AT&T INC. (Form: 8-K, Received: 01/30/2019 06:47:55)

EXHIBIT 99.1

AT&T Inc.
Financial Data


Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Fourth Quarter				Percent		Year Ended				Percent
		2018		2017	Change			2018		2017	Change
Operating Revenues
Service	$	42,496	$	36,225	17.3	%	$	152,345	$	145,597	4.6	%
Equipment		5,497		5,451	0.8	%		18,411		14,949	23.2	%
Total Operating Revenues		47,993		41,676	15.2	%		170,756		160,546	6.4	%

Operating Expenses
Cost of revenues
Equipment		5,733		6,532	(12.2)	%		19,786		18,709	5.8	%
Broadcast, programming and operations		8,885		6,003	48.0	%		26,727		21,159	26.3	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)		8,691		9,391	(7.5)	%		32,906		37,942	(13.3)	%
Selling, general and administrative		10,586		9,484	11.6	%		36,765		35,465	3.7	%
Asset abandonment and impairments		46		2,914	(98.4)	%		46		2,914	(98.4)	%
Depreciation and amortization		7,892		6,071	30.0	%		28,430		24,387	16.6	%
Total Operating Expenses		41,833		40,395	3.6	%		144,660		140,576	2.9	%
Operating Income		6,160		1,281	-	%		26,096		19,970	30.7	%
Interest Expense		(2,112)		(1,926)	9.7	%		(7,957)		(6,300)	26.3	%
Equity in Net Income (Loss) of Affiliates		23		20	15.0	%		(48)		(128)	62.5	%
Other Income (Expense) - Net		1,674		(658)	-	%		6,782		1,597	-	%
Income (Loss) Before Income Taxes		5,745		(1,283)	-	%		24,873		15,139	64.3	%
Income Tax (Benefit) Expense		615		(20,419)	-	%		4,920		(14,708)	-	%
Net Income		5,130		19,136	(73.2)	%		19,953		29,847	(33.1)	%
Less: Net Income Attributable to Noncontrolling Interest		(272)		(99)	-	%		(583)		(397)	(46.9)	%
Net Income Attributable to AT&T	$	4,858	$	19,037	(74.5)	%	$	19,370	$	29,450	(34.2)	%


Basic Earnings Per Share Attributable to AT&T	$	0.66	$	3.08	(78.6)	%	$	2.85	$	4.77	(40.3)	%
Weighted Average Common Shares Outstanding (000,000)		7,296		6,163	18.4	%		6,778		6,164	10.0	%

Diluted Earnings Per Share Attributable to AT&T	$	0.66	$	3.08	(78.6)	%	$	2.85	$	4.76	(40.1)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		7,328		6,182	18.5	%		6,806		6,183	10.1	%

AT&T Inc.
Financial Data


Consolidated Balance Sheets
Dollars in millions
Unaudited		Dec. 31,		Dec. 31,
		2018		2017
Assets
Current Assets
Cash and cash equivalents	$	5,204	$	50,498
Accounts receivable - net of allowances for doubtful accounts of $907 and $663		26,472		16,522
Prepaid expenses		2,047		1,369
Other current assets		17,704		10,757
Total current assets		51,427		79,146
Noncurrent Inventories and Theatrical Film and Television Production Costs		7,713		-
Property, Plant and Equipment – Net		131,473		125,222
Goodwill		146,370		105,449
Licenses		96,144		96,136
Trademarks and Trade Names - Net		24,345		7,021
Distribution Networks - Net		17,069		-
Other Intangible Assets – Net		26,269		11,119
Investments in and Advances to Equity Affiliates		6,245		1,560
Other Assets		24,809		18,444
Total Assets	$	531,864	$	444,097

Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	10,255	$	38,374
Accounts payable and accrued liabilities		43,184		34,470
Advanced billings and customer deposits		5,948		4,213
Accrued taxes		1,179		1,262
Dividends payable		3,854		3,070
Total current liabilities		64,420		81,389
Long-Term Debt		166,250		125,972
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		57,859		43,207
Postemployment benefit obligation		19,218		31,775
Other noncurrent liabilities		30,233		19,747
Total deferred credits and other noncurrent liabilities		107,310		94,729
Stockholders’ Equity
Common stock		7,621		6,495
Additional paid-in capital		125,525		89,563
Retained earnings		58,753		50,500
Treasury stock		(12,059)		(12,714)
Accumulated other comprehensive income		4,249		7,017
Noncontrolling interest		9,795		1,146
Total stockholders’ equity		193,884		142,007
Total Liabilities and Stockholders' Equity	$	531,864	$	444,097

AT&T Inc.
Financial Data


Consolidated Statements of Cash Flows
Dollars in millions
Unaudited		Year Ended
			2018		2017
Operating Activities
Net income		$	19,953	$	29,847
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization		28,430		24,387
	Amortization of film and television costs		3,772		-
	Undistributed earnings from investments in equity affiliates		292		174
	Provision for uncollectible accounts		1,791		1,642
	Deferred income tax expense (benefit)		610		(15,940)
	Net (gain) loss from sale of investments, net of impairments		(739)		(282)
	Actuarial (gain) loss on pension and postretirement benefits		(3,412)		1,258
	Asset abandonments and impairments		46		2,914
Changes in operating assets and liabilities:
	Accounts receivable		(1,244)		(986)
	Other current assets, inventories and theatrical film and television production costs		(6,442)		(778)
	Accounts payable and other accrued liabilities		1,602		816
	Equipment installment receivables and related sales		(490)		(1,239)
	Deferred customer contract acquisition and fulfillment costs		(3,458)		(1,422)
Retirement benefit funding			(500)		(1,066)
Other - net			3,391		(1,315)
Total adjustments			23,649		8,163
Net Cash Provided by Operating Activities			43,602		38,010

Investing Activities
Capital expenditures:
	Purchase of property and equipment		(20,758)		(20,647)
	Interest during construction		(493)		(903)
Acquisitions, net of cash acquired			(43,309)		1,123
Dispositions			2,148		59
(Purchases) sales of securities, net			(185)		449
Advances to and investments in equity affiliates, net			(1,050)		-
Cash collections of deferred purchase price			500		976
Other			2		-
Net Cash Used in Investing Activities			(63,145)		(18,943)

Financing Activities
Net change in short-term borrowings with original maturities of three months or less			(821)		(2)
Issuance of other short-term borrowings			4,898		-
Repayment of other short-term borrowings			(2,098)		-
Issuance of long-term debt			41,875		48,793
Repayment of long-term debt			(52,643)		(12,339)
Purchase of treasury stock			(609)		(463)
Issuance of treasury stock			745		33
Dividends paid			(13,410)		(12,038)
Other			(3,926)		1,946
Net Cash (Used in) Provided by Financing Activities			(25,989)		25,930
Net (decrease) increase in cash and cash equivalents and restricted cash			(45,532)		44,997
Cash and cash equivalents and restricted cash beginning of year			50,932		5,935
Cash and Cash Equivalents and Restricted Cash End of Year		$	5,400	$	50,932

AT&T Inc.
Consolidated Supplementary Data


Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited		Fourth Quarter				Percent		Year Ended					Percent
			2018		2017	Change			2018		2017		Change
Capital expenditures
	Purchase of property and equipment	$	4,063	$	4,891	(16.9)	%	$	20,758	$	20,647		0.5	%
	Interest during construction		89		185	(51.9)	%		493		903		(45.4)	%
Total Capital Expenditures		$	4,152	$	5,076	(18.2)	%	$	21,251	$	21,550		(1.4)	%

Dividends Declared per Share		$	0.51	$	0.50	2.0	%	$	2.01	$	1.97		2.0	%

End of Period Common Shares Outstanding (000,000)									7,282		6,139		18.6	%
Debt Ratio									47.7	%	53.6	%	(590)	BP
Total Employees									268,220		254,000		5.6	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited								Year Ended					Percent
									2018		2017		Change
Wireless Subscribers
	Domestic								153,006		141,202		8.4	%
	Mexico								18,321		15,099		21.3	%
Total Wireless Subscribers									171,327		156,301		9.6	%

Total Branded Wireless Subscribers									111,958		107,740		3.9	%

Video Connections
	Domestic								24,517		25,270		(3.0)	%
	Latin America								13,838		13,629		1.5	%
Total Video Connections									38,355		38,899		(1.4)	%

Broadband Connections
	IP								14,751		14,487		1.8	%
	DSL								950		1,232		(22.9)	%
Total Broadband Connections									15,701		15,719		(0.1)	%

Voice Connections
	Network Access Lines								10,002		11,753		(14.9)	%
	U-verse VoIP Connections								5,114		5,682		(10.0)	%
Total Retail Voice Connections									15,116		17,435		(13.3)	%



		Fourth Quarter				Percent		Year Ended					Percent
			2018		2017	Change			2018		2017		Change
Wireless Net Additions
	Domestic		2,753		2,757	(0.1)	%		11,810		9,474		24.7	%
	Mexico		1,016		1,320	(23.0)	%		3,222		3,126		3.1	%
Total Wireless Net Additions			3,769		4,077	(7.6)	%		15,032		12,600		19.3	%

Total Branded Wireless Net Additions			1,016		2,046	(50.3)	%		4,367		4,858		(10.1)	%

Video Net Additions
	Domestic		(660)		159	-	%		(753)		(291)		-	%
	Latin America		198		139	42.4	%		250		42		-	%
Total Video Net Additions			(462)		298	-	%		(503)		(249)		-	%

Broadband Net Additions
	IP		7		103	(93.2)	%		264		623		(57.6)	%
	DSL		(53)		(99)	46.5	%		(282)		(509)		44.6	%
Total Broadband Net Additions			(46)		4	-	%		(18)		114		-	%

COMMUNICATIONS SEGMENT

The Communications segment provides wireless and wireline telecom, video and broadband services to consumers located in the U.S. or in U.S. territories and businesses globally. The Communications segment contains three reporting units: Mobility, Entertainment Group, and Business Wireline.

Segment Results
Dollars in millions
Unaudited		Fourth Quarter				Percent		Year Ended				Percent
			2018		2017	Change			2018		2017	Change
Segment Operating Revenues
	Mobility	$	18,769	$	19,168	(2.1)	%	$	71,344	$	71,090	0.4	%
	Entertainment Group		11,962		12,560	(4.8)	%		46,460		49,995	(7.1)	%
	Business Wireline		6,727		7,382	(8.9)	%		26,827		29,293	(8.4)	%
Total Segment Operating Revenues			37,458		39,110	(4.2)	%		144,631		150,378	(3.8)	%

Segment Operating Contribution
	Mobility		5,455		4,275	27.6	%		21,722		20,204	7.5	%
	Entertainment Group		825		1,001	(17.6)	%		4,713		5,471	(13.9)	%
	Business Wireline		1,359		1,588	(14.4)	%		5,827		6,010	(3.0)	%
Total Segment Operating Contribution		$	7,639	$	6,864	11.3	%	$	32,262	$	31,685	1.8	%

Mobility
Mobility provides nationwide wireless service and equipment.


Mobility Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Service	$	13,859	$	14,282		(3.0)	%	$	54,933	$	57,696		(4.8)	%
	Equipment		4,910		4,886		0.5	%		16,411		13,394		22.5	%
Total Operating Revenues			18,769		19,168		(2.1)	%		71,344		71,090		0.4	%

Operating Expenses
Operations and support			11,246		12,866		(12.6)	%		41,266		42,871		(3.7)	%
Depreciation and amortization			2,068		2,027		2.0	%		8,355		8,015		4.2	%
Total Operating Expenses			13,314		14,893		(10.6)	%		49,621		50,886		(2.5)	%
Operating Income			5,455		4,275		27.6	%		21,723		20,204		7.5	%
Equity in Net Income (Loss) of Affiliates			-		-		-	%		(1)		-		-	%
Operating Contribution		$	5,455	$	4,275		27.6	%	$	21,722	$	20,204		7.5	%

Operating Income Margin			29.1	%	22.3	%	680	BP		30.4	%	28.4	%	200	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									Year Ended					Percent
										2018		2017		Change
Mobility Subscribers
	Postpaid									76,889		77,510		(0.8)	%
	Prepaid									17,000		15,335		10.9	%
Branded										93,889		92,845		1.1	%
Reseller										7,782		9,366		(16.9)	%
Connected Devices										51,335		38,991		31.7	%
Total Mobility Subscribers										153,006		141,202		8.4	%


		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Mobility Net Additions
	Postpaid		13		558		(97.7)	%		(97)		641		-	%
	Prepaid		26		140		(81.4)	%		1,290		1,013		27.3	%
Branded			39		698		(94.4)	%		1,193		1,654		(27.9)	%
Reseller			(438)		(530)		17.4	%		(1,704)		(1,871)		8.9	%
Connected Devices			3,152		2,589		21.7	%		12,321		9,691		27.1	%
Total Mobility Net Additions			2,753		2,757		(0.1)	%		11,810		9,474		24.7	%

Branded Churn			1.82	%	1.75	%	7	BP		1.67	%	1.68	%	(1)	BP
Postpaid Churn			1.24	%	1.11	%	13	BP		1.12	%	1.07	%	5	BP
Postpaid Phone-Only Churn			1.00	%	0.89	%	11	BP		0.90	%	0.85	%	5	BP

Entertainment Group

Entertainment Group provides video, including over-the-top (OTT) services, broadband and voice communication services primarily to residential customers. This business unit also sells advertising on DIRECTV and U-verse distribution platforms.


Entertainment Group Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Video entertainment	$	8,676	$	9,200		(5.7)	%	$	33,357	$	36,167		(7.8)	%
	High-speed internet		2,052		1,890		8.6	%		7,956		7,674		3.7	%
	Legacy voice and data services		724		878		(17.5)	%		3,041		3,767		(19.3)	%
	Other service and equipment		510		592		(13.9)	%		2,106		2,387		(11.8)	%
Total Operating Revenues			11,962		12,560		(4.8)	%		46,460		49,995		(7.1)	%

Operating Expenses
Operations and support			9,807		10,192		(3.8)	%		36,430		38,903		(6.4)	%
Depreciation and amortization			1,329		1,367		(2.8)	%		5,315		5,621		(5.4)	%
Total Operating Expenses			11,136		11,559		(3.7)	%		41,745		44,524		(6.2)	%
Operating Income			826		1,001		(17.5)	%		4,715		5,471		(13.8)	%
Equity in Net Income (Loss) of Affiliates			(1)		-		-	%		(2)		-		-	%
Operating Contribution		$	825	$	1,001		(17.6)	%	$	4,713	$	5,471		(13.9)	%

Operating Income Margin			6.9	%	8.0	%	(110)	BP		10.1	%	10.9	%	(80)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									Year Ended					Percent
										2018		2017		Change
Video Connections
	Satellite									19,222		20,458		(6.0)	%
	U-verse									3,681		3,631		1.4	%
	DIRECTV NOW									1,591		1,155		37.7	%
Total Video Connections										24,494		25,244		(3.0)	%

Broadband Connections
	IP									13,729		13,462		2.0	%
	DSL									680		888		(23.4)	%
Total Broadband Connections										14,409		14,350		0.4	%

Voice Connections
	Retail Consumer Switched Access Lines									3,967		4,774		(16.9)	%
	U-verse Consumer VoIP Connections									4,582		5,222		(12.3)	%
Total Retail Consumer Voice Connections										8,549		9,996		(14.5)	%



		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Video Net Additions ¹
	Satellite		(403)		(147)		-	%		(1,236)		(554)		-	%
	U-verse		12		(60)		-	%		50		(622)		-	%
	DIRECTV NOW		(267)		368		-	%		436		888		(50.9)	%
Total Video Net Additions			(658)		161		-	%		(750)		(288)		-	%

Broadband Net Additions
	IP		6		95		(93.7)	%		267		574		(53.5)	%
	DSL		(38)		(76)		50.0	%		(208)		(403)		48.4	%
Total Broadband Net Additions			(32)		19		-	%		59		171		(65.5)	%
	¹ Includes the impact of customers that migrated to DIRECTV NOW.

Business Wireline

Business Wireline unit provides advanced IP-based services, as well as traditional data services to business customers.

Business Wireline Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Strategic services	$	3,142	$	3,070		2.3	%	$	12,310	$	11,950		3.0	%
	Legacy voice and data services		2,521		3,251		(22.5)	%		10,697		13,565		(21.1)	%
	Other service and equipment		1,064		1,061		0.3	%		3,820		3,778		1.1	%
Total Operating Revenues			6,727		7,382		(8.9)	%		26,827		29,293		(8.4)	%

Operating Expenses
Operations and support			4,161		4,586		(9.3)	%		16,245		18,492		(12.2)	%
Depreciation and amortization			1,207		1,206		0.1	%		4,754		4,789		(0.7)	%
Total Operating Expenses			5,368		5,792		(7.3)	%		20,999		23,281		(9.8)	%
Operating Income			1,359		1,590		(14.5)	%		5,828		6,012		(3.1)	%
Equity in Net Income (Loss) of Affiliates			-		(2)		-	%		(1)		(2)		50.0	%
Operating Contribution		$	1,359	$	1,588		(14.4)	%	$	5,827	$	6,010		(3.0)	%

Operating Income Margin			20.2	%	21.5	%	(130)	BP		21.7	%	20.5	%	120	BP

Business Solutions
As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile solutions to serving our business customers.



Business Solutions Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Wireless service	$	1,900	$	1,979		(4.0)	%	$	7,397	$	8,009		(7.6)	%
	Strategic services		3,142		3,070		2.3	%		12,310		11,950		3.0	%
	Legacy voice and data services		2,521		3,251		(22.5)	%		10,697		13,565		(21.1)	%
	Other service and equipment		1,064		1,061		0.3	%		3,820		3,778		1.1	%
	Wireless equipment		780		564		38.3	%		2,532		1,552		63.1	%
Total Operating Revenues			9,407		9,925		(5.2)	%		36,756		38,854		(5.4)	%

Operating Expenses
Operations and support			5,911		6,349		(6.9)	%		22,719		24,496		(7.3)	%
Depreciation and amortization			1,507		1,492		1.0	%		5,951		5,901		0.8	%
Total Operating Expenses			7,418		7,841		(5.4)	%		28,670		30,397		(5.7)	%
Operating Income			1,989		2,084		(4.6)	%		8,086		8,457		(4.4)	%
Equity in Net Income (Loss) of Affiliates			-		(1)		-	%		(1)		(1)		-	%
Operating Contribution		$	1,989	$	2,083		(4.5)	%	$	8,085	$	8,456		(4.4)	%

Operating Income Margin			21.1	%	21.0	%	10	BP		22.0	%	21.8	%	20	BP

W ARNER M EDIA SEGMENT

The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. Results from AT&T's Regional Sports Network (RSN) and Otter Media Holdings are also included in the WarnerMedia segment. The WarnerMedia segment contains three business units: Turner, Home Box Office and Warner Bros.

Segment Results
Dollars in millions
Unaudited		Fourth Quarter				Percent		Year Ended				Percent
			2018		2017	Change			2018		2017	Change
Segment Operating Revenues
	Turner	$	3,212	$	107	-	%	$	6,979	$	430	-	%
	Home Box Office		1,673		-	-	%		3,598		-	-	%
	Warner Bros.		4,476		-	-	%		8,703		-	-	%
	Eliminations and other		(129)		-	-	%		(339)		-	-	%
Total Segment Operating Revenues			9,232		107	-	%		18,941		430	-	%

Segment Operating Contribution
	Turner		1,306		61	-	%		3,108		140	-	%
	Home Box Office		650		-	-	%		1,384		-	-	%
	Warner Bros.		807		-	-	%		1,449		-	-	%
	Eliminations and other		(60)		(20)	-	%		(246)		(78)	-	%
Total Segment Operating Contribution		$	2,703	$	41	-	%	$	5,695	$	62	-	%

Turner

Turner is comprised of the WarnerMedia businesses managed by Turner as well as our RSN. This business unit creates and programs branded news, entertainment, sports and kids multi-platform content that is sold to various distribution affiliates. Turner also sells advertising on its networks and digital properties.


Turner Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Subscription	$	1,844	$	94		-	%	$	4,207	$	365		-	%
	Advertising		1,149		13		-	%		2,330		65		-	%
	Content and other		219		-		-	%		442		-		-	%
Total Operating Revenues			3,212		107		-	%		6,979		430		-	%

Operating Expenses
Operations and support			1,861		58		-	%		3,794		331		-	%
Depreciation and amortization			60		1		-	%		131		4		-	%
Total Operating Expenses			1,921		59		-	%		3,925		335		-	%
Operating Income			1,291		48		-	%		3,054		95		-	%
Equity in Net Income of Affiliates			15		13		15.4	%		54		45		20.0	%
Operating Contribution		$	1,306	$	61		-	%	$	3,108	$	140		-	%

Operating Income Margin			40.2	%	44.9	%	(470)	BP		43.8	%	22.1	%	2,170	BP

Home Box Office

Home Box Office consists of premium pay television and OTT services domestically and premium pay, basic tier television and OTT services internationally, as well as content licensing and home entertainment


Home Box Office Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Subscription	$	1,414	$	-		-	%	$	3,201	$	-		-	%
	Content and other		259		-		-	%		397		-		-	%
Total Operating Revenues			1,673		-		-	%		3,598		-		-	%

Operating Expenses
Operations and support			1,025		-		-	%		2,187		-		-	%
Depreciation and amortization			26		-		-	%		56		-		-	%
Total Operating Expenses			1,051		-		-	%		2,243		-		-	%
Operating Income			622		-		-	%		1,355		-		-	%
Equity in Net Income of Affiliates			28		-		-	%		29		-		-	%
Operating Contribution		$	650	$	-		-	%	$	1,384	$	-		-	%

Operating Income Margin			37.2	%	-	%	-	BP		37.7	%	-	%	-	BP

Warner Bros.

Warner Bros. consists of the production, distribution and licensing of television programming and feature films, the distribution of home entertainment products and the production and distribution of games.


Warner Bros. Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Theactrical product	$	2,085	$	-		-	%	$	4,002	$	-		-	%
	Television product		1,827		-		-	%		3,621		-		-	%
	Video games and other		564		-		-	%		1,080		-		-	%
Total Operating Revenues			4,476		-		-	%		8,703		-		-	%

Operating Expenses
Operations and support			3,623		-		-	%		7,130		-		-	%
Depreciation and amortization			42		-		-	%		96		-		-	%
Total Operating Expenses			3,665		-		-	%		7,226		-		-	%
Operating Income			811		-		-	%		1,477		-		-	%
Equity in Net Income (Loss) of Affiliates			(4)		-		-	%		(28)		-		-	%
Operating Contribution		$	807	$	-		-	%	$	1,449	$	-		-	%

Operating Income Margin			18.1	%	-	%	-	BP		17.0	%	-	%	-	BP

LATIN AMERICA SEGMENT

The Latin America segment provides entertainment and wireless service outside of the U.S. Our international subsidiaries conduct business in their local currency and operating results are converted to U.S. dollars using official exchange rates. The Latin America segment contains two business units: Vrio and Mexico.

Segment Results
Dollars in millions
Unaudited		Fourth Quarter				Percent		Year Ended				Percent
			2018		2017	Change			2018		2017	Change
Segment Operating Revenues
	Vrio	$	1,074	$	1,391	(22.8)	%	$	4,784	$	5,456	(12.3)	%
	Mexico		769		824	(6.7)	%		2,868		2,813	2.0	%
Total Segment Operating Revenues			1,843		2,215	(16.8)	%		7,652		8,269	(7.5)	%

Segment Operating Contribution
	Vrio		66		160	(58.8)	%		347		522	(33.5)	%
	Mexico		(314)		(169)	(85.8)	%		(1,057)		(788)	(34.1)	%
Total Segment Operating Contribution		$	(248)	$	(9)	-	%	$	(710)	$	(266)	-	%

Vrio

Vrio provides entertainment services to customers utilizing satellite technology in Latin America and the Caribbean.

Vrio Results
Dollars in millions
Unaudited	Fourth Quarter					Percent		Year Ended					Percent
		2018		2017		Change			2018		2017		Change
Operating Revenues	$	1,074	$	1,391		(22.8)	%	$	4,784	$	5,456		(12.3)	%

Operating Expenses
Operations and support		849		1,049		(19.1)	%		3,743		4,172		(10.3)	%
Depreciation and amortization		169		207		(18.4)	%		728		849		(14.3)	%
Total Operating Expenses		1,018		1,256		(18.9)	%		4,471		5,021		(11.0)	%
Operating Income		56		135		(58.5)	%		313		435		(28.0)	%
Equity in Net Income of Affiliates		10		25		(60.0)	%		34		87		(60.9)	%
Operating Contribution	$	66	$	160		(58.8)	%	$	347	$	522		(33.5)	%

Operating Income Margin		5.2	%	9.7	%	(450)	BP		6.5	%	8.0	%	(150)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited								Year Ended					Percent
									2018		2017		Change
Vrio Satellite Subscribers									13,838		13,629		1.5	%

		Fourth Quarter							Year Ended
		2018		2017					2,018		2,017
Vrio Satellite Net Subscriber Additions		198		139		42.4	%		250		42		-	%

Mexico

Mexico provides wireless services and equipment to customers in Mexico.

Mexico Results
Dollars in millions
Unaudited		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Operating Revenues
	Wireless service	$	440	$	501		(12.2)	%	$	1,701	$	2,047		(16.9)	%
	Wireless equipment		329		323		1.9	%		1,167		766		52.3	%
Total Operating Revenues			769		824		(6.7)	%		2,868		2,813		2.0	%

Operating Expenses
Operations and support			956		887		7.8	%		3,415		3,232		5.7	%
Depreciation and amortization			127		106		19.8	%		510		369		38.2	%
Total Operating Expenses			1,083		993		9.1	%		3,925		3,601		9.0	%
Operating Income (Loss)			(314)		(169)		(85.8)	%		(1,057)		(788)		(34.1)	%
Operating Contribution		$	(314)	$	(169)		(85.8)	%	$	(1,057)	$	(788)		(34.1)	%

Operating Income Margin			(40.8)	%	(20.5)	%	(2,030)	BP		(36.9)	%	(28.0)	%	(890)	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									Year Ended					Percent
										2018		2017		Change
Mexico Wireless Subscribers
	Postpaid									5,805		5,498		5.6	%
	Prepaid									12,264		9,397		30.5	%
Branded										18,069		14,895		21.3	%
Reseller										252		204		23.5	%
Total Mexico Wireless Subscribers										18,321		15,099		21.3	%


		Fourth Quarter					Percent		Year Ended					Percent
			2018		2017		Change			2018		2017		Change
Mexico Wireless Net Additions
	Postpaid		(17)		182		-	%		307		533		(42.4)	%
	Prepaid		994		1,165		(14.7)	%		2,867		2,670		7.4	%
Branded			977		1,347		(27.5)	%		3,174		3,203		(0.9)	%
Reseller			39		(27)		-	%		48		(77)		-	%
Total Mexico Wireless Net Subscriber Additions			1,016		1,320		(23.0)	%		3,222		3,126		3.1	%

XANDR SEGMENT

The Xandr segment provides advertising services. These services utilize data insights to develop higher value targeted advertising. Certain revenues in this segment are also reported by the Communications segment and are eliminated upon consolidation.


Segment Operating Results
Dollars in millions
Unaudited	Fourth Quarter					Percent		Year Ended					Percent
		2018		2017		Change			2018		2017		Change
Segment Operating Revenues	$	566	$	381		48.6	%	$	1,740	$	1,373		26.7	%

Segment Operating Expenses
Operations and support		180		51		-	%		398		169		-	%
Depreciation and amortization		5		1		-	%		9		2		-	%
Total Segment Operating Expenses		185		52		-	%		407		171		-	%
Operating Income		381		329		15.8	%		1,333		1,202		10.9	%
Segment Operating Contribution	$	381	$	329		15.8	%	$	1,333	$	1,202		10.9	%

Segment Operating Income Margin		67.3	%	86.4	%	(1,910)	BP		76.6	%	87.5	%	(1,090)	BP

Supplemental AT&T Advertising Revenues

As a supplemental presentation to our Xandr segment operating results, we are providing a view of total advertising revenues generated by AT&T, which combines the advertising revenues recorded across all operating segments. This combined view presents the entire portfolio of revenues generated from AT&T assets and represents a significant strategic initiative and growth opportunity for AT&T.


Advertising Revenues
Dollars in millions
Unaudited		Fourth Quarter				Percent		Year Ended				Percent
			2018		2017	Change			2018		2017	Change
Operating Revenues
	WarnerMedia	$	1,239	$	13	-	%	$	2,461	$	65	-	%
	Communications		543		420	29.3	%		1,827		1,513	20.8	%
	Xandr		566		381	48.6	%		1,740		1,373	26.7	%
	Eliminations		(473)		(377)	(25.5)	%		(1,595)		(1,357)	(17.5)	%
Total Advertising Revenues		$	1,875	$	437	-	%	$	4,433	$	1,594	-	%

SUPPLEMENTAL SEGMENT RECONCILIATION


Three Months Ended
Dollars in millions
Unaudited
*December 31, 2018*
		Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	18,769	$	11,246	$	7,523	$	2,068	$	5,455	$	-	$	5,455
Entertainment Group		11,962		9,807		2,155		1,329		826		(1)		825
Business Wireline		6,727		4,161		2,566		1,207		1,359		-		1,359
Total Communications		37,458		25,214		12,244		4,604		7,640		(1)		7,639
WarnerMedia
Turner		3,212		1,861		1,351		60		1,291		15		1,306
Home Box Office		1,673		1,025		648		26		622		28		650
Warner Bros.		4,476		3,623		853		42		811		(4)		807
Other		(129)		(39)		(90)		11		(101)		41		(60)
Total WarnerMedia		9,232		6,470		2,762		139		2,623		80		2,703
Latin America
Vrio		1,074		849		225		169		56		10		66
Mexico		769		956		(187)		127		(314)		-		(314)
Total Latin America		1,843		1,805		38		296		(258)		10		(248)
Xandr		566		180		386		5		381		-		381
Segment Total		49,099		33,669		15,430		5,044		10,386		89		10,475
Corporate and Other
Corporate		279		252		27		560		(533)
Acquisition-related items		(49)		435		(484)		2,262		(2,746)
Certain significant items		-		492		(492)		26		(518)
Eliminations and consolidations		(1,336)		(907)		(429)		-		(429)
AT&T Inc.	$	47,993	$	33,941	$	14,052	$	7,892	$	6,160

December 31, 2017
		Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	19,168	$	12,866	$	6,302	$	2,027	$	4,275	$	-	$	4,275
Entertainment Group		12,560		10,192		2,368		1,367		1,001		-		1,001
Business Wireline		7,382		4,586		2,796		1,206		1,590		(2)		1,588
Total Communications		39,110		27,644		11,466		4,600		6,866		(2)		6,864
WarnerMedia
Turner		107		58		49		1		48		13		61
Home Box Office		-		-		-		-		-		-		-
Warner Bros.		-		-		-		-		-		-		-
Other		-		1		(1)		-		(1)		(19)		(20)
Total WarnerMedia		107		59		48		1		47		(6)		41
Latin America
Vrio		1,391		1,049		342		207		135		25		160
Mexico		824		887		(63)		106		(169)		-		(169)
Total Latin America		2,215		1,936		279		313		(34)		25		(9)
Xandr		381		51		330		1		329		-		329
Segment Total		41,813		29,690		12,123		4,915		7,208		17		7,225
Corporate and Other
Corporate		340		866		(526)		24		(550)
Acquisition-related items		-		176		(176)		1,100		(1,276)
Certain significant items		(154)		3,578		(3,732)		32		(3,764)
Eliminations and consolidations		(323)		14		(337)		-		(337)
AT&T Inc.	$	41,676	$	34,324	$	7,352	$	6,071	$	1,281

SUPPLEMENTAL SEGMENT RECONCILIATION


Twelve Months Ended
Dollars in millions
Unaudited
*December 31, 2018*
		Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	71,344	$	41,266	$	30,078	$	8,355	$	21,723	$	(1)	$	21,722
Entertainment Group		46,460		36,430		10,030		5,315		4,715		(2)		4,713
Business Wireline		26,827		16,245		10,582		4,754		5,828		(1)		5,827
Total Communications		144,631		93,941		50,690		18,424		32,266		(4)		32,262
WarnerMedia
Turner		6,979		3,794		3,185		131		3,054		54		3,108
Home Box Office		3,598		2,187		1,411		56		1,355		29		1,384
Warner Bros.		8,703		7,130		1,573		96		1,477		(28)		1,449
Other		(339)		(145)		(194)		22		(216)		(30)		(246)
Total WarnerMedia		18,941		12,966		5,975		305		5,670		25		5,695
Latin America
Vrio		4,784		3,743		1,041		728		313		34		347
Mexico		2,868		3,415		(547)		510		(1,057)		-		(1,057)
Total Latin America		7,652		7,158		494		1,238		(744)		34		(710)
Xandr		1,740		398		1,342		9		1,333		-		1,333
Segment Total		172,964		114,463		58,501		19,976		38,525		55		38,580
Corporate and Other
Corporate		1,240		1,630		(390)		1,498		(1,888)
Acquisition-related items		(49)		1,185		(1,234)		6,931		(8,165)
Certain significant items		-		899		(899)		26		(925)
Eliminations and consolidations		(3,399)		(1,947)		(1,452)		(1)		(1,451)
AT&T Inc.	$	170,756	$	116,230	$	54,526	$	28,430	$	26,096

December 31, 2017
		Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)		Equity in Net Income (Loss) of Affiliates		Segment Contribution
Communications
Mobility	$	71,090	$	42,871	$	28,219	$	8,015	$	20,204	$	-	$	20,204
Entertainment Group		49,995		38,903		11,092		5,621		5,471		-		5,471
Business Wireline		29,293		18,492		10,801		4,789		6,012		(2)		6,010
Total Communications		150,378		100,266		50,112		18,425		31,687		(2)		31,685
WarnerMedia
Turner		430		331		99		4		95		45		140
Home Box Office		-		-		-		-		-		-		-
Warner Bros.		-		-		-		-		-		-		-
Other		-		4		(4)		-		(4)		(74)		(78)
Total WarnerMedia		430		335		95		4		91		(29)		62
Latin America
Vrio		5,456		4,172		1,284		849		435		87		522
Mexico		2,813		3,232		(419)		369		(788)		-		(788)
Total Latin America		8,269		7,404		865		1,218		(353)		87		(266)
Xandr		1,373		169		1,204		2		1,202		-		1,202
Segment Total		160,450		108,174		52,276		19,649		32,627		56		32,683
Corporate and Other
Corporate		1,522		3,306		(1,784)		97		(1,881)
Acquisition-related items		-		798		(798)		4,608		(5,406)
Certain significant items		(243)		3,880		(4,123)		33		(4,156)
Eliminations and consolidations		(1,183)		31		(1,214)		-		(1,214)
AT&T Inc.	$	160,546	$	116,189	$	44,357	$	24,387	$	19,970

As a supplemental discussion of our operating results, we are providing results under the comparative historical accounting method prior to our adoption of ASC 606 and other accounting changes.

SUPPLEMENTAL INCOME STATEMENT

Supplemental Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited		Fourth Quarter
		2018		Accounting Impact		Historical 2018		2017	Percent Change
Operating Revenues
Service	$	42,496	$	(1,435)	$	43,931	$	36,225	21.3	%
Equipment		5,497		571		4,926		5,451	(9.6)	%
Total Operating Revenues		47,993		(864)		48,857		41,676	17.2	%

Operating Expenses
Cost of revenues
Equipment		5,733		-		5,733		6,532	(12.2)	%
Broadcast, programming and operations		8,885		-		8,885		6,003	48.0	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)		8,691		(981)		9,672		9,391	3.0	%
Selling, general and administrative		10,586		(466)		11,052		9,484	16.5	%
Asset abandonments and impairments		46		-		46		2,914	(98.4)	%
Depreciation and amortization		7,892		-		7,892		6,071	30.0	%
Total Operating Expenses		41,833		(1,447)		43,280		40,395	7.1	%
Operating Income		6,160		583		5,577		1,281	-	%
Interest Expense		(2,112)		-		(2,112)		(1,926)	9.7	%
Equity in Net Income (Loss) of Affiliates		23		-		23		20	15.0	%
Other Income (Expense) - Net		1,674		-		1,674		(658)	-	%
Income Before Income Taxes		5,745		583		5,162		(1,283)	-	%
Income Tax Expense (Benefit)		615		143		472		(20,419)	-	%
Net Income		5,130		440		4,690		19,136	(75.5)	%
Less: Net Income Attributable to Noncontrolling Interest		(272)		(6)		(266)		(99)	-	%
Net Income Attributable to AT&T	$	4,858	$	434	$	4,424	$	19,037	(76.8)	%


Basic Earnings Per Share Attributable to AT&T	$	0.66	$	0.05	$	0.61	$	3.08	(80.2)	%
Weighted Average Common Shares Outstanding (000,000)		7,296		-		7,296		6,163	18.4	%

Diluted Earnings Per Share Attributable to AT&T	$	0.66	$	0.05	$	0.61	$	3.08	(80.2)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		7,328		-		7,328		6,182	18.5	%

Supplemental Mobility

Supplemental Results
Dollars in millions
Unaudited			Fourth Quarter
			2018		Accounting Impact		Historical 2018		2017		Percent Change
Operating Revenues
	Service	$	13,859	$	(840)	$	14,699	$	14,282		2.9	%
	Equipment		4,910		555		4,355		4,886		(10.9)	%
Total Operating Revenues			18,769		(285)		19,054		19,168		(0.6)	%

Operating Expenses
Operations and support			11,246		(667)		11,913		12,866		(7.4)	%
EBITDA			7,523		382		7,141		6,302		13.3	%
Depreciation and amortization			2,068		-		2,068		2,027		2.0	%
Total Operating Expenses			13,314		(667)		13,981		14,893		(6.1)	%
Operating Income			5,455		382		5,073		4,275		18.7	%
Equity in Net Income (Loss) of Affiliates			-		-		-		-		-	%
Operating Contribution		$	5,455	$	382	$	5,073	$	4,275		18.7	%

Operating Income Margin			29.1	%			26.6	%	22.3	%	430	BP
EBITDA Margin			40.1	%			37.5	%	32.9	%	460	BP
EBITDA Service Margin			54.3	%			48.6	%	44.1	%	450	BP

Supplemental Entertainment Group

Supplemental Entertainment Group Results
Dollars in millions
Unaudited			Fourth Quarter
			2018		Accounting Impact		Historical 2018		2017		Percent Change
Operating Revenues
	Video entertainment	$	8,676	$	(117)	$	8,793	$	9,200		(4.4)	%
	High-speed internet		2,052		-		2,052		1,890		8.6	%
	Legacy voice and data services		724		(34)		758		878		(13.7)	%
	Other service and equipment		510		(66)		576		592		(2.7)	%
Total Operating Revenues			11,962		(217)		12,179		12,560		(3.0)	%

Operating Expenses
Operations and support			9,807		(374)		10,181		10,192		(0.1)	%
EBITDA			2,155		157		1,998		2,368		(15.6)	%
Depreciation and amortization			1,329		-		1,329		1,367		(2.8)	%
Total Operating Expenses			11,136		(374)		11,510		11,559		(0.4)	%
Operating Income			826		157		669		1,001		(33.2)	%
Equity in Net Income (Loss) of Affiliates			(1)		-		(1)		-		-	%
Contribution		$	825	$	157	$	668	$	1,001		(33.3)	%

Operating Income Margin			6.9	%			5.5	%	8.0	%	(250)	BP
EBITDA Margin			18.0	%			16.4	%	18.9	%	(250)	BP

Supplemental Business Wireline

Supplemental Business Wireline Results
Dollars in millions
Unaudited			Fourth Quarter
			2018		Accounting Impact		Historical 2018		2017		Percent Change
Operating Revenues
	Strategic services	$	3,142	$	(3)	$	3,145	$	3,070		2.4	%
	Legacy voice and data services		2,521		(267)		2,788		3,251		(14.2)	%
	Other service and equipment		1,064		(76)		1,140		1,061		7.4	%
Total Operating Revenues			6,727		(346)		7,073		7,382		(4.2)	%

Operating Expenses
Operations and support			4,161		(368)		4,529		4,586		(1.2)	%
EBITDA			2,566		22		2,544		2,796		(9.0)	%
Depreciation and amortization			1,207		-		1,207		1,206		0.1	%
Total Operating Expenses			5,368		(368)		5,736		5,792		(1.0)	%
Operating Income			1,359		22		1,337		1,590		(15.9)	%
Equity in Net Income of Affiliates			-		-		-		(2)		-	%
Operating Contribution		$	1,359	$	22	$	1,337	$	1,588		(15.8)	%

Operating Income Margin			20.2	%			18.9	%	21.5	%	(260)	BP
EBITDA Margin			38.1	%			36.0	%	37.9	%	(190)	BP

Supplemental Latin America

Supplemental Segment Results
Dollars in millions
Unaudited			Fourth Quarter
			2018		Accounting Impact		Historical 2018		2017		Percent Change
Segment Operating Revenues
	Vrio	$	1,074	$	-	$	1,074	$	1,391		(22.8)	%
	Mexico		769		(9)		778		824		(5.6)	%
Total Segment Operating Revenues			1,843		(9)		1,852		2,215		(16.4)	%

Segment Operating Expenses
Operations and support			1,805		(30)		1,835		1,936		(5.2)	%
EBITDA			38		21		17		279		(93.9)	%
Depreciation and amortization			296		-		296		313		(5.4)	%
Total Segment Operating Expenses			2,101		(30)		2,131		2,249		(5.2)	%
Segment Operating Income (Loss)			(258)		21		(279)		(34)		-	%
Equity in Net Income of Affiliates			10		-		10		25		(60.0)	%
Segment Contribution		$	(248)	$	21	$	(269)	$	(9)		-	%

Operating Income Margin			(14.0)	%			(15.1)	%	(1.5)	%	(1,360)	BP
EBITDA Margin			2.1	%			0.9	%	12.6	%	(1,170)	BP

Supplemental Business Solutions

As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship, and underscores the importance of mobile solutions to serving our business customers.

Supplemental Operating Results
Dollars in millions
Unaudited			Fourth Quarter
			2018		Accounting Impact			Historical 2018		2017		Percent Change
Operating Revenues
	Wireless service	$	1,900	$	(209)		$	2,109	$	1,979		6.6	%
	Strategic services		3,142		(3)			3,145		3,070		2.4	%
	Legacy voice and data services		2,521		(267)			2,788		3,251		(14.2)	%
	Other service and equipment		1,064		(76)			1,140		1,061		7.4	%
	Wireless equipment		780		210			570		564		1.1	%
Total Operating Revenues			9,407		(345)			9,752		9,925		(1.7)	%

Operating Expenses
Operations and support			5,911		(470)			6,381		6,349		0.5	%
EBITDA			3,496		125			3,371		3,576		(5.7)	%
Depreciation and amortization			1,507		-			1,507		1,492		1.0	%
Total Operating Expenses			7,418		(470)			7,888		7,841		0.6	%
Operating Income			1,989		125			1,864		2,084		(10.6)	%
Equity in Net Income (Loss) of Affiliates			-		-			-		(1)		-	%
Operating Contribution		$	1,989	$	125	$		1,864	$	2,083		(10.5)	%

Operating Income Margin			21.1	%				19.1	%	21.0	%	(190)	BP
EBITDA Margin			37.2	%				34.6	%	36.0	%	(140)	BP

As a supplemental discussion of our operating results, we are providing results under the comparative historical accounting method prior to our adoption of ASC 606 and other accounting changes.

SUPPLEMENTAL INCOME STATEMENT

Supplemental Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited		Year Ended
		2018		Accounting Impact		Historical 2018		2017	Percent Change
Operating Revenues
Service	$	152,345	$	(5,634)	$	157,979	$	145,597	8.5	%
Equipment		18,411		2,087		16,324		14,949	9.2	%
Total Operating Revenues		170,756		(3,547)		174,303		160,546	8.6	%

Operating Expenses
Cost of revenues
Equipment		19,786		-		19,786		18,709	5.8	%
Broadcast, programming and operations		26,727		-		26,727		21,159	26.3	%
Other cost of revenues (exclusive of depreciation and amortization shown separately below)		32,906		(3,730)		36,636		37,942	(3.4)	%
Selling, general and administrative		36,765		(2,196)		38,961		35,465	9.9	%
Asset abandonments and impairments		46		-		46		2,914	(98.4)	%
Depreciation and amortization		28,430		-		28,430		24,387	16.6	%
Total Operating Expenses		144,660		(5,926)		150,586		140,576	7.1	%
Operating Income		26,096		2,379		23,717		19,970	18.8	%
Interest Expense		(7,957)		-		(7,957)		(6,300)	26.3	%
Equity in Net Income (Loss) of Affiliates		(48)		-		(48)		(128)	62.5	%
Other Income (Expense) - Net		6,782		-		6,782		1,597	-	%
Income Before Income Taxes		24,873		2,379		22,494		15,139	48.6	%
Income Tax Expense (Benefit)		4,920		583		4,337		(14,708)	-	%
Net Income		19,953		1,796		18,157		29,847	(39.2)	%
Less: Net Income Attributable to Noncontrolling Interest		(583)		(23)		(560)		(397)	(41.1)	%
Net Income Attributable to AT&T	$	19,370	$	1,773	$	17,597	$	29,450	(40.2)	%


Basic Earnings Per Share Attributable to AT&T	$	2.85	$	0.26	$	2.59	$	4.77	(45.7)	%
Weighted Average Common Shares Outstanding (000,000)		6,778		-		6,778		6,164	10.0	%

Diluted Earnings Per Share Attributable to AT&T	$	2.85	$	0.26	$	2.59	$	4.76	(45.6)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		6,806		-		6,806		6,183	10.1	%

Delaware	1-8610	43-1301883
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

208 S. Akard St., Dallas, Texas	75202
(Address of Principal Executive Offices)	(Zip Code)

	AT&T INC.



Date: January 30, 2019	By: /s/ Debra L. Dial Debra L. Dial Senior Vice President and Controller

Supplemental Operational Measure
		Three Months Ended
		December 31, 2018								December 31, 2017
		Mobility		Business Wireline		Adjustments ¹		Business Solutions		Mobility		Business Wireline		Adjustments ¹		Business Solutions
Operating Revenues
Wireless service	$	13,859	$	-	$	(11,959)	$	1,900	$	14,282	$	-	$	(12,303)	$	1,979
Strategic services		-		3,142		-		3,142		-		3,070		-		3,070
Legacy voice and data services		-		2,521		-		2,521		-		3,251		-		3,251
Other services and equipment		-		1,064		-		1,064		-		1,061		-		1,061
Wireless equipment		4,910		-		(4,130)		780		4,886		-		(4,322)		564
Total Operating Revenues		18,769		6,727		(16,089)		9,407		19,168		7,382		(16,625)		9,925
Operations and support		11,246		4,161		(9,496)		5,911		12,866		4,586		(11,103)		6,349
EBITDA		7,523		2,566		(6,593)		3,496		6,302		2,796		(5,522)		3,576
Depreciation and amortization		2,068		1,207		(1,768)		1,507		2,027		1,206		(1,741)		1,492
Total Operating Expenses		13,314		5,368		(11,264)		7,418		14,893		5,792		(12,844)		7,841
Operating Income		5,455		1,359		(4,825)		1,989		4,275		1,590		(3,781)		2,084
Equity in net Income of Affiliates		-		-		-		-		-		(2)		1		(1)
Contribution	$	5,455	$	1,359	$	(4,825)	$	1,989	$	4,275	$	1,588	$	(3,780)	$	2,083
¹ Non-business wireless reported in the Communication segment under the Mobility business unit.

Supplemental Operational Measure
		Year Ended
		December 31, 2018								December 31, 2017
		Mobility		Business Wireline		Adjustments ¹		Business Solutions		Mobility		Business Wireline		Adjustments ¹		Business Solutions
Operating Revenues
Wireless service	$	54,933	$	-	$	(47,536)	$	7,397	$	57,696	$	-	$	(49,687)	$	8,009
Strategic services		-		12,310		-		12,310		-		11,950		-		11,950
Legacy voice and data services		-		10,697		-		10,697		-		13,565		-		13,565
Other services and equipment		-		3,820		-		3,820		-		3,778		-		3,778
Wireless equipment		16,411		-		(13,879)		2,532		13,394		-		(11,842)		1,552
Total Operating Revenues		71,344		26,827		(61,415)		36,756		71,090		29,293		(61,529)		38,854

Operating Expenses
Operations and support		41,266		16,245		(34,792)		22,719		42,871		18,492		(36,867)		24,496
EBITDA		30,078		10,582		(26,623)		14,037		28,219		10,801		(24,662)		14,358
Depreciation and amortization		8,355		4,754		(7,158)		5,951		8,015		4,789		(6,903)		5,901
Total Operating Expenses		49,621		20,999		(41,950)		28,670		50,886		23,281		(43,770)		30,397
Operating Income		21,723		5,828		(19,465)		8,086		20,204		6,012		(17,759)		8,457
Equity in net Income of Affiliates		(1)		(1)		1		(1)		-		(2)		1		(1)
Contribution	$	21,722	$	5,827	$	(19,464)	$	8,085	$	20,204	$	6,010	$	(17,758)	$	8,456
¹ Non-business wireless reported in the Communication segment under the Mobility business unit.