v3.20.4

Segment Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | NOTE 4. SEGMENT INFORMATION Our segments are comprised of strategic business units that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We analyze our segments based on segment operating contribution, which consists of operating income, excluding acquisition-related costs and other significant items (as discussed below), and equity in net income (loss) of affiliates for investments managed within each segment. We have three reportable segments: (1) Communications, (2) WarnerMedia and (3) Latin America. We have recast our segment results for all prior periods to include our prior Xandr segment within our WarnerMedia segment and to remove the Crunchyroll anime business that is classified as held-for-sale and removed from the WarnerMedia segment, instead including it in Corporate and Other. We also evaluate segment and business unit performance based on EBITDA and/or EBITDA margin. EBITDA is defined as operating contribution excluding equity in net income (loss) of affiliates and depreciation and amortization. We believe EBITDA to be a relevant and useful measurement to our investors as it is part of our internal management reporting and planning processes and it is an important metric that management uses to evaluate operating performance. EBITDA does not give effect to depreciation and amortization expenses incurred in operating contribution nor is it burdened by cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA margin is EBITDA divided by total revenues. The Communications segment provides wireless and wireline telecom, video and broadband services to consumers located in the U.S. and businesses globally. Our business strategies reflect bundled product offerings that cut across product lines and utilize shared assets. In December 2020, we changed our management strategy and reevaluated our domestic video business, allowing us to maximize value in our domestic video business and further accelerate our ability to innovate and execute in our fast-growing broadband and fiber business. In conjunction with the strategy change, we separated the former Entertainment Group into two business units, Video and Broadband, which includes legacy telephony operations. We have recast our results for all prior periods to split the Entertainment Group into two separate business units, Video and Broadband, and removed video operations from Business Wireline, combining all video operations in the Video business unit. This segment contains the following business units: •Mobility provides nationwide wireless service and equipment. •Video provides video, including over-the-top (OTT) services and also sells multiplatform advertising services as video revenues. •Broadband provides internet, including broadband fiber, and legacy telephony voice communication services to residential customers. •Business Wireline provides advanced IP-based services, as well as traditional voice and data services to business customers. The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. Historical financial results of Eliminations & Other included in the WarnerMedia segment have been recast to include Xandr, previously a separate reportable segment, and to remove the Crunchyroll anime business that was classified as held-for-sale. This segment contains the following: •Turner primarily operates multichannel basic television networks and digital properties. Turner also sells advertising on its networks and digital properties. •Home Box Office consists of premium pay television and HBO Max domestically and premium pay, basic tier television internationally, and content licensing and home entertainment. •Warner Bros. primarily consists of the production, distribution and licensing of television programming and feature films, the distribution of home entertainment products and the production and distribution of games. •Eliminations & Other includes the Xandr advertising business, and also removes transactions between the Turner, Home Box Office and Warner Bros. business units, including internal sales of content to the HBO Max platform that began in the fourth quarter of 2019 (see Note 5). The Latin America segment provides entertainment and wireless services outside of the U.S. This segment contains the following business units: •Vrio provides video services primarily to residential customers using satellite technology in Latin America and the Caribbean. •Mexico provides wireless service and equipment to customers in Mexico. Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes, and includes: •Corporate, which consists of: (1) businesses no longer integral to our operations or which we no longer actively market, (2) corporate support functions, (3) impacts of corporate-wide decisions for which the individual operating segments are not being evaluated, and (4) the reclassification of the amortization of prior service credits, which we continue to report with segment operating expenses, to consolidated “Other income (expense) – net.” •Acquisition-related items, which consists of items associated with the merger and integration of acquired businesses, including amortization of intangible assets. •Certain significant items, which includes (1) employee separation charges associated with voluntary and/or strategic offers, (2) losses resulting from asset impairments and abandonments, and (3) other items for which the segments are not being evaluated. •Eliminations and consolidations, which (1) removes transactions involving dealings between our segments, including channel distribution between WarnerMedia and Communications, and (2) includes adjustments for our reporting of the advertising business. “Interest expense” and “Other income (expense) – net” are managed only on a total company basis and are, accordingly, reflected only in consolidated results.
For the year ended December 31, 2020
| Revenues |  | Operations and Support Expenses |  | EBITDA |  | Depreciation and Amortization |  | Operating Income (Loss) |  | Equity in Net Income (Loss) of Affiliates |  | Segment Contribution
Communications |  |  |  |  |  |  |  |  |  |  |  |  |
Mobility | $ | 72,564 |  |  | $ | 42,106 |  |  | $ | 30,458 |  |  | $ | 8,086 |  |  | $ | 22,372 |  |  | $ | — |  |  | $ | 22,372 |
Video | 28,610 |  |  | 24,619 |  |  | 3,991 |  |  | 2,262 |  |  | 1,729 |  |  | — |  |  | 1,729 |
Broadband | 12,318 |  |  | 7,582 |  |  | 4,736 |  |  | 2,914 |  |  | 1,822 |  |  | — |  |  | 1,822 |
Business Wireline | 25,358 |  |  | 15,534 |  |  | 9,824 |  |  | 5,226 |  |  | 4,598 |  |  | — |  |  | 4,598 |
Total Communications | 138,850 |  |  | 89,841 |  |  | 49,009 |  |  | 18,488 |  |  | 30,521 |  |  | — |  |  | 30,521 |
WarnerMedia |  |  |  |  |  |  |  |  |  |  |  |  |
Turner | 12,568 |  |  | 6,954 |  |  | 5,614 |  |  | 277 |  |  | 5,337 |  |  | (2) |  |  | 5,335 |
Home Box Office | 6,808 |  |  | 6,028 |  |  | 780 |  |  | 98 |  |  | 682 |  |  | 16 |  |  | 698 |
Warner Bros. | 12,154 |  |  | 9,917 |  |  | 2,237 |  |  | 169 |  |  | 2,068 |  |  | (70) |  |  | 1,998 |
Eliminations and other | (1,088) |  |  | (1,320) |  |  | 232 |  |  | 127 |  |  | 105 |  |  | 74 |  |  | 179 |
Total WarnerMedia | 30,442 |  |  | 21,579 |  |  | 8,863 |  |  | 671 |  |  | 8,192 |  |  | 18 |  |  | 8,210 |
Latin America |  |  |  |  |  |  |  |  |  |  |  |  |
Vrio | 3,154 |  |  | 2,800 |  |  | 354 |  |  | 520 |  |  | (166) |  |  | 24 |  |  | (142) |
Mexico | 2,562 |  |  | 2,636 |  |  | (74) |  |  | 513 |  |  | (587) |  |  | — |  |  | (587) |
Total Latin America | 5,716 |  |  | 5,436 |  |  | 280 |  |  | 1,033 |  |  | (753) |  |  | 24 |  |  | (729) |
Segment Total | 175,008 |  |  | 116,856 |  |  | 58,152 |  |  | 20,192 |  |  | 37,960 |  |  | $ | 42 |  |  | $ | 38,002 |
Corporate and Other |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate 1 | 1,932 |  |  | 3,974 |  |  | (2,042) |  |  | 300 |  |  | (2,342) |  |  |  |  |
Acquisition-related items | — |  |  | 468 |  |  | (468) |  |  | 8,012 |  |  | (8,480) |  |  |  |  |
Certain significant items | — |  |  | 19,156 |  |  | (19,156) |  |  | 14 |  |  | (19,170) |  |  |  |  |
Eliminations and consolidations | (5,180) |  |  | (3,615) |  |  | (1,565) |  |  | (2) |  |  | (1,563) |  |  |  |  |
AT&T Inc. | $ | 171,760 |  |  | $ | 136,839 |  |  | $ | 34,921 |  |  | $ | 28,516 |  |  | $ | 6,405 |  |  |  |  |
1 Includes $2,442 for the reclassification of prior service credit amortization.
For the year ended December 31, 2019
| Revenues |  | Operations and Support Expenses |  | EBITDA |  | Depreciation and Amortization |  | Operating Income (Loss) |  | Equity in Net Income (Loss) of Affiliates |  | Segment Contribution
Communications |  |  |  |  |  |  |  |  |  |  |  |  |
Mobility | $ | 71,056 |  |  | $ | 40,681 |  |  | $ | 30,375 |  |  | $ | 8,054 |  |  | $ | 22,321 |  |  | $ | — |  |  | $ | 22,321 |
Video | 32,124 |  |  | 27,599 |  |  | 4,525 |  |  | 2,461 |  |  | 2,064 |  |  | — |  |  | 2,064 |
Broadband | 13,012 |  |  | 7,451 |  |  | 5,561 |  |  | 2,880 |  |  | 2,681 |  |  | — |  |  | 2,681 |
Business Wireline | 26,167 |  |  | 16,069 |  |  | 10,098 |  |  | 4,934 |  |  | 5,164 |  |  | — |  |  | 5,164 |
Total Communications | 142,359 |  |  | 91,800 |  |  | 50,559 |  |  | 18,329 |  |  | 32,230 |  |  | — |  |  | 32,230 |
WarnerMedia |  |  |  |  |  |  |  |  |  |  |  |  |
Turner | 13,122 |  |  | 7,740 |  |  | 5,382 |  |  | 235 |  |  | 5,147 |  |  | 52 |  |  | 5,199 |
Home Box Office | 6,749 |  |  | 4,312 |  |  | 2,437 |  |  | 102 |  |  | 2,335 |  |  | 30 |  |  | 2,365 |
Warner Bros. | 14,358 |  |  | 11,816 |  |  | 2,542 |  |  | 162 |  |  | 2,380 |  |  | (30) |  |  | 2,350 |
Eliminations and other | 1,030 |  |  | 304 |  |  | 726 |  |  | 90 |  |  | 636 |  |  | 109 |  |  | 745 |
Total WarnerMedia | 35,259 |  |  | 24,172 |  |  | 11,087 |  |  | 589 |  |  | 10,498 |  |  | 161 |  |  | 10,659 |
Latin America |  |  |  |  |  |  |  |  |  |  |  |  |
Vrio | 4,094 |  |  | 3,378 |  |  | 716 |  |  | 660 |  |  | 56 |  |  | 27 |  |  | 83 |
Mexico | 2,869 |  |  | 3,085 |  |  | (216) |  |  | 502 |  |  | (718) |  |  | — |  |  | (718) |
Total Latin America | 6,963 |  |  | 6,463 |  |  | 500 |  |  | 1,162 |  |  | (662) |  |  | 27 |  |  | (635) |
Segment Total | 184,581 |  |  | 122,435 |  |  | 62,146 |  |  | 20,080 |  |  | 42,066 |  |  | $ | 188 |  |  | $ | 42,254 |
Corporate and Other |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate 1 | 1,937 |  |  | 3,279 |  |  | (1,342) |  |  | 636 |  |  | (1,978) |  |  |  |  |
Acquisition-related items | (72) |  |  | 960 |  |  | (1,032) |  |  | 7,460 |  |  | (8,492) |  |  |  |  |
Certain significant items | — |  |  | 2,082 |  |  | (2,082) |  |  | 43 |  |  | (2,125) |  |  |  |  |
Eliminations and consolidations | (5,253) |  |  | (3,735) |  |  | (1,518) |  |  | (2) |  |  | (1,516) |  |  |  |  |
AT&T Inc. | $ | 181,193 |  |  | $ | 125,021 |  |  | $ | 56,172 |  |  | $ | 28,217 |  |  | $ | 27,955 |  |  |  |  |
1 Includes $1,934 for the reclassification of prior service credit amortization.
For the year ended December 31, 2018
| Revenues |  | Operations and Support Expenses |  | EBITDA |  | Depreciation and Amortization |  | Operating Income (Loss) |  | Equity in Net Income (Loss) of Affiliates |  | Segment Contribution
Communications |  |  |  |  |  |  |  |  |  |  |  |  |
Mobility | $ | 70,521 |  |  | $ | 40,690 |  |  | $ | 29,831 |  |  | $ | 8,263 |  |  | $ | 21,568 |  |  | $ | — |  |  | $ | 21,568 |
Video | 33,363 |  |  | 29,334 |  |  | 4,029 |  |  | 2,698 |  |  | 1,331 |  |  | — |  |  | 1,331 |
Broadband | 13,108 |  |  | 7,116 |  |  | 5,992 |  |  | 2,623 |  |  | 3,369 |  |  | — |  |  | 3,369 |
Business Wireline | 26,729 |  |  | 16,181 |  |  | 10,548 |  |  | 4,708 |  |  | 5,840 |  |  | — |  |  | 5,840 |
Total Communications | 143,721 |  |  | 93,321 |  |  | 50,400 |  |  | 18,292 |  |  | 32,108 |  |  | — |  |  | 32,108 |
WarnerMedia |  |  |  |  |  |  |  |  |  |  |  |  |
Turner | 6,979 |  |  | 3,794 |  |  | 3,185 |  |  | 131 |  |  | 3,054 |  |  | 54 |  |  | 3,108 |
Home Box Office | 3,598 |  |  | 2,187 |  |  | 1,411 |  |  | 56 |  |  | 1,355 |  |  | 29 |  |  | 1,384 |
Warner Bros. | 8,703 |  |  | 7,130 |  |  | 1,573 |  |  | 96 |  |  | 1,477 |  |  | (28) |  |  | 1,449 |
Eliminations and other | 1,305 |  |  | 168 |  |  | 1,137 |  |  | 28 |  |  | 1,109 |  |  | (30) |  |  | 1,079 |
Total WarnerMedia | 20,585 |  |  | 13,279 |  |  | 7,306 |  |  | 311 |  |  | 6,995 |  |  | 25 |  |  | 7,020 |
Latin America |  |  |  |  |  |  |  |  |  |  |  |  |
Vrio | 4,784 |  |  | 3,743 |  |  | 1,041 |  |  | 728 |  |  | 313 |  |  | 34 |  |  | 347 |
Mexico | 2,868 |  |  | 3,415 |  |  | (547) |  |  | 510 |  |  | (1,057) |  |  | — |  |  | (1,057) |
Total Latin America | 7,652 |  |  | 7,158 |  |  | 494 |  |  | 1,238 |  |  | (744) |  |  | 34 |  |  | (710) |
Segment Total | 171,958 |  |  | 113,758 |  |  | 58,200 |  |  | 19,841 |  |  | 38,359 |  |  | $ | 59 |  |  | $ | 38,418 |
Corporate and Other |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate 1 | 2,246 |  |  | 2,335 |  |  | (89) |  |  | 1,633 |  |  | (1,722) |  |  |  |  |
Acquisition-related items | (49) |  |  | 1,185 |  |  | (1,234) |  |  | 6,931 |  |  | (8,165) |  |  |  |  |
Certain significant items | — |  |  | 899 |  |  | (899) |  |  | 26 |  |  | (925) |  |  |  |  |
Eliminations and consolidations | (3,399) |  |  | (1,947) |  |  | (1,452) |  |  | (1) |  |  | (1,451) |  |  |  |  |
AT&T Inc. | $ | 170,756 |  |  | $ | 116,230 |  |  | $ | 54,526 |  |  | $ | 28,430 |  |  | $ | 26,096 |  |  |  |  |
1 Includes $1,753 for the reclassification of prior service credit amortization.
The following table is a reconciliation of operating income (loss) to “Income Before Income Taxes” reported in our consolidated statements of income:
| 2020 |  | 2019 |  | 2018 |  |  |  |  |  |  |  |
Communications | $ | 30,521 |  |  | $ | 32,230 |  |  | $ | 32,108 |  |  |  |  |  |  |  |  |
WarnerMedia | 8,210 |  |  | 10,659 |  |  | 7,020 |  |  |  |  |  |  |  |  |
Latin America | (729) |  |  | (635) |  |  | (710) |  |  |  |  |  |  |  |  |
Segment Contribution | 38,002 |  |  | 42,254 |  |  | 38,418 |  |  |  |  |  |  |  |  |
Reconciling Items: |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and Other | (2,342) |  |  | (1,978) |  |  | (1,722) |  |  |  |  |  |  |  |  |
Merger and integration items | (468) |  |  | (1,032) |  |  | (1,234) |  |  |  |  |  |  |  |  |
Amortization of intangibles acquired | (8,012) |  |  | (7,460) |  |  | (6,931) |  |  |  |  |  |  |  |  |
Impairments and abandonments | (18,880) |  |  | (1,458) |  |  | (46) |  |  |  |  |  |  |  |  |
Gain on spectrum transaction 1 | 900 |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Employee separation charges and benefit-related (gain) loss | (1,177) |  |  | (624) |  |  | (587) |  |  |  |  |  |  |  |  |
Other noncash charges (credits), net | (13) |  |  | (43) |  |  | (111) |  |  |  |  |  |  |  |  |
Natural disaster items | — |  |  | — |  |  | (181) |  |  |  |  |  |  |  |  |
Segment equity in net income of affiliates | (42) |  |  | (188) |  |  | (59) |  |  |  |  |  |  |  |  |
Eliminations and consolidations | (1,563) |  |  | (1,516) |  |  | (1,451) |  |  |  |  |  |  |  |  |
AT&T Operating Income | 6,405 |  |  | 27,955 |  |  | 26,096 |  |  |  |  |  |  |  |  |
Interest Expense | 7,925 |  |  | 8,422 |  |  | 7,957 |  |  |  |  |  |  |  |  |
Equity in net income (loss) of affiliates | 95 |  |  | 6 |  |  | (48) |  |  |  |  |  |  |  |  |
Other income (expense) - net | (1,431) |  |  | (1,071) |  |  | 6,782 |  |  |  |  |  |  |  |  |
Income (Loss) Before Income Taxes | $ | (2,856) |  |  | $ | 18,468 |  |  | $ | 24,873 |  |  |  |  |  |  |  |  |
1 Included as a reduction of “Selling, general and administrative expenses” in the consolidated statements of income.
The following table sets forth revenues earned from customers, and property, plant and equipment located in different geographic areas:
| 2020 |  | 2019 |  | 2018
| Revenues |  | Net Property, Plant & Equipment |  | Revenues |  | Net Property, Plant & Equipment |  | Revenues |  | Net Property, Plant & Equipment
United States | $ | 155,899 |  |  | $ | 121,208 |  |  | $ | 161,689 |  |  | $ | 122,567 |  |  | $ | 154,795 |  |  | $ | 123,457 |
Europe | 5,387 |  |  | 1,152 |  |  | 6,536 |  |  | 1,854 |  |  | 4,073 |  |  | 1,634 |
Mexico | 2,862 |  |  | 3,530 |  |  | 3,198 |  |  | 3,648 |  |  | 3,100 |  |  | 3,467 |
Brazil | 1,807 |  |  | 694 |  |  | 2,797 |  |  | 1,057 |  |  | 2,724 |  |  | 1,213 |
All other Latin America | 2,679 |  |  | 485 |  |  | 3,219 |  |  | 544 |  |  | 3,055 |  |  | 1,217 |
Asia/Pacific Rim | 2,322 |  |  | 203 |  |  | 2,793 |  |  | 390 |  |  | 2,214 |  |  | 408 |
Other | 804 |  |  | 43 |  |  | 961 |  |  | 68 |  |  | 795 |  |  | 77 |
Total | $ | 171,760 |  |  | $ | 127,315 |  |  | $ | 181,193 |  |  | $ | 130,128 |  |  | $ | 170,756 |  |  | $ | 131,473 |
The following tables present intersegment revenues, assets, investments in equity affiliates and capital expenditures by segment:
Intersegment Reconciliation |  |  |  |  |
| 2020 |  | 2019 |  | 2018
Intersegment revenues |  |  |  |  |
Communications | $ | 11 |  |  | $ | 26 |  |  | $ | 13 |
WarnerMedia | 3,183 |  |  | 3,318 |  |  | 1,875 |
Latin America | — |  |  | — |  |  | — |
Total Intersegment Revenues | 3,194 |  |  | 3,344 |  |  | 1,888 |
Consolidations | 1,986 |  |  | 1,909 |  |  | 1,511 |
Eliminations and consolidations | $ | 5,180 |  |  | $ | 5,253 |  |  | $ | 3,399 |
At or for the years ended December 31, | 2020 |  | 2019
|  | Assets |  | Investments in Equity Method Investees |  | Capital Expenditures |  | Assets |  | Investments in Equity Method Investees |  | Capital Expenditures
Communications |  | $ | 522,758 |  |  | $ | — |  |  | $ | 14,107 |  |  | $ | 521,252 |  |  | $ | — |  |  | $ | 17,410 |
WarnerMedia |  | 150,947 |  |  | 1,123 |  |  | 699 |  |  | 143,492 |  |  | 3,011 |  |  | 1,205 |
Latin America |  | 15,811 |  |  | 590 |  |  | 708 |  |  | 20,606 |  |  | 650 |  |  | 757 |
Corporate and eliminations |  | (163,755) |  |  | 67 |  |  | 161 |  |  | (133,681) |  |  | 34 |  |  | 263 |
Total |  | $ | 525,761 |  |  | $ | 1,780 |  |  | $ | 15,675 |  |  | $ | 551,669 |  |  | $ | 3,695 |  |  | $ | 19,635 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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