Item 8.01 Other Events.
Throughout this document,
For the quarter ended
For the quarter ended
Communications segment results will be recast to remove the Video and Government Solutions held-for-sale businesses, instead reporting those results in Corporate and Other. Further updates include the following: •Business Wireline business unit - Consistent with the way we will be managing the unit going forward, we will characterize revenues of Business Wireline as either "service" or "equipment" revenues. Accordingly, we have recast prior year revenues to conform to this presentation. •Consumer Wireline business unit (formerly Broadband) - The Consumer Wireline and Video Businesses have historically been operated as a single business unit, which included our U-verse products that provide both video and broadband services to customers and run on a shared network infrastructure. With our 2020 annual report and fourth quarter earnings' materials, we provided an estimate of the allocation of historical costs between those businesses. In conjunction with finalizing the deal terms of our previously announced Video transaction with TPG, we have refined these allocations, specifically shared infrastructure and deferred customer acquisition costs, to reflect how the businesses are being managed today. This recast will result in a reduction of Consumer Wireline operating income by approximately$100 million per quarter in 2020 with a corresponding increase to Video historical results. WarnerMedia segment results will reflect our operation of WarnerMedia as one integrated organization, and as such, will report operating contribution at the segment level. Additionally, we will provide revenue and direct costs for the following areas: •Basic Networks - comprised of the Turner business, including news and sports programming (formerly Turner business unit) •Direct-to-Consumer (DTC) - Global HBO Max,HBO (formerlyHome Box Office business unit including Cinemax) •Theatrical, TV Content andGames Licensing - consisting of Warner Bros. (formerly Warner Bros. business unit) With our first-quarter 2021 reporting, we will also provide additionalHBO subscriber reporting.
As a convenience to investors who may want to consider the effects of these
segment reporting updates on our historical results, including
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CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this filing contains financial estimates and other
forward-looking statements that are subject to risks and uncertainties. A
discussion of factors that may affect future results is contained in
Item 9.01 Financial Statements and Exhibits. The following exhibits are furnished as part of this report: (d) Exhibits 99.1AT&T Inc. Selected Quarterly Historical Segment Results 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 2
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