What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to update investors on AT&T's strategic repositioning and financial outlook by disclosing significant business dispositions and providing supplemental pro forma financial information to illustrate the impact of these changes.

When is the WarnerMedia transaction with Discovery expected to close?

The transaction to combine AT&T's WarnerMedia segment with Discovery, Inc. is expected to close in the second quarter of 2022, subject to approval by Discovery shareholders and customary closing conditions, including regulatory approvals.

How is AT&T redefining its 'free cash flow' metric?

AT&T is updating its definition of free cash flow to include payments for vendor financing, which are classified as financing activities. This metric is used by management to measure cash available for debt repayment and shareholder returns.

What should investors be aware of regarding the supplemental pro forma information?

Investors should be aware that the supplemental pro forma information is provided for informational purposes only, reflecting historical results as if certain dispositions occurred earlier. It is not intended to be a complete financial presentation and may differ materially from AT&T's actual future financial performance upon the closing of transactions like the WarnerMedia/Discovery deal.

AT&T INC. 8-K: Regulation FD

Summary

AT&T Inc. (T) filed an 8-K on March 11, 2022, to provide investors with an update on its strategic repositioning and financial outlook. The report highlights significant business dispositions, most notably the pending combination of its WarnerMedia segment with Discovery, Inc., expected to close in the second quarter of 2022. Other disclosed dispositions include Xandr's marketplace component, Playdemic, Otter Media, Vrio (Latin America video operations), and the U.S. video business (DIRECTV) which is now accounted for under the equity method. These strategic actions are aimed at streamlining AT&T's business and focusing on its core telecom operations. The company is also providing supplemental pro forma information to reflect these changes, presenting historical operating results as if these businesses had been excluded since January 1, 2020. Investors are cautioned that this pro forma information is for illustrative purposes and may differ materially from future financial filings upon closing of the WarnerMedia/Discovery transaction.

Key Highlights

1AT&T is providing an update on its strategy and financial outlook, focusing on significant business dispositions.
2The combination of WarnerMedia with Discovery is expected to close in Q2 2022, subject to shareholder and regulatory approvals.
3Dispositions include the sale of Xandr's marketplace component (expected 2022 close), Playdemic, Otter Media, Vrio, and the deconsolidation of the U.S. video business (DIRECTV).
4Supplemental pro forma financial information is being provided to reflect the impact of these asset repositionings.
5The company is updating its definition of free cash flow to include payments for vendor financing, a non-GAAP metric.
6Historical results will be recast to reflect continuing operations separate from discontinued operations, with the exception of the Video business due to continuing involvement.
7Investors are cautioned that the pro forma information is for informational purposes and may differ materially from future actual results.

AT&T INC. 8-K Report, Regulation FD Disclosure (Mar 11, 2022)

Summary

Key Highlights

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