Segment Information [Text Block] | NOTE 4. SEGMENT INFORMATION Our segments are strategic business units that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We analyze our segments based on segment operating contribution, which consists of operating income, excluding acquisition-related costs and other significant items (as discussed below), and equity in net income (loss) of affiliates for investments managed within each segment. We have four reportable segments: (1) Communications, (2) WarnerMedia, (3) Latin America, and (4) Xandr. We also evaluate segment and business unit performance based on EBITDA and/or EBITDA margin. EBITDA is defined as operating contribution excluding equity in net income (loss) of affiliates and depreciation and amortization. We believe EBITDA to be a relevant and useful measurement to our investors as it is part of our internal management reporting and planning processes and it is an important metric that management uses to evaluate operating performance. 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 margin is EBITDA divided by total revenues. We have recast our segment results for all prior periods to exclude wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands from our Mobility and Business Wireline business units of the Communications segment, instead reporting them with Corporate and Other (see Note 6). The Communications segment provides wireless and wireline telecom, video and broadband services to consumers located in the U.S. and businesses globally. This segment contains the following business units: Mobility provides nationwide wireless service and equipment. Entertainment Group provides video, including OTT services, broadband and voice communications services primarily to residential customers. This segment also sells advertising on DIRECTV and U-verse distribution platforms. Business Wireline provides advanced IP-based services, as well as traditional voice and data services to business customers. The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. This segment contains the following business units: Turner primarily operates multichannel basic television networks and digital properties. Turner also sells advertising on its networks and digital properties. Home Box Office consists of premium pay television and OTT and streaming services domestically and premium pay, basic tier television and OTT and streaming services internationally, as well as content licensing and home entertainment. Warner Bros. consists of the production, distribution and licensing of television programming and feature films, the distribution of home entertainment products and the production and distribution of games. The Latin America segment provides entertainment and wireless services outside of the U.S. This segment contains the following business units: Mexico provides wireless service and equipment to customers in Mexico. Vrio provides video services primarily to residential customers using satellite technology in Latin America and the Caribbean. The Xandr segment provides advertising services. These services utilize data insights to develop higher-value targeted advertising across video and digital platforms. Certain revenues in this segment are also reported by the Communications segment and are eliminated upon consolidation. Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes, and includes: Corporate , which consists of: (1) businesses no longer integral to our operations or which we no longer actively market, (2) corporate support functions, (3) impacts of corporate-wide decisions for which the individual operating segments are not being evaluated, (4) the reclassification of the amortization of prior service credits, which we continue to report with segment operating expenses, to consolidated other income (expense) – net and (5) the recharacterization of programming intangible asset amortization, for released programming acquired in the Time Warner acquisition, which we continue to report within WarnerMedia segment operating expense, to consolidated amortization expense. The programming and intangible asset amortization reclass was $ 472 and $ 1,416 for the year ended December 31, 2019 and 2018, respectively. Acquisition-related items which consists of items associated with the merger and integration of acquired businesses, including amortization of intangible assets. Certain significant items includes (1) employee separation charges associated with voluntary and/or strategic offers, (2) losses resulting from abandonment or impairment of assets and (3) other items for which the segments are not being evaluated. Eliminations and consolidations , which (1) removes transactions involving dealings between our segments, including content licensing between WarnerMedia and Communications, and (2) includes adjustments for our reporting of the advertising business. Interest expense and other income (expense) – net, are managed only on a total company basis and are, accordingly, reflected only in consolidated results. For the year ended December 31, 2019 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Equity in Net Income (Loss) of Affiliates Segment Contribution Communications Mobility $ 71,056 $ 40,681 $ 30,375 $ 8,054 $ 22,321 $ - $ 22,321 Entertainment Group 45,126 35,028 10,098 5,276 4,822 - 4,822 Business Wireline 26,177 16,091 10,086 4,999 5,087 - 5,087 Total Communications 142,359 91,800 50,559 18,329 32,230 - 32,230 WarnerMedia Turner 13,122 7,740 5,382 235 5,147 52 5,199 Home Box Office 6,749 4,312 2,437 102 2,335 30 2,365 Warner Bros. 14,358 11,816 2,542 162 2,380 ( 30) 2,350 Other ( 730) ( 71) ( 659) 39 ( 698) 110 ( 588) Total WarnerMedia 33,499 23,797 9,702 538 9,164 162 9,326 Latin America Vrio 4,094 3,378 716 660 56 27 83 Mexico 2,869 3,085 ( 216) 502 ( 718) - ( 718) Total Latin America 6,963 6,463 500 1,162 ( 662) 27 ( 635) Xandr 2,022 646 1,376 58 1,318 - 1,318 Segment Total 184,843 122,706 62,137 20,087 42,050 $ 189 $ 42,239 Corporate and Other Corporate 1,675 3,008 ( 1,333) 629 ( 1,962) Acquisition-related items ( 72) 960 ( 1,032) 7,460 ( 8,492) Certain significant items - 2,082 ( 2,082) 43 ( 2,125) Eliminations and consolidations ( 5,253) ( 3,735) ( 1,518) ( 2) ( 1,516) AT&T Inc. $ 181,193 $ 125,021 $ 56,172 $ 28,217 $ 27,955 For the year ended December 31, 2018 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Equity in Net Income (Loss) of Affiliates Segment Contribution Communications Mobility $ 70,521 $ 40,690 $ 29,831 $ 8,263 $ 21,568 $ - $ 21,568 Entertainment Group 46,460 36,430 10,030 5,315 4,715 - 4,715 Business Wireline 26,740 16,201 10,539 4,714 5,825 - 5,825 Total Communications 143,721 93,321 50,400 18,292 32,108 - 32,108 WarnerMedia Turner 6,979 3,794 3,185 131 3,054 54 3,108 Home Box Office 3,598 2,187 1,411 56 1,355 29 1,384 Warner Bros. 8,703 7,130 1,573 96 1,477 ( 28) 1,449 Other ( 339) ( 145) ( 194) 22 ( 216) ( 30) ( 246) Total WarnerMedia 18,941 12,966 5,975 305 5,670 25 5,695 Latin America Vrio 4,784 3,743 1,041 728 313 34 347 Mexico 2,868 3,415 ( 547) 510 ( 1,057) - ( 1,057) Total Latin America 7,652 7,158 494 1,238 ( 744) 34 ( 710) Xandr 1,740 398 1,342 9 1,333 - 1,333 Segment Total 172,054 113,843 58,211 19,844 38,367 $ 59 $ 38,426 Corporate and Other Corporate 2,150 2,250 ( 100) 1,630 ( 1,730) Acquisition-related items ( 49) 1,185 ( 1,234) 6,931 ( 8,165) Certain significant items - 899 ( 899) 26 ( 925) Eliminations and consolidations ( 3,399) ( 1,947) ( 1,452) ( 1) ( 1,451) AT&T Inc. $ 170,756 $ 116,230 $ 54,526 $ 28,430 $ 26,096 For the year ended December 31, 2017 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Equity in Net Income (Loss) of Affiliates Segment Contribution Communications Mobility $ 70,259 $ 42,317 $ 27,942 $ 7,931 $ 20,011 $ - $ 20,011 Entertainment Group 49,995 38,903 11,092 5,621 5,471 - 5,471 Business Wireline 29,203 18,441 10,762 4,756 6,006 - 6,006 Total Communications 149,457 99,661 49,796 18,308 31,488 - 31,488 WarnerMedia Turner 430 331 99 4 95 45 140 Home Box Office - - - - - - - Warner Bros. - - - - - - - Other - 4 ( 4) - ( 4) ( 74) ( 78) Total WarnerMedia 430 335 95 4 91 ( 29) 62 Latin America Vrio 5,456 4,172 1,284 849 435 87 522 Mexico 2,813 3,232 ( 419) 369 ( 788) - ( 788) Total Latin America 8,269 7,404 865 1,218 ( 353) 87 ( 266) Xandr 1,373 169 1,204 2 1,202 - 1,202 Segment Total 159,529 107,569 51,960 19,532 32,428 $ 58 $ 32,486 Corporate and Other Corporate 2,443 3,911 ( 1,468) 214 ( 1,682) Acquisition-related items - 798 ( 798) 4,608 ( 5,406) Certain significant items ( 243) 3,880 ( 4,123) 33 ( 4,156) Eliminations and consolidations ( 1,183) 31 ( 1,214) - ( 1,214) AT&T Inc. $ 160,546 $ 116,189 $ 44,357 $ 24,387 $ 19,970 The following table is a reconciliation of operating income (loss) to Income Before Income Taxes reported in our consolidated statements of income: 2019 2018 2017 Communications $ 32,230 $ 32,108 $ 31,488 WarnerMedia 9,326 5,695 62 Latin America ( 635) ( 710) ( 266) Xandr 1,318 1,333 1,202 Segment Contribution 42,239 38,426 32,486 Reconciling Items: Corporate and Other ( 1,962) ( 1,730) ( 1,682) Merger and integration items ( 1,032) ( 1,234) ( 798) Amortization of intangibles acquired ( 7,460) ( 6,931) ( 4,608) Abandonments and impairments ( 1,458) ( 46) ( 2,914) Employee separation charges ( 624) ( 587) ( 445) Other noncash charges (credits), net ( 43) ( 111) 49 Natural disaster items - ( 181) ( 626) Tax reform special bonus - - ( 220) Segment equity in net income of affiliates ( 189) ( 59) ( 58) Eliminations and consolidations ( 1,516) ( 1,451) ( 1,214) AT&T Operating Income 27,955 26,096 19,970 Interest Expense 8,422 7,957 6,300 Equity in net income (loss) of affiliates 6 ( 48) ( 128) Other income (expense) - net ( 1,071) 6,782 1,597 Income Before Income Taxes $ 18,468 $ 24,873 $ 15,139 The following table sets forth revenues earned from customers, and property, plant and equipment located in different geographic areas. 2019 2018 2017 Revenues Net Property, Plant & Equipment Revenues Net Property, Plant & Equipment Revenues Net Property, Plant & Equipment United States $ 162,344 $ 122,567 $ 154,795 $ 123,457 $ 149,841 $ 118,200 Europe 6,137 1,854 4,073 1,634 1,064 392 Mexico 3,198 3,648 3,100 3,467 2,913 3,619 Brazil 2,761 1,057 2,724 1,213 2,948 1,447 All other Latin America 3,219 544 3,055 1,217 2,743 1,294 Asia/Pacific Rim 2,651 390 2,214 408 829 194 Other 883 68 795 77 208 76 Total $ 181,193 $ 130,128 $ 170,756 $ 131,473 $ 160,546 $ 125,222 The following tables present intersegment revenues, assets, investments in equity affiliates and capital expenditures by segment. Intersegment Reconciliation 2019 2018 2017 Intersegment revenues Communications $ 26 $ 13 $ - WarnerMedia 3,308 1,875 134 Latin America - - - Xandr 10 - - Total Intersegment Revenues 3,344 1,888 134 Consolidations 1,909 1,511 1,049 Eliminations and consolidations $ 5,253 $ 3,399 $ 1,183 At or for the years ended December 31, 2019 2018 Investments in Equity Method Investees Capital Expenditures Investments in Equity Method Investees Capital Expenditures Assets Assets Communications $ 521,252 $ - $ 17,410 $ 485,357 $ - $ 19,509 WarnerMedia 137,264 3,011 1,013 132,453 5,547 581 Latin America 20,606 650 757 18,148 677 745 Xandr 3,116 - 192 2,718 - 106 Corporate and eliminations ( 130,569) 34 263 ( 106,812) 21 310 Total $ 551,669 $ 3,695 $ 19,635 $ 531,864 $ 6,245 $ 21,251 |