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.
Free Cash Flow
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 | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Fourth Quarter | Year Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
Net cash provided by operating activities from continuing operations1 | $ | 10,348 | $ | 8,077 | $ | 35,812 | $ | 37,170 | |||||||||
| Add: Distributions from DIRECTV classified as investing activities | 444 | 1,323 | 2,649 | 1,323 | |||||||||||||
| Less: Capital expenditures | (4,229) | (3,494) | (19,626) | (15,545) | |||||||||||||
| Less: Cash paid for vendor financing | (460) | (583) | (4,697) | (4,596) | |||||||||||||
Free Cash Flow2 | 6,103 | 5,323 | 14,138 | 18,352 | |||||||||||||
| Less: Dividends paid | (2,014) | (3,749) | (9,859) | (15,068) | |||||||||||||
| Free Cash Flow after Dividends | $ | 4,089 | $ | 1,574 | $ | 4,279 | $ | 3,284 | |||||||||
| Free Cash Flow Dividend Payout Ratio | 33.0 | % | 70.4 | % | 69.7 | % | 82.1 | % | |||||||||
1Includes distributions from DIRECTV of $379 in the fourth quarter and $1,808 for the year ended December 31, 2022. | |||||||||||||||||
2For Standalone free cash flow see Exhibit 99.4 | |||||||||||||||||
1
Cash Paid for Capital Investment
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 | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Fourth Quarter | Year Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Capital Expenditures | $ | (4,229) | $ | (3,494) | $ | (19,626) | $ | (15,545) | |||||||||
| Cash paid for vendor financing | (460) | (583) | (4,697) | (4,596) | |||||||||||||
| Cash paid for Capital Investment | $ | (4,689) | $ | (4,077) | $ | (24,323) | $ | (20,141) | |||||||||
EBITDA
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.
2
| EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Fourth Quarter | Year Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Income (Loss) from Continuing Operations | $ | (23,120) | $ | 5,202 | $ | (6,874) | $ | 23,776 | |||||||||
| Additions: | |||||||||||||||||
| Income Tax Expense (Benefit) | (77) | 939 | 3,780 | 5,395 | |||||||||||||
| Interest Expense | 1,560 | 1,626 | 6,108 | 6,716 | |||||||||||||
| Equity in Net (Income) of Affiliates | (374) | (444) | (1,791) | (603) | |||||||||||||
| Other (Income) Expense - Net | 919 | (2,429) | (5,810) | (9,387) | |||||||||||||
| Depreciation and amortization | 4,595 | 4,500 | 18,021 | 17,852 | |||||||||||||
| EBITDA | (16,497) | 9,394 | 13,434 | 43,749 | |||||||||||||
| Transaction and other cost | 84 | (2) | 425 | 41 | |||||||||||||
| Benefit-related (gain) loss | (109) | (20) | 108 | (128) | |||||||||||||
| Assets impairments and abandonment and restructuring | 26,753 | 108 | 27,498 | 213 | |||||||||||||
Adjusted EBITDA1 | $ | 10,231 | $ | 9,480 | $ | 41,465 | $ | 43,875 | |||||||||
| Less: Video and Other dispositions | — | 4 | — | (3,807) | |||||||||||||
Standalone AT&T Adjusted EBITDA2 | $ | 10,231 | $ | 9,484 | $ | 41,465 | $ | 40,068 | |||||||||
1See page 5 for additional discussion and reconciliation of adjusted items. | |||||||||||||||||
2See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EBITDA. | |||||||||||||||||
3
| Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Fourth Quarter | Year Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Communications Segment | |||||||||||||||||
| Operating Income | $ | 7,221 | $ | 6,410 | $ | 29,107 | $ | 28,393 | |||||||||
| Additions: | |||||||||||||||||
| Depreciation and amortization | 4,258 | 4,156 | 16,681 | 16,409 | |||||||||||||
| EBITDA | 11,479 | 10,566 | 45,788 | 44,802 | |||||||||||||
| Total Operating Revenues | 30,365 | 30,206 | 117,067 | 114,730 | |||||||||||||
| Operating Income Margin | 23.8 | % | 21.2 | % | 24.9 | % | 24.7 | % | |||||||||
| EBITDA Margin | 37.8 | % | 35.0 | % | 39.1 | % | 39.0 | % | |||||||||
| Mobility | |||||||||||||||||
| Operating Income | $ | 6,044 | $ | 5,332 | $ | 24,528 | $ | 23,370 | |||||||||
| Additions: | |||||||||||||||||
| Depreciation and amortization | 2,080 | 2,050 | 8,198 | 8,122 | |||||||||||||
| EBITDA | 8,124 | 7,382 | 32,726 | 31,492 | |||||||||||||
| Total Operating Revenues | 21,501 | 21,146 | 81,780 | 78,254 | |||||||||||||
| Service Revenues | 15,434 | 14,669 | 60,499 | 57,590 | |||||||||||||
| 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 | |||||||||||||||||
| Operating Income | $ | 801 | $ | 876 | $ | 3,252 | $ | 4,027 | |||||||||
| Additions: | |||||||||||||||||
| Depreciation and amortization | 1,360 | 1,317 | 5,314 | 5,192 | |||||||||||||
| EBITDA | 2,161 | 2,193 | 8,566 | 9,219 | |||||||||||||
| Total Operating Revenues | 5,635 | 5,901 | 22,538 | 23,937 | |||||||||||||
| Operating Income Margin | 14.2 | % | 14.8 | % | 14.4 | % | 16.8 | % | |||||||||
| EBITDA Margin | 38.3 | % | 37.2 | % | 38.0 | % | 38.5 | % | |||||||||
| Consumer Wireline | |||||||||||||||||
| Operating Income | $ | 376 | $ | 202 | $ | 1,327 | $ | 996 | |||||||||
| Additions: | |||||||||||||||||
| Depreciation and amortization | 818 | 789 | 3,169 | 3,095 | |||||||||||||
| EBITDA | 1,194 | 991 | 4,496 | 4,091 | |||||||||||||
| Total Operating Revenues | 3,229 | 3,159 | 12,749 | 12,539 | |||||||||||||
| 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 | 3,144 | 2,747 | |||||||||||||
| Operating Income Margin | -9.2 | % | -16.6 | % | -10.4 | % | -18.6 | % | |||||||||
| EBITDA Margin | 9.9 | % | 5.1 | % | 10.6 | % | 3.5 | % | |||||||||
4
Adjusting Items
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 | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Fourth Quarter | Year Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Operating Expenses | |||||||||||||||||
| Transaction and other costs | 84 | (2) | 425 | 41 | |||||||||||||
| Benefit-related (gain) loss | (109) | (20) | 108 | (128) | |||||||||||||
| Asset impairments and abandonment and restructuring | 26,753 | 108 | 27,498 | 213 | |||||||||||||
| Adjustments to Operations and Support Expenses | 26,728 | 86 | 28,031 | 126 | |||||||||||||
| Amortization of intangible assets | 16 | 28 | 76 | 170 | |||||||||||||
| Adjustments to Operating Expenses | 26,744 | 114 | 28,107 | 296 | |||||||||||||
| Other | |||||||||||||||||
| DIRECTV intangible amortization (proportionate share) | 359 | 434 | 1,547 | 826 | |||||||||||||
| Benefit-related (gain) loss, transaction financing costs and other | 420 | (84) | 1,242 | (421) | |||||||||||||
| Actuarial (gain) loss | 1,839 | (1,119) | (1,999) | (4,140) | |||||||||||||
| Adjustments to Income Before Income Taxes | 29,362 | (655) | 28,897 | (3,439) | |||||||||||||
| Tax impact of adjustments | 1,082 | (131) | 882 | (854) | |||||||||||||
| Tax-related items | 329 | 240 | 977 | 608 | |||||||||||||
| Adjustments to Net Income | $ | 27,951 | $ | (764) | $ | 27,038 | $ | (3,193) | |||||||||
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.
5
| Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Fourth Quarter | Year Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Operating Income | $ | (21,092) | $ | 4,894 | $ | (4,587) | $ | 25,897 | |||||||||
| Adjustments to Operating Expenses | 26,744 | 114 | 28,107 | 296 | |||||||||||||
| Adjusted Operating Income | 5,652 | 5,008 | 23,520 | 26,193 | |||||||||||||
| EBITDA | (16,497) | 9,394 | 13,434 | 43,749 | |||||||||||||
| Adjustments to Operations and Support Expenses | 26,728 | 86 | 28,031 | 126 | |||||||||||||
| Adjusted EBITDA | 10,231 | 9,480 | 41,465 | 43,875 | |||||||||||||
| Total Operating Revenues | 31,343 | 31,095 | 120,741 | 134,038 | |||||||||||||
| 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 | |||||||||||||||||
| Fourth Quarter | Year Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Diluted Earnings Per Share (EPS) | $ | (3.20) | $ | 0.66 | $ | (1.10) | $ | 3.02 | |||||||||
| DIRECTV intangible amortization (proportionate share) | 0.04 | 0.05 | 0.16 | 0.09 | |||||||||||||
Actuarial (gain) loss 1 | 0.19 | (0.11) | (0.20) | (0.42) | |||||||||||||
| Impairments, abandonments and restructuring | 3.57 | 0.01 | 3.59 | 0.02 | |||||||||||||
Benefit-related, transaction and other costs1, 2 | 0.05 | (0.02) | 0.25 | — | |||||||||||||
| Tax-related items | (0.04) | (0.03) | (0.13) | (0.08) | |||||||||||||
| Adjusted EPS | $ | 0.61 | $ | 0.56 | $ | 2.57 | $ | 2.63 | |||||||||
| 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 | % | 6.6 | % | |||||||||||||
| Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,533 | 7,541 | 7,587 | 7,503 | |||||||||||||
1Includes 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. | |||||||||||||||||
2As 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. 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 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. | |||||||||||||||||
3See Exhibit 99.4 for reconciliation of Standalone AT&T Adjusted EPS. | |||||||||||||||||
6
Net Debt to Adjusted EBITDA
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 | ||||||||||||||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March. 31 | June 30, | Sept. 30, | Dec. 31, | Four Quarters | ||||||||||||||||||||||||||||
2022 1 | 2022 1 | 2022 1 | 2022 1 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 10,190 | $ | 10,330 | $ | 10,714 | $ | 10,231 | $ | 41,465 | ||||||||||||||||||||||
| End-of-period current debt | 7,467 | |||||||||||||||||||||||||||||||
| End-of-period long-term debt | 128,423 | |||||||||||||||||||||||||||||||
| Total End-of-Period Debt | 135,890 | |||||||||||||||||||||||||||||||
| Less: Cash and Cash Equivalents | 3,701 | |||||||||||||||||||||||||||||||
| Net Debt Balance | 132,189 | |||||||||||||||||||||||||||||||
| Annualized Net Debt to Adjusted EBITDA Ratio | 3.19 | |||||||||||||||||||||||||||||||
1As reported in Exhibit 99.4 | ||||||||||||||||||||||||||||||||
| Net Debt to Adjusted EBITDA - 2021 | ||||||||||||||||||||||||||||||||
| Dollars in millions | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | June 30, | Sept. 30, | Dec. 31, | Four Quarters | ||||||||||||||||||||||||||||
2021 1 | 2021 1 | 2021 1 | 2021 1 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 11,661 | $ | 11,931 | $ | 10,803 | $ | 9,480 | $ | 43,875 | ||||||||||||||||||||||
| End-of-period current debt | 24,620 | |||||||||||||||||||||||||||||||
| End-of-period long-term debt | 151,011 | |||||||||||||||||||||||||||||||
| Total End-of-Period Debt | 175,631 | |||||||||||||||||||||||||||||||
| Less: Cash and Cash Equivalents | 19,223 | |||||||||||||||||||||||||||||||
| Net Debt Balance | 156,408 | |||||||||||||||||||||||||||||||
| Annualized Net Debt to Adjusted EBITDA Ratio | 3.56 | |||||||||||||||||||||||||||||||
1As reported in Exhibit 99.4 | ||||||||||||||||||||||||||||||||
7
Supplemental Operational Measures
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 | |||||||||||||||||||||||||||||
| Fourth Quarter | |||||||||||||||||||||||||||||
| December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
| Mobility | Business Wireline | Adjustments1 | Business Solutions | Mobility | Business Wireline | Adjustments1 | Business Solutions | ||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| Wireless service | $ | 15,434 | $ | — | $ | (13,176) | $ | 2,258 | $ | 14,669 | $ | — | $ | (12,561) | $ | 2,108 | |||||||||||||
| Wireline services | — | 5,473 | — | 5,473 | — | 5,727 | — | 5,727 | |||||||||||||||||||||
| Wireless equipment | 6,067 | — | (5,130) | 937 | 6,477 | — | (5,447) | 1,030 | |||||||||||||||||||||
| Wireline equipment | — | 162 | — | 162 | — | 174 | — | 174 | |||||||||||||||||||||
| Total Operating Revenues | 21,501 | 5,635 | (18,306) | 8,830 | 21,146 | 5,901 | (18,008) | 9,039 | |||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||
| Operations and support | 13,377 | 3,474 | (11,195) | 5,656 | 13,764 | 3,708 | (11,437) | 6,035 | |||||||||||||||||||||
| EBITDA | 8,124 | 2,161 | (7,111) | 3,174 | 7,382 | 2,193 | (6,571) | 3,004 | |||||||||||||||||||||
| Depreciation and amortization | 2,080 | 1,360 | (1,716) | 1,724 | 2,050 | 1,317 | (1,700) | 1,667 | |||||||||||||||||||||
| Total Operating Expenses | 15,457 | 4,834 | (12,911) | 7,380 | 15,814 | 5,025 | (13,137) | 7,702 | |||||||||||||||||||||
| Operating Income | 6,044 | 801 | (5,395) | 1,450 | 5,332 | 876 | (4,871) | 1,337 | |||||||||||||||||||||
1Non-business wireless reported in the Communications segment under the Mobility business unit. | |||||||||||||||||||||||||||||
| Results have been recast to conform to the current period's classification. | |||||||||||||||||||||||||||||
| Supplemental Operational Measure | |||||||||||||||||||||||||||||
| Year Ended | |||||||||||||||||||||||||||||
| December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
| Mobility | Business Wireline | Adjustments1 | Business Solutions | Mobility | Business Wireline | Adjustments1 | Business Solutions | ||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| Wireless service | $ | 60,499 | $ | — | $ | (51,710) | $ | 8,789 | $ | 57,590 | $ | — | $ | (49,429) | $ | 8,161 | |||||||||||||
| Wireline service | — | 21,891 | — | 21,891 | — | 23,224 | — | 23,224 | |||||||||||||||||||||
| Wireless equipment | 21,281 | — | (17,712) | 3,569 | 20,664 | — | (17,250) | 3,414 | |||||||||||||||||||||
| Wireline equipment | — | 647 | — | 647 | — | 713 | — | 713 | |||||||||||||||||||||
| Total Operating Revenues | 81,780 | 22,538 | (69,422) | 34,896 | 78,254 | 23,937 | (66,679) | 35,512 | |||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||
| Operations and support | 49,054 | 13,972 | (40,547) | 22,479 | 46,762 | 14,718 | (38,702) | 22,778 | |||||||||||||||||||||
| EBITDA | 32,726 | 8,566 | (28,875) | 12,417 | 31,492 | 9,219 | (27,977) | 12,734 | |||||||||||||||||||||
| Depreciation and amortization | 8,198 | 5,314 | (6,763) | 6,749 | 8,122 | 5,192 | (6,744) | 6,570 | |||||||||||||||||||||
| Total Operating Expenses | 57,252 | 19,286 | (47,310) | 29,228 | 54,884 | 19,910 | (45,446) | 29,348 | |||||||||||||||||||||
| Operating Income | 24,528 | 3,252 | (22,112) | 5,668 | 23,370 | 4,027 | (21,233) | 6,164 | |||||||||||||||||||||
1Non-business wireless reported in the Communications segment under the Mobility business unit. | |||||||||||||||||||||||||||||
| Results have been recast to conform to the current period's classification. | |||||||||||||||||||||||||||||
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