AT&T (T) 8-K Other Events

AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Fourth Quarter				Percent		Year Ended				Percent
	2024		2023		Change		2024		2023		Change
Operating Revenues
Service	$	25,153	$	25,070	0.3	%	$	100,135	$	99,649	0.5	%
Equipment	7,145		6,952		2.8	%	22,201		22,779		(2.5)	%
Total Operating Revenues	32,298		32,022		0.9	%	122,336		122,428		(0.1)	%
Operating Expenses
Cost of revenues
Equipment	7,358		7,203		2.2	%	22,249		23,136		(3.8)	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)	6,837		6,708		1.9	%	26,972		26,987		(0.1)	%
Selling, general and administrative	7,389		7,485		(1.3)	%	28,411		28,874		(1.6)	%
Asset impairments and abandonments    and restructuring	14		589		(97.6)	%	5,075		1,193		—	%
Depreciation and amortization	5,374		4,766		12.8	%	20,580		18,777		9.6	%
Total Operating Expenses	26,972		26,751		0.8	%	103,287		98,967		4.4	%
Operating Income	5,326		5,271		1.0	%	19,049		23,461		(18.8)	%
Interest Expense	1,661		1,726		(3.8)	%	6,759		6,704		0.8	%
Equity in Net Income of Affiliates	1,074		337		—	%	1,989		1,675		18.7	%
Other Income (Expense) — Net	569		(946)		—	%	2,419		1,416		70.8	%
Income Before Income Taxes	5,308		2,936		80.8	%	16,698		19,848		(15.9)	%
Income Tax Expense	900		354		—	%	4,445		4,225		5.2	%
Net Income	4,408		2,582		70.7	%	12,253		15,623		(21.6)	%
Less: Net Income Attributable to     Noncontrolling Interest	(328)		(394)		16.8	%	(1,305)		(1,223)		(6.7)	%
Net Income Attributable to AT&T	$	4,080	$	2,188	86.5	%	$	10,948	$	14,400	(24.0)	%
Less: Preferred Stock Dividends	(49)		(53)		7.5	%	(202)		(208)		2.9	%
Net Income Attributable to Common Stock	$	4,031	$	2,135	88.8	%	$	10,746	$	14,192	(24.3)	%
Basic Earnings Per Share Attributable to Common Stock	$	0.56	$	0.30	86.7	%	$	1.49	$	1.97	(24.4)	%
Weighted Average Common Shares Outstanding (000,000)	7,207		7,190		0.2	%	7,199		7,181		0.3	%
Diluted Earnings Per Share Attributable to Common Stock	$	0.56	$	0.30	86.7	%	$	1.49	$	1.97	(24.4)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)	7,215		7,191		0.3	%	7,204		7,258		(0.7)	%

1

AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Unaudited	Dec. 31,		Dec. 31,
	2024		2023
Assets
Current Assets
Cash and cash equivalents	$	3,298	$	6,722
Accounts receivable – net of related allowance for credit loss of $375 and $499	9,638		10,289
Inventories	2,270		2,177
Prepaid and other current assets	15,962		17,270
Total current assets	31,168		36,458
Property, Plant and Equipment – Net	128,871		128,489
Goodwill – Net	63,432		67,854
Licenses – Net	127,035		127,219
Other Intangible Assets – Net	5,255		5,283
Investments in and Advances to Equity Affiliates	295		1,251
Operating Lease Right-Of-Use Assets	20,909		20,905
Other Assets	17,830		19,601
Total Assets	$	394,795	$	407,060
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	5,089	$	9,477
Accounts payable and accrued liabilities	35,657		35,852
Advanced billings and customer deposits	4,099		3,778
Dividends payable	2,027		2,020
Total current liabilities	46,872		51,127
Long-Term Debt	118,443		127,854
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	58,939		58,666
Postemployment benefit obligation	9,025		8,734
Operating lease liabilities	17,391		17,568
Other noncurrent liabilities	23,900		23,696
Total deferred credits and other noncurrent liabilities	109,255		108,664
Redeemable Noncontrolling Interest	1,980		1,973
Stockholders’ Equity
Preferred stock	—		—
Common stock	7,621		7,621
Additional paid-in capital	109,108		114,519
Retained earnings (deficit)	1,871		(5,015)
Treasury stock	(15,023)		(16,128)
Accumulated other comprehensive income	795		2,300
Noncontrolling interest	13,873		14,145
Total stockholders’ equity	118,245		117,442
Total Liabilities and Stockholders’ Equity	$	394,795	$	407,060

2

AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Year Ended
	2024		2023
Operating Activities
Net income	$	12,253	$	15,623
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,580		18,777
Provision for uncollectible accounts	1,969		1,969
Deferred income tax expense	1,570		3,037
Net (gain) loss on investments, net of impairments	80		441
Pension and postretirement benefit expense (credit)	(1,883)		(2,552)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net	56		1,594
Asset impairments and abandonments and restructuring	5,075		1,193
Changes in operating assets and liabilities:
Receivables	123		82
Inventories, prepaid and other current assets	(383)		(642)
Accounts payable and other accrued liabilities	(810)		(1,764)
Equipment installment receivables and related sales	(1,846)		(133)
Deferred customer contract acquisition and fulfillment costs	497		1
Postretirement claims and contributions	(166)		(735)
Other - net	1,656		1,423
Total adjustments	26,518		22,691
Net Cash Provided by Operating Activities	38,771		38,314
Investing Activities
Capital expenditures	(20,263)		(17,853)
Acquisitions, net of cash acquired	(380)		(2,942)
Dispositions	75		72
Distributions from DIRECTV in excess of cumulative equity in earnings	928		2,049
(Purchases), sales and settlements of securities and investments - net	2,575		(902)
Other - net	(425)		(84)
Net Cash Used in Investing Activities	(17,490)		(19,660)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less	—		(914)
Issuance of other short-term borrowings	491		5,406
Repayment of other short-term borrowings	(2,487)		(3,415)
Issuance of long-term debt	19		10,004
Repayment of long-term debt	(10,297)		(12,044)
Repayment of note payable to DIRECTV	—		(130)
Payment of vendor financing	(1,792)		(5,742)
Purchase of treasury stock	(215)		(194)
Issuance of treasury stock	15		3
Issuance of preferred interests in subsidiary	—		7,151
Redemption of preferred interests in subsidiary	—		(5,333)
Dividends paid	(8,208)		(8,136)
Other - net	(2,234)		(2,270)
Net Cash Used in Financing Activities	(24,708)		(15,614)
Net increase (decrease) in cash and cash equivalents and restricted cash	(3,427)		3,040
Cash and cash equivalents and restricted cash beginning of year	6,833		3,793
Cash and Cash Equivalents and Restricted Cash End of Year	$	3,406	$	6,833

3

AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited	Fourth Quarter				Percent		Year Ended						Percent
	2024		2023		Change		2024			2023			Change
Capital expenditures
Purchase of property and equipment	$	6,800	$	4,558	49.2	%	$	20,101		$	17,674		13.7	%
Interest during construction	43		43		—	%	162			179			(9.5)	%
Total Capital Expenditures	$	6,843	$	4,601	48.7	%	$	20,263		$	17,853		13.5	%
Acquisitions, net of cash acquired
Business acquisitions	$	—	$	—	—	%	$	—		$	—		—	%
Spectrum acquisitions	28		1,938		(98.6)	%	181			2,247			(91.9)	%
Interest during construction - spectrum	30		81		(63.0)	%	199			695			(71.4)	%
Total Acquisitions	$	58	$	2,019	(97.1)	%	$	380		$	2,942		(87.1)	%
Cash paid for interest	$	1,517	$	1,667	(9.0)	%	$	7,132		$	7,370		(3.2)	%
Cash paid for income taxes, net of refunds	$	1,574	$	841	87.2	%	$	2,456		$	1,599		53.6	%
Dividends Declared per Common Share	$	0.2775	$	0.2775	—	%	$	1.11		$	1.11		—	%
End of Period Common Shares Outstanding (000,000)							7,176			7,150			0.4	%
Debt Ratio							50.7		%	53.5		%	(280)	BP
Total Employees							140,990			150,470			(6.3)	%

4

COMMUNICATIONS SEGMENT

The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline and Consumer Wireline.

Segment Results
Dollars in millions
Unaudited	Fourth Quarter				Percent		Year Ended				Percent
	2024		2023		Change		2024		2023		Change
Segment Operating Revenues
Mobility	$	23,129	$	22,393	3.3	%	$	85,255	$	83,982	1.5	%
Business Wireline	4,545		5,052		(10.0)	%	18,819		20,883		(9.9)	%
Consumer Wireline	3,465		3,352		3.4	%	13,578		13,173		3.1	%
Total Segment Operating Revenues	31,139		30,797		1.1	%	117,652		118,038		(0.3)	%
Segment Operating Income
Mobility	6,124		6,214		(1.4)	%	26,314		25,861		1.8	%
Business Wireline	(211)		165		—	%	(88)		1,289		—	%
Consumer Wireline	276		229		20.5	%	869		651		33.5	%
Total Segment Operating Income	$	6,189	$	6,608	(6.3)	%	$	27,095	$	27,801	(2.5)	%

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited					December 31,		Percent
					2024	2023	Change
Broadband Connections
Broadband1					15,311	15,078	1.5	%
DSL					127	210	(39.5)	%
Total Broadband Connections					15,438	15,288	1.0	%
1 Excludes AT&T Internet Air (AIA) for Business.
Voice Connections
Retail Switched Access Lines					3,296	4,185	(21.2)	%
VoIP Connections					2,223	2,558	(13.1)	%
Total Retail Voice Connections					5,519	6,743	(18.2)	%
	Fourth Quarter		Percent		Year Ended		Percent
	2024	2023	Change		2024	2023	Change
Broadband Net Additions
Broadband1	113	13	—	%	233	3	—	%
DSL	(19)	(21)	9.5	%	(83)	(101)	17.8	%
Total Broadband Net Additions	94	(8)	—	%	150	(98)	—	%
1 Excludes AIA for Business.

5

Mobility

Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2024			2023			Change		2024			2023			Change
Operating Revenues
Service	$	16,563		$	16,039		3.3	%	$	65,373		$	63,175		3.5	%
Equipment	6,566			6,354			3.3	%	19,882			20,807			(4.4)	%
Total Operating Revenues	23,129			22,393			3.3	%	85,255			83,982			1.5	%
Operating Expenses
Operations and support	14,241			14,017			1.6	%	48,724			49,604			(1.8)	%
Depreciation and amortization	2,764			2,162			27.8	%	10,217			8,517			20.0	%
Total Operating Expenses	17,005			16,179			5.1	%	58,941			58,121			1.4	%
Operating Income	$	6,124		$	6,214		(1.4)	%	$	26,314		$	25,861		1.8	%
Operating Income Margin	26.5		%	27.7		%	(120)	BP	30.9		%	30.8		%	10	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,						Percent
									2024			2023			Change
Mobility Subscribers
Postpaid									89,200			87,104			2.4	%
Postpaid phone									72,749			71,255			2.1	%
Prepaid									19,023			19,236			(1.1)	%
Reseller									9,628			7,468			28.9	%
Total Mobility Subscribers1									117,851			113,808			3.6	%
1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems.
	Fourth Quarter						Percent		Year Ended						Percent
	2024			2023			Change		2024			2023			Change
Mobility Net Additions
Postpaid Phone Net Additions	482			526			(8.4)	%	1,653			1,744			(5.2)	%
Total Phone Net Additions	363			394			(7.9)	%	1,525			1,801			(15.3)	%
Postpaid	839			759			10.5	%	2,250			2,315			(2.8)	%
Prepaid	(136)			(135)			(0.7)	%	(102)			128			—	%
Reseller	1,110			338			—	%	2,020			1,279			57.9	%
Total Mobility Net Additions1	1,813			962			88.5	%	4,168			3,722			12.0	%
Postpaid Churn	1.00		%	1.01		%	(1)	BP	0.92		%	0.98		%	(6) BP
Postpaid Phone-Only Churn	0.85		%	0.84		%	1	BP	0.76		%	0.81		%	(5) BP
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.

6

Business Wireline

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

Business Wireline Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2024			2023			Change		2024			2023			Change
Operating Revenues
Service	$	4,376		$	4,873		(10.2)	%	$	18,064		$	20,274		(10.9)	%
Equipment	169			179			(5.6)	%	755			609			24.0	%
Total Operating Revenues	4,545			5,052			(10.0)	%	18,819			20,883			(9.9)	%
Operating Expenses
Operations and support	3,348			3,518			(4.8)	%	13,352			14,217			(6.1)	%
Depreciation and amortization	1,408			1,369			2.8	%	5,555			5,377			3.3	%
Total Operating Expenses	4,756			4,887			(2.7)	%	18,907			19,594			(3.5)	%
Operating Income (Loss)	$	(211)		$	165		—	%	$	(88)		$	1,289		—	%
Operating Income Margin	(4.6)		%	3.3		%	(790)	BP	(0.5)		%	6.2		%	(670)	BP

7

Consumer Wireline

Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services, and our fixed wireless access product (AT&T Internet Air or “AIA”) that provides internet services delivered over our 5G wireless network to residential customers. Consumer Wireline also provides legacy telephony voice communication services.

Consumer Wireline Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2024			2023			Change		2024			2023			Change
Operating Revenues
Broadband	$	2,911		$	2,700		7.8	%	$	11,212		$	10,455		7.2	%
Legacy voice and data services	293			361			(18.8)	%	1,265			1,508			(16.1)	%
Other service and equipment	261			291			(10.3)	%	1,101			1,210			(9.0)	%
Total Operating Revenues	3,465			3,352			3.4	%	13,578			13,173			3.1	%
Operating Expenses
Operations and support	2,247			2,243			0.2	%	9,048			9,053			(0.1)	%
Depreciation and amortization	942			880			7.0	%	3,661			3,469			5.5	%
Total Operating Expenses	3,189			3,123			2.1	%	12,709			12,522			1.5	%
Operating Income	$	276		$	229		20.5	%	$	869		$	651		33.5	%
Operating Income Margin	8.0		%	6.8		%	120	BP	6.4		%	4.9		%	150	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,						Percent
									2024			2023			Change
Broadband Connections
Total Broadband and DSL Connections									14,079			13,890			1.4	%
Broadband1									13,987			13,729			1.9	%
Fiber Broadband Connections									9,331			8,307			12.3	%
Voice Connections
Retail Consumer Switched Access Lines									1,310			1,651			(20.7)	%
Consumer VoIP Connections									1,653			1,953			(15.4)	%
Total Retail Consumer Voice Connections									2,963			3,604			(17.8)	%
1 Includes AIA.
	Fourth Quarter						Percent		Year Ended						Percent
	2024			2023			Change		2024			2023			Change
Broadband Net Additions
Total Broadband and DSL Net Additions	107			3			—	%	189			(101)			—	%
Broadband Net Additions1	123			19			—	%	258			(24)			—	%
Fiber Broadband Net Additions	307			273			12.5	%	1,024			1,092			(6.2)	%
1 Includes AIA.

8

LATIN AMERICA SEGMENT

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

Segment Results
Dollars in millions
Unaudited	Fourth Quarter						Percent		Year Ended						Percent
	2024			2023			Change		2024			2023			Change
Operating Revenues
Wireless service	$	634		$	671		(5.5)	%	$	2,668		$	2,569		3.9	%
Wireless equipment	410			419			(2.1)	%	1,564			1,363			14.7	%
Total Operating Revenues	1,044			1,090			(4.2)	%	4,232			3,932			7.6	%
Operating Expenses
Operations and support	873			953			(8.4)	%	3,535			3,349			5.6	%
Depreciation and amortization	150			180			(16.7)	%	657			724			(9.3)	%
Total Operating Expenses	1,023			1,133			(9.7)	%	4,192			4,073			2.9	%
Operating Income (Loss)	$	21		$	(43)		—	%	$	40		$	(141)		—	%
Operating Income Margin	2.0		%	(3.9)		%	590	BP	0.9		%	(3.6)		%	450	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,						Percent
									2024			2023			Change
Mexico Wireless Subscribers
Postpaid									5,837			5,236			11.5	%
Prepaid									17,486			16,663			4.9	%
Reseller									253			417			(39.3)	%
Total Mexico Wireless Subscribers									23,576			22,316			5.6	%
	Fourth Quarter						Percent		Year Ended						Percent
	2024			2023			Change		2024			2023			Change
Mexico Wireless Net Additions
Postpaid	204			151			35.1	%	601			311			93.2	%
Prepaid	490			450			8.9	%	823			459			79.3	%
Reseller	(29)			(39)			25.6	%	(164)			(57)			—	%
Total Mexico Wireless Net Additions	665			562			18.3	%	1,260			713			76.7	%

9

SUPPLEMENTAL SEGMENT RECONCILIATION

Three Months Ended
Dollars in millions
Unaudited
December 31, 2024
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	23,129	$	14,241	$	8,888	$	2,764	$	6,124
Business Wireline	4,545		3,348		1,197		1,408		(211)
Consumer Wireline	3,465		2,247		1,218		942		276
Total Communications	31,139		19,836		11,303		5,114		6,189
Latin America - Mexico	1,044		873		171		150		21
Segment Total	32,183		20,709		11,474		5,264		6,210
Corporate and Other
Corporate:
DTV-related retained costs	—		108		(108)		97		(205)
Parent administration support	(2)		486		(488)		1		(489)
Securitization fees	30		179		(149)		—		(149)
Value portfolio	87		25		62		2		60
Total Corporate	115		798		(683)		100		(783)
Certain significant items	—		91		(91)		10		(101)
Total Corporate and Other	115		889		(774)		110		(884)
AT&T Inc.	$	32,298	$	21,598	$	10,700	$	5,374	$	5,326
December 31, 2023
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	22,393	$	14,017	$	8,376	$	2,162	$	6,214
Business Wireline	5,052		3,518		1,534		1,369		165
Consumer Wireline	3,352		2,243		1,109		880		229
Total Communications	30,797		19,778		11,019		4,411		6,608
Latin America - Mexico	1,090		953		137		180		(43)
Segment Total	31,887		20,731		11,156		4,591		6,565
Corporate and Other
Corporate:
DTV-related retained costs	—		172		(172)		146		(318)
Parent administration support	6		377		(371)		2		(373)
Securitization fees	24		165		(141)		—		(141)
Value portfolio	105		22		83		6		77
Total Corporate	135		736		(601)		154		(755)
Certain significant items	—		518		(518)		21		(539)
Total Corporate and Other	135		1,254		(1,119)		175		(1,294)
AT&T Inc.	$	32,022	$	21,985	$	10,037	$	4,766	$	5,271

10

SUPPLEMENTAL SEGMENT RECONCILIATION

Year Ended
Dollars in millions
Unaudited
December 31, 2024
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	85,255	$	48,724	$	36,531	$	10,217	$	26,314
Business Wireline	18,819		13,352		5,467		5,555		(88)
Consumer Wireline	13,578		9,048		4,530		3,661		869
Total Communications	117,652		71,124		46,528		19,433		27,095
Latin America - Mexico	4,232		3,535		697		657		40
Segment Total	121,884		74,659		47,225		20,090		27,135
Corporate and Other
Corporate:
DTV-related retained costs	—		465		(465)		414		(879)
Parent administration support	(2)		1,722		(1,724)		6		(1,730)
Securitization fees	116		628		(512)		—		(512)
Value portfolio	338		102		236		17		219
Total Corporate	452		2,917		(2,465)		437		(2,902)
Certain significant items	—		5,131		(5,131)		53		(5,184)
Total Corporate and Other	452		8,048		(7,596)		490		(8,086)
AT&T Inc.	$	122,336	$	82,707	$	39,629	$	20,580	$	19,049
December 31, 2023
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	83,982	$	49,604	$	34,378	$	8,517	$	25,861
Business Wireline	20,883		14,217		6,666		5,377		1,289
Consumer Wireline	13,173		9,053		4,120		3,469		651
Total Communications	118,038		72,874		45,164		17,363		27,801
Latin America - Mexico	3,932		3,349		583		724		(141)
Segment Total	121,970		76,223		45,747		18,087		27,660
Corporate and Other
Corporate:
DTV-related retained costs	—		686		(686)		586		(1,272)
Parent administration support	(7)		1,416		(1,423)		6		(1,429)
Securitization fees	85		604		(519)		—		(519)
Value portfolio	380		99		281		22		259
Total Corporate	458		2,805		(2,347)		614		(2,961)
Certain significant items	—		1,162		(1,162)		76		(1,238)
Total Corporate and Other	458		3,967		(3,509)		690		(4,199)
AT&T Inc.	$	122,428	$	80,190	$	42,238	$	18,777	$	23,461

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