AT&T Inc. (T)

AT&T has five major classes of intangible assets: goodwill; licenses, which include Federal Communications Commission (FCC) and other wireless licenses and orbital slots; other indefinite-lived intangible assets, primarily made up of the AT&T and international DIRECTV trade names including SKY; customer lists; and various other finite-lived intangible assets.

Goodwill represents the excess of consideration paid over the fair value of identifiable net assets acquired in business combinations. Wireless licenses (including FCC licenses) provide AT&T with the exclusive right to utilize certain radio frequency spectrum to provide wireless communications services. While wireless licenses are issued for a fixed period of time (generally 10 years), renewals of wireless licenses have occurred routinely and at nominal cost. Moreover, AT&T has determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of the wireless licenses. Orbital slots represent the space in which AT&T operates the broadcast satellites that support the digital video entertainment service offerings. Similar to AT&T's wireless licenses, there are no factors that limit the useful lives of the orbital slots. AT&T acquired the rights to the AT&T and other trade names in previous acquisitions. AT&T has the effective ability to retain these exclusive rights permanently at a nominal cost.

Goodwill, licenses and other indefinite-lived intangible assets are not amortized but are tested at least annually for impairment. The testing is performed on the value as of October 1 each year, and compares the book value of the assets to their fair value. Goodwill is tested by comparing the book value of each reporting unit, deemed to be AT&T's principal operating segments or one level below them (Business Solutions, Entertainment Group, Consumer Mobility, and Mexico Wireless, Brazil and PanAmericana in the International segment), to the fair value using both discounted cash flow as well as market multiple approaches. Wireless licenses are tested on an aggregate basis, consistent with AT&T's use of the licenses on a national scope, using a discounted cash flow approach. Orbital slots are similarly aggregated for purposes of impairment testing. Trade names are tested by comparing the book value to a fair value calculated using a discounted cash flow approach on a presumed royalty rate derived from the revenues related to the brand name.

Intangible assets that have finite useful lives are amortized over their useful lives. Customer lists and relationships are amortized using primarily the sum-of-the-months-digits method of amortization over the period in which those relationships are expected to contribute to AT&T's future cash flows. The remaining finite-lived intangible assets are generally amortized using the straight-line method.

Source: 10-K (filing date: 2018-02-20).

AT&T Inc., Statement of Financial Position, Goodwill and Intangible Assets

USD $ in millions

		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014		Dec 31, 2013
	Wireless acquisitions
	BellSouth Corporation
	DIRECTV
	AT&T Corp.
	Mexican wireless
	Customer lists and relationships
	Trade name
	Other
	Amortized intangible assets, gross carrying amount
	Accumulated amortization
	Amortized intangible assets, net
	Wireless licenses
	Orbital slots
	Licenses
	Trade names
	Indefinite-lived intangible assets not subject to amortization
	Other intangible assets
	Goodwill
	Goodwill and other intangible assets

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

AT&T Inc., adjustments to financial data

USD $ in millions

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Adjustment to Total Assets
	Total assets (as reported)
	Less: Goodwill
	Total assets (adjusted)
	Adjustment to Stockholders' Equity Attributable To AT&T
	Stockholders' equity attributable to AT&T (as reported)
	Less: Goodwill
	Stockholders' equity attributable to AT&T (adjusted)

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

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

AT&T Inc., adjusted ratios

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Total Asset Turnover
	Reported total asset turnover
	Adjusted total asset turnover
	Financial Leverage
	Reported financial leverage
	Adjusted financial leverage
	Return on Equity (ROE)
	Reported ROE
	Adjusted ROE
	Return on Assets (ROA)
	Reported ROA
	Adjusted ROA

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

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

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in millions)
	Operating revenues
	Total assets
	Ratio
	Total asset turnover1
	Adjusted for Goodwill
	Selected Financial Data (USD $ in millions)
	Operating revenues
	Adjusted total assets
	Ratio
	Adjusted total asset turnover2

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

2017 Calculations

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in millions)
	Total assets
	Stockholders' equity attributable to AT&T
	Ratio
	Financial leverage1
	Adjusted for Goodwill
	Selected Financial Data (USD $ in millions)
	Adjusted total assets
	Adjusted stockholders' equity attributable to AT&T
	Ratio
	Adjusted financial leverage2

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

2017 Calculations

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in millions)
	Net income attributable to AT&T
	Stockholders' equity attributable to AT&T
	Ratio
	ROE1
	Adjusted for Goodwill
	Selected Financial Data (USD $ in millions)
	Net income attributable to AT&T
	Adjusted stockholders' equity attributable to AT&T
	Ratio
	Adjusted ROE2

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

2017 Calculations

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	As Reported
	Selected Financial Data (USD $ in millions)
	Net income attributable to AT&T
	Total assets
	Ratio
	ROA1
	Adjusted for Goodwill
	Selected Financial Data (USD $ in millions)
	Net income attributable to AT&T
	Adjusted total assets
	Ratio
	Adjusted ROA2

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

2017 Calculations