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 three reportable segments: (1) Communications, (2) WarnerMedia and (3) Latin America. We have recast our segment results for all prior periods to include our prior Xandr segment within our WarnerMedia segment. We also evaluate segment and business unit performance based on EBITDA and/or EBITDA margin, which 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. 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 over-the-top (OTT) services, broadband and voice communications services primarily to residential customers. This segment also sells advertising on 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. Historical financial results from Xandr, previously a separate reportable segment, have been combined with the WarnerMedia segment within Eliminations and other. 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 services internationally, as well as content licensing and home entertainment. Warner Bros. primarily 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: Vrio provides video services primarily to residential customers using satellite technology in Latin America and the Caribbean. Mexico provides wireless service and equipment to customers in Mexico. 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, and (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.” 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 of network assets and impairments 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 three months ended June 30, 2020 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Equity in Net Income (Loss) of Affiliates Segment Contribution Communications Mobility $ 17,149 $ 9,332 $ 7,817 $ 2,012 $ 5,805 $ - $ 5,805 Entertainment Group 10,069 7,730 2,339 1,309 1,030 - 1,030 Business Wireline 6,374 3,779 2,595 1,318 1,277 - 1,277 Total Communications 33,592 20,841 12,751 4,639 8,112 - 8,112 WarnerMedia Turner 2,988 1,347 1,641 69 1,572 - 1,572 Home Box Office 1,627 1,489 138 25 113 ( 5) 108 Warner Bros. 3,256 2,583 673 40 633 ( 19) 614 Eliminations and other ( 1,057) ( 685) ( 372) 33 ( 405) 28 ( 377) Total WarnerMedia 6,814 4,734 2,080 167 1,913 4 1,917 Latin America Vrio 752 661 91 127 ( 36) 8 ( 28) Mexico 480 538 ( 58) 115 ( 173) - ( 173) Total Latin America 1,232 1,199 33 242 ( 209) 8 ( 201) Segment Total 41,638 26,774 14,864 5,048 9,816 $ 12 $ 9,828 Corporate and Other Corporate 437 933 ( 496) 93 ( 589) Acquisition-related items - 211 ( 211) 2,145 ( 2,356) Certain significant items - 3,084 ( 3,084) - ( 3,084) Eliminations and consolidations ( 1,125) ( 869) ( 256) ( 1) ( 255) AT&T Inc. $ 40,950 $ 30,133 $ 10,817 $ 7,285 $ 3,532 For the three months ended June 30, 2019 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Equity in Net Income (Loss) of Affiliates Segment Contribution Communications Mobility $ 17,292 $ 9,522 $ 7,770 $ 2,003 $ 5,767 $ - $ 5,767 Entertainment Group 11,368 8,515 2,853 1,339 1,514 - 1,514 Business Wireline 6,607 3,975 2,632 1,242 1,390 - 1,390 Total Communications 35,267 22,012 13,255 4,584 8,671 - 8,671 WarnerMedia Turner 3,410 2,217 1,193 39 1,154 11 1,165 Home Box Office 1,716 1,131 585 12 573 15 588 Warner Bros. 3,389 2,918 471 31 440 - 440 Eliminations and other 320 170 150 22 128 29 157 Total WarnerMedia 8,835 6,436 2,399 104 2,295 55 2,350 Latin America Vrio 1,032 881 151 165 ( 14) 12 ( 2) Mexico 725 813 ( 88) 119 ( 207) - ( 207) Total Latin America 1,757 1,694 63 284 ( 221) 12 ( 209) Segment Total 45,859 30,142 15,717 4,972 10,745 $ 67 $ 10,812 Corporate and Other Corporate 450 765 ( 315) 170 ( 485) Acquisition-related items ( 30) 316 ( 346) 1,960 ( 2,306) Certain significant items - 94 ( 94) - ( 94) Eliminations and consolidations ( 1,322) ( 961) ( 361) ( 1) ( 360) AT&T Inc. $ 44,957 $ 30,356 $ 14,601 $ 7,101 $ 7,500 For the six months ended June 30, 2020 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Equity in Net Income (Loss) of Affiliates Segment Contribution Communications Mobility $ 34,551 $ 18,901 $ 15,650 $ 4,057 $ 11,593 $ - $ 11,593 Entertainment Group 20,584 15,621 4,963 2,598 2,365 - 2,365 Business Wireline 12,706 7,730 4,976 2,619 2,357 - 2,357 Total Communications 67,841 42,252 25,589 9,274 16,315 - 16,315 WarnerMedia Turner 6,150 3,057 3,093 138 2,955 6 2,961 Home Box Office 3,124 2,542 582 46 536 15 551 Warner Bros. 6,496 5,533 963 81 882 ( 27) 855 Eliminations and other ( 1,108) ( 711) ( 397) 65 ( 462) 25 ( 437) Total WarnerMedia 14,662 10,421 4,241 330 3,911 19 3,930 Latin America Vrio 1,639 1,444 195 274 ( 79) 12 ( 67) Mexico 1,183 1,252 ( 69) 249 ( 318) - ( 318) Total Latin America 2,822 2,696 126 523 ( 397) 12 ( 385) Segment Total 85,325 55,369 29,956 10,127 19,829 $ 31 $ 19,860 Corporate and Other Corporate 825 1,807 ( 982) 180 ( 1,162) Acquisition-related items - 393 ( 393) 4,201 ( 4,594) Certain significant items - 2,426 ( 2,426) - ( 2,426) Eliminations and consolidations ( 2,421) ( 1,791) ( 630) ( 1) ( 629) AT&T Inc. $ 83,729 $ 58,204 $ 25,525 $ 14,507 $ 11,018 For the six months ended June 30, 2019 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Equity in Net Income (Loss) of Affiliates Segment Contribution Communications Mobility $ 34,655 $ 19,563 $ 15,092 $ 4,016 $ 11,076 $ - $ 11,076 Entertainment Group 22,696 17,042 5,654 2,662 2,992 - 2,992 Business Wireline 13,085 8,007 5,078 2,464 2,614 - 2,614 Total Communications 70,436 44,612 25,824 9,142 16,682 - 16,682 WarnerMedia Turner 6,853 4,353 2,500 99 2,401 36 2,437 Home Box Office 3,226 2,052 1,174 34 1,140 30 1,170 Warner Bros. 6,907 5,837 1,070 83 987 6 993 Eliminations and other 654 347 307 44 263 50 313 Total WarnerMedia 17,640 12,589 5,051 260 4,791 122 4,913 Latin America Vrio 2,099 1,747 352 334 18 12 30 Mexico 1,376 1,538 ( 162) 250 ( 412) - ( 412) Total Latin America 3,475 3,285 190 584 ( 394) 12 ( 382) Segment Total 91,551 60,486 31,065 9,986 21,079 $ 134 $ 21,213 Corporate and Other Corporate 883 1,426 ( 543) 374 ( 917) Acquisition-related items ( 72) 389 ( 461) 3,948 ( 4,409) Certain significant items - 342 ( 342) - ( 342) Eliminations and consolidations ( 2,578) ( 1,899) ( 679) ( 1) ( 678) AT&T Inc. $ 89,784 $ 60,744 $ 29,040 $ 14,307 $ 14,733 The following table is a reconciliation of Segment Contributions to “Income Before Income Taxes” reported on our consolidated statements of income: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Communications $ 8,112 $ 8,671 $ 16,315 $ 16,682 WarnerMedia 1,917 2,350 3,930 4,913 Latin America ( 201) ( 209) ( 385) ( 382) Segment Contribution 9,828 10,812 19,860 21,213 Reconciling Items: Corporate and Other ( 589) ( 485) ( 1,162) ( 917) Merger and integration items ( 211) ( 346) ( 393) ( 461) Amortization of intangibles acquired ( 2,145) ( 1,960) ( 4,201) ( 3,948) Impairments ( 2,319) - ( 2,442) - Gain on spectrum transaction 1 - - 900 - Employee separation costs and benefit-related losses ( 765) ( 94) ( 884) ( 342) Segment equity in net income of affiliates ( 12) ( 67) ( 31) ( 134) Eliminations and consolidations ( 255) ( 360) ( 629) ( 678) AT&T Operating Income 3,532 7,500 11,018 14,733 Interest Expense 2,041 2,149 4,059 4,290 Equity in net income (loss) of affiliates ( 10) 40 ( 16) 33 Other income (expense) - net 1,017 ( 318) 1,820 ( 32) Income Before Income Taxes $ 2,498 $ 5,073 $ 8,763 $ 10,444 1 Included as a reduction of "Selling, general and administrative expenses" in the consolidated statement of income. The following table presents intersegment revenues by segment: Intersegment Reconciliation Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Intersegment Revenues Communications $ 2 $ 8 $ 4 $ 8 WarnerMedia 774 861 1,591 1,719 Latin America - - - - Total Intersegment Revenues 776 869 1,595 1,727 Consolidations 349 453 826 851 Eliminations and consolidations $ 1,125 $ 1,322 $ 2,421 $ 2,578 |