AT&T Worldnet 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 AT&T Worldnet 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

People Innovating for People
AT&T Inc. 2009 Annual Report

Table of contents

  • Page 1
    People Innovating for People AT&T Inc. 2009 Annual Report

  • Page 2
    ... $55 billion to create the connections that make our customers' daily lives more productive. Those connections deepen relationships, strengthen communities, transform businesses, revolutionize industries and accelerate economic growth. You'll see proof of that in these pages - through the stories of...

  • Page 3
    ..., innovative networks and products have established AT&T as a leader in providing mobile broadband access to the Internet - a powerful communications force that impacts every aspect of how people live and how companies do business around the world. Despite a challenging economy, our focused strategy...

  • Page 4
    ... in 2009, we began working to make the nation's fastest 3G network even faster with nextgeneration technology that will double our theoretical peak 3G speeds and prepare us to deploy even faster and more powerful LTE mobile service in 2011.1 AT&T's network supports more 3G HSPA broadband customers...

  • Page 5
    ... use most - TVs, computers and mobile devices. IP networks and data services Premier products and services. AT&T is a global leader in designing, building and managing advanced IP technologies and networks for businesses of all sizes. For our customers, connectivity - anytime, anywhere - is the...

  • Page 6
    ...running their businesses. And on top of the connectivity we provide businesses, we offer industry-leading local business search and advertising capabilities - online, mobile, IPTV and print - to help businesses increase their sales. Unmatched global reach. AT&T not only offers customers solutions to...

  • Page 7
    ...Positioned to lead for the long term I am excited about the opportunities ahead, and I am confident in our ability to make the most of them. We already have set ourselves apart with leading-edge products and services across every customer segment. Now, as the economy shows signs of recovery, we have...

  • Page 8
    ...TVs, computers and mobile devices - that people use to connect to their world. Their passion is developing integrated features that help consumers get more from their entertainment experience, at home and on the road. Want to program your DVR from your smartphone? Need a customized HD traffic map on...

  • Page 9
    ... benefit from these advanced speeds by the end of 2010. Industry-Leading Wireless Growth In 2009, AT&T led the industry in attracting customers, who chose AT&T for the nation's most advanced mobile broadband experience, feature-rich devices and broad access to mobile applications and content. AT...

  • Page 10
    ...the kitchen, a daily ritual. Their mom, Jodi, is there to help. And when she needs help, her iPhone is always nearby and ready with the answers. $14.1B $10.6B $6.9B $4.3B 06 07 08 09 Wireless Data Revenues AT&T's wireless data revenues increased more than 33 percent in 2009. Wireless data on...

  • Page 11
    ... and access to 140,000-plus applications on their wireless devices.3 Here's how AT&T customer Jodi Niblock puts it all to work on a daily basis: As a stay-at-home mom to Lexi, 10, and Brady, 7, Jodi Niblock is equal parts CEO and cruise director when it comes to managing her family's busy life...

  • Page 12
    ... is glad to know that when the kids are older she can still manage what they watch with U-verse's parental controls. "Who would have thought," says Rod, "that when I signed up for my first mobile phone I was starting a long-term relationship with a company that is still finding new ways to keep us...

  • Page 13
    ... U-verse Video Subscribers AT&T now delivers AT&T U-verse TV service to 2.1 million homes - nearly double the total at year-end 2008. And AT&T added more wired video subscribers in 2009 than any other cable or telephone company. Rod connects with his family through their shared love of the outdoors...

  • Page 14
    4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 16.3M 16.7M 16.9M 17.1M 17.3M Broadband Leadership Combining wired and 3G LaptopConnect cards, AT&T is the No. 1 provider of broadband service in the U.S. Tushar stays connected to the office and his family with AT&T U-verse and wireless service.

  • Page 15
    ... service from AT&T, he gets plenty of help balancing his career and family life. Tushar's workday rarely ends when he leaves his office at a Fortune 50 company. So after he and his wife, Meg, get the kids to bed, Tushar uses wireless access to U-verse High Speed Internet to catch up on work e-mails...

  • Page 16
    ... care." - Lusheng Ji, AT&T Bob Miller's storied AT&T career, spanning more than 40 years, has seen the creation of technologies embedded in our everyday lives - digital mobile phones, advanced teleconferencing systems and multimedia wireless devices. As head of AT&T Labs' Communications Technology...

  • Page 17
    ... innovative solutions for small and medium businesses. And our local business search and advertising services offer opportunities for businesses and consumers to connect via print, Internet, mobile device and IPTV. No company does a better job of connecting businesses of all sizes to growth and...

  • Page 18
    ...; Web Hosting and Cloud System Infrastructure Services (On Demand); Asia/Pacific Network Service Providers; Managed Security Services; and Global Network Service Providers.7 $342M 06 07 08 09 Hertz Park Ridge, N.J. We don't just deliver innovative solutions to our customers, we also help them...

  • Page 19
    New Yorker Jamie Pohlman uses Connect by Hertz to run errands around Manhattan. 17 AT&T 09 AR Business Solutions

  • Page 20
    07 08 09 $9.6B $11.1B $13.1B IP Data Revenues As customers increasingly rely on IP communications solutions, AT&T's IP data revenues continue to grow at a strong pace - up nearly 18 percent in 2009. Charles Brumauld often fills up at the Shell station on Paris' Boulevard Raspail - one of ...

  • Page 21
    ...each other, and with their key customers, partners and vendors. With the AT&T solution, Shell has lowered the total management cost of its global network while achieving improved levels of service. Most important, with AT&T delivering the connectivity that drives its business, Shell can focus on its...

  • Page 22
    ...of any U.S. wireless provider, with more phones working in more places. This gives more of our customers the freedom to stay connected, whether at home or in one of more than 220 countries around the globe. Here's how one global entrepreneur puts AT&T's mobile service to work for his business: While...

  • Page 23
    Thanks to AT&T, whether at home on the water or traveling the globe, Blake knows he can stay connected to work with his BlackBerry smartphone. And many members of his team - which has grown from five employees in 2006 to more than 75 today - do the same. 21 AT&T 09 AR Business Solutions

  • Page 24
    ...than 15,000 alternative fuel vehicles, which includes the largest U.S. corporate commitment to compressed natural gas vehicles to date. Building on ...Cities Program, a government-industry alliance committed to accelerating the transition to more efficient vehicles and domestic-fuel alternatives. ...

  • Page 25
    ...and retirees in 2009, valued at more than $170 million. $152M 8.5M 41K Investing in Sustainable Communities Corporate sustainability at AT&T is about innovative practices that deliver benefits for society and for our business. We have pledged hundreds of millions of dollars in multiyear investments...

  • Page 26
    ...AT&T Aspire is giving our kids the tools they'll need to succeed long after they've left our care. AT&T is helping young men and women like Chaltu build sustainable, successful futures." - Rev. L. Scott Donahue, President and CEO, Mercy Home for Boys & Girls 24 AT&T 09 AR Investing in Sustainable...

  • Page 27
    ...Connecting People and Business; and Leading Innovation and Technology. To learn more, visit www.att.com/csr Chaltu Spray Chicago, Ill. AT&T's commitment to innovation extends to helping build a bright, sustainable future for our communities... that supports Mercy Home's efforts to help young people...

  • Page 28
    ... corner boutique to buy a gift she found on the store's AT&T-hosted Web site. She just needs to check it out in person before buying. The gift is perfect. While waiting for the clerk to ring it up, the assistant uses her wireless phone to set the U-verse DVR to record her favorite show that night.

  • Page 29
    ...wireless and wired networks, and supporting infrastructure, to create the connections that make our daily lives more productive. Each day AT&T enables millions of connections, all powered by our wireless, wired and Wi-Fi networks. Here's a look... that AT&T Tech Support 360 service has identified and...

  • Page 30
    $123.0B Consolidated Revenue $12.5B Net Income Attributable to AT&T $9.7B Dividends Paid to Stockholders $34.4B Cash from Operating Activities $2.12 Earnings Per Share 2009 by the Numbers

  • Page 31
    ... Financial Statements Notes to Consolidated Financial Statements Report of Management Report of Independent Registered Public Accounting Firm Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting Board of Directors Senior Officers 30 31 59 64 92 93 94...

  • Page 32
    ... in 2006, the number includes BellSouth lines in service. 6 Broadband connections include in-region DSL lines, in-region U-verse High Speed Internet access, satellite broadband and 3G LaptopConnect cards. 7 Prior period amounts restated to conform to current period reporting methodology. 30 AT...

  • Page 33
    .... Total retail consumer voice connections decreased 11.4% in 2009. Business customers also disconnected switched access lines, reduced usage-based services and reduced print advertising. Customers disconnecting access lines switched to wireless, Voice over Internet Protocol (VoIP) and cable...

  • Page 34
    Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Dollars in millions except per share amounts Cost of services and sales expenses increased $849, or 1.7%, in 2009 and $2,755, or 5.9%, in 2008. The increase in 2009 was primarily due to higher upgrade ...

  • Page 35
    ...&T U-verseSM TV, high-speed broadband and voice services (U-verse) and managed networking to business customers. Additionally, we offer satellite television services through our agency arrangements. The Advertising Solutions segment accounted for approximately 4% of our 2009 and 2008 total segment...

  • Page 36
    ...of Operations (continued) Dollars in millions except per share amounts Wireless Segment Results Percent Change 2009 2008 2007 2009 vs. 2008 2008 vs. 2007 Segment operating revenues Service Equipment Total Segment Operating Revenues Segment operating expenses Operations and support Depreciation and...

  • Page 37
    ...Apple iPhone 3GS, by these customers, evidenced by a 23.5% increase in postpaid data services ARPU in 2009 and a 36.4% increase in postpaid data services ARPU in 2008. The continued increase in postpaid data services revenue was related to increased use of text messaging, Internet access, e-mail and...

  • Page 38
    ..., partially offset by Dobson intangible assets acquired by AT&T Mobility. Percent Change 2009 2008 2007 2009 vs. 2008 2008 vs. 2007 Wireless Customers (000) Net Customer Additions (000) Total Churn Postpaid Customers (000) Net Postpaid Customer Additions (000) Postpaid Churn 85,120 7,278 1.48% 65...

  • Page 39
    ... primarily due to decreased demand from business and consumer customers, which decreased revenues $1,583 in 2009 and $532 in 2008, and a net decrease in demand for long-distance service, due to expected declines in the number of national mass-market customers, which decreased revenues $546 in...

  • Page 40
    ... high-speed Internet access increased IP data revenues $300 in 2009 and $497 in 2008. The increase in IP data revenues in 2009 and 2008 reflects continued growth in the customer base and migration from other traditional circuit-based services. Traditional packet-switched data services, which...

  • Page 41
    ... and Video Connections Summary Our switched access lines and other services provided by our local exchange telephone subsidiaries at December 31, 2009, 2008 and 2007, are shown below and trends are addressed throughout this segment discussion. Percent Change (in 000s) 2009 2008 2007 2009 vs. 2008...

  • Page 42
    ... operating results consist primarily of Sterling, customer information services (primarily operator services and payphone), corporate and other operations. Sterling provides business-integration software and services. Operating revenues decreased $311, or 15.2%, in 2009 and $187, or 8.4%, in 2008...

  • Page 43
    ...as netbooks, eReaders and mobile navigation devices) and 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 advertising from our print directories. Where available, our...

  • Page 44
    ...carriers with access to adequate spectrum to permit continued wireless growth and has begun investigating how to develop policies to promote that goal. While wireless communications providers' prices and service offerings are generally not subject to state regulation, an increasing number of states...

  • Page 45
    ... rules that are intended to preserve the "free and open Internet." The proposed rules apply to providers of "broadband Internet access service" and state that, subject to "reasonable network management," such a provider: • May not prevent any of its users from sending or receiving the lawful...

  • Page 46
    Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Dollars in millions except per share amounts The NPRM states that the proposed rules would apply to all platforms over which broadband Internet access services are provided, including mobile wireless ...

  • Page 47
    ... wholesale networking capacity and switched services to other service providers, primarily large Internet Service Providers using the largest class of nationwide Internet networks (Internet backbone), wireless carriers, Competitive Local Exchange Carriers, regional phone ILECs, cable companies and...

  • Page 48
    ... be disclosed, but no such changes have occurred in the three years ended December 31, 2009. However, if all other factors were to remain unchanged, we expect that a one-year increase in the useful lives of the largest categories of our plant in service (which accounts for more than three-fourths of...

  • Page 49
    ... flows associated with these other inputs were included in the annual cash flow projections, the present value of the unlevered free cash flows of the segment, after investment in the network, subscribers, etc., is attributable to the wireless FCC licenses. The terminal value of the segment, which...

  • Page 50
    ... Revenue Arrangements" (Accounting Standards Update (ASU) 2009-13), which addresses how revenues should be allocated among all products and services included in our sales arrangements. It establishes a selling price hierarchy for determining the selling price of each product or service, with vendor...

  • Page 51
    ... in 2010. Among the major provisions of the bills are the taxation of the Medicare Part D subsidy, Medicare payment reforms, an excise tax on "Cadillac" plans as well as mandates for providing coverage and other requirements for delivery of health care to employees and retirees. The final outcome of...

  • Page 52
    .... Expenditures were used for network capacity growth, integration and upgrades to our Universal Mobile Telecommunications System/High-Speed Packet Access network, as well as for IT and other support systems for our wireless service. Capital expenditures in our Wireline segment, excluding interest...

  • Page 53
    ...19,020 primarily due to the decrease in retirement plan funded status. 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...

  • Page 54
    ... or speculative purposes. We do not foresee significant changes in the strategies we use to manage market risk in the near future. Interest Rate Risk The majority of our financial instruments are medium- and long-term fixed rate notes and debentures. Changes in interest rates can lead to significant...

  • Page 55
    ... do not hedge foreign currency translation risk in the net assets and income we report from these sources. However, we do hedge a ...provide currency at a fixed rate. Our policy is to measure the risk of adverse currency fluctuations by calculating the potential dollar losses resulting from changes...

  • Page 56
    ... of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs Purchase Period Total Number of Shares Purchased Average Price Paid per Share1 February 1, 2009 - February 28, 2009 Total 1 133,334 133,334 $25.16...

  • Page 57
    ... customers, who tend to be heavy users of our data and wireless services, may be forced to delay or reduce or be unable to finance purchases of our products and services and may delay payment or default on outstanding bills to us. In addition, we contract with large financial institutions to support...

  • Page 58
    ... breaches of network or IT security that affect our wireline and wireless networks, including telephone switching offices, microwave links, thirdparty owned local and long-distance networks on which we rely, our cell sites or other equipment, could have a material adverse effect on our operations...

  • Page 59
    ... be material. Continuing growth in our wireless services will depend on continuing access to adequate spectrum, deployment of new technology and offering attractive services to customers. The wireless industry is undergoing rapid and significant technological changes and a dramatic increase in usage...

  • Page 60
    ... jurisdictions. • Our ability to adequately fund our wireless operations, including payment for additional spectrum; network upgrades and technological advancements. • Changes in our corporate strategies, such as changing network requirements or acquisitions and dispositions, to...

  • Page 61
    Consolidated Statements of Income Dollars in millions except per share amounts 2009 2008 2007 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) ...

  • Page 62
    ... - Net Investments in Equity 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...

  • Page 63
    ... on license exchange Changes in operating assets and liabilities: Accounts receivable Other current assets Accounts payable and accrued liabilities Share-based payment excess tax benefit Net income attributable to noncontrolling interest Other - net Total adjustments Net Cash Provided by Operating...

  • Page 64
    Consolidated Statements of Changes in Stockholders' Equity Dollars and shares in millions except per share amounts 2009 Shares Amount Shares 2008 Amount Shares 2007 Amount Common Stock Balance at beginning of year Issuance of shares Balance at end of year Additional Paid-In Capital Balance at ...

  • Page 65
    ... of Changes in Stockholders' Equity (continued) Dollars and shares in millions except per share amounts 2009 Amount 2008 Amount 2007 Amount Accumulated Other Comprehensive Income (Loss) Attributable to AT&T, net of tax: Balance at beginning of year Foreign currency translation adjustments, net of...

  • Page 66
    ... include 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...

  • Page 67
    ..., and settlements instead of netting these changes. With respect to matters ...ended December 31, 2009. This guidance significantly increased the amount of annual disclosures for plan assets in our annual report, and it will increase our future interim disclosures in that regard (see Note 11). Business...

  • Page 68
    ...uncertain. We review these items regularly in light of changes in federal and state tax laws and changes in our business. We report, on a net basis, taxes imposed by governmental authorities on revenue-producing transactions between us and our customers in our consolidated statements of income. Cash...

  • Page 69
    ... the three months following the end of the reporting period as bills are received. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses that result from the failure or inability of our customers to make required payments. When determining the allowance...

  • Page 70
    ... spectrum to provide wireless communications services. While FCC licenses are issued for a fixed time (generally...management of the business on a national scope. During the fourth quarter of 2009, we completed the annual impairment tests for indefinite-lived wireless FCC licenses. These annual...

  • Page 71
    ... to expand our wireless and Wi-Fi coverage area. During 2007, we acquired Interwise®, a global provider of voice, Web and video conferencing services to businesses, for $122 and Ingenio®, a provider of Pay Per Call® technology for directory and local search business, for $195, net of cash. We...

  • Page 72
    ... and managed networking to business customers. Additionally, we offer satellite television services through our agency arrangements. The Advertising Solutions segment includes our directory operations, which publish Yellow and White Pages directories and sell directory advertising and Internet-based...

  • Page 73
    ...the year ended Wireless Wireline Other Revenues from external customers Intersegment revenues Total segment operating revenues Operations and support expenses Depreciation and amortization expenses Total segment operating expenses Segment operating income Interest expense Equity in net income of...

  • Page 74
    ... basis, consistent with the management of the business on a national scope. These annual impairment tests resulted in no impairment of indefinite-lived goodwill or wireless FCC licenses in 2009 and 2008. Goodwill in the Other segment as of January 1, 2008, is net of a $1,791 impairment that...

  • Page 75
    ...spectrum to provide wireless communications services. While FCC licenses are issued for a fixed time,...businesses and its Mexican yellow pages business to a new holding company, Telmex Internacional, S.A.B. de C.V. (Telmex Internacional). Our investment in Telmex Internacional is 9.9%. We are a member...

  • Page 76
    ... balance sheets: 2009 2008 Beginning of year Additional investments Equity in net income of affiliates Dividends received Currency translation adjustments Other adjustments End of year $2,332 44 734 (317) 125 3 $2,921 $2,270 - 819 (164) (574) (19) $2,332 Current maturities of long-term debt...

  • Page 77
    ...general corporate purposes, including support of commercial paper borrowings and other short-term borrowings. There is no material adverse change ... 2009, we had no borrowings outstanding under this agreement. Defaults under the agreement, which would permit the lenders to accelerate required payment...

  • Page 78
    ...could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used at December 31, 2009 and 2008. See Note 11 for disclosures relating to pension and other postemployment benefits. Long-Term Debt and Other Financial Instruments The carrying...

  • Page 79
    ... to income. In the year ended December 31, 2009, no material ineffectiveness was measured. Non-designated and Discontinued Hedging Instruments Changes in the fair value of non-designated derivatives are recorded in other income (expense) - net, along with the change in fair value of the underlying...

  • Page 80
    ...Dollars...long-term debt $(216) 216 In addition, the net swap settlements that accrued and settled in the year ended December 31, 2009, were also reported... account applicable tax laws, our experience in managing tax...of the change in our UTB balance from January 1, 2009 to December 31, 2009, and January...

  • Page 81
    ... income taxes, income from discontinued operations, extraordinary items and cumulative effect of accounting changes is as follows: 2009 2008 2007 Taxes computed at federal statutory rate Increases (decreases) in income taxes resulting from: State and local income taxes - net of federal income tax...

  • Page 82
    ... care coverage with reasonable cost sharing. In August 2009, retirees were informed of medical and drug coverage changes. In addition, we adopted changes to our pension plans consistent with the Pension Protection Act of 2006 (PPA). Because of these modifications, our amortization of prior service...

  • Page 83
    ...406) 5 - (2,548) 120 $37,531 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 2009 2008 Postretirement Benefits 2009 2008 Fair value of plan assets at beginning of year Actual return on...

  • Page 84
    ... in several line items above. Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Pension Benefits 2009 2008 2007 Postretirement Benefits 2009 2008 2007 Net loss (gain) Prior service cost (credit) Amortization of net loss (gain) Amortization of prior...

  • Page 85
    ..., or to be invested, to provide for the benefits included in the projected benefit obligations. In setting the long-term assumed rate of return, management considers capital markets future expectations and the asset mix of the plans' investments. Actual long-term return can, in relatively stable...

  • Page 86
    ...2009, the company announced that the annual dollar caps would be enforced for some groups beginning in 2010, with alternative uncapped plans available and participants assumed to move to the uncapped plans... to be avoided by managing the aggregation of all accounts with portfolio benchmarks. Asset...

  • Page 87
    ... paid to transfer a liability in an orderly transaction between market participants at the measurement date. See "Fair Value Measurement" for further discussion. Investments in securities traded on a national securities exchange are valued at the last reported sales price on the last business day of...

  • Page 88
    ...) include accounts receivable, accounts payable and net adjustment for securities lending payable. Postretirement Assets and Liabilities at Fair Value as of December 31, 2009 Level 1 Level 2 Level 3 Total Interest bearing investments Equity securities: Domestic International Fixed income...

  • Page 89
    ... Assets still held at reporting date Purchases, sales, issuances and settlements (net) Balance, End of Year $ 669 23 (76) (33) $583 $ 210 (34) (62) 3 $117 $ 879 (11) (138) (30) $ 700 Supplemental Retirement Plans We also provide senior- and middle-management employees with nonqualified, unfunded...

  • Page 90
    ... (60) (5) $ 14 2009 2008 Net loss (gain) Amortization of net loss (gain) Amortization of prior service cost Total recognized in net pension cost and other comprehensive income $75 (8) - $67 $70 (2) - $68 Benefit obligations at end of year Fair value of plan assets Funded status at end of year...

  • Page 91
    ...payment arrangements was $121 for 2009, compared to $63 for 2008 and $275 for 2007. Under our various plans, senior and other management... 31, 2009, and changes during the year then ended, is presented below (shares in millions): Options Shares Weighted-Average Exercise Price Weighted-Average...

  • Page 92
    Notes to Consolidated Financial Statements (continued) Dollars in millions except per share amounts A summary of the status of our nonvested stock units, which includes performance stock units as of December 31, 2009, and changes during the year then ended is presented as follows (shares in ...

  • Page 93
    ... represents our quarterly financial results: Stock Price Calendar Quarter Total Operating Revenues Operating Income Net Income Net Income Attributable to AT&T Basic Earnings Per Share1 Diluted Earnings Per Share1 High Low Close 2009 First Second Third Fourth Annual 2008 First Second Third Fourth...

  • Page 94
    ...not concluded by year-end, are the responsibility of management, as is all other information included in the Annual Report, unless otherwise indicated. ... careful selection of its managers, by organizational arrangements that provide an appropriate division of responsibility and by communication ...

  • Page 95
    ... flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles. As discussed in Note 1 to the consolidated financial statements, in 2009 the Company changed its presentation of noncontrolling interests with the adoption of...

  • Page 96
    ...of Management. Our responsibility is to express an opinion on the company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and...

  • Page 97
    ...Walter A. Haas School of Business University of California at Berkeley Director since 1999 Ameritech Director 1997-1999 Background: Economics, education Retired Chairman of the Board and Chief Executive Officer United Parcel Service, Inc. Director since 2006 BellSouth Corporation Director 2000-2006...

  • Page 98
    ...Services, Inc. Rick Lindner, 55 Senior Executive Vice President and Chief Financial Officer John Stankey, 47 President and Chief Executive Officer AT&T Operations, Inc. Bill...Executive Officer AT&T Mobility and Consumer Markets Ron Spears, 61 President and Chief Executive Officer AT&T Business ...

  • Page 99
    ... Please mail all account inquiries and other requests for assistance regarding your stock ownership to: AT&T Inc. c/o Computershare Trust Company, N.A. P.O. Box 43078 Providence, RI 02940-3078 You may also reach the transfer agent for AT&T Inc. at [email protected] or visit the Web site at...

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