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1、2023 Annual ReportF1181donD1R3.indd 1-3F1181donD1R3.indd 1-33/5/24 8:26AM3/5/24 8:26AMTo our shareowners2023 was another year of strong,consistent performance that bolsters confidence in our strategy to be the best connectivity provider through 5G and fiber.Oursimple and consistent go-to-market appr

2、oach continues to resonate with customers,enabling sustainable growth and strong cash conversion.F1181donD1R3.indd 4-6F1181donD1R3.indd 4-6020203030101We grew durable 5G and fiber relationships,attracting high-value customers and delivering expert service.More customers arechoosing AT&T and staying

3、with AT&T.Our deliberate capital allocation strategy supported another year of historic 5G and fiber investment levels while putting us on track to achieve our 2.5x net debt-to-adjusted EBITDA target in the first half of 2025.1 With a continued focus on effective and efficient operations,we achieved

4、 our 3-year,$6 billion-plus run-rate cost transformation target ahead of schedule and are making progress on an incremental$2billion-plus intargeted savings by mid-2026.In 2023,we delivered on our long-term growth strategy in 3 important ways:AT&T Inc.|2023 Annual Report 01F1181donD2R3.indd 1F1181do

5、nD2R3.indd 13/5/24 8:21AM3/5/24 8:21AMOperating with consistency and simplicityOver the past 3 years,AT&T has consistently communicated and executed an investment-led strategy built on one fundamental principle:Customers increasingly value convergedservices.They want a single provider who can suppor

6、t their connectivity needs both at home and on the go,delivering a seamless experience that allows them to connect to what they love from anywhere.We are making the right moves to deliver high-performance,converged networking at a scale and breadth second to none in the United States.With North Amer

7、icas largest wireless network2 and the nations largest3 and fastest-growing fiber network,4 no company is better suited to answer the call for widespread connectivity than AT&T.John Stankey Chief Executive Officer02F1181donD2R3.indd 2F1181donD2R3.indd 23/5/24 8:21AM3/5/24 8:21AMWireless In 2023,we a

8、dded more than 1.7 million high-value postpaid phone customers and grew Mobility service revenues by 4.4%year over year,representing the fastest growth among national wireless providers.And we did this with a continued focus on profitability,increasing Mobility EBITDA by 7.4%.5The size and quality o

9、f our network have never been better.We achieved our coverage target,reaching more than 210 million people with our nationwide mid-band 5G network to offer faster speeds and an enhanced experience on the nations most reliable 5G network.6 Our leadership in the Internet of Things is another way we co

10、nsistently bring the power of connection to our customers.Last year,we grew the total number of connected devices on our network to more than 127million.And we have more wholesale connected cars than any other carrier in the U.S.We made additional moves in 2023 to further augment our wireless offeri

11、ngs and capabilities,helping increase our effectiveness in connecting customers no matter where they are.To connect more people in more ways,we:Supported AST SpaceMobile in the worlds first direct5G voice call between 2 unmodified smartphones via alow-earth orbit satellite inspace.Selectively launch

12、ed AT&T Internet Air,our fixedwireless broadband product.We view this simple,customer-focused service as yet another tool in ourconverged connectivity toolbox.We are pleased withthe customer reception in the 30-plus locations welaunched last year.Our wireless network is the heart of FirstNet,public

13、safetys dedicated nationwide communications platform designed to help provide ubiquitous connectivity when it matters most.By delivering a best-in-class network and tailored solutions for first responders,we have become the unquestioned industry leader serving the public safety community.In just 5 y

14、ears,we have achieved more than 5.5 million FirstNet connections across approximately 27,500 agencies.FirstNet once again proved critical last year as first responders addressed large-scale disasters such as the Maui wildfires and Hurricane Idalia.Fiber2023 marked another year of AT&Ts consistent le

15、adership in fiber deployment.For the sixth straight year,we added 1million or more AT&T Fiber customers,and we closed the year with more than 26 million consumer and business locations passed with fiber.AT&T is bringing more fiber to more Americans than any of our competitors.And we know where we bu

16、ild fiber,we become the favorite to win in the marketplace because fiber is a superior technology,and customers love the value and service we offer.Our consistent and expedient delivery of fiber puts us on track to reach our previously announced goal of 30million-plus total consumer and business loc

17、ations passed with fiber by the end of 2025.Our better-than-expected returns on fiber investments potentially expand the opportunity to go beyond our initial target assuming similar build parameters and a regulatory environment that remains attractive to building infrastructure.Delivering valueOur r

18、esults only strengthen our confidence that our combination of scaled fiber and 5G offers superior value in the converged marketplace.Why?Because where we have fiber,we also see growth in wireless customers.AT&T customers with fiber and wireless service stay with us longer and drive superior returns.

19、As the only provider scaling both wireless and fiber networks,we are poised to be the provider of choice for the ubiquitous connectivity customers want.This underscores the value of delivering converged connectivity at scale and reinforces the soundness of our strategy and actions over the past 3 ye

20、ars.In 2023,we grew adjusted operating income7 by 5%and free cash flow by more than 18%year over year.8 This success results directly from our investment-led strategy and consistent execution to drive profitable and sustainable growth.Looking to the future,AT&T is well-positioned to lead and grow hi

21、gh-performance networking that seamlessly combines fiber,mobile and fixed wireless and satellite technology in the most secure,effective package desired by our customers.AT&T Inc.|2023 Annual Report 03F1181donD2R3.indd 3F1181donD2R3.indd 33/5/24 8:21AM3/5/24 8:21AMWe are one of Americas critical inf

22、rastructure providers,and with that brings a responsibility to be a leader in helping to connect every American to the internet and to build world-class wireless and broadband infrastructure.As a nation,we have dedicated substantial private and public resources to building an excellent foundation fo

23、r the future of fast,reliable and affordable connectivity.Inrecent years,we have seen record levels of investment in broadband infrastructure and wireless networks,which is bringing new high-speed connectivity to cities and towns across the country.The result:Robust broadband networks that carried t

24、he U.S.through the Covid-19 pandemic and 5G service that is more widely available here than in any othercountry.Smart public policy and regulatory approaches are key to getting the best infrastructure in place.Unfortunately,some policymakers have been pursuing counterproductive proposals that misali

25、gn incentives and create uncertainty,which ultimately mutes private investment and undermines efforts to deploy infrastructure and connect Americans.If we are trying to close the broadband gap,Washington could do so much more effectively by focusing on policies that incentivize private investment an

26、d advance the shared goal of connecting all Americans.Among other priorities,thisincludes:Implementing the Infrastructure and Jobs Act in accordance with Congressional intent;Finding a sustainable and permanent solution to subsidizing connectivity for low-income families;Building a robust spectrum p

27、ipeline that enables wireless carriers to meet the seemingly insatiable demand for mobile connectivity.It is crucial that policymakers join us in focusing on what customers want and what the country needs.For growth and competitiveness at a global level,the U.S.needs to continue to build ubiquitous

28、connectivity that will underpin the many technological advancements on the horizon.The foundation of the United States global technology leadership has been built on the effective capital allocation and innovation of the private sector,and taking the final steps to connect every American to the inte

29、rnet should follow the same winning formula.Thank youToday,AT&T is a more simple and focused company,meeting the needs of current and future customers and delivering consistent financial performance.Our strength and resilience come from our hardworking leadership team and dedicated employees,who sha

30、re apassion for connecting people to greater possibility.To our employees:Thank you for your commitment to serving our customers and moving the business forward.Your enthusiasm behind our purpose brings energy to our workplaces and fosters a culture of contribution,capability and engagement.We are c

31、ommitted to building a workplace where a wide variety of backgrounds and perspectives help achieve our purpose and fulfill the potential of every individual who chooses to work here.We are proud to be the only major U.S.telecommunications company with a fully unionized frontline workforce,and we dee

32、ply value our constructive partnerships.To our customers:Thank you for choosing and staying with AT&T.You inspire us to be the best connectivity provider and motivate us to fulfill our role as a critical infrastructure provider in this country.We will continue to put your needs first in return for t

33、he trust you place in us to connect you in every way,every day.To our shareowners:Thank you for your confidence in AT&T.We entered 2024 with business fundamentals that have never been stronger or more resilient.Wewill continue our focus on improving our returns to you.Acting responsiblyJohn Stankey

34、Chief Executive Officer,AT&T Inc.February 23,2024Sincerely,04F1181donD2R3.indd 4F1181donD2R3.indd 43/5/24 8:21AM3/5/24 8:21AMUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For th

35、e fiscal year ended December 31,2023ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from _ toCommission File Number:001-8610AT&T INC.(Exact name of registrant as specified in its charter)Delaware43-1301883(State or other jurisdiction

36、of incorporation or organization)(I.R.S.Employer Identification No.)208 S.Akard St.Dallas,Texas75202(Address of principal executive office)(Zip Code)Registrants telephone number,including area code 210-821-4105Securities registered pursuant to Section 12(b)of the Act:Name of each exchangeTitle of ea

37、ch classTrading Symbol(s)on which registeredCommon Shares(Par Value$1.00 Per Share)TNew York Stock ExchangeDepositary Shares,each representing a 1/1000th interest in a share of5.000%Perpetual Preferred Stock,Series AT PRANew York Stock ExchangeDepositary Shares,each representing a 1/1000th interest

38、in a share of4.750%Perpetual Preferred Stock,Series CT PRCNew York Stock ExchangeAT&T Inc.2.400%Global Notes due March 15,2024T 24ANew York Stock ExchangeAT&T Inc.Floating Rate Global Notes due March 6,2025T 25ANew York Stock ExchangeAT&T Inc.3.550%Global Notes due November 18,2025T 25BNew York Stoc

39、k ExchangeAT&T Inc.3.500%Global Notes due December 17,2025T 25New York Stock ExchangeAT&T Inc.0.250%Global Notes due March 4,2026T 26ENew York Stock ExchangeAT&T Inc.1.800%Global Notes due September 5,2026T 26DNew York Stock ExchangeAT&T Inc.2.900%Global Notes due December 4,2026T 26ANew York Stock

40、ExchangeAT&T Inc.1.600%Global Notes due May 19,2028T 28CNew York Stock ExchangeAT&T Inc.2.350%Global Notes due September 5,2029T 29DNew York Stock ExchangeAT&T Inc.4.375%Global Notes due September 14,2029T 29BNew York Stock ExchangeAT&T Inc.2.600%Global Notes due December 17,2029T 29ANew York Stock

41、ExchangeAT&T Inc.0.800%Global Notes due March 4,2030T 30BNew York Stock ExchangeAT&T Inc.3.950%Global Notes due April 30,2031T 31FNew York Stock ExchangeAT&T Inc.2.050%Global Notes due May 19,2032T 32ANew York Stock ExchangeAT&T Inc.3.550%Global Notes due December 17,2032T 32New York Stock ExchangeA

42、T&T Inc.5.200%Global Notes due November 18,2033T 33New York Stock ExchangeSecurities registered pursuant to Section 12(b)of the Act(continued):Name of each exchangeTitle of each classTrading Symbol(s)on which registeredAT&T Inc.3.375%Global Notes due March 15,2034T 34New York Stock ExchangeAT&T Inc.

43、4.300%Global Notes due November 18,2034T 34CNew York Stock ExchangeAT&T Inc.2.450%Global Notes due March 15,2035T 35New York Stock ExchangeAT&T Inc.3.150%Global Notes due September 4,2036T 36ANew York Stock ExchangeAT&T Inc.2.600%Global Notes due May 19,2038T 38CNew York Stock ExchangeAT&T Inc.1.800

44、%Global Notes due September 14,2039T 39BNew York Stock ExchangeAT&T Inc.7.000%Global Notes due April 30,2040T 40New York Stock ExchangeAT&T Inc.4.250%Global Notes due June 1,2043T 43New York Stock ExchangeAT&T Inc.4.875%Global Notes due June 1,2044T 44New York Stock ExchangeAT&T Inc.4.000%Global Not

45、es due June 1,2049T 49ANew York Stock ExchangeAT&T Inc.4.250%Global Notes due March 1,2050T 50New York Stock ExchangeAT&T Inc.3.750%Global Notes due September 1,2050T50ANew York Stock ExchangeAT&T Inc.5.350%Global Notes due November 1,2066TBBNew York Stock ExchangeAT&T Inc.5.625%Global Notes due Aug

46、ust 1,2067TBCNew York Stock ExchangeSecurities registered pursuant to Section 12(g)of the Act:None.Indicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pur

47、suant to Section 13 or Section 15(d)of the Act.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of theSecurities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was requiredto fi

48、le such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to besubmitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the pre

49、ceding 12 months(or for suchshorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,asmaller reporting company,or an emerging growth company.See definition of“

50、large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large Accelerated FilerAccelerated FilerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if

51、the registrant has elected not to use the extended transition periodfor complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the ExchangeAct.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessm

52、ent of theeffectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check

53、mark whether the financial statements ofthe registrant included in the filing reflect the correction of an error to previously issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation

54、received by any of the registrants executive officers during the relevant recovery period pursuant to240.10D-1(b).Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No Based on the closing price of$15.95 per share on June 30,2023,the ag

55、gregate market value of our voting and non-votingcommon stock held by non-affiliates was$114 billion.At February 7,2024,common shares outstanding were 7,152,792,253.DOCUMENTS INCORPORATED BY REFERENCE(1)Portions of AT&T Inc.s Notice of 2024 Annual Meeting and Proxy Statement dated on or about April

56、4,2024 to be filedwithin the period permitted under General Instruction G(3)(Part III).TABLE OF CONTENTSItemPagePART I1.Business11A.Risk Factors71B.Unresolved Staff Comments151C.Cybersecurity152.Properties163.Legal Proceedings164.Mine Safety Disclosures16Information about our Executive Officers17PAR

57、T II5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of EquitySecurities186.Item 6.Reserved197.Managements Discussion and Analysis of Financial Condition and Results of Operations197A.Quantitative and Qualitative Disclosures about Market Risk378.Financial State

58、ments and Supplementary Data439.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure969A.Controls and Procedures969B.Other Information96PART III10.Directors,Executive Officers and Corporate Governance9711.Executive Compensation9712.Security Ownership of Certain Benefi

59、cial Owners and Management and Related Stockholder Matters9813.Certain Relationships and Related Transactions,and Director Independence9914.Principal Accountant Fees and Services99PART IV15.Exhibits and Financial Statement Schedules9916.Form 10-K Summary101PART IITEM 1.BUSINESSGENERALAT&T Inc.(“AT&T

60、,”“we”or the“Company”)is a holding company incorporated under the laws of the State of Delaware in1983 and has its principal executive offices at 208 S.Akard St.,Dallas,Texas,75202(telephone number 210-821-4105).Wemaintain an internet website at .(This website address is for information only and is

61、not intended to be an activelink or to incorporate any website information into this document.)We file electronically with the Securities and ExchangeCommission(SEC)required reports on Form 8-K,Form 10-Q and Form 10-K;proxy materials;registration statements onForms S-3 and S-8,as necessary;and other

62、 forms or reports as required.The SEC maintains a website(www.sec.gov)thatcontains reports,proxy and information statements,and other information regarding issuers that file electronically with theSEC.We make available,free of charge,on our website our annual report on Form 10-K,our quarterly report

63、s on Form 10-Q,current reports on Form 8-K and all amendments to those reports as soon as reasonably practicable after such reports areelectronically filed with,or furnished to,the SEC.We also make available on that website,and in print,if any stockholder orother person so requests,our“Code of Ethic

64、s”applicable to all employees and Directors,our“Corporate GovernanceGuidelines,”and the charters for all committees of our Board of Directors,including Audit,Human Resources and Governanceand Policy committees.Any changes to our Code of Ethics or waiver of our Code of Ethics for senior financial off

65、icers,executive officers or Directors will be posted on that website.A reference to a“Note”refers to the Notes to Consolidated Financial Statements in Item 8.HistoryAT&T,formerly known as SBC Communications Inc.(SBC),was formed as one of several regional holding companies createdto hold AT&T Corp.s(

66、ATTC)local telephone companies.On January 1,1984,we were spun-off from ATTC pursuant to ananti-trust consent decree,becoming an independent publicly traded telecommunications services provider.Following our formation,we expanded our communications footprint and operations,most significantly:Our subs

67、idiaries merged with incumbent local exchange carriers(ILEC)Pacific Telesis Group in 1997 and AmeritechCorporation in 1999.In 2005,we merged one of our subsidiaries with ATTC,creating one of the worlds leading telecommunicationsproviders.In connection with the merger,we changed the name of our compa

68、ny from“SBC Communications Inc.”to“AT&T Inc.”In 2006,we acquired ILEC BellSouth Corporation(BellSouth),which included BellSouths 40 percent economicinterest in AT&T Mobility LLC(AT&T Mobility),formerly Cingular Wireless LLC,resulting in 100 percentownership of AT&T Mobility.In 2014,we completed the

69、acquisition of wireless provider Leap Wireless International,Inc.In 2015,we acquired wireless properties in Mexico and acquired DIRECTV,a leading provider of digital televisionentertainment services in both the United States(included in our Video business)and Latin America(referred to asVrio).From 2

70、018 through April 2022,we acquired and held various investments in entertainment businesses,namely TimeWarner Inc.,which comprised a substantial portion of our previous WarnerMedia segment.In July 2021,we closed our transaction with TPG Capital(TPG)to form a new company named DIRECTVEntertainment Ho

71、ldings,LLC(DIRECTV).With the close of the transaction(DIRECTV Transaction),we separatedour Video business,comprised of our U.S.video operations,and began accounting for our investment in DIRECTVunder the equity method.In April 2022,we completed the separation of our WarnerMedia business in a Reverse

72、 Morris Trust transaction(WarnerMedia/Discovery Transaction).Upon its separation and distribution,the WarnerMedia business met thecriteria for discontinued operations,as did other dispositions that were part of a single plan,including Vrio,Xandr andPlaydemic Ltd.(Playdemic).These businesses are refl

73、ected in our historical financial statements as discontinuedoperations,including for periods prior to the consummation of the WarnerMedia separation.AT&T Inc.Dollars in millions except per share amounts1GeneralWe are a leading provider of telecommunications and technology services globally.The servi

74、ces and products that we offervary by market and utilize various technology platforms in a range of geographies.Our reportable segments are organized asfollows:The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S.and businesses glob

75、ally.Our business strategies reflect integrated product offerings that cut across product lines and utilizeshared assets.This segment contains the following business units:Mobility provides nationwide wireless service and equipment.Business Wireline provides advanced ethernet-based fiber services,IP

76、 Voice and managed professional services,as wellas traditional voice and data services and related equipment to business customers.Consumer Wireline provides broadband services,including fiber connections that provide multi-gig services to residentialcustomers in select locations and our fixed wirel

77、ess access product that provides home internet services delivered over our5G 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 support costs,including a

78、dministrative support costs borne by AT&T where business units do not influence decisionmaking,divested businesses and results from business no longer integral to our operations are reported as Corporate and Other,which reconciles our segment results to consolidated operating income and income befor

79、e income taxes.Areas of FocusWe are a leader in providing connectivity services through our market focus areas of 5G and fiber.Fiber underpins theconnectivity we deliver,both wired and wireless.Building on that fiber foundation is our solid spectrum portfolio,strengthenedthrough Federal Communicatio

80、ns Commission(FCC)auction acquisitions and 5G deployment.We believe our fixed wirelineand mobile approach will differentiate our services and provide us with additional convergence growth opportunities in thefuture as bandwidth demands continue to grow.We will continue to demonstrate our commitment

81、to ensure managementattention is sharply focused on growth areas and operational efficiencies.Our integrated telecommunications network utilizes different technological platforms to provide instant connectivity at thehigher speeds made possible by our fiber network expansion and wireless network enh

82、ancements.Streaming,augmentedreality,“smart”technologies and user generated content are expected to continue to drive greater demand for broadband andcapitalize on our fiber and 5G deployments.During 2024,we plan to continue to develop and provide high-value,integratedmobile and broadband solutions.

83、In December 2023,we announced plans to collaborate with Ericsson to lead the U.S.in commercial scale open radio accessnetwork(Open RAN)deployment to build a more robust ecosystem of network infrastructure providers and suppliers,fosteringlower network costs,improved operational efficiencies and allo

84、wing for continued investment in our fast-growing broadbandnetwork.We plan for about 70%of our wireless network traffic to flow across open-capable platforms by late 2026,and tohave fully-integrated Open RAN sites operating starting in 2024.Beginning in 2025,we expect to scale this Open RANenvironme

85、nt throughout our wireless network in coordination with multiple suppliers.We believe the move to an open,agile,programmable wireless network positions us to quickly capitalize on the next generationof wireless technology and spectrum when it becomes available.These innovative technologies are expec

86、ted to enable lower-power,sustainable networks with higher performance to deliver enhanced user experiences.Wireless Service We continue to experience rapid growth in data usage as consumers are demanding seamless access acrosstheir wireless and wired devices,and businesses and municipalities are co

87、nnecting more and more equipment and facilities tothe internet.The deployment of 5G,which allows for faster connectivity,lower latency and greater bandwidth,requiresmodifications of existing cell sites to add equipment supporting new frequencies,like the C-Band and the 3.45 GHz band.Theincreased spe

88、eds and network operating efficiency expected with 5G technology should enable massive deployment of devicesconnected to the internet as well as faster delivery of data services.As the wireless industry has matured,with nearly fullpenetration of smartphones in the U.S.population,future wireless grow

89、th will depend on our ability to offer innovativeservices,plans and devices that bundle product offerings and take advantage of our 5G wireless network.To support higher mobile data usage,our priority is to best utilize a wireless network that has sufficient spectrum and capacityto support these inn

90、ovations on as broad a geographic basis as possible.We expect to continue to invest significant capital inexpanding our network capacity,as well as obtaining additional spectrum that meets our long-term needs.We participate inFCC spectrum auctions and have been redeploying spectrum previously used f

91、or more basic services to support more advancedmobile internet services.AT&T Inc.Dollars in millions except per share amounts2In North America,our network covers over 438 million people with 4G LTE and over 302 million with 5G technology.In theUnited States,our network covers all major metropolitan

92、areas and more than 334 million people with our LTE technology andmore than 302 million people with our 5G technology.Broadband Technology In 2020,we identified fiber as a core priority for our business and enhanced our focus to expand ourfiber footprint and grow customers.At December 31,2023,we had

93、 more than 8.3 million fiber consumer wireline broadbandcustomers,adding 1.1 million during the year.The expansion builds on our recent investments to convert to a software-basednetwork,managing the migration of wireline customers to services using our fiber infrastructure to provide broadbandtechno

94、logy.Software-based technologies align with our global leadership in software defined network(SDN)and networkfunction virtualization(NFV).This network approach delivers a demonstrable cost advantage in the deployment of next-generation technology over the traditional,hardware-intensive network appro

95、ach.Our virtualized network supports next-generation applications like 5G and broadband-based services quickly and efficiently.BUSINESS OPERATIONSOPERATING SEGMENTSOur segments are strategic business units that offer different products and services over various technology platforms and/or indifferen

96、t geographies that are managed accordingly.We have two reportable segments:Communications and Latin America.Additional information about our segments,including financial information,is included under the heading“Segment Results”in Item 7.and in Note 4 of Item 8.COMMUNICATIONSOur Communications segme

97、nt provides wireless and wireline telecom and broadband services to consumers located in the U.S.and businesses globally.Our Communications services and products are marketed under the AT&T,AT&T Business,Cricket,AT&T PREPAIDSMand AT&T Fiber brand names.The Communications segment provided approximate

98、ly 97%of 2023segment operating revenues and accounted for all of our 2023 total segment income.This segment contains the Mobility,Business Wireline and Consumer Wireline business units.Mobility Our Mobility business unit provides nationwide wireless services to consumers and wholesale and resale wir

99、elesssubscribers located in the United States by utilizing our network to provide voice and data services,including high-speedinternet over wireless devices.We classify our subscribers as either postpaid,prepaid,connected device or reseller.As ofDecember 31,2023,we served 242 million Mobility subscr

100、ibers,including 87 million postpaid(71 million phone),19 millionprepaid,7 million reseller and 128 million connected devices.Our Mobility business unit revenue includes the followingcategories:service and equipment.ServicesWe offer a comprehensive range of high-quality nationwide wireless voice and

101、data communications services in a variety ofpricing plans to meet the communications needs of targeted customer categories.Through FirstNetservices,we also provide anationwide wireless broadband network dedicated to public safety.Consumers continue to require increasing availability of data-centric

102、services and a network to connect and control thosedevices.An increasing number of our subscribers are using more advanced devices,including embedded computing systemsand/or software,commonly called the Internet of Things(IoT).We offer unlimited plans that include features allowing for thesharing of

103、 voice,text and data across multiple devices,which attracts subscribers from other providers and helps minimizesubscriber churn.Customers in our“connected device”category(e.g.,users of monitoring devices and automobile systems)generally purchase those devices from third-party suppliers that buy data

104、 access supported by our network.We continue toupgrade our network and coordinate with equipment manufacturers and application developers to further capitalize on thecontinued growing demand for wireless data services.We also offer nationwide wireless voice and data communications to certain custome

105、rs who prefer to pay in advance.Theseservices are offered under the Cricket and AT&T PREPAID brands and are typically monthly prepaid services.EquipmentWe sell a wide variety of handsets,wireless data cards and wireless computing devices manufactured by various suppliers foruse with our voice and da

106、ta services.We also sell accessories,such as carrying cases/protective covers and wireless chargers.We sell through our own company-owned stores,agents and third-party retail stores.We provide our customers the ability topurchase handsets on an installment basis and the opportunity to bring their ow

107、n device.Subscribers that bring their owndevices or retain handsets for longer periods impact upgrade activity.Like other wireless service providers,we also providepostpaid contract subscribers promotional equipment offers to initiate,renew or upgrade service.AT&T Inc.Dollars in millions except per

108、share amounts3Business Wireline Our Business Wireline business unit provides services to business customers,including multinationalcorporations,small and mid-sized businesses,governmental and wholesale customers.Our Business Wireline business unitrevenue includes the following categories:service and

109、 equipment.ServicesWe offer advanced IP-based services,such as Virtual Private Networks(VPN),AT&T Dedicated Internet,and Ethernet as wellas traditional data services,cloud solutions,outsourcing and managed professional services.We provide collaboration servicesthat utilize our IP infrastructure and

110、allow our customers to utilize the most advanced technology to improve their productivity.We continue to reconfigure our wireline network to take advantage of the latest technologies and services,and rely on our SDNand NFV to enhance business customers digital agility in a rapidly evolving environme

111、nt.Some of the services we haveoffered historically are in secular decline and,going forward,we will focus on our owned and operated connectivity servicespowered by 5G and fiber.EquipmentEquipment revenues include customer premises equipment.Consumer Wireline Our Consumer Wireline business unit prov

112、ides broadband services,including fiber connections,andlegacy telephony voice communication services to customers in the United States by utilizing our IP-based and copper wirednetwork.Additionally,this business unit offers AT&T Internet Air,which is a fixed wireless access product that provides hom

113、einternet services delivered over our 5G wireless network where available.Our Consumer Wireline business unit revenueincludes the following categories:broadband,legacy voice and data services and other service and equipment.Broadband ServicesWe provide broadband and internet services to approximatel

114、y 15 million customer locations,with 8 million fiber broadbandconnections at December 31,2023.With changes in video viewing preferences and the impacts of remote work and learningtrends,we are experiencing increasing demand for high-speed broadband services.We believe our investment in expanding our

115、industry-leading fiber network positions us to be a leader in wired connectivity.With our focus on fiber that brings efficienciesand owner economics,we continue to evaluate opportunities where we can turn down existing copper infrastructure.We believe that our flexible platform with a broadband and

116、wireless connection is the most efficient way to transport direct-to-consumer video and data experiences both at home and on mobile devices.Through this integrated approach,we can optimizethe use of storage in the home as well as in the cloud,while also providing a seamless service for consumers acr

117、oss screens andlocations.Legacy Voice and Data ServicesRevenues from our traditional voice services continue to decline as customers switch to wireless or VoIP services provided byus,cable companies or other internet-based providers.Other Services and EquipmentOther service revenues include VoIP ser

118、vices,customer fees and equipment.Additional information on our Communications segment is contained in the“Overview”section of Item 7.LATIN AMERICAOur Latin America segment provides wireless services in Mexico.We utilize our regional and national wireless networks inMexico to provide consumer and bu

119、siness customers with wireless data and voice communication services.We divide ourrevenue into the following categories:service and equipment.ServicesWe provide postpaid and prepaid wireless services in Mexico to approximately 22 million subscribers under the AT&T andUnefon brands.Postpaid services

120、allow for(1)no annual service contract for subscribers who bring their own device orpurchase a device on installment and(2)service contracts for periods up to 36 months for subscribers who purchase theirequipment under the traditional device subsidy model.We also offer prepaid services to customers

121、who prefer to pay inadvance.EquipmentWe sell a wide variety of handsets,including smartphones manufactured by various suppliers for use with our voice and dataservices.We sell through our own company-owned stores,agents and third-party retail stores.Additional information on our Latin America segmen

122、t is contained in the“Overview”section of Item 7.AT&T Inc.Dollars in millions except per share amounts4MAJOR CLASSES OF SERVICEThe following table sets forth the percentage of total consolidated reported operating revenues by any class of service thataccounted for 10%or more of our consolidated tota

123、l operating revenues in any of the last three fiscal years:Percentage of TotalConsolidated Operating Revenues202320222021Communications SegmentWireless service52%50%43%Business service171817Equipment171816Latin America SegmentWireless service221Equipment111Corporate and OtherVideo services1121U.S.vi

124、deo operations were separated in July 2021.(See Note 6)Additional information on our geographical distribution of revenues is contained in Note 4 of Item 8.GOVERNMENT REGULATIONFacilities-based wireless communications providers in the United States,like AT&T,must be licensed by the FCC to providecom

125、munications services at specified spectrum frequencies within defined geographic areas and must comply with FCC rulesand policies governing the use of the spectrum.The FCCs rules have a direct impact on whether the wireless industry hassufficient spectrum available to support the high-quality,innova

126、tive services our customers demand.Wireless licenses areissued for a fixed time period,typically 10 to 15 years,and we must seek renewal of these licenses.While the FCC hasgenerally renewed licenses,the FCC has authority to both revoke a license for cause and to deny a license renewal if a renewalis

127、 not in the public interest.Additionally,while wireless communications providers prices and service offerings are generallynot subject to regulation,the federal government and various states periodically consider new regulations and legislationrelating to various aspects of wireless services.The Com

128、munications Act of 1934 and other related laws give the FCC broad authority to regulate the U.S.operations of ourinterstate telecommunications services.In addition,our ILEC subsidiaries are subject to regulation by state governments,whichhave the power to regulate intrastate rates and services,inclu

129、ding local,long-distance and network access services,providedsuch state regulation is consistent with federal law.Some states have eliminated or reduced regulations on our retail offerings.These subsidiaries are also subject to the jurisdiction of the FCC with respect to intercarrier compensation,in

130、terconnection,andinterstate and international rates and services,including interstate access charges.Access charges are a form of intercarriercompensation designed to reimburse our wireline subsidiaries for the use of their networks by other carriers.We continue to support regulatory and legislative

131、 measures and efforts at both the federal and state levels to minimize and/ormoderate regulatory burdens that are no longer appropriate in a competitive communications market and that inhibit our abilityto compete more effectively and offer services wanted and needed by our customers,including initi

132、atives to transition servicesfrom traditional networks to all IP-based networks.At the same time,we also seek to ensure that legacy regulations are notfurther extended to broadband or wireless services,which are subject to vigorous competition.Our subsidiaries operating outside the United States are

133、 subject to the jurisdiction of national and supranational regulatoryauthorities in the market where service is provided.For a discussion of significant regulatory issues directly affecting our operations,please see the information contained under theheadings“Operating Environment Overview”and“Regul

134、atory Landscape”of Item 7,which information is incorporated hereinby reference.IMPORTANCE,DURATION AND EFFECT OF LICENSESCertain of our subsidiaries own or have licenses to various patents,copyrights,trademarks and other intellectual propertynecessary to conduct business.Many of our subsidiaries als

135、o hold government-issued licenses or franchises to provide wirelineor wireless services.Additional information relating to regulations affecting those rights is contained under the headingAT&T Inc.Dollars in millions except per share amounts5“Operating Environment Overview,”of Item 7.We actively pur

136、sue patents,trademarks,and service marks to protect ourintellectual property within the United States and abroad.We maintain a significant global portfolio of patents,trademarks,andservice mark registrations.We have also entered into licenses that permit other companies to utilize certain of our pat

137、ents,trademarks,service marks,and technologies,in exchange for payments and subject to appropriate safeguards and restrictions.As we transition our network from a switch-based network to an IP,software-based network,we have increasingly entered intolicensing agreements with software developers.We pe

138、riodically license third-party patents and other intellectual rights in exchange for payments.We also receive claims fromthird parties asserting that our products,services,or technologies infringe on their patents or other intellectual property rights.These claims could require us to pay damages or

139、acquire license rights,stop offering the relevant products or services,and/orcease network functions or other activities.While the outcome of any litigation is uncertain,we do not believe that theresolution of any of these infringement claims or the expiration or non-renewal of any of our intellectu

140、al property rights wouldhave a material adverse effect on our results of operations.MAJOR CUSTOMERSNo customer accounted for 10%or more of our consolidated revenues in 2023,2022 or 2021.COMPETITIONCompetition continues to increase for communications and digital services from traditional and nontradi

141、tional competitors.Technological advances have expanded the types and uses of services and products available.In addition,lack of or a reducedlevel of regulation of comparable legacy services has lowered costs for alternative communications service providers.As aresult,we face continuing competition

142、 as well as some new opportunities in significant portions of our business.Wireless We face substantial competition in our wireless businesses.Under current FCC rules,multiple licensees,who providewireless services on the cellular,PCS,Advanced Wireless Services,700 MHz and other spectrum bands,may o

143、perate in eachof our U.S.service areas.Our competitors include two national wireless providers;a larger number of regional providers andresellers of each of those providers services;and certain cable companies.In addition,we face competition from providers whooffer voice,text messaging and other ser

144、vices as applications on data networks.We are one of three facilities-based providers inMexico(retail and wholesale),with the most significant market share controlled by Amrica Mvil.We may experiencesignificant competition from companies that provide similar services using other communications techn

145、ologies and services.While some of these technologies and services are now operational,others are being developed or may be developed.Wecompete for customers based principally on service/device offerings,price,network quality,coverage area and customerservice.Broadband The desire for high-speed data

146、 on demand,including video,is continuing to lead customers to terminate theirtraditional wired or linear services and use our fiber services or competitors wireless,satellite and internet-based services.Inmost U.S.markets,we compete for customers with large cable companies and wireless broadband pro

147、viders for high-speedinternet and voice services.Legacy Voice and Data We continue to lose legacy voice and data subscribers due to competitors(e.g.,wireless,cable andVoIP providers)who can provide comparable services at lower prices because they are not subject to traditional telephoneindustry regu

148、lation(or the extent of regulation they are subject to is in dispute),utilize different technologies or promote adifferent business model(such as advertising-based).In most U.S.markets,we compete for customers with large cablecompanies and other smaller telecommunications companies for both long-dis

149、tance and local services.Additionally,we provide local and interstate telephone and switched services to other service providers,primarily large internetservice providers using the largest class of nationwide internet networks(internet backbone),wireless carriers,other telephonecompanies,cable compa

150、nies and systems integrators.These services are subject to additional competitive pressures from thedevelopment of new technologies,the introduction of innovative offerings and increasing satellite,wireless,fiber-optic andcable transmission capacity for services.RESEARCH AND DEVELOPMENTAT&T scientis

151、ts and engineers conduct research in a variety of areas,including IP networking,advanced network design andarchitecture,network and cybersecurity,network operations support systems and data analytics.The majority of thedevelopment activities are performed to create new services and to invent tools a

152、nd systems to manage secure and reliablenetworks for us and our customers.Research and development expenses were$954 in 2023,$1,236 in 2022,and$1,325 in2021.HUMAN CAPITALNumber of Employees As of January 31,2024,we employed approximately 149,900 persons.AT&T Inc.Dollars in millions except per share

153、amounts6Employee Development We believe our success depends on our employees success and that all employees must have theskills they need to thrive.We offer training and elective courses that give employees the opportunity to enhance their skills.Wealso intend to help cultivate the next generation o

154、f talent that will lead our company into the future by providing employeeswith educational opportunities through our internal training organization.Labor Contracts Approximately 42%of our employees are represented by the Communications Workers of America(CWA),the International Brotherhood of Electri

155、cal Workers(IBEW)or other unions.After expiration of the collective bargainingagreements,work stoppages or labor disruptions may occur in the absence of new contracts or other agreements being reached.The main contracts set to expire in 2024 include the following:a contract covering approximately 5,

156、000 Mobility employees inArkansas,Kansas,Missouri,Oklahoma and Texas is set to expire in February;a wireline contract covering approximately8,500 employees in California and Nevada is set to expire in April;and three wireline contracts covering approximately 15,000employees in the southeastern Unite

157、d States are set to expire in August.Compensation and Benefits In addition to salaries,we provide a variety of benefit programs to help meet the needs of ouremployees.These programs cover active and former employees and may vary by subsidiary and region.These programsinclude 401(k)plans,pension bene

158、fits,and health and welfare benefits,among many others.In addition to our active employeebase,at December 31,2023,we had approximately 505,000 retirees and dependents who were eligible to receive retireebenefits.We review our benefit plans to maintain competitive packages that reflect the needs of o

159、ur workforce.We also adapt ourcompensation model to provide fair and inclusive pay practices across our business.We are committed to pay equity foremployees who hold the same jobs,work in the same geographic area,and have the same levels of experience and performance.Employee Wellness We provide our

160、 employees access to flexible and convenient health and welfare programs and workplaceaccommodations.We have prioritized self-care and emphasized a focus on wellness,providing flexible scheduling or time-offoptions and implementing technologies to enhance the remote work environment.Diversity,Equity

161、 and Inclusion We believe that championing diversity and fostering inclusion does more than just make us abetter company,it contributes to a world where people are empowered to be their very best.That is why we are committed toequality and one of the reasons why our company purpose is to connect peo

162、ple to greater possibilities.This focus on diversityemanates from our diverse and inclusive workforce,which is a product of our unwavering commitment to ensure thatemployees from any and every segment of society are treated with fairness and provided equal opportunities to advance in thecompany.To h

163、ave a diverse and inclusive workforce,we have put an emphasis on attracting and hiring talented people who represent amix of backgrounds,identities and experiences.Across the AT&T family of companies,we have employee groups that reflectour diverse workforce.These groups are not only organized around

164、 women,people of color,faith,LGBTQ+individuals,peoplewith disabilities and veterans,but also around professionals who are experienced or interested in cybersecurity,engineering,innovation and project management.We believe that when everyones unique story is celebrated,we are able to connect,createan

165、d innovate in real and meaningful ways.It is important that our employees feel valued,have a sense of belonging and arefully engaged in our success.ITEM 1A.RISK FACTORSIn addition to the other information set forth in this document,including the matters contained under the caption“CautionaryLanguage

166、 Concerning Forward-Looking Statements,”you should carefully read the matters described below.We believe thateach of these matters could materially affect our business.Most,if not all,of these factors are beyond our ability to control.Macro-Economic Factors:Adverse changes in the U.S.securities mark

167、ets,increasing interest rates,rising inflation and medical costs couldmaterially increase our benefit plan costs and future funding requirements.Our costs to provide current benefits and funding for future benefits are subject to increases,primarily due to continuingincreases in medical and prescrip

168、tion drug costs,in part due to inflation,and can be affected by lower returns on assets held byour pension and other benefit plans,which are reflected in our financial statements for that year.In calculating the recognizedbenefit costs,we have made certain assumptions regarding future investment ret

169、urns,interest rates and medical costs.Theseassumptions could change significantly over time and could be materially different than originally projected.Lower thanassumed investment returns,an increase in our benefit obligations,and higher than assumed medical and prescription drug costswill increase

170、 expenses.AT&T Inc.Dollars in millions except per share amounts7The Financial Accounting Standards Board(FASB)requires companies to recognize the funded status of defined benefitpension and postretirement plans as an asset or liability in their statement of financial position and to recognize change

171、s in thatfunded status in the year in which the changes occur.We have elected to reflect the annual adjustments to the funded status inour consolidated statement of income.Therefore,an increase in our costs or adverse market conditions will have a negativeeffect on our operating results.Significant

172、adverse changes in capital markets could result in the deterioration of our defined benefit plans funded status.Inflationary pressures on costs,such as inputs for devices we sell and network components,labor and distribution costsmay impact our network construction,our financial condition or results

173、 of operations.As a provider of telecommunications and technology services,we sell handsets,wireless data cards,wireless computing devicesand customer premises equipment manufactured by various suppliers for use with our voice and data services and depend onsuppliers to provide us,directly or throug

174、h other suppliers,with items such as network equipment,customer premisesequipment,and wireless-related equipment such as mobile hotspots,handsets,wirelessly enabled computers,wireless data cardsand other connected devices for our customers.Beginning in 2021 and continuing through the early part of 2

175、024,the costs ofthese inputs and the costs of labor necessary to develop,deploy and maintain our networks and our products and servicesincreased.In addition,many of these inputs are subject to price fluctuations from a number of factors,including,but not limitedto,market conditions,demand for raw ma

176、terials used in the production of these devices and network components,weather,climate change,energy costs,currency fluctuations,supplier capacities,governmental actions,import and export requirements(including tariffs),and other factors beyond our control.Inflationary and supply pressures may conti

177、nue into the future andcould have an adverse impact on our ability to source materials.Our attempts to offset these cost pressures,such as through increases in the selling prices of some of our products and services,may not be successful.Higher product prices may result in reductions in sales volume

178、.Consumers may be less willing to pay aprice differential for our products and may increasingly purchase lower-priced offerings,or may forego some purchasesaltogether,during a period of inflationary pressure or an economic downturn.To the extent that price increases are notsufficient to offset these

179、 increased costs adequately or in a timely manner,and/or if they result in significant decreases in salesvolume,our business,financial condition or operating results may be adversely affected.Furthermore,we may not be able tooffset any cost increases through productivity and cost-saving initiatives.

180、Adverse changes in global financial markets could limit our ability and our larger customers and suppliers ability toaccess capital or increase the cost of capital needed to fund business operations.During 2023,uncertainty surrounding global growth rates,inflation,and an increasing interest rate env

181、ironment continued toproduce volatility in the credit,currency and equity markets.Volatility may affect companies access to the credit markets,leading to higher borrowing costs,or,in some cases,the inability to fund ongoing operations.In addition,we contract withlarge financial institutions to suppo

182、rt our own treasury operations,including contracts to hedge our exposure to interest ratesand foreign exchange and the funding of credit lines and other short-term debt obligations,including commercial paper.Thesefinancial institutions face stricter capital-related and other regulations in the Unite

183、d States and Europe,as well as ongoing legaland financial issues concerning their loan portfolios,which may hamper their ability to provide credit or raise the cost ofproviding such credit.A companys cost of borrowing is affected by evaluations given by various credit rating agencies and these agenc

184、ies have beenapplying tighter credit standards when evaluating debt levels and future growth prospects.While we have been successful incontinuing to access the credit and fixed income markets when needed,adverse changes in the financial markets could render useither unable to access these markets or

185、 able to access these markets only at higher interest costs and with restrictive financial orother conditions,severely affecting our business operations.Additionally,downgrades of our credit rating by the major creditrating agencies could increase our cost of borrowing and also impact the collateral

186、 we would be required to post under certainagreements we have entered into with our derivative counterparties,which could negatively impact our liquidity.Further,valuation changes in our derivative portfolio due to interest rates and foreign exchange rates could require us to post collateraland thus

187、 may negatively impact our liquidity.Our international operations increase our exposure to political instability,to changes in the international economy andto regulation on our business and these risks could offset our expected growth opportunities.We have international operations,particularly in Me

188、xico,and other countries worldwide where we need to comply with a widevariety of complex local laws,regulations and treaties.In addition,we are exposed to,among other factors,fluctuations incurrency values,changes in relationships between U.S.and foreign governments,war or other hostilities,and othe

189、r regulationsthat may materially affect our earnings.Involvement with foreign firms also exposes us to the risk of being unable to control theAT&T Inc.Dollars in millions except per share amounts8actions of those firms and therefore exposes us to risks associated with our obligation to comply with t

190、he Foreign CorruptPractices Act(FCPA).Violations of the FCPA could have a material adverse effect on our operating results.Industry-Wide Factors:Changes to federal,state and foreign government regulations and decisions in regulatory proceedings,as well as privatelitigation,could further increase our

191、 operating costs and/or alter customer perceptions of our operations,which couldmaterially adversely affect us.Our subsidiaries providing wired services are subject to significant federal and state regulation while many of our competitorsare not.In addition,our subsidiaries and affiliates operating

192、outside the United States are also subject to the jurisdiction ofnational and supranational regulatory authorities in the market where service is provided.Our wireless subsidiaries areregulated to varying degrees by the FCC and in some instances,by state and local agencies.Adverse regulations and ru

193、lings bythe FCC relating to broadband and wireless deployment,including the proposed rules regarding net neutrality,could impedeour ability to manage our networks and recover costs and lessen incentives to invest in our networks.The continuing growth ofIP-based services,especially when accessed by w

194、ireless devices,has created or potentially could create conflicting regulationbetween the FCC and various state and local authorities,which may involve lengthy litigation to resolve and may result inoutcomes unfavorable to us.In addition,in response to the Federal Aviation Administration(FAA)questio

195、ning whether cellsites transmitting C-band spectrum could impact radio altimeter equipment on airplanes,we voluntarily committed totemporary,precautionary measures near certain airports through January 1,2028,which may have limited impacts todeployments and services.In addition,increased public focu

196、s on a variety of issues related to our operations,such as privacyissues,government requests or orders for customer data,and concerns about global climate changes,have led to proposals ornew legislation at state,federal and foreign government levels to change or increase regulation on our operations

197、.Enactment ofnew privacy laws and regulations could,among other things,adversely affect our ability to collect data and offer targetedadvertisements or result in additional costs of compliance or litigation.Should customers decide that our competitors offer amore customer-friendly environment,our co

198、mpetitive position,results of operations or financial condition could be materiallyadversely affected.Effects of climate change may impose risk of damage to our infrastructure,our ability to provide services,and maycause changes in federal,state and foreign government regulation,all of which may res

199、ult in potential adverse impact toour financial results.Extreme weather events precipitated by long-term climate change have the potential to directly damage network facilities ordisrupt our ability to build and maintain portions of our network and could potentially disrupt suppliers ability to prov

200、ideproducts and services required to provide reliable network coverage.Any such disruption could delay network deploymentplans,interrupt service for our customers,increase our costs and have a negative effect on our operating results.The potentialphysical effects of climate change,such as increased

201、frequency and severity of storms,floods,fires,freezing conditions,sea-level rise and other climate-related events,could adversely affect our operations,infrastructure and financial results.Operational impacts resulting from the potential physical effects of climate change,such as damage to our netwo

202、rkinfrastructure,could result in increased costs and loss of revenue.We could incur significant costs to improve the climateresiliency of our infrastructure and otherwise prepare for,respond to,and mitigate such physical effects of climate change.While we currently do not believe the potential losse

203、s or costs associated with the physical effects of climate change will bematerial,it is difficult to accurately and precisely calculate the future impacts of the physical effects of climate change given thedynamic nature of climate changes impacts on the environment.Further,customers,consumers,inves

204、tors,governments and other stakeholders are increasingly focusing on environmentalissues,including climate change,water use,deforestation,plastic waste and other sustainability concerns.Concern over climatechange or other environmental,social and governance(ESG)matters may result in new or increased

205、 legal and regulatoryrequirements to reduce or mitigate impacts to the environment and reduce the impact of our business on climate change.Further,climate change regulations may require us to alter our proposed business plans or increase our operating costs due toincreased regulation or environmenta

206、l considerations,and could adversely affect our business and reputation.Continuing growth in and the converging nature of wireless and broadband services will require us to deploy significantamounts of capital and require ongoing access to spectrum in order to provide attractive services to customer

207、s.Wireless and broadband services are undergoing rapid and significant technological changes and a dramatic increase in usage,including,in particular,the demand for faster and seamless usage of data,including video,across mobile and fixed devices.TheCOVID-19 pandemic accelerated these changes and al

208、so resulted in higher network utilization,as more customers consumebandwidth from changes in work and learn from home trends.We must continually invest in our networks in order to improveour wireless and broadband services to meet this increasing demand and changes in customer expectations while rem

209、ainingcompetitive.Improvements in these services depend on many factors,including continued access to and deployment ofadequate spectrum and the capital needed to expand our wireline network to support transport of these services.In order to stemAT&T Inc.Dollars in millions except per share amounts9

210、broadband subscriber losses to cable competitors in our non-fiber wireline areas,we have been expanding our all-fiber wirelinenetwork.We must maintain and expand our network capacity and coverage for transport of data,including video,and voicebetween cell and fixed landline sites.To this end,we part

211、icipate in spectrum auctions and continue to deploy software and othertechnology advancements in order to efficiently invest in our network.We have spent,and plan to continue spending,significant capital and other resources on the ongoing development anddeployment of our 5G and fiber wireline networ

212、ks.This deployment and other network service enhancements and productlaunches may not occur as scheduled or at the cost expected due to many factors,including unexpected inflation,delays indetermining equipment and wireless handset operating standards,supplier delays,software issues,increases in net

213、work andhandset component costs,regulatory permitting delays for tower sites or enhancements,or labor-related delays.Deployment ofnew technology also may adversely affect the performance of the network for existing services.If we cannot acquire neededspectrum,our 5G and fiber offerings fail to gain

214、acceptance in the marketplace or we otherwise fail to deploy the servicescustomers desire on a timely basis with acceptable quality and at reasonable costs,then our ability to attract and retaincustomers,and,therefore,maintain and improve our operating margins,could be materially adversely affected.

215、Increasing competition for wireless customers could materially adversely affect our operating results.We have multiple wireless competitors in each of our service areas and compete for customers based principally on service/device offerings,price,network quality,coverage area and customer service.In

216、 addition,we are facing growing competitionfrom providers offering services using advanced wireless technologies and IP-based networks.We expect market saturation tocontinue which may cause the wireless industrys customer growth rate to moderate in comparison with historical growth rates,leading to

217、increased competition for customers.Our share of industry sales could be reduced due to aggressive pricing orpromotional strategies pursued by competitors.We also expect that our customers growing demand for high-speed video anddata services will place constraints on our network capacity.These compe

218、tition and capacity constraints will continue to putpressure on pricing and margins as companies compete for potential customers.Additionally,we may not be able to accuratelypredict future consumer demands or the success of new services in markets.Our ability to address these issues will depend,amon

219、g other things,on continued improvement in network quality and customer service and our ability to price our productsand services competitively as well as effective marketing of attractive products and services.These efforts will involvesignificant expenses and require strategic management decisions

220、 on,and timely implementation of,equipment choices,networkdeployment and service offerings.Intellectual property rights may be inadequate to take advantage of business opportunities,which may materiallyadversely affect our operations.We may need to spend significant amounts of money to protect our i

221、ntellectual property rights.Any impairment of ourintellectual property rights,including due to changes in U.S.or foreign intellectual property laws or the absence of effectivelegal protections or enforcement measures,could materially adversely impact our operations.Incidents or public assertions lea

222、ding to damage to our reputation or questions about our business conduct,and anyresulting lawsuits,claims or other legal proceedings,could have a material adverse effect on our business.We believe that our brand image,awareness and reputation strengthen our relationship with consumers and contribute

223、significantly to the success of our business.Our ability to attract and retain employees is highly dependent upon ourcommitment to a diverse and inclusive workplace,ethical business practices and other qualities.Acts of misconduct by anyemployee,and particularly by senior management,could erode trus

224、t and confidence and damage our reputation.Negative publicopinion and increased regulatory scrutiny or litigation could result from actual or alleged conduct by us or those currently orformerly associated with us,and from any number of activities or circumstances,including operations,employment-rela

225、tedoffenses(such as sexual harassment and discrimination),regulatory compliance and actions taken by regulators or others inresponse to such conduct.We currently are,and may in the future be,named as a defendant in lawsuits,claims and other legal proceedings that arise inthe ordinary course of our b

226、usiness based on alleged acts of misconduct by employees.These actions seek,among other things,compensation for alleged personal injury(including claims for loss of life),workers compensation,employmentdiscrimination,sexual harassment,workplace misconduct,wage and hour claims and other employment-re

227、lated damages,compensation for breach of contract,statutory or regulatory claims,negligence or gross negligence,punitive damages,consequential damages,and civil penalties or other losses or injunctive or declaratory relief.The outcome of any allegations,lawsuits,claims or legal proceedings is inhere

228、ntly uncertain and could result in significant costs,damage to our brands orreputation and diversion of managements attention from our business.In 2023,The Wall Street Journal published a series ofarticles alleging that lead-clad telecommunications cables are a public-health hazard or may pose envir

229、onmental risks.We arecurrently subject to litigation and have received inquiries from government authorities as a result of these assertions.We maybe subject to additional litigation,government investigations and potentially new regulation or legislation relating to lead-cladcables.Any damage to our

230、 reputation or payments of significant amounts as a result of any of these issues,even if reserved,could materially and adversely affect our business,ability to serve customers,reputation,financial condition,results ofoperations and cash flows.AT&T Inc.Dollars in millions except per share amounts10O

231、ur business is subject to risks related to public health crises.Public health crises and resulting mitigation measures have in the past,and may in the future,cause a negative effect on ouroperating results.These effects include,but are not limited to,closure of retail stores;impact on our customers

232、ability to payfor our products and services;reduction in international roaming revenue;and reduced staffing levels in call centers and fieldoperations.We also have in the past,and may in the future,incur significantly higher expenses attributable to infrastructureinvestments and increased labor cost

233、s.Company-Specific Financial Factors:Customer adoption of new software-based technologies may require higher quality services from us,and meeting thesedemands could create supply chain issues and could increase capital costs.The communications industry has experienced rapid changes in the past sever

234、al years.An increasing number of our customersare using mobile devices as their primary means of viewing video.In addition,businesses and government bodies are broadlyshifting to wireless-based services for homes and infrastructure to improve services to their respective customers andconstituencies.

235、We have spent,and continue to spend,significant capital to shift our wired network to software-basedtechnology and are expanding 5G wireless technology to address these demands.We are entering into a significant number ofsoftware licensing agreements and working with software developers to provide n

236、etwork functions in lieu of installing switchesor other physical network equipment in order to respond to rapid developments in wireless demand.While software-basedfunctionality can be changed much more quickly than,for example,physical switches,the rapid pace of development meansthat we may increas

237、ingly need to rely on single-source and software solutions that have not previously been deployed inproduction environments.Should this software not function as intended or our license agreements provide inadequate protectionfrom intellectual property infringement claims,we could be forced to either

238、 substitute(if available)or else spend time todevelop alternative technologies at a much higher cost and incur harm to our reputation for reliability,and,as a result,ourability to remain competitive could be materially adversely affected.We depend on various suppliers to provide equipment to operate

239、 our business and satisfy customer demand andinterruption or delay in supply can adversely impact our operating results.We depend on suppliers to provide us,directly or through other suppliers,with items such as network equipment,customerpremises equipment and wireless-related equipment such as mobi

240、le hotspots,handsets,wirelessly enabled computers,wirelessdata cards and other connected devices for our customers.In some instances,we depend on key single-source suppliers toprovide important inputs where there are few alternative suppliers available.These suppliers could fail to provide equipment

241、 ona timely or cost effective basis,or fail to meet our performance expectations,for a number of reasons,including difficulties inobtaining export licenses for certain technologies,inflationary pressures,inability to secure component parts,general businessdisruption,natural disasters,safety issues,e

242、conomic and political instability,including the outbreak of war and other hostilities,and public health emergencies.These factors have caused,and may again cause,delays in the development,manufacturing(including the sourcing of key components)and shipment of products to the extent that we or our sup

243、pliers are impacted.Incertain limited circumstances,suppliers have been unable to supply products in a timely fashion,affecting our ability to provideproducts and services precisely as and when requested by our customers.It is possible that,in some circumstances,we could beforced to switch to a diff

244、erent key supplier or be unable to meet customer demand for certain products or services.Because ofthe cost and time lag that can be associated with transitioning from one supplier to another,our business could be substantiallydisrupted if we were required to,or chose to,replace the products of one

245、or more key suppliers with products from anothersource,especially if the replacement became necessary on short notice.Any such disruption could increase our costs,decreaseour operating efficiencies and have a negative effect on our operating results.Increasing costs to provide services and failure t

246、o renew agreements on favorable terms,or at all,could adversely affectoperating margins.Our operating costs,including customer acquisition and retention costs,could continue to put pressure on margins and customerretention levels.A number of our competitors offering comparable legacy services that r

247、ely on alternative technologies and business models aretypically subject to less regulation,and therefore are able to operate with lower costs.These competitors generally can focus ondiscrete customer segments since they do not have regulatory obligations to provide universal service.Also,these comp

248、etitorshave cost advantages compared to us,due in part to operating on newer,more technically advanced and lower-cost networkswith a nonunionized workforce,lower employee benefits and fewer retirees.We are transitioning services from our copper-based network and seeking regulatory approvals,where ne

249、eded,at both the state and federal levels.If we do not obtainregulatory approvals for our network transition or obtain approvals with onerous conditions,we could experience significantcost and competitive disadvantages.AT&T Inc.Dollars in millions except per share amounts11We may not realize or sust

250、ain the expected benefits from our business transformation initiatives and these efforts couldhave a materially adverse effect on our business,operations,financial condition,results of operations and competitiveposition.We have been and will be undertaking certain transformation initiatives,includin

251、g the WarnerMedia/Discovery Transaction,which are designed to reduce costs,enable legacy rationalization,streamline and modernize distribution and customer service,remove redundancies and simplify and improve processes and support functions.Our focus is on supporting added customervalue with an impr

252、oved customer experience.We intend for these efficiencies to enable increased investments in our strategicareas of focus,which consist of improving broadband connectivity(for example,fiber and 5G).We also expect these initiativesto drive efficiencies and improved margins.If we do not successfully ma

253、nage and execute these initiatives,or if they areinadequate or ineffective,we may fail to meet our financial goals and achieve anticipated benefits,improvements may bedelayed,not sustained or not realized,and our business,operations and competitive position could be adversely affected.Further,we int

254、end to use artificial intelligence(AI)-driven efficiencies in our network design,software development andcustomer support services.The models used in those products,particularly generative AI models,may produce output or takeaction that is incorrect,release private or confidential information,reflec

255、t biases included in the data on which they are trained,infringe on the intellectual property rights of others,or be otherwise harmful.Any of these risks could expose us to liability oradverse legal or regulatory consequences and harm our reputation and the public perception of our business or the e

256、ffectivenessof our security measures.Unfavorable litigation or governmental investigation results could require us to pay significant amounts or lead toonerous operating procedures.We are subject to a number of lawsuits both in the United States and in foreign countries,including,at any particular t

257、ime,claims relating to antitrust,patent infringement,wage and hour,personal injury,environmental,customer privacy violations,cyberattacks,regulatory proceedings,breach of contract,and selling and collection practices.We also spend substantialresources complying with various government standards,whic

258、h may entail related investigations and litigation.In the wirelessand wireline area,we also face current and potential litigation relating to alleged adverse health effects on customers oremployees who use such technologies including,for example,wireless devices.We may incur significant expenses def

259、endingsuch suits or government charges and may be required to pay amounts or otherwise change our operations in ways that couldmaterially adversely affect our operations or financial results.Cyberattacks impacting our networks or systems may have a material adverse effect on our operations.Cyberatta

260、cks including through the use of malware,computer viruses,distributed denial of services attacks,ransomwareattacks,credential harvesting,social engineering and other means for obtaining unauthorized access to or disrupting theoperation of our networks and systems and those of our suppliers,vendors a

261、nd other service providers could have a materialadverse effect on our operations.Cyberattacks can cause equipment or network failures,loss of information,including sensitivepersonal information of customers or employees or proprietary information,as well as disruptions to our or our customers,suppli

262、ers or vendors operations,which could result in significant expenses,potential investigations and legal liability,a loss ofcurrent or future customers and reputational damage.As our networks evolve,they are becoming increasingly reliant onsoftware to handle growing demands for data consumption.Cyber

263、attacks against companies,including the Company and itssuppliers and vendors,have occurred and will continue to occur and have increased in frequency,scope and potential harm inrecent years.Further,the use of artificial intelligence and machine learning by cybercriminals may increase the frequency a

264、ndseverity of cybersecurity attacks against us or our suppliers,vendors and other service providers.Additionally,as cyberattacksbecome increasingly sophisticated,a post-attack investigation may not be able to ascertain the entire scope of the attacksimpact.Extensive and costly efforts are undertaken

265、 to develop and test systems before deployment and to conduct ongoingmonitoring and updating to prevent and withstand such attacks.While,to date,we have not been subject to cyberattacks that,individually or in the aggregate,have been material to our operations or financial condition,the preventive a

266、ctions we take toreduce the risks associated with cyberattacks may be insufficient to repel or mitigate the effects of a major cyberattack in thefuture.Natural disasters,extreme weather conditions or terrorist or other hostile acts could cause damage to our infrastructureand result in significant di

267、sruptions to our operations.Our business operations could be subject to interruption by equipment failures,power outages,terrorist or other hostile acts,including acts of war,and natural disasters,such as flooding,hurricanes and forest fires,whether caused by discrete severeweather events and/or pre

268、cipitated by long-term climate change.Such events could cause significant damage to theinfrastructure upon which our business operations rely,resulting in degradation or disruption of service to our customers,aswell as significant recovery time and expenditures to resume operations.Our system redund

269、ancy and other measures we take toprotect our infrastructure and operations from the impacts of such events may be ineffective or inadequate to sustain ouroperations through all such events.Any of these occurrences could result in lost revenues from business interruption,damage toour reputation and

270、reduced profits.AT&T Inc.Dollars in millions except per share amounts12Increases in our debt levels to fund spectrum purchases,or other strategic decisions could adversely affect our ability tofinance future debt at attractive rates and reduce our ability to respond to competition and adverse econom

271、ic trends.We have incurred debt to fund significant acquisitions,as well as spectrum purchases needed to compete in our industry.Whilewe believe such decisions were prudent and necessary to take advantage of both growth opportunities and respond to industrydevelopments,we did experience credit-ratin

272、g downgrades from historical levels.Banks and potential purchasers of ourpublicly traded debt may decide that these strategic decisions and similar actions we may take in the future,as well as expectedtrends in the industry,will continue to increase the risk of investing in our debt and may demand a

273、 higher rate of interest,impose restrictive covenants or otherwise limit the amount of potential borrowing.Additionally,our capital allocation plan isfocused on,among other things,managing our debt level going forward.Any failure to successfully execute this plan couldadversely affect our cost of fu

274、nds,liquidity,competitive position and access to capital markets.Our business may be impacted by changes in tax laws and regulations,judicial interpretations of the same oradministrative actions by federal,state,local and foreign taxing authorities.Tax laws are dynamic and subject to change as new l

275、aws are passed and new interpretations of the law are issued or applied.Inmany cases,the application of existing,newly enacted or amended tax laws(such as the U.S.Tax Cuts and Jobs Act of 2017and the Inflation Reduction Act of 2022)may be uncertain and subject to differing interpretations,especially

276、 when evaluatedagainst ever-changing products and services provided by our global telecommunications and technology businesses.In addition,tax legislation has been introduced or is being considered in various jurisdictions that could significantly impact our tax rate,taxliabilities,and carrying valu

277、e of deferred tax assets or deferred tax liabilities.Any of these changes could materially impact ourfinancial performance and our tax provision,net income and cash flows.We are also subject to ongoing examinations by taxing authorities in various jurisdictions.Although we regularly assess thelikeli

278、hood of an adverse outcome resulting from these examinations to determine the adequacy of provisions for taxes,there canbe no assurance as to the outcome of these examinations.In the event that we have not accurately or fully described,disclosedor determined,calculated or remitted amounts that were

279、due to taxing authorities or if the ultimate determination of our taxesowed is for an amount in excess of amounts previously accrued,we could be subject to additional taxes,penalties and interest,which could materially impact our business,financial condition and operating results.If the distribution

280、 of WarnerMedia,together with certain related transactions,were to fail to qualify for non-recognition treatment for U.S.federal income tax purposes under audit,then we could be subject to significant taxliability.In connection with the WarnerMedia/Discovery Transaction,AT&T received a favorable Pri

281、vate Letter Ruling from theInternal Revenue Service(IRS).Nonetheless,the IRS or another applicable tax authority could determine on audit that thedistribution by us of WarnerMedia to our stockholders and certain related transactions should be treated as taxable transactionsif it determines that any

282、of the facts,representations or undertakings made in connection with the request for the ruling wereincorrect or are violated.We may be entitled to indemnification from Warner Bros.Discovery(Warner Bros.)in the case ofcertain breaches of representations or undertakings by Warner Bros.under the tax m

283、atters agreement related to theWarnerMedia/Discovery Transaction.However,we could potentially be required to pay such tax prior to reimbursement fromWarner Bros.,and such indemnification is subject to Warner Bros.credit risk.If the IRS or another tax authority were to soconclude,there could be a mat

284、erial adverse impact on our business,financial condition,results of operations and cash flows.AT&T Inc.Dollars in millions except per share amounts13CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTSInformation set forth in this report contains forward-looking statements that are subject to r

285、isks and uncertainties,and actualresults could differ materially.Many of these factors are discussed in more detail in the“Risk Factors”section.We claim theprotection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.The following fact

286、ors could cause our future results to differ materially from those expressed in the forward-looking statements:Adverse economic and political changes,including inflation and rising interest rates,war or other hostilities,and publichealth emergencies,and our ability to access financial markets at fav

287、orable rates and terms.Increases in our benefit plans costs,including due to worse-than-assumed investment returns and discount rates,mortalityassumptions,medical cost trends,or healthcare laws or regulations.The final outcome of FCC and other federal,state or foreign government agency proceedings(i

288、ncluding judicial review ofsuch proceedings)and legislative and regulatory efforts involving issues important to our business,including,withoutlimitation,pending Notices of Apparent Liability;the transition from legacy technologies to IP-based infrastructure,including the withdrawal of legacy TDM-ba

289、sed services;universal service;broadband deployment;wireless equipmentsiting regulations and,in particular,siting for 5G service;E911 services;rules concerning digital discrimination;competition policy;privacy;net neutrality;copyright protection;availability of new spectrum on fair and balanced term

290、s;and wireless and satellite license awards and renewals,and our response to such legislative and regulatory efforts.Enactment of or changes to state,local,federal and/or foreign tax laws and regulations,and actions by tax agencies andjudicial authorities that reduce our incentive to invest in our n

291、etworks,and the resolution of disputes with any taxingjurisdictions,pertaining to our subsidiaries and foreign investments.U.S.and foreign laws and regulations regarding intellectual property rights protection and privacy,personal data protectionand user consent,which are complex and rapidly evolvin

292、g.Our ability to compete in an increasingly competitive industry and against competitors that can offer product/serviceofferings at lower prices due to lower cost structures and regulatory and legislative actions adverse to us,including non-regulation of comparable alternative technologies and/or go

293、vernment-owned or subsidized networks,and our response tosuch competition and emerging technologies.Disruption in our supply chain for a number of reasons,including,difficulties in obtaining export licenses for certaintechnology,inability to secure component parts,lack of suppliers,general business

294、disruption,workforce shortage,naturaldisasters,safety issues,vendor fraud,economic and political instability,including disruptions in the capital markets,theoutbreak of war or other hostilities,and public health emergencies.The development and delivery of attractive and profitable wireless and broad

295、band offerings and devices,including ourability to match speeds offered by competitors;the impact of regulatory and build-out requirements;and the availability,cost and/or reliability of technologies required to provide such offerings.Our ability to adequately fund additional wireless spectrum and n

296、etwork development,deployment and maintenance;andregulations and conditions relating to spectrum use,licensing,obtaining additional spectrum,technical standards anddeployment and usage,including network management rules.Our ability to manage growth in wireless data services,including network quality

297、 and acquisition of adequate spectrum atreasonable costs and terms.The outcome of pending,threatened or potential litigation and arbitration,including,without limitation,patent and productsafety claims by or against third parties or claims based on alleged misconduct by employees.The impact from maj

298、or equipment or software failures on our networks or cyber incidents;the effect of security breachesrelated to the network or customer information;our inability to obtain handsets,equipment/software or have handsets,equipment/software serviced in a timely and cost-effective manner from suppliers;or

299、severe weather conditions or otherclimate related events including flooding and hurricanes,natural disasters including earthquakes and forest fires,publichealth emergencies,energy shortages,wars or terrorist attacks.The issuance by the FASB or other accounting oversight bodies of new or revised acco

300、unting standards.The uncertainty surrounding further congressional action regarding spending and taxation,which may result in changes ingovernment spending and affect the ability and willingness of businesses and consumers to spend in general.Our ability to realize or sustain the expected benefits o

301、f our business transformation initiatives,which are designed toreduce costs,enable legacy rationalization,streamline distribution,remove redundancies and simplify and improveprocesses and support functions.Our ability to successfully complete divestitures,as well as achieve our expectations regardin

302、g the financial impact of thecompleted and/or pending transactions.Readers are cautioned that other factors discussed in this report,although not enumerated here,also could materially affect ourfuture earnings.AT&T Inc.Dollars in millions except per share amounts14ITEM 1B.UNRESOLVED STAFF COMMENTSNo

303、t applicable.ITEM 1C.CYBERSECURITYGovernanceBoard and Audit Committee OversightOur Board of Directors has delegated to the Audit Committee the oversight responsibility to review and discuss withmanagement the Companys privacy and data security,including cybersecurity,risk exposures,policies and prac

304、tices,and thesteps management has taken to detect,monitor and control such risks and the potential impact of those exposures on ourbusiness,financial results,operations and reputation.The full Board and Audit Committee regularly receives reports andpresentations on privacy and data security,which ad

305、dress relevant cybersecurity issues and risks and span a wide range oftopics.These reports and presentations are provided by officers with responsibility for privacy and data security,who includeour Chief Information Security Officer(CISO),Chief Technology Officer(CTO)and AT&Ts Legal team.In additio

306、n toregular reports to the Audit Committee,we have protocols by which certain security incidents are escalated within the Companyand,where appropriate,reported in a timely manner to the Audit Committee.Chief Security Office/CISOWe maintain a Chief Security Office(CSO),which is charged with managemen

307、t-level responsibility for all aspects of networkand information security within the Company.Led by our CISO and comprised of a large team of highly trained securityprofessionals across multiple countries,the CSO is responsible for:a.establishing the policies,standards and requirements for the secur

308、ity of AT&Ts computing and network environments;b.protecting AT&T-owned and-managed assets and resources against unauthorized access by monitoring potential securitythreats,correlating network events,and overseeing the execution of corrective actions;c.promoting compliance with AT&Ts security polici

309、es and network and information security program in a consistentmanner on network systems and applications;andd.providing security thought leadership in the global security arena.Our CISO plays the key management role in assessing and managing our material risks from cybersecurity threats.The CISOals

310、o works closely with AT&T Legal to oversee compliance with legal,regulatory and contractual security requirements.TheCISO has extensive technical leadership experience and cybersecurity expertise,gained from approximately 20 years ofexperience,including serving as the Chief Information Security Offi

311、cer and Director of the Office of Cybersecurity at a U.S.government agency,in addition to serving as the Chief Information Security Officer of two large public companies.Prior tothat,he served for 20 years in the U.S.military,in various information technology roles of increasing seniority.The securi

312、typrofessionals in the CSO have cybersecurity backgrounds and expertise relevant to their roles,including,in certaincircumstances,relevant industry certifications.Risk Management and StrategyWe maintain a network and information security program that is reasonably designed to protect our information

313、,and that of ourcustomers,from unauthorized risks to their confidentiality,integrity,or availability.Our program encompasses the CSO and itspolicies,platforms,procedures,and processes for assessing,identifying,and managing risks from cybersecurity threats,including third-party risk from vendors and

314、suppliers;and the program is generally designed to identify and respond to securityincidents and threats in a timely manner to minimize the loss or compromise of information assets and to facilitate incidentresolution.We maintain continuous and near-real-time security monitoring of the AT&T network

315、for investigation,action and response tonetwork security events.This security monitoring leverages tools,where available,such as near-real-time data correlation,situational awareness reporting,active incident investigation,case management,trend analysis and predictive security alerting.We assess,ide

316、ntify,and manage risks from cybersecurity threats through various mechanisms,which from time to time mayinclude tabletop exercises to test our preparedness and incident response process,business unit assessments,control gapanalyses,threat modeling,impact analyses,internal audits,external audits,pene

317、tration tests and engaging third parties toconduct analyses of our information security program.We conduct vulnerability testing and assess identified vulnerabilities forseverity,the potential impact to AT&T and our customers,and likelihood of occurrence.We regularly evaluate securitycontrols to mai

318、ntain their functionality in accordance with security policy.We also obtain cybersecurity threat intelligence fromrecognized forums,third parties,and other sources as part of our risk assessment process.In addition,as a critical infrastructureentity,we collaborate with numerous agencies in the U.S.g

319、overnment to help protect U.S.communications networks andcritical infrastructure,which,in turn,informs our cybersecurity threat intelligence.AT&T Inc.Dollars in millions except per share amounts15With respect to incident response,the Company has adopted a Cybersecurity Incident Response Plan,as well

320、 as a Data PrivacyIncident Response Plan that applies if customer information has been compromised(together,the“IRPs”),to provide acommon framework for responding to security incidents.This framework establishes procedures for identifying,validating,categorizing,documenting and responding to securit

321、y events that are identified by or reported to the CSO.The IRPs apply to allAT&T personnel(including contractors and partners)that perform functions or services that require securing AT&Tinformation and computing assets,and to all devices and network services that are owned or managed by the Company

322、.The IRPs set out a coordinated,multi-functional approach for investigating,containing,and mitigating incidents,includingreporting findings to senior management and other key stakeholders and keeping them informed and involved as appropriate.Ingeneral,our incident response process follows the NIST(N

323、ational Institute of Standards and Technology)framework andfocuses on four phases:preparation;detection and analysis;containment,eradication and recovery;and post-incidentremediation.Impact of Cybersecurity RiskIn 2023,we did not identify and were not aware of any cybersecurity breaches that we beli

324、eve have materially affected or arereasonably likely to materially affect our business strategy,results of operations,or financial condition.For a discussion ofcybersecurity risk,please see the information contained under the heading“Cyberattacks impacting our networks or systemsmay have a material

325、adverse effect on our operations”of Item 1A.ITEM 2.PROPERTIESOur properties do not lend themselves to description by character and location of principal units.At December 31,2023,of ourtotal property,plant and equipment,central office equipment represented 29%;outside plant(including cable,wiring an

326、d othernon-central office network equipment)represented 27%;other equipment,comprised principally of wireless network equipmentattached to towers,furniture and office equipment and vehicles and other work equipment,represented 25%;land,building andwireless communications towers represented 12%;and o

327、ther miscellaneous property represented 7%.For our Communications segment,substantially all of the installations of central office equipment are located in buildings andon land we own.Many garages,administrative and business offices,wireless towers,telephone centers and retail stores areleased.Prope

328、rty on which communication towers are located may be either owned or leased.ITEM 3.LEGAL PROCEEDINGSWe are a party to numerous lawsuits,regulatory proceedings and other matters arising in the ordinary course of business.As ofthe date of this report,we do not believe any pending legal proceedings to

329、which we or our subsidiaries are subject are requiredto be disclosed as material legal proceedings pursuant to this item.ITEM 4.MINE SAFETY DISCLOSURESNot applicable.AT&T Inc.Dollars in millions except per share amounts16INFORMATION ABOUT OUR EXECUTIVE OFFICERSAs of February 1,2024NameAgePositionHel

330、d SinceJohn T.Stankey61Chief Executive Officer and President7/2020F.Thaddeus Arroyo60Chief Strategy and Development Officer5/2022Pascal Desroches59Senior Executive Vice President and Chief Financial Officer4/2021Edward W.Gillespie62Senior Executive Vice President-External and Legislative Affairs,AT&

331、T Services,Inc.4/2020Kellyn S.Kenny46Chief Marketing and Growth Officer5/2022Lori M.Lee58Global Marketing Officer and Senior Executive Vice President-Human Resources and International8/2023Jeremy Legg54Chief Technology Officer,AT&T Services,Inc.5/2022David R.McAtee II55Senior Executive Vice Presiden

332、t and General Counsel10/2015Jeffery S.McElfresh53Chief Operating Officer5/2022The above executive officers have held high-level managerial positions with AT&T or its subsidiaries for more than the pastfive years,except for Mr.Desroches,Mr.Gillespie,Ms.Kenny and Mr.Legg.Executive officers are not app

333、ointed to a fixedterm of office.Mr.Desroches was previously Executive Vice President-Finance of AT&T from November 2020 to March 2021,ExecutiveVice President and Chief Financial Officer of WarnerMedia from June 2018 to November 2020,and Executive Vice Presidentand Chief Financial Officer of Turner from January 2015 to June 2018.Mr.Gillespie was previously Managing Director of Sard Verbinnen&Co.fro