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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
    ... devices. Wrap it all in an open innovation environment that spawns fresh ideas and breakthrough thinking. When 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...

  • Page 3
    ... execution across our business - has driven industry-leading growth. In 2010: Wireless connections on our network increased by 8.9 million, the largest annual gain in our history. Wireless data revenues increased 28.7 percent, the strongest growth among major U.S. wireless providers. AT&T U-verseSM...

  • Page 4
    ...'s more powerful and capable than ever. Our domestic wireless network covers more than 300 million people, and we provide the broadest international access of any U.S. mobile provider. Our global networking capabilities provide advanced connections for businesses to 182 countries. And on an average...

  • Page 5
    ... solutions can help transform entire business models - helping enterprises rethink everything from marketing to customer service to inventory management. We also have promising industry-specific opportunities - in health care, for example, where our network can help improve service delivery through...

  • Page 6
    ... a thought to whether they happen to be on a wired or wireless network. We're uniquely positioned to make this kind of cross-platform access a reality. In fact, we've already started to move in that direction with services like U-verse Mobile, which lets customers download and watch video content on...

  • Page 7
    AT&T also has led the way in wireless connectivity for nontraditional devices and applications - everything from eReaders to personal navigation devices to home security monitoring. Businesses, too, are using mobile broadband connectivity for a host of functions, including location-based advertising...

  • 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
    ... capabilities. Because AT&T's wireless network operates on the global standard, containers can be monitored wirelessly, virtually anywhere. And, of course, the AT&T global network is there when needed - providing the reliable, highly secure data communications Kirsen's customers demand. AT&T Inc...

  • Page 12
    ... 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 growth in wireline consumer revenues per household...

  • Page 13
    ... any place that's connected. And because he's with 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...

  • Page 14
    948ft ELEV. GAIn MILES TRAVELED 5.9 COnnECTIOnS "AT&T takes a truly open and collaborative approach to its relationship with Trimble," says Rich Rudow (right), general manager for Trimble Outdoors. Rich and Kris Wagner, marketing director for Trimble Outdoors, are pictured on South Mountain near ...

  • Page 15
    ...&T were willing to invest the time and resources to help us realize our vision," says Larry Fox, director of business development at Trimble Outdoors. "And they've offered more than dedicated product management resources to help us deploy our apps on wireless devices. They've also worked with us to...

  • 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
    ...worldwide look for information on Team USA and seek in-depth reporting ...manage during down cycles. AT&T Synaptic Hosting provides a Web hosting solution that expands and contracts based on the amount of traffic to the website...is the ability to focus on supporting U.S. Olympic and Paralympic athletes,...

  • 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
    ... Torch is the best BlackBerry smartphone yet. When she's on the go, Melissa 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...

  • Page 20
    ... 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 for AT&T. 18 AT&T Inc.

  • Page 21
    ...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 mHealth Solution allows patients to enter information, including blood sugar readings...

  • Page 22
    ... app developer Sencha, in Palo Alto. Sequoia connected Sencha with AT&T through the fast-pitch process. The resulting 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...

  • Page 23
    ... AT&T moved quickly to open its network to developers in unprecedented ways, giving them easy access to network capabilities, better development tools and virtual network environments where they can experiment. AT&T has opened innovation centers in California, Texas and Israel and, in 2010, engaged...

  • 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
    ... - including acquisitions and spectrum purchases - in its wired and 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...

  • 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
    ...carriers.4 Gartner Most Admired In 2010, leading industry analyst firm Gartner recognized AT&T in the Leaders Quadrant for: Cloud Infrastructure As A Service and Web Hosting; U.S. Telecommunications Service Providers; Web Conferencing; Managed Security Service Providers, North America; Asia/Paci...

  • Page 30
    ... for Communities In Schools site coordinators at more than 20 schools across the U.S. is just a small part of 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...

  • Page 31
    ...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 Firm Report of...

  • Page 32
    ... in which we owned 60% and was accounted for under the equity method. 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...

  • Page 33
    ... Accounting Policies and Estimates" and Note 1 for further discussion of the change and the impact to our operating results. Operating revenues increased $1,767, or 1.4%, in 2010 and decreased $930, or 0.8%, in 2009. Revenues in 2010 reflect the continued growth in wireless service revenue...

  • Page 34
    ... as increasing competition. Total switched access lines decreased 11.6% in 2010 and 11.2% in 2009. Customers disconnecting access lines switched to wireless, Voice over Internet Protocol (VoIP) and cable offerings or terminated service permanently as businesses closed or consumers left residences...

  • Page 35
    ... to 6% in 2009. This segment includes our directory operations, which publish Yellow and White Pages directories and sell directory advertising, Internet-based advertising and local search. The Other segment accounted for approximately 1% of our 2010 and 2009 total segment operating revenues. Since...

  • Page 36
    ... data-centric devices, with customers typically on lower-priced data-only plans compared with customers on 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...

  • Page 37
    ... subscribers are on FamilyTalk® Plans or business discount plans. Such offerings are intended to encourage existing customers to upgrade their current services and/or add connected devices, attract customers from other providers, and minimize customer churn. In fact, for 2010, over 65% of our...

  • Page 38
    Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Dollars in millions except per share amounts Service revenues are comprised of local voice and data services, roaming, long-distance and other revenue. Service revenues increased $4,947, or 10.2%, in ...

  • Page 39
    ..., the disconnection of additional lines and economic pressures. • Long-distance revenues decreased $1,562, or 13.9%, in 2010 and $2,036, or 15.3%, in 2009 primarily due to a net decrease in demand for long-distance service, due to slower demand from business and consumer customers, which...

  • Page 40
    ...frame relay and asynchronous transfer mode services, decreased $431, or 21.6%, in 2010 and $521, or 20.7%, in 2009. This decrease is primarily due to lower demand as customers continue to shift to IP-based technology such as Virtual Private Networks (VPN), DSL and managed Internet services, and the...

  • Page 41
    ... Information Telephone, Wired Broadband and Video Connections Summary Our switched access lines and other services provided by our local exchange telephone subsidiaries at December 31, 2010, 2009 and 2008, are shown below and trends are addressed throughout this segment discussion. Percent Change...

  • Page 42
    ...). We expect 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 print directory advertising. Where available, our U-verse services have proved effective in stemming...

  • Page 43
    ... and billing so we can realize our strategy of bundling services and providing a simple customer experience. We expect our 2011 operating income margin to improve, as our revenues improve. Expenses related to growth areas of our business, especially in the wireless, U-verse and strategic business...

  • Page 44
    ... 31, 2010, we served 95.5 million customers. We have also begun transitioning our network to more advanced LTE technology. We continue to expand the number of locations, including airports and cafés, where customers can access broadband Internet connections using wireless fidelity (local radio...

  • Page 45
    ... Internet access provider may engage in reasonable network management in order to address network congestion, prevent harm to the network or users, or take other reasonable steps to manage their network. COMPETITION Competition continues to increase for telecommunications and information services...

  • Page 46
    .... In response to these competitive pressures, for several years we have utilized a bundling strategy that rewards customers who consolidate their services (e.g., local and long-distance telephone, high-speed Internet, wireless and video) with us. We continue to focus on bundling wireline and...

  • Page 47
    ... must be disclosed, but no such changes have occurred in the three years ended December 31, 2010. 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 75% of our...

  • Page 48
    ...reporting units and additional testing would still have not been necessary. Wireless FCC licenses are tested for impairment on an aggregate basis, consistent with the management of the business... We expect wireless revenue growth to trend down from our 2010 growth rate of 9.3% to a long-term growth ...

  • Page 49
    ...end of 2008, we concluded the severity of decline had led to an other-than-temporary decline in the value of assets contained in an independently managed...outside their company's local service area, for telephone service they purchased from another provider, is a "defined benefit plan" within the ...

  • Page 50
    ... 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 the class as all persons who from April 1, 2003, until the present had...

  • Page 51
    .... During 2010, cash provided by investing activities consisted of: • $1,830 from dispositions of non-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...

  • Page 52
    ... Interest Settlement Rate applicable to Dollars for a period of one month plus 1.00%, plus (2) a rate based on AT&T's credit default swap mid-rate spread and subject to a floor or cap as set forth in the Agreement (Applicable Margin) minus 1.00% provided such total exceeds zero; or 50 AT&T Inc...

  • Page 53
    ... Settlement Rate applicable to Dollars for a period of one month plus 1.00%, plus (2) a rate based on AT&T's credit default swap mid-rate spread and subject to a floor or cap as set forth in such Agreement (Applicable Margin) minus 1.00% provided such total exceeds zero; or • at a rate equal...

  • 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
    Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Dollars in millions except per share amounts STOCK ... Integrated Telecom Index (S&P 500 Integrated Telecom). Total return equals stock price appreciation plus reinvestment of dividends. 54 AT&T Inc.

  • Page 57
    ... the cost of providing such credit. While we have been successful in continuing to access the credit and fixed income markets when needed, a financial crisis could render us unable to access these markets, severely affecting our business operations. Changes in available technology could increase...

  • Page 58
    ... areas and compete for customers based principally on price, service/device offerings, call quality, coverage area and customer service. In addition, we are likely to experience growing competition from providers offering services using alternative wireless technologies and IP-based networks as well...

  • Page 59
    ... wireless networks, including telephone switching offices, microwave links, third-party owned local and long-distance ... providing such services becomes higher than expected, customers may decide to purchase services ...and hour, personal injury, and our advertising, sales and billing and collection...

  • Page 60
    Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Dollars in millions except per share amounts CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS Information set forth in this report contains forward-looking statements that are subject to risks...

  • Page 61
    ...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... Discontinued Operations, net of tax Net Income (Loss) Less: Net Income Attributable to Noncontrolling Interest Net ...

  • 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
    ...) loss from discontinued operations (779) Changes in operating assets and liabilities: Accounts receivable (99) Other current assets 717 Accounts payable and accrued liabilities (2,414) Net income attributable to noncontrolling interest (315) Other - net (845) Total adjustments Net Cash Provided by...

  • Page 64
    Consolidated Statements of Changes in Stockholders' Equity Dollars and shares in millions except 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 ...

  • Page 65
    Consolidated Statements of Changes in Stockholders' Equity (continued) Dollars and shares in millions except per share amounts 2010 Amount 2009 Amount As Adjusted 2008 Amount Accumulated Other Comprehensive Income (Loss) Attributable to AT&T, net of tax: Balance at beginning of year Foreign ...

  • Page 66
    ... The annual recognition of actuarial gains and losses, which is reported as "Actuarial loss on pension and postretirement benefit plans" on our consolidated statement of cash flows total $2,521 in 2010, $215 in 2009 and $25,150 in 2008. This change did not have a material impact on cash provided by...

  • Page 67
    ... our results under our historical method and as adjusted to reflect the accounting change: Historical Accounting Method As Adjusted 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...

  • Page 68
    ... fair value. At December 31, 2010, we held $332 in cash and $1,105 in money market funds and other cash equivalents. Revenue Recognition Revenues derived from wireless, local telephone, long-distance, data and video services are recognized when services are provided. This is based upon either usage...

  • Page 69
    ... newly-available information, such as rate changes and new contractual agreements. Bills reflecting actual incurred information are generally not received until three to nine months subsequent to the end of the reporting period, at which point a final adjustment is made to the accrued switched...

  • Page 70
    ... cash. Sterling provides business applications and integration solutions to approximately 18,000 customers worldwide. In conjunction with the sale, we divested $649 of goodwill and other intangible assets. We also entered into a transition services agreement with IBM related to short-term support of...

  • Page 71
    During the second quarter of 2010, we accounted for Sterling as a discontinued operation. We determined that the cash inflows under the transition services agreement and our cash outflows under the enterprise license agreement will not constitute significant continuing involvement with Sterling's ...

  • Page 72
    ...The Advertising Solutions segment includes our directory operations, which publish Yellow and White Pages directories and sell directory advertising and Internet-based advertising and local search. The Other segment includes results from customer information services, our portion of the results from...

  • Page 73
    ...2009 and 2008 are as follows: 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...

  • Page 74
    ...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 follows...

  • Page 75
    ... spectrum to provide wireless communications services. In 2010, we recorded an $85 impairment for a trade name. NOTE 7. EQUITY METHOD INVESTMENTS Investments in partnerships, joint ventures and less-thanmajority-owned subsidiaries in which we have significant influence are accounted for under...

  • Page 76
    ...362 of New Cingular Wireless Services, Inc. 8.75% senior notes due 2031 and $1,537 of AT&T Corp. (ATTC) 8.00% senior notes due 2031 for $3,500 of new 5.35% AT&T Inc. global notes due 2040 plus a cash payment. • $32 in repayments of capitalized leases. As of December 31, 2010 and 2009, we were...

  • Page 77
    ... Settlement Rate applicable to Dollars for a period of one month plus 1.00%, plus (2) a rate based on AT&T's credit default swap mid-rate spread and subject to a floor or cap as set forth in such Agreement (Applicable Margin) minus 1.00% provided such total exceeds zero; or • at a rate equal...

  • Page 78
    ... 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 at December 31, 2010, and December 31, 2009. Long-Term Debt and Other Financial Instruments The carrying amounts and estimated fair values...

  • Page 79
    ... in the fair value of the interest rate swaps offset changes in the fair value of the fixed-rate notes payable they hedge due to changes in the designated benchmark interest rate and are recognized in interest expense, though they net to zero. Gains or losses realized upon early termination of our...

  • Page 80
    ... portion is reported as a ... other income (expense) - net in each period. We designate...fixed foreigndenominated rate to a fixed U.S. denominated interest rate. We evaluate the effectiveness of our cross-currency swaps each quarter. In the years ended December 31, 2010... provide currency at a fixed...

  • Page 81
    ... For the year ended December 31, 2010 2009 In March 2010, the President of the United States signed into law comprehensive healthcare reform legislation under the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, which included a change in the...

  • Page 82
    ... impact the effective income tax rate as of the end of the year $ 5,969 324 562 (1,989)...closed for federal purposes. We were unable to reach agreement with the IRS regarding treatment of Universal Service...2010 2009 2008 Federal: Current Deferred - net State, local and foreign: Current Deferred - net...

  • Page 83
    ... postretirement benefit plan to employee service rendered to the valuation date. The following table presents this reconciliation and shows the change in the projected benefit obligation for the years ended December 31: Pension Benefits 2010 2009 Postretirement Benefits 2010 2009 Benefit obligation...

  • Page 84
    ... Financial Statements (continued) 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...

  • Page 85
    ...return on plan assets of 8.25% for 2011 and 8.50% for 2010 reflects the average rate of earnings expected on the funds invested, 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...

  • Page 86
    ... August 2009, the Company announced that the 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...

  • Page 87
    ... quotes are available, fair value will be determined based solely upon such quotes provided. Managers will typically use a pricing matrix for determining fair value in cases where an approved pricing service or a broker/dealer is unable to provide a fair valuation for specific fixed-rate securities...

  • Page 88
    ...Dollars in millions except per share amounts The following table sets forth by level, within the fair value hierarchy, the pension and postretirement assets and liabilities at fair value as of December 31, 2010...Fixed...Total plan net assets at fair value Other assets (liabilities)1 Total Plan Net ...

  • Page 89
    ...2010 Level 1 Level 2 Level 3 Total Interest bearing investments Equity securities: International Domestic Fixed...Total plan net assets at fair value Other assets (liabilities)1 Total Plan Net ...accounts receivable, accounts payable and net adjustment for securities lending payable. AT&T Inc. 87

  • Page 90
    ...Consolidated Financial Statements (continued) Dollars in millions except per share amounts The table below sets forth 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...

  • Page 91
    ...set... and preferred securities Fixed income funds Registered... Liabilities at fair value Total plan net assets at fair value Other assets (liabilities)1 Total Plan Net Assets 1 $ 464 - ... include accounts receivable, accounts payable and net adjustment for securities lending payable. AT&T Inc. 89

  • Page 92
    ... exchange contracts Assets at fair value Foreign exchange contracts payable Written options Liabilities at fair value Total plan net assets at fair value Other assets (liabilities)1 Total Plan Net Assets 1 $ 372 2,121 2,363 - - - - 16 182 (1) - - 102 75 15 - $ - - 11 49 11 57 276 301 - - 468 155...

  • Page 93
    ...expected benefit payments under our pension and postretirement plans: Pension Benefits Postretirement Benefits Medicare Subsidy Receipts The following table provides information for our supplemental retirement plans with accumulated benefit obligations in excess of plan assets: 2010 2009 Projected...

  • 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
    ... as of December 31, 2010, and changes during the year then ended, is presented below (shares in millions): Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value1 Options Shares Outstanding at January 1, 2010 Granted Exercised Forfeited or...

  • Page 96
    ... 31, Consolidated Balance Sheets 2010 2009 Consolidated Statements of Changes in Stockholders' Equity 2010 2009 2008 Accounts payable and accrued liabilities: Accounts payable Accrued rents and other Accrued payroll and commissions Deferred directory revenue Accrued interest Compensated future...

  • Page 97
    NOTE 16. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following tables represent our quarterly financial results: 2010 Calendar Quarter First3 Second4 Third5 Fourth6 Annual Total Operating Revenues Operating Income2 Income (Loss) from Discontinued Operations Net Income2 Income from Continuing ...

  • Page 98
    ... year end, are the responsibility of management, as is all other information included in the Annual Report, unless otherwise indicated. The financial statements of AT&T Inc. (AT&T) have been audited by Ernst & Young LLP, Independent Registered Public Accounting Firm. Management has made available to...

  • Page 99
    ... of the three years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles. As discussed in Note 1 to the consolidated financial statements, the Company has elected to change its method of accounting for actuarial gains and losses and the calculation...

  • Page 100
    ...balance sheets of the Company as of December 31, 2010 and 2009, and the related consolidated statements of income, changes in stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2010 and our report dated February 28, 2011 expressed an unqualified opinion...

  • Page 101
    ... Management (1,2,5) S. K. and Angela Chan Professor of Walter A. Haas School of Business ...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...

  • Page 102
    ...Senior Executive Vice President and General Counsel Bill Blase Jr., 55 Senior Executive Vice ...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...

  • Page 103
    ... A Service and Web Hosting (Leong, December 2010); U.S. Telecommunications Service Providers (Chamberlin/Redman, November 2010); Web Conferencing (Smith, November 2010); Managed Security Service Providers, North America (Kavanagh/Pescatore, November 2010); Asia/Pacific Network Service Providers (Eng...

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