Sentences and paragraphs of T's Risk Factors and MD&A, 10-K 2026-02-09 against 10-K 2025-02-12.
Each links to the text at sec.gov.
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RewordedRisk Factors
In addition, a sustained decline in a reporting unit’s revenues and earnings has resulted in the past, and may again result in the future, in a significant negative impact on its fair value, requiring us to record an impairment charge, which could have an adverse impact on our results of operations.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
In addition, increased public focus on a variety of issues related to our operations, such as privacy issues, government requests or orders for customer data, state rate regulation of broadband and concerns about global climate change, have led to proposals or new legislation at state, federal and foreign government levels to change or increase regulation on our operations, which could result in additional costs of compliance or litigation.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
Tax Cuts and Jobs Act In many cases, the application of 2017 and the Inflation Reduction Act of 2022) existing, newly enacted or amended tax laws may be uncertain and subject to differing interpretations, especially when evaluated against ever-changing products and services provided by our global telecommunications and technology businesses.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
If we do not successfully manage and timely execute these initiatives, initiatives and investments, which may include acquisitions, joint ventures, particularly those aimed at enhancing our fiber serviceable locations, and other strategic transactions, or if they are inadequate or ineffective, we may fail to meet our financial goals and achieve anticipated benefits, improvements may be delayed, not sustained or not realized, and our business, operations and competitive position could be adversely affected.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
The COVID-19 pandemic Recent world events and trends accelerated these changes and also resulted in higher network utilization, as more customers consumed bandwidth from changes in work and learn from home trends. bandwidth.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
Cyberattacks can cause have caused, and may in the future cause, equipment or network failures, copying or loss of information, including sensitive personal information of customers or employees or proprietary information, as well as disruptions to our or our customers’, suppliers’ or vendors’ operations, which have and in the future could result in significant expenses, potential investigations and legal liability, a loss of current or future customers and reputational damage.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
As a critical infrastructure service provider, the Company believes we believe that it is we are a particularly attractive target for such cyberattacks, including from nation states and highly sophisticated, state-sponsored, or otherwise well-funded actors, and the Company experiences we experience heightened risk from time to time as a result of geopolitical events.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
In order to stem broadband subscriber connectivity losses to cable competitors in our non-fiber wireline areas, we have been expanding our all-fiber wireline network. network and where we offer our fixed wireless access product.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
We may not realize or sustain the expected benefits from acquisitions, joint ventures or our business transformation initiatives, and these efforts including dispositions, which could have a materially material adverse effect on our business, operations, financial condition, results of operations and competitive position.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
We currently are, and may in the future be, named as a defendant in lawsuits, claims and other legal proceedings that arise in or outside the ordinary course of our business based on alleged acts of misconduct by employees. employees, contractors or other third parties.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedRisk Factors
We have been and will be undertaking certain transformation initiatives, initiatives and investments, which are designed to reduce costs, enable legacy rationalization, streamline and modernize distribution and customer service, improve our products and services, remove redundancies and simplify and improve processes and support functions.
Read it in 10-K 2026-02-09 at sec.gov ↗
Quiet changesRisk Factors
We intend to and have incurred debt to fund significant acquisitions, as well as spectrum purchases needed to compete in our industry.
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
Operations and support expenses increased in 2025, reflecting higher sales volumes in our Mobility business unit, which drove higher equipment, advertising, selling and bad debt expenses. Also contributing to higher costs were approximately $440 of apportioned legal settlements during 2025, higher network-related expenses and advertising costs due to the launch of a new campaign in 2025. Increases were partially offset by declines from our continued transformation efforts and lower content licensing fees.
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
Postpaid ARPU increased in 2025 reflecting pricing actions that were largely offset by increased promotional activity, growth in our converged customer relationships, and our success in attracting customers in underpenetrated segments with lower ARPUs but attractive lifetime values, such as age 55-plus in our “value customers.”
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AddedMD&A
Fiber and advanced connectivity services revenues increased in 2025, driven by higher fiber and fixed wireless revenues.
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AddedMD&A
Broadband Net Additions Percent Change (in 000s) 2025 2024 2023 2025 vs. 2024 vs. 2024 2023 Broadband Net Additions1,2 729 258 (24) —% —% Fiber Broadband Net Additions 1,075 1,024 1,092 5.0% (6.2)% 1Includes AIA. 2Excludes the impact of customer disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025.
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
to wireless subscriber and service revenue growth and that expansion of our fiber and AIA serviceable locations will drive greater demand for broadband services. We expect that an increasing portion of our revenues will come from converged customers with seamless connectivity through an innovative product portfolio and strong customer relationships.
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AddedMD&A
with the New York Attorney General, the law began to be enforced on January 15, 2025. A number of state legislatures have since considered legislation regulating the rates of fixed broadband service, with Connecticut adopting a law requiring wireline ISPs that are state contractors to stand up a discounted broadband offering to low-income customers.
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AddedMD&A
We have the option to first perform a qualitative assessment to determine whether it is more likely than not that the book value of our wireless licenses exceeds the fair value. On a periodic basis, or if the qualitative assessment indicates potential impairment, we will perform a quantitative impairment test.
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
During 2025, we performed a qualitative impairment assessment that considered several factors, including macroeconomic conditions, industry and regulatory considerations, recent and projected performance of the reporting unit and the prior quantitative impairment testing results. The qualitative assessment indicated it is more likely than not that the fair value of our wireless licenses exceeded the book value; thus, a quantitative assessment was not performed.
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
During 2025, cash provided by operating activities was $40,284, compared to $38,771 in 2024, driven by operational growth and lower cash tax payments. Partially offsetting this increase and lowering cash from operations during 2025 were voluntarily pension contributions of approximately $1,150 and advanced cash payments of about $900 to Frontier Communications, a subsidiary of Verizon Communications Inc.
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
On July 2, 2025, we completed the sale of our interest in DIRECTV to TPG and recorded a current note receivable of approximately $3,600, of which we had received $3,100 by the end of 2025, and a long-term note receivable of $500. (See Note 10)
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
In November 2024, we agreed to purchase select spectrum licenses from United States Cellular Corporation (UScellular) for approximately $1,000, subject to closing conditions, including the consummation of UScellular’s sale of its wireless operations and select spectrum assets to T-Mobile US, Inc. We completed our acquisition of these licenses on January 13, 2026, with a cash payment of $1,018.
Read it in 10-K 2026-02-09 at sec.gov ↗
AddedMD&A
On May 21, 2025, we agreed to acquire substantially all of Lumen’s Mass Markets fiber business for $5,750 in cash, subject to purchase price adjustments. At the time of signing, the pending acquisition covered approximately one million fiber customers, and also included fiber network assets that reached more than four million fiber locations. On February 2, 2026, we completed the transaction and expect to manage the customer relationships in our Consumer Wireline business and place the fiber network assets in a new, wholly owned subsidiary. We plan to sell a controlling interest in the subsidiary to an equity partner that will co-invest in the ongoing business, and, as such, it is expected to meet the criteria for discontinued operations.
Read it in 10-K 2026-02-09 at sec.gov ↗
RemovedMD&A
On April 8, 2022, we closed our transaction to combine substantially all of our previous WarnerMedia segment (WarnerMedia) with a subsidiary of Discovery, Inc (Discovery). Upon the separation and distribution of WarnerMedia, the WarnerMedia business met the criteria for discontinued operations. For discontinued operations, we also evaluated transactions that were components of AT&T’s single plan of a strategic shift, including dispositions that did not individually meet the criteria due to materiality, and determined discontinued operations to be comprised of WarnerMedia, Vrio, Xandr and Playdemic Ltd. (Playdemic). These businesses are reflected in the accompanying financial statements as discontinued operations, including for periods prior to the consummation of the WarnerMedia/Discovery Transaction. (See Notes 6 and 24)
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
Subscribers Percent Change (in 000s) 2024 2023 2022 2024 vs. 2023 vs. 2023 2022 Postpaid 89,200 87,104 84,700 2.4% 2.8% Postpaid phone 72,749 71,255 69,596 2.1 2.4 Prepaid 19,023 19,236 19,176 (1.1) 0.3 Reseller 9,628 7,468 6,043 28.9 23.6 Total Mobility Subscribers1 117,851 113,808 109,919 3.6% 3.5% 1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems.
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
In June and November 2020, the FCC issued Declaratory Rulings clarifying the limits on state and local authority to deny applications to modify existing structures to accommodate wireless facilities. In September 2024, the Ninth Circuit Court of Appeals resolved challenges to those Declaratory Rulings, largely sustaining the FCC’s rulings. The decision ensures that the FCC retains the ability to remove state and local regulations that could delay or impede spectrum and technology upgrades on existing cell site facilities.
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
In recent years, the FCC took several actions to make spectrum available for 5G services, including the auction of 280 MHz of mid-band spectrum previously used for satellite service (the “C-Band” auction) and 39 GHz band spectrum. AT&T obtained spectrum in these auctions. The FCC also made 150 MHz of mid-band CBRS spectrum available, to be shared with Federal incumbents, which enjoy priority. In addition, in 2022, the FCC completed Auction 110, in which AT&T won 40 MHz of 3.45 GHz spectrum nationwide at a cost of $9,079. (See Note 6)
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
During the third quarter of 2024, we updated the long-term strategic plan of our Business Wireline reporting unit. The updated plans reflected lower long-term projected future cash flows associated with the industry-wide secular decline, including a faster-than-previously anticipated decline of legacy services. We identified this as an impairment indicator and performed an interim quantitative goodwill impairment test of our Business Wireline reporting unit. The interim impairment test methodology was consistent with our approach for annual impairment testing (see Note 1), using similar models updated with our current view of key inputs and assumptions. We concluded that the calculated fair value of the Business Wireline reporting unit was lower than the book value, resulting in a noncash goodwill impairment charge of $4,422 for the entirety of our Business Wireline reporting unit goodwill.
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
Continuing operations for the years ended December 31, 2024 2023 2022 Cash provided by operating activities $ 38,771 $ 38,314 $ 35,812 Cash used in investing activities (17,490) (19,660) (26,899) Cash used in financing activities (24,708) (15,614) (59,564) At December 31, 2024 2023 Cash and cash equivalents $ 3,298 $ 6,722 Total debt 123,532 137,331
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
During 2024, cash provided by operating activities was $38,771, compared to $38,314 in 2023, reflecting the timing of working capital associated with device payments, as well as the expansion of committed, cost-efficient receivable sales programs, and operational growth, partially offset by higher cash tax payments.
Read it in 10-K 2025-02-12 at sec.gov ↗
RewordedMD&A
Mobility Net Additions Percent Change (in 000s) 2025 2024 2023 2022 2025 vs. 2024 vs. 2024 2023 vs. 2023 2022 Postpaid Phone Net Additions 1,551 1,653 1,744 2,868 (6.2) % (5.2) % (39.2) % Total Phone Net Additions 1,159 1,525 1,801 3,272 (24.0) (15.3) (45.0) Postpaid2 Postpaid1 1,738 2,250 2,315 4,091 (22.8) (2.8) (43.4) Prepaid (536) (102) 128 479 — (73.3) — Reseller 1,112 2,020 1,279 462 (45.0) 57.9 — Mobility Net Subscriber Additions1 Additions2,3 2,314 4,168 3,722 5,032 (44.5) % 12.0 % (26.0) % Postpaid Churn3 Churn4 1.05% 0.92% 0.98% 0.97% 13 BP (6) BP 1 BP Postpaid Phone-Only Phone Churn4 0.90% 0.76% 0.81% 0.81% 14 BP (5) BP — BP 1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. 2In 1In addition to postpaid phones, includes tablets and wearables and other.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
Wearables and other net adds were 430, 44, 430 and 639 and 1,020 for the years ended December 31, 2024, 2023 2025, 2024 and 2022, 2023, respectively. 3Calculated 2Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. 3Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are converted to paying lines. 4Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month by the total number of wireless subscribers at the beginning of that month.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
Depreciation and amortization expense increased in 2024, 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades upgrades, partially offset by lower depreciation from fully depreciated legacy assets and expansion, which we expect to further increase in 2025. impacts from our Open RAN network modernization efforts.
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RewordedMD&A
In 2024, 2025, cash used in financing activities totaled $24,708 $6,386 and was comprised of dividend payments, common and preferred stock repurchases, debt repayments, payments of dividends repayments and vendor financing payments. payments, partially offset by issuances of long-term debt and issuances of preferred interests in a subsidiary.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
The 2024 2025 operating income reflects a decrease an increase in operating income from our Business Wireline business unit, partially offset by increases in our Mobility and Consumer Wireline business units. units, partially offset by a decrease in our Business Wireline business unit.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
Depreciation expense increased in 2024, 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades and expansion, which we expect to further increase in 2025. partially offset by lower depreciation impacts from our network modernization efforts.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
If either the projected rate of long-term growth of cash flows or revenues declined by 0.5%, or if the discount rate increased by 0.5%, the fair values of these wireless licenses would still be higher than the book value.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
The cash generated from operating activities was primarily used to fund capital expenditures and vendor financing payments, repay short-term borrowings and long-term debt, and improvements, make dividend payments to stockholders. stockholders, repurchase preferred and common stock, and repay long-term debt.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
Operations and support expenses decreased in 2024, 2025, driven by lower customer support costs, lower marketing expense costs and savings from cost initiatives, content licensing fees, offset by higher network-related costs as our fiber build scales. expenses and marketing costs.
Read it in 10-K 2026-02-09 at sec.gov ↗
RewordedMD&A
For the year ended December 31, 2024, 2025, when compared to the year ended December 31, 2023, 2024, we increased decreased our pension discount rate by 0.70%, 0.20%, resulting in a decrease an increase in our pension plan benefit obligation of $1,994, $680, and increased decreased our postretirement discount rate by 0.60%, 0.30%, resulting in a decrease an increase in our postretirement benefit obligation of $317. $167.
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RewordedMD&A
Noncash charges in 2024 also included primarily related to a goodwill impairment charge of $4,422 associated with our Business Wireline reporting unit as well as restructuring charges, including termination fees associated with our network modernization program to deploy commercial scale open radio access network (Open RAN).
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RewordedMD&A
Operations and support expenses decreased in 2024, 2025, primarily driven by lower personnel and customer support costs associated with ongoing transformation initiatives, lower network access and customer support expenses and the contribution of our cybersecurity business. initiatives.
Read it in 10-K 2026-02-09 at sec.gov ↗
Quiet changesMD&A
We expect additional Additional states may seek to impose net neutrality requirements in the future.
Read it in 10-K 2026-02-09 at sec.gov ↗