AT&T's multi-year, investment-led strategy
delivers improved free cash flow as company attracts and retains
profitable customers
DALLAS, Jan. 24,
2024 /CNW/ -- AT&T Inc. (NYSE: T) delivered
strong fourth-quarter and full-year results highlighted by
profitable 5G and AT&T Fiber subscriber gains. As a result, the
company posted strong operating income and cash from operations,
and surpassed its full-year guidance for adjusted EBITDA*, mobility
service and broadband revenue growth as well as its previously
increased guidance for free cash flow*.
Solid fourth-quarter results and strong free cash flow
close out a strong year
- Fourth quarter cash from operating activities of
$11.4 billion, up $1.0 billion or 10.0% year over year; Full-year
cash from operating activities of $38.3
billion, up $2.5 billion
versus the prior year.
- Fourth quarter free cash flow* of $6.4 billion; Full-year free cash flow* of
$16.8 billion, exceeded
previously increased guidance, and up $2.6
billion versus the prior year.
- Fourth quarter revenues of $32.0
billion, up 2.2% year over year.
- Fourth quarter operating income of $5.3 billion, with adjusted operating income*
of $5.8 billion; Full-year
operating income of $23.5
billion, with adjusted operating income* of
$24.7 billion, up 5.0% year
over year.
"We accomplished exactly what we said we would in 2023,
delivering sustainable growth and consistent business performance,
resulting in full-year free cash flow of $16.8 billion, ahead of our raised guidance. As
we advance our lead in converged connectivity, we will continue to
scale our best-in-class 5G and fiber networks to meet customers'
growing demand for seamless, ubiquitous broadband, and drive
durable growth for shareholders," said John Stankey, AT&T CEO.
Strategy enables profitable 5G and fiber subscriber
growth
- Full-year Mobility service revenues up 4.4%, above
guidance; company's best-ever full-year Mobility operating
income.
- Full-year consumer broadband revenues up 8.1%, above
guidance; driven by full-year AT&T Fiber revenue growth of
26.6%.
- 526,000 postpaid phone net adds in the fourth quarter;
more than 1.7 million for the full-year 2023 with
historically low churn levels and continued strong ARPU
growth.
- 273,000 AT&T Fiber net adds in the fourth quarter;
1.1 million net adds for full-year 2023, 16 straight
quarters with more than 200,000 net adds; sixth straight year with
1 million or more AT&T Fiber net adds.
Transformation helping to support margin
growth
- Achieved $6 billion+ run-rate cost savings target
in mid-year 2023; Strong early progress on achieving an
incremental $2 billion+ run-rate cost savings target by
mid-2026.
A leading investor in America's broadband
infrastructure
- Continued to enhance the largest wireless network in
North America1 and
expand the most reliable 5G network1; mid-band 5G
spectrum now covers 210 million+ people, achieving
end-of-year target.
- Grew the nation's largest fiber network, which now passes 26
million+ consumer and business locations; on track to pass
30 million+ locations with fiber by the end of
2025.
2024 Outlook
For the full year, AT&T expects:
- Wireless service revenue growth in the 3% range.
- Broadband revenue growth of 7%+.
- Adjusted EBITDA* growth in the 3% range.
- Capital investment* in the $21-$22 billion
range.
- Free cash flow* in the $17-$18 billion range.
- Adjusted EPS* of $2.15 to
$2.25, which includes an expected
($0.17) higher depreciation expense,
including accelerated depreciation from our open radio access
network (Open RAN) transformation, ($0.07) lower other income due to declines in
non-cash prior service credit amortization included in pension and
postretirement benefits costs, ($0.05) lower capitalized interest and
($0.03) lower adjusted equity income
from the DIRECTV investment*.
- In 2025, the company expects to deliver Adjusted EPS*
growth.
Note: AT&T's fourth-quarter earnings conference call will
be webcast at 8:30 a.m. ET on Wednesday,
January 24, 2024. The webcast and related materials,
including financial highlights, will be available on AT&T's
Investor Relations website
at https://investors.att.com.
Consolidated Financial Results
Revenues for the fourth quarter totaled
$32.0 billion versus
$31.3 billion in the year-ago
quarter, up 2.2%. This increase primarily reflects higher Mobility,
and to a lesser extent, Mexico and
Consumer Wireline revenues, partly offset by continued declines in
Business Wireline revenues.
Operating expenses were $26.8 billion versus $52.4
billion in the year-ago quarter. Operating expenses
decreased primarily from non-cash goodwill impairment charges in
the prior year quarter and benefits of continued transformation
efforts, including lower personnel costs in 2023, partially offset
by inflationary increases. The year-over-year decrease was
partially offset by increased depreciation expense and higher
equipment costs from the sale of higher-priced devices at Mobility
and subscriber growth in Mexico.
Operating income (loss) was $5.3 billion versus ($21.1) billion in the year-ago quarter. When
adjusting for certain items, adjusted operating income*
from continuing operations was $5.8
billion versus $5.7 billion in
the year-ago quarter.
Equity in net income of affiliates was
$0.3 billion, primarily from the
DIRECTV investment. With adjustment for our proportionate share of
intangible amortization, adjusted equity in net income from the
DIRECTV investment* was $0.6
billion.
Income (loss) from continuing operations
was $2.6 billion versus
($23.1) billion in the year-ago
quarter. Earnings per common share from continuing operations was
$0.30 versus ($3.20) in the year-ago quarter. Adjusting for
$0.24, which includes an actuarial
loss on benefit plans, restructuring and impairments, our
proportionate share of intangible amortization from the DIRECTV
equity method investment and other items, adjusted earnings per
diluted common share from continuing operations* was $0.54 compared to $0.61 in the year-ago quarter.
Cash from operating activities from
continuing operations was $11.4
billion, up $1.0 billion year
over year, reflecting operational growth, lower mobile device
payments, and lower voluntary benefit plan contributions, partly
offset by higher cash tax payments.
Capital expenditures were $4.6 billion in the quarter. Capital
investment*, which includes $1.0 billion of cash payments for vendor
financing, totaled $5.6 billion.
Free cash flow* was $6.4
billion for the quarter.
Full-Year Results
Revenues for the full year totaled
$122.4 billion versus
$120.7 billion in 2022, up 1.4%,
primarily driven by higher revenues from Mobility, and to a lesser
extent, Mexico and Consumer
Wireline revenues, partially offset by lower Business Wireline
revenues. Revenue increases also reflect favorable impacts of
foreign exchange rates in Mexico.
Operating expenses were $99.0 billion compared with $125.3 billion in 2022 primarily due to non-cash
goodwill impairment charges in the prior year, benefits of
continued transformation efforts, including lower personnel costs
in 2023, partially offset by inflationary cost increases. To a
lesser extent, the year-over-year decrease reflects lower equipment
costs at Mobility, driven by lower device sales and associated
selling costs in 2023 and 3G network shutdown costs in the first
quarter of 2022, higher returns on benefit-related assets and lower
customer support costs. Partially offsetting these decreases were
higher depreciation expense, increased amortization of deferred
customer acquisition costs and unfavorable impact of foreign
exchange.
Operating income (loss) was $23.5 billion versus ($4.6) billion in 2022. When adjusting for
certain items, adjusted operating income* from
continuing operations was $24.7
billion versus $23.5 billion a
year ago.
Equity in net income of affiliates was
$1.7 billion, primarily from the
DIRECTV investment. With adjustment for our proportionate share of
intangible amortization, adjusted equity in net income from the
DIRECTV investment* for full-year 2023 was $2.9 billion.
Income (loss) from continuing operations
was $15.6 billion versus ($6.9) billion a year ago. Earnings per common
share from continuing operations was $1.97 versus ($1.10) for full-year 2022. With adjustments for
both years, adjusted earnings per diluted common share from
continuing operations* was $2.41
versus $2.57 for full-year 2022.
Cash from operating activities from
continuing operations was $38.3
billion, up from $35.8 billion
in the prior year, due to operational growth, timing of working
capital, including lower device payments partially offset by lower
receivable sales, and higher cash income tax payments.
Capital expenditures were $17.9 billion for the full year. Capital
investment*, which includes $5.7 billion of cash payments for vendor
financing, totaled $23.6 billion. Free cash
flow* was $16.8
billion for the full year.
Total debt was $137.3 billion at the end of the fourth quarter,
and net debt* was $128.9 billion. The company expects to
achieve net debt-to-adjusted EBITDA* in
the 2.5x range in the first half of 2025.
Communications Operational Highlights
Fourth-quarter revenues were $30.8 billion, up 1.4% year over year due to
increases in Mobility and Consumer Wireline, which more than offset
a decline in Business Wireline. Operating income was
$6.6 billion, up 0.5% year over
year, with operating income margin of 21.5%, compared
to 21.7% in the year-ago quarter.
Mobility
- Revenues were up 4.1% year over year to $22.4 billion due to both higher service and
equipment revenues. Service revenues were $16.0 billion, up 3.9% year over year,
primarily driven by subscriber and postpaid ARPU growth.
Equipment revenues were $6.4 billion, up 4.7% year over year, driven
by sales of higher-priced phones.
- Operating expenses were $16.2
billion, up 3.4% year over year, primarily due to higher
network costs, increased amortization of customer acquisition
costs, higher equipment costs driven by sales of higher-priced
devices, and higher depreciation expense.
- Operating income was $6.2
billion, up 6.2% year over year. Operating income
margin was 27.7%, compared to 27.2% in the year-ago
quarter.
- EBITDA* was $8.4 billion, up 5.6% year over year with
EBITDA margin* of 37.4%, up from
36.9% a year ago. EBITDA service
margin* was 52.2%, up from 51.4% in the
year-ago quarter.
- Total wireless net adds were 5.9 million including:
- 759,000 postpaid net adds with:
- 526,000 postpaid phone net adds
- (48,000) postpaid tablet and other branded computing device net
losses
- 281,000 other net adds
- (132,000) prepaid phone net losses
- Postpaid churn was 1.01%, consistent with the year-ago
quarter.
- Postpaid phone churn was 0.84%, consistent with the
year-ago quarter.
- Prepaid churn was 2.97%, with Cricket substantially
lower, versus 2.87% in the year-ago quarter.
- Postpaid phone-only ARPU was $56.23, up 1.4% versus the year-ago quarter, due
to a mix shift to higher-priced unlimited plans and pricing
actions.
- FirstNet® connections reached more than 5.5 million
across approximately 27,500 agencies. FirstNet is the nationwide
communications platform dedicated to public safety. The AT&T
and FirstNet networks cover more than 99% of the U.S. population,
and FirstNet covers more first responders than any other network in
America.
Business Wireline
- Revenues were $5.1 billion, down 10.3% year over year due
to lower demand for legacy voice and data services and product
simplification, partly offset by growth in connectivity
services.
- Operating expenses were $4.9 billion, down 4.1% year over year due
to lower personnel costs associated with ongoing transformation
initiatives and lower wholesale network access costs.
- Operating income was $165 million, down 69.4%, with
operating income margin of 3.3% compared to 9.6% in the
year-ago quarter. Operating income for the prior year quarter
included impacts of about $100
million, primarily discrete intellectual property
transaction revenues that did not repeat in 2023.
- EBITDA* was $1.5 billion, down 19.3% year over year, and
was impacted by the items described above. EBITDA
margin* was 30.4%, compared to 33.7% in the year-ago
quarter.
Consumer Wireline
- Revenues were $3.4 billion, up 3.8% year over year due to
gains in broadband more than offsetting declines in legacy voice
and data and other services. Broadband revenues increased
8.3% due to fiber growth of 21.9%, partly offset by non-fiber
revenue declines of 8.4%.
- Operating expenses were $3.1 billion, up 2.7% year over year due to
increased depreciation expense, higher network-related and selling
costs, partly offset by lower customer support costs.
- Operating income was $229 million, up 21.8% year
over year with operating income margin of 6.8%, compared to
5.8% in the year-ago quarter.
- EBITDA* was $1.1 billion, up 10.2% year over year with
EBITDA margin* of 33.1%, up from 31.2% in the
year-ago quarter.
- Total broadband gains, excluding DSL, were
19,000, reflecting AT&T Fiber net adds of 273,000 and
AT&T Internet Air net adds of 67,000, more than offsetting
other non-fiber losses.
Latin America – Mexico
Operational Highlights
Revenues were $1.1 billion, up 26.6% year over year
primarily due to growth in both service and equipment revenues.
Service revenues were $671 million, up 15.9% year over
year, driven by favorable foreign exchange and subscriber growth.
Equipment revenues were $419
million, up 48.6% year over year due to higher sales from
subscriber growth and favorable foreign exchange rates.
Operating loss was ($43) million compared to ($79) million in the year-ago quarter.
EBITDA* was $137
million compared to $85
million in the year-ago quarter, reflecting improved
operations and the net favorable impact of foreign exchange.
Total wireless net adds were 562,000,
including 450,000 prepaid net adds, 151,000 postpaid net
adds and (39,000) reseller net losses.
* Further clarification
and explanation of non-GAAP measures and reconciliations to their
most comparable GAAP measures can be found in the "Non-GAAP
Measures and Reconciliations to GAAP Measures" section of the
release and at https://investors.att.com.
|
|
FirstNet and the
FirstNet logo are registered trademarks and service marks of the
First Responder Network Authority. All other marks are the property
of their respective owners.
|
|
1 Based on
comparison of carrier owned & operated networks. No AT&T
on-net coverage in select countries, including Canada. Details:
att.com/international. Destinations covered:
att.com/globalcountries. 5G claim based on nationwide
GWS drive test data. GWS conducts paid drive tests for AT&T and
uses the data in its analysis. AT&T 5G requires compatible plan
and device. 5G coverage not available everywhere. Learn more
at att.com/5Gforyou
|
About AT&T
We help more than 100 million U.S. families, friends and
neighbors, plus nearly 2.5 million businesses, connect to greater
possibility. From the first phone call 140+ years ago to our 5G
wireless and multi-gig internet offerings today, we @ATT innovate
to improve lives. For more information about AT&T Inc.
(NYSE:T), please visit us at
about.att.com. Investors can learn more at
investors.att.com.
Cautionary Language Concerning Forward-Looking
Statements
Information set forth in this news release contains financial
estimates and other forward-looking statements that are subject to
risks and uncertainties, and actual results might differ
materially. A discussion of factors that may affect future results
is contained in AT&T's filings with the Securities and Exchange
Commission. AT&T disclaims any obligation to update and revise
statements contained in this news release based on new information
or otherwise. This news release may contain certain non-GAAP
financial measures.
Non-GAAP Measures and Reconciliations to GAAP
Measures
Reconciliations of non-GAAP financial measures cited in this
document to the most directly comparable GAAP financial measures
can be found at https://investors.att.com and in our Form 8-K dated
January 24, 2024. Free cash flow,
EBITDA, adjusted EBITDA, adjusted operating income, adjusted
diluted EPS, net debt and net debt-to-adjusted EBITDA are non-GAAP
financial measures frequently used by investors and credit rating
agencies. All results metrics discussed below represent
continuing operations.
Free cash flow for 4Q23 of $6.4 billion is cash from operating
activities of $11.4 billion,
plus cash distributions from DIRECTV classified as investing
activities of $0.6 billion, minus
capital expenditures of $4.6 billion
and cash paid for vendor financing of $1.0 billion. For 2023, free
cash flow of $16.8 billion is
cash from operating activities of $38.3 billion, plus cash distributions from
DIRECTV classified as investing activities of $2.0 billion, minus capital expenditures of
$17.9 billion and cash paid for
vendor financing of $5.7 billion. For 2022, free
cash flow of $14.1 billion is
cash from operating activities of $35.8 billion, plus cash distributions from
DIRECTV classified as investing activities of $2.6 billion, minus capital expenditures of
$19.6 billion and cash paid for
vendor financing of $4.7 billion. Due to high variability
and difficulty in predicting items that impact cash from operating
activities, cash distributions from DIRECTV, capital expenditures
and vendor financing payments, the company is not able to provide a
reconciliation between projected free cash flow and the most
comparable GAAP metric without unreasonable effort.
Adjusted Operating Income is operating income adjusted
for revenues and costs we consider non-operational in nature,
including items arising from asset acquisitions or dispositions.
For 4Q23, Adjusted Operating Income of $5.8 billion is calculated as operating
income of $5.3 billion plus
$0.5 billion of adjustments. For
4Q22, Adjusted Operating Income of $5.7 billion is calculated as operating income of
($21.1) billion plus $26.7 billion of adjustments.
For 2023, Adjusted Operating Income of
$24.7 billion is calculated as
operating income of $23.5 billion plus $1.2 billion of adjustments. For
2022, Adjusted Operating Income of $23.5 billion is calculated as operating income
of ($4.6) billion plus $28.1 billion of adjustments. Adjustments for all
periods are detailed in the Discussion and Reconciliation of
Non-GAAP Measures included in our Form 8-K dated January 24, 2024.
EBITDA is operating income before depreciation and
amortization. EBITDA margin is operating income before
depreciation and amortization, divided by total revenues. EBITDA
service margin is operating income before depreciation and
amortization, divided by total service revenues. Adjusted
EBITDA is calculated by excluding from EBITDA certain
significant items that are non-operational or non-recurring in
nature, including dispositions and merger integration and
transaction costs, significant abandonments and impairments,
benefit-related gains and losses, employee separation and other
material gains and losses. Adjusted EBITDA estimates
depend on future levels of revenues and expenses which are not
reasonably estimable at this time. Accordingly, we cannot provide a
reconciliation between projected Adjusted EBITDA and the most
comparable GAAP metrics without unreasonable effort.
Capital investment provides a comprehensive view of cash
used to invest in our networks, product developments and support
systems. In connection with capital improvements, we have favorable
payment terms of 120 days or more with certain vendors, referred to
as vendor financing, which are excluded from capital expenditures
and reported as financing activities. Capital investment includes
capital expenditures and cash paid for vendor financing
($1.0 billion in 4Q23,
$5.7 billion in 2023). For
2024, capital investment is expected to be in the
$21-$22
billion range. Due to high variability and difficulty in
predicting items that impact capital expenditures and vendor
financing payments, the company is not able to provide a
reconciliation between projected capital investment and the most
comparable GAAP metrics without unreasonable effort.
Adjusted diluted EPS is calculated by excluding from
operating revenues, operating expenses, other income (expenses) and
income tax expense, certain significant items that are
non-operational or non-recurring in nature, including dispositions
and merger integration and transaction costs, actuarial gains and
losses, significant abandonments and impairment, benefit-related
gains and losses, employee separation and other material gains and
losses. Non-operational items arising from asset acquisitions and
dispositions include the amortization of intangible assets. While
the expense associated with the amortization of certain wireless
licenses and customer lists is excluded, the revenue of the
acquired companies is reflected in the measure and that those
assets contribute to revenue generation.
We also adjust for net actuarial gains or losses associated with
our pension and postemployment benefit plans due to the
often-significant impact on our results (we immediately recognize
this gain or loss in the income statement, pursuant to our
accounting policy for the recognition of actuarial gains and
losses). Consequently, our adjusted results reflect an expected
return on plan assets rather than the actual return on plan assets,
as included in the GAAP measure of income.
The tax impact of adjusting items is calculated using the
effective tax rate during the quarter except for adjustments that,
given their magnitude, can drive a change in the effective tax
rate, in these cases we use the actual tax expense or combined
marginal rate of approximately 25%.
For 4Q23, Adjusted EPS of $0.54 is Diluted EPS of $0.30 adjusted for $0.18 actuarial loss on benefit plans,
$0.06 restructuring and impairments,
$0.03 proportionate share of
intangible amortization at the DIRECTV equity method investment and
$0.01 of benefit-related, transaction
and other costs, minus $0.04 benefit
from tax items. For 4Q22, Adjusted EPS of $0.61 is Reported EPS of ($3.20) adjusted for $3.57 impairments, abandonments and
restructuring, $0.19 actuarial loss
on benefit plans, $0.04 proportionate
share of intangible amortization at the DIRECTV equity method
investment, $0.04 benefit-related and
other costs and $0.01 impact of
Accounting Standards Update (ASU) No. 2020-06, minus $0.04 benefit from tax items.
For 2023, Adjusted EPS from continuing
operations of $2.41 is Diluted EPS of
$1.97 adjusted for $0.18 restructuring and impairments, $0.17 net actuarial and settlement loss on
benefit plans, and $0.14
proportionate share of intangible amortization at the DIRECTV
equity method investment, minus $0.04
benefit from tax items and $0.01 of
benefit-related, transaction and other costs. For
2022, Adjusted EPS of $2.57 is
Reported EPS from continuing operations of ($1.10) adjusted for $3.59 impairments, abandonments and
restructuring, $0.19 benefit-related
and other costs, $0.16 proportionate
share of intangible amortization at the DIRECTV equity method
investment and $0.06 impact of ASU
No. 2020-06, minus $0.20 actuarial
gain on benefit plans and $0.13
benefit from tax items.
The company expects adjustments to 2024 reported diluted EPS to
include our proportionate share of intangible amortization at the
DIRECTV equity method investment in the range of $0.5-$0.7 billion,
a non-cash mark-to-market benefit plan gain/loss and other items.
The company expects the mark-to-market adjustment, which is driven
by interest rates and investment returns that are not reasonably
estimable at this time, to be a significant item. Our projected
2024 and 2025 Adjusted EPS depend on future levels of revenues
and expenses, most of which are not reasonably estimable at this
time. Accordingly, we cannot provide a reconciliation between these
projected non-GAAP metrics and the reported GAAP metrics without
unreasonable effort.
Adjusted Equity in Net Income from DIRECTV investment of
$0.6 billion for 4Q23
($2.9 billion for 2023) is
calculated as equity income from DIRECTV of $0.3 billion ($1.7 billion for 2023) reported in Equity in
Net Income of Affiliates and excludes $0.3
billion ($1.3 billion for
2023) of AT&T's proportionate share of the noncash depreciation
and amortization of fair value accretion from DIRECTV's revaluation
of assets and purchase price allocation.
Net Debt of $128.9 billion at December 31, 2023 is calculated as Total Debt of
$137.3 billion less Cash and Cash
Equivalents of $6.7 billion and
Time Deposits (i.e. deposits at financial institutions that are
greater than 90 days) of $1.8
billion.
Net debt-to-adjusted EBITDA is calculated by dividing net
debt by the sum of the most recent four quarters of adjusted
EBITDA. Net debt is calculated by subtracting cash and cash
equivalents and Time Deposits, from Total Debt. Adjusted EBITDA is
calculated as defined above. Net debt and adjusted EBITDA estimates
depend on future levels of revenues, expenses and other metrics
which are not reasonably estimable at this time. Accordingly, we
cannot provide a reconciliation between projected net
debt-to-adjusted EBITDA and the most comparable GAAP metrics and
related ratios without unreasonable effort.
Discussion and Reconciliation of Non-GAAP Measures for
Continuing Operations
We believe the following measures are relevant
and useful information to investors as they are part of AT&T's
internal management reporting and planning processes and are
important metrics that management uses to evaluate the operating
performance of AT&T and its segments. Management also uses
these measures as a method of comparing performance with that of
many of our competitors. These measures should be considered in
addition to, but not as a substitute for, other measures of
financial performance reported in accordance with U.S. generally
accepted accounting principles (GAAP).
Free Cash Flow
Free cash flow is defined as cash from operations
and cash distributions from DIRECTV classified as investing
activities minus capital expenditures and cash paid for vendor
financing (classified as financing activities). Free cash flow
after dividends is defined as cash from operations and cash
distributions from DIRECTV classified as investing activities,
minus capital expenditures, cash paid for vendor financing and
dividends on common and preferred shares. Free cash flow dividend
payout ratio is defined as the percentage of dividends paid on
common and preferred shares to free cash flow. We believe these
metrics provide useful information to our investors because
management views free cash flow as an important indicator of how
much cash is generated by routine business operations, including
capital expenditures and vendor financing, and from our continued
economic interest in the U.S. video operations as part of our
DIRECTV equity method investment, and makes decisions based on it.
Management also views free cash flow as a measure of cash available
to pay debt and return cash to shareowners.
Free Cash Flow and Free Cash Flow Dividend Payout
Ratio
|
Dollars in millions
|
|
|
|
|
|
Fourth
Quarter
|
|
Year Ended
|
|
2023
|
2022
|
|
2023
|
2022
|
Net cash provided by
operating activities from continuing
operations1
|
$
11,378
|
$
10,348
|
|
$
38,314
|
$
35,812
|
Add: Distributions from
DIRECTV classified as investing
activities
|
602
|
444
|
|
2,049
|
2,649
|
Less: Capital
expenditures
|
(4,601)
|
(4,229)
|
|
(17,853)
|
(19,626)
|
Less: Cash paid for
vendor financing
|
(1,006)
|
(460)
|
|
(5,742)
|
(4,697)
|
Free Cash Flow
|
6,373
|
6,103
|
|
16,768
|
14,138
|
|
|
|
|
|
|
Less: Dividends
paid
|
(2,020)
|
(2,014)
|
|
(8,136)
|
(9,859)
|
Free Cash Flow after
Dividends
|
$
4,353
|
$
4,089
|
|
$
8,632
|
$
4,279
|
Free Cash Flow Dividend Payout
Ratio
|
31.7 %
|
33.0 %
|
|
48.5 %
|
69.7 %
|
1. Includes
distributions from DIRECTV of $332 and $1,666 in the fourth
quarter and for the year ended December 31, 2023, and $379 and
$1,808 in the fourth quarter and for the year ended December 31,
2022.
|
Cash Paid for Capital Investment
In connection with capital improvements, we
negotiate with some of our vendors to obtain favorable payment
terms of 120 days or more, referred to as vendor financing, which
are excluded from capital expenditures and reported in accordance
with GAAP as financing activities. We present an additional view of
cash paid for capital investment to provide investors with a
comprehensive view of cash used to invest in our networks, product
developments and support systems.
Cash Paid for Capital
Investment
|
Dollars in millions
|
|
|
|
|
|
Fourth
Quarter
|
|
Year Ended
|
|
2023
|
2022
|
|
2023
|
2022
|
Capital
Expenditures
|
$
(4,601)
|
$
(4,229)
|
|
$
(17,853)
|
$
(19,626)
|
Cash paid for vendor
financing
|
(1,006)
|
(460)
|
|
(5,742)
|
(4,697)
|
Cash paid for Capital
Investment
|
$
(5,607)
|
$
(4,689)
|
|
$
(23,595)
|
$
(24,323)
|
EBITDA
Our calculation of EBITDA, as presented, may
differ from similarly titled measures reported by other companies.
For AT&T, EBITDA excludes other income (expense) – net, and
equity in net income (loss) of affiliates, as these do not reflect
the operating results of our subscriber base or operations that are
not under our control. Equity in net income (loss) of affiliates
represents the proportionate share of the net income (loss) of
affiliates in which we exercise significant influence, but do not
control. Because we do not control these entities, management
excludes these results when evaluating the performance of our
primary operations. EBITDA also excludes interest expense and the
provision for income taxes. Excluding these items eliminates the
expenses associated with our capital and tax structures. Finally,
EBITDA excludes depreciation and amortization in order to eliminate
the impact of capital investments. EBITDA does not give effect to
cash used for debt service requirements and thus does not reflect
available funds for distributions, reinvestment or other
discretionary uses. EBITDA is not presented as an alternative
measure of operating results or cash flows from operations, as
determined in accordance with GAAP.
EBITDA service margin is calculated as EBITDA
divided by service revenues.
These measures are used by management as a gauge
of our success in acquiring, retaining and servicing subscribers
because we believe these measures reflect AT&T's ability to
generate and grow subscriber revenues while providing a high level
of customer service in a cost-effective manner. Management also
uses these measures as a method of comparing cash generation
potential with that of many of its competitors. The financial and
operating metrics which affect EBITDA include the key revenue and
expense drivers for which management is responsible and upon which
we evaluate performance.
We believe EBITDA Service Margin (EBITDA as a
percentage of service revenues) to be a more relevant measure than
EBITDA Margin (EBITDA as a percentage of total revenue) for our
Mobility business unit operating margin. We also use wireless
service revenues to calculate margin to facilitate comparison, both
internally and externally with our wireless competitors, as they
calculate their margins using wireless service revenues as
well.
There are material limitations to using these
non-GAAP financial measures. EBITDA, EBITDA margin and EBITDA
service margin, as we have defined them, may not be comparable to
similarly titled measures reported by other companies. Furthermore,
these performance measures do not take into account certain
significant items, including depreciation and amortization,
interest expense, tax expense and equity in net income (loss) of
affiliates. For market comparability, management analyzes
performance measures that are similar in nature to EBITDA as we
present it, and considering the economic effect of the excluded
expense items independently as well as in connection with its
analysis of net income as calculated in accordance with GAAP.
EBITDA, EBITDA margin and EBITDA service margin should be
considered in addition to, but not as a substitute for, other
measures of financial performance reported in accordance with
GAAP.
EBITDA, EBITDA Margin and EBITDA Service
Margin
|
Dollars in millions
|
|
|
|
|
|
Fourth
Quarter
|
|
Year Ended
|
|
2023
|
2022
|
|
2023
|
2022
|
Income (Loss) from Continuing
Operations
|
$
2,582
|
$
(23,120)
|
|
$
15,623
|
$
(6,874)
|
Additions:
|
|
|
|
|
|
Income Tax Expense
(Benefit)
|
354
|
(77)
|
|
4,225
|
3,780
|
Interest
Expense
|
1,726
|
1,560
|
|
6,704
|
6,108
|
Equity in Net (Income)
of Affiliates
|
(337)
|
(374)
|
|
(1,675)
|
(1,791)
|
Other (Income) Expense
- Net
|
946
|
919
|
|
(1,416)
|
(5,810)
|
Depreciation and
amortization
|
4,766
|
4,595
|
|
18,777
|
18,021
|
EBITDA
|
10,037
|
(16,497)
|
|
42,238
|
13,434
|
Transaction and other
cost
|
26
|
84
|
|
98
|
425
|
Benefit-related (gain)
loss
|
(97)
|
(109)
|
|
(129)
|
108
|
Asset impairments and
abandonments and restructuring
|
589
|
26,753
|
|
1,193
|
27,498
|
Adjusted EBITDA1
|
$
10,555
|
$
10,231
|
|
$
43,400
|
$
41,465
|
1. See "Adjusting
Items" section for additional discussion and reconciliation of
adjusted items.
|
Segment and Business Unit EBITDA, EBITDA Margin and
EBITDA Service Margin
|
Dollars in millions
|
|
|
|
|
|
Fourth
Quarter
|
|
Year Ended
|
|
2023
|
2022
|
|
2023
|
2022
|
Communications Segment
|
Operating Income
|
$
6,608
|
$
6,577
|
|
$
27,801
|
$
26,736
|
Add: Depreciation and
amortization
|
4,411
|
4,258
|
|
17,363
|
16,681
|
EBITDA
|
11,019
|
10,835
|
|
45,164
|
43,417
|
|
|
|
|
|
|
Total Operating Revenues
|
30,797
|
30,365
|
|
118,038
|
117,067
|
Operating Income Margin
|
21.5 %
|
21.7 %
|
|
23.6 %
|
22.8 %
|
EBITDA Margin
|
35.8 %
|
35.7 %
|
|
38.3 %
|
37.1 %
|
|
|
|
|
|
|
Mobility
|
Operating Income
|
$
6,214
|
$
5,849
|
|
$
25,861
|
$
23,812
|
Add: Depreciation and
amortization
|
2,162
|
2,080
|
|
8,517
|
8,198
|
EBITDA
|
8,376
|
7,929
|
|
34,378
|
32,010
|
|
|
|
|
|
|
Total Operating Revenues
|
22,393
|
21,501
|
|
83,982
|
81,780
|
Service
Revenues
|
16,039
|
15,434
|
|
63,175
|
60,499
|
Operating Income Margin
|
27.7 %
|
27.2 %
|
|
30.8 %
|
29.1 %
|
EBITDA Margin
|
37.4 %
|
36.9 %
|
|
40.9 %
|
39.1 %
|
EBITDA Service Margin
|
52.2 %
|
51.4 %
|
|
54.4 %
|
52.9 %
|
|
|
|
|
|
|
Business Wireline
|
Operating Income
|
$
165
|
$
540
|
|
$
1,289
|
$
2,290
|
Add: Depreciation and
amortization
|
1,369
|
1,360
|
|
5,377
|
5,314
|
EBITDA
|
1,534
|
1,900
|
|
6,666
|
7,604
|
|
|
|
|
|
|
Total Operating Revenues
|
5,052
|
5,635
|
|
20,883
|
22,538
|
Operating Income Margin
|
3.3 %
|
9.6 %
|
|
6.2 %
|
10.2 %
|
EBITDA Margin
|
30.4 %
|
33.7 %
|
|
31.9 %
|
33.7 %
|
|
|
|
|
|
|
Consumer Wireline
|
Operating Income
|
$
229
|
$
188
|
|
$
651
|
$
634
|
Add: Depreciation and
amortization
|
880
|
818
|
|
3,469
|
3,169
|
EBITDA
|
1,109
|
1,006
|
|
4,120
|
3,803
|
|
|
|
|
|
|
Total Operating Revenues
|
3,352
|
3,229
|
|
13,173
|
12,749
|
Operating Income Margin
|
6.8 %
|
5.8 %
|
|
4.9 %
|
5.0 %
|
EBITDA Margin
|
33.1 %
|
31.2 %
|
|
31.3 %
|
29.8 %
|
|
|
|
|
|
|
Latin America Segment
|
|
|
|
|
|
Operating Income
|
$
(43)
|
$
(79)
|
|
$
(141)
|
$
(326)
|
Add: Depreciation and
amortization
|
180
|
164
|
|
724
|
658
|
EBITDA
|
137
|
85
|
|
583
|
332
|
|
|
|
|
|
|
Total Operating Revenues
|
1,090
|
861
|
|
3,932
|
3,144
|
Operating Income Margin
|
-3.9 %
|
-9.2 %
|
|
-3.6 %
|
-10.4 %
|
EBITDA Margin
|
12.6 %
|
9.9 %
|
|
14.8 %
|
10.6 %
|
Adjusting Items
Adjusting items include revenues and costs we
consider non-operational in nature, including items arising from
asset acquisitions or dispositions, including the amortization of
intangible assets. While the expense associated with the
amortization of certain wireless licenses and customer lists is
excluded, the revenue of the acquired companies is reflected in the
measure and that those assets contribute to revenue generation. We
also adjust for net actuarial gains or losses associated with our
pension and postemployment benefit plans due to the
often-significant impact on our results (we immediately recognize
this gain or loss in the income statement, pursuant to our
accounting policy for the recognition of actuarial gains and
losses). Consequently, our adjusted results reflect an expected
return on plan assets rather than the actual return on plan assets,
as included in the GAAP measure of income.
The tax impact of adjusting items is calculated
using the effective tax rate during the quarter except for
adjustments that, given their magnitude, can drive a change in the
effective tax rate, in these cases we use the actual tax expense or
combined marginal rate of approximately 25%.
Adjusting Items
|
Dollars in millions
|
|
|
|
|
|
Fourth
Quarter
|
|
Year Ended
|
|
2023
|
2022
|
|
2023
|
2022
|
Operating Expenses
|
|
|
|
|
|
Transaction and other
costs
|
$
26
|
$
84
|
|
$
98
|
$
425
|
Benefit-related (gain)
loss
|
(97)
|
(109)
|
|
(129)
|
108
|
Asset impairments and
abandonments and restructuring
|
589
|
26,753
|
|
1,193
|
27,498
|
Adjustments to Operations and Support
Expenses
|
518
|
26,728
|
|
1,162
|
28,031
|
Amortization of intangible
assets
|
21
|
16
|
|
76
|
76
|
Adjustments to Operating
Expenses
|
539
|
26,744
|
|
1,238
|
28,107
|
Other
|
|
|
|
|
|
DIRECTV intangible amortization
(proportionate share)
|
294
|
359
|
|
1,269
|
1,547
|
Benefit-related (gain)
loss, impairment of equity investment and other
|
76
|
420
|
|
390
|
1,242
|
Actuarial and
settlement (gain) loss – net
|
1,739
|
1,839
|
|
1,594
|
(1,999)
|
Adjustments to Income Before Income
Taxes
|
2,648
|
29,362
|
|
4,491
|
28,897
|
Tax impact of
adjustments
|
632
|
1,082
|
|
1,038
|
882
|
Tax-related
items
|
271
|
329
|
|
271
|
977
|
Adjustments to Net Income
|
$
1,745
|
$
27,951
|
|
$
3,182
|
$
27,038
|
|
Adjusted Operating Income, Adjusted Operating Income Margin,
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service
margin and Adjusted diluted EPS are non-GAAP financial measures
calculated by excluding from operating revenues, operating
expenses, other income (expenses) and income tax expense, certain
significant items that are non-operational or non-recurring in
nature, including dispositions and merger integration and
transaction costs, actuarial gains and losses, significant
abandonments and impairment, benefit-related gains and losses,
employee separation and other material gains and losses. Management
believes that these measures provide relevant and useful
information to investors and other users of our financial data in
evaluating the effectiveness of our operations and underlying
business trends.
Adjusted Operating Revenues, Adjusted Operating
Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted
EPS should be considered in addition to, but not as a substitute
for, other measures of financial performance reported in accordance
with GAAP. AT&T's calculation of Adjusted items, as presented,
may differ from similarly titled measures reported by other
companies.
Adjusted Operating Income, Adjusted Operating Income
Margin,
Adjusted EBITDA and Adjusted EBITDA
Margin
|
Dollars in millions
|
|
|
|
|
|
Fourth
Quarter
|
|
Year Ended
|
|
2023
|
2022
|
|
2023
|
2022
|
Operating Income
|
$
5,271
|
$ (21,092)
|
|
$
23,461
|
$
(4,587)
|
Adjustments to
Operating Expenses
|
539
|
26,744
|
|
1,238
|
28,107
|
Adjusted Operating Income
|
5,810
|
5,652
|
|
24,699
|
23,520
|
|
|
|
|
|
|
EBITDA
|
10,037
|
(16,497)
|
|
42,238
|
13,434
|
Adjustments to
Operations and Support Expenses
|
518
|
26,728
|
|
1,162
|
28,031
|
Adjusted EBITDA
|
10,555
|
10,231
|
|
43,400
|
41,465
|
|
|
|
|
|
|
Total Operating
Revenues
|
32,022
|
31,343
|
|
122,428
|
120,741
|
|
|
|
|
|
|
Operating Income
Margin
|
16.5 %
|
(67.3) %
|
|
19.2 %
|
(3.8) %
|
Adjusted Operating
Income Margin
|
18.1 %
|
18.0 %
|
|
20.2 %
|
19.5 %
|
Adjusted EBITDA Margin
|
33.0 %
|
32.6 %
|
|
35.4 %
|
34.3 %
|
Adjusted Diluted EPS
|
|
Fourth
Quarter
|
|
Year Ended
|
|
2023
|
2022
|
|
2023
|
2022
|
Diluted Earnings Per Share
(EPS)
|
$
0.30
|
$
(3.20)
|
|
$
1.97
|
$
(1.10)
|
DIRECTV intangible
amortization (proportionate share)
|
0.03
|
0.04
|
|
0.14
|
0.16
|
Actuarial and
settlement (gain) loss – net1
|
0.18
|
0.19
|
|
0.17
|
(0.20)
|
Restructuring and impairments
|
0.06
|
3.57
|
|
0.18
|
3.59
|
Benefit-related, transaction and other costs1,
2
|
0.01
|
0.05
|
|
(0.01)
|
0.25
|
Tax-related
items
|
(0.04)
|
(0.04)
|
|
(0.04)
|
(0.13)
|
Adjusted EPS
|
$
0.54
|
$
0.61
|
|
$
2.41
|
$
2.57
|
Year-over-year growth -
Adjusted
|
-11.5 %
|
|
|
-6.2 %
|
|
Weighted Average Common Shares
Outstanding
with Dilution
(000,000)
|
7,191
|
7,533
|
|
7,258
|
7,587
|
1. Includes adjustments
for actuarial gains or losses associated with our pension
and postemployment benefit plans, which we immediately
recognize in the income statement, pursuant to our accounting
policy for the recognition of actuarial gains/losses. We recorded
total net
actuarial and settlement losses of $1.6 billion in 2023. As a
result, adjusted EPS reflects an expected return on plan assets of
$2.7 billion
(based on an average expected return on plan assets of 7.5% for our
pension trust and 6.5% for our VEBA trusts), rather than the
actual
return on plan assets of $2.0 billion (actual pension return of
5.2% and VEBA return of 9.1%), included in the GAAP measure of
income.
|
2. As of January 1,
2022, we adopted Accounting Standards Update (ASU) No. 2020-06,
which requires that instruments which may be
settled in cash or stock to be presumed settled in stock in
calculating diluted EPS. While our intent was to settle the
Mobility II preferred
interests in cash, the ability to settle this instrument in
AT&T shares resulted in additional dilutive impact, the
magnitude of which was
influenced by the fair value of the Mobility II preferred interests
and the average AT&T common stock price during the reporting
period,
which could vary from period-to-period. For these reasons, we
excluded the impact of ASU 2020-06 from our adjusted EPS
calculation.
The per share impact of ASU 2020-06 was to decrease reported
diluted EPS $0.00 and $0.01 for the quarters ended December 31,
2023
and 2022, and $0.00 and $0.06 for the year ended December 31, 2023
and 2022, respectively. The Mobility II preferred interests
were
repurchased on April 5, 2023.
|
Net Debt to Adjusted EBITDA
Net Debt to EBITDA ratios are non-GAAP financial
measures frequently used by investors and credit rating agencies
and management believes these measures provide relevant and useful
information to investors and other users of our financial data. Our
Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net
Debt by the sum of the most recent four quarters Adjusted EBITDA.
Net Debt is calculated by subtracting cash and cash equivalents and
deposits at financial institutions that are greater than 90 days
(e.g., certificates of deposit and time deposits), from the sum of
debt maturing within one year and long-term debt.
Net Debt to Adjusted EBITDA -
2023
|
Dollars in millions
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March. 31
|
|
June
30,
|
|
Sept.
30,
|
|
Dec.
31,
|
|
Four Quarters
|
|
|
2023
1
|
|
2023
1
|
|
2023
1
|
|
2023
|
|
Adjusted
EBITDA
|
|
$
10,589
|
|
$
11,053
|
|
$
11,203
|
|
$
10,555
|
|
$
43,400
|
End-of-period current
debt
|
|
|
|
|
|
|
|
|
|
9,477
|
End-of-period
long-term debt
|
|
|
|
|
|
|
|
|
|
127,854
|
Total End-of-Period Debt
|
|
|
|
|
|
|
|
|
|
137,331
|
Less: Cash and Cash
Equivalents
|
|
|
|
|
|
|
|
|
|
6,722
|
Less: Time
Deposits
|
|
|
|
|
|
|
|
|
|
1,750
|
Net Debt Balance
|
|
|
|
|
|
|
|
|
|
128,859
|
Annualized Net Debt to Adjusted EBITDA
Ratio
|
|
|
|
|
|
|
|
|
|
2.97
|
1. As reported in
AT&T's Form 8-K filed October 19, 2023.
|
Net Debt to Adjusted EBITDA -
2022
|
Dollars in millions
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 31,
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Four
Quarters
|
|
|
2022
1
|
|
2022
1
|
|
2022
1
|
|
2022
1
|
|
Adjusted
EBITDA
|
|
$
10,190
|
|
$
10,330
|
|
$
10,714
|
|
$
10,231
|
|
$
41,465
|
End-of-period current
debt
|
|
|
|
|
|
|
|
|
|
7,467
|
End-of-period
long-term debt
|
|
|
|
|
|
|
|
|
|
128,423
|
Total End-of-Period Debt
|
|
|
|
|
|
|
|
|
|
135,890
|
Less: Cash and Cash
Equivalents
|
|
|
|
|
|
|
|
|
|
3,701
|
Net Debt Balance
|
|
|
|
|
|
|
|
|
|
132,189
|
Annualized Net Debt to Adjusted EBITDA
Ratio
|
|
|
|
|
|
|
|
|
|
3.19
|
1. As reported in
AT&T's Form 8-K filed October 19, 2023.
|
Supplemental Operational Measures
As a supplemental presentation to our
Communications segment operating results, we are providing a view
of our AT&T Business Solutions results which includes both
wireless and fixed operations. This combined view presents a
complete profile of the entire business customer relationship and
underscores the importance of mobile solutions to serving our
business customers. Our supplemental presentation of business
solutions operations is calculated by combining our Mobility and
Business Wireline operating units, and then adjusting to remove
non-business operations. The following table presents a
reconciliation of our supplemental Business Solutions results.
Supplemental Operational
Measure
|
|
Fourth
Quarter
|
|
|
December 31, 2023
|
|
December 31,
2022
|
|
|
Mobility
|
Business
Wireline
|
Adj.1
|
Business
Solutions
|
|
Mobility
|
Business
Wireline
|
Adj.1
|
Business
Solutions
|
Percent
Change
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
Wireless
service
|
$ 16,039
|
$
—
|
$
(13,648)
|
$
2,391
|
|
$
15,434
|
$
—
|
$ (13,176)
|
$
2,258
|
5.9 %
|
Wireline
services
|
—
|
4,873
|
—
|
4,873
|
|
—
|
5,473
|
—
|
5,473
|
(11.0) %
|
Wireless
equipment
|
6,354
|
—
|
(5,451)
|
903
|
|
6,067
|
—
|
(5,130)
|
937
|
(3.6) %
|
Wireline
equipment
|
—
|
179
|
—
|
179
|
|
—
|
162
|
—
|
162
|
10.5 %
|
Total Operating Revenues
|
22,393
|
5,052
|
(19,099)
|
8,346
|
|
21,501
|
5,635
|
(18,306)
|
8,830
|
(5.5) %
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
Operations and
support
|
14,017
|
3,518
|
(11,683)
|
5,852
|
|
13,572
|
3,735
|
(11,354)
|
5,953
|
(1.7) %
|
EBITDA
|
8,376
|
1,534
|
(7,416)
|
2,494
|
|
7,929
|
1,900
|
(6,952)
|
2,877
|
(13.3) %
|
Depreciation and
amortization
|
2,162
|
1,369
|
(1,765)
|
1,766
|
|
2,080
|
1,360
|
(1,716)
|
1,724
|
2.4 %
|
Total Operating Expenses
|
16,179
|
4,887
|
(13,448)
|
7,618
|
|
15,652
|
5,095
|
(13,070)
|
7,677
|
(0.8) %
|
Operating Income
|
$
6,214
|
$
165
|
$
(5,651)
|
$ 728
|
|
$ 5,849
|
$
540
|
$
(5,236)
|
$
1,153
|
(36.9) %
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
Margin
|
|
|
|
8.7 %
|
|
|
|
|
13.1 %
|
|
1. Non-business
wireless reported in the Communications segment under the Mobility
business unit.
|
|
Results have been
recast to conform to the current period's
classification.
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operational
Measure
|
|
Year Ended
|
|
|
December 31, 2023
|
|
December 31,
2022
|
|
|
Mobility
|
Business
Wireline
|
Adj.1
|
Business
Solutions
|
|
Mobility
|
Business
Wireline
|
Adj.1
|
Business
Solutions
|
Percent
Change
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
Wireless
service
|
$ 63,175
|
$
—
|
$
(53,752)
|
$
9,423
|
|
$
60,499
|
$
—
|
$ (51,710)
|
$
8,789
|
7.2 %
|
Wireline
service
|
—
|
20,274
|
—
|
20,274
|
|
—
|
21,891
|
—
|
21,891
|
(7.4) %
|
Wireless
equipment
|
20,807
|
—
|
(17,585)
|
3,222
|
|
21,281
|
—
|
(17,712)
|
3,569
|
(9.7) %
|
Wireline
equipment
|
—
|
609
|
—
|
609
|
|
—
|
647
|
—
|
647
|
(5.9) %
|
Total Operating Revenues
|
83,982
|
20,883
|
(71,337)
|
33,528
|
|
81,780
|
22,538
|
(69,422)
|
34,896
|
(3.9) %
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
Operations and
support
|
49,604
|
14,217
|
(40,980)
|
22,841
|
|
49,770
|
14,934
|
(41,127)
|
23,577
|
(3.1) %
|
EBITDA
|
34,378
|
6,666
|
(30,357)
|
10,687
|
|
32,010
|
7,604
|
(28,295)
|
11,319
|
(5.6) %
|
Depreciation and
amortization
|
8,517
|
5,377
|
(6,951)
|
6,943
|
|
8,198
|
5,314
|
(6,763)
|
6,749
|
2.9 %
|
Total Operating Expenses
|
58,121
|
19,594
|
(47,931)
|
29,784
|
|
57,968
|
20,248
|
(47,890)
|
30,326
|
(1.8) %
|
Operating Income
|
$ 25,861
|
$
1,289
|
$
(23,406)
|
$
3,744
|
|
$
23,812
|
$ 2,290
|
$ (21,532)
|
$
4,570
|
(18.1) %
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
Margin
|
|
|
|
11.2 %
|
|
|
|
|
13.1 %
|
|
1. Non-business
wireless reported in the Communications segment under the Mobility
business unit.
|
|
Results have been
recast to conform to the current period's
classification.
|
|
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