AT&T : Fourth-Quarter Earnings Financial and Operational Schedules & Non-GAAP Reconciliations

Financial and Operational Schedules & Non-GAAP Reconciliations

January 26th, 2022

AT&T Inc.

Financial Data

Consolidated Statements of Income

Dollars in millions except per share amounts
Unaudited		Fourth Quarter	Percent		Year Ended	Percent
		2021		2020	Change	2021		2020	Change
Operating Revenues
Service	$	34,088	$	39,051	(12.7)% $	146,391	$	152,767	(4.2)%
Equipment		6,870		6,640	3.5 %		22,473		18,993	18.3 %
Total Operating Revenues		40,958		45,691	(10.4)%		168,864		171,760	(1.7)%
Operating Expenses
Cost of revenues
Equipment		7,454		7,084	5.2 %		23,778		19,706	20.7 %
Broadcast, programming and operations		4,906		7,750	(36.7)%		24,797		27,305	(9.2)%
Other cost of revenues (exclusive of
depreciation and amortization shown		7,435		8,076	(7.9)%		31,232		32,909	(5.1)%
separately below)
Selling, general and administrative		9,994		10,182	(1.8)%		37,944		38,039	(0.2)%
Asset impairments and abandonments		188		16,365	(98.9)%		4,904		18,880	(74.0)%
Depreciation and amortization		5,673		6,979	(18.7)%		22,862		28,516	(19.8)%
Total Operating Expenses		35,650		56,436	(36.8)%		145,517		165,355	(12.0)%
Operating Income (Loss)		5,308		(10,745)	- %	23,347		6,405	- %
Interest Expense		1,663		1,894	(12.2)%		6,884		7,925	(13.1)%
Equity in Net Income of Affiliates		447		106	- %	631		95	- %
Other Income (Expense) - Net		2,354		(3,020)	- %		9,853		(1,431)	- %
Income (Loss) Before Income Taxes		6,446		(15,553)	- %	26,947		(2,856)	- %
Income Tax (Benefit) Expense		1,056		(2,038)	- %		5,468		965	- %
Net Income (Loss)		5,390		(13,515)	- %	21,479		(3,821)	- %
Less: Net Income Attributable to		(347)		(368)	5.7 %		(1,398)		(1,355)	(3.2)%
Noncontrolling Interest
Net Income (Loss) Attributable to AT&T	$	5,043	$	(13,883)	- %	$	20,081	$	(5,176)	- %
Less: Preferred Stock Dividends		(51)		(55)	7.3 %		(207)		(193)	(7.3)%
Net Income (Loss) Attributable	$	4,992	$	(13,938)	- % $	19,874	$	(5,369)	- %
to Common Stock
Basic Earnings Per Share Attributable	$	0.69	$	(1.95)	- % $	2.77	$	(0.75)	- %
to Common Stock
Weighted Average Common		7,172		7,150	0.3 %		7,168		7,157	0.2 %
Shares Outstanding (000,000)
Diluted Earnings Per Share Attributable	$	0.69	$	(1.95)	- % $	2.76	$	(0.75)	- %
to Common Stock
Weighted Average Common		7,204		7,176	0.4 %		7,199		7,183	0.2 %
Shares Outstanding with Dilution (000,000)

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AT&T Inc.

Financial Data

Consolidated Balance Sheets

Dollars in millions
Unaudited		Dec. 31,		Dec. 31,
		2021		2020
Assets
Current Assets
Cash and cash equivalents	$	21,169	$	9,740
Accounts receivable - net of related allowance for credit loss of $771 and $1,221		17,571		20,215
Inventories		3,464		3,695
Prepaid and other current assets		17,793		18,358
Total current assets		59,997		52,008
Noncurrent Inventories and Theatrical Film and Television Production Costs		18,983		14,752
Property, Plant and Equipment - Net		125,904		127,315
Goodwill		133,223		135,259
Licenses - Net		113,830		93,840
Trademarks and Trade Names - Net		21,938		23,297
Distribution Networks - Net		11,942		13,793
Other Intangible Assets - Net		11,783		15,386
Investments in and Advances to Equity Affiliates		7,274		1,780
Operating Lease Right-Of-Use Assets		24,180		24,714
Other Assets		22,568		23,617
Total Assets	$	551,622	$	525,761
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	24,630	$	3,470
Note payable to DIRECTV		1,245		-
Accounts payable and accrued liabilities		50,661		50,051
Advanced billings and customer deposits		5,303		6,176
Dividends payable		3,749		3,741
Total current liabilities		85,588		63,438
Long-Term Debt		152,724		153,775
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		64,871		60,472
Postemployment benefit obligation		12,649		18,276
Operating lease liabilities		21,261		22,202
Other noncurrent liabilities		30,578		28,358
Noncurrent portion of note payable to DIRECTV		96		-
Total deferred credits and other noncurrent liabilities		129,455		129,308
Stockholders' Equity
Preferred stock		-		-
Common stock		7,621		7,621
Additional paid-in capital		130,112		130,175
Retained earnings		42,350		37,457
Treasury stock		(17,280)		(17,910)
Accumulated other comprehensive income		3,529		4,330
Noncontrolling interest		17,523		17,567
Total stockholders' equity		183,855		179,240
Total Liabilities and Stockholders' Equity	$	551,622	$	525,761

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AT&T Inc.

Financial Data

Consolidated Statements of Cash Flows

Dollars in millions
Unaudited		Year Ended
		2021		2020
Operating Activities
Net income (loss)	$	21,479	$	(3,821)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		22,862		28,516
Amortization of film and television costs		11,006		8,603
Distributed (undistributed) earnings from investments in equity affiliates		184		38
Provision for uncollectible accounts		1,240		1,972
Deferred income tax expense		5,246		1,675
Net (gain) loss on investments, net of impairments		(927)		(742)
Pension and postretirement benefit expense (credit)		(3,848)		(2,992)
Actuarial (gain) loss on pension and postretirement benefits		(4,140)		4,169
Asset impairments and abandonments		4,904		18,880
Changes in operating assets and liabilities:
Receivables		(634)		2,216
Other current assets, inventories and theatrical film and television production costs		(16,472)		(13,070)
Accounts payable and other accrued liabilities		1,636		(1,410)
Equipment installment receivables and related sales		(265)		(1,429)
Deferred customer contract acquisition and fulfillment costs		52		376
Postretirement claims and contributions		(822)		(985)
Other - net		456		1,134
Total adjustments		20,478		46,951
Net Cash Provided by Operating Activities		41,957		43,130
Investing Activities
Capital expenditures		(16,527)		(15,675)
Acquisitions, net of cash acquired		(25,453)		(1,851)
Dispositions		8,740		3,641
Distributions from DIRECTV in excess of cumulative equity in earnings		1,323		-
Other - net		(172)		337
Net Cash Used in Investing Activities		(32,089)		(13,548)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less		1,316		(17)
Issuance of other short-term borrowings		21,856		9,440
Repayment of other short-term borrowings		(7,510)		(9,467)
Issuance of long-term debt		9,931		31,988
Repayment of long-term debt		(3,142)		(39,964)
Note payable to DIRECTV, net of payments of $459		1,341		-
Payment of vendor financing		(4,596)		(2,966)
Issuance of preferred stock		-		3,869
Purchase of treasury stock		(202)		(5,498)
Issuance of treasury stock		96		105
Issuance of preferred interests in subsidiaries		-		1,979
Redemption of preferred interest in subsidiaries		-		(1,950)
Dividends paid		(15,068)		(14,956)
Other - net		(2,444)		(4,570)
Net Cash Provided by (Used in) Financing Activities		1,578		(32,007)
Net increase (decrease) in cash and cash equivalents and restricted cash		11,446		(2,425)
Cash and cash equivalents and restricted cash beginning of year		9,870		12,295
Cash and Cash Equivalents and Restricted Cash End of Year	$	21,316	$	9,870

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AT&T Inc.

Consolidated Supplementary Data

Supplementary Financial Data

Dollars in millions except per share amounts
Unaudited		Fourth Quarter	Percent		Year Ended	Percent
		2021		2020	Change	2021		2020	Change
Capital expenditures
Purchase of property and equipment	$	3,790	$	2,361	60.5 % $	16,354	$	15,552	5.2	%
Interest during construction		41		31	32.3 %		173		123	40.7	%
Total Capital Expenditures	$	3,831	$	2,392	60.2 % $	16,527	$	15,675	5.4	%
Acquisition, net of cash acquired
Business acquisitions	$	- $	85	- % $	-	$	238	-	%
Spectrum acquisitions		1,655		551	- %	24,672		1,613	-	%
Interest during construction - spectrum		265		-	- %		781		-	-	%
Total Acquisitions	$	1,920	$	636	- % $	25,453	$	1,851	-	%
Cash Paid for Programming and Produced Film/TV	$	4,602	$	4,617	(0.3)% $	19,164	$	14,898	28.6	%
Content
Dividends Declared per Common Share	$	0.52	$	0.52	- % $	2.08	$	2.08	-	%
End of Period Common Shares Outstanding							7,141		7,126	0.2	%
(000,000)
Debt Ratio							49.1 %		46.7 %	240	BP
Total Employees					202,600	230,760	(12.2)	%

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