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A Network of Possibilities
AT&T Inc. 2010 Annual Report

Table of contents

  • Page 1
    A Network of Possibilities AT&T Inc. 2010 Annual Report

  • Page 2
    .... When all that comes together - when intelligence, connectivity and ideas converge - a world of possibilities opens. At AT&T, it all adds up to new growth opportunities as we rethink how we live and work ...bring people together, making them more productive ...and collaborate to drive innovation...

  • Page 3
    ... and voice experience. 2010 Results Our leadership in these areas - combined with solid execution across our business - has driven industry-leading growth. In 2010: Wireless connections on our network increased by 8.9 million, the largest annual gain in our history. Wireless data revenues increased...

  • Page 4
    ... stronger, both operationally and financially, than we were going in - with improving revenue trends, expanding margins and a more growth-oriented business. In the fourth quarter, 73 percent of our revenues came from mobility, wireline data and managed services, and those revenues were growing at...

  • Page 5
    ... creating a new generation of opportunities for business customers. Using our network and our solutions, companies arm their employees with seamless access to applications and data, whether they are in the office, at home or on the move around the globe. The result is faster decision-making, quicker...

  • Page 6
    ...be on a wired or wireless network. We're uniquely positioned to make this kind of cross-platform access a reality. In fact, we've already started to move in that direction with services like U-verse Mobile, which lets customers download and watch video content on their wireless devices. 4 AT&T Inc...

  • Page 7
    ... we have in our homes and our businesses will operate better and more intelligently with wireless connectivity. Driving Innovation, Empowering People and Communities In all of these areas, AT&T has a rich history of investment and new service development. But the amount of innovation taking...

  • Page 8
    A Network of 6 AT&T Inc.

  • Page 9
    Intelligence ...rethinking how we live and work Connections ...bringing people together, making them more productive Ideas ...collaborating to drive innovation AT&T Inc. 7

  • Page 10
    ... they operate. Supported by AT&T's global network capabilities, Kirsen's container monitoring devices allow valuable cargo shipments to proactively report location and status - meaning more peace of mind for manufacturers, logistics providers, shipping lines, insurance companies and even customs and...

  • Page 11
    ... international data capabilities. Because AT&T's wireless network operates on the global standard, containers can be monitored wirelessly, virtually anywhere. And, of course, the AT&T global network is there when needed - providing the reliable, highly secure data communications Kirsen's customers...

  • Page 12
    SM InTELLIGEnCE With more than 3 million AT&T U-verse TV subscribers, AT&T delivered wireline consumer revenue growth in the second half of 2010. And more than three-fourths of AT&T U-verse TV subscribers, like Jim Olvera, choose three or more services from AT&T, driving 12 consecutive quarters of ...

  • Page 13
    ... that's connected. And because he's with AT&T, that's just about anywhere. Jim moved his office into his home, where AT&T U-verse High Speed Internet enables him to maintain Web galleries for clients and manage his business, all online. "The beauty of working from home is more time with my family...

  • Page 14
    ... Rich Rudow (right), general manager for Trimble Outdoors. Rich and Kris Wagner, marketing director for Trimble Outdoors, are pictured on South Mountain near Trimble Outdoors' headquarters in Arizona, using the AllSport GPSTM app, one of a suite of Trimble applications available on AT&T devices. 12...

  • Page 15
    ... same time that AT&T formed its own vision of how mobile data communications could dramatically expand the capabilities of mobile devices well beyond simply making phone calls. The result has been a strong relationship, reinforced by AT&T's open and collaborative approach to working with developers...

  • Page 16
    ... USOC manage traffic to its website, teamusa.org, freeing the USOC to focus on its mission of supporting Olympic and Paralympic athletes in achieving sustained competitive excellence. And with Synaptic Hosting, the USOC can provide the video and interactive content that its fans demand. Pictured are...

  • Page 17
    ... Hosting provides a Web hosting solution that expands and contracts based on the amount of traffic to the website. When traffic rises, the USOC gets additional bandwidth and capacity without needing to install additional hardware. And when demand slows down, the USOC isn't required to pay for more...

  • Page 18
    COnnECTIOnS With devices like the BlackBerry® TorchTM smartphone, AT&T delivers the mobile broadband capabilities that keep busy people like Melissa Galvan (center) going. AT&T is the mobile broadband leader, with more smartphones than any other carrier. 16 AT&T Inc.

  • Page 19
    ... the best BlackBerry smartphone yet. When she's on the go, Melissa gets local information from apps to help her find the lowest prices on gas and navigate around traffic jams so she's always on time for class. When she has free time, she makes plans with up to 10 friends at once using the smartphone...

  • Page 20
    ... show significant improvements for patients using the DiabetesManager® portion of the mHealth Solution. 3 "AT&T is committed to mHealth solutions that help improve quality of care and patient outcomes," says Randall Porter, assistant vice president, Product Marketing Management for AT&T. 18 AT...

  • Page 21
    ...to develop solutions that combine mobility technologies, devices, connectivity and applications to drive down medical costs and help patients live longer, better lives. A case in point: the mHealth Solution from AT&T and WellDoc®. Recognizing that nearly no one leaves home without a wireless device...

  • Page 22
    ... Capital, and Michael Mullany, VP Products for app developer Sencha, in Palo Alto. Sequoia connected Sencha with AT&T through the fast-pitch process...them bring products to market more quickly. We are thrilled to see AT&T working proactively with the venture and start-up communities," says Goetz. 20...

  • Page 23
    ... tech innovation speed-dating - to evaluate ideas. AT&T also created innovation centers to bring together all the resources needed to fast-track projects to market. And AT&T moved quickly to open its network to developers in unprecedented ways, giving them easy access to network capabilities, better...

  • Page 24
    A Network of Possibilities. 22 AT&T Inc.

  • Page 25
    What does it mean for our stockholders? AT&T Inc. 23

  • Page 26
    Our network of possibilities opens new doors to growth opportunities ...expanding our industry leadership and enabling us to return value to you ...Take a look. 24 AT&T Inc.

  • Page 27
    ...percent year over year. 47% Wireless 6% Advertising Solutions/Other $3.35 2010 AT&T earnings per diluted share increased 63.4 percent (10.6 percent excluding significant items) over 2009. 22% Wireline Voice 25% Wireline Data/ Managed Services $35.0B AT&T cash from operating activities in 2010...

  • Page 28
    ...326 4,704 $4.7 2,661 2010 85.1 Wireless Data Revenues 2009 Wireless data revenues - from messaging, Internet access, access to applications and related services - increased 28.7 percent in 2010. At the end of 2010, 61 percent of AT&T postpaid wireless subscribers were on a data plan. In billions...

  • Page 29
    ... Best Mobile Phone Coverage In The World by Business Traveler magazine. $148.2M Total 2010 giving by AT&T and its employees to advance education, strengthen communities and improve lives. Frost & Sullivan AT&T is the Company of the Year for North American Business Communication Services. Current...

  • Page 30
    ... across the U.S. is just a small part of our company's $100 million Aspire initiative to address the high school drop-out crisis in the U.S. Aspire is the biggest and most significant investment in education in AT&T's history. To learn more, please visit www.att.com/education-news. Says Jean Rebecca...

  • Page 31
    ... Review 2010 Selected Financial and Operating Data Management's Discussion and Analysis of Financial Condition and Results of Operations Consolidated Financial Statements Notes to Consolidated Financial Statements Report of Management Report of Independent Registered Public Accounting Firm Report...

  • Page 32
    ... outstanding with dilution (000,000) End of period common shares outstanding (000,000) Operating Data Wireless connections (000)3 In-region network access lines in service (000) Broadband connections (000)4,5 Number of employees 1 2 $124,280 $104,707 $ 19,573 $ 2,994 $ 762 $ 897 $ (1,162) $ 20...

  • Page 33
    ... and customer usage. Adding to the increase, we had higher wireline data revenue largely due to growth in IP-related services, driven by AT&T U-verseSM (U-verse) subscriber growth. These increases were partially offset by the continuing decline in voice revenues, due to decreasing access lines, and...

  • Page 34
    ... 2010 and 11.2% in 2009. Customers disconnecting access lines switched to wireless, Voice over Internet Protocol (VoIP) and cable offerings or terminated service permanently as businesses closed or consumers left residences. While we lose wireline voice revenues, we have the opportunity to increase...

  • Page 35
    ...and data communications services, AT&T U-verse TV, high-speed broadband and voice services and managed networking to business customers. Additionally, we receive commissions on sales of satellite television services offered through our agency arrangements. The Advertising Solutions segment accounted...

  • Page 36
    ...on lower-priced data-only plans compared with customers on our postpaid plans. During 2010, we also continued to see an increase in gross and net additions related to the sale of integrated devices (handsets which allow Internet access as well as voice). Lower net postpaid additions in 2010 and 2009...

  • Page 37
    ... wide variety of service plans in addition to offering a broad handset line. Our postpaid customers typically sign a two-year contract, which includes discounted handsets and early termination fees. We also offer data plans at different price levels, beginning as low as fifteen dollars per month, to...

  • Page 38
    ...of Financial Condition and Results of Operations (continued) Dollars in millions except per share amounts Service revenues are comprised of local voice and data services, roaming, long-distance and other revenue. Service revenues increased $4,947, or 10.2%, in 2010 and $4,314, or 9.7%, in 2009. The...

  • Page 39
    ... competition, as customers either reduced usage or disconnected traditional landline services and switched to alternative technologies, such as wireless and VoIP. Our strategy is to offset these line losses by increasing non-access-line-related revenues from customer connections for data, video...

  • Page 40
    ... and repair services, certain network planning and engineering expenses, information technology and property taxes. Operations and support expenses also include bad debt expense; advertising costs; sales and marketing functions, including customer service centers; real estate costs, including...

  • Page 41
    ... U-verse High Speed Internet and satellite broadband. 5 Satellite service includes connections under our agency and resale agreements. 6 Includes consumer U-verse VoIP connections of 1,680 at December 31, 2010, 954 at December 31, 2009 and 224 at December 31, 2008. 7 Total switched access lines that...

  • Page 42
    ... and mobile navigation devices). We expect that all our major customer categories will continue to increase their use of Internet-based broadband/data services. We expect continuing declines in traditional access lines and in print directory advertising. Where available, our U-verse services have...

  • Page 43
    ... wireless, U-verse and strategic business services areas, will apply some pressure to our operating income margin. In addition, as we complete readying our Long-Term Evolution (LTE) technology for its intended use, we will no longer capitalize interest on this spectrum. Market Conditions During 2010...

  • Page 44
    ... data communications. As of December 31, 2010, we served 95.5 million customers. We have also begun transitioning our network to more advanced LTE technology. We continue to expand the number of locations, including airports and cafés, where customers can access broadband Internet connections using...

  • Page 45
    ... network. COMPETITION Competition continues to increase for telecommunications and information services. Technological advances have expanded the types and uses of services and products available. In addition, lack of or a reduced level of regulation of comparable alternatives (e.g., cable, wireless...

  • Page 46
    ... and Results of Operations (continued) Dollars in millions except per share amounts Cox Communications Inc. and Time Warner Cable Inc., for local, high-speed Internet and video services customers and other smaller telecommunications companies for both long-distance and local services customers. Our...

  • Page 47
    ... rate at which the projected benefit obligations could be effectively settled or paid out to participants. We determined our discount rate based on a range of factors, including a yield curve comprised of the rates of return on several hundred high-quality, fixed-income corporate bonds available...

  • Page 48
    ... licenses using a discounted cash flow model (the Greenfield Approach). The Greenfield Approach assumes a company initially owns only the wireless FCC licenses, and then makes investments required to build an operation comparable to the one that currently utilizes the licenses. We utilized a 17-year...

  • Page 49
    ... Accounting Standards Board (FASB) issued "Multiple-Deliverable Revenue Arrangements" (ASU 2009-13), which addresses how revenues should be allocated among all products and services included in our bundled sales arrangements. It establishes a selling price hierarchy for determining the selling price...

  • Page 50
    ...new law and its related regulations on the level of healthcare benefits we currently provide to active employees and retirees. Wireless Transactions In June 2010, we acquired certain wireless properties, including FCC licenses and network assets from Verizon Wireless for $2,376 in cash and increased...

  • Page 51
    ...$29 related to other activities. Our capital expenditures are primarily for our wireless and wireline subsidiaries' networks, our U-verse services, and support systems for our communications services. Total capital spending in 2010 was $19,530, which was a $2,976 increase from 2009. Capital spending...

  • Page 52
    ... paper and other short-term bank borrowings. During 2010, debt repayments totaled $9,294 and consisted of: • $5,668 in repayments of long-term debt with a weighted-average interest rate of 2.86%. • $3,000 in the early redemption of the New Cingular Wireless Services, Inc. 7.875% notes...

  • Page 53
    ... 364-day Agreement. Other Our total capital consists of debt (long-term debt and debt maturing within one year) and stockholders' equity. Our capital structure does not include debt issued by our international equity investees. Our debt ratio was 37.1%, 41.4% and 43.8% at December 31, 2010, 2009 and...

  • Page 54
    ...for 2014 and 2015, and $5 in the aggregate, thereafter. Certain termination fees are excluded from the above table, as the fees would not be paid every year and the timing of such payments, if any, is uncertain. MARKET RISK We are exposed to market risks primarily from changes in interest rates and...

  • Page 55
    ...liability) represents the amount we would receive (pay) if we had exited the contracts as of December 31, 2010. Maturity 2011 2012 2013 2014 2015 Thereafter Total Fair Value 12/31/10 Interest Rate Derivatives Interest Rate Swaps: Receive Fixed/Pay Variable Notional Amount Maturing Weighted-Average...

  • Page 56
    Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Dollars in millions except per share amounts STOCK PERFORMANCE GRAPH Comparison of Five Year Cumulative Total Return...Telecom). Total return equals stock price appreciation plus reinvestment of dividends. 54 AT...

  • Page 57
    ... to access these markets, severely affecting our business operations. Changes in available technology could increase competition and our capital costs. The telecommunications industry has experienced rapid changes in the last several years. The development of wireless, cable and IP technologies has...

  • Page 58
    ...on price, service/device offerings, call quality, coverage area and customer service. In addition, we are likely to experience growing competition from providers offering services using alternative wireless technologies and IP-based networks as well as traditional wireline networks. We expect market...

  • Page 59
    ... cost less to operate than traditional networks. Our competitors, many of which are newer companies, are deploying this IP-based technology. In order to continue to offer attractive and competitively priced services, we are deploying a new broadband network to offer IP-based voice, data and video...

  • Page 60
    ... and regulations that reduce our incentive to invest in our networks, resulting in lower revenue growth and/or higher operating costs. • Our ability to absorb revenue losses caused by increasing competition, including offerings that use alternative technologies (e.g., cable, wireless and VoIP...

  • Page 61
    ... of Income Dollars in millions except per share amounts 2010 2009 2008 Operating Revenues Wireless service Voice Data Directory Other Total operating revenues Operating Expenses Cost of services and sales (exclusive of depreciation and amortization shown separately below) Selling, general and...

  • Page 62
    ... Assets Total Assets Liabilities and Stockholders' Equity Current Liabilities Debt maturing within one year Accounts payable and accrued liabilities Advanced billing and customer deposits Accrued taxes Dividends payable Total current liabilities Long-Term Debt Deferred Credits and Other Noncurrent...

  • Page 63
    ...tax benefits (3,280) Net (gain) loss from impairment and sale of investments (802) Actuarial loss on pension and postretirement benefit plans 2,521 (Income) loss from discontinued operations (779) Changes in operating assets and liabilities: Accounts receivable (99) Other current assets 717 Accounts...

  • Page 64
    ... except per share amounts 2010 Shares Amount Shares 2009 Amount Shares As Adjusted 2008 Amount Common Stock Balance at beginning of year Issuance of shares Balance at end of year Additional Paid-In Capital Balance at beginning of year Issuance of treasury shares Share-based payments Change related...

  • Page 65
    ... per share amounts 2010 Amount 2009 Amount As Adjusted 2008 Amount Accumulated Other Comprehensive Income (Loss) Attributable to AT&T, net of tax: Balance at beginning of year Foreign currency translation adjustments, net of taxes of $146, $70, and $(239) Net unrealized gains (losses) on available...

  • Page 66
    ... the accounts of the Company and our majority-owned subsidiaries and affiliates. Our subsidiaries and affiliates operate in the communications services industry both domestically and internationally, providing wireless and wireline communications services and equipment, managed networking, wholesale...

  • Page 67
    ... Effect of Change At December 31, 2010 or for the year ended Cost of services and sales (exclusive of depreciation and amortization shown separately below) Selling, general and administrative Depreciation and amortization1,2 Income tax (benefit) expense2 Income from Continuing Operations Net Income...

  • Page 68
    ... usage (e.g., minutes of traffic/bytes of data processed), period of time (e.g., monthly service fees) or other established fee schedules. Our wireless service revenues are billed either in advance, arrears or are prepaid. Our wireless Rollover® rate plans include a feature whereby unused anytime...

  • Page 69
    ... radio frequency spectrum to provide wireless communications services. While FCC licenses are issued for a fixed time (generally 10 years), renewals of FCC licenses have occurred routinely and at nominal cost. Moreover, we have determined that there are currently no legal, regulatory, contractual...

  • Page 70
    ... business applications and integration solutions to approximately 18,000 customers worldwide. In conjunction with the sale, we divested $649 of goodwill and other intangible assets. We also entered into a transition services agreement with IBM related to short-term support of Sterling's operations...

  • Page 71
    ...Centennial's operations in eight service areas in Louisiana and Mississippi. In August 2010, we sold those eight service areas for $273 in cash. Other Dispositions In 2010, we also sold our domestic Japanese outsourcing services company for $109. In 2009, we sold a professional services business for...

  • Page 72
    ...voice and data communications services, AT&T U-verseSM TV, high-speed broadband and voice services (U-verse) and managed networking to business customers. Additionally, we receive commissions on sales of satellite television services offered through our agency arrangements. The Advertising Solutions...

  • Page 73
    ... to AT&T consolidated results, for 2010, 2009 and 2008 are as follows: At December 31, 2010 or for the year ended Wireless Wireline Advertising Solutions Other Consolidations Consolidated Results Total segment operating revenues Operations and support expenses Depreciation and amortization expenses...

  • Page 74
    ... INTANGIBLE ASSETS Changes in the carrying amounts of goodwill, by segment (which is the same as the reporting unit for Wireless, Wireline and Advertising Solutions), for the years ended December 31, 2010 and 2009, were as follows: Wireless Wireline Advertising Solutions Other Total Balance as of...

  • Page 75
    ... $4,482 for the year ended December 31, 2008. Amortization expense is estimated to be $2,007 in 2011, $1,325 in 2012, $739 in 2013, $346 in 2014 and $214 in 2015. In 2009, Mobility wrote off $2,963 in fully amortized intangible assets (primarily customer lists). We review other long-lived assets for...

  • Page 76
    ... paper and other short-term bank borrowings. During 2010, debt repayments totaled $9,294 and consisted of: • $5,668 in repayments of long-term debt with a weightedaverage interest rate of 2.86%. • $3,000 for the early redemption of the New Cingular Wireless Services, Inc. 7.875% notes...

  • Page 77
    .... The Four-Year Agreement We can request the lenders to further increase their commitments (i.e., raise the available credit) up to an additional $2,000 provided no event of default has occurred. The obligations of the lenders to provide advances will terminate on December 20, 2014, unless prior...

  • Page 78
    ... in 2012 and 2013, $52 in 2014 and 2015, and $252 for years thereafter. Our short-term investments, other short- and long-term held-to-maturity investments (including money market securities) and customer deposits are recorded at amortized cost, and the respective carrying amounts approximate fair...

  • Page 79
    ... 31, 2009. December 31, 2010 Level 1 Level 2 Level 3 Total Available-for-Sale Securities Domestic equities International equities Fixed income bonds Asset Derivatives Interest rate swaps Cross-currency swaps Interest rate locks Foreign exchange contracts Liability Derivatives Cross-currency swaps...

  • Page 80
    ... quarter. In the years ended December 31, 2010, and December 31, 2009, no ineffectiveness was measured. Periodically, we enter into and designate interest rate locks to partially hedge the risk of changes in interest payments attributable to increases in the benchmark interest rate during the period...

  • Page 81
    ...liability balance to reflect the impact of this change. In September 2010, we reached a settlement with the Internal Revenue Service (IRS) on tax basis calculations related to a 2008 restructuring of our wireless operations. The IRS settlement resolves the uncertainty regarding the amount and timing...

  • Page 82
    ... operations before income taxes is as follows: 2010 2009 2008 Taxes computed at federal statutory rate Increases (decreases) in income taxes resulting from: State and local income taxes - net of federal income tax benefit Healthcare Reform Legislation IRS Settlement - 2008 Wireless Restructuring...

  • Page 83
    ... monthly amount. Management employees of former ATTC, BellSouth, AT&T Mobility LLC and new hires after 2006 participate in cash balance pension plans. Nonmanagement employees' pension benefits are generally calculated using one of two formulas: benefits are based on a flat dollar amount per year...

  • Page 84
    ... funding is determined in accordance with ERISA regulations. Amounts recognized on our consolidated balance sheets at December 31 are listed below: Pension Benefits 2010 2009 Postretirement Benefits 2010 2009 Current portion of employee benefit obligation1 $ - Employee benefit obligation2 (6,296...

  • Page 85
    ... cost in recent years. Our assumed annual healthcare cost trend rate for 2011 and 2010 is 5.00%. Discount rate for determining projected benefit obligation at December 31 Discount rate in effect for determining net cost Long-term rate of return on plan assets Composite rate of compensation increase...

  • Page 86
    ... for all future contract periods). In August 2009, the Company announced that the annual dollar caps would be enforced for some groups beginning in 2010, with alternative uncapped plans available. We have accounted for participants moving to these alternative plans. Plan Assets Plan assets consist...

  • Page 87
    ... of public companies considered comparable to the private companies being valued. Such market data used to determine adjustments to accounts for cash flows and company-specified issues include current operating performance and future expectations of the investments, changes in market outlook, and...

  • Page 88
    ... and Liabilities at Fair Value as of December 31, 2010 Level 1 Level 2 Level 3 Total Non-interest bearing cash Interest bearing cash Foreign exchange contract Equity securities: Domestic equities International equities Fixed income securities: Asset-backed securities Mortgage-backed securities...

  • Page 89
    ... Market value of securities on loan: Equity securities: International Domestic Fixed income securities: Other corporate and other bonds and notes U.S. Government and governmental agencies Commingled funds: Private equity assets Securities lending collateral Receivable for foreign exchange contracts...

  • Page 90
    ... share amounts The table below sets forth a summary of changes in the fair value of the Level 3 pension and postretirement assets for the year ended December 31, 2010: EquitiesDomestic Fixed Income Funds Hedge Funds Private Equity Funds Real Assets Pension Assets Total Balance, beginning of year...

  • Page 91
    ...Level 1 Level 2 Level 3 Total Non-interest bearing cash Interest bearing cash Foreign exchange contract Equity securities: Domestic equities International equities Fixed... (liabilities) include accounts receivable, accounts payable and net adjustment for securities lending payable. AT&T Inc. 89

  • Page 92
    ... Market value of securities on loan: Equity securities: International Domestic Fixed income securities: Other corporate and other bonds and notes U.S. Government and governmental agencies Commingled funds: Private equity assets Securities lending collateral Receivable for foreign exchange contracts...

  • Page 93
    ... Periodic Benefit Cost 2010 2009 2008 2011 2012 2013 2014 2015 Years 2016 - 2020 $ 5,912 6,191 4,008 4,002 4,025 20,211 $ 2,594 2,558 2,546 2,483 2,430 11,874 $(114) (124) (134) (144) (154) (926) Supplemental Retirement Plans We also provide certain senior- and middle-management employees with...

  • Page 94
    ... the savings plans is fulfilled with purchases of our stock on the open market or company cash. Benefit cost is based on the cost of shares or units allocated to participating employees' accounts and was $607, $586 and $664 for the years ended December 31, 2010, 2009 and 2008. NOTE 12. SHARE-BASED...

  • Page 95
    ..., 2010, and changes during the year then ended is presented as follows (shares in millions): Nonvested Stock Units Shares Weighted-Average Grant-Date Fair Value NOTE 13. STOCKHOLDERS' EQUITY From time to time, we repurchase shares of common stock for distribution through our employee benefit plans...

  • Page 96
    ... adjusted for the change in accounting policy as discussed in Note 1. No customer accounted for more than 10% of consolidated revenues in 2010, 2009 or 2008. A majority of our employees are represented by labor unions as of year-end 2010. Consolidated Statements of Income 2010 2009 2008 NOTE...

  • Page 97
    ...Quarterly earnings per share impacts may not add to full-year earnings per share impacts due to the difference in weighted average common shares for the quarters versus the weighted average common shares for the year. Amounts for 2009 are adjusted for the change in accounting policy as discussed in...

  • Page 98
    ... and fair presentation of published financial statements. AT&T management assessed the effectiveness of the company's internal control over financial reporting as of December 31, 2010. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the...

  • Page 99
    ... return on plan assets related to its pension and other postretirement benefit plans in 2010. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2010...

  • Page 100
    ...United States), the consolidated balance sheets of the Company as of December 31, 2010 and 2009, and the related consolidated statements of income, changes in stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2010 and our report dated February 28, 2011...

  • Page 101
    ... P. Upton,* 72 (6,7) Chief Executive Officer Bank One Corporation Director since 1999 Ameritech Director 1991-1999 Background: Banking President and Chief Executive Officer Aromatique, Inc. Director since 1993 Background: Manufacturing and marketing of decorative fragrances James H. Blanchard...

  • Page 102
    ...Bill Blase Jr., 55 Senior Executive Vice PresidentHuman Resources Ralph de la Vega, 59 President and Chief Executive Officer AT&T Mobility and Consumer Markets Ron Spears, 62 Senior Executive Vice PresidentExecutive Operations Ray Wilkins Jr., 59 Chief Executive OfficerAT&T Diversified Businesses...

  • Page 103
    ...&T Inc. is available on the Internet at www.att.com. Annual Meeting The annual meeting of stockholders will be held at 9:00 a.m. Central time Friday, April 29, 2011, at: Statehouse Convention Center 1 Statehouse Plaza Little Rock, Arkansas 72201 Printed on recycled paper Corporate Offices and Non...

  • Page 104
    AT&T Inc. 208 S. Akard St. Dallas, TX 75202 att.com