AT&T Wireless 2011 Annual Report Download - page 92

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
90 AT&T Inc.
NOTE 14. ADDITIONAL FINANCIAL INFORMATION
December 31,
Consolidated Balance Sheets 2011 2010
Accounts payable and accrued liabilities:
Accounts payable $ 8,593 $ 7,437
Accrued expenses 2,004 2,761
Accrued payroll and commissions 2,170 2,225
Deferred directory revenue 904 1,278
Accrued interest 1,576 1,601
Compensated future absences 525 538
Current portion of employee
benefit obligation 2,288 2,394
Other 1,798 1,821
Total accounts payable and
accrued liabilities $19,858 $20,055
Deferred compensation (included in
Other noncurrent liabilities) $ 1,020 $ 1,003
Consolidated Statements of Income 2011 2010 2009
Advertising expense $2,359 $2,982 $2,787
Interest expense incurred $3,697 $3,766 $4,108
Capitalized interest (162) (772) (740)
Total interest expense $3,535 $2,994 $3,368
Consolidated Statements of Cash Flows 2011 2010 2009
Cash paid during the year for:
Interest $3,722 $3,882 $3,862
Income taxes, net of refunds 32 3,538 4,471
Consolidated Statements of
Changes in Stockholders’ Equity 2011 2010 2009
Foreign currency translation
adjustment $ (371) $ (494) $ (765)
Unrealized gains on
available-for-sale securities 222 316 324
Unrealized gains (losses) on
cash flow hedges (421) (180) 142
Defined benefit postretirement
plans 3,750 3,070 2,979
Other — — (2)
Accumulated other comprehensive
income $3,180 $2,712 $2,678
Labor Contracts As of January 31, 2012, we employed
approximately 256,000 persons. Approximately 55% of our
employees are represented by the Communications Workers
of America, the International Brotherhood of Electrical
Workers or other unions. Contracts covering approximately
120,000 employees will expire during 2012. For contracts
covering approximately 80,000 (mainly wireline) employees,
the union is entitled to call a work stoppage in the absence
of a new contract being reached.
American Tower Corp. Agreement In August 2000, we
reached an agreement with American Tower Corp. (American
Tower) under which we granted American Tower the exclusive
rights to lease space on a number of our communications
towers. In exchange, we received a combination of cash
and equity instruments as complete prepayment of rent
with the closing of each leasing agreement. The value of
the prepayments was recorded as deferred revenue and
recognized in income as revenue over the life of the leases.
The balance of deferred revenue was $450 in 2011, $480
in 2010, and $509 in 2009.
No customer accounted for more than 10% of consolidated
revenues in 2011, 2010 or 2009.
NOTE 15. CONTINGENT LIABILITIES
We are party to numerous lawsuits, regulatory proceedings
and other matters arising in the ordinary course of business.
In accordance with GAAP standards for contingencies, in
evaluating these matters on an ongoing basis, we take into
account amounts already accrued on the balance sheet.
In our opinion, although the outcomes of these proceedings
are uncertain, they should not have a material adverse effect
on our financial position, results of operations or cash flows.
We have contractual obligations to purchase certain goods or
services from various other parties. Our purchase obligations
are expected to be approximately $3,845 in 2012, $4,339 in
total for 2013 and 2014, $2,185 in total for 2015 and 2016
and $340 in total for years thereafter.
See Note 9 for a discussion of collateral and credit-risk
contingencies.