AT&T Inc. Files 10-Q for Q1 2024

TL;DR

<b>AT&T Inc. has submitted its Q1 2024 10-Q filing, detailing financial activities and debt obligations.</b>

AI Summary

AT&T INC. (T-PC) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. AT&T Inc. filed its 10-Q report for the first quarter ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. It includes details on various debt instruments, such as Global Notes due in 2024, 2025, 2026, and beyond. Specific revenue segments like 'Service and Other' and 'Product' are mentioned for Q1 2024 and Q1 2023. The company's primary business is in Telephone Communications (No Radio Telephone).

Why It Matters

For investors and stakeholders tracking AT&T INC., this filing contains several important signals. This filing provides investors with a quarterly update on AT&T's financial performance and position, crucial for assessing the company's health and future prospects. The detailed listing of various debt notes indicates the company's ongoing capital structure management and its reliance on debt financing.

Risk Assessment

Risk Level: medium — AT&T INC. shows moderate risk based on this filing. The company's reliance on various debt instruments, as detailed in the filing, suggests a medium level of financial risk due to potential interest rate fluctuations and refinancing needs.

Analyst Insight

Investors should review the detailed debt schedules and revenue segment performance in the 10-Q to understand AT&T's current financial standing and operational trends.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-01-01 — Period Start Date (Quarterly report period)
• 2023-01-01 — Prior Year Period Start Date (Comparative period)
• 4813 — SIC Code (Industry classification)

Key Players & Entities

• AT&T INC. (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-05-02 (date) — Filed as of date
• 2024-01-01 (date) — Quarterly period start date
• 2023-01-01 (date) — Prior year quarterly period start date
• 4813 (industry_code) — Standard Industrial Classification
• DE (state) — State of incorporation
• 75202 (zip_code) — Business address zip code

FAQ

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q.
• 2024-05-02: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a timely update on the company's financial performance and position.)

Global Notes

Debt securities issued by a company in international markets. (Indicates AT&T's use of international debt markets to finance its operations.)

Key Financial Figures

• $1.00 — ch registered Common Shares (Par Value $1.00 Per Share) T New York Stock Exchange D

Filing Documents

• t-20240331.htm (10-Q) — 1688KB
• exhibit3111q24.htm (EX-31.1) — 10KB
• exhibit3121q24.htm (EX-31.2) — 10KB
• exhibit321q24.htm (EX-32) — 8KB
• 0000732717-24-000022.txt (&nbsp;) — 8781KB
• t-20240331.xsd (EX-101.SCH) — 53KB
• t-20240331_cal.xml (EX-101.CAL) — 84KB
• t-20240331_def.xml (EX-101.DEF) — 341KB
• t-20240331_lab.xml (EX-101.LAB) — 623KB
• t-20240331_pre.xml (EX-101.PRE) — 450KB
• t-20240331_htm.xml (XML) — 1600KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AT&T INC. CONSOLIDATED STATEMENTS OF INCOME Dollars in millions except per share amounts (Unaudited) Three months ended March 31, 2024 2023 Operating Revenues Service $ 24,842 $ 24,617 Equipment 5,186 5,522 Total operating revenues 30,028 30,139 Operating Expenses Cost of revenues Equipment 5,143 5,658 Other cost of revenues (exclusive of depreciation and amortization shown separately below) 6,811 6,673 Selling, general and administrative 7,021 7,175 Asset impairments and abandonments and restructuring 159 — Depreciation and amortization 5,047 4,631 Total operating expenses 24,181 24,137 Operating Income 5,847 6,002 Other Income (Expense) Interest expense ( 1,724 ) ( 1,708 ) Equity in net income of affiliates 295 538 Other income (expense) — net 451 935 Total other income (expense) ( 978 ) ( 235 ) Income Before Income Taxes 4,869 5,767 Income tax expense 1,118 1,314 Net Income 3,751 4,453 Less: Net Income Attributable to Noncontrolling Interest ( 306 ) ( 225 ) Net Income Attributable to AT&T $ 3,445 $ 4,228 Less: Preferred Stock Dividends ( 50 ) ( 52 ) Net Income Attributable to Common Stock $ 3,395 $ 4,176 Basic Earnings Per Share Attributable to Common Stock $ 0.47 $ 0.58 Diluted Earnings Per Share Attributable to Common Stock $ 0.47 $ 0.57 Weighted Average Number of Common Shares Outstanding — Basic (in millions) 7,192 7,168 Weighted Average Number of Common Shares Outstanding — with Dilution (in millions) 7,193 7,474 See Notes to Consolidated Financial Statements. 3 AT&T INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Dollars in millions (Unaudited) Three months ended March 31, 2024 2023 Net income $ 3,751 $ 4,453 Other comprehensive income (loss), net of tax: Foreign currency: Translation adjustment, net of taxes of $ 8 and $ 52 29 193 Securities: Net unrealized gains (losses), net of taxes of $( 2 ) and $ 8 ( 10 ) 23 Reclassification adjustment included in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Dollars in millions except per share amounts NOTE 1. PREPARATION OF INTERIM FINANCIAL STATEMENTS Basis of Presentation Throughout this document, AT&T Inc. is referred to as "we," "AT&T" or the "Company." The consolidated financial statements include the accounts of the Company and subsidiaries and affiliates which we control. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this document in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023. The results for the interim periods are not necessarily indicative of those for the full year. These consolidated financial statements include all adjustments that are necessary to present fairly the results for the presented interim periods, consisting of normal recurring accruals and other items. All significant intercompany transactions are eliminated in the consolidation process. Investments in subsidiaries and partnerships which we do not control but have significant influence are accounted for under the equity method. Earnings from certain investments accounted for using the equity method are included in our results on a one quarter lag. We also record our proportionate share of our equity method investees' other comprehensive income (OCI) items, including translation adjustments. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions, including estimates of fair value, probable losses and expenses, that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. NOTE 2. EARNINGS PER SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per sha

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts NOTE 3. OTHER COMPREHENSIVE INCOME Changes in the balances of each component included in accumulated OCI are presented below. All amounts are net of tax and exclude noncontrolling interest. Foreign Currency Translation Adjustment Net Unrealized Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivative Instruments Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2023 $ ( 1,337 ) $ ( 57 ) $ ( 1,029 ) $ 4,723 $ 2,300 Other comprehensive income (loss) before reclassifications 29 ( 10 ) 211 — 230 Amounts reclassified from accumulated OCI — 1 6 1 12 2 ( 381 ) 3 ( 363 ) Net other comprehensive income (loss) 29 ( 4 ) 223 ( 381 ) ( 133 ) Balance as of March 31, 2024 $ ( 1,308 ) $ ( 61 ) $ ( 806 ) $ 4,342 $ 2,167 Foreign Currency Translation Adjustment Net Unrealized Gains (Losses) on Securities Net Unrealized Gains (Losses) on Derivative Instruments Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2022 $ ( 1,800 ) $ ( 90 ) $ ( 1,998 ) $ 6,654 $ 2,766 Other comprehensive income (loss) before reclassifications 193 23 ( 152 ) — 64 Amounts reclassified from accumulated OCI — 1 3 1 12 2 ( 491 ) 3 ( 476 ) Net other comprehensive income (loss) 193 26 ( 140 ) ( 491 ) ( 412 ) Balance as of March 31, 2023 $ ( 1,607 ) $ ( 64 ) $ ( 2,138 ) $ 6,163 $ 2,354 1 (Gains) losses are included in "Other income (expense) - net" in the consolidated statements of income. 2 (Gains) losses are primarily included in "Interest expense" in the consolidated statements of income (see Note 7). 3 The amortization of prior service credits associated with postretirement benefits are included in "Other income (expense) - net" in the consolidated statements of income (see Note 6). NOTE 4. SEGMENT INFORMATION Our segments are c

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units: Mobility provides nationwide wireless service and equipment. 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. In the first quarter of 2024, we began offering our fixed wireless access product that provides internet services delivered over our 5G wireless network where available. Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services to residential customers in select locations and our fixed wireless access product that provides home internet services delivered over our 5G wireless network where available. Consumer Wireline also provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico. Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes. Corporate includes : DTV-related retained costs , which are costs previously allocated to the Video business that were retained after the transaction, net of reimbursements from DIRECTV Entertainment Holdings, LLC (DIRECTV) under transition service agreements. Parent administration support , which includes costs borne by AT&T where the business units do not influence decision making. Securitization fees associated with our sales of receivables (see Note 8). Value portfolio , which are businesses no longer integral to our operations or which we no longer activ

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts For the three months ended March 31, 2024 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 20,594 $ 11,639 $ 8,955 $ 2,487 $ 6,468 Business Wireline 4,913 3,487 1,426 1,362 64 Consumer Wireline 3,350 2,256 1,094 881 213 Total Communications 28,857 17,382 11,475 4,730 6,745 Latin America - Mexico 1,063 883 180 177 3 Segment Total 29,920 18,265 11,655 4,907 6,748 Corporate and Other Corporate: DTV-related retained costs — 134 ( 134 ) 120 ( 254 ) Parent administration support — 392 ( 392 ) 1 ( 393 ) Securitization fees 26 165 ( 139 ) — ( 139 ) Value portfolio 82 26 56 4 52 Total Corporate 108 717 ( 609 ) 125 ( 734 ) Certain significant items — 152 ( 152 ) 15 ( 167 ) Total Corporate and Other 108 869 ( 761 ) 140 ( 901 ) AT&T Inc. $ 30,028 $ 19,134 $ 10,894 $ 5,047 $ 5,847 For the three months ended 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 12 AT&T INC. MARCH 31, 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts The following table is a reconciliation of Segment Operating Income to "Income Before Income Taxes" reported in our consolidated statements of income: Three months ended March 31, 2024 2023 Communications $ 6,745 $ 6,743 Latin America 3 ( 30 ) Segment Operating Income 6,748 6,713 Reconciling Items: Corporate ( 734 ) ( 738 ) Transaction and other costs ( 32 ) — Amortization of intangibles acquired ( 15 ) ( 17 ) Asset impairments and abandonments and restructuring ( 159 ) — Benefit-related gains (losses) 39 44 AT&T Operating Income 5,847 6,002 Interest expense 1,724 1,708 Equity in net income of affiliates 295 538 Other income (expense) — net 451 935 Income Before Income Taxes $ 4,869 $ 5,767 NOTE 5. REVENUE RECOGNITION Revenue Categories The following tables set forth reported revenue by category and by business unit: For the three months ended March 31, 2024 Communications Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total Wireless service $ 15,994 $ — $ — $ 690 $ — $ 16,684 Business service — 4,700 — — — 4,700 Broadband — — 2,722 — — 2,722 Legacy voice and data — — 342 — 62 404 Other — — 286 — 46 332 Total Service 15,994 4,700 3,350 690 108 24,842 Equipment 4,600 213 — 373 — 5,186 Total $ 20,594 $ 4,913 $ 3,350 $ 1,063 $ 108 $ 30,028 13 AT&T INC. MARCH 31, 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts For the three months ended March 31, 2023 Communications Mobility Business Wireline Consumer Wireline Latin America Corporate & Other Total Wireless service $ 15,483 $ — $ — $ 591 $ — $ 16,074 Business service — 5,200 — — — 5,200 Broadband — — 2,527 — — 2,527 Legacy voice and data — — 396 — 83 479 Other — — 316 — 21 337 Total Service 15,483 5,200 3,239 591 104 24,617 Equipment 5,099 131 — 292 — 5,522 Total $ 20,582 $ 5,331 $ 3,239 $ 883 $ 104 $ 30,139 Deferred Customer Contract Acquisition and Fulfillment Costs Costs to acquire and fulfill customer contracts, including commissions on service activations for our Mobility, Business Wireline and Consumer Wireline services, are deferred and amortized over the contract period or expected customer relationship life, which typically ranges from three years to five years . The following table presents the deferred customer contract acquisition and fulfillment costs included on our consolidated balance sheets: March 31, December 31, Consolidated Balance Sheets 2024 2023 Deferred Acquisition Costs Prepaid and other current assets $ 3,187 $ 3,233 Other Assets 4,102 4,077 Total deferred customer contract acquisition costs $ 7,289 $ 7,310 Deferred Fulfillment Costs Prepaid and other current assets $ 2,274 $ 2,340 Other Assets 3,640 3,843 Total deferred customer contract fulfillment costs $ 5,914 $ 6,183 The following table presents deferred customer contract acquisition and fulfillment cost amortization, which are primarily included in "Selling, general and administrative" and "Other cost of revenues," respectively, for the three months ended: March 31, March 31, Consolidated Statements of Income 2024 2023 Deferred acquisition cost amortization $ 894 $ 830 Deferred fulfillment cost amortization 660 678 Contract Assets and Liabilities A contract asset is recorded when revenue is r

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