AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited									First Quarter						Percent
												2023			2022			Change
Operating Revenues
Service												$	24,617		$	23,999		2.6		%
Equipment												5,522			5,713			(3.3)		%
Total Operating Revenues												30,139			29,712			1.4		%
Operating Expenses
Cost of revenues
Equipment												5,658			6,036			(6.3)		%
Other cost of revenues (exclusive of depreciation and    amortization shown separately below)												6,673			6,699			(0.4)		%
Selling, general and administrative												7,175			6,978			2.8		%
Depreciation and amortization												4,631			4,462			3.8		%
Total Operating Expenses												24,137			24,175			(0.2)		%
Operating Income												6,002			5,537			8.4		%
Interest Expense												1,708			1,626			5.0		%
Equity in Net Income of Affiliates												538			521			3.3		%
Other Income (Expense) — Net												935			2,157			(56.7)		%
Income from Continuing Operations Before Income Taxes												5,767			6,589			(12.5)		%
Income tax expense on continuing operations												1,314			1,440			(8.8)		%
Income From Continuing Operations												4,453			5,149			(13.5)		%
Income from discontinued operations, net of tax												—			15			—		%
Net Income												4,453			5,164			(13.8)		%
Less: Net Income Attributable to Noncontrolling Interest												(225)			(354)			36.4		%
Net Income Attributable to AT&T												$	4,228		$	4,810		(12.1)		%
Less: Preferred Stock Dividends												(52)			(48)			(8.3)		%
Net Income Attributable to Common Stock												$	4,176		$	4,762		(12.3)		%
Basic Earnings Per Share Attributable to Common Stock
From continuing operations												$	0.58		$	0.66		(12.1)		%
From discontinued operations												$	—		$	—		—		%
												$	0.58		$	0.66		(12.1)		%
Weighted Average Common Shares Outstanding (000,000)												7,168			7,184			(0.2)		%
Diluted Earnings Per Share Attributable to Common Stock
From continuing operations												$	0.57		$	0.65		(12.3)		%
From discontinued operations												$	—		$	—		—		%
												$	0.57		$	0.65		(12.3)		%
Weighted Average Common Shares Outstanding with Dilution (000,000)												7,474			7,556			(1.1)		%

1

AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
Unaudited			Mar. 31,						Dec. 31,
			2023						2022
Assets
Current Assets
Cash and cash equivalents			$	2,821					$	3,701
Accounts receivable – net of related allowances for credit loss of $619 and $588			10,214						11,466
Inventories			2,791						3,123
Prepaid and other current assets			14,077						14,818
Total current assets			29,903						33,108
Property, Plant and Equipment – Net			128,458						127,445
Goodwill – Net			67,895						67,895
Licenses – Net			124,502						124,092
Other Intangible Assets – Net			5,346						5,354
Investments in and Advances to Equity Affiliates			2,810						3,533
Operating Lease Right-Of-Use Assets			21,619						21,814
Other Assets			20,340						19,612
Total Assets			$	400,873					$	402,853
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year			$	13,757					$	7,467
Note payable to DIRECTV			—						130
Accounts payable and accrued liabilities			38,389						42,644
Advanced billings and customer deposits			3,922						3,918
Dividends payable			2,082						2,014
Total current liabilities			58,150						56,173
Long-Term Debt			123,727						128,423
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes			57,294						57,032
Postemployment benefit obligation			7,060						7,260
Operating lease liabilities			18,413						18,659
Other noncurrent liabilities			27,883						28,849
Total deferred credits and other noncurrent liabilities			110,650						111,800
Stockholders’ Equity
Preferred stock			—						—
Common stock			7,621						7,621
Additional paid-in capital			120,774						123,610
Retained (deficit) earnings			(15,187)						(19,415)
Treasury stock			(16,166)						(17,082)
Accumulated other comprehensive income			2,354						2,766
Noncontrolling interest			8,950						8,957
Total stockholders’ equity			108,346						106,457
Total Liabilities and Stockholders’ Equity			$	400,873					$	402,853

2

AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited			First Quarter
			2023						2022
Operating Activities
Income from continuing operations			$	4,453					$	5,149
Adjustments to reconcile income from continuing operations to net cash provided by     operating activities from continuing operations:
Depreciation and amortization			4,631						4,462
Provision for uncollectible accounts			477						430
Deferred income tax expense			529						1,150
Net (gain) loss on investments, net of impairments			(93)						87
Pension and postretirement benefit expense (credit)			(670)						(940)
Actuarial (gain) loss on pension and postretirement benefits			—						(1,053)
Changes in operating assets and liabilities:
Receivables			620						864
Other current assets			364						244
Accounts payable and other accrued liabilities			(3,409)						(2,651)
Equipment installment receivables and related sales			(243)						541
Deferred customer contract acquisition and fulfillment costs			(22)						(259)
Postretirement claims and contributions			(89)						(97)
Other - net			130						(297)
Total adjustments			2,225						2,481
Net Cash Provided by Operating Activities from Continuing Operations			6,678						7,630
Investing Activities
Capital expenditures			(4,335)						(4,568)
Acquisitions, net of cash acquired			(291)						(9,244)
Dispositions			15						7
Distributions from DIRECTV in excess of cumulative equity in earnings			774						1,315
Other - net			19						32
Net Cash Used in Investing Activities from Continuing Operations			(3,818)						(12,458)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less			(536)						2,285
Issuance of other short-term borrowings			3,627						2,593
Repayment of other short-term borrowings			—						(3,407)
Issuance of long-term debt			3,366						479
Repayment of long-term debt			(5,945)						(790)
Repayment of note payable to DIRECTV			(130)						(294)
Payment of vendor financing			(2,113)						(1,566)
Purchase of treasury stock			(188)						(197)
Issuance of treasury stock			3						26
Dividends paid			(2,014)						(3,749)
Other - net			219						(930)
Net Cash Used in Financing Activities from Continuing Operations			(3,711)						(5,550)
Net decrease in cash and cash equivalents and restricted cash from continuing operations			(851)						(10,378)
Cash flows from Discontinued Operations:
Cash (used in) provided by operating activities			—						(1,898)
Cash provided by (used in) investing activities			—						(193)
Cash provided by (used in) financing activities			—						29,801
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations			—						27,710
Net (decrease) increase in cash and cash equivalents and restricted cash			$	(851)					$	17,332
Cash and cash equivalents and restricted cash beginning of year			3,793						21,316
Cash and Cash Equivalents and Restricted Cash End of Period			$	2,942					$	38,648

3

AT&T Inc.
Consolidated Supplementary Data
Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited									First Quarter						Percent
												2023			2022			Change
Capital expenditures
Purchase of property and equipment												$	4,291		$	4,532		(5.3)		%
Interest during construction - capital expenditures												44			36			22.2		%
Total Capital Expenditures												$	4,335		$	4,568		(5.1)		%
Acquisitions, net of cash acquired
Business acquisitions												$	—		$	—		—		%
Spectrum acquisitions												63			8,956			(99.3)		%
Interest during construction - spectrum												228			288			(20.8)		%
Total Acquisitions												$	291		$	9,244		(96.9)		%
Cash paid for interest - continuing operations												$	1,971		$	2,154		(8.5)		%
Cash paid for income taxes, net of refunds - continuing operations												$	10		$	72		(86.1)		%
Dividends Declared per Common Share												$	0.2775		$	0.2775		—		%
End of Period Common Shares Outstanding (000,000)												7,149			7,159			(0.1)		%
Debt Ratio												55.9		%	48.5		%	740		BP
Total Employees												157,790			172,580			(8.6)		%

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
Unaudited									First Quarter						Percent
												2023			2022			Change
Segment Operating Revenues
Mobility												$	20,582		$	20,075		2.5		%
Business Wireline												5,331			5,640			(5.5)		%
Consumer Wireline												3,239			3,161			2.5		%
Total Segment Operating Revenues												29,152			28,876			1.0		%
Operating Income
Mobility												6,271			5,689			10.2		%
Business Wireline												378			639			(40.8)		%
Consumer Wireline												94			159			(40.9)		%
Total Operating Income												$	6,743		$	6,487		3.9		%

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2023			2022			Change
Broadband Connections
Broadband												15,061			15,130			(0.5)		%
DSL												284			403			(29.5)		%
Total Broadband Connections												15,345			15,533			(1.2)		%
Voice Connections
Retail Consumer Switched Access Lines												4,938			5,956			(17.1)		%
U-verse Consumer VoIP Connections												2,835			3,227			(12.1)		%
Total Retail Voice Connections												7,773			9,183			(15.4)		%
									First Quarter						Percent
												2023			2022			Change
Broadband Net Additions
Broadband												(14)			56			—		%
DSL												(27)			(27)			—		%
Total Broadband Net Additions												(41)			29			—		%

5

Mobility

Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
Unaudited									First Quarter						Percent
												2023			2022			Change
Operating Revenues
Service												$	15,483		$	14,724		5.2		%
Equipment												5,099			5,351			(4.7)		%
Total Operating Revenues												20,582			20,075			2.5		%
Operating Expenses
Operations and support												12,213			12,327			(0.9)		%
Depreciation and amortization												2,098			2,059			1.9		%
Total Operating Expenses												14,311			14,386			(0.5)		%
Operating Income												$	6,271		$	5,689		10.2		%
Operating Income Margin												30.5		%	28.3		%	220		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									March 31,						Percent
												2023			2022			Change
Mobility Subscribers
Postpaid												85,421			81,639			4.6		%
Postpaid phone												70,049			67,518			3.7		%
Prepaid												19,200			18,859			1.8		%
Reseller												6,192			5,383			15.0		%
Connected Devices												112,026			90,735			23.5		%
Total Mobility Subscribers1												222,839			196,616			13.3		%
1Wireless subscribers at March 31, 2023 includes a reduction of 295 subscribers and connections (206 postpaid, including 74 phone, 132 prepaid, and 89 connected devices) resulting from our 3G network shutdown.
									First Quarter						Percent
												2023			2022			Change
Mobility Net Additions
Postpaid Phone Net Additions												424			691			(38.6)		%
Total Phone Net Additions												464			804			(42.3)		%
Postpaid												542			965			(43.8)		%
Prepaid												40			116			(65.5)		%
Reseller												108			(17)			—		%
Connected Devices												4,457			4,468			(0.2)		%
Total Mobility Net Additions												5,147			5,532			(7.0)		%
Postpaid Churn												0.99		%	0.94		%	5 BP
Postpaid Phone-Only Churn												0.81		%	0.79		%	2 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
Unaudited									First Quarter						Percent
												2023			2022			Change
Operating Revenues
Service												$	5,200		$	5,478		(5.1)		%
Equipment												131			162			(19.1)		%
Total Operating Revenues												5,331			5,640			(5.5)		%
Operating Expenses
Operations and support												3,623			3,702			(2.1)		%
Depreciation and amortization												1,330			1,299			2.4		%
Total Operating Expenses												4,953			5,001			(1.0)		%
Operating Income												$	378		$	639		(40.8)		%
Operating Income Margin												7.1		%	11.3		%	(420)		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
Unaudited									First Quarter						Percent
												2023			2022			Change
Operating Revenues
Broadband												$	2,527		$	2,355		7.3		%
Legacy voice and data services												396			460			(13.9)		%
Other service and equipment												316			346			(8.7)		%
Total Operating Revenues												3,239			3,161			2.5		%
Operating Expenses
Operations and support												2,284			2,236			2.1		%
Depreciation and amortization												861			766			12.4		%
Total Operating Expenses												3,145			3,002			4.8		%
Operating Income												$	94		$	159		(40.9)		%
Operating Income Margin												2.9		%	5.0		%	(210)		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2023			2022			Change
Broadband Connections
Total Broadband and DSL Connections												13,949			14,148			(1.4)		%
Broadband												13,730			13,850			(0.9)		%
Fiber Broadband Connections												7,487			6,281			19.2		%
Voice Connections
Retail Consumer Switched Access Lines												1,921			2,324			(17.3)		%
U-verse Consumer VoIP Connections												2,212			2,628			(15.8)		%
Total Retail Consumer Voice Connections												4,133			4,952			(16.5)		%
									First Quarter						Percent
												2023			2022			Change
Broadband Net Additions
Total Broadband and DSL Net Additions												(42)			(12)			—		%
Broadband												(23)			5			—		%
Fiber Broadband Net Additions												272			289			(5.9)		%

8

LATIN AMERICA SEGMENT

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

Segment Results
Dollars in millions
Unaudited									First Quarter						Percent
												2023			2022			Change
Operating Revenues
Wireless service												$	591		$	490		20.6		%
Wireless equipment												292			200			46.0		%
Total Segment Operating Revenues												883			690			28.0		%
Operating Expenses
Operations and support												738			631			17.0		%
Depreciation and amortization												175			161			8.7		%
Total Segment Operating Expenses												913			792			15.3		%
Operating Income (Loss)												$	(30)		$	(102)		70.6		%
Operating Income Margin												(3.4)		%	(14.8)		%	1,140		BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited												March 31,						Percent
												2023			2022			Change
Mexico Wireless Subscribers
Postpaid												4,973			4,810			3.4		%
Prepaid												16,146			15,235			6.0		%
Reseller												494			458			7.9		%
Total Mexico Wireless Subscribers												21,613			20,503			5.4		%
									First Quarter						Percent
												2023			2022			Change
Mexico Wireless Net Additions
Postpaid												49			3			—		%
Prepaid												(58)			178			—		%
Reseller												19			(40)			—		%
Total Mexico Wireless Net Additions												10			141			(92.9)		%

9

SUPPLEMENTAL SEGMENT RECONCILIATION

Three Months Ended
Dollars in millions
Unaudited
March 31, 2023
			Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization			Operating Income (Loss)
Communications
Mobility			$	20,582		$	12,213		$	8,369		$	2,098		$	6,271
Business Wireline			5,331			3,623			1,708			1,330			378
Consumer Wireline			3,239			2,284			955			861			94
Total Communications			29,152			18,120			11,032			4,289			6,743
Latin America - Mexico			883			738			145			175			(30)
Segment Total			30,035			18,858			11,177			4,464			6,713
Corporate and Other
Corporate:
DTV-related retained costs			—			169			(169)			144			(313)
Parent administration support			(9)			374			(383)			1			(384)
Securitization fees			19			121			(102)			—			(102)
Value portfolio			94			28			66			5			61
Total Corporate			104			692			(588)			150			(738)
Certain significant items			—			(44)			44			17			27
Total Corporate and Other			104			648			(544)			167			(711)
AT&T Inc.			$	30,139		$	19,506		$	10,633		$	4,631		$	6,002
March 31, 2022
			Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization			Operating Income (Loss)
Communications
Mobility			$	20,075		$	12,327		$	7,748		$	2,059		$	5,689
Business Wireline			5,640			3,702			1,938			1,299			639
Consumer Wireline			3,161			2,236			925			766			159
Total Communications			28,876			18,265			10,611			4,124			6,487
Latin America - Mexico			690			631			59			161			(102)
Segment Total			29,566			18,896			10,670			4,285			6,385
Corporate and Other
Corporate:
DTV-related retained costs			8			160			(152)			134			(286)
Parent administration support			(12)			347			(359)			6			(365)
Securitization fees			16			82			(66)			—			(66)
Value portfolio			134			37			97			10			87
Total Corporate			146			626			(480)			150			(630)
Certain significant items			—			191			(191)			27			(218)
Total Corporate and Other			146			817			(671)			177			(848)
AT&T Inc.			$	29,712		$	19,713		$	9,999		$	4,462		$	5,537

10