sec-show (4)

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) October 19, 2023
______________________________________________________
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. Floating Rate Global Notes due September 5, 2023 T 23D New York Stock Exchange
AT&T Inc. 1.050% Global Notes due September 5, 2023 T 23E New York Stock Exchange
AT&T Inc. 1.300% Global Notes due September 5, 2023 T 23A New York Stock Exchange
Trading Name of each exchange
Title of each class Symbol(s) on which registered
AT&T Inc. 1.950% Global Notes due September 15, 2023 T 23F 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
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. 2.600% 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. 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 2.02 Results of Operations and Financial Condition.
The registrant announced on October 19, 2023, its results of operations for the third quarter of 2023. The text of the press release and accompanying financial
information are attached as exhibits and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are furnished as part of this report:
(d) Exhibits
99.1 Press release dated October 19, 2023 reporting financial results for the third quarter ended September 30, 2023.
99.2 AT&T Inc. selected financial statements and operating data.
99.3 Discussion and reconciliation of non-GAAP measures.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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: October 19, 2023 By: /s/ Sabrina Sanders .

Sabrina Sanders
Senior Vice President - Chief Accounting Officer
and Controller
AT&T Raises Full-Year Adjusted EBITDA and Free Cash Flow Guidance Driven by
Continued Subscriber and Revenue Growth
The company’s 5G and fiber momentum helped drive high-quality, profitable customer growth, low churn and improved
financial performance
DALLAS, October 19, 2023 — AT&T Inc. (NYSE: T) again delivered strong results in the third quarter with solid 5G and
fiber subscriber growth. The company also posted healthy year over year increases in Mobility service and broadband
revenues, driving higher profitability.
Strong third-quarter results build on momentum

• Revenues of $30.4 billion, up 1% year over year
• Cash from operating activities of $10.3 billion, up $0.2 billion or 2.4% year over year; year-to-date, cash from
operating activities is up $1.5 billion versus the same period a year ago.
• Free cash flow* of $5.2 billion, up $1.3 billion year over year; year-to-date, free cash flow is up $2.4 billion
versus the same period a year ago.
• The company now expects full-year free cash flow* of about $16.5 billion, versus prior guidance of $16
billion or better.
• Operating income of $5.8 billion, with adjusted operating income* of $6.5 billion
“Our investments in best-in-class 5G and fiber connectivity are fueling our growth engine. We’re gaining profitable
customer relationships and becoming more efficient. This is powering our strong business performance and gives us the
confidence to raise our full-year free cash flow guidance,” said John Stankey, AT&T CEO. “We are pleased that
customers are choosing AT&T and staying with us over the long run as we connect and simplify their digital world.”
Sustainable strategy creates foundation for durable, long-term growth
• Delivered 468,000 postpaid phone net adds with continued strong ARPU growth and historically low levels
of churn
• Mobility service revenues up 3.7%; achieved company’s best-ever Mobility operating income
• 296,000 AT&T Fiber net adds
• Consumer broadband revenues up 9.8%, driven by AT&T Fiber revenue growth of 26.9%
• Surpassed 8 million AT&T Fiber subscribers; doubled customer base in less than 4 years
• Launched AT&T Internet Air fixed wireless residential service; expect to be in 30+ locations by the end of the
year
* Further clarification and explanation of non-GAAP measures and reconciliations to their most comparable GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to GAAP
Measures” section of the release and at https://investors.att.com.
© 2023 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.
A leading investor in America’s broadband infrastructure
• Continued to enhance the largest wireless network in North America1 and expand the most reliable 5G network1
as we scale our 5G standalone; mid-band 5G spectrum now covers more than 190 million people, on track to
reach 200 million people or more with mid-band 5G by year-end
• Grew the nation’s largest consumer fiber network, which is now capable of serving 20.7 million consumers and
about 3.3 million business customer locations; on track to pass 30 million+ fiber locations by the end of 2025
• Supported AST SpaceMobile in world’s-first direct 5G voice call between two unmodified smartphones via a
low-earth orbit satellite in space
Becoming more efficient and effective through innovation

• Strong early progress on achieving an incremental $2 billion+ run-rate cost savings target within the next three
years
Note: AT&T’s third-quarter earnings conference call will be webcast at 8:30 a.m. ET on Thursday, October 19, 2023. The
webcast and related materials, including financial highlights, will be available on AT&T’s Investor Relations website at
https://investors.att.com.
Consolidated Financial Results
Revenues for the third quarter totaled $30.4 billion versus $30.0 billion in the year-ago quarter, up 1.0%. This
increase primarily reflects higher Mobility, Mexico and Consumer Wireline revenues, partly offset by lower Business
Wireline revenues. Revenue increases also reflect favorable impacts of foreign exchange rates in Mexico.
Page 2
Operating expenses were $24.6 billion versus $24.0 billion in the year-ago quarter, reflecting higher severance and
restructuring charges and continued inflationary cost increases in the third quarter of 2023, partially offset by
continued transformation efforts. Operating expense increases also reflect increased depreciation expense, higher
network costs, unfavorable impact of foreign exchange rates, and increased amortization of deferred customer
acquisition costs. These increases were partially offset by lower Mobility equipment and associated selling costs from
lower wireless sales volumes, and lower personnel costs.
Operating income was $5.8 billion versus $6.0 billion in the year-ago quarter. When adjusting for certain items,
adjusted operating income* was $6.5 billion versus $6.2 billion in the year-ago quarter.
The company now expects full-year Adjusted EBITDA* growth of better than 4%, versus prior guidance of 3%+.
Equity in net income of affiliates was $0.4 billion, primarily from the DIRECTV investment. With an adjustment for
our proportionate share of intangible amortization, adjusted equity in net income from the DIRECTV investment* was
$0.7 billion.
Income from continuing operations was $3.8 billion, versus $6.3 billion in the year-ago quarter. Earnings per
diluted common share from continuing operations2 was $0.48 versus $0.79 in the year-ago quarter. Adjusting for
$0.16, which includes severance and restructuring charges, an impairment of an equity investment in a Latin America
satellite business, our proportionate share of intangible amortization from the DIRECTV equity method investment
and an actuarial gain on benefit plans and other items, earnings per diluted common share from continuing
operations* was $0.64 compared to $0.68 in the year-ago quarter.
Cash from operating activities from continuing operations was $10.3 billion, up $0.2 billion year over year,
reflecting operational growth and timing of working capital, including lower device payments partially offset by a lower
net impact from receivable sales. Capital expenditures were $4.6 billion in the quarter versus $5.9 billion in the
year-ago quarter. Capital investment*, which includes $1.0 billion of cash payments for vendor financing, totaled
$5.6 billion.
Free cash flow* was $5.2 billion for the quarter. Total debt was $138.0 billion at the end of the quarter, and net
debt* was $128.7 billion. The company expects to achieve net debt-to-adjusted EBITDA* in the 2.5x range in the
first half of 2025.
Page 3
Communications Operational Highlights
Third-quarter revenues were $29.2 billion, up 0.4% year over year due to increases in Mobility and Consumer
Wireline, which more than offset a decline in Business Wireline. Operating income was $7.3 billion, up 4.1% year
over year, with operating income margin of 24.9%, compared to 24.0% in the year-ago quarter.
Mobility
• Revenues were up 2.0% year over year to $20.7 billion due to higher service revenues. Service revenues
were $15.9 billion, up 3.7% year over year, primarily driven by subscriber and postpaid phone ARPU growth.
Equipment revenues were $4.8 billion, down 3.2% year over year due to lower device volumes.
• Operating expenses were $13.9 billion, down 0.9% year over year, primarily due to lower equipment costs
and associated selling expenses driven by lower device sales, partly offset by higher network and customer
support costs, increased amortization of deferred customer acquisition costs and higher depreciation expense.
• Operating income was $6.8 billion, up 8.6% year over year. Operating income margin was 32.7%,
compared to 30.7% in the year-ago quarter.
• EBITDA* was $8.9 billion, up 7.6% year over year with EBITDA margin* of 43.0%, up from 40.8% in the year-
ago quarter. This was the company’s best-ever quarterly Mobility EBITDA*. EBITDA service margin* was
55.9%, up from 53.9% in the year-ago quarter.
• Total wireless net adds were 6.6 million, including:
o 550,000 postpaid net adds with:
o 468,000 postpaid phone net adds
o (48,000) postpaid tablet and other branded computing device net losses
o 130,000 other net adds
o 26,000 prepaid phone net adds
• Postpaid churn improved to 0.95% versus 1.01% in the year-ago quarter.
• Postpaid phone churn improved to 0.79% versus 0.84% in the year-ago quarter.
• Prepaid churn was 2.78%, with Cricket substantially lower, versus 2.83% in the year-ago quarter.
• Postpaid phone ARPU was $55.99, up 0.6% versus the year-ago quarter, due to pricing actions, higher
international roaming and a mix shift to higher-priced unlimited plans.
• FirstNet connections reached about 5.3 million across nearly 27,000 agencies. FirstNet is the nationwide
communications platform dedicated to public safety. The AT&T and FirstNet networks cover more than 99% of
the U.S. population, and FirstNet covers more first responders than any other network in America.
Page 4
Business Wireline
• Revenues were $5.2 billion, down 7.9% year over year due to lower demand for legacy voice and data
services and product simplification, partly offset by growth in connectivity services. This quarter also included
approximately $100 million in revenues from intellectual property sales, which were relatively consistent with
the prior year.
• Operating expenses were $4.9 billion, down 3.5% year over year due to lower personnel costs associated
with ongoing transformation initiatives, and lower wholesale network access, customer support and marketing
expenses.
• Operating income was $350 million, down 43.6%, with operating income margin of 6.7% compared to
11.0% in the year-ago quarter.
• EBITDA* was $1.7 billion, down 13.7% year over year with EBITDA margin* of 32.5%, compared to 34.6% in
the year-ago quarter. The company now expects full-year Business Wireline EBITDA* declines in the low-
double digits, versus prior guidance of high-single digit declines.
• AT&T Business serves the largest global companies, government agencies and small businesses. More than
800,000 U.S. business buildings are lit with fiber from AT&T, enabling high-speed fiber connections to
approximately 3.3 million U.S. business customer locations. Nationwide, more than 10 million business
customer locations are on or within 1,000 feet of our fiber.3
Consumer Wireline
• Revenues were $3.3 billion, up 4.6% year over year due to gains in broadband more than offsetting declines
in legacy voice and data and other services. Broadband revenues increased 9.8% due to fiber growth of
26.9%, partly offset by a 9.0% decline in non-fiber revenues. The company now expects full-year broadband
revenue growth of 7%+, versus prior guidance of 5%+.
• Operating expenses were $3.2 billion, up 4.2% year over year due to higher depreciation expense and
higher network-related costs, partly offset by lower customer support costs.
• Operating income was $160 million, up 12.7% year over year with operating income margin of 4.8%,
compared to 4.5% in the year-ago quarter.
• EBITDA* was $1.0 billion, up 9.4% year over year with EBITDA margin* of 31.0%, up from 29.6% in the year-
ago quarter.
• Total broadband net gains, excluding DSL and including AT&T Internet Air, were 15,000, reflecting AT&T
Fiber net adds of 296,000, more than offsetting losses in non-fiber services. AT&T Fiber is now capable of
serving 20.7 million customer locations and offers symmetrical, multi-gig speeds across parts of its entire
footprint of more than 100 metro areas.
Page 5
Latin America – Mexico Operational Highlights
Revenues were $992 million, up 26.4% year over year due to growth in both service and equipment revenues.
Service revenues were $672 million, up 20.2% year over year, driven by favorable foreign exchange and essentially
stable subscriber and wholesale revenues. Equipment revenues were $320 million, up 41.6% year over year due to
higher sales and favorable foreign exchange.
Operating loss was ($29) million compared to ($63) million in the year-ago quarter. EBITDA* was $155 million
compared to $101 million in the year-ago quarter.
Total wireless net adds were 65,000, including 17,000 prepaid net adds, 55,000 postpaid net adds and 7,000
reseller net losses.
FirstNet and the FirstNet logo are registered trademarks and service marks of the First Responder Network Authority. All other marks are the property of their respective owners.
1
Based on comparison of carrier owned & operated networks. No AT&T on-net coverage in select countries, including Canada. Details: https://www.att.com/international/.
Destinations covered: att.com/globalcountries. 5G claim based on nationwide GWS drive test data. GWS conducts paid drive tests for AT&T and uses the data in its analysis. AT&T
5G requires compatible plan and device. 5G coverage not available everywhere. Learn more at att.com/5Gforyou
2
Diluted Earnings per Common Share from continuing operations is calculated using Income (Loss) from Continuing Operations, less Net Income Attributable to Noncontrolling
Interest and Preferred Stock Dividends and adjustment for distributions on Mobility II preferred interests (prior to redemption) and share-based payments (when not antidilutive),
divided by the weighted average common shares outstanding for the period.
3 The approximately 3.3 million U.S. business customer locations are included within the 10+ million U.S. business customer locations on or within 1,000 feet of our fiber.
About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to
greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we
@ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com.
Investors can learn more at investors.att.com.
Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other forward-looking statements that are
subject to risks and uncertainties, and actual results might differ materially. 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 and revise statements contained in this news release based on new information or otherwise. This news release
may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the
GAAP financial measures are available on the company’s website at https://investors.att.com.
Page 6
Non-GAAP Measures and Reconciliations to GAAP Measures
Schedules and reconciliations of non-GAAP financial measures cited in this document to the most directly comparable financial measures under
generally accepted accounting principles (GAAP) can be found at https://investors.att.com and in our Form 8-K dated October 19, 2023. Free
cash flow, EBITDA, adjusted EBITDA, adjusted operating income, adjusted diluted EPS, net debt and net debt-to-adjusted EBITDA are non-
GAAP financial measures frequently used by investors and credit rating agencies.
Free cash flow for 3Q23 of $5.2 billion is cash from operating activities from continuing operations of $10.3 billion, plus cash distributions from
DIRECTV classified as investing activities of $0.5 billion, minus capital expenditures of $4.6 billion and cash paid for vendor financing of
$1.0 billion.
For 3Q23 year-to-date, free cash flow of $10.4 billion is cash from operating activities from continuing operations of $26.9 billion, plus cash
distributions from DIRECTV classified as investing activities of $1.4 billion, minus capital expenditures of $13.3 billion and cash paid for vendor
financing of $4.7 billion.
For 3Q22 year-to-date, free cash flow of $8.0 billion is cash from operating activities from continuing operations of $25.5 billion, plus
cash distributions from DIRECTV classified as investing activities of $2.2 billion, minus capital expenditures of $15.4 billion and cash
paid for vendor financing of $4.2 billion.
Due to high variability and difficulty in predicting items that impact cash from operating activities, cash distributions from DIRECTV,
capital expenditures and vendor financing payments, the company is not able to provide a reconciliation between projected free cash
flow and the most comparable GAAP metric without unreasonable effort.
Adjusted Operating Income is operating income adjusted for revenues and costs we consider non-operational in nature, including items arising
from asset acquisitions or dispositions. For 3Q23, adjusted operating income of $6.5 billion is calculated as operating income of $5.8 billion plus
$737 million of adjustments. For 3Q22, adjusted operating income of $6.2 billion is calculated as operating income of $6.0 billion plus
$204 million of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our
Form 8-K dated October 19, 2023.
EBITDA is operating income before depreciation and amortization. EBITDA margin is operating income before depreciation and amortization,
divided by total revenues. EBITDA service margin is operating income before depreciation and amortization, divided by total service revenues.
Adjusted EBITDA is calculated by excluding from operating revenues and operating expenses certain significant items that are non-
operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments
and impairment, benefit-related gains and losses, employee separation and other material gains and losses.
Adjusted EBITDA and Business Wireline EBITDA estimates depend on future levels of revenues and expenses which are not
reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected Business Wireline EBITDA or
projected adjusted EBITDA and the most comparable GAAP metrics without unreasonable effort.
Adjusted Equity in Net Income from DIRECTV investment of $0.7 billion for 3Q23 is calculated as equity income from DIRECTV of
$0.4 billion reported in Equity in Net Income of Affiliates and excludes $0.3 billion of AT&T’s proportionate share of the non-cash depreciation and
amortization of fair value accretion from DIRECTV’s revaluation of assets and purchase price allocation, which we consider to be non-
operational in nature.
Adjusted diluted EPS from continuing operations includes adjusting items to revenues and costs that we consider non-operational in nature,
including items arising from asset acquisitions or dispositions, including the amortization of intangible assets. While the expense associated with
the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure
and those assets contribute to revenue generation.
Page 7
We 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. 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%.
For 3Q23, Adjusted EPS from continuing operations of $0.64 is Diluted EPS from continuing operations of $0.48 adjusted for $0.11 restructuring
and impairments, $0.03 proportionate share of intangible amortization at the DIRECTV equity method investment, and $0.03 benefit-related,
transaction and other costs, minus $0.01 actuarial gain on benefit plans.
For 3Q22, Adjusted EPS from continuing operations of $0.68 is Diluted EPS from continuing operations of $0.79 adjusted for $0.04
proportionate share of intangible amortization at the DIRECTV equity method investment, $0.06 benefit-related, transaction and other
costs, $0.02 dilutive impact of Accounting Standards Update No. 2020-06, and $0.01 restructuring and impairments, minus $0.14
actuarial gain on benefit plans and $0.10 tax-related items.
Capital investment is a non-GAAP financial measure that provides an additional view of cash paid for capital investment to provide a
comprehensive view of cash used to invest in our networks, product developments and support systems. 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. Capital investment includes capital
expenditures and cash paid for vendor financing ($1.0 billion in 3Q23).
Net Debt of $128.7 billion at September 30, 2023, is calculated as Total Debt of $138.0 billion less Cash and Cash Equivalents of $7.5 billion
and Time Deposits (i.e. deposits at financial institutions that are greater than 90 days) of $1.8 billion.
Net debt-to-adjusted EBITDA is calculated by dividing net debt by the sum of the most recent four quarters of adjusted EBITDA. Net debt is
calculated by subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of
deposit and time deposits), from the sum of debt maturing within one year and long-term debt.
Adjusted EBITDA is calculated as defined above. Net debt and adjusted EBITDA estimates depend on future levels of revenues, expenses and
other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected net debt-to-
adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort.
For more information, contact:

Brittany Siwald
AT&T Inc.
Phone: (214) 202-6630
Email: brittany.a.siwald@att.com
Page 8
AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited Third Quarter Percent Nine-Month Period Percent
2023 2022 Change 2023 2022 Change
Operating Revenues
Service $ 25,112 $ 24,731 1.5 % $ 74,579 $ 72,998 2.2 %
Equipment 5,238 5,312 (1.4)% 15,827 16,400 (3.5)%
Total Operating Revenues 30,350 30,043 1.0 % 90,406 89,398 1.1 %
Operating Expenses
Cost of revenues
Equipment 5,219 5,440 (4.1)% 15,933 17,010 (6.3)%
Other cost of revenues (exclusive of depreciation
and amortization shown separately below) 6,835 6,761 1.1 % 20,279 20,267 0.1 %
Selling, general and administrative 7,205 7,202 —% 21,389 21,445 (0.3)%
Asset impairments and abandonments
and restructuring 604 114 —% 604 745 (18.9)%
Depreciation and amortization 4,705 4,514 4.2 % 14,011 13,426 4.4 %
Total Operating Expenses 24,568 24,031 2.2 % 72,216 72,893 (0.9)%
Operating Income 5,782 6,012 (3.8)% 18,190 16,505 10.2 %
Interest Expense 1,662 1,420 17.0 % 4,978 4,548 9.5 %
Equity in Net Income of Affiliates 420 392 7.1 % 1,338 1,417 (5.6)%
Other Income (Expense) — Net 440 2,270 (80.6)% 2,362 6,729 (64.9)%
Income from Continuing Operations
Before Income Taxes 4,980 7,254 (31.3)% 16,912 20,103 (15.9)%
Income tax expense on continuing operations 1,154 908 27.1 % 3,871 3,857 0.4 %
Income From Continuing Operations 3,826 6,346 (39.7)% 13,041 16,246 (19.7)%
Income (loss) from discontinued operations, net of tax — 53 —% — (146) —%
Net Income 3,826 6,399 (40.2)% 13,041 16,100 (19.0)%
Less: Net Income Attributable to Noncontrolling
Interest (331) (373) 11.3 % (829) (1,107) 25.1 %
Net Income Attributable to AT&T $ 3,495 $ 6,026 (42.0)% $ 12,212 $ 14,993 (18.5)%
Less: Preferred Stock Dividends (51) (49) (4.1)% (155) (149) (4.0)%
Net Income Attributable to Common Stock $ 3,444 $ 5,977 (42.4)% $ 12,057 $ 14,844 (18.8)%
Basic Earnings (Loss) Per Share Attributable to

Common Stock
From continuing operations $ 0.48 $ 0.82 (41.5)% $ 1.67 $ 2.08 (19.7)%
From discontinued operations $ — $ 0.01 —%$ — $ (0.02) —%
$ 0.48 $ 0.83 (42.2)% $ 1.67 $ 2.06 (18.9)%
Weighted Average Common Shares
Outstanding (000,000) 7,185 7,153 0.4 % 7,178 7,169 0.1 %
Diluted Earnings (Loss) Per Share Attributable to
Common Stock
From continuing operations $ 0.48 $ 0.79 (39.2)% $ 1.67 $ 2.03 (17.7)%
From discontinued operations $ — $ 0.01 —%$ — $ (0.02) —%
$ 0.48 $ 0.80 (40.0)% $ 1.67 $ 2.01 (16.9)%
Weighted Average Common Shares
Outstanding with Dilution (000,000) 7,185 7,647 (6.0)% 7,280 7,605 (4.3)%
1
AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Unaudited Sep. 30, Dec. 31,
2023 2022
Assets
Current Assets
Cash and cash equivalents $ 7,540 $ 3,701
Accounts receivable – net of related allowances for credit loss of $484 and $588 8,962 11,466
Inventories 2,520 3,123
Prepaid and other current assets 16,598 14,818
Total current assets 35,620 33,108
Property, Plant and Equipment – Net 128,496 127,445
Goodwill – Net 67,854 67,895
Licenses – Net 127,113 124,092
Other Intangible Assets – Net 5,332 5,354
Investments in and Advances to Equity Affiliates 1,847 3,533
Operating Lease Right-Of-Use Assets 21,001 21,814
Other Assets 19,435 19,612
Total Assets $ 406,698 $ 402,853
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year $ 11,302 $ 7,467
Note payable to DIRECTV — 130
Accounts payable and accrued liabilities 34,659 42,644
Advanced billings and customer deposits 3,703 3,918
Dividends payable 2,020 2,014
Total current liabilities 51,684 56,173
Long-Term Debt 126,701 128,423
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes 58,671 57,032
Postemployment benefit obligation 6,494 7,260
Operating lease liabilities 17,730 18,659
Other noncurrent liabilities 25,591 28,849
Total deferred credits and other noncurrent liabilities 108,486 111,800
Redeemable Noncontrolling Interest 1,972 —
Stockholders’ Equity
Preferred stock — —
Common stock 7,621 7,621
Additional paid-in capital 116,890 123,610
Retained (deficit) earnings (7,203) (19,415)
Treasury stock (16,150) (17,082)
Accumulated other comprehensive income 2,545 2,766
Noncontrolling interest 14,152 8,957
Total stockholders’ equity 117,855 106,457
Total Liabilities and Stockholders’ Equity $ 406,698 $ 402,853
2
AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows

Dollars in millions
Unaudited Nine-Month Period
2023 2022
Operating Activities
Income from continuing operations $ 13,041 $ 16,246
Adjustments to reconcile income from continuing operations to net cash provided by
operating activities from continuing operations:
Depreciation and amortization 14,011 13,426
Provision for uncollectible accounts 1,409 1,323
Deferred income tax expense 3,163 2,947
Net (gain) loss on investments, net of impairments 335 412
Pension and postretirement benefit expense (credit) (1,966) (2,529)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net (145) (3,838)
Asset impairments and abandonments and restructuring 604 745
Changes in operating assets and liabilities:
Receivables 1,173 1,021
Other current assets 57 (799)
Accounts payable and other accrued liabilities (5,062) (3,261)
Equipment installment receivables and related sales (56) 906
Deferred customer contract acquisition and fulfillment costs 47 (756)
Postretirement claims and contributions (715) (443)
Other - net 1,040 64
Total adjustments 13,895 9,218
Net Cash Provided by Operating Activities from Continuing Operations 26,936 25,464
Investing Activities
Capital expenditures (13,252) (15,397)
Acquisitions, net of cash acquired (923) (9,959)
Dispositions 66 49
Distributions from DIRECTV in excess of cumulative equity in earnings 1,447 2,205
(Purchases), sales and settlements of securities and investments - net (1,043) 93
Other - net (81) (2)
Net Cash Used in Investing Activities from Continuing Operations (13,786) (23,011)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less (914) 84
Issuance of other short-term borrowings 5,406 3,955
Repayment of other short-term borrowings (979) (16,861)
Issuance of long-term debt 9,633 479
Repayment of long-term debt (11,889) (24,412)
Repayment of note payable to DIRECTV (130) (1,070)
Payment of vendor financing (4,736) (4,237)
Purchase of treasury stock (190) (875)
Issuance of treasury stock 3 28
Issuance of preferred interests in subsidiary 7,151 —
Redemption of preferred interests in subsidiary (5,333) —
Dividends paid (6,116) (7,845)
Other - net (1,190) (3,649)
Net Cash Used in Financing Activities from Continuing Operations (9,284) (54,403)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations 3,866 (51,950)
Cash flows from Discontinued Operations:
Cash (used in) provided by operating activities — (3,754)
Cash provided by (used in) investing activities — 1,029
Cash provided by (used in) financing activities — 35,853
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 $ 3,866 $ (18,822)
Cash and cash equivalents and restricted cash beginning of year 3,793 21,316
Cash and Cash Equivalents and Restricted Cash End of Period $ 7,659 $ 2,494
3
AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data

Dollars in millions except per share amounts
2023 2022 Change 2023 2022 Change
Capital expenditures
Purchase of property and equipment $ 4,601 $ 5,874 (21.7)% $ 13,116 $ 15,273 (14.1) %
Interest during construction - capital expenditures 46 47 (2.1)% 136 124 9.7 %
Total Capital Expenditures $ 4,647 $ 5,921 (21.5)% $ 13,252 $ 15,397 (13.9) %
Acquisitions, net of cash acquired

Business acquisitions $ — $ — —%$ — $ — — %
Spectrum acquisitions 241 111 —% 309 9,076 (96.6) %
Interest during construction - spectrum 167 278 (39.9)% 614 883 (30.5) %
Total Acquisitions $ 408 $ 389 4.9 % $ 923 $ 9,959 (90.7) %
Cash paid for interest - continuing operations $ 2,099 $ 1,953 7.5 % $ 5,703 $ 5,981 (4.6) %
Cash paid for income taxes, net of refunds - continuing

operations $ 423 $ 62 —%$ 758 $ 400 89.5 %
Dividends Declared per Common Share $ 0.2775 $ 0.2775 —%$ 0.8325 $ 0.8325 — %
End of Period Common Shares Outstanding (000,000) 7,150 7,126 0.3 %

Debt Ratio 53.5 % 48.8 % 470 BP
Total Employees 152,740 169,880 (10.1) %
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.
Results have been recast to remove prior service credits from our historical reporting.
Segment Results
Dollars in millions
2023 2022 Change 2023 2022 Change
Segment Operating Revenues
Mobility $ 20,692 $ 20,278 2.0 % $ 61,589 $ 60,279 2.2 %
Business Wireline 5,221 5,668 (7.9)% 15,831 16,903 (6.3)%
Consumer Wireline 3,331 3,185 4.6 % 9,821 9,520 3.2 %
Total Segment Operating Revenues 29,244 29,131 0.4 % 87,241 86,702 0.6 %
Segment Operating Income

Mobility 6,763 6,226 8.6 % 19,647 17,963 9.4 %
Business Wireline 350 621 (43.6)% 1,124 1,750 (35.8)%
Consumer Wireline 160 142 12.7 % 422 446 (5.4)%
Total Segment Operating Income $ 7,273 $ 6,989 4.1 % $ 21,193 $ 20,159 5.1 %
Supplementary Operating Data

Subscribers and connections in thousands
Unaudited September 30, Percent
2023 2022 Change
Broadband Connections
Broadband 15,065 15,112 (0.3)%
DSL 231 340 (32.1)%
Total Broadband Connections 15,296 15,452 (1.0)%
Voice Connections
Retail Consumer Switched Access Lines 4,421 5,466 (19.1)%
Consumer VoIP Connections 2,649 3,022 (12.3)%
Total Retail Consumer Voice Connections 7,070 8,488 (16.7)%
Third Quarter Percent Nine-Month Period Percent

2023 2022 Change 2023 2022 Change
Broadband Net Additions
Broadband 20 (24) —% (10) 38 —%
DSL (28) (33) 15.2 % (80) (90) 11.1 %
Total Broadband Net Additions (8) (57) 86.0 % (90) (52) (73.1)%
5
Mobility
Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
2023 2022 Change 2023 2022 Change
Operating Revenues
Service $ 15,908 $ 15,337 3.7 % $ 47,136 $ 45,065 4.6 %
Equipment 4,784 4,941 (3.2) % 14,453 15,214 (5.0) %
Operating Expenses
Operations and support 11,795 12,010 (1.8) % 35,587 36,198 (1.7) %
Total Operating Expenses 13,929 14,052 (0.9) % 41,942 42,316 (0.9) %
Operating Income $ 6,763 $ 6,226 8.6 % $ 19,647 $ 17,963 9.4 %
Operating Income Margin 32.7 % 30.7 % 200 BP 31.9 % 29.8 % 210 BP

2023 2022 Change
Mobility Subscribers
Postpaid 86,365 83,614 3.3 %
Postpaid phone 70,757 68,969 2.6 %
Prepaid 19,391 19,215 0.9 %
Reseller 7,101 5,854 21.3 %
Connected Devices 122,728 101,995 20.3 %
Total Mobility Subscribers1 235,585 210,678 11.8 %
1
Wireless subscribers at September 30, 2023 includes an increase of 295 subscribers and connections (206 postpaid, including 74 phone, and 89 connected devices) resulting
from our 3G network shutdown.

2023 2022 Change 2023 2022 Change
Mobility Net Additions
Postpaid Phone Net Additions 468 708 (33.9) % 1,218 2,212 (44.9) %
Total Phone Net Additions 494 816 (39.5) % 1,407 2,629 (46.5) %
Postpaid 550 964 (42.9) % 1,556 2,987 (47.9) %

Prepaid 56 141 (60.3) % 263 488 (46.1) %
Reseller 401 308 30.2 % 941 312 — %
Connected Devices 5,547 5,716 (3.0) % 15,133 15,476 (2.2) %
Total Mobility Net Additions 6,554 7,129 (8.1) % 17,893 19,263 (7.1) %
Postpaid Churn 0.95 % 1.01 % (6) BP 0.97 % 0.96 % 1 BP

Postpaid Phone-Only Churn 0.79 % 0.84 % (5) BP 0.80 % 0.79 % 1 BP
6
Business Wireline
Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, as well as traditional voice and data services
and related equipment to business customers.
Business Wireline Results
Dollars in millions
2023 2022 Change 2023 2022 Change
Operating Revenues
Service $ 5,087 $ 5,524 (7.9) % $ 15,401 $ 16,418 (6.2) %
Equipment 134 144 (6.9) % 430 485 (11.3) %
Total Operating Revenues 5,221 5,668 (7.9) % 15,831 16,903 (6.3) %
Operating Expenses
Operations and support 3,526 3,705 (4.8) % 10,699 11,199 (4.5) %
Total Operating Expenses 4,871 5,047 (3.5) % 14,707 15,153 (2.9) %
Operating Income $ 350 $ 621 (43.6) % $ 1,124 $ 1,750 (35.8) %
Operating Income Margin 6.7 % 11.0 % (430) BP 7.1 % 10.4 % (330) BP
7
Consumer Wireline
Consumer Wireline provides broadband services, including fiber connections that provide our multi-gig services to residential customers in select locations.
Consumer Wireline also provides legacy telephony voice communication services.
Consumer Wireline Results
Dollars in millions
2023 2022 Change 2023 2022 Change
Operating Revenues
Broadband $ 2,667 $ 2,429 9.8 %$ 7,755 $ 7,177 8.1 %
Legacy voice and data services 368 427 (13.8) % 1,147 1,332 (13.9) %
Other service and equipment 296 329 (10.0) % 919 1,011 (9.1) %
Operating Expenses
Operations and support 2,300 2,243 2.5 % 6,810 6,723 1.3 %
Depreciation and amortization 871 800 8.9 % 2,589 2,351 10.1 %
Total Operating Expenses 3,171 3,043 4.2 % 9,399 9,074 3.6 %
Operating Income $ 160 $ 142 12.7 % $ 422 $ 446 (5.4) %
Operating Income Margin 4.8 % 4.5 % 30 BP 4.3 % 4.7 % (40) BP

2023 2022 Change
Broadband Connections
Total Broadband and DSL Connections 13,887 14,055 (1.2) %
Broadband 13,710 13,796 (0.6) %
Fiber Broadband Connections 8,034 6,935 15.8 %
Voice Connections
Retail Consumer Switched Access Lines 1,737 2,123 (18.2) %
Consumer VoIP Connections 2,035 2,409 (15.5) %
Total Retail Consumer Voice Connections 3,772 4,532 (16.8) %

2023 2022 Change 2023 2022 Change
Broadband Net Additions
Total Broadband and DSL Net Additions (8) (50) 84.0 % (104) (105) 1.0 %
Broadband Net Additions 15 (29) — % (43) (49) 12.2 %
Fiber Broadband Net Additions 296 338 (12.4) % 819 943 (13.1) %
8
LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
Segment Results
Dollars in millions
2023 2022 Change 2023 2022 Change
Operating Revenues
Wireless service $ 672 $ 559 20.2 % $ 1,898 $ 1,583 19.9 %
Wireless equipment 320 226 41.6 % 944 700 34.9 %
Total Segment Operating Revenues 992 785 26.4 % 2,842 2,283 24.5 %
Operating Expenses
Operations and support 837 684 22.4 % 2,396 2,036 17.7 %
Depreciation and amortization 184 164 12.2 % 544 494 10.1 %
Total Segment Operating Expenses 1,021 848 20.4 % 2,940 2,530 16.2 %
Operating Income (Loss) $ (29) $ (63) 54.0 % $ (98) $ (247) 60.3 %
Operating Income Margin (2.9)% (8.0)% 510 BP (3.4)% (10.8)% 740 BP

2023 2022 Change
Mexico Wireless Subscribers
Postpaid 5,085 4,854 4.8 %
Prepaid 16,213 15,689 3.3 %
Reseller 456 455 0.2 %
Total Mexico Wireless Subscribers 21,754 20,998 3.6 %

2023 2022 Change 2023 2022 Change
Mexico Wireless Net Additions
Postpaid 55 19 — % 160 47 — %
Prepaid 17 267 (93.6) % 9 632 (98.6) %
Reseller (7) 12 — % (18) (43) 58.1 %
Total Mexico Wireless Net Additions 65 298 (78.2) % 151 636 (76.3) %
9
SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended
Dollars in millions
Unaudited
September 30, 2023
Operations Depreciation
and Support and Operating
Revenues Expenses EBITDA Amortization Income (Loss)
Communications
Mobility $ 20,692 $ 11,795 $ 8,897 $ 2,134 $ 6,763
Business Wireline 5,221 3,526 1,695 1,345 350
Consumer Wireline 3,331 2,300 1,031 871 160
Total Communications 29,244 17,621 11,623 4,350 7,273
Latin America - Mexico 992 837 155 184 (29)
Segment Total 30,236 18,458 11,778 4,534 7,244
Corporate and Other
Corporate:
DTV-related retained costs — 167 (167) 144 (311)
Parent administration support (1) 333 (334) 1 (335)
Securitization fees 25 164 (139) — (139)
Value portfolio 90 25 65 5 60
Total Corporate 114 689 (575) 150 (725)
Certain significant items — 716 (716) 21 (737)
Total Corporate and Other 114 1,405 (1,291) 171 (1,462)
AT&T Inc. $ 30,350 $ 19,863 $ 10,487 $ 4,705 $ 5,782
September 30, 2022

Operations and Depreciation and Operating Income
Revenues Support Expenses EBITDA Amortization (Loss)
Communications
Mobility $ 20,278 $ 12,010 $ 8,268 $ 2,042 $ 6,226
Business Wireline 5,668 3,705 1,963 1,342 621
Consumer Wireline 3,185 2,243 942 800 142
Latin America - Mexico 785 684 101 164 (63)
Segment Total 29,916 18,642 11,274 4,348 6,926
Corporate and Other
Corporate:
Parent administration support (6) 317 (323) 2 (325)
Total Corporate 127 687 (560) 150 (710)
Total Corporate and Other 127 875 (748) 166 (914)
AT&T Inc. $ 30,043 $ 19,517 $ 10,526 $ 4,514 $ 6,012
10
SUPPLEMENTAL SEGMENT RECONCILIATION
Nine Months Ended
Dollars in millions
Unaudited
September 30, 2023
Operations Depreciation
and Support and Operating
Revenues Expenses EBITDA Amortization Income (Loss)
Communications
Mobility $ 61,589 $ 35,587 $ 26,002 $ 6,355 $ 19,647
Business Wireline 15,831 10,699 5,132 4,008 1,124
Consumer Wireline 9,821 6,810 3,011 2,589 422
Latin America - Mexico 2,842 2,396 446 544 (98)
Segment Total 90,083 55,492 34,591 13,496 21,095
Corporate and Other
Corporate:
Parent administration support (13) 1,039 (1,052) 4 (1,056)
Total Corporate 323 2,069 (1,746) 460 (2,206)
AT&T Inc. $ 90,406 $ 58,205 $ 32,201 $ 14,011 $ 18,190
September 30, 2022

Operations and Depreciation and Operating Income
Revenues Support Expenses EBITDA Amortization (Loss)
Communications
Mobility $ 60,279 $ 36,198 $ 24,081 $ 6,118 $ 17,963
Business Wireline 16,903 11,199 5,704 3,954 1,750
Consumer Wireline 9,520 6,723 2,797 2,351 446
Latin America - Mexico 2,283 2,036 247 494 (247)
Segment Total 88,985 56,156 32,829 12,917 19,912
Corporate and Other
Corporate:
DTV-related retained costs 8 634 (626) 408 (1,034)
Parent administration support (24) 1,005 (1,029) 12 (1,041)
Total Corporate 413 2,008 (1,595) 449 (2,044)
Certain significant items — 1,303 (1,303) 60 (1,363)
AT&T Inc. $ 89,398 $ 59,467 $ 29,931 $ 13,426 $ 16,505
11
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).
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 classified as investing activities, 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
Third Quarter Nine-Month Period
2023 2022 2023 2022
Net cash provided by operating activities from continuing operations1 $ 10,336 $ 10,094 $ 26,936 $ 25,464
Add: Distributions from DIRECTV classified as investing activities 473 567 1,447 2,205
Less: Capital expenditures (4,647) (5,921) (13,252) (15,397)
Less: Cash paid for vendor financing (980) (900) (4,736) (4,237)
Free Cash Flow 5,182 3,840 10,395 8,035
Less: Dividends paid (2,019) (2,010) (6,116) (7,845)

Free Cash Flow after Dividends $ 3,163 $ 1,830 $ 4,279 $ 190
Free Cash Flow Dividend Payout Ratio 39.0 % 52.3 % 58.8 % 97.6 %
1
Includes distributions from DIRECTV of $423 and $1,334 in the third quarter and for the first nine months of 2023, and $392 and $1,429 in the third quarter and for the first
nine months of 2022.
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
2023 2022 2023 2022
Capital Expenditures $ (4,647) $ (5,921) $ (13,252) $ (15,397)
Cash paid for vendor financing (980) (900) (4,736) (4,237)
Cash paid for Capital Investment $ (5,627) $ (6,821) $ (17,988) $ (19,634)
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.
EBITDA, EBITDA Margin and EBITDA Service Margin

Dollars in millions
2023 2022 2023 2022
Income from Continuing Operations $ 3,826 $ 6,346 $ 13,041 $ 16,246
Additions:
Income Tax Expense 1,154 908 3,871 3,857
Interest Expense 1,662 1,420 4,978 4,548
Equity in Net (Income) of Affiliates (420) (392) (1,338) (1,417)
Other (Income) Expense - Net (440) (2,270) (2,362) (6,729)
Depreciation and amortization 4,705 4,514 14,011 13,426
EBITDA 10,487 10,526 32,201 29,931
Transaction and other costs 72 58 72 341
Benefit-related (gain) loss 40 16 (32) 217
Asset impairments and abandonments and
restructuring 604 114 604 745
Adjusted EBITDA1 $ 11,203 $ 10,714 $ 32,845 $ 31,234
1
See "Adjusting Items" section for additional discussion and reconciliation of adjusted items.
2
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin
Dollars in millions
2023 2022 2023 2022
Communications Segment
Operating Income $ 7,273 $ 6,989 $ 21,193 $ 20,159
Add: Depreciation and amortization 4,350 4,184 12,952 12,423
EBITDA $ 11,623 $ 11,173 $ 34,145 $ 32,582
Total Operating Revenues $ 29,244 $ 29,131 $ 87,241 $ 86,702

Operating Income Margin 24.9 % 24.0 % 24.3 % 23.3 %
EBITDA Margin 39.7 % 38.4 % 39.1 % 37.6 %
Mobility
EBITDA $ 8,897 $ 8,268 $ 26,002 $ 24,081

Service Revenues 15,908 15,337 47,136 45,065
EBITDA Margin 43.0 % 40.8 % 42.2 % 39.9 %
EBITDA Service Margin 55.9 % 53.9 % 55.2 % 53.4 %
Business Wireline
Operating Income $ 350 $ 621 $ 1,124 $ 1,750
EBITDA $ 1,695 $ 1,963 $ 5,132 $ 5,704

EBITDA Margin 32.5 % 34.6 % 32.4 % 33.7 %
Consumer Wireline
Operating Income $ 160 $ 142 $ 422 $ 446
Add: Depreciation and amortization 871 800 2,589 2,351
EBITDA $ 1,031 $ 942 $ 3,011 $ 2,797

EBITDA Margin 31.0 % 29.6 % 30.7 % 29.4 %
Latin America Segment

Operating Income (Loss) $ (29) $ (63) $ (98) $ (247)
Add: Depreciation and amortization 184 164 544 494
EBITDA $ 155 $ 101 $ 446 $ 247
Total Operating Revenues $ 992 $ 785 $ 2,842 $ 2,283

Operating Income Margin -2.9 % -8.0 % -3.4 % -10.8 %
EBITDA Margin 15.6 % 12.9 % 15.7 % 10.8 %
3
Adjusting Items
Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including the
amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of
the acquired companies is reflected in the measure and that those assets contribute to revenue generation. 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.
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
2023 2022 2023 2022
Operating Expenses
Transaction and other costs $ 72 $ 58 $ 72 $ 341
Benefit-related (gain) loss 40 16 (32) 217
Assets impairments and abandonment and restructuring 604 114 604 745
Adjustments to Operations and Support Expenses 716 188 644 1,303
Amortization of intangible assets 21 16 55 60
Adjustments to Operating Expenses 737 204 699 1,363
Other
DIRECTV intangible amortization (proportionate share) 310 376 975 1,188
Benefit-related (gain) loss, impairment of equity investment
and other 507 416 314 822
Actuarial and settlement (gain) loss - net (71) (1,440) (145) (3,838)
Adjustments to Income Before Income Taxes 1,483 (444) 1,843 (465)
Tax impact of adjustments 325 (135) 406 (200)
Tax-related items — 727 — 648
Adjustments to Net Income $ 1,158 $ (1,036) $ 1,437 $ (913)
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.
4
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.
Adjusted Operating Income, Adjusted Operating Income Margin,

Adjusted EBITDA, and Adjusted EBITDA Margin
Dollars in millions
2023 2022 2023 2022
Adjustments to Operating Expenses 737 204 699 1,363
Adjusted Operating Income $ 6,519 $ 6,216 $ 18,889 $ 17,868
EBITDA $ 10,487 $ 10,526 $ 32,201 $ 29,931

Adjustments to Operations and Support Expenses 716 188 644 1,303
Adjusted EBITDA $ 11,203 $ 10,714 $ 32,845 $ 31,234

Adjusted Operating Income Margin 21.5 % 20.7 % 20.9 % 20.0 %
Adjusted EBITDA Margin 36.9 % 35.7 % 36.3 % 34.9 %
Adjusted Diluted EPS

2023 2022 2023 2022
Diluted Earnings Per Share (EPS) $ 0.48 $ 0.79 $ 1.67 $ 2.03
DIRECTV intangible amortization (proportionate share) 0.03 0.04 0.10 0.12
Actuarial and settlement (gain) loss - net1 (0.01) (0.14) (0.02) (0.38)
Restructuring and impairments 0.11 0.01 0.11 0.08
Benefit-related, transaction and other costs2 0.03 0.08 0.01 0.19
Tax-related items — (0.10) — (0.09)
Adjusted EPS $ 0.64 $ 0.68 $ 1.87 $ 1.95
Year-over-year growth - Adjusted -5.9 % -4.1 %
Weighted Average Common Shares Outstanding with Dilution
(000,000) 7,185 7,647 7,280 7,605
1
Includes adjustments for actuarial gains or losses associated with our pension and postretirement 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 $0.1 billion in the third quarter of 2023. As a result,
adjusted EPS reflects an expected return on plan assets of $0.6 billion (based on an average annual expected return on plan assets of 7.5% for our pension trust), rather than
the actual return on plan assets of $(1.5) billion (actual pension return of (5.0)%), included in the GAAP measure of income.
2
As of January 1, 2022, we adopted 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 was to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares
resulted in additional dilutive impact, the magnitude of which was 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. For these reasons, we excluded the impact of ASU 2020-06 from our adjusted EPS calculation.
The per share impact of ASU 2020-06 was to decrease reported diluted EPS $0.00 and $0.02 for the quarters ended September 30, 2023 and 2022, and $0.01 and $0.05 for
the nine months ended September 30, 2023 and 2022, respectively. The Mobility II preferred interests were repurchased on April 5, 2023.
5
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 deposits at
financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term
debt.
Net Debt to Adjusted EBITDA - 2023

Dollars in millions
Three Months Ended
Dec. 31, March 31, June 30, Sept. 30,
20221 20231 20231 2023 Four Quarters
Adjusted EBITDA $ 10,231 $ 10,589 $ 11,053 $ 11,203 $ 43,076
End-of-period current debt 11,302
End-of-period long-term debt 126,701
Total End-of-Period Debt 138,003
Less: Cash and Cash Equivalents 7,540
Less: Time Deposits 1,750
Net Debt Balance 128,713
Annualized Net Debt to Adjusted EBITDA Ratio 2.99
1
As reported in AT&T's Form 8-K filed July 26, 2023.
Net Debt to Adjusted EBITDA - 2022

Dollars in millions
Three Months Ended
Dec. 31, March 31, June 30, Sept. 30,
20211 20221 20221 20221 Four Quarters
Adjusted EBITDA $ 9,480 $ 10,190 $ 10,330 $ 10,714 $ 40,714
End-of-period current debt 9,626
End-of-period long-term debt 123,854
Total End-of-Period Debt 133,480
Less: Cash and Cash Equivalents 2,423
Net Debt Balance 131,057
Annualized Net Debt to Adjusted EBITDA Ratio 3.22
1
As reported in AT&T's Form 8-K filed July 26, 2023.
6
Supplemental Operational Measures
As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which
includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship and underscores the
importance of mobile solutions to serving our business customers. Our supplemental presentation of business solutions operations 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

Third Quarter
September 30, 2023 September 30, 2022
Business Business Business Business Percent
Mobility Wireline Adj.1 Solutions Mobility Wireline Adj.1 Solutions Change
Operating Revenues
Wireless service $ 15,908 $ — $ (13,530) $ 2,378 $ 15,337 $ — $ (13,115) $ 2,222 7.0 %
Wireline service — 5,087 — 5,087 — 5,524 — 5,524 (7.9) %
Wireless equipment 4,784 — (4,012) 772 4,941 — (4,082) 859 (10.1) %
Wireline equipment — 134 — 134 — 144 — 144 (6.9) %
Total Operating Revenues 20,692 5,221 (17,542) 8,371 20,278 5,668 (17,197) 8,749 (4.3) %
Operating Expenses
Operations and support 11,795 3,526 (9,661) 5,660 12,010 3,705 (9,886) 5,829 (2.9) %
EBITDA 8,897 1,695 (7,881) 2,711 8,268 1,963 (7,311) 2,920 (7.2) %
Depreciation and amortization 2,134 1,345 (1,741) 1,738 2,042 1,342 (1,685) 1,699 2.3 %
Total Operating Expenses 13,929 4,871 (11,402) 7,398 14,052 5,047 (11,571) 7,528 (1.7) %
Operating Income $ 6,763 $ 350 $ (6,140) $ 973 $ 6,226 $ 621 $ (5,626) $ 1,221 (20.3) %
Operating Income Margin 11.6 % 14.0 % (240) BP

1
Non-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

Nine-Month Period
September 30, 2023 September 30, 2022
Business Business Business Business Percent
Mobility Wireline Adj.1 Solutions Mobility Wireline Adj.1 Solutions Change
Operating Revenues
Wireless service $ 47,136 $ — $ (40,104) $ 7,032 $ 45,065 $ — $ (38,534) $ 6,531 7.7 %
Wireline service — 15,401 — 15,401 — 16,418 — 16,418 (6.2) %
Wireless equipment 14,453 — (12,134) 2,319 15,214 — (12,582) 2,632 (11.9) %
Wireline equipment — 430 — 430 — 485 — 485 (11.3) %
Total Operating Revenues 61,589 15,831 (52,238) 25,182 60,279 16,903 (51,116) 26,066 (3.4) %
Operating Expenses
Operations and support 35,587 10,699 (29,297) 16,989 36,198 11,199 (29,773) 17,624 (3.6) %
EBITDA 26,002 5,132 (22,941) 8,193 24,081 5,704 (21,343) 8,442 (2.9) %
Depreciation and amortization 6,355 4,008 (5,186) 5,177 6,118 3,954 (5,047) 5,025 3.0 %
Total Operating Expenses 41,942 14,707 (34,483) 22,166 42,316 15,153 (34,820) 22,649 (2.1) %
Operating Income $ 19,647 $ 1,124 $ (17,755) $ 3,016 $ 17,963 $ 1,750 $ (16,296) $ 3,417 (11.7) %
Operating Income Margin 12.0 % 13.1 % (110) BP

1
Non-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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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Date of report (Date of earliest event reported) October 19, 2023

Delaware 001-08610 43-1301883

208 S. Akard St., Dallas, Texas 75202

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

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

Emerging growth company ☐

Item 9.01 Financial Statements and Exhibits.

The following exhibits are furnished as part of this report:

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

99.3 Discussion and reconciliation of non-GAAP measures.

Date: October 19, 2023 By: /s/ Sabrina Sanders .

Strong third-quarter results build on momentum

Becoming more efficient and effective through innovation

Consolidated Financial Results

Cautionary Language Concerning Forward-Looking Statements

For more information, contact:

Basic Earnings (Loss) Per Share Attributable to

Consolidated Statements of Cash Flows

Supplementary Financial Data

Acquisitions, net of cash acquired

Cash paid for income taxes, net of refunds - continuing

End of Period Common Shares Outstanding (000,000) 7,150 7,126 0.3 %

Segment Operating Income

Supplementary Operating Data

Third Quarter Percent Nine-Month Period Percent

Mobility provides nationwide wireless service and equipment.

Operating Income Margin 32.7 % 30.7 % 200 BP 31.9 % 29.8 % 210 BP

Supplementary Operating Data

Third Quarter Percent Nine-Month Period Percent

Postpaid 550 964 (42.9) % 1,556 2,987 (47.9) %

Postpaid Churn 0.95 % 1.01 % (6) BP 0.97 % 0.96 % 1 BP

Operating Income Margin 6.7 % 11.0 % (430) BP 7.1 % 10.4 % (330) BP

Operating Income Margin 4.8 % 4.5 % 30 BP 4.3 % 4.7 % (40) BP

Supplementary Operating Data

Third Quarter Percent Nine-Month Period Percent

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

Operating Income Margin (2.9)% (8.0)% 510 BP (3.4)% (10.8)% 740 BP

Supplementary Operating Data

Third Quarter Percent Nine-Month Period Percent

September 30, 2022

September 30, 2022

Free Cash Flow

Less: Dividends paid (2,019) (2,010) (6,116) (7,845)

Cash Paid for Capital Investment

Cash Paid for Capital Investment

EBITDA service margin is calculated as EBITDA divided by service revenues.

EBITDA, EBITDA Margin and EBITDA Service Margin

Total Operating Revenues $ 29,244 $ 29,131 $ 87,241 $ 86,702

Total Operating Revenues $ 20,692 $ 20,278 $ 61,589 $ 60,279

Total Operating Revenues $ 5,221 $ 5,668 $ 15,831 $ 16,903

Total Operating Revenues $ 3,331 $ 3,185 $ 9,821 $ 9,520

Latin America Segment

Total Operating Revenues $ 992 $ 785 $ 2,842 $ 2,283

Adjusted Operating Income, Adjusted Operating Income Margin,

EBITDA $ 10,487 $ 10,526 $ 32,201 $ 29,931

Total Operating Revenues $ 30,350 $ 30,043 $ 90,406 $ 89,398

Operating Income Margin 19.1 % 20.0 % 20.1 % 18.5 %

Adjusted Diluted EPS

Net Debt to Adjusted EBITDA - 2023

Net Debt to Adjusted EBITDA - 2022

Supplemental Operational Measure

Operating Income Margin 11.6 % 14.0 % (240) BP