AT&T (T) 8-K Regulation FD Disclosure

Comparative Basis Financial Information
Supplemental Unaudited Quarterly Comparative Financial Information1
Dollars in millions
Unaudited
	Operating Revenues	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021			6/30/2021			9/30/2021			12/31/2021			2021
	Reported AT&T Operating Revenues	$	42,779	$	40,950	$	42,340	$	45,691	$	171,760	$	43,939		$	44,045		$	39,922		$	40,958		$	168,864
[A]	Less: WarnerMedia	(7,765)		(6,728)		(7,395)		(8,554)		(30,442)		(8,526)			(8,791)			(8,442)			(9,873)			(35,632)
[B]	Less: Vrio	(887)		(752)		(753)		(762)		(3,154)		(743)			(749)			(756)			(359)			(2,607)
[C]	Less: Securitization - Revolver (WarnerMedia)	(14)		(23)		(21)		(22)		(80)		(31)			(35)			(41)			(29)			(136)
[D]	Add: Other items (conveyed) retained	12		9		13		18		52		11			16			14			15			56
[K]	Less: Intercompany eliminations	1,232		1,070		1,223		1,388		4,913		1,228			1,254			628			383			3,493
	Revenues from Continuing Operations	35,357		34,526		35,407		37,759		143,049		35,878			35,740			31,325			31,095			134,038
[E]	Less: Video	(7,407)		(7,021)		(7,014)		(7,168)		(28,610)		(6,725)			(6,639)			(2,149)			—			(15,513)
[F]	Less: Other dispositions (Held-for-sale)	(369)		(369)		(420)		(256)		(1,414)		(231)			(158)			(64)			—			(453)
[K]	Less: Intercompany eliminations	64		55		65		83		267		62			57			17			—			136
	Standalone AT&T Operating Revenues	$	27,645	$	27,191	$	28,038	$	30,418	$	113,292	$	28,984		$	29,000		$	29,129		$	31,095		$	118,208
	Reported Revenue Growth Rate Y/Y											2.7		%	7.6		%	(5.7)		%	(10.4)		%	(1.7)		%
	Revenue from Continuing Operations Growth Rate Y/Y											1.5		%	3.5		%	(11.5)		%	(17.6)		%	(6.3)		%
	Standalone AT&T Revenue Growth Rate Y/Y											4.8		%	6.7		%	3.9		%	2.2		%	4.3		%

1

	Operations and Support Expenses	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021			6/30/2021			9/30/2021			12/31/2021			2021
	Reported AT&T Operations and    Support Expenses	$	28,071	$	30,133	$	29,178	$	49,457	$	136,839	$	30,469		$	35,015		$	27,194		$	29,977		$	122,655
[A]	Less: WarnerMedia	(5,605)		(4,656)		(5,483)		(5,835)		(21,579)		(6,403)			(6,934)			(6,271)			(8,129)			(27,737)
[B]	Less: Vrio	(783)		(661)		(675)		(681)		(2,800)		(661)			(660)			(660)			(321)			(2,302)
[L]	Less: Merger & Significant items related to WarnerMedia and Vrio	(242)		(2,440)		(183)		(1,082)		(3,947)		(59)			(4,555)			(179)			(215)			(5,008)
[D]	Add: Other items (conveyed) retained	57		67		55		75		254		41			42			48			40			171
[C]	Less: WarnerMedia Film amortization    recharacterization and receivable    securitization	13		54		(11)		(16)		40		(49)			(52)			(28)			(33)			(162)
[K]	Less: Intercompany eliminations	858		814		853		823		3,348		879			882			529			383			2,673
	Operations and Support Expenses    from Continuing Operations	22,369		23,311		23,734		42,741		112,155		24,217			23,738			20,633			21,702			90,290
[D]	Less: Video	(6,020)		(5,809)		(5,887)		(6,458)		(24,174)		(5,660)			(5,275)			(1,731)			—			(12,666)
[E]	Less: Other dispositions (Held-for-sale)	(272)		(268)		(310)		(190)		(1,040)		(194)			(115)			(47)			—			(356)
[L]	Less: Merger & Significant items related    to DTV and other dispositions	(32)		(98)		(24)		(15,529)		(15,683)		(13)			(22)			37			11			13
[K]	Less: Intercompany eliminations	64		55		65		83		267		62			57			17			—			136
[M]	Less: Reclassification of allocations for    separated businesses	(76)		(86)		(76)		(84)		(322)		(15)			(19)			(16)			4			(46)
[G]	Add: DTV-related retained costs	350		350		350		350		1,400		350			350			117			—			817
	Standalone AT&T Operations and    Support Expenses	16,535		17,627		18,004		21,081		73,247		18,777			18,752			19,042			21,709			78,280
[L]	Standalone AT&T Merger & Significant    items	750		(757)		56		(44)		5		11			93			(145)			(97)			(138)
	Standalone AT&T Adjusted Operations    and Support Expenses	$	17,285	$	16,870	$	18,060	$	21,037	$	73,252	$	18,788		$	18,845		$	18,897		$	21,612		$	78,142
	Reported Operations and Support Expense Growth Rate Y/Y											8.5		%	16.2		%	(6.8)		%	(39.4)		%	(10.4)		%
	Operations and Support Expenses from Continuing Operations Growth Rate Y/Y											8.3		%	1.8		%	(13.1)		%	(49.2)		%	(19.5)		%
	Standalone AT&T Operations and Support Expense Growth Rate Y/Y											13.6		%	6.4		%	5.8		%	3.0		%	6.9		%
	Standalone AT&T Adjusted Operations and Support Expense Growth Rate Y/Y											8.7		%	11.7		%	4.6		%	2.7		%	6.7		%

2

	Depreciation and Amortization Expense	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021			6/30/2021			9/30/2021			12/31/2021			2021
	Reported AT&T Depreciation and    Amortization Expense	$	7,222	$	7,285	$	7,030	$	6,979	$	28,516	$	5,809		$	5,761		$	5,619		$	5,673		$	22,862
[A]	Less: WarnerMedia	(161)		(164)		(169)		(177)		(671)		(163)			(165)			(163)			(165)			(656)
[B]	Less: Vrio	(147)		(127)		(126)		(120)		(520)		(117)			(114)			—			—			(231)
[D]	Add: Other items (conveyed) retained	3		3		3		3		12		3			3			3			3			12
[C]	Less: WarnerMedia Film amortization   recharacterization and receivable    securitization	(69)		(77)		(47)		(38)		(231)		(20)			(16)			(18)			(19)			(73)
[L]	Less: Merger & Significant items related    to WarnerMedia and Vrio	(1,143)		(1,267)		(1,082)		(1,093)		(4,585)		(1,045)			(1,040)			(1,021)			(1,014)			(4,120)
[K]	Less: Intercompany eliminations	—		1		—				1		—			—			—			—			—
	Depreciation and Amortization Expense    from Continuing Operations	5,705		5,654		5,609		5,554		22,522		4,467			4,429			4,420			4,478			17,794
[E]	Less: Video	(591)		(593)		(557)		(521)		(2,262)		(164)			(148)			(44)			—			(356)
[F]	Less: Other dispositions (Held-for-sale)	(4)		(4)		(4)		(3)		(15)		—			—			—			—			—
[L]	Less: Merger & Significant items related    to DTV and other dispositions	(879)		(846)		(813)		(780)		(3,318)		—			—			—			—			—
[G]	Add: DTV-related retained costs	180		180		180		180		720		180			180			60			—			420
	Standalone AT&T Depreciation and    Amortization Expense	4,411		4,391		4,415		4,430		17,647		4,483			4,461			4,436			4,478			17,858
[L]	Standalone AT&T Merger & Significant    items	(34)		(32)		(26)		(31)		(123)		(86)			(29)			9			(7)			(113)
	Standalone AT&T Adjusted Depreciation    and Amortization Expense	$	4,377	$	4,359	$	4,389	$	4,399	$	17,524	$	4,397		$	4,432		$	4,445		$	4,471		$	17,745
	Reported Depreciation and Amortization Expense Growth Rate Y/Y											(19.6)		%	(20.9)		%	(20.1)		%	(18.7)		%	(19.8)		%
	Depreciation and Amortization Expense from Continuing Operations Growth Rate Y/Y											(21.7)		%	(21.7)		%	(21.2)		%	(19.4)		%	(21.0)		%
	Standalone AT&T Depreciation and Amortization Expense Growth Rate Y/Y											1.6		%	1.6		%	0.5		%	1.1		%	1.2		%
	Standalone AT&T Adjusted Depreciation and Amortization Expense Growth Rate Y/Y											0.5		%	1.7		%	1.3		%	1.6		%	1.3		%

3

Operating Income	3/31/2020			6/30/2020			9/30/2020			12/31/2020			2020			3/31/2021			6/30/2021			9/30/2021			12/31/2021			2021
Reported AT&T Operating Income	$	7,486		$	3,532		$	6,132		$	(10,745)		$	6,405		$	7,661		$	3,269		$	7,109		$	5,308		$	23,347
Less: WarnerMedia	(1,999)			(1,908)			(1,743)			(2,542)			(8,192)			(1,960)			(1,692)			(2,008)			(1,579)			(7,239)
Less: Vrio	43			36			48			39			166			35			25			(96)			(38)			(74)
Less: Merger & Significant items related    to WarnerMedia and Vrio	1,385			3,707			1,265			2,175			8,532			1,104			5,595			1,200			1,229			9,128
Add: Other items conveyed (retained)	(48)			(61)			(45)			(60)			(214)			(33)			(29)			(37)			(28)			(127)
Less: WarnerMedia Film amortization    recharacterization and receivable    securitization	42			—			37			32			111			38			33			5			23			99
Less: Intercompany eliminations	374			255			370			565			1,564			349			372			99			—			820
Operating Income from    Continuing Operations	7,283			5,561			6,064			(10,536)			8,372			7,194			7,573			6,272			4,915			25,954
Less: Video	(796)			(619)			(570)			(189)			(2,174)			(901)			(1,216)			(374)			—			(2,491)
Less: Other dispositions (Held-for-sale)	(93)			(97)			(106)			(63)			(359)			(37)			(43)			(17)			—			(97)
Less: Merger & Significant items related    to DTV and other dispositions	911			944			837			16,309			19,001			13			22			(37)			(11)			(13)
Less: Intercompany eliminations	—			—			—			—			—			—			—			—			—			—
Less: Reclassification of allocations for    separated businesses	(76)			(86)			(76)			(84)			(322)			(15)			(19)			(16)			4			(46)
Add: Retained costs	(530)			(530)			(530)			(530)			(2,120)			(530)			(530)			(177)			—			(1,237)
Standalone AT&T Operating Income	$	6,699		$	5,173		$	5,619		$	4,907		$	22,398		$	5,724		$	5,787		$	5,651		$	4,908		$	22,070
Standalone AT&T Merger & Significant    items	(716)			789			(30)			77			120			75			(64)			136			104			251
Standalone AT&T Adjusted    Operating Income	$	5,983		$	5,962		$	5,589		$	4,984		$	22,518		$	5,799		$	5,723		$	5,787		$	5,012		$	22,321
Reported Operating Income Growth Rate Y/Y																2.3		%	(7.4)		%	15.9		%	149.4		%	264.5		%
Operating Income from Continuing Operations    Growth Rate Y/Y																(1.2)		%	36.2		%	3.4		%	146.6		%	210.0		%
Standalone AT&T Operating Income Growth    Rate Y/Y																(14.6)		%	11.9		%	0.6		%	—		%	(1.5)		%
Standalone AT&T Adjusted Operating Income    Growth Rate Y/Y																(3.1)		%	(4.0)		%	3.5		%	0.6		%	(0.9)		%
Reported Operating Income Margin	17.5		%	8.6		%	14.5		%	(23.5)		%	3.7		%	17.4		%	7.4		%	17.8		%	13.0		%	13.8		%
Operating Income Margin from Continuing    Operations	20.6		%	16.1		%	17.1		%	(27.9)		%	5.9		%	20.1		%	21.2		%	20.0		%	15.8		%	19.4		%
Standalone AT&T Operating Income Margin	24.2		%	19.0		%	20.0		%	16.1		%	19.8		%	19.7		%	20.0		%	19.4		%	15.8		%	18.7		%
Standalone AT&T Adjusted Operating    Income Margin	21.6		%	21.9		%	19.9		%	16.4		%	19.9		%	20.0		%	19.7		%	19.9		%	16.1		%	18.9		%

4

	Other Income (Expense)	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021		6/30/2021		9/30/2021		12/31/2021		2021
	Interest expense	$	(2,018)	$	(2,041)	$	(1,972)	$	(1,894)	$	(7,925)	$	(1,870)	$	(1,684)	$	(1,667)	$	(1,663)	$	(6,884)
	Equity in net income (loss) of affiliates	(6)		(10)		5		106		95		52		41		91		447		631
	Other income (expense) - net	803		1,017		(231)		(3,020)		(1,431)		4,221		999		2,279		2,354		9,853
	Reported AT&T Other Income (Expense)	(1,221)		(1,034)		(2,198)		(4,808)		(9,261)		2,403		(644)		703		1,138		3,600
	Less: Interest expense on debt conveyed	54		52		49		43		198		46		45		40		31		162
	Less: Equity method investments    conveyed	(25)		1		(7)		20		(11)		(68)		(56)		74		1		(49)
	Less: Other income (expense) - net    related to WarnerMedia and Vrio	(24)		(42)		(41)		220		113		(22)		(215)		119		(179)		(297)
[L]	Less: Merger & Significant items related    to WarnerMedia and Vrio	24		158		37		2		221		—		135		(703)		124		(444)
	Other Income (Expense) from    Continuing Operations	(1,192)		(865)		(2,160)		(4,523)		(8,740)		2,359		(735)		233		1,115		2,972
[I]	Less: Estimated interest expense impact    of debt redemptions	—		—		—		—		—		371		371		371		371		1,484
[H]	Add: Estimated equity in net income from    DIRECTV investment	971		848		789		497		3,105		746		955		293		—		1,994
[L]	Less: Merger & Significant items related    to DTV and other dispositions	5		—		—		82		87		(64)		—		(2)		67		1
	Standalone AT&T Other Income    (Expense)	$	(216)	$	(17)	$	(1,371)	$	(3,944)	$	(5,548)	$	3,412	$	591	$	895	$	1,553	$	6,451
[L]	Standalone AT&T Merger & Significant    items	288		(26)		1,225		3,862		5,349		(2,899)		(12)		25		(854)		(3,740)
	Standalone AT&T Adjusted Other Income     (Expense)	$	72	$	(43)	$	(146)	$	(82)	$	(199)	$	513	$	579	$	920	$	699	$	2,711

5

	Income From Continuing Operations	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021		6/30/2021		9/30/2021		12/31/2021		2021
	Revenues	$	35,357	$	34,526	$	35,407	$	37,759	$	143,049	$	35,878	$	35,740	$	31,325	$	31,095	$	134,038
	Operations and Support Expenses	22,369		23,311		23,734		42,741		112,155		24,217		23,738		20,633		21,702		90,290
	Depreciation and Amortization Expense	5,705		5,654		5,609		5,554		22,522		4,467		4,429		4,420		4,478		17,794
	Operating Income	7,283		5,561		6,064		(10,536)		8,372		7,194		7,573		6,272		4,915		25,954
	Other Income (Expense)	(1,192)		(865)		(2,160)		(4,523)		(8,740)		2,359		(735)		233		1,115		2,972
	Income (Loss) Before Income Taxes	6,091		4,696		3,904		(15,059)		(368)		9,553		6,838		6,505		6,030		28,926
	Income tax expense	1,280		1,026		741		(1,900)		1,147		2,028		1,047		1,335		906		5,316
	Income from Continuing Operations	4,811		3,670		3,163		(13,159)		(1,515)		7,525		5,791		5,170		5,124		23,610
	Less: Pro Forma adjustments to    Operating Income	(584)		(388)		(445)		15,443		14,026		(1,470)		(1,786)		(621)		(7)		(3,884)
	Less: Pro forma adjustments Other    Income (Expense)	976		848		789		579		3,192		1,053		1,326		662		438		3,479
[J]	Less: Estimated tax on pro forma    adjustments	92		113		64		1,773		2,042		(62)		(101)		41		17		(106)
	Standalone AT&T Net Income	5,111		4,017		3,443		1,090		13,661		7,170		5,432		5,170		5,538		23,311
	Standalone AT&T Merger & Significant    items	(341)		596		966		2,930		4,151		(2,251)		(72)		20		(802)		(3,105)
[M]	Add: Adjustment of estimated interest    expense impact of debt redemptions	—		—		—		—		—		(297)		(297)		(297)		(297)		(1,188)
	Standalone AT&T Adjusted Net Income	4,770		4,613		4,409		4,020		17,812		4,622		5,063		4,893		4,439		19,018
	Less: Income from Continuing    Operations attributable to    Noncontrolling Interest	(353)		(282)		(352)		(368)		(1,355)		(392)		(304)		(355)		(347)		(1,398)
	Less: Preferred Stock Dividends	(32)		(52)		(54)		(55)		(193)		(50)		(56)		(50)		(51)		(207)
	Less: Merger & Significant items related    to WarnerMedia and Vrio	—		(105)		—		—		(105)		—		(81)		—		—		(81)
	Adjusted Income from Continuing    Operations Attributable to AT&T	$	4,385	$	4,174	$	4,003	$	3,597	$	16,159	$	4,180	$	4,622	$	4,488	$	4,041	$	17,332

6

Earnings from continuing operations per share of common stock:1	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021		6/30/2021		9/30/2021		12/31/2021		2021
Basic	$	0.62	$	0.45	$	0.39	$	(1.90)	$	(0.44)	$	0.99	$	0.75	$	0.66	$	0.66	$	3.06
Diluted	$	0.61	$	0.45	$	0.38	$	(1.89)	$	(0.44)	$	0.99	$	0.74	$	0.66	$	0.66	$	3.05
Comparative Basis Adjusted Diluted	$	0.61	$	0.58	$	0.56	$	0.50	$	2.25	$	0.58	$	0.64	$	0.62	$	0.56	$	2.41

7

	EBITDA2	3/31/2020			6/30/2020			9/30/2020			12/31/2020			2020			3/31/2021			6/30/2021			9/30/2021			12/31/2021			2021
	Reported AT&T Net Income	$	4,963		$	1,563		$	3,168		$	(13,515)		$	(3,821)		$	7,942		$	1,874		$	6,273		$	5,390		$	21,479
	Additions:
	Income Tax Expense (Benefit)	1,302			935			766			(2,038)			965			2,122			751			1,539			1,056			5,468
	Interest Expense	2,018			2,041			1,972			1,894			7,925			1,870			1,684			1,667			1,663			6,884
	Equity in Net Income (Loss) of Affiliates	6			10			(5)			(106)			(95)			(52)			(41)			(91)			(447)			(631)
	Other (Income) Expense - net	(803)			(1,017)			231			3,020			1,431			(4,221)			(999)			(2,279)			(2,354)			(9,853)
	Depreciation and amortization	7,222			7,285			7,030			6,979			28,516			5,809			5,761			5,619			5,673			22,862
	EBITDA	14,708			10,817			13,162			(3,766)			34,921			13,470			9,030			12,728			10,981			46,209
[L]	Adjustments	(476)			3,295			151			16,655			19,625			61			4,484			287			301			5,133
	Adjusted EBITDA	14,232			14,112			13,313			12,889			54,546			13,531			13,514			13,015			11,282			51,342
	Less: WarnerMedia	(2,160)			(2,072)			(1,912)			(2,719)			(8,863)			(2,123)			(1,857)			(2,171)			(1,744)			(7,895)
	Less: Vrio	(104)			(91)			(78)			(81)			(354)			(82)			(89)			(96)			(38)			(305)
	Add: Other items conveyed (retained)	(45)			(58)			(42)			(57)			(202)			(30)			(26)			(34)			(25)			(115)
	Less: WarnerMedia Film amortization    recharacterization and receivable    securitization	(27)			(77)			(10)			(6)			(120)			18			17			(13)			4			26
	Less: Other dispositions (Held-for-sale)	(97)			(101)			(110)			(66)			(374)			(37)			(43)			(17)			—			(97)
	Less: Video	(1,387)			(1,212)			(1,127)			(710)			(4,436)			(1,065)			(1,364)			(418)			—			(2,847)
	Less: Intercompany eliminations	374			256			370			565			1,565			349			372			99			—			820
	Less: Reclassification of allocations for    separated businesses	(76)			(86)			(76)			(84)			(322)			(15)			(19)			(16)			4			(46)
	Add: Retained costs	(350)			(350)			(350)			(350)			(1,400)			(350)			(350)			(117)			—			(817)
	Standalone AT&T Adjusted EBITDA3	$	10,360		$	10,321		$	9,978		$	9,381		$	40,040		$	10,196		$	10,155		$	10,232		$	9,483		$	40,066
	Adjusted EBITDA Growth Rate Y/Y																(4.9)		%	(4.2)		%	(2.2)		%	(12.5)		%	(5.9)		%
	Standalone AT&T Adjusted EBITDA Growth    Rate Y/Y																(1.6)		%	(1.6)		%	2.5		%	1.1		%	0.1		%
	Standalone AT&T EBITDA Margin	33.3		%	34.5		%	31.4		%	28.2		%	31.8		%	30.8		%	30.7		%	32.6		%	27.5		%	30.4		%
	Standalone AT&T Adjusted EBITDA Margin	37.5		%	38.0		%	35.6		%	30.8		%	35.3		%	35.2		%	35.0		%	35.1		%	30.5		%	33.9		%
	1Diluted EPS does not reflect the adoption of ASU 2020-06.
	2EBITDA is operating income before depreciation and amortization. It excludes depreciation and amortization, interest expense, other income (expense) - net and income taxes from net income.
	3Standalone AT&T adjusted EBITDA and pro forma adjusted net income definitions have been updated to exclude mark-to-market adjustments on benefit-related investments in 2021. Benefit-related investment gains included in EBITDA were ~$30M, $70M, $5M and $20M in the first, second, third and fourth quarters of 2021. Total benefit-related gains (losses) in net income were ~$90M, $170M, $0M and $170M in first, second, third and fourth quarters of 2021.

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NOTES

[A]	WarnerMedia segment results as reported in AT&T's consolidated financial statements, including Otter, Xandr and Playdemic.
[B]	Vrio business unit results within the Latin America segment as reported in AT&T's consolidated statements. AT&T retained the investment in Sky Mexico.
[C]	Adjustments for impacts from receivable securitizations related to WarnerMedia and the recharacterization of programming intangible assets amortization for released programming acquired in the Time Warner acquisition, which we continued to report with the WarnerMedia segment operating expenses.
[D]	Adjustments for AT&T's retention of the addressable TV advertising business, Invidi, and historically allocated general corporate overhead costs that do not meet the requirements for presentation in discontinued operations.
[E]	Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 include retained depreciation on assets supporting U-verse products.
[F]	Other dispositions include the held-for-sale businesses, Crunchyroll, Government Solutions and operations in Puerto Rico that do not meet the requirements for presentation in discontinued operations.
[G]	After the DIRECTV transaction, we expect to retain incurred operations and support costs in the range of ~$500M per quarter and depreciation of network infrastructure that provides both U-verse video and broadband services to customers of ~$150M per quarter, of which approximately 60% will be received from DIRECTV through transition service agreements and commercial arrangements. These estimated net retained costs have been applied to prior periods for comparability.
[H]	Estimated equity in net income of affiliates from DIRECTV. Calculated at 70% of Video EBITDA, which excludes the noncash depreciation and amortization of fair value accretion expected to result from DIRECTV’s revaluation of assets and purchase price allocation.
[I]	Reflects the use of proceeds to pay down approximately $39.0 billion of borrowings and the resulting reduction to interest expense. The estimated impact of interest expense reduction was determined using the weighted-average interest rate of AT&T’s long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, of 3.8%. As of the date of the filing to which these unaudited pro forma financial statements are attached, the Company has committed to approximately $10.1 billion of term loan repayments with a weighted-average rate of 1.1% and make-whole or other redemptions totaling $9.3 billion with a weighted-average rate of 3.5%. This adjustment is required for forma financial information prepared in accordance with Article 11 of Regulation S-X.
[J]	Estimated tax impact of pro forma and other adjustments at AT&T's adjusted effective tax rate of 20.0% for the year ended December 31, 2021, and 19.6% for the year ended December 31, 2020.
[K]	Under GAAP, AT&T removed transactions involving dealing between segments, including channel distribution of WarnerMedia content, and advertising arrangements.

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[L] Non-GAAP Adjustments1:	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021		6/30/2021		9/30/2021		12/31/2021		2021
Intercompany Eliminations as reported    by AT&T:
DTC (HBO Max) sales to Mobility &    Consumer Wireline	$	—	$	(61)	$	(190)	$	(217)	$	(468)	$	(235)	$	(253)	$	(261)	$	(302)	$	(1,051)
WarnerMedia video distribution sales    to DIRECTV and Vrio	(794)		(704)		(600)		(544)		(2,642)		(585)		(570)		(226)		(31)		(1,412)
WarnerMedia sales of DIRECTV    advertising inventory	(413)		(294)		(408)		(603)		(1,718)		(388)		(410)		(111)		—		(909)
Other	(89)		(66)		(90)		(107)		(352)		(82)		(78)		(47)		(50)		(257)
Revenue Eliminations	(1,296)		(1,125)		(1,288)		(1,471)		(5,180)		(1,290)		(1,311)		(645)		(383)		(3,629)
DTC (HBO Max) sales to Mobility &    Consumer Wireline	—		(61)		(190)		(217)		(468)		(235)		(253)		(261)		(302)		(1,051)
WarnerMedia video distribution sales    to DIRECTV and Vrio	(794)		(704)		(600)		(544)		(2,642)		(585)		(570)		(226)		(31)		(1,412)
WarnerMedia sales of DIRECTV    advertising inventory	(39)		(38)		(38)		(38)		(153)		(39)		(38)		(12)		—		(89)
Other	(89)		(66)		(90)		(107)		(352)		(82)		(78)		(47)		(50)		(257)
Operations and Support Eliminations	(922)		(869)		(918)		(906)		(3,615)		(941)		(939)		(546)		(383)		(2,809)
Operating Income & EBITDA	$	(374)	$	(256)	$	(370)	$	(565)	$	(1,565)	$	(349)	$	(372)	$	(99)	$	—	$	(820)

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[L] Non-GAAP Adjustments1:	3/31/2020		6/30/2020		9/30/2020		12/31/2020		2020		3/31/2021		6/30/2021		9/30/2021		12/31/2021		2021
Merger costs	$	182	$	211	$	38	$	37	$	468	$	37	$	—	$	130	$	132	$	299
Employee separation costs and    benefit-related (gain) loss	119		765		40		253		1,177		57		—		—		—		57
Recast: (Gains) losses on benefit-    related investments	—		—		—		—		—		(33)		(71)		(4)		(19)		(127)
Asset impairments and abandonments	123		2,319		73		16,365		18,880		—		4,555		161		188		4,904
Gain on spectrum transaction	(900)		—		—		—		(900)		—		—		—		—		—
Adjustments to Operations and Support     Expenses/ EBITDA	(476)		3,295		151		16,655		19,625		61		4,484		287		301		5,133
Amortization of intangible assets	2,056		2,145		1,921		1,890		8,012		1,131		1,069		1,012		1,021		4,233
Impairments	—		—		—		14		14		—		—		—		—		—
Adjustments to Operating Income	1,580		5,440		2,072		18,559		27,651		1,192		5,553		1,299		1,322		9,366
Other income (expense) net2	317		132		1,262		3,971		5,682		(2,903)		337		(682)		(491)		(3,739)
Recast: (Gains) losses on benefit-    related and other cost investments	—		—		—		(17)		(17)		(60)		(214)		2		(154)		(426)
Tax impact of adjustments and discrete     items	(394)		(749)		(648)		(3,227)		(5,018)		352		(1,018)		(195)		(224)		(1,085)
Noncontrolling interest	—		(105)		—		—		(105)		—		(81)		—		—		(81)
Adjustments to Net Income	$	1,503	$	4,718	$	2,686	$	19,286	$	28,193	$	(1,419)	$	4,577	$	424	$	453	$	4,035

1 As reported in AT&T’s Form 8-K filed April 22, 2021, July 23, 2021, October 21, 2021 and January 26, 2022, recast for consistency to include gains on benefit-related and other cost investments as noted above. Adjusting items include items considered non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, severance and other material gains and losses.

2 Includes adjustments to equity in net income of affiliates, including adjustment for DIRECTV intangible amortization (proportionate share).

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

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