EX-99.2 3 t-3q2024exhibit992.htm EX-99.2 AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA

AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Operating Revenues
Service			$	25,134		$	25,112		0.1		%	$	74,982		$	74,579		0.5		%
Equipment			5,079			5,238			(3.0)		%	15,056			15,827			(4.9)		%
Total Operating Revenues			30,213			30,350			(0.5)		%	90,038			90,406			(0.4)		%
Operating Expenses
Cost of revenues
Equipment			4,933			5,219			(5.5)		%	14,891			15,933			(6.5)		%
Other cost of revenues (exclusive of depreciation    and amortization shown separately below)			6,697			6,835			(2.0)		%	20,135			20,279			(0.7)		%
Selling, general and administrative			6,958			7,205			(3.4)		%	21,022			21,389			(1.7)		%
Asset impairments and abandonments and restructuring			4,422			604			—		%	5,061			604			—		%
Depreciation and amortization			5,087			4,705			8.1		%	15,206			14,011			8.5		%
Total Operating Expenses			28,097			24,568			14.4		%	76,315			72,216			5.7		%
Operating Income			2,116			5,782			(63.4)		%	13,723			18,190			(24.6)		%
Interest Expense			1,675			1,662			0.8		%	5,098			4,978			2.4		%
Equity in Net Income of Affiliates			272			420			(35.2)		%	915			1,338			(31.6)		%
Other Income (Expense) — Net			717			440			63.0		%	1,850			2,362			(21.7)		%
Income Before Income Taxes			1,430			4,980			(71.3)		%	11,390			16,912			(32.7)		%
Income Tax Expense			1,285			1,154			11.4		%	3,545			3,871			(8.4)		%
Net Income			145			3,826			(96.2)		%	7,845			13,041			(39.8)		%
Less: Net Income Attributable to Noncontrolling Interest			(319)			(331)			3.6		%	(977)			(829)			(17.9)		%
Net Income (Loss) Attributable to AT&T			$	(174)		$	3,495		—		%	$	6,868		$	12,212		(43.8)		%
Less: Preferred Stock Dividends			(52)			(51)			(2.0)		%	(153)			(155)			1.3		%
Net Income (Loss) Attributable to Common Stock			$	(226)		$	3,444		—		%	$	6,715		$	12,057		(44.3)		%
Basic Earnings (Loss) Per Share Attributable to Common Stock			$	(0.03)		$	0.48		—		%	$	0.93		$	1.67		(44.3)		%
Weighted Average Common Shares Outstanding (000,000)			7,202			7,185			0.2		%	7,197			7,178			0.3		%
Diluted Earnings (Loss) Per Share Attributable to Common Stock			$	(0.03)		$	0.48		—		%	$	0.93		$	1.67		(44.3)		%
Weighted Average Common Shares Outstanding with Dilution (000,000)			7,208			7,185			0.3		%	7,200			7,280			(1.1)		%

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AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
			Sep. 30,						Dec. 31,
			2024						2023
Assets			(Unaudited)
Current Assets
Cash and cash equivalents			$	2,586					$	6,722
Accounts receivable – net of related allowances for credit loss of $403 and $499			9,068						10,289
Inventories			2,529						2,177
Prepaid and other current assets			15,616						17,270
Total current assets			29,799						36,458
Property, Plant and Equipment – Net			127,964						128,489
Goodwill – Net			63,432						67,854
Licenses – Net			127,134						127,219
Other Intangible Assets – Net			5,256						5,283
Investments in and Advances to Equity Affiliates			281						1,251
Operating Lease Right-Of-Use Assets			20,779						20,905
Other Assets			19,074						19,601
Total Assets			$	393,719					$	407,060
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year			$	2,637					$	9,477
Accounts payable and accrued liabilities			31,935						35,852
Advanced billings and customer deposits			4,059						3,778
Dividends payable			2,027						2,020
Total current liabilities			40,658						51,127
Long-Term Debt			126,375						127,854
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes			58,461						58,666
Postemployment benefit obligation			8,750						8,734
Operating lease liabilities			17,331						17,568
Other noncurrent liabilities			23,884						23,696
Total deferred credits and other noncurrent liabilities			108,426						108,664
Redeemable Noncontrolling Interest			1,978						1,973
Stockholders’ Equity
Preferred stock			—						—
Common stock			7,621						7,621
Additional paid-in capital			109,354						114,519
Retained (deficit) earnings			(185)						(5,015)
Treasury stock			(15,087)						(16,128)
Accumulated other comprehensive income			648						2,300
Noncontrolling interest			13,931						14,145
Total stockholders’ equity			116,282						117,442
Total Liabilities and Stockholders’ Equity			$	393,719					$	407,060

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AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited			Nine-Month Period
			2024						2023
Operating Activities
Net income			$	7,845					$	13,041
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			15,206						14,011
Provision for uncollectible accounts			1,431						1,409
Deferred income tax expense			1,811						3,163
Net (gain) loss on investments, net of impairments			88						335
Pension and postretirement benefit expense (credit)			(1,412)						(1,966)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net			—						(145)
Asset impairments and abandonments and restructuring			5,061						604
Changes in operating assets and liabilities:
Receivables			574						1,173
Inventories, prepaid and other current assets			147						57
Accounts payable and other accrued liabilities			(4,503)						(5,062)
Equipment installment receivables and related sales			(899)						(56)
Deferred customer contract acquisition and fulfillment costs			490						47
Postretirement claims and contributions			(129)						(715)
Other - net			1,165						1,040
Total adjustments			19,030						13,895
Net Cash Provided by Operating Activities			26,875						26,936
Investing Activities
Capital expenditures			(13,420)						(13,252)
Acquisitions, net of cash acquired			(322)						(923)
Dispositions			66						66
Distributions from DIRECTV in excess of cumulative equity in earnings			928						1,447
(Purchases), sales and settlements of securities and investments - net			1,153						(1,043)
Other - net			(532)						(81)
Net Cash Used in Investing Activities			(12,127)						(13,786)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less			—						(914)
Issuance of other short-term borrowings			491						5,406
Repayment of other short-term borrowings			(2,487)						(979)
Issuance of long-term debt			4						9,633
Repayment of long-term debt			(7,113)						(11,889)
Repayment of note payable to DIRECTV			—						(130)
Payment of vendor financing			(1,571)						(4,736)
Purchase of treasury stock			(202)						(190)
Issuance of treasury stock			2						3
Issuance of preferred interests in subsidiary			—						7,151
Redemption of preferred interests in subsidiary			—						(5,333)
Dividends paid			(6,171)						(6,116)
Other - net			(1,808)						(1,190)
Net Cash Used in Financing Activities			(18,855)						(9,284)
Net increase (decrease) in cash and cash equivalents and restricted cash			(4,107)						3,866
Cash and cash equivalents and restricted cash beginning of year			6,833						3,793
Cash and Cash Equivalents and Restricted Cash End of Period			$	2,726					$	7,659

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AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Capital expenditures
Purchase of property and equipment			$	5,259		$	4,601		14.3		%	$	13,301		$	13,116		1.4		%
Interest during construction			43			46			(6.5)		%	119			136			(12.5)		%
Total Capital Expenditures			$	5,302		$	4,647		14.1		%	$	13,420		$	13,252		1.3		%
Acquisitions, net of cash acquired
Business acquisitions			$	—		$	—		—		%	$	—		$	—		—		%
Spectrum acquisitions			6			241			(97.5)		%	153			309			(50.5)		%
Interest during construction - spectrum			46			167			(72.5)		%	169			614			(72.5)		%
Total Acquisitions			$	52		$	408		(87.3)		%	$	322		$	923		(65.1)		%
Cash paid for interest			$	1,971		$	2,099		(6.1)		%	$	5,615		$	5,703		(1.5)		%
Cash paid for income taxes, net of (refunds)			$	583		$	423		37.8		%	$	882		$	758		16.4		%
Dividends Declared per Common Share			$	0.2775		$	0.2775		—		%	$	0.8325		$	0.8325		—		%
End of Period Common Shares Outstanding (000,000)												7,174			7,150			0.3		%
Debt Ratio												52.2		%	53.5		%	(130)		BP
Total Employees												143,630			152,740			(6.0)		%

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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.

Segment Results
Dollars in millions
Unaudited			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Segment Operating Revenues
Mobility			$	21,052		$	20,692		1.7		%	$	62,126		$	61,589		0.9		%
Business Wireline			4,606			5,221			(11.8)		%	14,274			15,831			(9.8)		%
Consumer Wireline			3,416			3,331			2.6		%	10,113			9,821			3.0		%
Total Segment Operating Revenues			29,074			29,244			(0.6)		%	86,513			87,241			(0.8)		%
Segment Operating Income
Mobility			7,003			6,763			3.5		%	20,190			19,647			2.8		%
Business Wireline			(43)			350			—		%	123			1,124			(89.1)		%
Consumer Wireline			196			160			22.5		%	593			422			40.5		%
Total Segment Operating Income			$	7,156		$	7,273		(1.6)		%	$	20,906		$	21,193		(1.4)		%

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												September 30,						Percent
												2024			2023			Change
Broadband Connections
Broadband1												15,198			15,065			0.9		%
DSL												146			231			(36.8)		%
Total Broadband Connections												15,344			15,296			0.3		%
1 Excludes AT&T Internet Air for Business.
Voice Connections
Retail Consumer Switched Access Lines												3,486			4,421			(21.1)		%
Consumer VoIP Connections												2,297			2,649			(13.3)		%
Total Retail Consumer Voice Connections												5,783			7,070			(18.2)		%
			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Broadband Net Additions
Broadband1			13			20			(35.0)		%	120			(10)			—		%
DSL			(21)			(28)			25.0		%	(64)			(80)			20.0		%
Total Broadband Net Additions			(8)			(8)			—		%	56			(90)			—		%
1 Excludes AT&T Internet Air for Business.

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Mobility

Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
Unaudited			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Operating Revenues
Service			$	16,539		$	15,908		4.0		%	$	48,810		$	47,136		3.6		%
Equipment			4,513			4,784			(5.7)		%	13,316			14,453			(7.9)		%
Total Operating Revenues			21,052			20,692			1.7		%	62,126			61,589			0.9		%
Operating Expenses
Operations and support			11,559			11,795			(2.0)		%	34,483			35,587			(3.1)		%
Depreciation and amortization			2,490			2,134			16.7		%	7,453			6,355			17.3		%
Total Operating Expenses			14,049			13,929			0.9		%	41,936			41,942			—		%
Operating Income			$	7,003		$	6,763		3.5		%	$	20,190		$	19,647		2.8		%
Operating Income Margin			33.3		%	32.7		%	60		BP	32.5		%	31.9		%	60		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												September 30,						Percent
												2024			2023			Change
Mobility Subscribers
Postpaid												88,384			86,365			2.3		%
Postpaid phone												72,285			70,757			2.2		%
Prepaid												19,200			19,391			(1.0)		%
Reseller												8,482			7,101			19.4		%
Total Mobility Subscribers1												116,066			112,857			2.8		%
1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems.
			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Mobility Net Additions
Postpaid Phone Net Additions			403			468			(13.9)		%	1,171			1,218			(3.9)		%
Total Phone Net Additions			358			494			(27.5)		%	1,162			1,407			(17.4)		%
Postpaid			429			550			(22.0)		%	1,411			1,556			(9.3)		%
Prepaid			(49)			56			—		%	34			263			(87.1)		%
Reseller			237			401			(40.9)		%	910			941			(3.3)		%
Total Mobility Net Additions1			617			1,007			(38.7)		%	2,355			2,760			(14.7)		%
Postpaid Churn			0.93		%	0.95		%	(2)		BP	0.89		%	0.97		%	(8) BP
Postpaid Phone-Only Churn			0.78		%	0.79		%	(1)		BP	0.73		%	0.80		%	(7) BP
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.

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Business Wireline

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

Business Wireline Results
Dollars in millions
Unaudited			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Operating Revenues
Service			$	4,417		$	5,087		(13.2)		%	$	13,688		$	15,401		(11.1)		%
Equipment			189			134			41.0		%	586			430			36.3		%
Total Operating Revenues			4,606			5,221			(11.8)		%	14,274			15,831			(9.8)		%
Operating Expenses
Operations and support			3,250			3,526			(7.8)		%	10,004			10,699			(6.5)		%
Depreciation and amortization			1,399			1,345			4.0		%	4,147			4,008			3.5		%
Total Operating Expenses			4,649			4,871			(4.6)		%	14,151			14,707			(3.8)		%
Operating Income (Loss)			$	(43)		$	350		—		%	$	123		$	1,124		(89.1)		%
Operating Income Margin			(0.9)		%	6.7		%	(760)		BP	0.9		%	7.1		%	(620)		BP

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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. Consumer Wireline also provides legacy telephony voice communication services.

Consumer Wireline Results
Dollars in millions
Unaudited			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Operating Revenues
Broadband			$	2,838		$	2,667		6.4		%	$	8,301		$	7,755		7.0		%
Legacy voice and data services			307			368			(16.6)		%	972			1,147			(15.3)		%
Other service and equipment			271			296			(8.4)		%	840			919			(8.6)		%
Total Operating Revenues			3,416			3,331			2.6		%	10,113			9,821			3.0		%
Operating Expenses
Operations and support			2,296			2,300			(0.2)		%	6,801			6,810			(0.1)		%
Depreciation and amortization			924			871			6.1		%	2,719			2,589			5.0		%
Total Operating Expenses			3,220			3,171			1.5		%	9,520			9,399			1.3		%
Operating Income			$	196		$	160		22.5		%	$	593		$	422		40.5		%
Operating Income Margin			5.7		%	4.8		%	90		BP	5.9		%	4.3		%	160		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												September 30,						Percent
												2024			2023			Change
Broadband Connections
Total Broadband and DSL Connections												13,972			13,887			0.6		%
Broadband1												13,864			13,710			1.1		%
Fiber Broadband Connections												9,024			8,034			12.3		%
Voice Connections
Retail Consumer Switched Access Lines												1,386			1,737			(20.2)		%
Consumer VoIP Connections												1,716			2,035			(15.7)		%
Total Retail Consumer Voice Connections												3,102			3,772			(17.8)		%
1 Includes AT&T Internet Air.
			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Broadband Net Additions
Total Broadband and DSL Net Additions			10			(8)			—		%	82			(104)			—		%
Broadband Net Additions1			28			15			86.7		%	135			(43)			—		%
Fiber Broadband Net Additions			226			296			(23.6)		%	717			819			(12.5)		%
1 Includes AT&T Internet Air.

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LATIN AMERICA SEGMENT

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

Segment Results
Dollars in millions
Unaudited			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Operating Revenues
Wireless service			$	645		$	672		(4.0)		%	$	2,034		$	1,898		7.2		%
Wireless equipment			377			320			17.8		%	1,154			944			22.2		%
Total Segment Operating Revenues			1,022			992			3.0		%	3,188			2,842			12.2		%
Operating Expenses
Operations and support			854			837			2.0		%	2,662			2,396			11.1		%
Depreciation and amortization			158			184			(14.1)		%	507			544			(6.8)		%
Total Segment Operating Expenses			1,012			1,021			(0.9)		%	3,169			2,940			7.8		%
Operating Income (Loss)			$	10		$	(29)		—		%	$	19		$	(98)		—		%
Operating Income Margin			1.0		%	(2.9)		%	390		BP	0.6		%	(3.4)		%	400		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												September 30,						Percent
												2024			2023			Change
Mexico Wireless Subscribers
Postpaid												5,633			5,085			10.8		%
Prepaid												16,996			16,213			4.8		%
Reseller												282			456			(38.2)		%
Total Mexico Wireless Subscribers												22,911			21,754			5.3		%
			Third Quarter						Percent			Nine-Month Period						Percent
			2024			2023			Change			2024			2023			Change
Mexico Wireless Net Additions
Postpaid			139			55			—		%	397			160			—		%
Prepaid			187			17			—		%	333			9			—		%
Reseller			(51)			(7)			—		%	(135)			(18)			—		%
Total Mexico Wireless Net Additions			275			65			—		%	595			151			—		%

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SUPPLEMENTAL SEGMENT RECONCILIATION

Three Months Ended
Dollars in millions
Unaudited
September 30, 2024
			Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization			Operating Income (Loss)
Communications
Mobility			$	21,052		$	11,559		$	9,493		$	2,490		$	7,003
Business Wireline			4,606			3,250			1,356			1,399			(43)
Consumer Wireline			3,416			2,296			1,120			924			196
Total Communications			29,074			17,105			11,969			4,813			7,156
Latin America - Mexico			1,022			854			168			158			10
Segment Total			30,096			17,959			12,137			4,971			7,166
Corporate and Other
Corporate:
DTV-related retained costs			—			107			(107)			95			(202)
Parent administration support			—			401			(401)			2			(403)
Securitization fees			31			134			(103)			—			(103)
Value portfolio			86			26			60			6			54
Total Corporate			117			668			(551)			103			(654)
Certain significant items			—			4,383			(4,383)			13			(4,396)
Total Corporate and Other			117			5,051			(4,934)			116			(5,050)
AT&T Inc.			$	30,213		$	23,010		$	7,203		$	5,087		$	2,116
September 30, 2023
			Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization			Operating 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

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SUPPLEMENTAL SEGMENT RECONCILIATION

Nine Months Ended
Dollars in millions
Unaudited
September 30, 2024
			Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization			Operating Income (Loss)
Communications
Mobility			$	62,126		$	34,483		$	27,643		$	7,453		$	20,190
Business Wireline			14,274			10,004			4,270			4,147			123
Consumer Wireline			10,113			6,801			3,312			2,719			593
Total Communications			86,513			51,288			35,225			14,319			20,906
Latin America - Mexico			3,188			2,662			526			507			19
Segment Total			89,701			53,950			35,751			14,826			20,925
Corporate and Other
Corporate:
DTV-related retained costs			—			357			(357)			317			(674)
Parent administration support			—			1,236			(1,236)			5			(1,241)
Securitization fees			86			449			(363)			—			(363)
Value portfolio			251			77			174			15			159
Total Corporate			337			2,119			(1,782)			337			(2,119)
Certain significant items			—			5,040			(5,040)			43			(5,083)
Total Corporate and Other			337			7,159			(6,822)			380			(7,202)
AT&T Inc.			$	90,038		$	61,109		$	28,929		$	15,206		$	13,723
September 30, 2023
			Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization			Operating 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
Total Communications			87,241			53,096			34,145			12,952			21,193
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:
DTV-related retained costs			—			514			(514)			440			(954)
Parent administration support			(13)			1,039			(1,052)			4			(1,056)
Securitization fees			61			439			(378)			—			(378)
Value portfolio			275			77			198			16			182
Total Corporate			323			2,069			(1,746)			460			(2,206)
Certain significant items			—			644			(644)			55			(699)
Total Corporate and Other			323			2,713			(2,390)			515			(2,905)
AT&T Inc.			$	90,406		$	58,205		$	32,201		$	14,011		$	18,190

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