AT&T Uverse 2011 Annual Report Download

Download and view the complete annual report

Please find the complete 2011 AT&T Uverse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

getting to the
future first
AT&T Inc. 2011 Annual Report

Table of contents

  • Page 1
    getting to the future first AT&T Inc. 2011 Annual Report

  • Page 2

  • Page 3
    ... to accelerate - encompassing network providers, device makers, app developers and customers. This is without question one of the largest, fastest technology waves in history. As a result, how we live and do business is being reimagined at breakneck speed. • The mobile Internet has made virtually...

  • Page 4
    ... doubling in 2011 alone. • Mobile data speeds on our network increased dramatically. The download speeds available on our 4G LTE network today are more than 50X faster than our 2G network five years ago. 2 AT&T Inc. • The number of smartphones, tablets and other advanced mobile Internet devices...

  • Page 5
    ... of 2013. • We also significantly expanded our advanced capabilities for business customers - whose requirements are increasingly focused on mobile broadband connectivity - by creating a robust Internet cloud services platform for computing, storage, security and mobile apps. And as we built these...

  • Page 6
    ... - so that our customers and our shareowners benefit. • And in our own operations, this has driven significant changes in our business mix. • Five years ago, wireless, wireline data and managed services represented roughly half of our overall revenues. Today, they account for more than three...

  • Page 7
    ...way on a number of fronts to help increase network capacity and mobile broadband accessibility while we continue to pursue additional spectrum. • We've executed a number of smaller spectrum transactions. • We've worked aggressively to add cell sites and make the most of existing spectrum. • We...

  • Page 8
    ... five years of the mobile broadband revolution have been, the next five years will surpass them by an order of magnitude. • Why? Because our networks now provide super-high-speed connectivity to a virtually unlimited amount of content and number of applications that live in the Internet cloud...

  • Page 9
    ... vital signs can be transmitted automatically to doctors for real-time diagnostics and alerts plus seamless record-keeping. This technology can help a growing number of seniors live more securely and independently at home. • Cars will become smart devices - monitoring their own systems, alerting...

  • Page 10
    ... charging when the price of electricity is lowest. All from their smartphone. MOVING TO THE CLOUD As we expand our deployment of 4G LTE wireless technology and cloud services that enable businesses to easily and cost effectively manage network capacity, we're opening up a new world of possibilities...

  • Page 11
    Whether working on projects like Boston's Harbor Islands Pavilion (shown here) or analyzing a structure's potential risk from earthquakes, engineering firm Simpson Gumpertz & Heger Inc. relies on cloud solutions from AT&T. And with access to the cloud from smartphones and tablets, the "office" can ...

  • Page 12
    ... the combination of speed and connectivity they need to keep their business growing. Only AT&T's network lets Lizzie and Rebecca download files and video three times faster on iPhone 4S and surf the Web and talk on their phones at the same time. So when they're on the phone with a reporter, they can...

  • Page 13
    ... in their homes. • Apps to expand the viewing experience to all three screens - wireless, PC and TV - and make it more social. • The ability to pause and rewind live TV on any U-verse receiver in the home. In 2012, we'll continue to bring U-verse services to more families and businesses and to...

  • Page 14
    ... of mobile broadband into our customers' hands; the technicians who bring our award-winning U-verse services into millions of homes; and the specialized consultants who work to make businesses more competitive - from startups working out of their homes to multinational corporations that operate on...

  • Page 15
    Store employees Dennis Foster and Lindsay Wadelton are proud of the new AT&T Retail Innovation Center - a live laboratory that tests new ideas for enhancing customer service. Says Dennis, "This place is like nothing I've ever seen!" AT&T Inc. 13

  • Page 16
    ... www.att.com, and in 2011 we processed more than 200 million transactions through the site. Last year, we redesigned our site and deployed new technology to help customers get what they need faster and more easily, whether they're shopping, managing their accounts or looking for answers to questions...

  • Page 17
    ... and slow response times were compromising customer service. Today, with the GPS-powered Telenav Asset TrackerTM from AT&T, Lou and his staff at their home office in Wyoming, Iowa, can instantly track all their trucks' locations and give customers real-time updates. And when the going gets tough due...

  • Page 18
    ... AT&T Labs makes big bets that pay off in months, or even years. AT&T Foundry moves quickly on new ideas that come to life in a matter of days and weeks. In 2011, AT&T opened three AT&T Foundry locations. These innovation centers are designed to drive new ideas to reality in highly focused "sprints...

  • Page 19
    At the AT&T Foundry location in Palo Alto, AT&T is accelerating the pace of innovation by increasing collaboration with developers. Danika Patrick and Ari Lerner are working with developers to create new mobile solutions in healthcare. (See page 20 to learn more.) AT&T Inc. 17

  • Page 20
    ... company get to market quickly. "Support from AT&T allowed us to shorten the time it takes to move from prototype to product development and a launch plan." "AT&T Labs is delivering new capabilities that help businesses operate smarter and people live better lives." - Krish Prabhu, Chief Technology...

  • Page 21
    ... 2011. The AT&T ForHealth practice area addresses a challenge facing the healthcare industry: Most patients rely on a series of individual practitioners - doctors, nurses, pharmacists and others - who too often work in isolation. We're improving the quality of care, and reducing costs, by offering...

  • Page 22
    ... companies greater control of power grids. When demand peaks, they can now remotely distribute energy where it's needed most - for example, by prioritizing hospitals over homes. Meanwhile, the Digi Energy SmartleeTM mobile app lets consumers monitor and manage energy consumption and electric bills...

  • Page 23
    ... USF System Vice President of Information Technology. "We can make content, even classes, available to our students on demand, which makes it easier for them to manage their course loads and make the most of their time on campus." A custom app from AT&T and Verivo Software helps University of South...

  • Page 24
    ..., to the innovative ways we work to reduce our impact on the environment. AT&T invests significant resources to advance education, strengthen communities and improve lives. In 2011, we contributed $115 million through corporate, employee and AT&T Foundation giving programs. As an important part of...

  • Page 25
    "Job Shadow has given me a different outlook on my future ...and it made me feel important," says Elizabeth Briones, who job shadowed with a manager at AT&T headquarters in Dallas. AT&T Inc. 23

  • Page 26
    ... service locations back online. Billy Rice directed the deployment of four "cell on wheels" mobile cell towers and 14 portable generators to restore service to cell sites that had lost power. Thanks to his leadership, within days service levels in the Joplin area actually exceeded what was available...

  • Page 27
    ... business customers are working to improve productivity and conserve travel budgets, while addressing their carbon footprints. We offer a suite of solutions to help them address all three priorities, including AT&T Telepresence Solution®, AT&T Connect® Collaboration Services, IP VPN services and...

  • Page 28
    ... over year. full-year 2011 revenue mix > Wireless Wireline Data/Managed Services Wireline Voice Advertising Solutions/Other 50% 26% 5% 19% $20.3B 103.2M $10.2B $34.6B Capital invested in 2011, including an increase in investment in wireless and mobile broadband capabilities. Wireless connections...

  • Page 29
    ... added in 2011. end-of-year connected devices on AT&T's wireless network, in millions > 08 09 10 11 2.7 4.7 9.3 13.1 video leadership Driven by strong subscriber growth, in 2011, AT&T U-verse services revenues grew more than 53 percent year over year. annual AT&T U-verse revenues, in billions...

  • Page 30
    ... Award in the Mobile Network Market for our plans to deploy HSPA+ and LTE simultaneously. 7 good corporate citizen top company for leaders AT&T was named among the 2011 100 Best Corporate Citizens by Corporate Responsibility Magazine. a responsible investment AT&T is listed on the FTSE4Good...

  • Page 31
    ...Inc. Financial Review 2011 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...

  • Page 32
    ... AT&T Mobility wireless customers. Broadband connections include in-region DSL lines, in-region U-verse High Speed Internet access, and satellite broadband. Prior period amounts are restated to conform to current period reporting methodology. 4 Earnings were not sufficient to cover fixed charges in...

  • Page 33
    ...12.3%. Customers disconnecting access lines switched to wireless, Voice over Internet Protocol (VoIP) and cable offerings for voice and data or terminated service permanently as businesses closed or consumers left residences. While we lose wireline voice revenues, we have the opportunity to increase...

  • Page 34
    ... $7,253 in 2010. The increase in income tax in 2011 is primarily due to a settlement with the Internal Revenue Service (IRS) that occurred in the third quarter of 2010 related to a restructuring of our wireless operations, which lowered our income taxes in 2010 by $8,300. The tax benefit of the IRS...

  • Page 35
    ... and business customers with landline voice and data communications services, AT&T U-verse TV, high-speed broadband, and voice services and managed networking to business customers. The Advertising Solutions segment accounted for approximately 3% of our 2011 and 2010 total segment operating revenues...

  • Page 36
    ... subscribers who canceled service during a period by the total number of wireless subscribers at the beginning of that period. The churn rate for the annual period is equal to the average of the churn rate for each month of that period. Higher total, postpaid and connected device churn rates in 2011...

  • Page 37
    ... to increase and expand to additional markets in the coming years. While we are continuing to invest significant capital in expanding our network capacity, our capacity constraints could affect the quality of existing voice and data services and our ability to launch new, advanced wireless broadband...

  • Page 38
    ... to the increased number of subscribers and increased Internet access by subscribers using advanced handsets and data-centric devices, such as eReaders, tablets, and mobile navigation devices. Data service revenues accounted for approximately 38.8% of our wireless service revenues in 2011, compared...

  • Page 39
    ... demand as customers continue to shift to IP-based technology such as Virtual Private Networks (VPN), U-verse High Speed Internet access and managed Internet services. We expect these traditional services to continue to decline as a percentage of our overall data revenues. Voice revenues decreased...

  • Page 40
    ...access lines of 47 at December 31, 2011, 62 at December 31, 2010, and 80 at December 31, 2009. 4 Total wireline broadband connections include DSL, U-verse High Speed Internet and satellite broadband. 5 Satellite service includes connections under our agency and resale agreements. 6 Includes consumer...

  • Page 41
    ... the interest cost and expected return on pension and postretirement benefits assets. Operating revenues decreased $92, or 16.9%, in 2011 and $119, or 17.9%, in 2010. The decrease in both years was primarily due to reduced revenues from our operator services. Operating expenses increased $2,870 in...

  • Page 42
    ...line losses, and we expect to continue to expand our U-verse service offerings in 2012. 2012 Expense Trends We will continue to focus sharply on cost-control measures. We will continue our ongoing initiatives to improve customer service and billing so we can realize our strategy of bundling services...

  • Page 43
    ...meet the needs of our customers. We will continue to attempt to address spectrum and capacity constraints on a market-by-market basis. U-verse Services During 2011, we continued to expand our offerings of U-verse High Speed Internet and TV services. As of December 31, 2011, we reached our deployment...

  • Page 44
    ... additional review. 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...

  • Page 45
    ... data services and broadband. In most markets, we compete with large cable companies, such as Comcast Corporation, 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...

  • Page 46
    ... decrease in the actual long-term rate of return would cause 2012 combined pension and postretirement cost to increase $525, which under our accounting policy would be recognized in the current year as part of our fourthquarter remeasurement of our retiree benefit plans. We recognize actual gains...

  • Page 47
    ... revenue growth rates, EBITDA margins and churn rates. We expect wireless revenue growth to trend down from our 2011 growth rate of 8.1% to a long-term growth rate that reflects expected longterm inflation trends. We expect our churn rates to decline in 2012 from our rate of 1.37% in 2011, in line...

  • Page 48
    ... discount rate increased by 1%, the fair values of the wireless FCC licenses, while less than currently projected, would still be higher than the book value of the licenses. The fair value of the licenses exceeded the book value by more than 25%. We review customer relationships and other long-lived...

  • Page 49
    ... increased $1,748 since December 31, 2010. During 2011, cash inflows were primarily provided by cash receipts from operations and cash received from our tender of Telmex shares. These inflows were largely offset by cash used to meet the needs of the business, including but not limited to, payment...

  • Page 50
    ... of the New Cingular Wireless Services, Inc. 8.125% notes originally due on May 1, 2012. • $31 in repayments of capitalized leases. • $27 in repayments of short-term bank borrowings. At December 31, 2011, we had $3,453 of debt maturing within one year, all of which was long-term debt...

  • Page 51
    ... Credit Facilities In December 2011, we amended and extended for an additional one-year term our existing $5,000, four-year revolving credit agreement (Four-Year Agreement) with a syndicate of banks. We also entered into a new $5,000, 364-day revolving credit agreement, with a syndicate of banks...

  • Page 52
    ... of $6,339, which increased the debt ratio in 2011. CONTRACTUAL OBLIGATIONS, COMMITMENTS AND CONTINGENCIES Current accounting standards require us to disclose our material obligations and commitments to making future payments under contracts, such as debt and lease agreements, and under contingent...

  • Page 53
    ...liability) represents the amount we would receive (pay) if we had exited the contracts as of December 31, 2011. Maturity 2012 2013 2014 2015 2016 Thereafter Total Fair Value 12/31/11 Interest Rate Derivatives Interest Rate Swaps: Receive Fixed/Pay Variable Notional Amount Maturing Weighted-Average...

  • Page 54
    ... from changes that exceed acceptable amounts. STOCK PERFORMANCE GRAPH Comparison of Five Year Cumulative Total Return AT&T Inc., S&P 500 Index, and S&P 500 Integrated Telecom Index 140 For the purpose of assessing specific risks, we use a sensitivity analysis to determine the effects that market...

  • Page 55
    ... 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 past several years. The development of wireless, cable and IP technologies has...

  • Page 56
    ... on service/device offerings, price, call quality, coverage area and customer service. In addition, we are facing growing competition from providers offering services using alternative wireless technologies and IP-based networks as well as traditional wireline networks. We expect market saturation...

  • Page 57
    ... 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 have deployed a new broadband network to offer IP-based voice, data and video...

  • Page 58
    ... by increasing competition, including offerings that use alternative technologies (e.g., cable, wireless and VoIP) and our ability to maintain capital expenditures. • The extent of competition and the resulting pressure on customer and access line totals and wireline and wireless operating...

  • Page 59
    Consolidated Statements of Income Dollars in millions except per share amounts 2011 2010 2009 Operating Revenues Wireless service Data Voice Directory Other Total operating revenues Operating Expenses Cost of services and sales (exclusive of depreciation and amortization shown separately below) ...

  • Page 60
    ...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 Liabilities Deferred income taxes Postemployment benefit obligation Other noncurrent...

  • Page 61
    ...net of cash acquired Dispositions (Purchases) and sales of securities, net Other Net Cash Used in Investing Activities Financing Activities Net change in short-term borrowings with original maturities of three months or less Issuance of long-term debt Repayment of long-term debt Issuance of treasury...

  • Page 62
    ... 2009 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 stock Share-based payments Share of equity method investee capital transactions Change related to acquisition of interests...

  • Page 63
    ... $8 Defined benefit postretirement plans (see Note 11): Net prior service credit arising from period, net of taxes of $699, $298 and $1,383 Amortization of net prior service credit, net of taxes of $(282), $(243) and $(96) Other Other comprehensive income attributable to AT&T Balance at end of year...

  • Page 64
    ..., long distance, data and video services are recognized when services are provided. This is based upon either 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...

  • Page 65
    ... newly available information, such as rate changes and new contractual agreements. Bills reflecting actual incurred information are generally not received within three months subsequent to the end of the reporting period, at which point a final adjustment is made to the accrued switched traffic...

  • Page 66
    ...areas and 6 MHz of Lower 700 MHz D block spectrum covering more than 230 million people across the rest of the United States. We plan to deploy this spectrum as supplemental downlink capacity, using carrier aggregation technology once compatible handsets and network equipment are developed. Purchase...

  • Page 67
    ... the transaction. Pursuant to the purchase agreement, we paid a breakup fee of $3,000, entered into a broadband roaming agreement and, pursuant to regulatory approvals, will transfer certain wireless spectrum with a book value of $962. These agreement termination charges were included in "Selling...

  • Page 68
    ... landline voice 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...

  • Page 69
    ...: At December 31, 2011 and for the year ended Wireless Wireline Advertising Solutions Other Consolidations Consolidated Results Total segment operating revenues Operations and support expenses Depreciation and amortization expenses Total segment operating expenses Segment operating income (loss...

  • Page 70
    ... in 2010 related primarily to the acquisition of certain wireless properties from Verizon Wireless (see Note 2). In 2011, we recorded a $2,745 impairment in the Advertising Solutions segment, triggered by declining revenues in our directory business and the directory industry as a whole. Changes to...

  • Page 71
    ... for the year ended December 31, 2009. Amortization expense is estimated to be $1,335 in 2012, $744 in 2013, $347 in 2014, $217 in 2015, and $123 in 2016. In 2011, we wrote off approximately $1,130 in fully amortized intangible assets (primarily customer lists). We review other amortizing intangible...

  • Page 72
    ... 2011 - 2016 3.00% - 4.99% 2011 - 2021 5.00% - 6.99% 2011 - 2095 7.00% - 9.10% 2011 - 2097 Other Fair value of interest rate swaps recorded in debt Unamortized premium, net of discount Total notes and debentures Capitalized leases Total long-term debt, including current maturities Current maturities...

  • Page 73
    ... all of our outstanding long-term debt is unsecured. Maturities of outstanding long-term notes and debentures, as of December 31, 2011, and the corresponding weighted-average interest rate scheduled for repayment are as follows: 2012 2013 2014 2015 2016 Thereafter Debt repayments1,2 $3,453...

  • Page 74
    ... other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used since December 31, 2010. LEVEL...

  • Page 75
    ... less than one year, $228 within one to three years, $103 within three to five years, and $82 for five or more years. 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...

  • Page 76
    ... contracts (crosscurrency swaps). We do not use derivatives for trading or speculative purposes. We record derivatives on our consolidated balance sheets at fair value that is derived from observable market data, including yield curves and foreign exchange rates (all of our derivatives are Level...

  • Page 77
    ... quarter of 2010 and increased our deferred income taxes 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...

  • Page 78
    ... tax treatment of Universal Service Fund receipts. The Supreme Court action had no impact on our financial statements. The components of income tax (benefit) expense are as follows: 2011 2010 2009 Balance at beginning of year Increases for tax positions related to the current year Increases for tax...

  • Page 79
    ... per year according to job classification or are calculated under a cash balance plan that is based on an initial cash balance amount and a negotiated annual pension band and interest credits. Most nonmanagement employees can elect to receive their pension benefits in either a lump sum payment or...

  • Page 80
    ... reduced postretirement benefit cost by $280, $237 and $255. This effect is included in several line items above. Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Pension Benefits 2011 2010 2009 Postretirement Benefits 2011 2010 2009 Prior service (cost...

  • Page 81
    ... annual healthcare cost trend rate for 2012 and 2011 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 for determining projected benefit...

  • Page 82
    ... benefit plans be funded annually. The principal investment objectives are to ensure the availability of funds to pay pension and postretirement benefits as they become due under a broad range of future economic scenarios, to maximize long-term investment return with an acceptable level...

  • Page 83
    ... 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 the third-party...

  • Page 84
    ... Value as of December 31, 2011 Level 1 Level 2 Level 3 Total Non-interest bearing cash Interest bearing cash Foreign currency contracts Equity securities: Domestic equities: Large cap Small and mid cap International equities: Developed markets Emerging markets Fixed income securities: Asset-backed...

  • Page 85
    ... at Fair Value as of December 31, 2011 Level 1 Level 2 Level 3 Total Interest bearing cash Equity securities: Domestic equities: Large cap Small and mid cap International equities: Developed markets Emerging markets Fixed income securities: Asset-backed securities Collateralized mortgage...

  • Page 86
    ... The tables below set forth a summary of changes in the fair value of the Level 3 pension and postretirement assets for the year ended December 31, 2011: Fixed Income Funds Hedge Funds Private Equity Funds Real Assets Pension Assets Equities Total Balance at beginning of year Realized gains...

  • Page 87
    ...of December 31, 2010 Level 1 Level 2 Level 3 Total Non-interest bearing cash Interest bearing cash Foreign currency contracts Equity securities: Domestic equities: Large cap Small and mid cap International equities: Developed markets Emerging markets Fixed income securities: Asset-backed securities...

  • Page 88
    ... at Fair Value as of December 31, 2010 Level 1 Level 2 Level 3 Total Interest bearing cash Equity securities: Domestic equities: Large cap Small and mid cap International equities: Developed markets Emerging markets Fixed income securities: Asset-backed securities Collateralized mortgage-backed...

  • Page 89
    ... Payments Expected benefit payments are estimated using the same assumptions used in determining our benefit obligation at December 31, 2011. Because benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, changes...

  • Page 90
    .... Our match of employee contributions to 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 $636, $607 and $586 for the years ended December 31...

  • Page 91
    ... program in January 2012. During the Annual Meeting of Shareholders in April 2009, shareholders approved the increase of authorized common shares of AT&T stock from 7 billion to 14 billion, with no change to the currently authorized 10 million preferred shares of AT&T stock. As of December 31, 2011...

  • Page 92
    ...ADDITIONAL FINANCIAL INFORMATION December 31, Consolidated Balance Sheets 2011 2010 Accounts payable and accrued liabilities: Accounts payable Accrued expenses Accrued payroll and commissions Deferred directory revenue Accrued interest Compensated future absences Current portion of employee benefit...

  • Page 93
    ... shares for the year. Includes an actuarial loss on pension and postretirement benefit plans (Note 11), T-Mobile breakup fee (Note 2) and impairment of intangible assets (Note 6). 2010 Calendar Quarter First2 Second3 Third4 Fourth5 Annual Total Operating Revenues Operating Income Income (Loss...

  • Page 94
    ... preparation 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, 2011. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations...

  • Page 95
    ...the three years in the period ended December 31, 2011, in conformity with U.S. generally accepted accounting principles. 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...

  • Page 96
    ... statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect...

  • Page 97
    ...2006 BellSouth Corporation Director 2000-2006 Background: Air delivery and freight services Joyce M. Roché, 64 (3,7) Retired President and Chief Executive Officer Girls Incorporated Director since 1998 Southern New England Telecommunications Director 1997-1998 Background: Marketing Jon C. Madonna...

  • Page 98
    ...&T Business and Home Solutions John Stephens, 52 Senior Executive Vice President and Chief Financial Officer Bill Blase Jr., 56 Senior Executive Vice PresidentHuman Resources Ralph de la Vega, 60 President and Chief Executive Officer, AT&T Mobility Forrest Miller,* 59 Group President-Corporate...

  • Page 99
    ... about AT&T Inc. is available on the Internet at www.att.com. Annual Meeting The annual meeting of stockholders will be held at 9 a.m. Mountain time Friday, April 27, 2012, at: The Grand America Hotel 555 South Main Street Salt Lake City, UT 84111 Financial Review printed on paper that...

  • Page 100
    AT&T Inc. 208 S. Akard St. Dallas, TX 75202 att.com