nbsp;Prepaid |  |  |  |  | **16204** | 15057 | 7.6 | % |
| &nbsp;&nbsp;&nbsp;Reseller |  |  |  |  | **474** | 498 | (4.8) | % |
| Total Mexico Wireless Subscribers |  |  |  |  | **21603** | 20362 | 6.1 | % |
|  | Fourth Quarter | Fourth Quarter | Percent | Percent | Year Ended | Year Ended | Percent | Percent |
|  | **2022** | 2021 | Change | Change | **2022** | 2021 | Change | Change |
| **Mexico Wireless Net Additions** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Postpaid | **71** | 26 |  | % | **118** | 111 | 6.3 | % |
| &nbsp;&nbsp;&nbsp;Prepaid | **515** | 858 | (40.0) | % | **1147** | 1299 | (11.7) | % |
| &nbsp;&nbsp;&nbsp;Reseller | **19** | 5 |  | % | **(24)** | 9 |  | % |
| Total Mexico Wireless Net Additions | **605** | 889 | (31.9) | % | **1241** | 1419 | (12.5) | % |

---

------

**<u>SUPPLEMENTAL SEGMENT RECONCILIATION</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| *Dollars in millions* |  |  |  |  |  |
| *Unaudited* |  |  |  |  |  |
| ***December 31, 2022*** |  |  |  |  |  |
|  | Revenues | Operations<br>and Support<br>Expenses | EBITDA | Depreciation<br>and<br>Amortization | Operating<br>Income (Loss) |
| **Communications** |  |  |  |  |  |
| &nbsp;&nbsp;Mobility | $**21501** | $**13377** | $**8124** | $**2080** | $**6044** |
| &nbsp;&nbsp;Business Wireline | **5635** | **3474** | **2161** | **1360** | **801** |
| &nbsp;&nbsp;Consumer Wireline | **3229** | **2035** | **1194** | **818** | **376** |
| Total Communications | **30365** | **18886** | **11479** | **4258** | **7221** |
| **Latin America - Mexico** | **861** | **776** | **85** | **164** | **(79)** |
| Segment Total | **31226** | **19662** | **11564** | **4422** | **7142** |
| Corporate and Other |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTV-related retained costs | **—** | **205** | **(205)** | **141** | **(346)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent administration support | **(8)** | **326** | **(334)** | **4** | **(338)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securitization fees | **17** | **156** | **(139)** | **—** | **(139)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value portfolio | **108** | **33** | **75** | **12** | **63** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Corporate | **117** | **720** | **(603)** | **157** | **(760)** |
| &nbsp;&nbsp;Reclassification of prior service credits | **—** | **730** | **(730)** | **—** | **(730)** |
| Merger & Significant Items | **—** | **26728** | **(26728)** | **16** | **(26744)** |
| Total Corporate and Other | **117** | **28178** | **(28061)** | **173** | **(28234)** |
| AT&T Inc. | $**31343** | $**47840** | $**(16497)** | $**4595** | $**(21092)** |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| *Dollars in millions* |  |  |  |  |  |
| *Unaudited* |  |  |  |  |  |
| *December 31, 2021* |  |  |  |  |  |
|  | Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) |
| **Communications** |  |  |  |  |  |
| &nbsp;&nbsp;Mobility | $21146 | $13764 | $7382 | $2050 | $5332 |
| &nbsp;&nbsp;Business Wireline | 5901 | 3708 | 2193 | 1317 | 876 |
| &nbsp;&nbsp;Consumer Wireline | 3159 | 2168 | 991 | 789 | 202 |
| Total Communications | 30206 | 19640 | 10566 | 4156 | 6410 |
| **Latin America - Mexico** | 704 | 668 | 36 | 153 | (117) |
| Segment Total | 30910 | 20308 | 10602 | 4309 | 6293 |
| Corporate and Other |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTV-related retained costs | 29 | 174 | (145) | 144 | (289) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent administration support | (6) | 376 | (382) | 9 | (391) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securitization fees | 17 | 36 | (19) |  | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value portfolio | 145 | 47 | 98 | 10 | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Corporate | 185 | 633 | (448) | 163 | (611) |
| &nbsp;&nbsp;Held-for-sale and other reclassifications |  | 4 | (4) |  | (4) |
| &nbsp;&nbsp;Reclassification of prior service credits |  | 669 | (669) |  | (669) |
| Merger & Significant Items |  | 87 | (87) | 28 | (115) |
| Total Corporate and Other | 185 | 1393 | (1208) | 191 | (1399) |
| AT&T Inc. | $31095 | $21701 | $9394 | $4500 | $4894 |

---

------

**<u>SUPPLEMENTAL SEGMENT RECONCILIATION</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
| *Dollars in millions* |  |  |  |  |  |
| *Unaudited* |  |  |  |  |  |
| ***December 31, 2022*** |  |  |  |  |  |
|  | Revenues | Operations<br>and Support<br>Expenses | EBITDA | Depreciation<br>and<br>Amortization | Operating<br>Income (Loss) |
| **Communications** |  |  |  |  |  |
| &nbsp;&nbsp;Mobility | $**81780** | $**49054** | $**32726** | $**8198** | $**24528** |
| &nbsp;&nbsp;Business Wireline | **22538** | **13972** | **8566** | **5314** | **3252** |
| &nbsp;&nbsp;Consumer Wireline | **12749** | **8253** | **4496** | **3169** | **1327** |
| Total Communications | **117067** | **71279** | **45788** | **16681** | **29107** |
| **Latin America - Mexico** | **3144** | **2812** | **332** | **658** | **(326)** |
| Segment Total | **120211** | **74091** | **46120** | **17339** | **28781** |
| Corporate and Other |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTV-related retained costs | **8** | **737** | **(729)** | **549** | **(1278)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent administration support | **(32)** | **1199** | **(1231)** | **16** | **(1247)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securitization fees | **65** | **419** | **(354)** | **—** | **(354)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value portfolio | **489** | **139** | **350** | **41** | **309** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Corporate | **530** | **2494** | **(1964)** | **606** | **(2570)** |
| &nbsp;&nbsp;Reclassification of prior service credits | **—** | **2691** | **(2691)** | **—** | **(2691)** |
| &nbsp;&nbsp;Merger & Significant Items | **—** | **28031** | **(28031)** | **76** | **(28107)** |
| Total Corporate and Other | **530** | **33216** | **(32686)** | **682** | **(33368)** |
| AT&T Inc. | $**120741** | $**107307** | $**13434** | $**18021** | $**(4587)** |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
| *Dollars in millions* |  |  |  |  |  |
| *Unaudited* |  |  |  |  |  |
| *December 31, 2021* |  |  |  |  |  |
|  | Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) |
| **Communications** |  |  |  |  |  |
| &nbsp;&nbsp;Mobility | $78254 | $46762 | $31492 | $8122 | $23370 |
| &nbsp;&nbsp;Business Wireline | 23937 | 14718 | 9219 | 5192 | 4027 |
| &nbsp;&nbsp;Consumer Wireline | 12539 | 8448 | 4091 | 3095 | 996 |
| Total Communications | 114730 | 69928 | 44802 | 16409 | 28393 |
| **Latin America - Mexico** | 2747 | 2652 | 95 | 605 | (510) |
| Segment Total | 117477 | 72580 | 44897 | 17014 | 27883 |
| Corporate and Other |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTV-related retained costs | 49 | 243 | (194) | 236 | (430) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent administration support | (18) | 1523 | (1541) | 36 | (1577) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securitization fees | 61 | 89 | (28) |  | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value portfolio | 639 | 208 | 431 | 40 | 391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Corporate | 731 | 2063 | (1332) | 312 | (1644) |
| &nbsp;&nbsp;Video | 15513 | 12666 | 2847 | 356 | 2491 |
| &nbsp;&nbsp;Held-for-sale and other reclassifications | 453 | 310 | 143 |  | 143 |
| &nbsp;&nbsp;Reclassification of prior service credits |  | 2680 | (2680) |  | (2680) |
| &nbsp;&nbsp;Merger & Significant Items |  | 126 | (126) | 170 | (296) |
| Eliminations and consolidations | (136) | (136) |  |  |  |
| Total Corporate and Other | 16561 | 17709 | (1148) | 838 | (1986) |
| AT&T Inc. | $134038 | $90289 | $43749 | $17852 | $25897 |

---

## Exhibit 99.3

**Discussion and Reconciliation of Non-GAAP Measures for Continuing Operations**

We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP).

On April 8, 2022, we completed the previously announced separation of our WarnerMedia business. With the separation and distribution, the WarnerMedia business met the criteria for discontinued operations. For discontinued operations, we evaluated transactions that were components of AT&T's single plan of a strategic shift, including dispositions that may not have individually met the criteria due to materiality, and have determined discontinued operations to be comprised of WarnerMedia, Vrio, Xandr and Playdemic Ltd. (Playdemic). These businesses are reflected in our historical financial statements as discontinued operations, including for periods prior to the consummation of the WarnerMedia/Discovery transaction. The information below refers only to our continuing operations and does not include discussion of balances or activity of WarnerMedia, Vrio, Xandr and Playdemic.

**<u>Free Cash Flow</u>**

Free cash flow is defined as cash from operations and cash distributions from DIRECTV (classified as investing activities) minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations and cash distributions from DIRECTV, minus capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and from our continued economic interest in the U.S. video operations as part of our DIRECTV equity method investment, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Free Cash Flow and Free Cash Flow Dividend Payout Ratio** | **Free Cash Flow and Free Cash Flow Dividend Payout Ratio** | **Free Cash Flow and Free Cash Flow Dividend Payout Ratio** | **Free Cash Flow and Free Cash Flow Dividend Payout Ratio** | **Free Cash Flow and Free Cash Flow Dividend Payout Ratio** |
| *Dollars in millions* |  |  |  |  |
|  | Fourth Quarter | Fourth Quarter | Year Ended | Year Ended |
|  | **2022** | 2021 | **2022** | 2021 |
| Net cash provided by operating activities from continuing operations<sup>1</sup> | $**10348** | $8077 | $**35812** | $37170 |
| Add: Distributions from DIRECTV classified as investing<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; activities | **444** | 1323 | **2649** | 1323 |
| Less: Capital expenditures | **(4229)** | (3494) | **(19626)** | (15545) |
| Less: Cash paid for vendor financing | **(460)** | (583) | **(4697)** | (4596) |
| **Free Cash Flow**<sup>2</sup> | **6103** | 5323 | **14138** | 18352 |
| Less: Dividends paid | **(2014)** | (3749) | **(9859)** | (15068) |
| Free Cash Flow after Dividends | $**4089** | $1574 | $**4279** | $3284 |
| **Free Cash Flow Dividend Payout Ratio** | **33.0%** | 70.4% | **69.7%** | 82.1% |
| &nbsp;&nbsp;<sup>1</sup>Includes distributions from DIRECTV of $379 in the fourth quarter and $1,808 for the year ended December 31, 2022.  | &nbsp;&nbsp;<sup>1</sup>Includes distributions from DIRECTV of $379 in the fourth quarter and $1,808 for the year ended December 31, 2022.  | &nbsp;&nbsp;<sup>1</sup>Includes distributions from DIRECTV of $379 in the fourth quarter and $1,808 for the year ended December 31, 2022.  | &nbsp;&nbsp;<sup>1</sup>Includes distributions from DIRECTV of $379 in the fourth quarter and $1,808 for the year ended December 31, 2022.  | &nbsp;&nbsp;<sup>1</sup>Includes distributions from DIRECTV of $379 in the fourth quarter and $1,808 for the year ended December 31, 2022.  |
| &nbsp;&nbsp;<sup>2</sup>For Standalone free cash flow see Exhibit 99.4 | &nbsp;&nbsp;<sup>2</sup>For Standalone free cash flow see Exhibit 99.4 | &nbsp;&nbsp;<sup>2</sup>For Standalone free cash flow see Exhibit 99.4 | &nbsp;&nbsp;<sup>2</sup>For Standalone free cash flow see Exhibit 99.4 | &nbsp;&nbsp;<sup>2</sup>For Standalone free cash flow see Exhibit 99.4 |

---

------

**<u>Cash Paid for Capital Investment</u>**

In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Cash Paid for Capital Investment** | **Cash Paid for Capital Investment** | **Cash Paid for Capital Investment** | **Cash Paid for Capital Investment** | **Cash Paid for Capital Investment** |
| *Dollars in millions* |  |  |  |  |
|  | Fourth Quarter | Fourth Quarter | Year Ended | Year Ended |
|  | **2022** | 2021 | **2022** | 2021 |
| Capital Expenditures | $**(4229)** | $(3494) | $**(19626)** | $(15545) |
| Cash paid for vendor financing | **(460)** | (583) | **(4697)** | (4596) |
| **Cash paid for Capital Investment** | $**(4689)** | $(4077) | $**(24323)** | $(20141) |

---

**<u>EBITDA</u>**

Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP.

EBITDA service margin is calculated as EBITDA divided by service revenues.

These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance.

We believe EBITDA Service Margin (EBITDA as a percentage of service revenues) to be a more relevant measure than EBITDA Margin (EBITDA as a percentage of total revenue) for our Mobility business unit operating margin. We also use wireless service revenues to calculate margin to facilitate comparison, both internally and externally with our wireless competitors, as they calculate their margins using wireless service revenues as well.

There are material limitations to using these non-GAAP financial measures. EBITDA, EBITDA margin and EBITDA service margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA, EBITDA margin and EBITDA service margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **EBITDA, EBITDA Margin and EBITDA Service Margin** | **EBITDA, EBITDA Margin and EBITDA Service Margin** | **EBITDA, EBITDA Margin and EBITDA Service Margin** | **EBITDA, EBITDA Margin and EBITDA Service Margin** | **EBITDA, EBITDA Margin and EBITDA Service Margin** |
| *Dollars in millions* |  |  |  |  |
|  | Fourth Quarter | Fourth Quarter | Year Ended | Year Ended |
|  | **2022** | 2021 | **2022** | 2021 |
| **Income (Loss) from Continuing Operations** | $**(23120)** | $5202 | $**(6874)** | $23776 |
| Additions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Income Tax Expense (Benefit) | **(77)** | 939 | **3780** | 5395 |
| &nbsp;&nbsp;&nbsp;Interest Expense | **1560** | 1626 | **6108** | 6716 |
| &nbsp;&nbsp;&nbsp;Equity in Net (Income) of Affiliates | **(374)** | (444) | **(1791)** | (603) |
| &nbsp;&nbsp;&nbsp;Other (Income) Expense - Net | **919** | (2429) | **(5810)** | (9387) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **4595** | 4500 | **18021** | 17852 |
| **EBITDA** | **(16497)** | 9394 | **13434** | 43749 |
| &nbsp;&nbsp;&nbsp;Transaction and other cost | **84** | (2) | **425** | 41 |
| &nbsp;&nbsp;&nbsp;Benefit-related (gain) loss | **(109)** | (20) | **108** | (128) |
| &nbsp;&nbsp;&nbsp;Assets impairments and abandonment and restructuring | **26753** | 108 | **27498** | 213 |
| **Adjusted EBITDA**<sup>1</sup> | $**10231** | $9480 | $**41465** | $43875 |
| &nbsp;&nbsp;&nbsp;Less: Video and Other dispositions | **—** | 4 | **—** | (3807) |
| **Standalone AT&T Adjusted EBITDA**<sup>2</sup> | $**10231** | $9484 | $**41465** | $40068 |
| &nbsp;&nbsp;&nbsp;<sup>1</sup>See page 5 for additional discussion and reconciliation of adjusted items. | &nbsp;&nbsp;&nbsp;<sup>1</sup>See page 5 for additional discussion and reconciliation of adjusted items. | &nbsp;&nbsp;&nbsp;<sup>1</sup>See page 5 for additional discussion and reconciliation of adjusted items. | &nbsp;&nbsp;&nbsp;<sup>1</sup>See page 5 for additional discussion and reconciliation of adjusted items. | &nbsp;&nbsp;&nbsp;<sup>1</sup>See page 5 for additional discussion and reconciliation of adjusted items. |
| &nbsp;&nbsp;&nbsp;<sup>2</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA. | &nbsp;&nbsp;&nbsp;<sup>2</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA. | &nbsp;&nbsp;&nbsp;<sup>2</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA. | &nbsp;&nbsp;&nbsp;<sup>2</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA. | &nbsp;&nbsp;&nbsp;<sup>2</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA. |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin** | **Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin** | **Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin** | **Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin** | **Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin** |
| *Dollars in millions* |  |  |  |  |
|  | Fourth Quarter | Fourth Quarter | Year Ended | Year Ended |
|  | **2022** | 2021 | **2022** | 2021 |
| **Communications Segment** | **Communications Segment** | **Communications Segment** | **Communications Segment** | **Communications Segment** |
| **Operating Income** | $**7221** | $6410 | $**29107** | $28393 |
| Additions: |  |  |  |  |
| Depreciation and amortization | **4258** | 4156 | **16681** | 16409 |
| **EBITDA** | **11479** | 10566 | **45788** | 44802 |
| Total Operating Revenues | **30365** | 30206 | **117067** | 114730 |
| **Operating Income Margin** | **23.8%** | 21.2% | **24.9%** | 24.7% |
| **EBITDA Margin** | **37.8%** | 35.0% | **39.1%** | 39.0% |
| ***Mobility*** | ***Mobility*** | ***Mobility*** | ***Mobility*** | ***Mobility*** |
| **Operating Income** | $**6044** | $5332 | $**24528** | $23370 |
| Additions: |  |  |  |  |
| Depreciation and amortization | **2080** | 2050 | **8198** | 8122 |
| **EBITDA** | **8124** | 7382 | **32726** | 31492 |
| Total Operating Revenues | **21501** | 21146 | **81780** | 78254 |
| Service Revenues | **15434** | 14669 | **60499** | 57590 |
| **Operating Income Margin** | **28.1%** | 25.2% | **30.0%** | 29.9% |
| **EBITDA Margin** | **37.8%** | 34.9% | **40.0%** | 40.2% |
| **EBITDA Service Margin** | **52.6%** | 50.3% | **54.1%** | 54.7% |
| ***Business Wireline*** | ***Business Wireline*** | ***Business Wireline*** | ***Business Wireline*** | ***Business Wireline*** |
| **Operating Income** | $**801** | $876 | $**3252** | $4027 |
| Additions: |  |  |  |  |
| Depreciation and amortization | **1360** | 1317 | **5314** | 5192 |
| **EBITDA** | **2161** | 2193 | **8566** | 9219 |
| Total Operating Revenues | **5635** | 5901 | **22538** | 23937 |
| **Operating Income Margin** | **14.2%** | 14.8% | **14.4%** | 16.8% |
| **EBITDA Margin** | **38.3%** | 37.2% | **38.0%** | 38.5% |
| ***Consumer Wireline*** | ***Consumer Wireline*** | ***Consumer Wireline*** | ***Consumer Wireline*** | ***Consumer Wireline*** |
| **Operating Income** | $**376** | $202 | $**1327** | $996 |
| Additions: |  |  |  |  |
| Depreciation and amortization | **818** | 789 | **3169** | 3095 |
| **EBITDA** | **1194** | 991 | **4496** | 4091 |
| Total Operating Revenues | **3229** | 3159 | **12749** | 12539 |
| **Operating Income Margin** | **11.6%** | 6.4% | **10.4%** | 7.9% |
| **EBITDA Margin** | **37.0%** | 31.4% | **35.3%** | 32.6% |
| **Latin America Segment - *Mexico*** |  |  |  |  |
| **Operating Income** | $**(79)** | $(117) | $**(326)** | $(510) |
| Additions: |  |  |  |  |
| Depreciation and amortization | **164** | 153 | **658** | 605 |
| **EBITDA** | **85** | 36 | **332** | 95 |
| Total Operating Revenues | **861** | 704 | **3144** | 2747 |
| **Operating Income Margin** | **-9.2%** | -16.6% | **-10.4%** | -18.6% |
| **EBITDA Margin** | **9.9%** | 5.1% | **10.6%** | 3.5% |

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------

**<u>Adjusting Items</u>**

Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. Prior periods have been recast for consistency to include gains on benefit-related and other cost investments.

The tax impact of adjusting items is calculated using the effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately 25%.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Adjusting Items** | **Adjusting Items** | **Adjusting Items** | **Adjusting Items** | **Adjusting Items** |
| *Dollars in millions* |  |  |  |  |
|  | Fourth Quarter | Fourth Quarter | Year Ended | Year Ended |
|  | **2022** | 2021 | **2022** | 2021 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Transaction and other costs | **84** | (2) | **425** | 41 |
| &nbsp;&nbsp;&nbsp;Benefit-related (gain) loss | **(109)** | (20) | **108** | (128) |
| &nbsp;&nbsp;&nbsp;Asset impairments and abandonment and restructuring | **26753** | 108 | **27498** | 213 |
| **Adjustments to Operations and Support Expenses** | **26728** | 86 | **28031** | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | **16** | 28 | **76** | 170 |
| **Adjustments to Operating Expenses** | **26744** | 114 | **28107** | 296 |
| **Other** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;DIRECTV intangible amortization (proportionate share) | **359** | 434 | **1547** | 826 |
| &nbsp;&nbsp;&nbsp;Benefit-related (gain) loss, transaction financing costs and other | **420** | (84) | **1242** | (421) |
| &nbsp;&nbsp;&nbsp;Actuarial (gain) loss | **1839** | (1119) | **(1999)** | (4140) |
| **Adjustments to Income Before Income Taxes** | **29362** | (655) | **28897** | (3439) |
| &nbsp;&nbsp;&nbsp;Tax impact of adjustments | **1082** | (131) | **882** | (854) |
| &nbsp;&nbsp;&nbsp;Tax-related items | **329** | 240 | **977** | 608 |
| **Adjustments to Net Income** | $**27951** | $(764) | $**27038** | $(3193) |

---

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses and income tax expense certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairment, benefit-related gains and losses, employee separation and other material gains and losses. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.

Adjusted Operating Revenues, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.

------

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| | | | | |
|:---|:---|:---|:---|:---|
| **Adjusted Operating Income, Adjusted Operating Income Margin,<br>Adjusted EBITDA and Adjusted EBITDA Margin** | **Adjusted Operating Income, Adjusted Operating Income Margin,<br>Adjusted EBITDA and Adjusted EBITDA Margin** | **Adjusted Operating Income, Adjusted Operating Income Margin,<br>Adjusted EBITDA and Adjusted EBITDA Margin** | **Adjusted Operating Income, Adjusted Operating Income Margin,<br>Adjusted EBITDA and Adjusted EBITDA Margin** | **Adjusted Operating Income, Adjusted Operating Income Margin,<br>Adjusted EBITDA and Adjusted EBITDA Margin** |
| *Dollars in millions* |  |  |  |  |
|  | Fourth Quarter | Fourth Quarter | Year Ended | Year Ended |
|  | **2022** | 2021 | **2022** | 2021 |
| **Operating Income** | $**(21092)** | $4894 | $**(4587)** | $25897 |
| Adjustments to Operating Expenses | **26744** | 114 | **28107** | 296 |
| **Adjusted Operating Income** | **5652** | 5008 | **23520** | 26193 |
| **EBITDA** | **(16497)** | 9394 | **13434** | 43749 |
| Adjustments to Operations and Support Expenses | **26728** | 86 | **28031** | 126 |
| **Adjusted EBITDA** | **10231** | 9480 | **41465** | 43875 |
| Total Operating Revenues | **31343** | 31095 | **120741** | 134038 |
| Operating Income Margin | **(67.3)%** | 15.7% | **(3.8)%** | 19.3% |
| Adjusted Operating Income Margin | **18.0%** | 16.1% | **19.5%** | 19.5% |
| **Adjusted EBITDA Margin** | **32.6%** | 30.5% | **34.3%** | 32.7% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Adjusted Diluted EPS** | **Adjusted Diluted EPS** | **Adjusted Diluted EPS** | **Adjusted Diluted EPS** | **Adjusted Diluted EPS** | **Adjusted Diluted EPS** | **Adjusted Diluted EPS** |
|  | Fourth Quarter | Fourth Quarter | Fourth Quarter | Year Ended | Year Ended | Year Ended |
|  | **2022** | **2022** | 2021 | **2022** | **2022** | 2021 |
| **Diluted Earnings Per Share (EPS)** | **$** | **(3.20)** | **0.66** | **$** | **(1.10)** | 3.02 |
| &nbsp;&nbsp;&nbsp;DIRECTV intangible amortization (proportionate share) | **0.04** | **0.04** | **0.05** | **0.16** | **0.16** | 0.09 |
| &nbsp;&nbsp;Actuarial (gain) loss <sup>1</sup> | **0.19** | **0.19** | **(0.11)** | **(0.20)** | **(0.20)** | (0.42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairments, abandonments and restructuring | **3.57** | **3.57** | **0.01** | **3.59** | **3.59** | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefit-related, transaction and other costs<sup>1, 2</sup> | **0.05** | **0.05** | **(0.02)** | **0.25** | **0.25** |  |
| &nbsp;&nbsp;&nbsp;Tax-related items | **(0.04)** | **(0.04)** | **(0.03)** | **(0.13)** | **(0.13)** | (0.08) |
| **Adjusted EPS** | **$** | **0.61** | 0.56 | **$** | **2.57** | 2.63 |
| &nbsp;&nbsp;&nbsp;Less: Video and Other dispositions | **—** | **—** |  | **—** | **—** | (0.22) |
| **Standalone AT&T Adjusted EPS** | **$** | **0.61** | 0.56 | **$** | **2.57** | 2.41 |
| *Year-over-year growth - Adjusted* | **8.9** | **8.9%** |  | **6.6** | **6.6%** |  |
| **Weighted Average Common Shares Outstanding <br> with Dilution (000000)** | **7533** | **7533** | 7541 | **7587** | **7587** | 7503 |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $2.0 billion in 2022. As a result, adjusted EPS reflects an expected return on plan assets of $3.2 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.5% for our VEBA trusts), rather than the actual return on plan assets of $11.3 billion loss (actual pension return of -14.8% and VEBA return of -13.2%), included in the GAAP measure of income. Adjustments also include the impact to our 2022 quarterly benefit expense accruals that resulted from quarterly remeasurements of plan assets and obligations, which included increases in the assumed discount rates.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $2.0 billion in 2022. As a result, adjusted EPS reflects an expected return on plan assets of $3.2 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.5% for our VEBA trusts), rather than the actual return on plan assets of $11.3 billion loss (actual pension return of -14.8% and VEBA return of -13.2%), included in the GAAP measure of income. Adjustments also include the impact to our 2022 quarterly benefit expense accruals that resulted from quarterly remeasurements of plan assets and obligations, which included increases in the assumed discount rates.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $2.0 billion in 2022. As a result, adjusted EPS reflects an expected return on plan assets of $3.2 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.5% for our VEBA trusts), rather than the actual return on plan assets of $11.3 billion loss (actual pension return of -14.8% and VEBA return of -13.2%), included in the GAAP measure of income. Adjustments also include the impact to our 2022 quarterly benefit expense accruals that resulted from quarterly remeasurements of plan assets and obligations, which included increases in the assumed discount rates.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $2.0 billion in 2022. As a result, adjusted EPS reflects an expected return on plan assets of $3.2 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.5% for our VEBA trusts), rather than the actual return on plan assets of $11.3 billion loss (actual pension return of -14.8% and VEBA return of -13.2%), included in the GAAP measure of income. Adjustments also include the impact to our 2022 quarterly benefit expense accruals that resulted from quarterly remeasurements of plan assets and obligations, which included increases in the assumed discount rates.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $2.0 billion in 2022. As a result, adjusted EPS reflects an expected return on plan assets of $3.2 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.5% for our VEBA trusts), rather than the actual return on plan assets of $11.3 billion loss (actual pension return of -14.8% and VEBA return of -13.2%), included in the GAAP measure of income. Adjustments also include the impact to our 2022 quarterly benefit expense accruals that resulted from quarterly remeasurements of plan assets and obligations, which included increases in the assumed discount rates.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $2.0 billion in 2022. As a result, adjusted EPS reflects an expected return on plan assets of $3.2 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.5% for our VEBA trusts), rather than the actual return on plan assets of $11.3 billion loss (actual pension return of -14.8% and VEBA return of -13.2%), included in the GAAP measure of income. Adjustments also include the impact to our 2022 quarterly benefit expense accruals that resulted from quarterly remeasurements of plan assets and obligations, which included increases in the assumed discount rates.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Includes adjustments for actuarial gains or losses associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gains of $2.0 billion in 2022. As a result, adjusted EPS reflects an expected return on plan assets of $3.2 billion (based on an average expected return on plan assets of 6.75% for our pension trust and 4.5% for our VEBA trusts), rather than the actual return on plan assets of $11.3 billion loss (actual pension return of -14.8% and VEBA return of -13.2%), included in the GAAP measure of income. Adjustments also include the impact to our 2022 quarterly benefit expense accruals that resulted from quarterly remeasurements of plan assets and obligations, which included increases in the assumed discount rates.  |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>2</sup>As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. <br>Additionally, in the fourth quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities. The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. <br>Given our intent to settle the Mobility II preferred interests in cash, and the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded these impacts from our adjusted EPS calculation. The per share impact was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended December 31, 2022 and 2021, and $0.06 and $0.03 for the year ended December 31, 2022 and 2021, respectively.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>2</sup>As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. <br>Additionally, in the fourth quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities. The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. <br>Given our intent to settle the Mobility II preferred interests in cash, and the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded these impacts from our adjusted EPS calculation. The per share impact was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended December 31, 2022 and 2021, and $0.06 and $0.03 for the year ended December 31, 2022 and 2021, respectively.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>2</sup>As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. <br>Additionally, in the fourth quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities. The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. <br>Given our intent to settle the Mobility II preferred interests in cash, and the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded these impacts from our adjusted EPS calculation. The per share impact was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended December 31, 2022 and 2021, and $0.06 and $0.03 for the year ended December 31, 2022 and 2021, respectively.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>2</sup>As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. <br>Additionally, in the fourth quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities. The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. <br>Given our intent to settle the Mobility II preferred interests in cash, and the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded these impacts from our adjusted EPS calculation. The per share impact was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended December 31, 2022 and 2021, and $0.06 and $0.03 for the year ended December 31, 2022 and 2021, respectively.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>2</sup>As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. <br>Additionally, in the fourth quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities. The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. <br>Given our intent to settle the Mobility II preferred interests in cash, and the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded these impacts from our adjusted EPS calculation. The per share impact was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended December 31, 2022 and 2021, and $0.06 and $0.03 for the year ended December 31, 2022 and 2021, respectively.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>2</sup>As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. <br>Additionally, in the fourth quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities. The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. <br>Given our intent to settle the Mobility II preferred interests in cash, and the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded these impacts from our adjusted EPS calculation. The per share impact was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended December 31, 2022 and 2021, and $0.06 and $0.03 for the year ended December 31, 2022 and 2021, respectively.  | &nbsp;&nbsp;&nbsp;&nbsp;<sup>2</sup>As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. <br>Additionally, in the fourth quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities. The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. <br>Given our intent to settle the Mobility II preferred interests in cash, and the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded these impacts from our adjusted EPS calculation. The per share impact was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended December 31, 2022 and 2021, and $0.06 and $0.03 for the year ended December 31, 2022 and 2021, respectively.  |
| &nbsp;&nbsp;<sup>3</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. | &nbsp;&nbsp;<sup>3</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. | &nbsp;&nbsp;<sup>3</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. | &nbsp;&nbsp;<sup>3</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. | &nbsp;&nbsp;<sup>3</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. | &nbsp;&nbsp;<sup>3</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. | &nbsp;&nbsp;<sup>3</sup>See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. |

---

------

**<u>Net Debt to Adjusted EBITDA</u>**

Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and certificates of deposit and time deposits that are greater than 90 days, from the sum of debt maturing within one year and long-term debt.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Net Debt to Adjusted EBITDA - 2022** | **Net Debt to Adjusted EBITDA - 2022** | **Net Debt to Adjusted EBITDA - 2022** | **Net Debt to Adjusted EBITDA - 2022** | **Net Debt to Adjusted EBITDA - 2022** | **Net Debt to Adjusted EBITDA - 2022** |
| *Dollars in millions* |  |  |  |  |  |
|  | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |  |
|  | March. 31 | June 30, | Sept. 30, | Dec. 31, | **Four Quarters** |
|  | 2022 <sup>1</sup> | 2022 <sup>1</sup> | 2022 <sup>1</sup> | 2022 <sup>1</sup> | **Four Quarters** |
| Adjusted EBITDA | $10190 | $10330 | $10714 | $10231 | $**41465** |
| &nbsp;&nbsp;&nbsp;End-of-period current debt |  |  |  |  | **7467** |
| &nbsp;&nbsp;&nbsp;End-of-period long-term debt |  |  |  |  | **128423** |
| **Total End-of-Period Debt** |  |  |  |  | **135890** |
| &nbsp;&nbsp;&nbsp;Less: Cash and Cash Equivalents |  |  |  |  | **3701** |
| **Net Debt Balance** |  |  |  |  | **132189** |
| **Annualized Net Debt to Adjusted EBITDA Ratio** |  |  |  |  | **3.19** |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Net Debt to Adjusted EBITDA - 2021** | **Net Debt to Adjusted EBITDA - 2021** | **Net Debt to Adjusted EBITDA - 2021** | **Net Debt to Adjusted EBITDA - 2021** | **Net Debt to Adjusted EBITDA - 2021** | **Net Debt to Adjusted EBITDA - 2021** |
| *Dollars in millions* |  |  |  |  |  |
|  | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |  |
|  | March 31, | June 30, | Sept. 30, | Dec. 31, | Four Quarters |
|  | 2021 <sup>1</sup> | 2021 <sup>1</sup> | 2021 <sup>1</sup> | 2021 <sup>1</sup> | Four Quarters |
| Adjusted EBITDA | $11661 | $11931 | $10803 | $9480 | $43875 |
| &nbsp;&nbsp;&nbsp;End-of-period current debt |  |  |  |  | 24620 |
| &nbsp;&nbsp;&nbsp;End-of-period long-term debt |  |  |  |  | 151011 |
| **Total End-of-Period Debt** |  |  |  |  | 175631 |
| &nbsp;&nbsp;&nbsp;Less: Cash and Cash Equivalents |  |  |  |  | 19223 |
| **Net Debt Balance** |  |  |  |  | 156408 |
| **Annualized Net Debt to Adjusted EBITDA Ratio** |  |  |  |  | 3.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>As reported in Exhibit 99.4 |

---

------

**<u>Supplemental Operational Measures</u>**

We provide a supplemental discussion of our business solutions operations that is calculated by combining our Mobility and Business Wireline operating units, and then adjusting to remove non-business operations. The following table presents a reconciliation of our supplemental Business Solutions results.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** |
|  | Fourth Quarter | Fourth Quarter | Fourth Quarter | Fourth Quarter | Fourth Quarter | Fourth Quarter | Fourth Quarter | Fourth Quarter |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | **Mobility** | **Business<br>Wireline** | **Adjustments**<sup>1</sup> | **Business<br>Solutions** | Mobility | Business<br>Wireline | Adjustments<sup>1</sup> | Business<br>Solutions |
| **Operating Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Wireless service | $**15434** | $**—** | $**(13176)** | $**2258** | $14669 | $— | $(12561) | $2108 |
| &nbsp;&nbsp;&nbsp;Wireline services | **—** | **5473** | **—** | **5473** |  | 5727 |  | 5727 |
| &nbsp;&nbsp;&nbsp;Wireless equipment | **6067** | **—** | **(5130)** | **937** | 6477 |  | (5447) | 1030 |
| &nbsp;&nbsp;&nbsp;Wireline equipment | **—** | **162** | **—** | **162** |  | 174 |  | 174 |
| **Total Operating Revenues** | **21501** | **5635** | **(18306)** | **8830** | 21146 | 5901 | (18008) | 9039 |
| **Operating Expenses** |  |  |  |  |  |  |  |  |
| Operations and support | **13377** | **3474** | **(11195)** | **5656** | 13764 | 3708 | (11437) | 6035 |
| EBITDA | **8124** | **2161** | **(7111)** | **3174** | 7382 | 2193 | (6571) | 3004 |
| Depreciation and amortization | **2080** | **1360** | **(1716)** | **1724** | 2050 | 1317 | (1700) | 1667 |
| **Total Operating Expenses** | **15457** | **4834** | **(12911)** | **7380** | 15814 | 5025 | (13137) | 7702 |
| **Operating Income** | **6044** | **801** | **(5395)** | **1450** | 5332 | 876 | (4871) | 1337 |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. |
| &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** | **Supplemental Operational Measure** |
|  | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | December 31, 2021 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
|  | **Mobility** | **Business<br>Wireline** | **Adjustments**<sup>1</sup> | **Business<br>Solutions** | Mobility | Business<br>Wireline | Adjustments<sup>1</sup> | Business<br>Solutions |
| **Operating Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Wireless service | $**60499** | $**—** | $**(51710)** | $**8789** | $57590 | $— | $(49429) | $8161 |
| &nbsp;&nbsp;&nbsp;Wireline service | **—** | **21891** | **—** | **21891** |  | 23224 |  | 23224 |
| &nbsp;&nbsp;&nbsp;Wireless equipment | **21281** | **—** | **(17712)** | **3569** | 20664 |  | (17250) | 3414 |
| &nbsp;&nbsp;&nbsp;Wireline equipment | **—** | **647** | **—** | **647** |  | 713 |  | 713 |
| **Total Operating Revenues** | **81780** | **22538** | **(69422)** | **34896** | 78254 | 23937 | (66679) | 35512 |
| **Operating Expenses** |  |  |  |  |  |  |  |  |
| Operations and support | **49054** | **13972** | **(40547)** | **22479** | 46762 | 14718 | (38702) | 22778 |
| EBITDA | **32726** | **8566** | **(28875)** | **12417** | 31492 | 9219 | (27977) | 12734 |
| Depreciation and amortization | **8198** | **5314** | **(6763)** | **6749** | 8122 | 5192 | (6744) | 6570 |
| **Total Operating Expenses** | **57252** | **19286** | **(47310)** | **29228** | 54884 | 19910 | (45446) | 29348 |
| **Operating Income** | **24528** | **3252** | **(22112)** | **5668** | 23370 | 4027 | (21233) | 6164 |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>1</sup>Non-business wireless reported in the Communications segment under the Mobility business unit. |
| &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. | &nbsp;&nbsp;&nbsp;&nbsp;Results have been recast to conform to the current period's classification. |

---

## Exhibit 99.4

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Standalone AT&T** | **Standalone AT&T** | **Standalone AT&T** | | | | | | | | |
| | **Supplemental Unaudited Quarterly Financial Information** | **Supplemental Unaudited Quarterly Financial Information** | | | | | | | | | |
| | Dollars in millions | | | | | | | | | | |
| | Unaudited | | | | | | | | | | |
| | **Operating Revenues** | 3/31/21 | 6/30/21 |<br><br>9/30/21 |<br><br>12/31/21 | 2021 |<br><br>3/31/22 |<br><br>6/30/22 |<br><br>9/30/22 |<br><br>12/31/22 | 2022 |
| | **Revenues from Continuing Operations** | $**35877** | $**35740** | $**31326** | $**31095** | $**134038** | $**29712** | $**29643** | $**30043** | $**31343** | $**120741** |
| [A] | &nbsp;&nbsp;&nbsp;Less: Video | (6725) | (6639) | (2149) |  | (15513) |  |  |  |  |  |
| [B] | &nbsp;&nbsp;&nbsp;Less: Other dispositions (Held-for-sale) | (231) | (158) | (64) |  | (453) |  |  |  |  |  |
| [H] | &nbsp;&nbsp;&nbsp;Less: Intercompany eliminations | 62 | 57 | 17 |  | 136 |  |  |  |  |  |
|  | **Standalone AT&T Operating Revenues** | $**28983** | $**29000** | $**29130** | $**31095** | $**118208** | $**29712** | $**29643** | $**30043** | $**31343** | $**120741** |
|  | *Revenue from Continuing Operations Growth Rate Y/Y* | *1.5 %* | *3.5 %* | *-11.5 %* | *-17.6 %* | *-6.3 %* | *-17.2 %* | *-17.1 %* | *-4.1 %* | *0.8 %* | *-9.9 %* |
|  | *Standalone AT&T Revenue Growth Rate Y/Y* | *4.8 %* | *6.6 %* | *3.9 %* | *2.2 %* | *4.3 %* | *2.5 %* | *2.2 %* | *3.1 %* | *0.8 %* | *2.1 %* |

---

------

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Operations and Support Expenses** | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
| | **Operations and Support Expenses from Continuing Operations** | $**24217** | $**23739** | $**20632** | $**21701** | $**90289** | $**19713** | $**20237** | $**19517** | $**47840** | $**107307** |
| [I] | &nbsp;&nbsp;&nbsp;Non-GAAP Adjustments | (1) | 70 | (109) | (86) | (126) | (191) | (924) | (188) | (26728) | (28031) |
|  | **Adjusted Operations and Support Expenses from Continuing Operations** | **24216** | **23809** | **20523** | **21615** | **90163** | **19522** | **19313** | **19329** | **21112** | **79276** |
| [A] | &nbsp;&nbsp;&nbsp;Less: Video | (5660) | (5275) | (1731) |  | (12666) |  |  |  |  |  |
| [B] | &nbsp;&nbsp;&nbsp;Less: Other dispositions (Held-for-sale) | (194) | (115) | (47) |  | (356) |  |  |  |  |  |
| [H] | &nbsp;&nbsp;&nbsp;Less: Intercompany eliminations | 62 | 57 | 17 |  | 136 |  |  |  |  |  |
| [D] | &nbsp;&nbsp;Less: Reclassification of allocations for separated businesses | 15 | 19 | 16 | (4) | 46 |  |  |  |  |  |
| [C] | &nbsp;&nbsp;&nbsp;Add: DTV-related retained costs | 350 | 350 | 117 |  | 817 |  |  |  |  |  |
|  | **Standalone AT&T Adjusted Operations and Support Expenses** | $**18789** | $**18845** | $**18895** | $**21611** | $**78140** | $**19522** | $**19313** | $**19329** | $**21112** | $**79276** |
|  | *Operations and Support Expenses from Continuing Operations Growth Rate Y/Y* | *8.3 %* | *1.8 %* | *-13.1 %* | *-49.2 %* | *-19.5 %* | *-18.6 %* | *-14.8 %* | *-5.4 %* | *120.5 %* | *18.8 %* |
|  | *Adjusted Operations and Support Expenses from Continuing Operations Growth Rate Y/Y* | *4.9 %* | *6.0 %* | *-13.6 %* | *-20.4 %* | *-6.5 %* | *-19.4 %* | *-18.9 %* | *-5.8 %* | *-2.3 %* | *-12.1 %* |
|  | *Standalone AT&T Adjusted Operations and Support Expenses Growth Rate Y/Y* | *8.7 %* | *11.7 %* | *4.6 %* | *2.7 %* | *6.7 %* | *3.9 %* | *2.5 %* | *2.3 %* | *-2.3 %* | *1.5 %* |

---

------

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Depreciation and Amortization Expense** | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
| | &nbsp;&nbsp;**Depreciation and Amortization Expense from Continuing Operations** | $**4466** | $**4429** | $**4457** | $**4500** | $**17852** | $**4462** | $**4450** | $**4514** | $**4595** | $**18021** |
| [I] | &nbsp;&nbsp;&nbsp;Non-GAAP Adjustments | (85) | (28) | (28) | (28) | (169) | (27) | (17) | (16) | (16) | (76) |
|  | &nbsp;&nbsp;**Adjusted Depreciation and Amortization Expense from Continuing Operations** | **4381** | **4401** | **4429** | **4472** | **17683** | **4435** | **4433** | **4498** | **4579** | **17945** |
| [A] | &nbsp;&nbsp;&nbsp;Less: Video | (164) | (148) | (44) |  | (356) |  |  |  |  |  |
| [B] | &nbsp;&nbsp;&nbsp;Less: Other dispositions (Held-for-sale) |  |  |  |  |  |  |  |  |  |  |
| [C] | &nbsp;&nbsp;&nbsp;Add: DTV-related retained costs | 180 | 180 | 60 |  | 420 |  |  |  |  |  |
|  | &nbsp;&nbsp;**Standalone AT&T Adjusted Depreciation and Amortization Expense** | $**4397** | $**4433** | $**4445** | $**4472** | $**17747** | $**4435** | $**4433** | $**4498** | $**4579** | $**17945** |
|  | *Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y* | *-21.7 %* | *-21.7 %* | *-20.6 %* | *-19.0 %* | *-20.7 %* | *-0.1 %* | *0.5 %* | *1.3 %* | *2.1 %* | *0.9 %* |
|  | *Adjusted Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y* | *-8.6 %* | *-7.9 %* | *-7.2 %* | *-5.7 %* | *-7.3 %* | *1.2 %* | *0.7 %* | *1.6 %* | *2.4 %* | *1.5 %* |
|  | *Standalone AT&T Adjusted Depreciation and Amortization Expense Growth Rate Y/Y* | *0.5 %* | *1.7 %* | *1.3 %* | *1.7 %* | *1.3 %* | *0.9 %* | *0.0 %* | *1.2 %* | *2.4 %* | *1.1 %* |

---

------

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Operating Income** | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
| | **Operating Income from Continuing Operations** | $**7194** | $**7572** | $**6237** | $**4894** | $**25897** | $**5537** | $**4956** | $**6012** | $**(21092)** | $**(4587)** |
| [I] | &nbsp;&nbsp;&nbsp;Non-GAAP Adjustments | 86 | (42) | 137 | 114 | 295 | 218 | 941 | 204 | 26744 | 28107 |
|  | **Adjusted Operating Income from Continuing Operations** | **7280** | **7530** | **6374** | **5008** | **26192** | **5755** | **5897** | **6216** | **5652** | **23520** |
|  | &nbsp;&nbsp;&nbsp;Less: Video | (901) | (1216) | (374) |  | (2491) |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;Less: Other dispositions (Held-for-sale) | (37) | (43) | (17) |  | (97) |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;Less: Intercompany eliminations |  |  |  |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;Less: Reclassification of allocations for separated businesses | (15) | (19) | (16) | 4 | (46) |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;Add: DTV-related retained costs | (530) | (530) | (177) |  | (1237) |  |  |  |  |  |
|  | **Standalone AT&T Adjusted Operating Income** | $**5797** | $**5722** | $**5790** | $**5012** | $**22321** | $**5755** | $**5897** | $**6216** | $**5652** | $**23520** |
|  | *Operating Income from Continuing Operations Growth Rate Y/Y* | *-1.2 %* | *36.2 %* | *2.9 %* | *146.5 %* | *209.3 %* | *-23.0 %* | *-34.5 %* | *-3.6 %* | *-531.0 %* | *-117.7 %* |
|  | *Adjusted Operating Income Growth Rate Y/Y* | *-2.6 %* | *3.2 %* | *-7.2 %* | *-14.4 %* | *-4.7 %* | *-20.9 %* | *-21.7 %* | *-2.5 %* | *12.9 %* | *-10.2 %* |
|  | *Standalone AT&T Adjusted Operating Income Growth Rate Y/Y* | *-3.1 %* | *-4.0 %* | *3.6 %* | *0.6 %* | *-0.9 %* | *-0.7 %* | *3.1 %* | *7.4 %* | *12.8 %* | *5.4 %* |
|  | *Operating Income Margin from Continuing Operations* | *20.1 %* | *21.2 %* | *19.9 %* | *15.7 %* | *19.3 %* | *18.6 %* | *16.7 %* | *20.0 %* | *-67.3 %* | *-3.8 %* |
|  | *Adjusted Operating Income Margin* | *20.3 %* | *21.1 %* | *20.3 %* | *16.1 %* | *19.5 %* | *19.4 %* | *19.9 %* | *20.7 %* | *18.0 %* | *19.5 %* |
|  | *Standalone AT&T Adjusted Operating Income Margin* | *20.0 %* | *19.7 %* | *19.9 %* | *16.1 %* | *18.9 %* | *19.4 %* | *19.9 %* | *20.7 %* | *18.0 %* | *19.5 %* |

---

------

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Other Income (Expense)** | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
| | | $(1823) | $(1640) | $(1627) | $(1626) | $(6716) | $(1626) | $(1502) | $(1420) | $(1560) | $(6108) |
| | | (6) | (18) | 183 | 444 | 603 | 521 | 504 | 392 | 374 | 1791 |
| | Interest expense<br>Equity in net income (loss) of affiliates<br>Other income (expense) - net | 4230 | 1206 | 1522 | 2429 | 9387 | 2157 | 2302 | 2270 | (919) | 5810 |
| | **Other Income (Expense) from Continuing Operations** | **2401** | **(452)** | **78** | **1247** | **3274** | **1052** | **1304** | **1242** | **(2105)** | **1493** |
| [I] | &nbsp;&nbsp;Non-GAAP Adjustments | (2968) | (16) | 18 | (769) | (3735) | (545) | (635) | (648) | 2618 | 790 |
|  | **Adjusted Other Income (Expense) from Continuing Operations** | **(567)** | **(468)** | **96** | **478** | **(461)** | **507** | **669** | **594** | **513** | **2283** |
| [F] | &nbsp;&nbsp;Less: Estimated interest expense impact of debt redemptions | 371 | 371 | 371 | 371 | 1484 | 371 | 371 |  |  | 742 |
| [E] | &nbsp;&nbsp;Add: Estimated equity in net income from DIRECTV investment | 746 | 955 | 293 |  | 1994 |  |  |  |  |  |
|  | **Standalone AT&T Adjusted Other Income (Expense)** | $**550** | $**858** | $**760** | $**849** | $**3017** | $**878** | $**1040** | $**594** | $**513** | $**3025** |

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Income From Continuing Operations** | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
| | **Income from Continuing Operations** | $**7586** | $**5969** | $**5019** | $**5202** | $**23776** | $**5149** | $**4751** | $**6346** | $**(23120)** | $**(6874)** |
| [I] | &nbsp;&nbsp;&nbsp;Non-GAAP Adjustments | (2276) | (307) | 153 | (764) | (3194) | (224) | 347 | (1036) | 27951 | 27038 |
|  | **Adjusted Income from Continuing Operations** | **5310** | **5662** | **5172** | **4438** | **20582** | **4925** | **5098** | **5310** | **4831** | **20164** |
|  | &nbsp;&nbsp;Less: Operating Income of Video and Other dispositions | (1483) | (1808) | (584) | 4 | (3871) |  |  |  |  |  |
|  | &nbsp;&nbsp;Add: Estimated equity in net income from DIRECTV investment | 746 | 955 | 293 |  | 1994 |  |  |  |  |  |
|  | &nbsp;&nbsp;Less: Estimated interest expense impact of debt redemptions | 371 | 371 | 371 | 371 | 1484 | 371 | 371 |  |  | 742 |
| [G] | &nbsp;&nbsp;&nbsp;Less: Estimated tax on Video & Other dispositions | (73) | (95) | 16 | 75 | (76) | 74 | 74 |  |  | 148 |
|  | &nbsp;&nbsp;Add: Adjustment of estimated interest expense impact of debt redemptions | (297) | (297) | (297) | (297) | (1187) | (297) | (297) |  |  | (594) |
|  | **Standalone AT&T Adjusted Net Income** | 4720 | 4978 | 4939 | 4441 | 19078 | 4925 | 5098 | 5310 | 4831 | 20164 |
|  | &nbsp;&nbsp;Less: Income from Continuing Operations attributable to Noncontrolling Interest | (394) | (387) | (356) | (348) | (1485) | (354) | (380) | (373) | (362) | (1469) |
|  | &nbsp;&nbsp;&nbsp;Less: Preferred Stock Dividends | (50) | (56) | (50) | (51) | (207) | (48) | (52) | (49) | (54) | (203) |
|  | &nbsp;&nbsp;**Adjusted Standalone AT&T Income Attributable to Common Stock** | $**4276** | $**4535** | $**4533** | $**4042** | $**17386** | $**4523** | $**4666** | $**4888** | $**4415** | $**18492** |
|  | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> | **Earnings from Continuing Operations per share of common stock**<sup>:1</sup> |
|  | Basic | $0.99 | $0.77 | $0.64 | $0.67 | $3.07 | $0.66 | $0.60 | $0.82 | $(3.20) | $(1.10) |
|  | Diluted | $0.97 | $0.76 | $0.63 | $0.66 | $3.02 | $0.65 | $0.59 | $0.79 | $(3.20) | $(1.10) |
| [J] | Continuing Operations Adjusted Diluted | $0.68 | $0.73 | $0.66 | $0.56 | $2.63 | $0.63 | $0.65 | $0.68 | $0.61 | $2.57 |
| [J] | Standalone AT&T Adjusted Diluted | $0.58 | $0.64 | $0.62 | $0.56 | $2.41 | $0.63 | $0.65 | $0.68 | $0.61 | $2.57 |
|  | Weighted Average Common Shares Outstanding | 7161 | 7168 | 7171 | 7172 | 7168 | 7184 | 7169 | 7153 | 7157 | 7166 |
|  | Weighted Average Common Shares Outstanding with Dilution under ASU 2020-06 | 7482 | 7484 | 7506 | 7541 | 7503 | 7556 | 7611 | 7647 | 7533 | 7587 |
|  | Weighted Average Common Shares Outstanding with Dilution under historical | 7188 | 7200 | 7202 | 7204 | 7199 | 7217 | 7212 | 7201 | 7205 | 7209 |
|  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  | <sup>1</sup> Earnings per share from continuing operations is calculated using Income from Continuing Operations, less Income from Continuing Operations Attributable to Noncontrolling Interest and Preferred Stock Dividends divided by the weighted average common shares outstanding for the period.  |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **EBITDA**<sup>2</sup> | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
| **Net Income from Continuing Operations** | $**7586** | $**5969** | $**5019** | $**5202** | $**23776** | $**5149** | $**4751** | $**6346** | $**(23120)** | $**(6874)** |
| Additions: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Income Tax Expense (Benefit) | 2009 | 1151 | 1296 | 939 | 5395 | 1440 | 1509 | 908 | (77) | 3780 |
| &nbsp;&nbsp;&nbsp;Interest Expense | 1823 | 1640 | 1627 | 1626 | 6716 | 1626 | 1502 | 1420 | 1560 | 6108 |
| &nbsp;&nbsp;&nbsp;Equity in Net Income (Loss) of Affiliates | 6 | 18 | (183) | (444) | (603) | (521) | (504) | (392) | (374) | (1791) |
| &nbsp;&nbsp;&nbsp;Other (Income) Expense - net | (4230) | (1206) | (1522) | (2429) | (9387) | (2157) | (2302) | (2270) | 919 | (5810) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 4466 | 4429 | 4457 | 4500 | 17852 | 4462 | 4450 | 4514 | 4595 | 18021 |
| EBITDA | 11660 | 12001 | 10694 | 9394 | 43749 | 9999 | 9406 | 10526 | (16497) | 13434 |
| &nbsp;&nbsp;&nbsp;Non-GAAP Adjustments | 1 | (70) | 109 | 86 | 126 | 191 | 924 | 188 | 26728 | 28031 |
| **Adjusted EBITDA** | **11661** | **11931** | **10803** | **9480** | **43875** | **10190** | **10330** | **10714** | **10231** | **41465** |
| &nbsp;&nbsp;&nbsp;Less: Video | (1065) | (1364) | (418) |  | (2847) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Less: Other dispositions (Held-for-sale) | (37) | (43) | (17) |  | (97) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Less: Intercompany eliminations |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Reclassification of allocations for separated businesses | (15) | (19) | (16) | 4 | (46) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Add: DTV-related retained costs | (350) | (350) | (117) |  | (817) |  |  |  |  |  |
| **Standalone AT&T Adjusted EBITDA** | $**10194** | $**10155** | $**10235** | $**9484** | $**40068** | $**10190** | $**10330** | $**10714** | $**10231** | $**41465** |
| *Adjusted EBITDA Growth Rate Y/Y* | *-4.9 %* | *-1.2 %* | *-7.2 %* | *-10.5 %* | *-5.8 %* | *-12.6 %* | *-13.4 %* | *-0.8 %* | *7.9 %* | *-5.5 %* |
| *Standalone AT&T Adjusted EBITDA Growth Rate Y/Y* | *-1.6 %* | *-1.6 %* | *2.6 %* | *1.1 %* | *0.1 %* | *0.0 %* | *1.7 %* | *4.7 %* | *7.9 %* | *3.5 %* |
| *Adjusted EBITDA Margin* | *32.5 %* | *33.4 %* | *34.5 %* | *30.5 %* | *32.7 %* | *34.3 %* | *34.8 %* | *35.7 %* | *32.6 %* | *34.3 %* |
| *Standalone AT&T Adjusted EBITDA Margin* | *35.2 %* | *35.0 %* | *35.1 %* | *30.5 %* | *33.9 %* | *34.3 %* | *34.8 %* | *35.7 %* | *32.6 %* | *34.3 %* |
| <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. | <sup>2</sup> 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. |

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Free Cash Flow ($B)**<sup>3</sup> | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
| | Net cash provided by operating activities from Continuing Operations<br>&nbsp;&nbsp;&nbsp;Add: Distributions from DIRECTV classified as investing activities<br>&nbsp;&nbsp;&nbsp;Less: Capital expenditures<br>&nbsp;&nbsp;&nbsp;Less: Cash paid vendor financing | $9.6<br>—<br>(3.9)<br>(1.7) | $10.2<br>—<br>(3.7)<br>(1.3) | $9.3<br>—<br>(4.5)<br>(1.0) | $8.1<br>1.3<br>(3.5)<br>(0.6) | $37.2<br>1.3<br>(15.6)<br>(4.6) | $7.6<br>1.3<br>(4.6)<br>(1.6) | $7.7<br>0.3<br>(4.9)<br>(1.8) | $10.1<br>0.6<br>(5.9)<br>(0.9) | $10.3<br>0.4<br>(4.2)<br>(0.5) | $35.8<br>2.6<br>(19.6)<br>(4.7) |
| | Free Cash Flow from Continuing Operations | 4.0 | 5.2 | 3.8 | 5.3 | 18.3 | 2.8 | 1.4 | 3.8 | 6.1 | 14.1 |
| [E] | &nbsp;&nbsp;&nbsp;Add: Estimated equity in net income from DIRECTV investment |  |  | 0.7 |  | 0.7 |  |  |  |  |  |
|  | Standalone AT&T Free Cash Flow | $4.0 | $5.2 | $4.5 | $5.3 | $19.0 | $2.8 | $1.4 | $3.8 | $6.1 | $14.1 |
|  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  | <sup>3</sup> May not foot due to rounding. Historical presentation may differ due to insignificant reclasses between continuing and discontinued operations.  |

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **NOTES** | | | | | | | | | | |
| [A] | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. | Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products. |
| [B] | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. |
| [C] | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. |
| [D] | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. | Adjustment to reflect AT&T's first-quarter 2022 reclassification of certain administrative costs borne by AT&T where the business units did not influence decision making. These costs are not expected to continue in standalone AT&T. |
| [E] | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. |
| [F] | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. | 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%. This adjustment is required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. |
| [G] | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. | Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate. |
| [H] | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. | Under GAAP, AT&T removed transactions involving dealing between segments, including advertising arrangements with Video. |
| [I] | Non-GAAP Adjustments: | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 2021 | 3/31/22 | 6/30/22 | 9/30/22 | 12/31/22 | 2022 |
|  | &nbsp;&nbsp;&nbsp;Transaction and other costs | $35 | $— | $8 | $(2) | $41 | $98 | $185 | $58 | $84 | $425 |
|  | &nbsp;&nbsp;Employee separation costs and benefit-related (gain) loss | (34) | (70) | (4) | (20) | (128) | 93 | 108 | 16 | (109) | 108 |
|  | &nbsp;&nbsp;Asset impairments and abandonments and restructuring |  |  | 105 | 108 | 213 |  | 631 | 114 | 26753 | 27498 |
|  | Adjustments to Operations and Support Expenses/ EBITDA | 1 | (70) | 109 | 86 | 126 | 191 | 924 | 188 | 26728 | 28031 |
|  | &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 85 | 28 | 28 | 28 | 169 | 27 | 17 | 16 | 16 | 76 |
|  | Adjustments to Operating Income | 86 | (42) | 137 | 114 | 295 | 218 | 941 | 204 | 26744 | 28107 |
|  | Other income (expense) net | (2968) | (16) | 18 | (769) | (3735) | (545) | (635) | (648) | 2618 | 790 |
|  | Tax impact of adjustments and discrete items | 606 | (249) | (2) | (109) | 246 | 103 | 41 | (592) | (1411) | (1859) |
|  | Adjustments to Net Income | $(2276) | $(307) | $153 | $(764) | $(3194) | $(224) | $347 | $(1036) | $27951 | $27038 |
| [J] | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  | As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. <br>Additionally, in the fourth-quarter of 2022, all outstanding Mobility II preferred interests were put to us, with approximately one-third redeemed in the fourth-quarter; approximately 107 million interests will be redeemed primarily in October 2023 and 107 million redeemed in October 2024, per the terms of the agreement, unless called or put is accepted by AT&T prior. With the certainty of redemption, the remaining Mobility preferred interest was reclassified from equity to a liability at fair value, with approximately $2.7 billion recorded in current as "Accounts payable and accrued liabilities" and $2.7 billion as "Other noncurrent liabilities." The difference between the carrying value of the Mobility preferred interest and the fair value of the instrument upon settlement and/or balance sheet reclassification was recorded as an adjustment to additional paid-in capital; the fair value adjustment of these instruments is required to be included when calculating EPS. Given the nonoperational fair value adjustment recorded as "Additional Paid in Capital," we have excluded the impact from our adjusted EPS calculation.  |

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