AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
Service												$	38,504		$	38,883		(1.0)		%
Equipment												5,435			3,896			39.5		%
Total Operating Revenues												43,939			42,779			2.7		%
Operating Expenses
Cost of revenues
Equipment												5,556			4,092			35.8		%
Broadcast, programming and operations												7,538			6,754			11.6		%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)												7,993			8,342			(4.2)		%
Selling, general and administrative												9,382			8,760			7.1		%
Asset impairments and abandonments												—			123			—		%
Depreciation and amortization												5,809			7,222			(19.6)		%
Total Operating Expenses												36,278			35,293			2.8		%
Operating Income												7,661			7,486			2.3		%
Interest Expense												1,870			2,018			(7.3)		%
Equity in Net Income (Loss) of Affiliates												52			(6)			—		%
Other Income (Expense) — Net												4,221			803			—		%
Income Before Income Taxes												10,064			6,265			60.6		%
Income Tax Expense												2,122			1,302			63.0		%
Net Income												7,942			4,963			60.0		%
Less: Net Income Attributable to Noncontrolling Interest												(392)			(353)			(11.0)		%
Net Income Attributable to AT&T												$	7,550		$	4,610		63.8		%
Less: Preferred Stock Dividends												(50)			(32)			(56.3)		%
Net Income Attributable to Common Stock												$	7,500		$	4,578		63.8		%
Basic Earnings Per Share Attributable to Common Stock												$	1.04		$	0.63		65.1		%
Weighted Average Common Shares Outstanding (000,000)												7,161			7,187			(0.4)		%
Diluted Earnings Per Share Attributable to Common Stock												$	1.04		$	0.63		65.1		%
Weighted Average Common Shares Outstanding with Dilution (000,000)												7,188			7,214			(0.4)		%

1

AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Unaudited			Mar. 31,						Dec. 31,
			2021						2020
Assets
Current Assets
Cash and cash equivalents			$	11,342					$	9,740
Accounts receivable – net of related allowances for credit loss of $954 and $1,221			16,971						20,215
Inventories			3,347						3,695
Prepaid and other current assets			31,094						18,358
Total current assets			62,754						52,008
Noncurrent Inventories and Theatrical Film and Television Production Costs			15,626						14,752
Property, Plant and Equipment – Net			124,607						127,315
Goodwill			135,168						135,259
Licenses – Net			87,947						93,840
Trademarks and Trade Names – Net			23,043						23,297
Distribution Networks – Net			13,334						13,793
Other Intangible Assets – Net			13,384						15,386
Investments in and Advances to Equity Affiliates			1,805						1,780
Operating Lease Right-Of-Use Assets			24,415						24,714
Deposits on Wireless Licenses			23,406						—
Other Assets			21,496						23,617
Total Assets			$	546,985					$	525,761
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year			$	19,505					$	3,470
Accounts payable and accrued liabilities			48,245						50,051
Advanced billings and customer deposits			5,029						6,176
Dividends payable			3,829						3,741
Total current liabilities			76,608						63,438
Long-Term Debt			160,694						153,775
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes			61,886						60,472
Postemployment benefit obligation			14,723						18,276
Operating lease liabilities			21,766						22,202
Other noncurrent liabilities			28,229						28,358
Total deferred credits and other noncurrent liabilities			126,604						129,308
Stockholders’ Equity
Preferred stock			—						—
Common stock			7,621						7,621
Additional paid-in capital			129,856						130,175
Retained earnings			41,154						37,457
Treasury stock			(17,342)						(17,910)
Accumulated other comprehensive income			4,199						4,330
Noncontrolling interest			17,591						17,567
Total stockholders’ equity			183,079						179,240
Total Liabilities and Stockholders’ Equity			$	546,985					$	525,761

2

AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited			First Quarter
			2021						2020
Operating Activities
Net income			$	7,942					$	4,963
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			5,809						7,222
Amortization of film and television costs			2,886						2,269
Undistributed earnings from investments in equity affiliates			(47)						39
Provision for uncollectible accounts			321						780
Deferred income tax expense			1,848						259
Net (gain) loss on investments, net of impairments			(119)						(646)
Pension and postretirement benefit expense (credit)			(974)						(748)
Actuarial (gain) loss on pension and postretirement benefits			(2,844)						—
Asset impairments and abandonments			—						123
Changes in operating assets and liabilities:
Receivables			751						1,695
Other current assets, inventories and theatrical film and television production costs			(3,518)						(3,267)
Accounts payable and other accrued liabilities			(3,060)						(3,884)
Equipment installment receivables and related sales			1,190						535
Deferred customer contract acquisition and fulfillment costs			244						105
Postretirement claims and contributions			(343)						(111)
Other - net			(159)						(468)
Total adjustments			1,985						3,903
Net Cash Provided by Operating Activities			9,927						8,866
Investing Activities
Capital expenditures, including $(61) and $(28) of interest during construction			(4,033)						(4,966)
Acquisitions, net of cash acquired			(22,884)						(100)
Dispositions			51						118
(Purchases), sales and settlements of securities and investments, net			(4)						(6)
Advances to and investments in equity affiliates, net			18						(68)
Net Cash Used in Investing Activities			(26,852)						(5,022)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less			687						1,742
Issuance of other short-term borrowings			15,485						1,390
Issuance of long-term debt			9,097						4,357
Repayment of long-term debt			(902)						(4,422)
Payment of vendor financing			(1,690)						(791)
Issuance of preferred stock			—						3,869
Purchase of treasury stock			(176)						(5,463)
Issuance of treasury stock			63						58
Dividends paid			(3,741)						(3,737)
Other - net			(340)						(3,102)
Net Cash Provided by (Used in) Financing Activities			18,483						(6,099)
Net increase (decrease) in cash and cash equivalents and restricted cash			1,558						(2,255)
Cash and cash equivalents and restricted cash beginning of year			9,870						12,295
Cash and Cash Equivalents and Restricted Cash End of Period			$	11,428					$	10,040

3

AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited									First Quarter						Percent
												2021			2020			Change
Capital expenditures
Purchase of property and equipment												$	3,972		$	4,938		(19.6)		%
Interest during construction												61			28			—		%
Total Capital Expenditures												$	4,033		$	4,966		(18.8)		%
Cash Paid for Programming and Produced Film/TV Content												$	4,508		$	4,322		4.3		%
Dividends Declared per Common Share												$	0.52		$	0.52		—		%
End of Period Common Shares Outstanding (000,000)												7,140			7,125			0.2		%
Debt Ratio												49.6		%	45.7		%	390		BP
Total Employees												228,470			244,490			(6.6)		%
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2021			2020			Change
Broadband Connections
IP												14,908			14,627			1.9		%
DSL												527			688			(23.4)		%
Total Broadband Connections												15,435			15,315			0.8		%
Voice Connections
Network Access Lines												6,988			8,160			(14.4)		%
U-verse VoIP Connections												3,684			4,213			(12.6)		%
Total Retail Voice Connections												10,672			12,373			(13.7)		%
									First Quarter						Percent
												2021			2020			Change
Broadband Net Additions
IP												90			(32)			—		%
DSL												(39)			(42)			7.1		%
Total Broadband Net Additions												51			(74)			—		%

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 the Video and Government Solutions held-for-sale businesses, instead reporting those results in Corporate and Other.

Segment Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Segment Operating Revenues
Mobility												$	19,034		$	17,402		9.4		%
Business Wireline												6,046			6,266			(3.5)		%
Consumer Wireline												3,098			3,111			(0.4)		%
Total Segment Operating Revenues												28,178			26,779			5.2		%
Segment Operating Contribution
Mobility												6,002			5,788			3.7		%
Business Wireline												1,058			1,093			(3.2)		%
Consumer Wireline												305			520			(41.3)		%
Total Segment Operating Contribution												$	7,365		$	7,401		(0.5)		%

5

Mobility

Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
Service												$	14,048		$	13,968		0.6		%
Equipment												4,986			3,434			45.2		%
Total Operating Revenues												19,034			17,402			9.4		%
Operating Expenses
Operations and support												11,018			9,569			15.1		%
Depreciation and amortization												2,014			2,045			(1.5)		%
Total Operating Expenses												13,032			11,614			12.2		%
Operating Income												6,002			5,788			3.7		%
Equity in Net Income (Loss) of Affiliates												—			—			—		%
Operating Contribution												$	6,002		$	5,788		3.7		%
Operating Income Margin												31.5		%	33.3		%	(180)		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									March 31,						Percent
												2021			2020			Change
Mobility Subscribers
Postpaid												77,934			75,148			3.7		%
Postpaid phone												64,752			63,105			2.6		%
Prepaid												18,387			17,808			3.3		%
Reseller												6,501			6,736			(3.5)		%
Connected Devices												83,286			69,506			19.8		%
Total Mobility Subscribers												186,108			169,198			10.0		%
									First Quarter						Percent
												2021			2020			Change
Mobility Net Additions
Postpaid Phone Net Additions												595			163			—		%
Total Phone Net Additions												802			120			—		%
Postpaid												823			27			—		%
Prepaid												279			(45)			—		%
Reseller												(68)			(190)			64.2		%
Connected Devices												2,517			3,518			(28.5)		%
Total Mobility Net Additions												3,551			3,310			7.3		%
Postpaid Churn												0.93		%	1.08		%	(15) BP
Postpaid Phone-Only Churn												0.76		%	0.86		%	(10) BP

6

Business Wireline

Business Wireline provides advanced IP-based services, as well as traditional data services to business customers.

Results have been recast to characterize revenues as either service or equipment, consistent with the way we are managing the business unit.

Business Wireline Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
Service												$	5,872		$	6,091		(3.6)		%
Equipment												174			175			(0.6)		%
Total Operating Revenues												6,046			6,266			(3.5)		%
Operating Expenses
Operations and support												3,710			3,887			(4.6)		%
Depreciation and amortization												1,278			1,286			(0.6)		%
Total Operating Expenses												4,988			5,173			(3.6)		%
Operating Income												1,058			1,093			(3.2)		%
Equity in Net Income (Loss) of Affiliates												—			—			—		%
Operating Contribution												$	1,058		$	1,093		(3.2)		%
Operating Income Margin												17.5		%	17.4		%	10		BP

7

Consumer Wireline

Consumer Wireline provides broadband, including fiber, and voice communication services primarily to residential customers.

Results have been recast to refine the allocation of shared infrastructure and deferred customer acquisition costs between Consumer Wireline and Video.

Consumer Wireline Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
IP Broadband												$	2,205		$	2,109		4.6		%
Legacy voice and data services												519			581			(10.7)		%
Other service and equipment												374			421			(11.2)		%
Total Operating Revenues												3,098			3,111			(0.4)		%
Operating Expenses
Operations and support												2,031			1,879			8.1		%
Depreciation and amortization												762			712			7.0		%
Total Operating Expenses												2,793			2,591			7.8		%
Operating Income												305			520			(41.3)		%
Equity in Net Income (Loss) of Affiliates												—			—			—		%
Operating Contribution												$	305		$	520		(41.3)		%
Operating Income Margin												9.8		%	16.7		%	(690)		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2021			2020			Change
Broadband Connections
Total Broadband Connections												14,146			14,046			0.7		%
Fiber Broadband Connections												5,186			4,096			26.6		%
Voice Connections
Retail Consumer Switched Access Lines												2,740			3,196			(14.3)		%
U-verse Consumer VoIP Connections												3,096			3,630			(14.7)		%
Total Retail Consumer Voice Connections												5,836			6,826			(14.5)		%
									First Quarter						Percent
												2021			2020			Change
Broadband Net Additions
Total Broadband Net Additions												46			(73)			—		%
Fiber Broadband Net Additions												235			209			12.4		%

8

Business Solutions

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.

Results have been recast to conform to the current period's classification of revenues.

Business Solutions Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
Wireless service												$	1,969		$	1,949		1.0		%
Wireline service												5,872			6,091			(3.6)		%
Wireless equipment												790			710			11.3		%
Wireline equipment												174			175			(0.6)		%
Total Operating Revenues												8,805			8,925			(1.3)		%
Operating Expenses
Operations and support												5,549			5,646			(1.7)		%
Depreciation and amortization												1,614			1,609			0.3		%
Total Operating Expenses												7,163			7,255			(1.3)		%
Operating Income												1,642			1,670			(1.7)		%
Equity in Net Income (Loss) of Affiliates												—			—			—		%
Operating Contribution												$	1,642		$	1,670		(1.7)		%
Operating Income Margin												18.6		%	18.7		%	(10)		BP

9

WARNERMEDIA SEGMENT

The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. WarnerMedia content is distributed through Basic Networks, Direct-to-Consumer (DTC) or Theatrical, TV Content and Games Licensing. Segment results also include Xandr advertising, Otter Media Holdings and eliminate intercompany transactions between WarnerMedia businesses. Additional information is provided as part of the earnings material on the company’s Investor Relations website.

Segment Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Segment Operating Revenues
Subscription												$	3,830		$	3,401		12.6		%
Content												3,420			3,303			3.5		%
Advertising												1,750			1,477			18.5		%
Other												169			254			(33.5)		%
Eliminations												(643)			(670)			4.0		%
Total Segment Operating Revenues												8,526			7,765			9.8		%
Direct Costs
Programming												4,383			3,513			24.8		%
Marketing												849			526			61.4		%
Other												722			669			7.9		%
General and administrative												967			1,222			(20.9)		%
Eliminations and other												(518)			(325)			(59.4)		%
Depreciation and amortization												163			161			1.2		%
Total Operating Expenses												6,566			5,766			13.9		%
Operating Income												1,960			1,999			(2.0)		%
Equity in Net Income (Loss) of Affiliates												70			15			—		%
Total Segment Operating Contribution												$	2,030		$	2,014		0.8		%

10

LATIN AMERICA SEGMENT

The Latin America segment provides entertainment and wireless service outside of the U.S. Our international subsidiaries conduct business in their local currency and operating results are converted to U.S. dollars using official exchange rates. The Latin America segment contains two business units: Vrio and Mexico.

Segment Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Segment Operating Revenues
Vrio												$	743		$	887		(16.2)		%
Mexico												631			703			(10.2)		%
Total Segment Operating Revenues												1,374			1,590			(13.6)		%
Segment Operating Contribution
Vrio												(39)			(39)			—		%
Mexico												(134)			(145)			7.6		%
Total Segment Operating Contribution												$	(173)		$	(184)		6.0		%

Vrio

Vrio provides entertainment services to customers utilizing satellite technology in Latin America and the Caribbean.

Vrio Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues												$	743		$	887		(16.2)		%
Operating Expenses
Operations and support												661			783			(15.6)		%
Depreciation and amortization												117			147			(20.4)		%
Total Operating Expenses												778			930			(16.3)		%
Operating Income (Loss)												(35)			(43)			18.6		%
Equity in Net Income (Loss) of Affiliates												(4)			4			—		%
Operating Contribution												$	(39)		$	(39)		—		%
Operating Income Margin												(4.7)		%	(4.8)		%	10		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2021			2020			Change
Vrio Video Subscribers												10,559			13,217			(20.1)		%
									First Quarter						Percent
												2021			2020			Change
Vrio Video Net Additions												(383)			(114)			—		%

11

Mexico

Mexico provides wireless services and equipment to customers in Mexico.

Mexico Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
Wireless service												$	439		$	467		(6.0)		%
Wireless equipment												192			236			(18.6)		%
Total Operating Revenues												631			703			(10.2)		%
Operating Expenses
Operations and support												620			714			(13.2)		%
Depreciation and amortization												145			134			8.2		%
Total Operating Expenses												765			848			(9.8)		%
Operating Income (Loss)												(134)			(145)			7.6		%
Equity in Net Income (Loss) of Affiliates												—			—			—		%
Operating Contribution												$	(134)		$	(145)		7.6		%
Operating Income Margin												(21.2)		%	(20.6)		%	(60)		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2021			2020			Change
Mexico Wireless Subscribers
Postpaid												4,725			4,962			(4.8)		%
Prepaid												13,756			13,692			0.5		%
Reseller												500			504			(0.8)		%
Total Mexico Wireless Subscribers												18,981			19,158			(0.9)		%
									First Quarter						Percent
												2021			2020			Change
Mexico Wireless Net Additions
Postpaid												29			(141)			—		%
Prepaid												(2)			108			—		%
Reseller												11			32			(65.6)		%
Total Mexico Wireless Net Additions												38			(1)			—		%

12

Supplemental AT&T Advertising Revenues

As a supplemental presentation, we are providing a view of total advertising revenues generated by AT&T, which combines the advertising revenues recorded across all operating segments. This combined view presents the entire portfolio of revenues generated from AT&T assets.

Advertising Revenues
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
WarnerMedia1												$	1,750		$	1,477		18.5		%
Video												388			413			(6.1)		%
Other												83			76			9.2		%
Eliminations												(388)			(413)			6.1		%
Total Advertising Revenues												$	1,833		$	1,553		18.0		%
1 Primarily Basic Networks and Xandr of $466 and $489 for the three months ended March 31, 2021 and 2020. Excludes intrasegment eliminations.

13

Video

As a supplemental presentation, we are providing a view of our Video business that is accounted for as held-for-sale and included in Corporate and Other. Video provides video, including over-the-top (OTT) services and also sells advertising on video distribution platforms.

Results have been recast to refine the allocation of shared infrastructure and deferred customer acquisition costs between Video and Consumer Wireline.

Video Results
Dollars in millions
Unaudited									First Quarter						Percent
												2021			2020			Change
Operating Revenues
Service												$	6,684		$	7,397		(9.6)		%
Equipment												41			10			—		%
Total Operating Revenues												6,725			7,407			(9.2)		%
Operating Expenses
Operations and support												5,660			6,020			(6.0)		%
Depreciation and amortization1												164			591			(72.3)		%
Total Operating Expenses												5,824			6,611			(11.9)		%
Operating Income												901			796			13.2		%
Equity in Net Income (Loss) of Affiliates												—			—			—		%
Operating Contribution												$	901		$	796		13.2		%
Operating Income Margin												13.4		%	10.7		%	270		BP
1Includes depreciation on assets that support AT&T U-verse products that provide both video and broadband services to customers over a shared network infrastructure.
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2021			2020			Change
Premium TV Connections												15,885			18,599			(14.6)		%
									First Quarter						Percent
												2021			2020			Change
Premium TV Net Additions												(620)			(897)			30.9		%

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SUPPLEMENTAL SEGMENT RECONCILIATION

Three Months Ended
Dollars in millions
Unaudited
March 31, 2021
			Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization			Operating Income (Loss)			Equity in Net Income (Loss) of Affiliates			Segment Contribution
Communications
Mobility			$	19,034		$	11,018		$	8,016		$	2,014		$	6,002		$	—		$	6,002
Business Wireline			6,046			3,710			2,336			1,278			1,058			—			1,058
Consumer Wireline			3,098			2,031			1,067			762			305			—			305
Total Communications			28,178			16,759			11,419			4,054			7,365			—			7,365
WarnerMedia			8,526			6,403			2,123			163			1,960			70			2,030
Latin America
Vrio			743			661			82			117			(35)			(4)			(39)
Mexico			631			620			11			145			(134)			—			(134)
Total Latin America			1,374			1,281			93			262			(169)			(4)			(173)
Segment Total			38,078			24,443			13,635			4,479			9,156			$	66		$	9,222
Corporate and Other
Corporate			426			1,213			(787)			35			(822)
Video			6,725			5,660			1,065			164			901
Acquisition-related items			—			37			(37)			1,131			(1,168)
Certain significant items			—			57			(57)			—			(57)
Eliminations and consolidations			(1,290)			(941)			(349)			—			(349)
AT&T Inc.			$	43,939		$	30,469		$	13,470		$	5,809		$	7,661

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Three Months Ended
Dollars in millions
Unaudited
March 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			$	17,402		$	9,569		$	7,833		$	2,045		$	5,788		$	—		$	5,788
Business Wireline			6,266			3,887			2,379			1,286			1,093			—			1,093
Consumer Wireline			3,111			1,879			1,232			712			520			—			520
Total Communications			26,779			15,335			11,444			4,043			7,401			—			7,401
WarnerMedia			7,765			5,605			2,160			161			1,999			15			2,014
Latin America
Vrio			887			783			104			147			(43)			4			(39)
Mexico			703			714			(11)			134			(145)			—			(145)
Total Latin America			1,590			1,497			93			281			(188)			4			(184)
Segment Total			36,134			22,437			13,697			4,485			9,212			$	19		$	9,231
Corporate and Other
Corporate			534			1,012			(478)			90			(568)
Video			7,407			6,020			1,387			591			796
Acquisition-related items			—			182			(182)			2,056			(2,238)
Certain significant items			—			(658)			658			—			658
Eliminations and consolidations			(1,296)			(922)			(374)			—			(374)
AT&T Inc.			$	42,779		$	28,071		$	14,708		$	7,222		$	7,486

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