UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549
______________________________________________________

FORM 8-K
______________________________________________________

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) January 24, 2024

______________________________________________________

AT&T INC.
(Exact Name of Registrant as Specified in Charter)
______________________________________________________

Delaware 001-08610 43-1301883

(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)

208 S. Akard St., Dallas, Texas 75202

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code (210) 821-4105

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act

Trading Name of each exchange
Title of each class Symbol(s) on which registered
Common Shares (Par Value $1.00 Per Share) T New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A T PRA New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C T PRC New York Stock Exchange
AT&T Inc. 2.400% Global Notes due March 15, 2024 T 24A New York Stock Exchange
AT&T Inc. Floating Rate Global Notes due March 6, 2025 T 25A New York Stock Exchange
AT&T Inc. 3.550% Global Notes due November 18, 2025 T 25B New York Stock Exchange
AT&T Inc. 3.500% Global Notes due December 17, 2025 T 25 New York Stock Exchange
AT&T Inc. 0.250% Global Notes due March 4, 2026 T 26E New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 5, 2026 T 26D New York Stock Exchange
AT&T Inc. 2.900% Global Notes due December 4, 2026 T 26A New York Stock Exchange
AT&T Inc. 1.600% Global Notes due May 19, 2028 T 28C New York Stock Exchange
AT&T Inc. 2.350% Global Notes due September 5, 2029 T 29D New York Stock Exchange
AT&T Inc. 4.375% Global Notes due September 14, 2029 T 29B New York Stock Exchange
 Trading Name of each exchange
Title of each class Symbol(s) on which registered
AT&T Inc. 2.600% Global Notes due December 17, 2029 T 29A New York Stock Exchange
AT&T Inc. 0.800% Global Notes due March 4, 2030 T 30B New York Stock Exchange
AT&T Inc. 3.950% Global Notes due April 30, 2031 T 31F New York Stock Exchange
AT&T Inc. 2.050% Global Notes due May 19, 2032 T 32A New York Stock Exchange
AT&T Inc. 3.550% Global Notes due December 17, 2032 T 32 New York Stock Exchange
AT&T Inc. 5.200% Global Notes due November 18, 2033 T 33 New York Stock Exchange
AT&T Inc. 3.375% Global Notes due March 15, 2034 T 34 New York Stock Exchange
AT&T Inc. 4.300% Global Notes due November 18, 2034 T 34C New York Stock Exchange
AT&T Inc. 2.450% Global Notes due March 15, 2035 T 35 New York Stock Exchange
AT&T Inc. 3.150% Global Notes due September 4, 2036 T 36A New York Stock Exchange
AT&T Inc. 2.600% Global Notes due May 19, 2038 T 38C New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 14, 2039 T 39B New York Stock Exchange
AT&T Inc. 7.000% Global Notes due April 30, 2040 T 40 New York Stock Exchange
AT&T Inc. 4.250% Global Notes due June 1, 2043 T 43 New York Stock Exchange
AT&T Inc. 4.875% Global Notes due June 1, 2044 T 44 New York Stock Exchange
AT&T Inc. 4.000% Global Notes due June 1, 2049 T 49A New York Stock Exchange
AT&T Inc. 4.250% Global Notes due March 1, 2050 T 50 New York Stock Exchange
AT&T Inc. 3.750% Global Notes due September 1, 2050 T 50A New York Stock Exchange
AT&T Inc. 5.350% Global Notes due November 1, 2066 TBB New York Stock Exchange
AT&T Inc. 5.625% Global Notes due August 1, 2067 TBC New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events.

Throughout this document, AT&T Inc. is referred to as “we” or “AT&T.” AT&T is a holding company whose subsidiaries and affiliates operate worldwide in
the telecommunications and technology industries.

Overview
We announced on January 24, 2024 that fourth-quarter 2023 income from continuing operations totaled $2.6 billion, or $0.30 per diluted share. Fourth-quarter
2023 earnings per diluted share includes amounts totaling to $(2.6) billion (pre-tax) resulting from the following significant items (per share): $(0.18) from a
loss on actuarial remeasurement of pension and postretirement benefit plan assets and obligations, $(0.06) from restructuring and impairment charges, $(0.03)
from our proportionate share of DIRECTV intangible amortization and $(0.01) of benefit related market-driven adjustments and other items, partially offset by
$0.04 of benefit from tax items. The results compare with a reported loss from continuing operations of $(23.1) billion, or $(3.20) per share, in the fourth
quarter of 2022, which included amounts totaling to $(29.4) billion (pre-tax) resulting from the following significant items (per share): $(3.57) of noncash
impairment, abandonment and restructuring charges, $(0.19) of actuarial losses, $(0.04) of DIRECTV intangible amortization, $(0.04) of other benefit related
market-driven adjustments, partially offset by $0.04 of benefits from tax items. The dilutive impact of $(0.01) per share from the adoption of Accounting
Standards Update (ASU) No. 2020-06 (ASU 2020-06) was not included in our computation of earnings per share in 2022 because its effect is antidilutive as a
result of the net loss. On April 5, 2023 we repurchased all outstanding AT&T Mobility II LLC preferred interests, and, as such, our calculation of diluted
earnings per share under U.S. generally accepted accounting principles (GAAP), beginning with the second quarter of 2023, no longer reflected the dilutive
potential of these instruments.

For the full year 2023, income from continuing operations was $15.6 billion versus a loss from continuing operations of $(6.9) billion in 2022. Full-year 2023
earnings per diluted share was $1.97 and included the following significant items (per share): $(0.18) from restructuring and impairment charges, $(0.17) from
a loss on actuarial remeasurement of pension and postretirement benefit plan assets, net of pension settlement gains, and obligations and $(0.14) from our
proportionate share of DIRECTV intangible amortization, partially offset by $0.04 of benefit from tax items and $0.01 of benefit related market-driven
adjustments and other items. Full-year 2022 loss per share was $(1.10) and included the following significant items (per share): $(3.59) of noncash impairment,
abandonment, and restructuring charges, $(0.16) of DIRECTV intangible amortization, $(0.19) of other benefit related market-driven adjustments, partially
offset by $0.20 of actuarial gains and $0.13 of benefit from tax items. The dilutive impact of $(0.06) per share from the adoption of ASU 2020-06 was not
included in our computation of earnings per share in 2022 because its effect is antidilutive as a result of the net loss.

Operating revenues in the fourth quarter of 2023 were $32.0 billion, up 2.2 percent from the fourth quarter of 2022, and full-year 2023 revenues were $122.4
billion, up 1.4 percent from the previous full year. Revenue increases for both periods reflect growth in Mobility and Consumer Wireline revenues, partially
offset by continued declines in Business Wireline. Revenue increases also reflect higher revenues in our Mexico business unit, including favorable impacts
from foreign exchange for the full year.

Operating expenses in the fourth quarter of 2023 were $26.8 billion, compared to $52.4 billion in the comparable 2022 period, and full-year 2023 operating
expenses were $99.0 billion, compared to $125.3 billion for the previous full year. The decrease in operating expenses in the fourth quarter were primarily due
to prior-year noncash goodwill impairment charges and benefits of our continued transformation efforts, including lower personnel costs in 2023, partially
offset by inflationary increases. The decrease was offset by higher equipment costs from the sale of higher-priced devices in Mobility and subscriber growth in
Mexico, and increased depreciation expense.

Full-year 2023 expense declines were primarily due to prior-year noncash goodwill impairment charges and benefits of our continued transformation efforts,
including lower personnel costs in 2023, partially offset by inflationary increases. The decrease also reflects lower equipment costs and associated selling costs
in Mobility, driven by lower device sales in 2023 and 3G network shutdown costs in the first quarter of 2022, higher returns on benefit-related assets and lower
customer support costs. Partially offsetting the decreases were higher amortization of deferred customer acquisition costs, unfavorable impact of foreign
exchange and increased depreciation expense.

Operating income in the fourth quarter of 2023 was $5.3 billion compared to loss of $(21.1) billion in the comparable 2022 period, and full-year 2023 operating
income was $23.5 billion compared to loss of $(4.6) billion for the full-year 2022. AT&T’s fourth-quarter operating income margin was 16.5 percent, compared
to (67.3) percent in the comparable 2022 period, and full-year 2023 operating income margin was 19.2 percent compared to (3.8) percent.

Other income (expense) - net in the fourth quarter of 2023 was $(0.9) billion compared to $(0.9) billion in the comparable 2022 period and full-year 2023 other
income (expense) - net was $1.4 billion compared to $5.8 billion for the full-year 2022. The fourth quarter reflects a slightly lower actuarial loss and higher
returns on benefit-related assets in 2023 offset by lower pension and postretirement credits and net losses on transactions. The full-year decrease reflects a $1.6
billion of net actuarial and

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settlement loss on pension and postretirement benefits in 2023 versus a $2.0 billion gain in the prior-year. Also contributing to the decrease was lower pension
and postretirement benefit credits in 2023, primarily driven by higher interest costs from discount rate increases, and a $0.5 billion impairment of an equity
method investment in the third quarter of 2023, partially offset by higher returns on other benefit-related assets.

Cash from operating activities for the full-year 2023 was $38.3 billion, up $2.5 billion when compared to 2022, due to operational growth and timing of
working capital, including lower device payments partially offset by lower receivable sales, and higher cash income tax payments. Cash from operating
activities in 2022 also included higher benefit plan contributions. Capital expenditures in 2023 were $17.9 billion, and when including $5.7 billion cash paid
for vendor financing, capital investment was $23.6 billion, compared to prior-year capital investment of $24.3 billion (capital expenditures of $19.6 billion and
cash paid for vendor financing of $4.7 billion).

Segment Summary
We analyze our segments based on segment operating income, which excludes acquisition-related costs and other significant items. Our reportable segments
are: Communications and Latin America.

Effective for the first quarter of 2023, we no longer record prior service credits to our individual business units or the corresponding charge to Corporate and
Other, and segment operating expenses were recast to remove prior service credits from our historical reporting. Prior service credits are, and will continue to
be, recorded as other income in our consolidated income statement in accordance with GAAP. This recast increased Communications segment operations and
support expenses by approximately $2.4 billion for full-year 2022. Correspondingly, this recast lowered administrative expenses within Corporate and Other,
with no change on a consolidated basis.

Communications
Our Communications segment consists of our Mobility, Business Wireline and Consumer Wireline business units.

Operating revenues for the fourth quarter of 2023 were $30.8 billion, up 1.4 percent versus fourth-quarter 2022, with segment operating income of $6.6 billion,
up 0.5 percent versus the year-ago quarter. The Communications segment operating income margin was 21.5 percent, compared to 21.7 percent in the year-
earlier quarter.

Mobility
Mobility revenues for the fourth quarter of 2023 were $22.4 billion, up 4.1 percent versus the fourth quarter of 2022, driven by service revenue growth of 3.9
percent from subscriber and postpaid phone ARPU growth, and higher equipment revenues from the sale of higher-priced devices. Mobility operating expenses
totaled $16.2 billion, up 3.4 percent versus the fourth quarter of 2022 due to increased network costs, higher amortization of deferred customer acquisition
costs, increased equipment expenses driven by the sale of higher-priced device and higher depreciation expense. Mobility’s operating income margin was 27.7
percent compared to 27.2 percent in the year-ago quarter.

In our Mobility business unit, during the fourth quarter of 2023, we reported a net gain of 5.9 million wireless subscribers. At December 31, 2023, wireless
subscribers totaled 241.5 million (including approximately 5.5 million FirstNet connections) compared to 217.4 million at December 31, 2022.

During the fourth quarter, total phone net adds (postpaid and prepaid) were 394,000, with total net adds by subscriber category as follows:
• Postpaid subscriber net adds were 759,000, with phone net adds of 526,000.
• Prepaid subscriber net losses were 135,000, with phone net losses of 132,000.
• Reseller net adds were 338,000.
• Connected device net adds were 5.0 million, 3.1 million of which were attributable to wholesale connected cars.

For the quarter ended December 31, 2023, postpaid phone-only ARPU increased 1.4 percent versus the year-earlier quarter.

Postpaid phone-only churn was unchanged at 0.84 percent compared to 0.84 percent in the fourth quarter of 2022. Total postpaid churn was also unchanged at
1.01 percent compared to 1.01 percent in the year-ago quarter.

Business Wireline
Business Wireline revenues for the fourth quarter of 2023 were $5.1 billion, down 10.3 percent versus the year-ago quarter, primarily due to lower demand for
legacy voice and data services as well as product simplification, partially offset by growth in connectivity services. Business Wireline operating expenses
totaled $4.9 billion, down 4.1 percent when compared to the fourth quarter of 2022 due to lower personnel costs associated with ongoing transformation
initiatives and lower wholesale network access costs. Business Wireline operating income margin was 3.3 percent compared to 9.6 percent in the year-earlier
quarter.

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Consumer Wireline
Consumer Wireline revenues for the fourth quarter of 2023 were $3.4 billion, up 3.8 percent versus the year-ago quarter, driven by growth in broadband
revenues attributable to fiber growth, partially offset by declines in legacy voice and data services and other services. Consumer Wireline operating expenses
totaled $3.1 billion, up 2.7 percent versus the fourth quarter of 2022, primarily due to increased network-related costs as our fiber build scales, higher selling
costs and higher depreciation expenses, partially offset by lower customer support costs. Consumer Wireline operating income margin was 6.8 percent
compared to 5.8 percent in the year-earlier quarter.

At December 31, 2023, Consumer Wireline had approximately 13.7 million broadband connections compared to 13.8 million at December 31, 2022. During
the fourth quarter, broadband subscriber net adds were 19,000, with fiber broadband net adds of 273,000. Total broadband and DSL connections were 13.9
million at December 31, 2023, compared to 14.0 million at December 31, 2022.

Latin America
Our Latin America segment consists of our Mexico business unit and is subject to foreign currency fluctuations.

Fourth-quarter 2023 operating revenues were $1.1 billion, up 26.6 percent when compared to the fourth quarter of 2022, primarily due to favorable impacts of
foreign exchange rates and subscriber growth, which contributed to higher equipment and service revenue. Operating expenses were $1.1 billion, up 20.5
percent, driven by unfavorable impact of foreign exchange rates and higher equipment sales attributable to subscriber growth. Mexico’s operating income
margin was (3.9) percent, compared to (9.2) percent in the year-earlier quarter.

We had approximately 22.3 million Mexico wireless subscribers at December 31, 2023 compared to 21.6 million at December 31, 2022. During the fourth
quarter of 2023, we had prepaid net adds of 450,000 and postpaid net adds of 151,000.

CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS

Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. A discussion of
factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or
revise statements contained in this filing based on new information or otherwise.

Item 9.01 Financial Statements and Exhibits.

The following exhibits are filed as part of this report:

(d) Exhibits

99.1 AT&T Inc. selected financial statements and operating data.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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 Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.

AT&T INC.

Date: January 24, 2024 By: /s/ Sabrina Sanders .

Sabrina Sanders
Senior Vice President - Chief Accounting Officer
and Controller

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AT&T Inc.
Financial Data

Consolidated Statements of Income

Dollars in millions except per share amounts
Unaudited Fourth Quarter Percent Year Ended Percent
2023 2022 Change 2023 2022 Change
Operating Revenues
Service $ 25,070 $ 24,833 1.0 % $ 99,649 $ 97,831 1.9 %
Equipment 6,952 6,510 6.8 % 22,779 22,910 (0.6)%
Total Operating Revenues 32,022 31,343 2.2 % 122,428 120,741 1.4 %

Operating Expenses
Cost of revenues
Equipment 7,203 6,999 2.9 % 23,136 24,009 (3.6)%
Other cost of revenues (exclusive of depreciation and
amortization shown separately below) 6,708 6,572 2.1 % 26,987 26,839 0.6 %
Selling, general and administrative 7,485 7,516 (0.4)% 28,874 28,961 (0.3)%
Asset impairments and abandonments
and restructuring 589 26,753 (97.8)% 1,193 27,498 (95.7)%
Depreciation and amortization 4,766 4,595 3.7 % 18,777 18,021 4.2 %
Total Operating Expenses 26,751 52,435 (49.0)% 98,967 125,328 (21.0)%
Operating Income (Loss) 5,271 (21,092) —% 23,461 (4,587) —%
Interest Expense 1,726 1,560 10.6 % 6,704 6,108 9.8 %
Equity in Net Income of Affiliates 337 374 (9.9)% 1,675 1,791 (6.5)%
Other Income (Expense) — Net (946) (919) (2.9)% 1,416 5,810 (75.6)%
Income (Loss) from Continuing Operations
Before Income Taxes 2,936 (23,197) —% 19,848 (3,094) —%
Income tax expense (benefit) on continuing
operations 354 (77) —% 4,225 3,780 11.8 %
Income (Loss) From Continuing Operations 2,582 (23,120) —% 15,623 (6,874) —%
Loss from discontinued operations, net of tax — (35) —% — (181) —%
Net Income (Loss) 2,582 (23,155) —% 15,623 (7,055) —%
Less: Net Income Attributable to
Noncontrolling Interest (394) (362) (8.8)% (1,223) (1,469) 16.7 %
Net Income (Loss) Attributable to AT&T $ 2,188 $ (23,517) —%$ 14,400 $ (8,524) —%
Less: Preferred Stock Dividends (53) (54) 1.9 % (208) (203) (2.5)%
Net Income (Loss) Attributable to Common Stock $ 2,135 $ (23,571) —%$ 14,192 $ (8,727) —%

Basic Earnings (Loss) Per Share Attributable to

Common Stock
From continuing operations $ 0.30 $ (3.20) —%$ 1.97 $ (1.10) —%
From discontinued operations $ — $ — —%$ — $ (0.03) —%
$ 0.30 $ (3.20) —%$ 1.97 $ (1.13) —%
Weighted Average Common Shares
Outstanding (000,000) 7,190 7,157 0.5 % 7,181 7,166 0.2 %
Diluted Earnings (Loss) Per Share Attributable to
Common Stock
From continuing operations $ 0.30 $ (3.20) —%$ 1.97 $ (1.10) —%
From discontinued operations $ — $ — —%$ — $ (0.03) —%
$ 0.30 $ (3.20) —%$ 1.97 $ (1.13) —%
Weighted Average Common Shares
Outstanding with Dilution (000,000) 7,191 7,533 (4.5)% 7,258 7,587 (4.3)%

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AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Unaudited Dec. 31, Dec. 31,
2023 2022
Assets
Current Assets
Cash and cash equivalents $ 6,722 $ 3,701
Accounts receivable – net of related allowance for credit loss of $499 and $588 10,289 11,466
Inventories 2,177 3,123
Prepaid and other current assets 17,270 14,818
Total current assets 36,458 33,108
Property, Plant and Equipment – Net 128,489 127,445
Goodwill – Net 67,854 67,895
Licenses – Net 127,219 124,092
Other Intangible Assets – Net 5,283 5,354
Investments in and Advances to Equity Affiliates 1,251 3,533
Operating Lease Right-Of-Use Assets 20,905 21,814
Other Assets 19,601 19,612
Total Assets $ 407,060 $ 402,853
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year $ 9,477 $ 7,467
Note payable to DIRECTV — 130
Accounts payable and accrued liabilities 35,852 42,644
Advanced billings and customer deposits 3,778 3,918
Dividends payable 2,020 2,014
Total current liabilities 51,127 56,173
Long-Term Debt 127,854 128,423
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes 58,666 57,032
Postemployment benefit obligation 8,734 7,260
Operating lease liabilities 17,568 18,659
Other noncurrent liabilities 23,696 28,849
Total deferred credits and other noncurrent liabilities 108,664 111,800
Redeemable Noncontrolling Interest 1,973 —
Stockholders’ Equity
Preferred stock — —
Common stock 7,621 7,621
Additional paid-in capital 114,519 123,610
Retained (deficit) earnings (5,015) (19,415)
Treasury stock (16,128) (17,082)
Accumulated other comprehensive income 2,300 2,766
Noncontrolling interest 14,145 8,957
Total stockholders’ equity 117,442 106,457
Total Liabilities and Stockholders’ Equity $ 407,060 $ 402,853

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AT&T Inc.
Financial Data

Consolidated Statements of Cash Flows

Dollars in millions
Unaudited Year Ended
2023 2022
Operating Activities
Income (loss) from continuing operations $ 15,623 $ (6,874)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by
operating activities from continuing operations:
Depreciation and amortization 18,777 18,021
Provision for uncollectible accounts 1,969 1,865
Deferred income tax expense 3,037 2,975
Net (gain) loss on investments, net of impairments 441 381
Pension and postretirement benefit expense (credit) (2,552) (3,237)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net 1,594 (1,999)
Asset impairments and abandonments and restructuring 1,193 27,498
Changes in operating assets and liabilities:
Receivables 82 727
Other current assets (642) (674)
Accounts payable and other accrued liabilities (1,764) (1,109)
Equipment installment receivables and related sales (133) 154
Deferred customer contract acquisition and fulfillment costs 1 (947)
Postretirement claims and contributions (735) (823)
Other - net 1,423 (146)
Total adjustments 22,691 42,686
Net Cash Provided by Operating Activities from Continuing Operations 38,314 35,812
Investing Activities
Capital expenditures (17,853) (19,626)
Acquisitions, net of cash acquired (2,942) (10,200)
Dispositions 72 199
Distributions from DIRECTV in excess of cumulative equity in earnings 2,049 2,649
(Purchases), sales and settlements of securities and investments - net (902) 82
Other - net (84) (3)
Net Cash Used in Investing Activities from Continuing Operations (19,660) (26,899)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less (914) (519)
Issuance of other short-term borrowings 5,406 3,955
Repayment of other short-term borrowings (3,415) (18,345)
Issuance of long-term debt 10,004 2,979
Repayment of long-term debt (12,044) (25,118)
Repayment of note payable to DIRECTV (130) (1,211)
Payment of vendor financing (5,742) (4,697)
Purchase of treasury stock (194) (890)
Issuance of treasury stock 3 28
Issuance of preferred interests in subsidiary 7,151 —
Redemption of preferred interests in subsidiary (5,333) (2,665)
Dividends paid (8,136) (9,859)
Other - net (2,270) (3,222)
Net Cash Used in Financing Activities from Continuing Operations (15,614) (59,564)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations 3,040 (50,651)
Cash flows from Discontinued Operations:
Cash (used in) provided by operating activities — (3,789)
Cash provided by investing activities — 1,094
Cash provided by (used in) financing activities — 35,823
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations — 33,128
Net increase (decrease) in cash and cash equivalents and restricted cash $ 3,040 $ (17,523)
Cash and cash equivalents and restricted cash beginning of year 3,793 21,316
Cash and Cash Equivalents and Restricted Cash End of Year $ 6,833 $ 3,793

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AT&T Inc.
Consolidated Supplementary Data

Supplementary Financial Data

Dollars in millions except per share amounts
Unaudited Fourth Quarter Percent Year Ended Percent
2023 2022 Change 2023 2022 Change
Capital expenditures
Purchase of property and equipment $ 4,558 $ 4,179 9.1 % $ 17,674 $ 19,452 (9.1) %
Interest during construction 43 50 (14.0)% 179 174 2.9 %
Total Capital Expenditures $ 4,601 $ 4,229 8.8 % $ 17,853 $ 19,626 (9.0) %

Acquisitions, net of cash acquired

Business acquisitions $ — $ — —%$ — $ — — %
Spectrum acquisitions 1,938 4 —% 2,247 9,080 (75.3) %
Interest during construction - spectrum 81 237 (65.8)% 695 1,120 (37.9) %
Total Acquisitions $ 2,019 $ 241 —%$ 2,942 $ 10,200 (71.2) %

Cash paid for interest - continuing operations $ 1,667 $ 1,791 (6.9)% $ 7,370 $ 7,772 (5.2) %

Cash paid for income taxes, net of refunds -

continuing operations $ 841 $ 192 —%$ 1,599 $ 592 — %

Dividends Declared per Common Share $ 0.2775 $ 0.2775 —%$ 1.11 $ 1.11 — %

End of Period Common Shares Outstanding (000,000) 7,150 7,128 0.3 %

Debt Ratio 53.5 % 56.1 % (260) BP
Total Employees 150,470 162,920 (7.6) %

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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.

Results have been recast to remove prior service credits from our historical reporting.
Segment Results
Dollars in millions
Unaudited Fourth Quarter Percent Year Ended Percent
2023 2022 Change 2023 2022 Change
Segment Operating Revenues
Mobility $ 22,393 $ 21,501 4.1 % $ 83,982 $ 81,780 2.7 %
Business Wireline 5,052 5,635 (10.3)% 20,883 22,538 (7.3)%
Consumer Wireline 3,352 3,229 3.8 % 13,173 12,749 3.3 %
Total Segment Operating Revenues 30,797 30,365 1.4 % 118,038 117,067 0.8 %

Segment Operating Income

Mobility 6,214 5,849 6.2 % 25,861 23,812 8.6 %
Business Wireline 165 540 (69.4)% 1,289 2,290 (43.7)%
Consumer Wireline 229 188 21.8 % 651 634 2.7 %
Total Segment Operating Income $ 6,608 $ 6,577 0.5 % $ 27,801 $ 26,736 4.0 %

Supplementary Operating Data

Subscribers and connections in thousands
Unaudited December 31, Percent
2023 2022 Change
Broadband Connections
Broadband 15,078 15,075 —%
DSL 210 311 (32.5)%
Total Broadband Connections 15,288 15,386 (0.6)%

Voice Connections
Retail Switched Access Lines 4,185 5,213 (19.7)%
VoIP Connections 2,558 2,930 (12.7)%
Total Retail Voice Connections 6,743 8,143 (17.2)%

Fourth Quarter Percent Year Ended Percent

2023 2022 Change 2023 2022 Change
Broadband Net Additions
Broadband 13 (37) —% 3 1 —%
DSL (21) (29) 27.6 % (101) (119) 15.1 %
Total Broadband Net Additions (8) (66) 87.9 % (98) (118) 16.9 %

5
Mobility
Mobility provides nationwide wireless service and equipment.
Mobility Results
Dollars in millions
Unaudited Fourth Quarter Percent Year Ended Percent
2023 2022 Change 2023 2022 Change
Operating Revenues
Service $ 16,039 $ 15,434 3.9 % $ 63,175 $ 60,499 4.4 %
Equipment 6,354 6,067 4.7 % 20,807 21,281 (2.2) %
Total Operating Revenues 22,393 21,501 4.1 % 83,982 81,780 2.7 %

Operating Expenses
Operations and support 14,017 13,572 3.3 % 49,604 49,770 (0.3) %
Depreciation and amortization 2,162 2,080 3.9 % 8,517 8,198 3.9 %
Total Operating Expenses 16,179 15,652 3.4 % 58,121 57,968 0.3 %
Operating Income $ 6,214 $ 5,849 6.2 % $ 25,861 $ 23,812 8.6 %

Operating Income Margin 27.7 % 27.2 % 50 BP 30.8 % 29.1 % 170 BP

Supplementary Operating Data

Subscribers and connections in thousands
Unaudited December 31, Percent
2023 2022 Change
Mobility Subscribers
Postpaid 87,104 84,700 2.8 %
Postpaid phone 71,255 69,596 2.4 %
Prepaid 19,236 19,176 0.3 %
Reseller 7,468 6,043 23.6 %
Connected Devices 127,724 107,478 18.8 %
Total Mobility Subscribers1 241,532 217,397 11.1 %
1
Wireless subscribers at December 31, 2023 includes an increase of 295 subscribers and connections (206 postpaid, including 74 phone, and 89 connected devices) resulting
from our 3G network shutdown in February 2022.

Fourth Quarter Percent Year Ended Percent

2023 2022 Change 2023 2022 Change
Mobility Net Additions
Postpaid Phone Net Additions 526 656 (19.8) % 1,744 2,868 (39.2) %
Total Phone Net Additions 394 643 (38.7) % 1,801 3,272 (45.0) %

Postpaid 759 1,104 (31.3) % 2,315 4,091 (43.4) %

Prepaid (135) (9) — % 128 479 (73.3) %
Reseller 338 150 — % 1,279 462 — %
Connected Devices 4,985 5,118 (2.6) % 20,118 20,594 (2.3) %
Total Mobility Net Additions 5,947 6,363 (6.5) % 23,840 25,626 (7.0) %

Postpaid Churn 1.01 % 1.01 % — BP 0.98 % 0.97 % 1 BP

Postpaid Phone-Only Churn 0.84 % 0.84 % — BP 0.81 % 0.81 % — BP

6
Business Wireline

Business Wireline provides advanced ethernet-based fiber 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
2023 2022 Change 2023 2022 Change
Operating Revenues
Service $ 4,873 $ 5,473 (11.0) % $ 20,274 $ 21,891 (7.4) %
Equipment 179 162 10.5 % 609 647 (5.9) %
Total Operating Revenues 5,052 5,635 (10.3) % 20,883 22,538 (7.3) %

Operating Expenses
Operations and support 3,518 3,735 (5.8) % 14,217 14,934 (4.8) %
Depreciation and amortization 1,369 1,360 0.7 % 5,377 5,314 1.2 %
Total Operating Expenses 4,887 5,095 (4.1) % 19,594 20,248 (3.2) %
Operating Income $ 165 $ 540 (69.4) % $ 1,289 $ 2,290 (43.7) %

Operating Income Margin 3.3 % 9.6 % (630) BP 6.2 % 10.2 % (400) BP

7
Consumer Wireline

Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services to residential customers in select locations and our
fixed wireless access product that provides home internet services delivered over our 5G wireless network. Consumer Wireline also provides legacy telephony
voice communication services.
Consumer Wireline Results
Dollars in millions
Unaudited Fourth Quarter Percent Year Ended Percent
2023 2022 Change 2023 2022 Change
Operating Revenues
Broadband $ 2,700 $ 2,492 8.3 %$ 10,455 $ 9,669 8.1 %
Legacy voice and data services 361 414 (12.8) % 1,508 1,746 (13.6) %
Other service and equipment 291 323 (9.9) % 1,210 1,334 (9.3) %
Total Operating Revenues 3,352 3,229 3.8 % 13,173 12,749 3.3 %

Operating Expenses
Operations and support 2,243 2,223 0.9 % 9,053 8,946 1.2 %
Depreciation and amortization 880 818 7.6 % 3,469 3,169 9.5 %
Total Operating Expenses 3,123 3,041 2.7 % 12,522 12,115 3.4 %
Operating Income $ 229 $ 188 21.8 %$ 651 $ 634 2.7 %

Operating Income Margin 6.8 % 5.8 % 100 BP 4.9 % 5.0 % (10) BP

Supplementary Operating Data

Subscribers and connections in thousands
Unaudited December 31, Percent
2023 2022 Change
Broadband Connections
Total Broadband and DSL Connections 13,890 13,991 (0.7) %
Broadband1 13,729 13,753 (0.2) %
Fiber Broadband Connections 8,307 7,215 15.1 %

Voice Connections
Retail Consumer Switched Access Lines 1,651 2,028 (18.6) %
Consumer VoIP Connections 1,953 2,311 (15.5) %
Total Retail Consumer Voice Connections 3,604 4,339 (16.9) %
1
Includes AT&T Internet Air

Fourth Quarter Percent Year Ended Percent

2023 2022 Change 2023 2022 Change
Broadband Net Additions
Total Broadband and DSL Net Additions 3 (64) — % (101) (169) 40.2 %
Broadband Net Additions1 19 (43) — % (24) (92) 73.9 %
Fiber Broadband Net Additions 273 280 (2.5) % 1,092 1,223 (10.7) %
1
Includes AT&T Internet Air

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
2023 2022 Change 2023 2022 Change
Operating Revenues
Wireless service $ 671 $ 579 15.9 % $ 2,569 $ 2,162 18.8 %
Wireless equipment 419 282 48.6 % 1,363 982 38.8 %
Total Operating Revenues 1,090 861 26.6 % 3,932 3,144 25.1 %

Operating Expenses
Operations and support 953 776 22.8 % 3,349 2,812 19.1 %
Depreciation and amortization 180 164 9.8 % 724 658 10.0 %
Total Operating Expenses 1,133 940 20.5 % 4,073 3,470 17.4 %
Operating Income (Loss) $ (43) $ (79) 45.6 % $ (141) $ (326) 56.7 %

Operating Income Margin (3.9)% (9.2)% 530 BP (3.6)% (10.4)% 680 BP

Supplementary Operating Data

Subscribers and connections in thousands
Unaudited December 31, Percent
2023 2022 Change
Mexico Wireless Subscribers
Postpaid 5,236 4,925 6.3 %
Prepaid 16,663 16,204 2.8 %
Reseller 417 474 (12.0) %
Total Mexico Wireless Subscribers 22,316 21,603 3.3 %

Fourth Quarter Percent Year Ended Percent

2023 2022 Change 2023 2022 Change
Mexico Wireless Net Additions
Postpaid 151 71 — % 311 118 — %
Prepaid 450 515 (12.6) % 459 1,147 (60.0) %
Reseller (39) 19 — % (57) (24) — %
Total Mexico Wireless Net Additions 562 605 (7.1) % 713 1,241 (42.5) %

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SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended
Dollars in millions
Unaudited
December 31, 2023
Operations Depreciation
and Support and Operating
Revenues Expenses EBITDA Amortization 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

December 31, 2022

Operations and Depreciation and Operating Income
Revenues Support Expenses EBITDA Amortization (Loss)
Communications
Mobility $ 21,501 $ 13,572 $ 7,929 $ 2,080 $ 5,849
Business Wireline 5,635 3,735 1,900 1,360 540
Consumer Wireline 3,229 2,223 1,006 818 188
Total Communications 30,365 19,530 10,835 4,258 6,577
Latin America - Mexico 861 776 85 164 (79)
Segment Total 31,226 20,306 10,920 4,422 6,498
Corporate and Other
Corporate:
DTV-related retained costs — 244 (244) 141 (385)
Parent administration support (8) 373 (381) 4 (385)
Securitization fees 17 156 (139) — (139)
Value portfolio 108 33 75 12 63
Total Corporate 117 806 (689) 157 (846)
Certain significant items — 26,728 (26,728) 16 (26,744)
Total Corporate and Other 117 27,534 (27,417) 173 (27,590)
AT&T Inc. $ 31,343 $ 47,840 $ (16,497) $ 4,595 $ (21,092)

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SUPPLEMENTAL SEGMENT RECONCILIATION
Year Ended
Dollars in millions
Unaudited
December 31, 2023
Operations Depreciation
and Support and Operating
Revenues Expenses EBITDA Amortization 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

December 31, 2022

Operations and Depreciation and Operating Income
Revenues Support Expenses EBITDA Amortization (Loss)
Communications
Mobility $ 81,780 $ 49,770 $ 32,010 $ 8,198 $ 23,812
Business Wireline 22,538 14,934 7,604 5,314 2,290
Consumer Wireline 12,749 8,946 3,803 3,169 634
Total Communications 117,067 73,650 43,417 16,681 26,736
Latin America - Mexico 3,144 2,812 332 658 (326)
Segment Total 120,211 76,462 43,749 17,339 26,410
Corporate and Other
Corporate:
DTV-related retained costs 8 878 (870) 549 (1,419)
Parent administration support (32) 1,378 (1,410) 16 (1,426)
Securitization fees 65 419 (354) — (354)
Value portfolio 489 139 350 41 309
Total Corporate 530 2,814 (2,284) 606 (2,890)
Certain significant items — 28,031 (28,031) 76 (28,107)
Total Corporate and Other 530 30,845 (30,315) 682 (30,997)
AT&T Inc. $ 120,741 $ 107,307 $ 13,434 $ 18,021 $ (4,587)

11