AT&T Wireless 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 AT&T Wireless 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 104

  • 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
  • 101
  • 102
  • 103
  • 104

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
    ... 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. We're...

  • Page 3
    ...acquire spectrum and build the most advanced wireless and wireline network capabilities. And on top of this network, we've offered customers one breakthrough device after another, along with access to a broad range of powerful applications that integrate their video, data and voice experience. 2010...

  • Page 4
    ... economic growth, how it helps people and communities reach their potential. Our network and the solutions that ride on it give a young student in a small-town school access to the same applications and resources as her counterparts in major metropolitan areas. They give a small family business down...

  • Page 5
    ... 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 response times and improved productivity...

  • Page 6
    ...years is to accelerate their growth. Increasingly, we'll also focus on the potential to deliver services across networks and platforms to make things simple and seamless for customers as they access content of all kinds - video, data and applications - without giving a thought to whether they happen...

  • Page 7
    ... navigation devices to home security monitoring. Businesses, too, are using mobile broadband connectivity for a host of functions, including location-based advertising, automated meter reading and logistics management. We already have more than 9 million of these connected devices on our network...

  • 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
    ... since we created our first container monitoring devices nearly a decade ago." - Christian Bogatu, Ph.D., Co-Founder, Kirsen Global Security Better Security Every year, companies use hundreds of millions of shipping containers to move products around the world by boat, truck and rail. Whatever the...

  • 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
    ... 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 - although my daughter, Caroline, might...

  • Page 14
    ... 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 AT...

  • Page 15
    ... more than dedicated product management resources to help us deploy our apps on wireless devices. They've also worked with us to launch our products, raise awareness and mature our business strategy." The outcome of this collaboration is a suite of mobile applications - Trimble OutdoorsTM, AllSport...

  • Page 16
    COnnECTIOnS AT&T Synaptic HostingSM helps the 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 ...

  • Page 17
    ... director of information technology for the USOC. But building an in-house system to handle peak demand levels and ensure sufficient bandwidth to deliver interactive content would have been inefficient and expensive to manage during down cycles. AT&T Synaptic Hosting provides a Web hosting solution...

  • 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
    ...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's "reply all" messaging. And when they all want to check out a new...

  • Page 20
    ...IDEAS Early studies 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...

  • Page 21
    .... A case in point: the mHealth Solution from AT&T and WellDoc®. Recognizing that nearly no one leaves home without a wireless device, AT&T is creating an end-to-end solution around a cutting-edge mobile application to help people with diabetes better track, monitor and manage their disease. The...

  • Page 22
    ... project entered the proof of concept phase in a matter of weeks. "AT&T's fast-pitch program accelerates innovation by developers and helps 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 AT&T Inc.

  • 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
    ... wireless networks. Full-year 2010 Customer Revenue Mix In the fourth quarter of 2010, AT&T's growth platforms - wireless, wireline data and managed services - represented 73 percent of revenues and combined grew 9.0 percent year over year. 47% Wireless 6% Advertising Solutions/Other $3.35 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
    ... 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 Analysis...

  • Page 30
    ... 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, a site coordinator at North Charleston...

  • Page 31
    ...Inc. Financial 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...

  • Page 32
    .... 3 The number presented represents 100% of AT&T Mobility cellular/PCS customers. 4 Broadband connections include in-region DSL lines, in-region U-verse High Speed Internet access, satellite broadband and 3G LaptopConnect cards. 5 Prior-period amounts restated to conform to current period reporting...

  • Page 33
    ..., driven mostly by our increase in average subscribers along with a significant increase in wireless data revenue, stemming from higher integrated device sales and customer usage. Adding to the increase, we had higher wireline data revenue largely due to growth in IP-related services, driven by AT...

  • Page 34
    ... to increase wireless service or wireline data revenues should these customers choose us as their wireless or VoIP provider. We also continue to expand our VoIP service for customers who have access to our U-verse video service. Cost of services and sales expenses increased $1,692, or 3.3%, in 2010...

  • 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
    ... 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 reflected slowing growth in the industry subscriber base...

  • 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
    ..., attributable to lower traditional handset sales exceeding the impact of the sale of advanced integrated devices, and long-distance and reseller services cost decreases totaling $134 due to usage and rate declines. Depreciation and amortization increased $454, or 7.5%, in 2010 and $18, or 0.3%, in...

  • Page 39
    ...and growth in IP-based strategic business services, which include Ethernet and application services. U-verse video revenues increased $1,227 in 2010 and $1,039 in 2009, strategic business services increased $648 in 2010 and $582 in 2009 and broadband high-speed Internet access revenue increased $446...

  • Page 40
    ...; advertising costs; sales and marketing functions, including customer service centers; real estate costs, including maintenance and utilities on all buildings; credit and collection functions; and corporate support costs, such as finance, legal, human resources and external affairs. Pension/OPEB...

  • Page 41
    ... DSL, 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...

  • Page 42
    ... in 2011 to grow, reflecting continuing growth in our wireless data and IP-related wireline data services including U-verse and business services. We expect our primary driver of growth to be wireless, especially in sales of and increases in data usage on advanced handsets and emerging devices (such...

  • Page 43
    ... continue to experience increased financial and operating costs. These negative economic trends were offset by continued growth in our wireless data and IP-related services. While the economy appears to have stabilized, we do not expect a quick return to growth during 2011. Should the economy...

  • Page 44
    ... service offerings are generally not subject to state regulation, an increasing number of states are attempting to regulate or legislate various aspects of wireless services, such as in the area of consumer protection. Expected Growth Areas We expect our wireless services and data wireline products...

  • Page 45
    ... share in local service and gains resulting from business initiatives, especially in the area of bundling of products and services, including wireless and video, large-business data services and broadband. In most markets, we compete with large cable companies, such as Comcast Corporation, AT...

  • Page 46
    ...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 wireline subsidiaries generally remain subject to regulation by state...

  • Page 47
    ... market and the asset mix of the plans' investments. If all other factors were to remain unchanged, we expect that a 1.0% decrease in the actual long-term rate of return would cause 2011 combined pension and postretirement cost to increase $575. Note 11 also discusses the effects of certain changes...

  • Page 48
    ...calculate the present value of the projected cash flows of licenses acquired from third parties. If either the projected rate of long-term growth of cash flows or revenues declined by 1%, or if the discount rate increased by 1%, the fair values of the wireless FCC licenses, while less than currently...

  • Page 49
    ...In October 2009, the Financial 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...

  • Page 50
    ... the FCC's rules by collecting universal service fees on certain services not subject to such fees, including Internet access service provided over wireless handsets commonly called "smartphones" and wireless data cards, as well as collecting certain other state and local fees. Plaintiffs define...

  • Page 51
    ...-strategic assets. • $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...

  • Page 52
    ...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 originally due on March 1, 2011. • $594 related to the private exchange we completed on September 2, 2010, whereby holders exchanged...

  • Page 53
    ... in 2010. 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 commitments, such as debt guarantees. We...

  • Page 54
    ... exchange rates. These risks, along with other business risks, impact our cost of capital. It is our policy to manage our debt structure and foreign exchange exposure in order to manage capital costs, control financial risks and maintain financial flexibility over the long term. In managing market...

  • Page 55
    ... asset (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...

  • 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 AT&T Inc., S&P 500 Index, and S&P 500 Integrated Telecom Index 200 190 185 AT&T Inc...

  • Page 57
    ... in the U.S., Europe and other foreign markets persist or worsen, those customers would likely be affected in a similar manner. Adverse changes in medical costs and the U.S. securities markets and interest rates could materially increase our benefit plan costs. Our annual pension and postretirement...

  • Page 58
    ... regulatory authorities in the market where service is provided. Our wireless subsidiaries are regulated to varying degrees by the FCC and some state and local agencies. Adverse rulings by the FCC relating to broadband issues could impede our ability to manage our networks and recover costs and...

  • 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
    ... of devices, some on an exclusive basis. • The availability and cost of additional wireless spectrum and regulations relating to licensing and technical standards and deployment and usage, including network management rules. • Our ability to manage growth in wireless data services...

  • Page 61
    ...Statements 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...

  • Page 62
    ... Affiliates Other 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...

  • Page 63
    ...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 payable and accrued liabilities...

  • Page 64
    ... 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 to...

  • Page 65
    ... in net income (loss), net of taxes of $7, $8, and $9 Defined benefit postretirement plans (see Notes 1 and 11): Net prior service benefit arising during period, net of taxes of $298, $1,383, and $20 Amortization of net prior service cost included in net income (loss), net of taxes of $(243), $(96...

  • Page 66
    .... 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 services, and advertising solutions. All significant intercompany transactions...

  • 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
    ..., 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 69
    ... by product, formulated from historical data and adjusted for known rate changes and volume levels. Such estimates are adjusted monthly to reflect newly-available information, such as rate changes and new contractual agreements. Bills reflecting actual incurred information are generally not received...

  • Page 70
    ...services agreement with IBM related to short-term support of Sterling's operations after the sale. NOTE 2. ACQUISITIONS, DISPOSITIONS, AND OTHER ADJUSTMENTS Acquisitions Wireless Properties Transactions In June 2010, we acquired certain wireless properties, including FCC licenses and network assets...

  • Page 71
    ... operations for the years ended December 31, 2010, 2009 and 2008, are shown in the table below: Year Ended December 31, 2010 2009 2008 Assets held for sale: Current assets Property, plant and equipment Goodwill and other intangible assets Other assets Total assets Liabilities related to assets...

  • Page 72
    ... 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 segment...

  • Page 73
    ...: 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 Total segment operating expenses Segment operating income (loss...

  • Page 74
    ...,196 $ 99,519 Includes certain network software. NOTE 6. GOODWILL AND OTHER 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...

  • Page 75
    ...rica Móvil), primarily a wireless provider in Mexico with telecommunications investments in the United States and Latin America. We are a member of a consortium that holds all of the class AA shares of Telmex stock, representing voting control of the company. Another member of the consortium, Carso...

  • Page 76
    ... 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 originally due on March 1, 2011. • $594 related to the private exchange we completed on September 2, 2010 whereby holders exchanged...

  • Page 77
    ...two new revolving credit facilities with a syndicate of banks - a fouryear, $5,000 agreement and a $3,000, 364-day agreement. In the event advances are made under either agreement, those advances would be used for general corporate purposes, which could include repayment of maturing commercial paper...

  • Page 78
    ... 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 values. Our investment securities maturing within one year are recorded in "Other current assets," and...

  • 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
    ... liabilities and, for a portion of interest rate swaps, accounts receivable at December 31. Asset Derivatives 2010 2009 Interest rate swaps Cross-currency swaps Interest rate locks Foreign exchange contracts Total Liability Derivatives $ 537 327 11 6 $ 881 2010 $ 399 635 150 2 $1,186 2009 Cross...

  • Page 81
    ...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 of amortization deductions related to certain of our wireless assets...

  • Page 82
    ... taxing authorities. A reconciliation of the change in our UTB balance from January 1 to December 31 for 2010 and 2009 is as follows: Federal, State and Foreign Tax 2010 2009 Balance at beginning of year Increases for tax positions related to the current year Increases for tax positions related to...

  • Page 83
    .... 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 according to job...

  • Page 84
    ... Dollars in millions except per share amounts The following table presents the change in the value of plan assets for the years ended December 31 and the plans' funded status at December 31: Pension Benefits 2010 2009 Postretirement Benefits 2010 2009 Fair value of plan assets at beginning of year...

  • Page 85
    ... our discount rate by 0.50%, resulting in an increase in our pension plan benefit obligation of $2,065 and an increase in our postretirement benefit obligation of $1,847. Expected Long-Term Rate of Return Our expected long-term rate of return on plan assets of 8.25% for 2011 and 8.50% for 2010...

  • Page 86
    ... 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 primarily of private and public equity, government and corporate bonds, and real...

  • Page 87
    ..., 2010, AT&T securities represented less than 0.5% of assets held by our pension plans and VEBA trusts. Investment Valuation Investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market...

  • Page 88
    ...-backed securities Other corporate and other bonds and notes U.S. Government and governmental agencies Convertible and preferred securities Securities lending collateral Variation margin receivable Assets at fair value Overdrafts Unrealized depreciation on foreign currency contracts Investments sold...

  • Page 89
    ... equity assets Real assets 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...

  • Page 90
    ... 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 Transfers into Level 3 Transfers out of...

  • Page 91
    ... Other corporate and other bonds and notes U.S. Government and governmental agencies Convertible and preferred securities Securities lending collateral Receivable for investments sold short Assets at fair value Overdrafts Unrealized depreciation on foreign currency contracts Investments sold short...

  • Page 92
    ... equity assets Real assets 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...

  • Page 93
    ...139) (2,058) - The following tables present the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in OCI: Net 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...

  • Page 94
    ... 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 PAYMENT...

  • Page 95
    ... 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 or in connection with certain acquisitions. In December 2010, the Board of Directors authorized...

  • 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
    ... the weighted average common shares for the year. Amounts for first, second and third quarters are adjusted for the change in accounting policy as discussed in Note 1 and that were included in our January 13, 2011 Form 8-K filing with the Securities and Exchange Commission. 3 Includes a charge to...

  • Page 98
    ... independent registered public accounting firm that audited the financial statements included in this Annual Report, has issued an attestation report on the company's internal control over financial reporting. Randall Stephenson Chairman of the Board, Chief Executive Officer and President Richard...

  • Page 99
    ...the calculation of expected 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...

  • Page 100
    ... Registered Public Accounting Firm on Internal Control over Financial Reporting The Board of Directors and Shareholders of AT&T Inc. We have audited AT&T Inc.'s (the Company) internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control...

  • Page 101
    ... Director 1988-1994 Background: Financial services Committees of the Board: (1) Audit (2) Corporate Development (3) Corporate Governance and Nominating (4) Executive (5) Finance/Pension (6) Human Resources (7) Public Policy (Information is provided *Retiring April 29, 2011. as of March 10, 2011...

  • Page 102
    ... Senior Executive Vice PresidentExternal and Legislative Affairs AT&T Services, Inc. Rick Lindner, 56 Senior Executive Vice President and Chief Financial Officer John Stankey, 48 President and Chief Executive Officer AT&T Business Solutions (Information is provided as of February 28, 2011.) 100...

  • Page 103
    ... members of the professional financial community may call the Investor Relations staff as listed on our website at www.att.com/investor.relations. Stock Trading Information AT&T Inc. is listed on the New York Stock Exchange. Ticker symbol: T Written Stockholder Requests Please mail all account...

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