Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

AT&T Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	67,854)	67,895)	133,223)	135,259)	146,241)
Wireless licenses	3,057)	2,748)	2,643)	2,558)	2,738)
Orbital slots	—)	—)	—)	5,825)	—)
Distribution network	—)	—)	18,399)	18,414)	18,138)
Released television and film content	—)	—)	10,939)	10,940)	10,941)
Customer lists and relationships	305)	338)	539)	3,640)	20,023)
Trademarks, trade names and other	284)	324)	29,761)	30,880)	29,777)
Amortized intangible assets, gross carrying amount	3,646)	3,410)	62,281)	72,257)	81,617)
Accumulated amortization	(1,119)	(974)	(19,523)	(16,910)	(25,392)
Amortized intangible assets, net	2,527)	2,436)	42,758)	55,347)	56,225)
Wireless licenses	124,734)	121,769)	111,494)	85,728)	83,623)
Orbital slots	—)	—)	—)	—)	11,702)
Licenses	124,734)	121,769)	111,494)	85,728)	95,325)
Trade names	5,241)	5,241)	5,241)	5,241)	6,067)
Indefinite-lived intangible assets not subject to amortization	129,975)	127,010)	116,735)	90,969)	101,392)
Other intangible assets	132,502)	129,446)	159,493)	146,316)	157,617)
Goodwill and other intangible assets	200,356)	197,341)	292,716)	281,575)	303,858)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	AT&T Inc. goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Other intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	AT&T Inc. other intangible assets decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	AT&T Inc. goodwill and other intangible assets decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

AT&T Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	407,060)	402,853)	551,622)	525,761)	551,669)
Less: Goodwill	67,854)	67,895)	133,223)	135,259)	146,241)
Total assets (adjusted)	339,206)	334,958)	418,399)	390,502)	405,428)
Adjustment to Stockholders’ Equity Attributable To AT&T
Stockholders’ equity attributable to AT&T (as reported)	103,297)	97,500)	166,332)	161,673)	184,221)
Less: Goodwill	67,854)	67,895)	133,223)	135,259)	146,241)
Stockholders’ equity attributable to AT&T (adjusted)	35,443)	29,605)	33,109)	26,414)	37,980)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

AT&T Inc., Financial Data: Reported vs. Adjusted

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AT&T Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	0.30	0.30	0.31	0.33	0.33
Adjusted total asset turnover	0.36	0.36	0.40	0.44	0.45
Financial Leverage
Reported financial leverage	3.94	4.13	3.32	3.25	2.99
Adjusted financial leverage	9.57	11.31	12.64	14.78	10.67
Return on Equity (ROE)
Reported ROE	13.94%	-8.74%	12.07%	-3.20%	7.55%
Adjusted ROE	40.63%	-28.79%	60.65%	-19.60%	36.61%
Return on Assets (ROA)
Reported ROA	3.54%	-2.12%	3.64%	-0.98%	2.52%
Adjusted ROA	4.25%	-2.54%	4.80%	-1.33%	3.43%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AT&T Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	AT&T Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	AT&T Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	AT&T Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

AT&T Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Operating revenues	122,428)	120,741)	168,864)	171,760)	181,193)
Total assets	407,060)	402,853)	551,622)	525,761)	551,669)
Activity Ratio
Total asset turnover¹	0.30	0.30	0.31	0.33	0.33
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Operating revenues	122,428)	120,741)	168,864)	171,760)	181,193)
Adjusted total assets	339,206)	334,958)	418,399)	390,502)	405,428)
Activity Ratio
Adjusted total asset turnover²	0.36	0.36	0.40	0.44	0.45

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Operating revenues ÷ Total assets
= 122,428 ÷ 407,060 = 0.30

² Adjusted total asset turnover = Operating revenues ÷ Adjusted total assets
= 122,428 ÷ 339,206 = 0.36

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AT&T Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	407,060)	402,853)	551,622)	525,761)	551,669)
Stockholders’ equity attributable to AT&T	103,297)	97,500)	166,332)	161,673)	184,221)
Solvency Ratio
Financial leverage¹	3.94	4.13	3.32	3.25	2.99
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	339,206)	334,958)	418,399)	390,502)	405,428)
Adjusted stockholders’ equity attributable to AT&T	35,443)	29,605)	33,109)	26,414)	37,980)
Solvency Ratio
Adjusted financial leverage²	9.57	11.31	12.64	14.78	10.67

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity attributable to AT&T
= 407,060 ÷ 103,297 = 3.94

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity attributable to AT&T
= 339,206 ÷ 35,443 = 9.57

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	AT&T Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T	14,400)	(8,524)	20,081)	(5,176)	13,903)
Stockholders’ equity attributable to AT&T	103,297)	97,500)	166,332)	161,673)	184,221)
Profitability Ratio
ROE¹	13.94%	-8.74%	12.07%	-3.20%	7.55%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T	14,400)	(8,524)	20,081)	(5,176)	13,903)
Adjusted stockholders’ equity attributable to AT&T	35,443)	29,605)	33,109)	26,414)	37,980)
Profitability Ratio
Adjusted ROE²	40.63%	-28.79%	60.65%	-19.60%	36.61%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to AT&T ÷ Stockholders’ equity attributable to AT&T
= 100 × 14,400 ÷ 103,297 = 13.94%

² Adjusted ROE = 100 × Net income (loss) attributable to AT&T ÷ Adjusted stockholders’ equity attributable to AT&T
= 100 × 14,400 ÷ 35,443 = 40.63%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	AT&T Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T	14,400)	(8,524)	20,081)	(5,176)	13,903)
Total assets	407,060)	402,853)	551,622)	525,761)	551,669)
Profitability Ratio
ROA¹	3.54%	-2.12%	3.64%	-0.98%	2.52%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to AT&T	14,400)	(8,524)	20,081)	(5,176)	13,903)
Adjusted total assets	339,206)	334,958)	418,399)	390,502)	405,428)
Profitability Ratio
Adjusted ROA²	4.25%	-2.54%	4.80%	-1.33%	3.43%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to AT&T ÷ Total assets
= 100 × 14,400 ÷ 407,060 = 3.54%

² Adjusted ROA = 100 × Net income (loss) attributable to AT&T ÷ Adjusted total assets
= 100 × 14,400 ÷ 339,206 = 4.25%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	AT&T Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

AT&T Inc. (NYSE:T)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

AT&T Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

AT&T Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)