AT&T Inc. Q2 2024 10-Q Filed

TL;DR

AT&T Q2 10-Q is in, showing stock and debt details through June 30, 2024.

AI Summary

AT&T Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024 and includes details on various financial instruments such as common stock, preferred stock, and several series of global notes with varying maturity dates in 2025, 2026, and 2028. The company is headquartered in Dallas, Texas.

Why It Matters

This filing provides investors with the latest financial performance and capital structure details for AT&T Inc. during the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing and does not indicate any immediate or unusual risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 20240725 — Filing Date (Shows when the report was officially submitted to the SEC.)

Key Players & Entities

• AT&T INC. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240725 (date) — Filing date
• Dallas, TX (location) — Company headquarters

FAQ

Key Financial Figures

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

Filing Documents

• t-20240630.htm (10-Q) — 2390KB
• exhibit1012q24.htm (EX-10.1) — 115KB
• exhibit1022q24.htm (EX-10.2) — 169KB
• exhibit1032q24.htm (EX-10.3) — 199KB
• exhibit3112q24.htm (EX-31.1) — 10KB
• exhibit3122q24.htm (EX-31.2) — 10KB
• exhibit322q24.htm (EX-32) — 8KB
• 0000732717-24-000053.txt ( ) — 11582KB
• t-20240630.xsd (EX-101.SCH) — 53KB
• t-20240630_cal.xml (EX-101.CAL) — 86KB
• t-20240630_def.xml (EX-101.DEF) — 347KB
• t-20240630_lab.xml (EX-101.LAB) — 632KB
• t-20240630_pre.xml (EX-101.PRE) — 459KB
• t-20240630_htm.xml (XML) — 2354KB

- 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 Six months ended June 30, June 30, 2024 2023 2024 2023 Operating Revenues Service $ 25,006 $ 24,850 $ 49,848 $ 49,467 Equipment 4,791 5,067 9,977 10,589 Total operating revenues 29,797 29,917 59,825 60,056 Operating Expenses Cost of revenues Equipment 4,815 5,056 9,958 10,714 Other cost of revenues (exclusive of depreciation and amortization shown separately below) 6,627 6,771 13,438 13,444 Selling, general and administrative 7,043 7,009 14,064 14,184 Asset impairments and abandonments and restructuring 480 — 639 — Depreciation and amortization 5,072 4,675 10,119 9,306 Total operating expenses 24,037 23,511 48,218 47,648 Operating Income 5,760 6,406 11,607 12,408 Other Income (Expense) Interest expense ( 1,699 ) ( 1,608 ) ( 3,423 ) ( 3,316 ) Equity in net income of affiliates 348 380 643 918 Other income (expense) — net 682 987 1,133 1,922 Total other income (expense) ( 669 ) ( 241 ) ( 1,647 ) ( 476 ) Income Before Income Taxes 5,091 6,165 9,960 11,932 Income tax expense 1,142 1,403 2,260 2,717 Net Income 3,949 4,762 7,700 9,215 Less: Net Income Attributable to Noncontrolling Interest ( 352 ) ( 273 ) ( 658 ) ( 498 ) Net Income Attributable to AT&T $ 3,597 $ 4,489 $ 7,042 $ 8,717 Less: Preferred Stock Dividends ( 51 ) ( 52 ) ( 101 ) ( 104 ) Net Income Attributable to Common Stock $ 3,546 $ 4,437 $ 6,941 $ 8,613 Basic Earnings Per Share Attributable to Common Stock $ 0.49 $ 0.61 $ 0.96 $ 1.19 Diluted Earnings Per Share Attributable to Common Stock $ 0.49 $ 0.61 $ 0.96 $ 1.19 Weighted Average Number of Common Shares Outstanding — Basic (in millions) 7,196 7,180 7,194 7,174 Weighted Average Number of Common Shares Outstanding — with Dilution (in millions) 7,198 7,180 7,195 7,327 See Notes to Consolidated Financial Statements. 3 AT&T INC. CONSOLIDATED STATEMENTS OF COMP

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. 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 ( 192 ) ( 17 ) ( 49 ) — ( 258 ) Amounts reclassified from accumulated OCI 127 1 10 1 22 2 ( 761 ) 3 ( 602 ) Net other comprehensive income (loss) ( 65 ) ( 7 ) ( 27 ) ( 761 ) ( 860 ) Balance as of June 30, 2024 $ ( 1,402 ) $ ( 64 ) $ ( 1,056 ) $ 3,962 $ 1,440 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 457 12 24 — 493 Amounts reclassified from accumulated OCI — 1 5 1 23 2 ( 982 ) 3 ( 954 ) Net other comprehensive income (loss) 457 17 47 ( 982 ) ( 461 ) Balance as of June 30, 2023 $ ( 1,343 ) $ ( 73 ) $ ( 1,951 ) $ 5,672 $ 2,305 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 comprised of strategic b

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts 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 actively market. Other items consist of : Certain significant items , which includes items associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments and restructuring, and other items for which the segments are not being evaluated. "Interest expense" and "Other income (expense) – net" are managed only on a total company basis and are, accordingly, reflected only in consolidated results. For the three months ended June 30, 2024 Revenues

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 June 30, 2023 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 20,315 $ 11,579 $ 8,736 $ 2,123 $ 6,613 Business Wireline 5,279 3,550 1,729 1,333 396 Consumer Wireline 3,251 2,226 1,025 857 168 Total Communications 28,845 17,355 11,490 4,313 7,177 Latin America - Mexico 967 821 146 185 ( 39 ) Segment Total 29,812 18,176 11,636 4,498 7,138 Corporate and Other Corporate: DTV-related retained costs — 178 ( 178 ) 152 ( 330 ) Parent administration support ( 3 ) 332 ( 335 ) 2 ( 337 ) Securitization fees 17 154 ( 137 ) — ( 137 ) Value portfolio 91 24 67 6 61 Total Corporate 105 688 ( 583 ) 160 ( 743 ) Certain significant items — ( 28 ) 28 17 11 Total Corporate and Other 105 660 ( 555 ) 177 ( 732 ) AT&T Inc. $ 29,917 $ 18,836 $ 11,081 $ 4,675 $ 6,406 For the six months ended June 30, 2024 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 41,074 $ 22,924 $ 18,150 $ 4,963 $ 13,187 Business Wireline 9,668 6,754 2,914 2,748 166 Consumer Wireline 6,697 4,505 2,192 1,795 397 Total Communications 57,439 34,183 23,256 9,506 13,750 Latin America - Mexico 2,166 1,808 358 349 9 Segment Total 59,605 35,991 23,614 9,855 13,759 Corporate and Other Corporate: DTV-related retained costs — 250 ( 250 ) 222 ( 472 ) Parent administration support — 835 ( 835 ) 3 ( 838 ) Securitization fees 55 315 ( 260 ) — ( 260 ) Value portfolio 165 51 114 9 105 Total Corporate 220 1,451 ( 1,231 ) 234 ( 1,465 ) Certain significant items — 657 ( 657 ) 30 ( 687 ) Total Corporate and Other 220 2,108 ( 1,888 ) 264 ( 2,152 ) AT&T Inc. $ 59,825 $ 38,099 $ 21,726 $ 10,119 $ 11,607 12 AT&T INC. JUNE 30, 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts For the six months ended June 30, 2023 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 40,897 $ 23,792 $ 17,105 $ 4,221 $ 12,884 Business Wireline 10,610 7,173 3,437 2,663 774 Consumer Wireline 6,490 4,510 1,980 1,718 262 Total Communications 57,997 35,475 22,522 8,602 13,920 Latin America - Mexico 1,850 1,559 291 360 ( 69 ) Segment Total 59,847 37,034 22,813 8,962 13,851 Corporate and Other Corporate: DTV-related retained costs — 347 ( 347 ) 296 ( 643 ) Parent administration support ( 12 ) 706 ( 718 ) 3 ( 721 ) Securitization fees 36 275 ( 239 ) — ( 239 ) Value portfolio 185 52 133 11 122 Total Corporate 209 1,380 ( 1,171 ) 310 ( 1,481 ) Certain significant items — ( 72 ) 72 34 38 Total Corporate

View Full Filing

View this 10-Q filing on SEC EDGAR