AT&T Wireless 2012 Annual Report Download - page 92

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Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
90 | AT&T Inc.
subject to negotiation. In addition, during 2012, we entered
into a new national four-year contract covering only benefits
with the approximately 40,000 employees in our mobility
business; contracts covering wages and other non-benefit
working terms for these mobility employees are structured
on a regional basis and one regional contract for 20,000
employees expired during February 2013. Contracts
covering approximately 30,000 non-mobility employees
will expire during 2013, including approximately 20,000
wireline employees in our five-state Southwest region.
On February 6, 2013, we announced a tentative agreement
with the CWA covering the wireline employees in our
Southwest region; this agreement is subject to ratification
by these employees. After expiration of the current
agreements, work stoppages or labor disruptions may
occur in the absence of new contracts or other agreements
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 $420 in 2012, $450 in 2011, and $480 in 2010.
No customer accounted for more than 10% of consolidated
revenues in 2012, 2011 or 2010.
NOTE 15. CONTINGENT LIABILITIES
We are party to numerous lawsuits, regulatory proceedings
and other matters arising in the ordinary course of
business. 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 $3,744 in 2013, $3,890 in
total for 2014 and 2015, $1,469 in total for 2016 and 2017
and $457 in total for years thereafter.
See Note 9 for a discussion of collateral and credit-risk
contingencies.
NOTE 14. ADDITIONAL FINANCIAL INFORMATION
December 31,
Consolidated Balance Sheets 2012 2011
Accounts payable and accrued liabilities:
Accounts payable $12,076 $10,485
Accrued payroll and commissions 2,332 2,170
Current portion of employee
benefit obligation 2,116 2,288
Accrued interest 1,588 1,576
Other 2,799 3,437
Total accounts payable and
accrued liabilities $20,911 $19,956
Consolidated Statements of Income 2012 2011 2010
Advertising expense $2,910 $3,135 $2,982
Interest expense incurred $3,707 $3,697 $3,766
Capitalized interest (263) (162) (772)
Total interest expense $3,444 $3,535 $2,994
Consolidated Statements of Cash Flows 2012 2011 2010
Cash paid during the year for:
Interest $3,696 $3,722 $3,882
Income taxes, net of refunds 458 32 3,538
Consolidated Statements of
Changes in Stockholders’ Equity 2012 2011 2010
Foreign currency translation
adjustment $ (284) $ (371) $ (494)
Net unrealized gains (losses) on
available-for-sale securities 272 222 316
Net unrealized gains (losses) on
cash flow hedges (110) (421) (180)
Defined benefit postretirement
plans 5,358 3,750 3,070
Accumulated other
comprehensive income $5,236 $3,180 $2,712
Labor Contracts As of January 31, 2013, we employed
approximately 242,000 persons. Approximately 55 percent
of our employees are represented by the Communications
Workers of America (CWA), the International Brotherhood
of Electrical Workers or other unions. Contracts covering
approximately 77,000 (as of December 31, 2012) employees
expired during 2012 and we have reached new contracts
covering approximately 57,000 of those employees.
Contracts covering wireline employees in California,
Connecticut and Nevada expired in April 2012 and remain