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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 31,2025orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF

2、 1934For the transition period from toCommission File Number 001-08610AT&T INC.Incorporated under the laws of the State of DelawareI.R.S.Employer Identification Number 43-1301883208 S.Akard St.,Dallas,Texas 75202Telephone Number:(210)821-4105Securities registered pursuant to Section 12(b)of the Act:

3、Name of each exchangeTitle of each 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 ashare of 5.000%Perpetual Preferred Stock,Series AT PRANew York Stock ExchangeDepositary Shares,each r

4、epresenting a 1/1000th interest in ashare of 4.750%Perpetual Preferred Stock,Series CT PRCNew 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 Stock ExchangeAT&T Inc.3.500%Global Notes due

5、 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 ExchangeAT&T Inc.1.600%Global Notes due M

6、ay 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 ExchangeAT&T Inc.0.800%Global Notes due M

7、arch 4,2030T 30BNew York Stock ExchangeAT&T Inc.3.150%Global Notes due June 1,2030T 30CNew 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 Exchange Name of each exchangeTitle of each classTradi

8、ng Symbol(s)on which registeredAT&T Inc.3.550%Global Notes due December 17,2032T 32New York Stock ExchangeAT&T Inc.3.600%Global Notes due June 1,2033T 33ANew York Stock ExchangeAT&T Inc.5.200%Global Notes due November 18,2033T 33New York Stock ExchangeAT&T Inc.3.375%Global Notes due March 15,2034T 3

9、4New York Stock ExchangeAT&T Inc.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.4.050%Global Notes due June 1,2037T 37BNew

10、York Stock ExchangeAT&T Inc.2.600%Global Notes due May 19,2038T 38CNew York Stock ExchangeAT&T Inc.1.800%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

11、 ExchangeAT&T Inc.4.875%Global Notes due June 1,2044T 44New York Stock ExchangeAT&T Inc.4.000%Global Notes 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 1,2050T 50ANew York Stock ExchangeAT&

12、T Inc.5.350%Global Notes due November 1,2066TBBNew York Stock ExchangeIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 duringthe preceding 12 months(or for such shorter period that the registrant w

13、as required to file such reports),and(2)has been subject to such filing requirements forthe past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T(232.405 of this chapte

14、r)during the preceding 12 months(or for such shorter 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,a smaller reporting company,or anemerging growth company.S

15、ee the definitions of“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 company Emerging growth companyIf an emerging growth company,ind

16、icate by check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12

17、b-2 of the Exchange Act).Yes No At April 24,2025,there were 7,195,602,178 common shares outstanding.PART I-FINANCIAL INFORMATIONItem 1.Financial StatementsAT&T INC.CONSOLIDATED STATEMENTS OF INCOMEDollars in millions except per share amounts(Unaudited)Three months ended March 31,20252024Operating Re

18、venues Service$25,138$24,842 Equipment5,488 5,186 Total operating revenues30,626 30,028 Operating ExpensesCost of revenuesEquipment5,694 5,143 Other cost of revenues(exclusive of depreciation andamortization shown separately below)6,339 6,811 Selling,general and administrative7,145 7,021 Asset impai

19、rments and abandonments and restructuring504 159 Depreciation and amortization5,190 5,047 Total operating expenses24,872 24,181 Operating Income5,754 5,847 Other Income(Expense)Interest expense(1,658)(1,724)Equity in net income of affiliates1,440 295 Other income(expense)net455 451 Total other incom

20、e(expense)237(978)Income Before Income Taxes5,991 4,869 Income tax expense1,299 1,118 Net Income4,692 3,751 Net Income Attributable to Noncontrolling Interest(341)(306)Net Income Attributable to AT&T$4,351$3,445 Preferred Stock Dividends and Redemption Gain44(50)Net Income Attributable to Common Sto

21、ck$4,395$3,395 Basic Earnings Per Share Attributable to Common Stock$0.61$0.47 Diluted Earnings Per Share Attributable to Common Stock$0.61$0.47 Weighted Average Number of Common SharesOutstanding Basic(in millions)7,213 7,192 Weighted Average Number of Common SharesOutstanding with Dilution(in mill

22、ions)7,223 7,193 See Notes to Consolidated Financial Statements.3AT&T INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Dollars in millions (Unaudited)Three months ended March 31,20252024Net income$4,692$3,751 Other comprehensive income(loss),net of tax:Foreign currency:Translation adjustment,net

23、of taxes of$10 and$821 29 Securities:Net unrealized gains(losses),net of taxes of$3 and$(2)10(10)Reclassification adjustment included in net income,net of taxes of$0 and$21 6 Derivative instruments:Net unrealized gains(losses),net of taxes of$(203)and$49(624)211 Reclassification adjustment included

24、in net income,net of taxes of$4 and$311 12 Defined benefit postretirement plans:Amortization of net prior service credit included in net income,net of taxes of$(115)and$(123)(356)(381)Other comprehensive income(loss)(937)(133)Total comprehensive income3,755 3,618 Less:Total comprehensive income attr

25、ibutable to noncontrolling interest(341)(306)Total Comprehensive Income Attributable to AT&T$3,414$3,312 See Notes to Consolidated Financial Statements.4AT&T INC.CONSOLIDATED BALANCE SHEETSDollars in millions except per share amountsMarch 31,December 31,20252024Assets(Unaudited)Current Assets Cash a

26、nd cash equivalents$6,885$3,298 Accounts receivable net of related allowances for credit loss of$357 and$3759,228 9,638 Inventories2,593 2,270 Prepaid and other current assets15,074 15,962 Total current assets33,780 31,168 Property,plant and equipment351,203 350,914 Less:accumulated depreciation and

27、 amortization(222,750)(222,043)Property,Plant and Equipment Net128,453 128,871 Goodwill Net63,432 63,432 Licenses Net127,344 127,035 Other Intangible Assets Net5,255 5,255 Investments in and Advances to Equity Affiliates942 295 Operating Lease Right-Of-Use Assets21,006 20,909 Other Assets17,255 17,8

28、30 Total Assets$397,467$394,795 Liabilities and Stockholders EquityCurrent LiabilitiesDebt maturing within one year$8,902$5,089 Accounts payable and accrued liabilities33,113 35,657 Advanced billings and customer deposits3,951 4,099 Dividends payable2,033 2,027 Total current liabilities47,999 46,872

29、 Long-Term Debt117,259 118,443 Deferred Credits and Other Noncurrent LiabilitiesNoncurrent deferred tax liabilities59,144 58,939 Postemployment benefit obligation9,040 9,025 Operating lease liabilities17,433 17,391 Other noncurrent liabilities24,753 23,900 Total deferred credits and other noncurrent

30、 liabilities110,370 109,255 Redeemable Noncontrolling Interest1,981 1,980 Stockholders EquityPreferred stock($1 par value,10,000,000 authorized at March 31,2025 and December 31,2024):Series A(48,000 issued and outstanding at March 31,2025 and December 31,2024)Series B(20,000 issued and 0 outstanding

31、 at March 31,2025 and 20,000 issued and outstandingDecember 31,2024)Series C(70,000 issued and outstanding at March 31,2025 and December 31,2024)Common stock($1 par value,14,000,000,000 authorized at March 31,2025 andDecember 31,2024:issued 7,620,748,598 at March 31,2025 and December 31,2024)7,621 7

32、,621 Additional paid-in capital106,302 109,108 Retained earnings4,215 1,871 Treasury stock(425,186,872 at March 31,2025 and 444,853,148 at December 31,2024,at cost)(14,252)(15,023)Accumulated other comprehensive income(loss)(142)795 Noncontrolling interest16,114 13,873 Total stockholders equity119,8

33、58 118,245 Total Liabilities and Stockholders Equity$397,467$394,795 See Notes to Consolidated Financial Statements.5AT&T INC.CONSOLIDATED STATEMENTS OF CASH FLOWSDollars in millions(Unaudited)Three months ended March 31,20252024Operating Activities Net Income$4,692$3,751 Adjustments to reconcile ne

34、t income to net cash provided by operating activities:Depreciation and amortization5,190 5,047 Provision for uncollectible accounts516 472 Asset impairments and abandonments and restructuring504 159 Pension and postretirement benefit expense(credit)(397)(471)Net(gain)loss on investments81 201 Change

35、s in operating assets and liabilities:Receivables15 512 Equipment installment receivables and related sales1,212 24 Contract asset and cost deferral(147)101 Inventories,prepaid and other current assets(661)(24)Accounts payable and other accrued liabilities(3,297)(3,419)Changes in income taxes1,285 1

36、,141 Postretirement claims and contributions(68)(54)Other-net124 107 Total adjustments4,357 3,796 Net Cash Provided by Operating Activities9,049 7,547 Investing ActivitiesCapital expenditures(4,277)(3,758)Acquisitions,net of cash acquired(20)(211)Dispositions11 8 Distributions from DIRECTV in excess

37、 of cumulative equity in earnings 194(Purchases),sales and settlements of securities and investments-net45 1,079 Other-net(717)(273)Net Cash Used in Investing Activities(4,958)(2,961)Financing ActivitiesNet change in short-term borrowings with original maturities of three months or less 1,933 Issuan

38、ce of other short-term borrowings 491 Repayment of other short-term borrowings(1,996)Issuance of long-term debt2,956 Repayment of long-term debt(1,526)(4,685)Payment of vendor financing(203)(841)Redemption of preferred stock(2,075)Purchase of treasury stock(218)(157)Issuance of treasury stock17 Issu

39、ance of preferred interests in subsidiary2,221 Dividends paid(2,091)(2,034)Other-net366(526)Net Cash Used in Financing Activities(553)(7,815)Net increase(decrease)in cash and cash equivalents and restricted cash$3,538$(3,229)Cash and cash equivalents and restricted cash beginning of year3,406 6,833

40、Cash and Cash Equivalents and Restricted Cash End of Period$6,944$3,604 See Notes to Consolidated Financial Statements.6AT&T INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITYDollars and shares in millions except per share amounts (Unaudited)Three months ended March 31,2025March 31,2024 S

41、haresAmountSharesAmountPreferred Stock-Series A Balance at beginning of period$Balance at end of period$Preferred Stock-Series BBalance at beginning of period$Balance at end of period$Preferred Stock-Series CBalance at beginning of period$Balance at end of period$Common StockBalance at beginning of

42、period7,621$7,621 7,621$7,621 Balance at end of period7,621$7,621 7,621$7,621 Additional Paid-In CapitalBalance at beginning of period$109,108$114,519 Redemption of preferred stock(2,165)Preferred stock dividends(98)Common stock dividends($0.2775 and$0.2775 per share)(2,003)Issuance of treasury stoc

43、k(452)(413)Share-based payments(189)(266)Redemption or reclassification of interest held by noncontrolling owners(140)Balance at end of period$106,302$111,599 Retained Earnings(Deficit)Balance at beginning of period$1,871$(5,015)Net income attributable to AT&T4,351 3,445 Preferred stock redemption g

44、ain90 Preferred stock dividends(86)Common stock dividends($0.2775 and$0.2775 per share)(2,011)Balance at end of period$4,215$(1,570)See Notes to Consolidated Financial Statements.7AT&T INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY-continuedDollars and shares in millions except per sh

45、are amounts (Unaudited)Three months ended March 31,2025March 31,2024 SharesAmountSharesAmountTreasury Stock Balance at beginning of period(445)$(15,023)(471)$(16,128)Repurchase and acquisition of common stock(9)(218)(9)(157)Reissuance of treasury stock29 989 29 1,008 Balance at end of period(425)$(1

46、4,252)(451)$(15,277)Accumulated Other Comprehensive Income(Loss)Attributable to AT&T,net of taxBalance at beginning of period$795$2,300 Other comprehensive income(loss)attributable to AT&T(937)(133)Balance at end of period$(142)$2,167 Noncontrolling InterestBalance at beginning of period$13,873$14,1

47、45 Net income attributable to noncontrolling interest305 270 Issuance and acquisition by noncontrolling owners2,221 Redemption of noncontrolling interest(17)Distributions(285)(318)Balance at end of period$16,114$14,080 Total Stockholders Equity at beginning of period$118,245$117,442 Total Stockholde

48、rs Equity at end of period$119,858$118,620 Excludes redeemable noncontrolling interestSee Notes to Consolidated Financial Statements.118AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)Dollars in millions except per share amountsNOTE 1.PREPARATION OF INTERIM FINANCIAL STATE

49、MENTS Basis of Presentation Throughout this document,AT&T Inc.is referred to as“we,”“AT&T”or the“Company.”The consolidated financial statements includethe accounts of the Company and subsidiaries and affiliates which we control.AT&T is a holding company whose subsidiaries and affiliates operate worl

50、dwidein the telecommunications and technology industries.You should read this document in conjunction with the consolidated financial statements andaccompanying notes included in our Annual Report on Form 10-K for the year ended December 31,2024.The results for the interim periods are not necessaril

51、yindicative of those for the full year.These consolidated financial statements include all adjustments that are necessary to present fairly the results for thepresented interim periods,consisting of normal recurring accruals and other items.The consolidated financial statements include our controlle

52、d subsidiaries,as well as variable interest entities(VIE)where we are deemed to be the primarybeneficiary.All significant intercompany transactions are eliminated in consolidation.Investments in entities that we do not control but have significantinfluence are accounted for under the equity method.T

53、he preparation of financial statements in conformity with U.S.generally accepted accounting principles(GAAP)requires management to make estimates andassumptions,including estimates of fair value,probable losses and expenses,that affect the amounts reported in the financial statements and accompanyin

54、gnotes.Actual results could differ from those estimates.Certain prior period amounts have been conformed to the current periods presentation providing furtherdisaggregation of activities within Cash from Operations in our consolidated statements of cash flows and additional revenue categories for ou

55、r BusinessWireline and Consumer Wireline business units(see Note 5).NOTE 2.EARNINGS PER SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below:Three months ended March 31,20252024Numerators Numerator for basic earnings per share:

56、Net Income Attributable to Common Stock$4,395$3,395 Dilutive impact of share-based payment4 Numerator for diluted earnings per share$4,399$3,395 Denominators(000,000)Denominator for basic earnings per share:Weighted average number of common shares outstanding7,213 7,192 Dilutive impact of share-base

57、d payment(in shares)10 1 Denominator for diluted earnings per share7,223 7,193 9AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsNOTE 3.OTHER COMPREHENSIVE INCOME Changes in the balances of each component included in acc

58、umulated other comprehensive income(OCI)are presented below.All amounts are net of tax.ForeignCurrencyTranslationAdjustment Net UnrealizedGains(Losses)onSecurities Net UnrealizedGains(Losses)onDerivativeInstruments Defined BenefitPostretirementPlans Accumulated OtherComprehensiveIncome(Loss)Balance

59、as of December 31,2024$(1,755)$(46)$(604)$3,200$795 Other comprehensive income(loss)before reclassifications21 10(624)(593)Amounts reclassified fromaccumulated OCI 11 111 2(356)3(344)Net other comprehensiveincome(loss)21 11(613)(356)(937)Balance as of March 31,2025$(1,734)$(35)$(1,217)$2,844$(142)Fo

60、reignCurrencyTranslationAdjustment Net UnrealizedGains(Losses)onSecurities Net UnrealizedGains(Losses)onDerivativeInstruments Defined BenefitPostretirementPlans Accumulated OtherComprehensiveIncome(Loss)Balance as of December 31,2023$(1,337)$(57)$(1,029)$4,723$2,300 Other comprehensive income(loss)b

61、efore reclassifications29(10)211 230 Amounts reclassified fromaccumulated OCI 16 112 2(381)3(363)Net other comprehensiveincome(loss)29(4)223(381)(133)Balance as of March 31,2024$(1,308)$(61)$(806)$4,342$2,167(Gains)losses are included in“Other income(expense)-net”in the consolidated statements of in

62、come.(Gains)losses are primarily included in“Interest expense”in the consolidated statements of income(see Note 7).The amortization of prior service credits associated with postretirement benefits are included in“Other income(expense)-net”in the consolidated statements of income(seeNote 6).NOTE 4.SE

63、GMENT INFORMATION Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over varioustechnology platforms and/or in different geographies that are managed accordingly.We have two reportable segments:Communications an

64、d Latin America.Our chief operating decision maker(CODM)is our Chief Executive Officer and President.Our CODM uses operating income to evaluate performance andallocate resources,including capital allocations,when managing the business.Our CODM manages operations through the review of actual and fore

65、casted“Operations and Support Expenses”information at a segment and business unit level,with Communications and Latin America segments primarily evaluatedon a direct cost basis and comprised of equipment,compensation,network and technology,sales,advertising and other costs.Additionally,business unit

66、 expenses within the Communications segment include direct and shared costs.Direct costs are incurred in support of products andservices offered by the business units,such as equipment costs(predominantly wireless devices),network access,rents,leases,sales support,customerprovisioning and commission

67、 expenses.Shared costs amongst the business units generally include information technology,network engineering andconstruction costs,advertising and other general and administrative expenses.12310AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions

68、 except per share amountsThe Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S.and businesses globally.Ourbusiness strategies reflect integrated product offerings that cut across product lines and utilize shared assets.This segment c

69、ontains the following businessunits:Mobility provides nationwide wireless service and equipment.Business Wireline provides advanced ethernet-based fiber services,fixed wireless services,IP Voice and managed professional services,as well as legacyvoice and data services and related equipment,to busin

70、ess customers.Consumer Wireline provides broadband services,including fiber connections that provide multi-gig services,and our fixed wireless access product(AT&T Internet Air or“AIA”)that provides internet services delivered over our 5G wireless network,to residential customers in select locations.

71、Consumer Wireline also provides legacy telephony voice communication services.The Latin America segment provides wireless services and equipment in Mexico.Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes.Corporate includes:DTV-related

72、 retained costs,which are costs previously allocated to the Video business that were retained after the transaction,net of reimbursements fromDIRECTV Entertainment Holdings,LLC(DIRECTV)under transition service agreements.Parent administration support,which includes costs borne by AT&T where the busi

73、ness units do not influence decision making.Securitization fees associated with our sales of receivables(see Note 8).Value portfolio,which are businesses no longer integral to our operations or which we no longer actively market.Other items consist of:Certain significant items,which includes items a

74、ssociated with the merger and integration of acquired or divested businesses,including amortization ofintangible assets,employee separation charges associated with voluntary and/or strategic offers,asset impairments and abandonments and restructuring,and other items for which the segments are not be

75、ing evaluated.“Interest expense,”“Other income(expense)net”and“Equity in net income of affiliates”are managed only on a total company basis and are,accordingly,reflected only in consolidated results.11AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in mil

76、lions except per share amountsFor the three months ended March 31,2025 RevenuesOperationsand SupportExpensesDepreciationandAmortizationOperatingIncome(Loss)Communications Mobility$21,570$12,304$2,526$6,740 Business Wireline4,468 3,068 1,498(98)Consumer Wireline3,522 2,224 949 349 Total Communication

77、s29,560 17,596 4,973 6,991 Latin America971 778 150 43 Segment Total30,531 18,374 5,123 7,034 Corporate and OtherCorporate:DTV-related retained costs 56 50(106)Parent administration support1 439 8(446)Securitization fees28 214 (186)Value portfolio66 10 56 Total Corporate95 719 58(682)Certain signifi

78、cant items 589 9(598)Total Corporate and Other95 1,308 67(1,280)AT&T Inc.$30,626$19,682$5,190$5,754 For the three months ended March 31,2024 RevenuesOperations andSupport ExpensesDepreciation andAmortizationOperating Income(Loss)Communications Mobility$20,594$11,639$2,487$6,468 Business Wireline4,91

79、3 3,487 1,362 64 Consumer Wireline3,350 2,256 881 213 Total Communications28,857 17,382 4,730 6,745 Latin America1,063 883 1773 Segment Total29,920 18,265 4,907 6,748 Corporate and OtherCorporate:DTV-related retained costs 134 120(254)Parent administration support 392 1(393)Securitization fees26 165

80、 (139)Value portfolio82 26 4 52 Total Corporate108 717 125(734)Certain significant items 152 15(167)Total Corporate and Other108 869 140(901)AT&T Inc.$30,028$19,134$5,047$5,847 12AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share

81、 amountsThe following table is a reconciliation of Segment Operating Income to“Income Before Income Taxes”reported in our consolidated statements of income:Three months endedMarch 31,20252024Communications$6,991$6,745 Latin America43 3 Segment Operating Income7,034 6,748 Reconciling Items:Corporate(

82、682)(734)Transaction,legal and other costs(79)(32)Amortization of intangibles acquired(9)(15)Asset impairments and abandonments and restructuring(504)(159)Benefit-related gains(losses)(6)39 AT&T Operating Income5,754 5,847 Interest expense1,658 1,724 Equity in net income of affiliates1,440 295 Other

83、 income(expense)net455 451 Income Before Income Taxes$5,991$4,869 The following tables present assets,investments in equity affiliates and capital expenditures by segment:March 31,December 31,20252024AssetsInvestments inEquity MethodInvesteesAssetsInvestments inEquity MethodInvesteesCommunications$4

84、84,165$481,757$Latin America8,130 7,808 Corporate and eliminations(94,828)942(94,770)295 Total$397,467$942$394,795$295 Three months endedMarch 31,Capital Expenditures20252024Communications$4,045$3,545 Latin America71 58 Corporate and eliminations161 155 Total$4,277$3,758 13AT&T INC.MARCH 31,2025NOTE

85、S TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsNOTE 5.REVENUE RECOGNITIONRevenue CategoriesThe following tables set forth reported revenue by category and by business unit:For the three months ended March 31,2025 Communications MobilityBusiness

86、WirelineConsumerWirelineLatin AmericaCorporate&OtherTotalWireless$16,651$615$17,266 Fiber and advanced connectivity 1,780 2,066 3,846 Non-fiber consumer broadband 918 918 Legacy and other transitional 2,475 286 46 2,807 Other 252 49 301 Total Service16,651 4,255 3,522 615 95 25,138 Equipment4,919 21

87、3 356 5,488 Total$21,570$4,468$3,522$971$95$30,626 Advanced connectivity services reported in Business Wireline.For the three months ended March 31,2024 Communications MobilityBusinessWirelineConsumerWirelineLatin AmericaCorporate&OtherTotalWireless$15,994$690$16,684 Fiber and advanced connectivity

88、1,703 1,736 3,439 Non-fiber consumer broadband 986 986 Legacy and other transitional 2,997 342 62 3,401 Other 286 46 332 Total Service15,994 4,700 3,350 690 108 24,842 Equipment4,600 213 373 5,186 Total$20,594$4,913$3,350$1,063$108$30,028 Advanced connectivity services reported in Business Wireline.

89、Deferred Customer Contract Acquisition and Fulfillment CostsCosts to acquire and fulfill customer contracts,including commissions on service activations for our Mobility,Business Wireline and Consumer Wirelineservices,are deferred and amortized over the contract period or expected customer relations

90、hip life,which typically ranges from three years to five years.111114AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsThe following table presents the deferred customer contract acquisition and fulfillment costs included

91、 on our consolidated balance sheets:March 31,December 31,Consolidated Balance Sheets20252024Deferred Acquisition Costs Prepaid and other current assets$3,230$3,239 Other Assets4,313 4,177 Total deferred customer contract acquisition costs$7,543$7,416 Deferred Fulfillment CostsPrepaid and other curre

92、nt assets$2,037$2,101 Other Assets3,180 3,289 Total deferred customer contract fulfillment costs$5,217$5,390 The following table presents deferred customer contract acquisition and fulfillment cost amortization,which are primarily included in“Selling,general andadministrative”and“Other cost of reven

93、ues,”respectively,for the three months ended:March 31,March 31,Consolidated Statements of Income20252024Deferred acquisition cost amortization$906$894 Deferred fulfillment cost amortization595 660 Contract Assets and LiabilitiesA contract asset is recorded when revenue is recognized in advance of ou

94、r right to bill and receive consideration.The contract asset will decrease as servicesare provided and billed.For example,when installment sales include promotional discounts(e.g.,trade-in device credits)the difference between revenuerecognized and consideration received is recorded as a contract as

95、set to be amortized over the contract term.Our contract assets primarily relate to our wireless businesses.Promotional equipment sales where we offer handset credits,which are allocated betweenequipment and service in proportion to their standalone selling prices,when customers commit to a specified

96、 service period result in additional contract assetsrecognized.These contract assets will amortize over the service contract period,resulting in lower future service revenue.When consideration is received in advance of the delivery of goods or services,a contract liability is recorded.Reductions in

97、the contract liability will berecorded as we satisfy the performance obligations.The following table presents contract assets and liabilities on our consolidated balance sheets:March 31,December 31,Consolidated Balance Sheets20252024Contract asset$7,049$6,855 Current portion in“Prepaid and other cur

98、rent assets”3,924 3,845 Contract liability4,109 4,272 Current portion in“Advanced billings and customer deposits”3,834 3,981 Our beginning of period contract liability recorded as customer contract revenue during 2025 was$3,500.15AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUD

99、ITED)-ContinuedDollars in millions except per share amountsRemaining Performance ObligationsRemaining performance obligations represent services we are required to provide to customers under bundled or discounted arrangements,which are satisfiedas services are provided over the contract term.In dete

100、rmining the transaction price allocated,we do not include non-recurring charges and estimates for usage,nor do we consider arrangements with an original expected duration of less than one year,which are primarily prepaid wireless and residential internetagreements.Remaining performance obligations a

101、ssociated with business contracts reflect recurring charges billed,adjusted to reflect estimates for sales incentives andrevenue adjustments.Performance obligations associated with wireless contracts are estimated using a portfolio approach in which we review all relevantpromotional activities,calcu

102、lating the remaining performance obligation using the average service component for the portfolio and the average device price.Asof March 31,2025,the aggregate amount of the transaction price allocated to remaining performance obligations was$41,685,of which we expect to recognizeapproximately 83%by

103、 the end of 2026,with the balance recognized thereafter.NOTE 6.PENSION AND POSTRETIREMENT BENEFITS Many of our employees are covered by one of our noncontributory pension plans.We also provide certain medical,dental,life insurance and death benefits tocertain retired employees under various plans an

104、d accrue actuarially determined postretirement benefit costs.Our objective in funding these plans,incombination with the standards of the Employee Retirement Income Security Act of 1974,as amended(ERISA),is to accumulate assets sufficient to providebenefits described in the plans to employees upon t

105、heir retirement.We do not have significant funding requirements in 2025.We recognize actuarial gains and losses on pension and postretirement plan assets in our consolidated results as a component of“Other income(expense)net”at our annual measurement date of December 31,unless earlier remeasurements

106、 are required.The following table details qualified pension and postretirement benefit costs included in the accompanying consolidated statements of income.The servicecost component of net periodic pension(credit)cost is recorded in operating expenses in the consolidated statements of income while t

107、he remainingcomponents are recorded in“Other income(expense)net.”Three months ended March 31,20252024Pension cost:Service cost benefits earned during the period$107$122 Interest cost on projected benefit obligation400 396 Expected return on assets(507)(553)Amortization of prior service credit(12)(22

108、)Net pension(credit)cost$(12)$(57)Postretirement cost:Service cost benefits earned during the period$4$5 Interest cost on accumulated postretirement benefit obligation80 77 Expected return on assets(10)(14)Amortization of prior service credit(459)(482)Net postretirement(credit)cost$(385)$(414)Combin

109、ed net pension and postretirement(credit)cost$(397)$(471)We also provide senior-and middle-management employees with nonqualified,unfunded supplemental retirement and savings plans.Net supplemental pensionbenefits costs not included in the table above were$16 and$17 for the three months ended March

110、31,2025 and 2024,respectively.16AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsNOTE 7.FAIR VALUE MEASUREMENTS AND DISCLOSURE The Fair Value Measurement and Disclosure framework in ASC 820,“Fair Value Measurement,”provi

111、des a three-tiered fair value hierarchy based on thereliability of the inputs used to determine fair value.Level 1 refers to fair values determined based on quoted prices in active markets for identical assets.Level2 refers to fair values estimated using significant other observable inputs and Level

112、 3 includes fair values estimated using significant unobservable inputs.The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.Ourvaluation techniques maximize the use of observable inputs and min

113、imize the use of unobservable inputs.The valuation methodologies described above may produce a fair value calculation that may not be indicative of future net realizable value or reflective offuture fair values.We believe our valuation methods are appropriate and consistent with other market partici

114、pants.The use of different methodologies orassumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.There have beenno changes in the methodologies used since December 31,2024.Long-Term Debt and Other Financial I

115、nstrumentsThe carrying amounts and estimated fair values of our long-term debt,including current maturities,and other financial instruments are summarized as follows:March 31,2025December 31,2024 CarryingFairCarryingFair AmountValueAmountValueNotes and debentures$124,790$117,223$122,116$114,167 Comm

116、ercial paper Investment securities1,546 1,546 1,603 1,603 Includes credit agreement borrowings.Excludes investments accounted for under the equity method.The carrying amount of debt with an original maturity of less than one year approximates fair value.The fair value measurements used for notes and

117、debentures are considered Level 2 and are determined using various methods,including quoted prices for identical or similar securities in both active andinactive markets.Following is the fair value leveling for investment securities that are measured at fair value and derivatives as of March 31,2025

118、 and December 31,2024.Derivatives designated as hedging instruments are reflected as“Prepaid and other current assets,”“Other Assets,”“Accounts payable and accrued liabilities,”and“Other noncurrent liabilities”on our consolidated balance sheets.March 31,2025 Level 1Level 2Level 3TotalEquity Securiti

119、es Domestic equities$463$463 International equities8 8 Fixed income equities182 182 Available-for-Sale Debt Securities 686 686 Asset DerivativesCross-currency swaps 96 96 Liability DerivativesCross-currency swaps(3,849)(3,849)121217AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNA

120、UDITED)-ContinuedDollars in millions except per share amounts December 31,2024 Level 1Level 2Level 3TotalEquity Securities Domestic equities$484$484 International equities8 8 Fixed income equities178 178 Available-for-Sale Debt Securities 689 689 Asset DerivativesCross-currency swaps 87 87 Liability

121、 DerivativesCross-currency swaps(4,163)(4,163)Investment SecuritiesOur investment securities include both equity and debt securities that are measured at fair value,as well as equity securities without readily determinable fairvalues.A substantial portion of the fair values of our investment securit

122、ies is estimated based on quoted market prices.Investments in equity securities nottraded on a national securities exchange are valued at cost,less any impairment,and adjusted for changes resulting from observable,orderly transactions foridentical or similar securities.Investments in debt securities

123、 not traded on a national securities exchange are valued using pricing models,quoted prices ofsecurities with similar characteristics or discounted cash flows.The components comprising total gains and losses in the period on equity securities are as follows:Three months ended March 31,20252024Total

124、gains(losses)recognized on equity securities$(27)$97 Gains(losses)recognized on equity securities sold(3)Unrealized gains(losses)recognized on equity securities held at end of period$(27)$100 At March 31,2025,available-for-sale debt securities totaling$686 have maturities as follows-less than one ye

125、ar:$94;one to three years:$100;three to fiveyears:$100;five or more years:$392.Our cash equivalents(money market securities)and short-term investments(certificate and time deposits)are recorded at amortized cost,and the respectivecarrying amounts approximate fair values.Short-term investments are re

126、corded in“Prepaid and other current assets”and our investment securities are recordedin“Other Assets”on the consolidated balance sheets.Derivative Financial InstrumentsWe enter into derivative transactions to manage certain market risks,primarily interest rate risk and foreign currency exchange risk

127、.This includes the use ofinterest rate swaps,interest rate locks,foreign exchange forward contracts and combined interest rate foreign exchange contracts(cross-currency swaps).Wedo not use derivatives for trading or speculative purposes.We record derivatives on our consolidated balance sheets at fai

128、r value that is derived from observablemarket data,including yield curves and foreign exchange rates(all of our derivatives are Level 2).Cash flows associated with derivative instruments arepresented in the same category on the consolidated statements of cash flows as the item being hedged.Fair Valu

129、e Hedging Periodically,we enter into and designate fixed-to-floating interest rate swaps as fair value hedges.The purpose of these swaps is to manageinterest rate risk by managing our mix of fixed-rate and floating-rate debt.These swaps involve the receipt of fixed-rate amounts for floating interest

130、 ratepayments over the life of the swaps without exchange of the underlying principal amount.We also designate most of our cross-currency swaps and foreign exchange contracts as fair value hedges.The purpose of these contracts is to hedge foreigncurrency risk associated with changes in spot rates on

131、 foreign denominated debt.For cross-currency hedges,we have elected to exclude the change in fair valueof the swap related to both time value and cross-currency18AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsbasis spr

132、ead from the assessment of hedge effectiveness.For foreign exchange contracts,we have elected to exclude the change in fair value of forward pointsfrom the assessment of hedge effectiveness.Unrealized and realized gains or losses from fair value hedges impact the same category on the consolidated st

133、atements of income as the item being hedged,including the earnings impact of excluded components.In instances where we have elected to exclude components from the assessment of hedge effectivenessrelated to fair value hedges,unrealized gains or losses on such excluded components are recorded as a co

134、mponent of accumulated OCI and recognized intoearnings over the life of the hedging instrument.Unrealized gains on derivatives designated as fair value hedges are recorded at fair value as assets,andunrealized losses are recorded at fair market value as liabilities.Except for excluded components,cha

135、nges in the fair value of derivative instruments designatedas fair value hedges are offset against the change in fair value of the hedged assets or liabilities through earnings.In the three months ended March 31,2025and 2024,no ineffectiveness was measured on fair value hedges.Cash Flow Hedging We d

136、esignate some of our cross-currency swaps as cash flow hedges to hedge our exposure to variability in expected future cash flows thatare attributable to foreign currency risk and interest rate risk generated from our foreign-denominated debt.These agreements include initial and finalexchanges of pri

137、ncipal from fixed foreign denominated amounts to fixed U.S.dollar denominated amounts,to be exchanged at a specified rate that is usuallydetermined by the market spot rate upon issuance.They also include an interest rate swap of a fixed or floating foreign denominated interest rate to a fixed U.S.do

138、llar denominated interest rate.Unrealized gains on derivatives designated as cash flow hedges are recorded at fair value as assets and unrealized losses are recorded at fair value as liabilities.For derivative instruments designated as cash flow hedges,changes in fair value are reported as a compone

139、nt of accumulated OCI and are reclassified into theconsolidated statements of income in the same period the hedged transaction affects earnings.Periodically,we enter into and designate interest rate locks to partially hedge the risk of changes in interest payments attributable to increases in the be

140、nchmarkinterest rate during the period leading up to the probable issuance of fixed-rate debt.We designate our interest rate locks as cash flow hedges.Gains and losseswhen we settle our interest rate locks are amortized into income over the life of the related debt.Over the next 12 months,we expect

141、to reclassify$59 fromaccumulated OCI to“Interest expense”due to the amortization of net losses on historical interest rate locks.Collateral and Credit-Risk Contingency We have entered into agreements with our derivative counterparties establishing collateral thresholds based onrespective credit rati

142、ngs and netting agreements.At March 31,2025,we had posted collateral of$196(a deposit asset)and held collateral of$0(a receiptliability).Under the agreements,if AT&Ts credit rating had been downgraded two ratings levels by Fitch Ratings,one level by S&P and one level by Moodysbefore the final collat

143、eral exchange in March,we would have been required to post additional collateral of$50.If AT&Ts credit rating had been downgradedthree ratings levels by Fitch Ratings,two levels by S&P and two levels by Moodys,we would have been required to post additional collateral of$3,657.AtDecember 31,2024,we h

144、ad posted collateral of$188(a deposit asset)and held collateral of$0(a receipt liability).We do not offset the fair value of collateral,whether the right to reclaim cash collateral(a receivable)or the obligation to return cash collateral(a payable)exists,against the fair value of the derivativeinstr

145、uments.Following are the notional amounts of our outstanding derivative positions:March 31,December 31,20252024Cross-currency swaps$36,532$34,884 Total$36,532$34,884 19AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsFol

146、lowing are the related hedged items affecting our financial position and performance:Effect of Derivatives on the Consolidated Statements of Income Three months ended March 31,Fair Value Hedging Relationships20252024Interest rate swaps(“Interest expense”):Gain(loss)on interest rate swaps$(1)$Gain(lo

147、ss)on long-term debt1 Cross-currency swaps:Gain(loss)on cross-currency swaps1,124(246)Gain(loss)on long-term debt(1,124)246 Gain(loss)recognized in accumulated OCI(831)255 In addition,the net swap settlements that accrued and settled in the periods above were offset against“Interest expense.”The fol

148、lowing table presents information for our cash flow hedging relationships:Three months ended March 31,Cash Flow Hedging Relationships20252024Cross-currency swaps:Gain(loss)recognized in accumulated OCI$4$5 Interest rate locks:Interest income(expense)reclassified from accumulatedOCI into income(15)(1

149、5)NOTE 8.SALES OF RECEIVABLES We have agreements with various third-party financial institutions pertaining to the sales of certain types of our accounts receivable.The most significant ofthese programs are discussed in detail below and generally consist of(1)receivables arising from equipment insta

150、llment plans,which are sold for cash andbeneficial interests,such as deferred purchase price,when applicable,and(2)revolving trade receivables,which are sold for cash.Under the terms of ouragreements for these programs,we continue to service the transferred receivables on behalf of the financial ins

151、titutions.The following table sets forth a summary of cash proceeds received,net of remittances paid,from sales of receivables:Three months endedMarch 31,20252024Net cash received(paid)from equipment installment receivables program$859$121 Net cash received(paid)from revolving receivables program133

152、 276 Total net cash impact to cash flows from operating activities$992$397 Cash from initial sales of$3,798 and$2,874 for the three months ended March 31,2025 and 2024,respectively.Net of facility fees.The sales of receivables did not have a material impact on our consolidated statements of income o

153、r to“Total Assets”reported on our consolidated balancesheets.We reflect cash receipts on sold receivables as cash flows from operations in our consolidated statements of cash flows.In the event cash is received onthe beneficial interests,those receipts are classified as cash flows from investing act

154、ivities,when applicable.121220AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsOur equipment installment and revolving receivables programs are discussed in detail below.The following table sets forth a summary of the re

155、ceivables andaccounts being serviced:March 31,2025December 31,2024 Equipment Equipment InstallmentRevolvingInstallmentRevolvingGross receivables:$3,260$244$3,504$553 Balance sheet classification Accounts receivable Notes receivable1,769 1,817 Trade receivables315 244 237 553 Other Assets Noncurrent

156、notes and trade receivables1,176 1,450 Outstanding portfolio of receivables derecognized fromour consolidated balance sheets$11,730$2,940$11,909$2,770 Cash proceeds received,net of remittances9,137 2,940 8,243 2,770 Represents amounts to which financial institutions remain entitled,excluding the ben

157、eficial interests.Equipment Installment Receivables ProgramWe offer our customers the option to purchase certain wireless devices in installments over a specified period of time and,in many cases,once certainconditions are met,they may be eligible to trade in the original equipment for a new device

158、and have the remaining unpaid balance paid or settled.We maintain a program under which we transfer a portion of these receivables through our bankruptcy-remote subsidiary in exchange for cash and beneficialinterests.In the event a customer trades in a device prior to the end of the installment cont

159、ract period,we agree to make a payment to the financial institutionsequal to any outstanding remaining installment receivable balance.Accordingly,we record a guarantee obligation for this estimated amount at the time thereceivables are transferred.The following table sets forth a summary of equipmen

160、t installment receivables sold under this program:Three months ended March 31,20252024Gross receivables sold$3,835$2,904 Net receivables sold3,688 2,757 Cash proceeds received3,798 2,874 Guarantee obligation recorded280 266 Receivables net of promotion credits.Receivables net of allowance and other

161、reserves.Beneficial interests,when applicable,and guarantee obligations are initially recorded at estimated fair value and subsequently adjusted for changes in presentvalue of expected cash flows.The estimation of their fair values is based on remaining installment payments expected to be collected

162、and the expected timingand value of device trade-ins.The estimated value of the device trade-ins considers prices offered to us by independent third parties and contemplates changesin value after the launch of a device model.The fair value measurements used for the beneficial interests and the guara

163、ntee obligation are considered Level 3under the Fair Value Measurement and Disclosure framework(see Note 7).11121221AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsThe following table presents the previously transferred

164、 equipment installment receivables,which we repurchased in exchange for the associated beneficialinterests:Three months ended March 31,20252024Fair value of repurchased receivables$1,937$718 Carrying value of beneficial interests1,933 721 Gain(loss)on repurchases$4$(3)These gains(losses)are included

165、 in“Selling,general and administrative”expense in the consolidated statements of income.At March 31,2025 and December 31,2024,our beneficial interests were$2,083 and$3,185,respectively,of which$1,189 and$1,906 are included in“Prepaidand other current assets”on our consolidated balance sheets,with th

166、e remainder in“Other Assets.”The guarantee obligation at March 31,2025 andDecember 31,2024 was$295 and$301,respectively,of which$162 and$150 are included in“Accounts payable and accrued liabilities”on our consolidatedbalance sheets,with the remainder in“Other noncurrent liabilities.”Our maximum expo

167、sure to loss as a result of selling these equipment installmentreceivables is limited to the total amount of our beneficial interests and guarantee obligation.Revolving Receivables ProgramDuring 2025,we expanded our revolving agreement to transfer up to$2,940 of certain receivables through our bankr

168、uptcy-remote subsidiaries to variousfinancial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred.This agreement is subject to renewal on an annualbasis and the transfer limit may be expanded or reduced from time to time.As customers pay their balances,w

169、e transfer additional receivables into theprogram,resulting in our gross receivables sold exceeding net cash flow impacts(e.g.,collect and reinvest).The transferred receivables are fully guaranteed byour bankruptcy-remote subsidiaries,which hold additional receivables in the amount of$244 that are p

170、ledged as collateral under this agreement.The transfersare recorded at fair value of the proceeds received and obligations assumed less derecognized receivables.Our maximum exposure to loss related to thesereceivables transferred is limited to the derecognized amount outstanding.The following table

171、sets forth a summary of the revolving receivables sold:Three months ended March 31,20252024Gross receivables sold/cash proceeds received$7,343$4,174 Total collections under revolving agreement7,173 3,874 Net cash proceeds received$170$300 Net receivables sold$7,142$4,063 Includes initial sales of re

172、ceivables of$170 and$300 for the three months ended March 31,2025 and 2024,respectively.Receivables net of allowance and other reserves.NOTE 9.TRANSACTIONS WITH DIRECTVWe account for our investment in DIRECTV under the equity method and record our share of DIRECTV earnings as equity in net income of

173、 affiliates,withDIRECTV considered a related party.On September 29,2024,we agreed to sell our interest in DIRECTV to TPG for approximately$7,600 in cash paymentsthrough 2029,inclusive of approximately$3,120 total distributions received towards the transaction price as of March 31,2025,which included

174、 a first-quarter2025 dividend of$1,138.The transaction is expected to close in mid-2025,pending customary closing conditions.We expect a gain on sale,whose amount willbe dependent on the timing of close.Beginning in third-quarter 2024,our investment in DIRECTV was reduced to zero on our consolidated

175、 balance sheet,resulting from aggregate cash receiptsexceeding our initial investment balance plus our cumulative equity in DIRECTV earnings.As we are not committed,implicitly or explicitly,to providefinancial or other support to DIRECTV,we record cash distributions11121222AT&T INC.MARCH 31,2025NOTE

176、S TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsreceived in excess of our share of DIRECTVs earnings in“Equity in net income of affiliates”in the consolidated statements of income and as cash providedby operations in the consolidated statements

177、of cash flows.The following table sets forth our share of DIRECTVs earnings included in“Equity in net income of affiliates”and cash distributions received fromDIRECTV:Three months endedMarch 31,20252024DIRECTVs earnings included in Equity in net income of affiliates$1,423$324 Distributions classifie

178、d as operating activities$1,423$324 Distributions classified as investing activities 194 Cash distributions received from DIRECTV$1,423$518 For the three months ended March 31,2025 and 2024,we billed DIRECTV approximately$124 and$145 under commercial arrangements and transitionservice agreements,whi

179、ch were recorded as a reduction to the operations and support expenses incurred.At March 31,2025,we had accounts receivable from DIRECTV of$226 and accounts payable to DIRECTV of$50.NOTE 10.SUPPLIER AND VENDOR FINANCING PROGRAMSSupplier Financing ProgramWe actively manage the timing of our supplier

180、payments for operating items to optimize the use of our cash and seek to make payments on 90-day or greaterterms,while providing suppliers with access to bank facilities that permit earlier payment at their cost.Our supplier financing program does not result inchanges to our normal,contracted paymen

181、t cycles or cash from operations.At the suppliers election,they can receive payment of AT&T obligations prior to the scheduled due dates,at a discounted price from the third-party financialinstitution.The discounted price paid to participating suppliers is based on a variable rate that is indexed to

182、 the overnight borrowing rate.We agree to pay thefinancial institution the stated amount generally within 90 days of receipt of the invoice.We do not have pledged assets or other guarantees under our supplierfinancing program.Suppliers had elected to sell to the third-party financial institutions$3,

183、384 and$2,498 of our outstanding payment obligations as of March 31,2025 andDecember 31,2024,respectively.These amounts are included in“Accounts payable and accrued liabilities”on our consolidated balance sheets.Our supplierfinancing programs are reported as operating or investing(when capitalizable

184、)activities in our consolidated statements of cash flows when paid.Direct Supplier FinancingWe also have arrangements with suppliers of handset inventory that allow us to extend the stated payment terms by up to 90 days at an additional cost to us(variable rate extension fee).We had$4,293 of direct

185、supplier financing outstanding as of March 31,2025 and$6,272 as of December 31,2024,which areincluded in“Accounts payable and accrued liabilities”on our consolidated balance sheets.Our direct supplier financing is reported as operating activities inour statements of cash flows when paid.Vendor Finan

186、cingWe enter into multi-year software licensing arrangements,which,consistent with industry standards,are paid over the license terms of two to five years.Additionally,in connection with capital improvements and the acquisition of other productive assets,we negotiate favorable payment terms of 120 d

187、ays ormore.We refer to these arrangements as vendor financing,with the balances and activity for the periods presented primarily relating to software arrangements.Vendor financing payments are reported as financing activities in our statements of cash flows when paid.For the three months ended March

188、 31,2025 and2024,we recorded vendor financing commitments of$378 and$99,respectively.We had$1,694 of vendor financing payables at March 31,2025,with$1,078included in“Accounts payable and accrued liabilities”and$1,448 of vendor financing payables at December 31,2024,with$749 included in“Accountspayab

189、le and accrued liabilities.”23AT&T INC.MARCH 31,2025NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)-ContinuedDollars in millions except per share amountsNOTE 11.ADDITIONAL FINANCIAL INFORMATION Cash and Cash FlowsWe typically maintain our restricted cash balances for purchases and sales of cer

190、tain investment securities and funding of certain deferred compensation benefitpayments.The following table summarizes cash and cash equivalents and restricted cash balances contained on our consolidated balance sheets:March 31,December 31,2025202420242023Cash and cash equivalents$6,885$3,520$3,298$

191、6,722 Restricted cash in Prepaid and other current assets1 1 1 2 Restricted cash in Other Assets58 83 107 109 Cash and Cash Equivalents and Restricted Cash$6,944$3,604$3,406$6,833 The following table summarizes cash paid during the periods for interest and income taxes:Three months ended March 31,Ca

192、sh paid(received)during the period for:20252024Interest$1,804$2,077 Income taxes,net of refunds11(9)The following table summarizes capital expenditures:Three months endedMarch 31,20252024Purchase of property and equipment$4,240$3,721 Interest during construction-capital expenditures37 37 Total Capit

193、al Expenditures$4,277$3,758 The following table summarizes acquisitions,net of cash acquired:Three months endedMarch 31,20252024Business acquisitions$Spectrum acquisitions1 145 Interest during construction-spectrum19 66 Total Acquisitions$20$211 Total capitalized interest was$56 and$103 for the thre

194、e months ended March 31,2025 and 2024,respectively.Preferred Equity TransactionsOn March 3,2025,we issued$2,250 of nonconvertible cumulative preferred interests in Telco LLC(Telco Class A-4).The Telco Class A-4 interests pay aninitial preferred distribution of 5.94%annually,subject to declaration,an

195、d subject to reset on November 1,2028,and every four years thereafter.The TelcoClass A-4 interests can be called at issue price beginning November 1,2028,and are subject to the same redemption and liquidation rights as the Telco Class A-1,A-2 and A-3 interests.On March 3,2025,we also redeemed all ou

196、tstanding Series B cumulative perpetual preferred shares.The shares had a total liquidation preference of 2.0billion and were redeemed for$2,075.11124AT&T INC.MARCH 31,2025Item 2.Managements Discussion and Analysis of Financial Condition and Results of OperationsDollars in millions except per share

197、amountsOVERVIEWAT&T Inc.is referred to as“we,”“AT&T”or the“Company”throughout this document.AT&T products and services are provided or offered by subsidiariesand affiliates of AT&T Inc.under the AT&T brand and not by AT&T Inc.,and the names of the particular subsidiaries and affiliates providing the

198、 servicesgenerally have been omitted.AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technologyindustries.You should read this discussion in conjunction with the consolidated financial statements and accompanying notes(Notes).We have two re

199、portable segments:Communications and Latin America.Our segment results presented in Note 4 and discussed below follow our internalmanagement reporting.Percentage increases and decreases that are not considered meaningful are denoted with a dash.First Quarter Percent 20252024ChangeOperating Revenues

200、Communications$29,560$28,857 2.4%Latin America971 1,063(8.7)Corporate95 108(12.0)AT&T Operating Revenues$30,626$30,028 2.0%Operating Income(Loss)Communications$6,991$6,745 3.6%Latin America43 3 Segment Operating Income7,034 6,748 4.2 Corporate(682)(734)7.1 Certain significant items(598)(167)AT&T Ope

201、rating Income$5,754$5,847(1.6)%The Communications segment provides services to businesses and consumers located in the U.S.and businesses globally.Our business strategies reflectintegrated product offerings that cut across product lines and utilize shared assets.This segment contains the following b

202、usiness units:Mobility provides nationwide wireless service and equipment.Business Wireline provides advanced ethernet-based fiber services,fixed wireless services,IP Voice and managed professional services,as well as legacyvoice and data services and related equipment,to business customers.Consumer

203、 Wireline provides broadband services,including fiber connections that provide multi-gig services,and AT&T Internet Air(AIA)services,toresidential customers in select locations.Consumer Wireline also provides legacy telephony voice communication services.The Latin America segment provides wireless s

204、ervices and equipment in Mexico.25AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsRESULTS OF OPERATIONS Consolidated Results Our financial results are summarized in the discussions

205、 that follow.Additional analysis is discussed in our“Segment Results”section.First Quarter Percent 20252024ChangeOperating Revenues Service$25,138$24,842 1.2%Equipment5,488 5,186 5.8 Total Operating Revenues30,626 30,028 2.0 Operating Expenses Operations and support19,682 19,134 2.9 Depreciation and

206、 amortization5,190 5,047 2.8 Total Operating Expenses24,872 24,181 2.9 Operating Income5,754 5,847(1.6)Interest expense1,658 1,724(3.8)Equity in net income of affiliates1,440 295 Other income(expense)net455 451 0.9 Income Before Income Taxes5,991 4,869 23.0 Net Income4,692 3,751 25.1 Net Income Attr

207、ibutable to AT&T4,351 3,445 26.3 Net Income Attributable to Common Stock$4,395$3,395 29.5%Operating revenues increased in the first quarter of 2025,reflecting higher Mobility and Consumer Wireline revenues,partially offset by declines in BusinessWireline and Mexico,which included unfavorable foreign

208、 exchange impacts.Operations and support expenses increased in the first quarter of 2025,primarily due to higher Mobility equipment costs resulting from increased wirelessequipment sales volumes and higher restructuring charges.These increases were partially offset by expense declines from our conti

209、nued transformation effortsand lower network-related costs,which included lower negotiated rates and higher vendor settlements in 2025,and the absence of expenses from ourcybersecurity business that was contributed to a new cybersecurity joint venture,LevelBlue,in the second quarter of 2024.Deprecia

210、tion and amortization expense increased in the first quarter of 2025,primarily due to ongoing capital spending for strategic initiatives such as fiberand network upgrades,partially offset by lower depreciation impacts from our Open RAN network modernization efforts.Operating income decreased in the

211、first quarter of 2025.Our operating income margin in the first quarter decreased from 19.5%in 2024 to 18.8%in 2025.Interest expense decreased in the first quarter of 2025,primarily due to lower debt balances,partially offset by lower capitalized interest associated withspectrum acquisitions.Equity i

212、n net income of affiliates increased in the first quarter of 2025.The increase reflects cash distributions received by AT&T in excess of the carryingamount of our investment in DIRECTV(see Note 9).Other income(expense)net increased in the first quarter of 2025.The increase was primarily due to first

213、-quarter 2024 noncash impairment charges for aheld-for-sale business and our SKY Mexico equity investment.Partially offsetting the increase were lower pension and postretirement benefit credits and lowerreturns on other benefit-related investments.26AT&T INC.MARCH 31,2025 Item 2.Managements Discussi

214、on and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsIncome tax expense increased in the first quarter of 2025.The increase was primarily due to higher income before incometax.Our effective tax rate was 21.7%in the first quarter of 202

215、5,versus 23.0%in the comparable period in the prior year,reflecting larger discrete state taxbenefits in 2025.Segment Results Our segments are comprised of strategic business units or other operations that offer products and services to different customer segmentsover various technology platforms an

216、d/or in different geographies that are managed accordingly.We evaluate segment performance based on operating incomeas well as EBITDA and/or EBITDA margin.See“Discussion and Reconciliation of Non-GAAP Measures”for a reconciliation of EBITDA and EBITDAmargin to the most comparable financial measures

217、calculated and presented in accordance with U.S.generally accepted accounting principles.COMMUNICATIONS SEGMENTFirst Quarter Percent 20252024ChangeSegment Operating Revenues Mobility$21,570$20,594 4.7%Business Wireline4,468 4,913(9.1)Consumer Wireline3,522 3,350 5.1 Total Segment Operating Revenues$

218、29,560$28,857 2.4%Segment Operating Income(Loss)Mobility$6,740$6,468 4.2%Business Wireline(98)64 Consumer Wireline349 213 63.8 Total Segment Operating Income$6,991$6,745 3.6%Operating revenues increased in the first quarter of 2025,primarily driven by increases in our Mobility and Consumer Wireline

219、business units,partially offsetby declines in our Business Wireline business unit,which reflects lower demand for legacy services and product simplification,as well as the absence ofrevenues from our cybersecurity business that was contributed to a new cybersecurity joint venture,LevelBlue,in the se

220、cond quarter of 2024.Operating income increased in the first quarter of 2025.Our Communications segment operating income margin in the first quarter increased from 23.4%in2024 to 23.7%in 2025.Our Communications EBITDA margin in the first quarter increased from 39.8%in 2024 to 40.5%in 2025.Communicat

221、ions Business Unit DiscussionMobility Results First Quarter Percent 20252024ChangeOperating revenues Service$16,651$15,994 4.1%Equipment4,919 4,600 6.9 Total Operating Revenues21,570 20,594 4.7 Operating expenses Operations and support12,304 11,639 5.7 Depreciation and amortization2,526 2,487 1.6 To

222、tal Operating Expenses14,830 14,126 5.0 Operating Income$6,740$6,468 4.2%27AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsThe following tables highlight other key measures of perf

223、ormance for Mobility:Subscribers March 31,Percent(in 000s)20252024ChangePostpaid89,463 87,450 2.3%Postpaid phone73,031 71,558 2.1 Prepaid 18,955 19,211(1.3)Reseller9,542 7,852 21.5 Total Mobility Subscribers117,960 114,513 3.0%Mobility Net Additions First Quarter Percent(in 000s)20252024ChangePostpa

224、id Phone Net Additions324 349(7.2)%Total Phone Net Additions304 350(13.1)Postpaid290 389(25.4)Prepaid(34)1 Reseller(136)351 Mobility Net Subscriber Additions120 741(83.8)%Postpaid Churn0.99%0.89%10 BPPostpaid Phone-Only Churn0.83%0.72%11 BPExcludes migrations between wireless subscriber categories,i

225、ncluding connected devices,and acquisition-related activity during the period.In addition to postpaid phones,includes tablets and wearables and other.Tablet net adds(losses)were(4)and(12)for the quarters ended March 31,2025 and 2024.Wearables and other net adds(losses)were(30)and 52 for the quarters

226、 ended March 31,2025 and 2024.Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month by the total number of wireless subscribers at the beginning ofthat month.The churn rate for the period is equal to the average of the churn rate for each month of th

227、at period.Service revenue increased in the first quarter of 2025.The increase is largely due to growth from postpaid phone average revenue per subscriber(ARPU)growth and subscriber gains.ARPUARPU increased in the first quarter of 2025,reflecting pricing actions and customers migrating to higher pric

228、ed plans.ChurnThe effective management of subscriber churn is critical to our ability to maximize revenue growth and to maintain and improve margins.Postpaid churnand postpaid phone-only churn were higher in the first quarter of 2025,driven by a normalization of customers reaching the end of their e

229、quipmentpromotional plans and a shift in competitive offers.Equipment revenue increased in the first quarter of 2025,primarily driven by higher wireless device sales volumes.Operations and support expenses increased in the first quarter of 2025,primarily due to higher equipment costs driven by highe

230、r wireless sales volumes.Theincrease also reflected higher advertising due to launch of new campaign,promotion costs and network costs.Depreciation expense increased in the first quarter of 2025,primarily due to ongoing capital spending for network upgrades and expansion,partially offset bylower dep

231、reciation impacts from our network modernization efforts.1213312328AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amounts Operating income increased in the first quarter of 2025.Our Mobi

232、lity operating income margin in the first quarter decreased from 31.4%in 2024 to 31.2%in2025.Our Mobility EBITDA margin in the first quarter decreased from 43.5%in 2024 to 43.0%in 2025.Business Wireline Results First Quarter Percent 20252024ChangeOperating revenues Legacy and other transitional serv

233、ices$2,475$2,997(17.4)%Fiber and advanced connectivity services1,780 1,703 4.5 Equipment213 213 Total Operating Revenues4,468 4,913(9.1)Operating expenses Operations and support3,068 3,487(12.0)Depreciation and amortization1,498 1,362 10.0 Total Operating Expenses4,566 4,849(5.8)Operating Income(Los

234、s)$(98)$64%Legacy and other transitional services revenues decreased in the first quarter of 2025,driven by lower demand for legacy and VPN services,which weexpect to continue.Revenue declines also reflect the absence of revenues from our cybersecurity business that was contributed to LevelBlue in t

235、he secondquarter of 2024.These revenue declines were partially offset by targeted pricing actions.Fiber and advanced connectivity services revenues increased in the first quarter of 2025,driven by higher fiber and fixed wireless revenues.Equipment revenues remained constant in the first quarter of 2

236、025.Operations and support expenses decreased in the first quarter of 2025,primarily driven by lower personnel costs associated with ongoing transformationinitiatives,lower network-related costs that included higher vendor settlements in 2025 and the contribution of our cybersecurity business.As par

237、t of ourtransformation activities,we expect operations and support expense improvements through the remainder of 2025 as we further right size our operations inalignment with the strategic direction of the business.Depreciation expense increased in the first quarter of 2025,primarily due to ongoing

238、capital investment for strategic initiatives such as fiber,which we expectto continue through the remainder of 2025.Operating income decreased in the first quarter of 2025.Our Business Wireline operating income margin in the first quarter decreased from 1.3%in 2024 to(2.2)%in 2025.Our Business Wirel

239、ine EBITDA margin in the first quarter increased from 29.0%in 2024 to 31.3%in 2025.29AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsConsumer Wireline Results First Quarter Percent

240、 20252024ChangeOperating revenues Broadband$2,984$2,722 9.6%Legacy voice and data services286 342(16.4)Other service and equipment252 286(11.9)Total Operating Revenues3,522 3,350 5.1 Operating expenses Operations and support2,224 2,256(1.4)Depreciation and amortization949 881 7.7 Total Operating Exp

241、enses3,173 3,137 1.1 Operating Income$349$213 63.8%The following tables highlight other key measures of performance for Consumer Wireline:Broadband Connections March 31,Percent(in 000s)20252024ChangeBroadband14,112 13,784 2.4%Fiber Broadband Connections9,592 8,559 12.1%Includes AIA.Broadband Net Add

242、itionsFirst QuarterPercent(in 000s)20252024ChangeBroadband Net Additions137 55%Fiber Broadband Net Additions261 252 3.6%Includes AIA.First-quarter 2025 excludes the impact of subscriber disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements.Br

243、oadband revenues increased in the first quarter of 2025,driven by a 19.0%increase in fiber revenues.Higher fiber revenues reflect an increase in fibercustomers,which we expect to continue as we invest further in building our fiber footprint,and higher ARPU.This increase was partially offset by decli

244、nes incopper-based broadband services.Legacy voice and data services revenues decreased in the first quarter of 2025,reflecting the continued decline in demand for these services in favor of othertechnologies,such as wireless and fiber services.Other service and equipment revenues decreased in the f

245、irst quarter of 2025,reflecting the continued decline in the number of VoIP customers.Operations and support expenses decreased in the first quarter of 2025.The expense decrease in the first quarter was primarily driven by lower customersupport costs and network-related costs that included higher ve

246、ndor settlements in 2025.Depreciation expense increased in the first quarter of 2025,primarily due to ongoing capital spending for strategic initiatives such as fiber and networkupgrades and expansion,which we expect to continue through the remainder of 2025.111,21230AT&T INC.MARCH 31,2025 Item 2.Ma

247、nagements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsOperating income increased in the first quarter of 2025.Our Consumer Wireline operating income margin in the first quarter increased from 6.4%in 2024 to9.9%in 2025.

248、Our Consumer Wireline EBITDA margin in the first quarter increased from 32.7%in 2024 to 36.9%in 2025.LATIN AMERICA SEGMENTFirst Quarter 20252024Percent ChangeSegment Operating Revenues Service$615$690(10.9)%Equipment356 373(4.6)Total Segment Operating Revenues971 1,063(8.7)Segment Operating Expenses

249、Operations and support778 883(11.9)Depreciation and amortization150 177(15.3)Total Segment Operating Expenses928 1,060(12.5)Operating Income$43$3%The following tables highlight other key measures of performance for Mexico:Subscribers March 31,Percent(in 000s)20252024ChangePostpaid5,997 5,352 12.1%Pr

250、epaid17,376 16,742 3.8 Reseller235 365(35.6)Total Mexico Wireless Subscribers23,608 22,459 5.1%Mexico Wireless Net Additions First Quarter Percent(in 000s)20252024ChangePostpaid160 116 37.9%Prepaid(110)79 Reseller(18)(52)65.4 Total Mexico Wireless Net Additions32 143(77.6)%Service revenues decreased

251、 in the first quarter of 2025,reflecting unfavorable foreign exchange impacts,partially offset by growth in subscribers and ARPU.Equipment revenues decreased in the first quarter of 2025,reflecting unfavorable foreign exchange impacts,partially offset by higher equipment sales.Operations and support

252、 expenses decreased in the first quarter of 2025,primarily due to favorable foreign exchange impacts,partially offset by increasedequipment and selling costs resulting from higher sales.Depreciation and amortization expense decreased in the first quarter of 2025,primarily due to favorable foreign ex

253、change impacts.31AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsOperating income improved in the first quarter of 2025.Our Mexico operating income margin in the first quarter incr

254、eased from 0.3%in 2024 to 4.4%in2025.Our Mexico EBITDA margin in the first quarter increased from 16.9%in 2024 to 19.9%in 2025.COMPETITIVE AND REGULATORY ENVIRONMENT Overview AT&T subsidiaries operating within the United States are subject to federal and state regulations.AT&T subsidiaries operating

255、 outside the UnitedStates are subject to the jurisdiction of national and supranational regulations in the markets where service is provided.Complying with these regulations mayaffect our results of operations and cash flow,and compliance may be very costly.For a discussion of these regulations,plea

256、se see“Managements Discussionand Analysis of Financial Condition and Results of OperationRegulatory Landscape”in our Annual Report on Form 10-K for the year-ended December 31,2024.LIQUIDITY AND CAPITAL RESOURCES For three months ended March 31,20252024Cash provided by operating activities$9,049$7,54

257、7 Cash used in investing activities(4,958)(2,961)Cash used in financing activities(553)(7,815)March 31,December 31,20252024Cash and cash equivalents$6,885$3,298 Total debt126,161 123,532 We had$6,885 in cash and cash equivalents available at March 31,2025,increasing$3,587 since December 31,2024.Cash

258、 and cash equivalents included cashof$1,122 and money market funds and other cash equivalents of$5,763.Approximately$1,159 of our cash and cash equivalents were held in accounts outsideof the U.S.and may be subject to restrictions on repatriation.For the first three months of 2025,cash inflows were

259、primarily provided by cash receipts from operations,including cash from our sale and transfer of ourreceivables to third parties,and distributions from DIRECTV.These inflows exceeded cash used to meet the needs of the business,including,but not limited to,payment of operating expenses,including high

260、er device payments from higher sales volumes.The cash generated from operating activities was primarily usedto repay long-term debt,make dividend payments to stockholders and to fund capital improvements.We maintain availability under our credit facilities and ourcommercial paper program to meet our

261、 short-term liquidity requirements.Cash Provided by Operating ActivitiesDuring the first three months of 2025,cash provided by operating activities was$9,049,compared to$7,547 for the first three months of 2024,with increasesresulting from higher cash flows related to DIRECTV,including a first-quart

262、er 2025 dividend of$1,138,and operational growth.We actively manage the timing of our supplier payments for operating items to optimize the use of our cash.Among other things,we seek to make payments on90-day or greater terms,while providing the suppliers with access to bank facilities that permit e

263、arlier payments at their cost(referred to as supplier financingprogram).In addition,for payments to suppliers of handset inventory,as part of our working capital initiatives,we have arrangements that allow us to extendthe stated payment terms by up to 90 days at an additional cost to us(referred to

264、as direct supplier financing).The net impact of direct supplier financing,including principal and interest payments,was to decrease cash from operating activities approximately$2,042 and$1,584 for the three months endedMarch 31,2025 and 2024,respectively.All supplier financing payments are due withi

265、n one year.(See Note 10)32AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsCash Used in Investing ActivitiesFor the first three months of 2025,cash used in investing activities tota

266、led$4,958 and consisted primarily of$4,277(including interest during construction)forcapital expenditures.During the first three months of 2025,investing activities also included$95 of FirstNet sustainability payments net of reinvestment,andapproximately$560 for our investment in a new strategic par

267、tner related to wireline network transformation accounted for under the equity method ofaccounting.We enter into multi-year software licensing arrangements,which are typically paid over the license terms of two to five years and referred to as vendorfinancing.Additionally,for capital improvements,we

268、 have negotiated favorable vendor payment terms of 120 days or more with some of our vendors,whichare also referred to as vendor financing.Vendor financing is excluded from capital expenditures and reported as financing activities.For the first three monthsof 2025,vendor financing payments were$203,

269、compared to$841 for the first three months of 2024.Capital expenditures for the first three months of 2025were$4,277,and when including$203 cash paid for vendor financing,capital investment was$4,480($119 lower than the prior-year comparable period).The vast majority of our capital expenditures are

270、spent on our networks,including product development and related support systems.During the first threemonths of 2025,we placed$378 of productive assets(primarily software)in service under vendor financing arrangements(compared to$99 in the prior-yearcomparable period).The amount of capital expenditu

271、res is influenced by demand for services and products,capacity needs and network enhancements.Cash Provided by or Used in Financing ActivitiesFor the first three months of 2025,cash used in financing activities totaled$553 and was primarily comprised of debt repayments,dividend payments,preferred st

272、ock repurchase and vendor financing payments,offset by issuances of long-term debt and preferred interests.A tabular summary of our debt activities for the three months ended March 31,2025 is as follows:Three months endedMarch 31,2025Issuance of Notes and Debentures:EUR notes2,956 Debt Issuances$2,9

273、56 RepaymentsEUR notes1,321 Other205 Repayments of long-term debt$1,526 The weighted average interest rate of our long-term debt portfolio,including credit agreement borrowings and the impact of derivatives,was approximately4.2%as of March 31,2025 and as of December 31,2024.We had$124,790 of total n

274、otes and debentures outstanding at March 31,2025.This also includedEuro,British pound sterling,Canadian dollar,Swiss franc and Australian dollar denominated debt that totaled approximately$33,474.At March 31,2025,we had$8,902 of long-term debt maturing within one year.We had no outstanding commercia

275、l paper or other short-term borrowings onMarch 31,2025.For the first three months of 2025,we paid$203 of cash under our vendor financing program,compared to$841 in the prior-year comparable period.Totalvendor financing payables included in our March 31,2025 consolidated balance sheet were$1,694,with

276、$1,078 due within one year(in“Accounts payable andaccrued liabilities”)and the remainder predominantly due within five years(in“Other noncurrent liabilities”).At March 31,2025,we had approximately$10,000 remaining from our common stock repurchase authorization approved by the Board of Directors inDe

277、cember 2024.We paid dividends on common and preferred shares of$2,091 during the first three months of 2025,compared with$2,034 for the first three months of 2024.33AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in

278、millions except per share amountsDividends on common stock declared by our Board of Directors totaled$0.2775 per share in the first three months of 2025 and 2024.Our dividend policyconsiders the expectations and requirements of stockholders,capital funding requirements of AT&T and long-term growth o

279、pportunities.Financing activities in the first three months of 2025 also included the issuance of$2,250 of nonconvertible cumulative preferred interests in Telco LLC,withthe funds used to redeem all outstanding Series B preferred stock for$2,075(see Note 11).We also received approximately$850 in upf

280、ront cash proceeds froma structured sale-leaseback of real estate.Credit FacilitiesThe following summary of our various credit and loan agreements does not purport to be complete and is qualified in its entirety by reference to eachagreement filed as exhibits to our Annual Report on Form 10-K.We use

281、 credit facilities as a tool in managing our liquidity status.We currently have one$12,000 revolving credit agreement that terminates on November 18,2029(Revolving Credit Agreement).No amount was outstanding under the Revolving Credit Agreement as of March 31,2025.We also utilize other external fina

282、ncing sources,which include various credit arrangements supported by government agencies to support network equipmentpurchases as well as a commercial paper program.Our Revolving Credit Agreement contains covenants that are customary for an issuer with investment grade senior debt credit rating as w

283、ell as a net debt-to-EBITDA financial ratio covenant requiring AT&T to maintain,as of the last day of each fiscal quarter,a ratio of not more than 3.75-to-1.As of March 31,2025,we were in compliance with the covenants for our credit facilities.Collateral ArrangementsMost of our counterparty collater

284、al arrangements require cash collateral posting by AT&T only when derivative market values exceed certain thresholds.Underthese arrangements,which cover the majority of our approximate$36,532 derivative portfolio,counterparties are still required to post collateral.During thefirst three months of 20

285、25,we posted$8 of cash collateral,on a net basis.Cash postings under these arrangements vary with changes in credit ratings andnetting agreements.(See Note 7)OtherOur total capital consists of debt(long-term debt and debt maturing within one year),redeemable noncontrolling interest and stockholders

286、equity.Our capitalstructure does not include debt issued by our equity method investments.At March 31,2025,our debt ratio was 50.9%,compared to 52.4%at March 31,2024and 50.7%at December 31,2024.The debt ratio is affected by the same factors that affect total capital,and reflects our recent debt issu

287、ances,repayments andreclassifications related to redemption of noncontrolling interests.34AT&T INC.MARCH 31,2025 Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations-ContinuedDollars in millions except per share amountsDISCUSSION AND RECONCILIATION OF NON-GAAP

288、MEASURESWe also evaluate segment and business unit performance based on EBITDA,which is defined as operating income excluding depreciation and amortization,and/or EBITDA margin,which is defined as EBITDA divided by total revenue.EBITDA is used as part of our management reporting,and we believe EBITD

289、Ato be a relevant and useful measurement to our investors as it measures the cash generation potential of our business units.EBITDA does not give effect todepreciation and amortization expenses incurred in operating income nor is it burdened by cash used for debt service requirements and thus does n

290、ot reflectavailable funds for distributions,reinvestment or other discretionary uses.There are material limitations to using these non-GAAP financial measures.EBITDAand EBITDA margin,as we have defined them,may not be comparable to similarly titled measures reported by other companies.First QuarterP

291、ercent20252024ChangeCommunications SegmentOperating income$6,991$6,745 3.6%Add:Depreciation and amortization expense4,973 4,730 5.1 EBITDA$11,964$11,475 4.3%Operating income margin23.7%23.4%EBITDA margin40.5%39.8%MobilityOperating income$6,740$6,468 4.2%Add:Depreciation and amortization expense2,526

292、 2,487 1.6 EBITDA$9,266$8,955 3.5%Operating income margin31.2%31.4%EBITDA margin43.0%43.5%Business WirelineOperating income(loss)$(98)$64%Add:Depreciation and amortization expense1,498 1,362 10.0 EBITDA$1,400$1,426(1.8)%Operating income margin(2.2)%1.3%EBITDA margin31.3%29.0%Consumer WirelineOperati

293、ng income$349$213 63.8%Add:Depreciation and amortization expense949 881 7.7 EBITDA$1,298$1,094 18.6%Operating income margin9.9%6.4%EBITDA margin36.9%32.7%Latin America SegmentOperating income$43$3%Add:Depreciation and amortization expense150 177(15.3)EBITDA$193$180 7.2%Operating income margin4.4%0.3

294、%EBITDA margin19.9%16.9%35AT&T INC.MARCH 31,2025Item 3.Quantitative and Qualitative Disclosures About Market RiskAt March 31,2025,we had no interest rate swaps.We have fixed-to-fixed cross-currency swaps on foreign currency-denominated debt instruments with a U.S.dollar notional value of$36,532 to h

295、edge ourexposure to changes in foreign currency exchange rates and interest rates.These derivatives have been designated as fair value hedges with a net fair value of$(3,753)at March 31,2025.Item 4.Controls and ProceduresThe registrant maintains disclosure controls and procedures that are designed t

296、o ensure that information required to be disclosed by the registrant is recorded,processed,summarized,accumulated and communicated to its management,including its principal executive and principal financial officers,to allow timelydecisions regarding required disclosure,and reported within the time

297、periods specified in the SECs rules and forms.The Chief Executive Officer and ChiefFinancial Officer have performed an evaluation of the effectiveness of the design and operation of the registrants disclosure controls and procedures as ofMarch 31,2025.Based on that evaluation,the Chief Executive Off

298、icer and Chief Financial Officer concluded that the registrants disclosure controls andprocedures were effective as of March 31,2025.There have not been any changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected,or arereasonably l

299、ikely to materially affect,our internal control over financial reporting.36AT&T INC.MARCH 31,2025CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTSInformation set forth in this report contains forward-looking statements that are subject to risks and uncertainties,and actual results could diff

300、er materially.Many of these factors are discussed in more detail in the“Risk Factors”section herein and in our most recent Form 10-K.We claim the protection of the safeharbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.The following factors could c

301、ause our future results to differ materially from those expressed in the forward-looking statements:Adverse economic and political changes,public health emergencies and our ability to access financial markets on favorable terms.Increases in our benefit plans costs,including due to worse-than-assumed

302、 investment returns and discount rates,mortality assumptions,medical costtrends,or healthcare laws or regulations.The final outcome of FCC and other federal,state or foreign government agency proceedings(including judicial review of such proceedings)andlegislative and regulatory efforts involving is

303、sues important to our business,including,without limitation,pending Notices of Apparent Liability;thetransition from legacy technologies to IP-based infrastructure,including the withdrawal of legacy TDM-based services;universal service;broadbanddeployment;wireless equipment siting regulations;E911 s

304、ervices;rules concerning digital discrimination;competition policy;privacy;net neutrality;copyright protection;availability of new spectrum on fair and reasonable terms;and wireless and satellite license awards and renewals,and our response tosuch legislative and regulatory efforts.Enactment of or c

305、hanges to state,local,federal and/or foreign tax laws and regulations,and actions by tax agencies and judicial authorities,and theresolution of disputes with any taxing jurisdictions,pertaining to our subsidiaries and foreign investments.U.S.and foreign laws and regulations regarding intellectual pr

306、operty rights protection and privacy,personal data protection and user consent,which arerapidly evolving.Our ability to compete in an increasingly competitive industry and against competitors that can offer product/service offerings at lower prices due to lowercost structures and regulatory and legi

307、slative actions adverse to us,including non-regulation of comparable alternative technologies and/or government-owned or subsidized networks,and our response to such competition and emerging technologies.Disruptions in our supply chain that have a material impact on our ability to acquire needed goo

308、ds and services.The development and delivery of attractive and profitable wireless and broadband offerings and devices,including our ability to match speeds offered bycompetitors;and the availability,cost and/or reliability of technologies required to provide such offerings.Our ability to adequately

309、 fund additional wireless spectrum and network development,deployment and maintenance;and regulations and conditionsrelating to spectrum use,licensing,obtaining additional spectrum,technical standards and deployment and usage,including network management rules.Our ability to manage growth in wireles

310、s data services,including network quality.The outcome of pending,threatened or potential litigation and arbitration.The impact from major equipment,software or other failures or errors that disrupt our networks or cyber incidents;the effect of security breaches relatedto the network or customer info

311、rmation;our inability to obtain handsets,equipment/software or have handsets,equipment/software serviced in a timelyand cost-effective manner from suppliers;severe weather conditions or other natural disasters including earthquakes and forest fires;public healthemergencies;energy shortages;or wars o

312、r terrorist attacks.The issuance by the FASB or other accounting oversight bodies of new or revised accounting standards.The imposition of tariffs and their duration and uncertainty surrounding further tariffs and congressional action regarding spending and taxation,whichmay result in changes in gov

313、ernment spending and affect the ability and willingness of businesses and consumers to spend in general.Our ability to realize or sustain the expected benefits of our business transformation initiatives,which are designed to reduce costs,enable legacyrationalization,streamline distribution,remove re

314、dundancies and simplify and improve processes and support functions.Our ability to successfully complete divestitures,as well as achieve our expectations regarding the financial impact of completed and/or pendingtransactions.Readers are cautioned that other factors discussed in this report and in ou

315、r most recent Form 10-K,although not enumerated here,also could materially affectour future earnings.37AT&T INC.MARCH 31,2025PART II OTHER INFORMATIONDollars in millions except per share amountsItem 1A.Risk FactorsWe discuss in our Annual Report on Form 10-K for the year ended December 31,2024 vario

316、us risks that may materially affect our business.We use this sectionto update this discussion to reflect material developments.For the first quarter of 2025,there were no such material developments.Item 2.Unregistered Sales of Equity Securities and Use of Proceeds(c)A summary of our repurchases of c

317、ommon stock during the first quarter of 2025 is as follows:(a)(b)(c)(d)PeriodTotal Number ofShares(or Units)PurchasedAverage Price PaidPer Share(or Unit)Total Number ofShares(or Units)Purchased as Partof PubliclyAnnounced Plansor ProgramsMaximum Number(or ApproximateDollar Value)ofShares(or Units)Th

318、at May Yet BePurchased UnderThe Plans orProgramsJanuary 1,2025-January 31,2025666,015$21.84$10,000 February 1,2025-February 28,20254,829,778 25.51$10,000 March 1,2025-March 31,20253,080,033 26.21$10,000 Total8,575,826$25.47 In December 2024,our Board of Directors approved,and we announced,an authori

319、zation to repurchase up to$10,000 of common stock.The December 2024 authorizationhas no expiration date.These shares were acquired through the withholding of taxes on the vesting of restricted stock and performance shares or in respect of the exercise price of options.Item 5.Other Information(c)Duri

320、ng the quarter ended March 31,2025,no director or officer(as defined in Rule 16a-1(f)of the Company adopted or terminated a contract,instructionor written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c)and/or a non-R

321、ule 10b5-1 trading arrangement.1,211238AT&T INC.MARCH 31,2025Item 6.ExhibitsThe following exhibits are filed or incorporated by reference as a part of this report:Exhibit NumberExhibit Description31Rule 13a-14(a)/15d-14(a)Certifications 31.1 Certification of Principal Executive Officer 31.2 Certific

322、ation of Principal Financial Officer32Section 1350 Certifications101The following financial statements from the Companys Quarterly Report on Form 10-Q for the quarter ended March 31,2025,formatted inInline XBRL:(i)Consolidated Statements of Cash Flows,(ii)Consolidated Statements of Operations,(iii)C

323、onsolidated Statements ofComprehensive Income,(iv)Consolidated Balance Sheets,and(v)Notes to Consolidated Financial Statements,tagged as blocks of text andincluding detailed tags.104The cover page from the Companys Quarterly Report on Form 10-Q for the quarter ended March 31,2025,(formatted as Inlin

324、e XBRL andcontained in Exhibit 101).39SIGNATUREPursuant to the requirements of the Securities Exchange Act of 1934,the registrant has duly caused this report to be signed on its behalf by the undersignedthereunto duly authorized.AT&T Inc.April 29,2025/s/Pascal DesrochesPascal DesrochesSenior Executi

325、ve Vice President and Chief Financial Officer40Exhibit 31.1CERTIFICATION I,John T.Stankey,certify that:1.I have reviewed this report on Form 10-Q of AT&T Inc.;2.Based on my knowledge,this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to ma

326、ke thestatements made,in light of the circumstances under which such statements were made,not misleading with respect to the period covered by this report;3.Based on my knowledge,the financial statements,and other financial information included in this report,fairly present in all material respects

327、the financialcondition,results of operations and cash flows of the registrant as of,and for,the periods presented in this report;4.The registrants other certifying officer(s)and I are responsible for establishing and maintaining disclosure controls and procedures(as defined inExchange Act Rules 13a-

328、15(e)and 15d-15(e)and internal control over financial reporting(as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)forthe registrant and have:a)Designed such disclosure controls and procedures,or caused such disclosure controls and procedures to be designed under our supervision,to ensurethat ma

329、terial information relating to the registrant,including its consolidated subsidiaries,is made known to us by others within those entities,particularly during the period in which this report is being prepared;b)Designed such internal control over financial reporting,or caused such internal control ov

330、er financial reporting to be designed under our supervision,to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;c)Evaluated the effectiveness of t

331、he registrants disclosure controls and procedures and presented in this report our conclusions about the effectivenessof the disclosure controls and procedures,as of the end of the period covered by this report based on such evaluation;andd)Disclosed in this report any change in the registrants inte

332、rnal control over financial reporting that occurred during the registrants most recent fiscalquarter(the registrants fourth fiscal quarter in the case of an annual report)that has materially affected,or is reasonably likely to materially affect,theregistrants internal control over financial reportin

333、g;and 5.The registrants other certifying officer(s)and I have disclosed,based on our most recent evaluation of internal control over financial reporting,to theregistrants auditors and the audit committee of the registrants board of directors(or persons performing the equivalent functions):a)All significant deficiencies and material weaknesses in the design or operation of internal control over fin