Quarterly Pro Forma Financial Information
Supplemental Unaudited Quarterly Pro Forma Financial Information1
Dollars in millions
Unaudited
Operating Revenues																		3/31/20			6/30/20			9/30/20			12/31/20			2020			3/31/21			6/30/21			9/30/21			12/31/21			2021
Reported AT&T Operating Revenues																		$	42,779		$	40,950		$	42,340		$	45,691		$	171,760		$	43,939		$	44,045		$	39,922		$	40,958		$	168,864
Less: Video (A1)																		(7,407)			(7,021)			(7,014)			(7,168)			(28,610)			(6,725)			(6,639)			(2,149)			—			(15,513)
Add: WarnerMedia sales to Video (A2)																		755			666			551			487			2,459			524			508			167			—			1,199
Add: WarnerMedia sales of DIRECTV advertising inventory (A3)																		413			294			408			603			1,718			388			410			111			—			909
Add: Other eliminations																		64			55			65			84			268			61			58			17			—			136
Less: Vrio (A4)																		(887)			(752)			(753)			(762)			(3,154)			(743)			(749)			(756)			(359)			(2,607)
Add: WarnerMedia sales to Vrio (A5)																		41			39			53			60			193			64			65			63			30			222
Pro Forma Operating Revenues																		$	35,758		$	34,231		$	35,650		$	38,995		$	144,634		$	37,508		$	37,698		$	37,375		$	40,629		$	153,210
Reported Revenue Growth Rate Y/Y																																	2.7		%	7.6		%	-5.7		%	-10.4		%	-1.7		%
Pro Forma Revenue Growth Rate Y/Y																																	4.9		%	10.1		%	4.8		%	4.2		%	5.9		%

Operations and Support Expenses																		3/31/20			6/30/20			9/30/20			12/31/20			2020			3/31/21			6/30/21			9/30/21			12/31/21			2021
Reported AT&T Operations and Support Expenses																		$	28,071		$	30,133		$	29,178		$	49,457		$	136,839		$	30,469		$	35,015		$	27,194		$	29,977		$	122,655
Adjustments (B1)																		476			(3,295)			(151)			(16,655)			(19,625)			(94)			(4,555)			(291)			(320)			(5,260)
Adjusted Operations and Support Expenses																		28,547			26,838			29,027			32,802			117,214			30,375			30,460			26,903			29,657			117,395
Less: Video (A1)																		(6,020)			(5,809)			(5,887)			(6,458)			(24,174)			(5,660)			(5,275)			(1,731)			—			(12,666)
Add: WarnerMedia sales to Video (A2)																		755			666			551			487			2,459			524			508			167			—			1,199
Add: WarnerMedia sales of DIRECTV advertising inventory (A3)																		39			38			38			38			153			39			38			12			—			89
Add: WarnerMedia/DIRECTV 70% revenue share (A3)																		289			206			286			422			1,203			271			287			78			—			636
Add: Other eliminations																		64			55			65			84			268			61			58			17			—			136
Less: Vrio (A4)																		(783)			(661)			(675)			(681)			(2,800)			(661)			(660)			(660)			(321)			(2,302)
Add: WarnerMedia sales to Vrio (A5)																		41			39			53			60			193			64			65			63			30			222
Pro Forma Adjusted Operations and Support Expenses																		$	22,932		$	21,372		$	23,458		$	26,754		$	94,516		$	25,013		$	25,481		$	24,849		$	29,366		$	104,709
Reported Operations and Support Expense Growth Rate Y/Y																																	8.5		%	16.2		%	-6.8		%	-39.4		%	-10.4		%
Adjusted Operations and Support Expense Growth Rate Y/Y																																	6.4		%	13.5		%	-7.3		%	-9.6		%	0.2		%
Pro Forma Adjusted Operations and Support Expense Growth Rate Y/Y																																	9.1		%	19.2		%	5.9		%	9.8		%	10.8		%

Depreciation and Amortization Expense																		3/31/20			6/30/20			9/30/20			12/31/20			2020			3/31/21			6/30/21			9/30/21			12/31/21			2021
Reported AT&T Depreciation and Amortization Expense																		$	7,222		$	7,285		$	7,030		$	6,979		$	28,516		$	5,809		$	5,761		$	5,619		$	5,673		$	22,862
Adjustments (B1)																		(2,056)			(2,145)			(1,921)			(1,904)			(8,026)			(1,131)			(1,069)			(1,012)			(1,021)			(4,233)
Adjusted Depreciation and Amortization Expense																		5,166			5,140			5,109			5,075			20,490			4,678			4,692			4,607			4,652			18,629
Less: Video Depreciation (A1)																		(591)			(593)			(557)			(521)			(2,262)			(164)			(148)			(44)			—			(356)
Less: Vrio Depreciation (A4)																		(147)			(127)			(126)			(120)			(520)			(117)			(114)			—			—			(231)
Add: Other consolidation																		—			1			—			1			2			—			—			—			—			—
Pro Forma Adjusted Depreciation and Amortization Expense																		$	4,428		$	4,421		$	4,426		$	4,435		$	17,710		$	4,397		$	4,430		$	4,563		$	4,652		$	18,042
Reported Depreciation and Amortization Expense Growth Rate Y/Y																																	-19.6		%	-20.9		%	-20.1		%	-18.7		%	-19.8		%
Adjusted Depreciation and Amortization Expense Growth Rate Y/Y																																	-9.4		%	-8.7		%	-9.8		%	-8.3		%	-9.1		%
Pro Forma Adjusted Depreciation and Amortization Expense Growth Rate Y/Y																																	-0.7		%	0.2		%	3.1		%	4.9		%	1.9		%

Operating Income																		3/31/20			6/30/20			9/30/20			12/31/20			2020			3/31/21			6/30/21			9/30/21			12/31/21			2021
Reported AT&T Operating Income (Loss)																		$	7,486		$	3,532		$	6,132		$	(10,745)		$	6,405		$	7,661		$	3,269		$	7,109		$	5,308		$	23,347
Adjustments (B1)																		1,580			5,440			2,072			18,559			27,651			1,225			5,624			1,303			1,341			9,493
Adjusted Operating Income																		9,066			8,972			8,204			7,814			34,056			8,886			8,893			8,412			6,649			32,840
Less: Video (A1)																		(796)			(619)			(570)			(189)			(2,174)			(901)			(1,216)			(374)			—			(2,491)
Add: WarnerMedia sales to Video (A2)																		—			—			—			—			—			—			—			—			—			—
Add: WarnerMedia sales of DIRECTV advertising inventory (A3)																		374			255			370			564			1,563			349			372			99			—			820
Add: WarnerMedia/DIRECTV 70% revenue share (A3)																		(289)			(206)			(286)			(422)			(1,203)			(271)			(287)			(78)			—			(636)
Add: Other eliminations																		—			—			—			—			—			—			—			—			—			—
Less: Vrio (A4)																		43			36			48			39			166			35			25			(96)			(38)			(74)
Add: WarnerMedia sales to Vrio (A5)																		—			—			—			—			—			—			—			—			—			—
Pro Forma Adjusted Operating Income																		$	8,398		$	8,438		$	7,766		$	7,806		$	32,408		$	8,098		$	7,787		$	7,963		$	6,611		$	30,459
Reported Operating Income Growth Rate Y/Y																																	2.3		%	-7.4		%	15.9		%	149.4		%	264.5		%
Adjusted Operating Income Growth Rate Y/Y																																	-2.0		%	-0.9		%	2.5		%	-14.9		%	-3.6		%
Pro Forma Adjusted Operating Income Growth Rate Y/Y																																	-3.6		%	-7.7		%	2.5		%	-15.3		%	-6.0		%
Reported Operating Income Margin																		17.5		%	8.6		%	14.5		%	-23.5		%	3.7		%	17.4		%	7.4		%	17.8		%	13.0		%	13.8		%
Adjusted Operating Income Margin																		21.2		%	21.9		%	19.4		%	17.1		%	19.8		%	20.2		%	20.2		%	21.1		%	16.2		%	19.4		%
Pro Forma Adjusted Operating Income Margin																		23.5		%	24.7		%	21.8		%	20.0		%	22.4		%	21.6		%	20.7		%	21.3		%	16.3		%	19.9		%

EBITDA																		3/31/20			6/30/20			9/30/20			12/31/20			2020			3/31/21			6/30/21			9/30/21			12/31/21			2021
Reported AT&T Net Income (Loss)																		$	4,963		$	1,563		$	3,168		$	(13,515)		$	(3,821)		$	7,942		$	1,874		$	6,273		$	5,390		$	21,479
Additions:
Income Tax Expense (Benefit)																		1,302			935			766			(2,038)			965			2,122			751			1,539			1,056			5,468
Interest Expense																		2,018			2,041			1,972			1,894			7,925			1,870			1,684			1,667			1,663			6,884
Equity in Net Income (Loss) of Affiliates																		6			10			(5)			(106)			(95)			(52)			(41)			(91)			(447)			(631)
Other (Income) Expense - net																		(803)			(1,017)			231			3,020			1,431			(4,221)			(999)			(2,279)			(2,354)			(9,853)
Depreciation and amortization																		7,222			7,285			7,030			6,979			28,516			5,809			5,761			5,619			5,673			22,862
EBITDA																		14,708			10,817			13,162			(3,766)			34,921			13,470			9,030			12,728			10,981			46,209
Adjustments (B1)																		(476)			3,295			151			16,655			19,625			94			4,555			291			320			5,260
Adjusted EBITDA																		14,232			14,112			13,313			12,889			54,546			13,564			13,585			13,019			11,301			51,469
Less: Video (A1)																		(1,387)			(1,212)			(1,127)			(710)			(4,436)			(1,065)			(1,364)			(418)			—			(2,847)
Add: WarnerMedia sales to Video (A2)																		—			—			—			—			—			—			—			—			—			—
Add: WarnerMedia sales of DIRECTV advertising inventory (A3)																		374			256			370			565			1,565			349			372			99			—			820
Add: WarnerMedia/DIRECTV 70% revenue share (A3)																		(289)			(206)			(286)			(422)			(1,203)			(271)			(287)			(78)			—			(636)
Add: Other eliminations																		—			—			—			—			—			—			—			—			—			—
Less: Vrio (A4)																		(104)			(91)			(78)			(81)			(354)			(82)			(89)			(96)			(38)			(305)
Add: WarnerMedia sales to Vrio (A5)																		—			—			—			—			—			—			—			—			—			—
Pro Forma Adjusted EBITDA																		$	12,826		$	12,859		$	12,192		$	12,241		$	50,118		$	12,495		$	12,217		$	12,526		$	11,263		$	48,501
Adjusted EBITDA Growth Rate Y/Y																																	-4.7		%	-3.7		%	-2.2		%	-12.3		%	-5.6		%
Pro Forma Adjusted EBITDA Growth Rate Y/Y																																	-2.6		%	-5.0		%	2.7		%	-8.0		%	-3.2		%
Adjusted EBITDA Margin																		33.3		%	34.5		%	31.4		%	28.2		%	31.8		%	30.9		%	30.8		%	32.6		%	27.6		%	30.5		%
Pro Forma Adjusted EBITDA Margin																		35.9		%	37.6		%	34.2		%	31.4		%	34.7		%	33.3		%	32.4		%	33.5		%	27.7		%	31.7		%
1 After the transaction, AT&T expects to retain incurred operations and support costs in the range of ~$500M per quarter and depreciation costs for network infrastructure that provides both U-verse video and broadband services of ~$150M per quarter, of which approximately 50% will be received from DIRECTV through transition service agreements and commercial arrangements. These pro formas do not include the impacts of accounting for the NFL SUNDAY TICKET, per the Contribution Agreement.

NOTES
(A) Notes to Pro Forma Adjustments
(A1) Video business results as reported in AT&T's consolidated financial results; quarters ended 2021 exclude retained depreciation on assets supporting U-verse products
(A2) Intercompany transactions between WarnerMedia and Video that are external following the close of the transaction
(A3) DIRECTV's advertising inventory sold by WarnerMedia (Xandr business) pursuant to commercial agreement, with WarnerMedia recording all the advertising revenues and an expense for DIRECTV's 70% revenue share
(A4) Vrio business results as reported in AT&T's consolidated financial results
(A5) Intercompany transactions between WarnerMedia and Vrio that are external following the close of the transaction
(B1) Non-GAAP Adjustments2:																		3/31/20			6/30/20			9/30/20			12/31/20			2020			3/31/21			6/30/21			9/30/21			12/31/21			2021
Merger Costs																		$	182		$	211		$	38		$	37		$	468		$	37		$	—		$	130		$	132		$	299
Employee separation costs and benefit-related (gain) loss																		119			765			40			253			1,177			57			—			—			—			57
Impairments																		123			2,319			73			16,365			18,880			—			4,555			161			188			4,904
Gain (loss) on spectrum transaction																		(900)			—			—			—			(900)			—			—			—			—			—
Adjustments to Operations and Support Expenses/ EBITDA																		(476)			3,295			151			16,655			19,625			94			4,555			291			320			5,260
Amortization of intangibles																		2,056			2,145			1,921			1,890			8,012			1,131			1,069			1,012			1,021			4,233
Impairments																		—			—			—			14			14			—			—			—			—			—
Adjustments to Operating Income																		$	1,580		$	5,440		$	2,072		$	18,559		$	27,651		$	1,225		$	5,624		$	1,303		$	1,341		$	9,493
2 As reported in AT&T's Forms 8-K filed April 22, 2020, July 23, 2020, October 22, 2020, January 27, 2021, April 22, 2021, July 22, 2021, October 21, 2021 and January 26, 2022.