AT&T Inc. Files Q3 2024 10-Q Report

TL;DR

AT&T's Q3 2024 10-Q is in, showing common stock, preferred stock, and a slew of global notes.

AI Summary

AT&T Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position during the third quarter of 2024. Key financial instruments, including common stock, preferred stock, and various global notes with different maturity dates and interest rates, are listed.

Why It Matters

This filing provides investors and analysts with a detailed look at AT&T's financial health and operational status for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

• Q3 2024 — Reporting Period (Indicates the specific quarter the financial data pertains to.)
• 2024-09-30 — Period End Date (Marks the conclusion of the financial reporting period.)

Key Players & Entities

• AT&T INC. (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241029 (date) — Date the filing was made
• 0000732717 (company) — Central Index Key for AT&T Inc.

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-20240930.htm (10-Q) — 2418KB
• exhibit213q24.htm (EX-2.1) — 737KB
• exhibit1013q24.htm (EX-10.1) — 894KB
• exhibit1023q24.htm (EX-10.2) — 42KB
• exhibit3113q24.htm (EX-31.1) — 10KB
• exhibit3123q24.htm (EX-31.2) — 10KB
• exhibit323q24.htm (EX-32) — 8KB
• 0000732717-24-000059.txt ( ) — 13220KB
• t-20240930.xsd (EX-101.SCH) — 57KB
• t-20240930_cal.xml (EX-101.CAL) — 86KB
• t-20240930_def.xml (EX-101.DEF) — 374KB
• t-20240930_lab.xml (EX-101.LAB) — 667KB
• t-20240930_pre.xml (EX-101.PRE) — 487KB
• t-20240930_htm.xml (XML) — 2385KB

- 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 Nine months ended September 30, September 30, 2024 2023 2024 2023 Operating Revenues Service $ 25,134 $ 25,112 $ 74,982 $ 74,579 Equipment 5,079 5,238 15,056 15,827 Total operating revenues 30,213 30,350 90,038 90,406 Operating Expenses Cost of revenues Equipment 4,933 5,219 14,891 15,933 Other cost of revenues (exclusive of depreciation and amortization shown separately below) 6,697 6,835 20,135 20,279 Selling, general and administrative 6,958 7,205 21,022 21,389 Asset impairments and abandonments and restructuring 4,422 604 5,061 604 Depreciation and amortization 5,087 4,705 15,206 14,011 Total operating expenses 28,097 24,568 76,315 72,216 Operating Income 2,116 5,782 13,723 18,190 Other Income (Expense) Interest expense ( 1,675 ) ( 1,662 ) ( 5,098 ) ( 4,978 ) Equity in net income of affiliates 272 420 915 1,338 Other income (expense) — net 717 440 1,850 2,362 Total other income (expense) ( 686 ) ( 802 ) ( 2,333 ) ( 1,278 ) Income Before Income Taxes 1,430 4,980 11,390 16,912 Income tax expense 1,285 1,154 3,545 3,871 Net Income 145 3,826 7,845 13,041 Less: Net Income Attributable to Noncontrolling Interest ( 319 ) ( 331 ) ( 977 ) ( 829 ) Net Income (Loss) Attributable to AT&T $ ( 174 ) $ 3,495 $ 6,868 $ 12,212 Less: Preferred Stock Dividends ( 52 ) ( 51 ) ( 153 ) ( 155 ) Net Income (Loss) Attributable to Common Stock $ ( 226 ) $ 3,444 $ 6,715 $ 12,057 Basic Earnings (Loss) Per Share Attributable to Common Stock $ ( 0.03 ) $ 0.48 $ 0.93 $ 1.67 Diluted Earnings (Loss) Per Share Attributable to Common Stock $ ( 0.03 ) $ 0.48 $ 0.93 $ 1.67 Weighted Average Number of Common Shares Outstanding — Basic (in millions) 7,202 7,185 7,197 7,178 Weighted Average Number of Common Shares Outstanding — with Dilution (in millions) 7,208 7,185 7,200 7,280 See Notes to Consolid

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. Goodwill Impairment During the third quarter of 2024, we updated the long-term strategic plan of our Business Wireline

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued Dollars in millions except per share amounts NOTE 2. EARNINGS PER SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below: Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Numerators Numerator for basic earnings per share: Net Income (Loss) Attributable to Common Stock $ ( 226 ) $ 3,444 $ 6,715 $ 12,057 Dilutive potential common shares: Mobility preferred interests — — — 72 Share-based payment — — — 10 Numerator for diluted earnings per share $ ( 226 ) $ 3,444 $ 6,715 $ 12,139 Denominators (000,000) Denominator for basic earnings per share: Weighted average number of common shares outstanding 7,202 7,185 7,197 7,178 Dilutive potential common shares: Mobility preferred interests (in shares) — — — 95 Share-based payment (in shares) 1 6 — 3 7 Denominator for diluted earnings per share 7,208 7,185 7,200 7,280 1 For the three months ended September 30, 2024, dilutive potential common shares are not included in the computation of diluted earnings per share because their effect is antidilutive as a result of the net loss attributable to common stock. On April 5, 2023, we repurchased all our Series A Cumulative Perpetual Preferred Membership Interests in AT&T Mobility II LLC (Mobility preferred interests). For periods prior to repurchase, under Accounting Standards Update (ASU) No. 2020-06, "Debt—Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" (ASU 2020-06), the ability to settle the Mobility preferred interests in stock was reflected in our diluted earnings per share calculation. 10 AT&T INC. SEPTEMBER 30, 2024

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 ( 329 ) 13 ( 364 ) — ( 680 ) Amounts reclassified from accumulated OCI 127 1 10 1 33 2 ( 1,142 ) 3 ( 972 ) Net other comprehensive income (loss) ( 202 ) 23 ( 331 ) ( 1,142 ) ( 1,652 ) Balance as of September 30, 2024 $ ( 1,539 ) $ ( 34 ) $ ( 1,360 ) $ 3,581 $ 648 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 367 ( 25 ) 867 — 1,209 Amounts reclassified from accumulated OCI — 1 7 1 35 2 ( 1,472 ) 3 ( 1,430 ) Net other comprehensive income (loss) 367 ( 18 ) 902 ( 1,472 ) ( 221 ) Balance as of September 30, 2023 $ ( 1,433 ) $ ( 108 ) $ ( 1,096 ) $ 5,182 $ 2,545 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

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," "Other income (expense) – net" and "Equity in net income of affiliates" are managed only on a total company basis and are, accordingly, reflected only in consolidated results. For the thre

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 September 30, 2023 Revenues Operations and Support Expenses EBITDA Depreciation and Amortization Operating Income (Loss) Communications Mobility $ 20,692 $ 11,795 $ 8,897 $ 2,134 $ 6,763 Business Wireline 5,221 3,526 1,695 1,345 350 Consumer Wireline 3,331 2,300 1,031 871 160 Total Communications 29,244 17,621 11,623 4,350 7,273 Latin America - Mexico 992 837 155 184 ( 29 ) Segment Total 30,236 18,458 11,778 4,534 7,244 Corporate and Other Corporate: DTV-related retained costs — 167 ( 167 ) 144 ( 311 ) Parent administration support ( 1 ) 333 ( 33

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