AT&T Inc. Dollars in millions except per share amounts Consolidated Statements of Income 2019 2018 2017 Operating Revenues Service 163,499 152,345 145,597 Equipment 17,694 18,411 14.949 Total operating revenues 181,193 170,756 60,546 Operating Expenses Cost of revenues Equipment 18,653 19,786 18,709 Broadcast, programming and operations 31,132 26,727 21,159 Other cost of revenues (exclusive of depreciation and amortization shown separately below) 34.356 32,906 37,942 Selling, general and administrative 39.422 36.765 35,465 Asset abandonments and impairments 1,458 46 2,914 Depreciation and amortization 28,217 28,430 24,387 Total operating expenses 153,238 144,660 140,576 Operating Income 27,955 26,096 19,970 Other Income (Expense) Interest expense (8,422) 7,957 6,300) Equity in net income (loss) of affiliates 6 48 (128) Other income (expense) - net (1,071) 5,782 1.597 Total other income (expense) 9,487) 1,223 4,831 Income Before Income Taxes 18,468 24,873 15,139 Income tax (benefit) expense 3.493 4,920 14,708 Net Income 14,975 19.953 29,847 Less: Net Income Attributable to Noncontrolling Interest 1,072 583 397 Net Income Attributable to AT&T $ 13,903 $ 19,370 $ 29,450 Less: Preferred Stock Dividends (3) Net Income Attributable to Common Stock 13.900 S 19,370 $ 29,450 Basic Earnings Per Share Attributable to Common Stock 1.90 2.85 4.7 A tA Diluted Earnings Per Share Attributable to Common Stock 1.89 S 2.85 4.76 The accompanying notes are an integral part of the consolidated financial statements. 62AT&T Inc. Dollars in millions except per share amounts Consolidated Balance Sheets December 31, 2019 2018 Assets Current Assets Cash and cash equivalents S 12,130 $ 5,204 Accounts receivable - net of allowances for doubtful accounts of $1.235 and $907 22,636 26,472 Prepaid expenses 1,631 2.047 Other current assets 18,364 7.704 Total current assets 54,761 1,427 Noncurrent inventories and theatrical film and television production costs 12,434 7,713 Property, Plant and Equipment - Net 130,128 131,473 Goodwill 146,241 146,370 Licenses - Net 97,907 96,144 Trademarks and Trade Names - Net 23,567 24,345 Distribution Networks - Net 15,345 17,069 Other Intangible Assets - Net 20,798 26,269 Investments in and Advances to Equity Affiliates 3,695 6,245 Operating lease right-of-use assets 24,039 Other Assets 22,754 24,809 Total Assets S 551,669 $ 531,864 Liabilities and Stockholders' Equity Current Liabilities Debt maturing within one year S 11,838 $ 10,255 Accounts payable and accrued liabilities 45,956 43,184 Advanced billings and customer deposits 6,124 5,948 Accrued taxes 1,212 1,179 Dividends payable 3,781 3,854 Total current liabilities 68,91 64,420 Long-Term Debt 151,309 166,250 Deferred Credits and Other Noncurrent Liabilities Deferred income taxes 59,502 57,859 Postemployment benefit obligation 18,788 19,218 Operating lease liabilities 21,804 Other noncurrent liabilities 29,421 30,233 Total deferred credits and other noncurrent liabilities 129,515 107,310 Stockholders' Equity Preferred stock ($1 par value, 5% cumulative, 10,000,000 authorized, 48,000 shares issued and outstanding at December 31, 2019 and 0 issued and outstanding at December 31, 2018) Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2019 and December 31, 2018: issued 7,620,748,598 at December 31, 2019 and at December 31, 2018) 7,621 7.621 Additional paid-in capital 126,279 125,525 Retained earnings 57,936 58,753 Treasury stock (366,193,458 at December 31, 2019 and 339,120,073 at December 31, 2018, at cost) (13,085) (12,059) Accumulated other comprehensive income 5,470 4,249 Noncontrolling interest 17,713 9.795 Total stockholders' equity 201,934 193,884 Total Liabilities and Stockholders' Equity S 551,669 $ 531,864 The accompanying notes are an integral part of the consolidated financial statements