SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
(Mark One) | ||
FORM 11-K | ||
x | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2007 | ||
OR | ||
¨ | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to | ||
Commission File Number:1-8610 | ||
A. Full title of the plan and the address of the plan, if different from that of the issuer named below: | ||
AT&T SAVINGS AND SECURITY PLAN | ||
Byname of issuer of the securities held pursuant to the plan and the address of its principal executive office: | ||
AT&T INC. | ||
175 E. Houston, San Antonio, Texas 78205 |
Financial Statements, Supplemental Schedule and Exhibit
Table of Contents
Page
Report of Independent Registered Public Accounting Firm | 1 |
Financial Statements: | |
Statements of Net Assets Available for Benefits as of December 31, 2007 and 2006 | 2 |
Statement of Changes in Net Assets Available for Benefits for the | |
Year Ended December 31, 2007 | 3 |
Notes to Financial Statements | 4 |
Supplemental Schedule: | |
Schedule H, Line 4(i) – Schedule of Assets (Held at End of Year) | 10 |
Exhibit: | |
23 – Consent of Independent Registered Public Accounting Firm |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
AT&T Inc., Plan Administrator
for AT&T Savings and Security Plan
We have audited the accompanying statements of net assets available for benefits of AT&T Savings and Security Plan as of December 31, 2007 and 2006, and the related statement of changes in net assets available for benefits for the year ended December 31, 2007. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2007 and 2006, and the changes in its net assets available for benefits for the year ended December 31, 2007, in conformity with U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2007, is presented for purposes of additional analysis is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to auditing procedures applied in our audits of the financial statements, and in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
/s/ ERNST & YOUNG LLP
San Antonio, Texas
June 26, 2008
1
AT&T SAVINGS AND SECURITY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
(Dollars in Thousands)
December 31, | ||||||||
2007 | 2006 | |||||||
ASSETS | ||||||||
Investments (at fair value) | $ | 7,105,534 | $ | 6,382,912 | ||||
Market value of securities on loan | 173,988 | 130,909 | ||||||
Total Investments (See Note 3) | 7,279,522 | 6,513,821 | ||||||
Securities lending collateral | 177,620 | 133,350 | ||||||
Dividends and interest receivable | 144 | 104 | ||||||
Receivable for investments sold | 1,183 | 863 | ||||||
Total Assets | 7,458,469 | 6,648,138 | ||||||
LIABILITIES | ||||||||
Overdrafts | 4,178 | 197 | ||||||
Payable for security purchased | 2,416 | - | ||||||
Administrative expenses payable | 2,497 | 4,742 | ||||||
Securities lending payable | 177,620 | 133,350 | ||||||
Total Liabilities | 186,711 | 138,289 | ||||||
Net Assets Available for Benefits (at fair value) | 7,271,758 | 6,509,849 | ||||||
Adjustment from fair value to contract value for fully benefit-responsive investment contracts | (4,213 | ) | 9,571 | |||||
Net Assets Available for Benefits | $ | 7,267,545 | $ | 6,519,420 | ||||
See Notes to Financial Statements. |
2
AT&T SAVINGS AND SECURITY PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2007
(Dollars in Thousands)
Net Assets Available for Benefits, December 31, 2006 | $ | 6,519,420 | ||
Additions to Net Assets: | ||||
Contributions: | ||||
Participant contributions | 302,292 | |||
Employer contributions | 165,031 | |||
467,323 | ||||
Investment Income: | ||||
Net appreciation in value of investments | 694,168 | |||
Dividends on AT&T common shares | 134,193 | |||
Interest | 59,471 | |||
Income on collateralized securities | 512 | |||
888,344 | ||||
Transfer from merged plans (see Note 1) | 104,527 | |||
Total Additions | 1,460,194 | |||
Deductions from Net Assets: | ||||
Administrative expenses | 9,704 | |||
Distributions | 702,365 | |||
Total Deductions | 712,069 | |||
Net Assets Available for Benefits, December 31, 2007 | $ | 7,267,545 | ||
See Notes to Financial Statements. | ||||
3
AT&T SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Dollars in Thousands)
1. | Plan Description - The AT&T Savings and Security Plan (Plan) was established by SBC Communications Inc. (SBC) to provide a convenient way for eligible employees to save for retirement on a regular and long-term basis. In connection with the November 2005 merger of AT&T Corp., SBC changed its name to AT&T Inc. (AT&T or the Company).The majority of eligible employees are represented by the Communications Workers of America or the International Brotherhood of Electrical Workers. The following description of the Plan provides only general information. The Plan has detailed provisions covering participant eligibility, participant allotments from pay, participant withdrawals, participant loans, employer contributions and related vesting of contributions and Plan expenses. The Plan text and prospectus include complete descriptions of these and other Plan provisions. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). |
In 2007, AT&T amended the Plan (noted as SSP in the table below) and the AT&T Savings Plan (SP) to merge the participant balances and assets of the AT&T PAYSOP (PAYSOP), Pacific Telesis Group Employee Stock Ownership Plan (ESOP) and the Southern New England Telephone Company Tax Reduction Act Stock Ownership Plan (TRASOP) into the AT&T Shares Fund on August 1, 2007 as follows:
Employment Status as of 7/31/2007 | As of 7/31/2007, account in: | Transferred to: | |
Nonbargained Employee | Active | SP | SP |
SP and SSP | |||
SSP | SSP | ||
Neither Plan | SP (create account) | ||
Inactive | SP | SP | |
SP and SSP | |||
SSP | SSP | ||
Neither Plan | SP (create account) | ||
Bargained Employee | Active | SSP | SSP |
SP and SSP | |||
SP | SP | ||
Neither Plan | SSP (create account) | ||
Inactive | SSP | SSP | |
SP and SSP | |||
SP | SP | ||
Neither Plan | SSP (create account) |
Following the transfer of the participant balances and assets of the Plan, participants are able to withdraw their transferred balances, transfer those investments from the AT&T Shares Fund to other plan investment options (subject to normal fund transfer rules) or take loans against the balances.
Participants can invest their contributions in one or more of the following funds in either five dollar or 1% increments (depending upon applicable collective bargaining agreements): the AT&T Shares Fund, the Bond Fund, the Large Cap Stock Fund, the Interest Income Fund, the Global Equity Fund, the Mid and Small Cap Stock Fund and the International Stock Fund, altogether referred to as the Trust. The trustee is Mellon Trust of New England, National Association.
Company matching contributions are made solely in the form of shares of AT&T’s common stock held in an Employee Stock Ownership Plan (ESOP) which is a separate investment account of this Plan.
Dividends on shares in the AT&T Shares Fund and the ESOP can either be reinvested in the AT&T Shares Fund on a quarterly basis, or paid into a separate fund known as a Dividend Fund Account (DFA) for distribution at the end of the year. At the end of the year, dividends held in the DFA are paid out to the participant. Interest earned on dividends held in the DFA is paid into the AT&T Shares Fund. During 2007, Plan participants elected to receive $28,047 in dividend distributions. This amount is included in distributions on the statement of changes in net assets.
4
AT&T SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
(Dollars in Thousands)
Although it has not expressed any intent to do so, AT&T has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA and collective bargaining obligations. In the event that the Plan is terminated, subject to the conditions set forth by ERISA, the account balances of all participants shall be 100% vested.
2. | Accounting Policies - The accompanying financial statements were prepared in conformity with U.S. generally accepted accounting principles, which require management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Investments are stated at fair value. Investments in securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the year. If no sale was reported on that date, they are valued at the last reported bid price. Over-the-counter securities and government obligations are valued at the bid price or the average of the bid and asked price on the last business day of the year from published sources where available and, if not available, from other sources considered reliable. Cash and temporary assets are stated at fair value.
Common/collective trust funds are valued at quoted redemption values that represent the net asset values of units held at year-end which management has determined approximates fair value. Participant loans are reported at cost, which approximates fair value.
As required by Financial Accounting Standards Board Staff Position AAG INV-1 and SOP 94-4-1, “Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans” (the FSP), investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invests in fully benefit-responsive synthetic investment contracts (Synthetic GICs). The underlying investments of the Synthetic GICs are valued at quoted redemption values on the last business day of the Plan’s year-end. The fair value of the wrap contracts for the Synthetic GICs is determined using the market approach discounting methodology that incorporates the difference between current market level rates for contract level wrap fees and the wrap fee being charged. The difference is calculated as a dollar value and discounted by the prevailing interpolated swap rate as of period end. The contract value of the fully benefit-responsive investment contracts represents contributions plus earnings, less participant withdrawals and administrative expenses.
Purchases and sales of securities are reflected as of the trade date. Dividend income is recognized on the ex-dividend date. Interest earned on investments is recognized on the accrual basis.
The reasonable expenses of plan administration may be charged to the Trust in accordance with procedures adopted by the plan administrator (as defined by the Plan). Brokerage fees, transfer taxes and other expenses incident to the purchase of sale or securities by the Trustee shall be deemed to be part of the cost of such securities, or deducted in computing the proceeds, as the case may be. Taxes, if any, on any assets held or income received by the Trustee will be charged appropriately against the accounts of Plan participants as determined by the plan administrator. All expenses of administering the Plan that are not charged to the Trust will be borne by the respective participating companies in the Plan as determined by the plan administrator.
In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (FAS 157). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. Plan management is currently evaluating the impact of FAS 157.
5
AT&T SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
(Dollars in Thousands)
3. | Investments - Investments representing 5% or more of Plan net assets at December 31 were: |
2007 | 2006 | |||||||
Employee Stock Ownership Plan * | ||||||||
AT&T common shares | $ | 1,909,818 | $ | 1,644,967 | ||||
AT&T Shares Fund | ||||||||
AT&T common shares | 2,000,334 | 1,746,210 | ||||||
Large Cap Stock Fund | ||||||||
Barclays Global Investors Equity Index Fund F | 898,683 | 704,811 | ||||||
Mid and Small Cap Stock Fund | ||||||||
Barclays Global Investors EAFE Equity Extended Equity Market Fund F | 365,035 | 346,715 | ||||||
International Fund Barclays Global Investors EAFE Equity Index Fund F | 402,308 | 325,450 |
* Nonparticipant-directed
During 2007, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:
Common Stock | $ | 551,047 | ||
Common Collective Trusts | 143,121 | |||
Total | $ | 694,168 |
Fully Benefit-Responsive Investment Contracts
The Interest Income Fund consists of fully benefit-responsive investment contracts with various financial institutions and insurance companies that promise to repay principal plus accrued income at contract maturity, subject to the creditworthiness of the issuer. Interest crediting rates are generally established when the contract is purchased and are periodically reset. The Interest Income Fund invests in Synthetic GICs, also referred to as wrapper contracts. The assets supporting the Synthetic GICs are owned by the Plan and generally consist of high quality fixed income securities. At December 31, 2007 the underlying assets had a fair value of $846,296 and a contract value of $842,083. At December 31, 2006 the underlying assets had a fair value of and a contract value of $800,096 and $809,667. For the years ended December 31, 2007 and 2006, the average yield earned by the Plan on these contracts was 4.31% and 5.21%, and, the average yield earned by the Plan adjusted to reflect actual interest rate credited to participants, was 4.73% and 4.24%. No valuation reserves were recorded to adjust contract amounts as of December 31, 2007 or 2006.
A bank or insurance company issues a wrapper contract that provides preservation of principal, maintains a stable interest rate and provides daily liquidity at contract value for participant directed transactions, in accordance with the provisions of the Plan. Wrapper contracts amortize the realized and unrealized gains and losses on the underlying fixed income investments through adjustments to the future interest crediting rate. The issuer of the wrapper contract provides assurance that the adjustments to the interest crediting rate do not result in a future interest crediting rate that is less than zero, which would result in a loss of principal or accrued interest. The fair value of the wrapper contracts were $0 at December 31, 2007 and $32 at December 31, 2006.
Wrapper contracts’ interest crediting rates are typically reset on a monthly or quarterly basis and are based on the characteristics of the underlying fixed income securities. Other key factors that influence the interest crediting rates are market interest rates, the amount and timing of participant transactions into and out of the wrapper contract, investment returns on the underlying fixed income securities and the duration of those investments. All wrapper contracts provide for minimum interest crediting rate of zero percent. In the event that the interest crediting rate should fall to zero and the requirements of the wrapper contract are satisfied, the wrapper issuer will pay the Plan the shortfall needed to maintain the rate at zero, ensuring participants’ principal and accrued interest is protected.
6
AT&T SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
(Dollars in Thousands)
Changes in market interest rates can affect the yield to maturity and the market value of the underlying investment, and can have a material impact on the wrapper contract’s interest crediting rate. Additionally, participant withdrawals and transfers from the Interest Income Fund are paid at contract value but funded through the market value liquidation of the underlying investments, which also impacts the interest crediting rate. The resulting gains and losses in the market value of the underlying investments relative to the wrapper contract value are represented on the Plan’s Statements of Net Assets Available for Benefits as the “Adjustment from fair value to contract value for fully-benefit responsive investment contracts,” and totaled $(4,213) at December 31, 2007 and $9,571 at December 31, 2006. If this adjustment is positive, it indicates that the wrapper contract value is greater than the market value of the underlying investments and the embedded market value losses will be amortized in the future through a lower interest crediting rate. If the adjustment is negative, the embedded market gains would cause the future interest crediting rate to be higher.
In certain circumstances, the amount withdrawn from the wrapper contract could be payable at fair value rather than at contract value. These events include termination of the Plan, a material adverse change to the provisions of the Plan, if AT&T elects to withdraw from a wrapper contract in order to switch to a different investment provider or, in the event of a spin-off or sale of a division, if the terms of the successor plan do not meet the contract issuers’ underwriting criteria for issuance of a clone wrapper contract. Events that would permit a wrapper contract issuer to terminate a wrapper contract upon short notice include the Plan’s loss of its qualified status, un-cured material breaches of responsibilities or material and adverse changes to the provisions of the Plan. The Company does not believe any of the events are probable of occurring in the foreseeable future.
Securities Lending
The Plan is authorized to engage in the lending of certain Interest Income Fund assets. Securities lending is an investment management enhancement that utilizes the existing securities (fixed income investments) of the Plan to earn additional income. Securities lending involves the loaning of securities to a selected group of approved banks and broker-dealers. In return for the loaned securities, the trustee, prior to or simultaneous with delivery of the loaned securities to the borrower, receives collateral in the form of cash or U.S. Government securities as a safeguard against possible default of any borrower on the return of the loan. Each loan is initially collateralized, in the case of: (a) loaned securities denominated in U.S. dollars or whose primary trading market is located in the U.S., or (b) loaned securities not denominated in U.S. dollars or whose primary trading market is not located in the U.S. to the extent of 105% of the market value of the loaned securities. The collateral is marked to market on a daily basis. Securities on loan and collateral held under this program at December 31, 2007 and 2006 are reported on the accompanying statements of net assets available for benefits. The reported collateral includes noncash holdings of $8,534 and $23,775 at December 31, 2007 and 2006. Income earned on securities lending is used to offset the administrative expenses of the Plan and was $512 for the year ended December 31, 2007.
Investment Risk
Investments held by the Plan are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investments, it is at least reasonably possible that changes in the values of investments could occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefit. Plan participants’ accounts that are invested in the Company stock fund option are exposed to market risk in the event of a significant decline in the value of AT&T stock.
Additionally, the Plan invests in securities with contractual cash flows, such as asset backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by subprime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value, delinquencies or defaults, or both, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.
7
AT&T SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
(Dollars in Thousands)
4. | Nonparticipant-Directed Investments - Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments as of December 31 is as follows: |
2007 | 2006 | |||||||
Assets | ||||||||
AT&T common shares | $ | 1,909,818 | $ | 1,644,967 | ||||
Temporary cash investments | 1,766 | 395 | ||||||
Dividends and interest receivable | 10 | 6 | ||||||
Receivable for investments sold | 869 | 863 | ||||||
Total Assets | 1,912,463 | 1,646,231 | ||||||
Liabilities | ||||||||
Overdrafts | 503 | - | ||||||
Administrative expenses payable | 418 | 1,119 | ||||||
Payables for securities purchased | 2,416 | - | ||||||
Total Liabilities | 3,337 | 1,119 | ||||||
Net Assets Available for Benefits | $ | 1,909,126 | $ | 1,645,112 |
2007 | ||||
Net Assets Available for Benefits, December 31, 2006 | $ | 1,645,112 | ||
Employer contributions 1 | 165,031 | |||
Interest income | 69 | |||
Dividends | 17 | |||
Net appreciation in fair value of investments | 267,425 | |||
Administrative expenses | (2,494 | ) | ||
Distributions | (134,473 | ) | ||
Transfers to other fund(s) | (31,561 | ) | ||
264,014 | ||||
Net Assets Available for Benefits, December 31, 2007 | $ | 1,909,126 |
1 Employer contributions includes forfeitures allocated from the AT&T Shares Fund.
8
AT&T SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
(Dollars in Thousands)
5. | Tax Status - The Plan has received a determination letter from the Internal Revenue Service (IRS) dated March 25, 2004, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (IRC) and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the IRS, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Company has indicated that it will take the necessary steps, if any, to maintain the Plan's qualified status. |
6. | Reconciliation of Financial Statements to Form 5500 - The following is a reconciliation of Net Assets Available for Benefits per the financial statements to the Form 5500 as of December 31: |
2007 | 2006 | |||||||
Net Assets Available for Benefits per the financial statements | $ | 7,267,545 | $ | 6,519,420 | ||||
Adjustment from contract value to fair value for fully benefit-responsive investment contracts | 4,213 | (9,571 | ) | |||||
Distribution payable to participants | (196 | ) | (123 | ) | ||||
Net Assets Available for Benefits per the Form 5500 | $ | 7,271,562 | $ | 6,509,726 |
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500 for the year ended December 31, 2007:
Distributions to participants per the financial statements | $ | 702,365 | ||
Distributions payable to participants at December 31, 2007 | 196 | |||
Distributions payable to participants at December 31, 2006 | (123 | ) | ||
Distributions to participants per the Form 5500 | $ | 702,438 |
Distributions payable to participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, but not yet paid as of that date.
The following is a reconciliation of total additions per the financial statements to total income per the Form 5500 for the year ended December 31, 2007:
Total additions per the financial statements | $ | 1,460,194 | ||
Adjustment from contract value to fair value for fully benefit-responsive investment contracts at December 31, 2006 | 9,571 | |||
Adjustment from contract value to fair value for fully benefit-responsive investment contracts at December 31, 2007 | 4,213 | |||
Total income per the Form 5500 | $ | 1,473,978 |
Fully benefit-responsive contracts are recorded on the Form 5500 at fair value versus contract value on the financial statements.
9
AT&T SAVINGS AND SECURITY PLAN
EIN 43-1301883, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2007
(Dollars in Thousands)
Description of | Current | |||||
Identity of Issue | Investment | Cost | Value |
Employee Stock Ownership Plan | |||||||
* | AT&T common shares | 45,953,278 shares | $ | 1,145,216 | $ | 1,909,818 | |
* | Mellon Trust of New England, National | ||||||
Association Total Employee Stock | |||||||
Ownership Plan | Temporary cash investment | 1,766 | 1,766 | ||||
Total Employee Stock Ownership Plan | 1,146,982 | 1,911,584 | |||||
AT&T Shares Fund | |||||||
* | AT&T common shares | 48,131,231 shares | 2,000,334 | ||||
* | Mellon Trust of New England, National | ||||||
Association | Temporary cash investment | 6,077 | |||||
Total Shares Fund | ** | 2,006,411 | |||||
Bond Fund | |||||||
* | Barclays Global Investors Intermediate | ||||||
Government/Credit Bond Index Fund F | 13,896,027 units | ** | 268,193 | ||||
Large Cap Stock Fund | |||||||
* | Barclays Global Investors Equity Index | ||||||
Fund F | 41,073,273 units | ** | 898,683 | ||||
Interest Income Fund | |||||||
Bank of America Wrapper | Synthetic GIC | ||||||
#99-086, IR, *** | - | ||||||
Cabellas Credit Card Master Trust | Monoline Credit Card | 7,222 | |||||
Chase Insurance Trust | Bank Credit Card | 8,058 | |||||
Credit Suisse First Boston | Collateralized Mtg Obligation | 5,988 | |||||
Countrywide Home Loans | Home Equity SrSub | 5,567 | |||||
Countrywide Asset-backed Certificates | Home Equity SrSub | 3,542 | |||||
Federal Home Loan Mortgage Company | Agency CMO | 4,367 | |||||
**** | Federal Home Loan Mortgage Company | Agency CMO | 7,547 | ||||
Federal National Mtg Assn. - Adj Rate Mtg. | Agency Hybrid | 2,752 | |||||
Federal National Mtg Assn. - GTD REMIC. | Agency MF Fix | 8,636 | |||||
Federal National Mtg Assn. - GTD REMIC. | Agency MF Fix | 4,558 | |||||
Federal National Mtg Assn. - GTD REMIC. | Home Equity Agency | 1,835 | |||||
Federal National Mtg Assn. - GTD REMIC. | Agency PAC | 6,897 | |||||
Federal National Mtg Assn. - GTD REMIC. | Agency PAC | 4,811 | |||||
MBNA Master Credit Card Trust | Monoline Credit Card | 1,700 | |||||
MBNA Master Credit Card Trust | Monoline Credit Card | 6,021 | |||||
Marriot Vacation Club Owner | Collateralized Mtg Obligation Commercial/Corporate | 851 | |||||
Residential Funding Mtg Sec | Home Equity 2nd Monoline | 4,385 |
10
AT&T SAVINGS AND SECURITY PLAN
EIN 43-1301883, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - (continued)
December 31, 2007
(Dollars in Thousands)
Description of | Current | |||||
Identity of Issue | Investment | Cost | Value |
Sierra Timeshare Receivables Funding, LLC | Collateralized Mtg Obligation Commercial/Corporate | 3,351 | |||||
**** | United States Treasury | Treasury Note | 4,200 | ||||
**** | United States Treasury | Treasury Note | 8,465 | ||||
**** | United States Treasury | Treasury Note | 19,932 | ||||
TBC Inc PooledEmpDailyLiquidity | STIF | 5,613 | |||||
Cash on Hand | Cash | - | |||||
126,298 | |||||||
ING Life & Annuity | Synthetic GIC | ||||||
#60127, IR, *** | - | ||||||
Amex Optima CC MT | Monoline Credit Card | 5,492 | |||||
Capital One Master Trust | Monoline Credit Card | 7,931 | |||||
Federal Home Loan Mtg Multiclass | Agency | 3,220 | |||||
Federal Home Loan Mtg Multiclass | Agency NAS | 6,545 | |||||
Federal Home Loan Mtg Multiclass | Agency | 5,412 | |||||
Federal National Mtg. Assn. | Agency MF BLN | 4,837 | |||||
Federal National Mtg Assn GTD Remic | Home Equity Agency | 3,769 | |||||
GSAA | Home Equity SrSub | 4,328 | |||||
Household Auto Trust | SubPrime Auto | 7,140 | |||||
Household Auto Trust | SubPrime Auto | 3,949 | |||||
Nomura Asset Securities Corporation | Conduit | 5,075 | |||||
United States Treasury | Treasury Note | 3,482 | |||||
**** | United States Treasury | Treasury Note | 4,003 | ||||
**** | United States Treasury | Treasury Note | 8,015 | ||||
**** | United States Treasury | Treasury Note | 4,200 | ||||
**** | United States Treasury | Treasury Note | 8,392 | ||||
**** | United States Treasury | Treasury Note | 6,497 | ||||
Bear Stearns Commercial Mortgage | Non-Agency Comml Mort Backed | 8,515 | |||||
General Electric Capital Corp Sr Unsec | Corporate Bond | 2,066 | |||||
TBC Inc PooledEmpDailyLiquidity | STIF | 8,804 | |||||
Cash on Hand | Cash | (8,511) | |||||
103,161 | |||||||
JP Morgan Chase Wrapper | Synthetic GIC | ||||||
#426424-T, IR, *** | - | ||||||
Carmax Auto Owner Trust | NonPrime Auto | 3,595 | |||||
Daimler Chrysler NA hldg | Prime Auto | 4,237 | |||||
FHR | Agency NAS | 4,100 | |||||
Federal National Mtge Assn | Agency Hybrid | 2,287 | |||||
Federal National Mtge Assn | Agency Hybrid | 6,499 | |||||
Federal National Mtge Assn GTD Remic | Agency Fix | 3,890 | |||||
Federal National Mtge Assn | Agency Fix | 8,238 | |||||
**** | Federal National Mtge Assn | Agency Debenture | 15,076 |
11
AT&T SAVINGS AND SECURITY PLAN
EIN 43-1301883, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - (continued)
December 31, 2007
(Dollars in Thousands)
Description of | Current | |||||
Identity of Issue | Investment | Cost | Value |
Federal National Mtge Assn Whole Loan | Agency RP ARM | 1,250 | |||||
GE Commercial Mortgage Corp. | Conduit | 8,305 | |||||
Navistar Financial | NonPrime Auto | 4,008 | |||||
Sallie Mae Student Loan Trust | Agency Student Loan | 3,970 | |||||
**** | United States Treasury | Treasury Note | 2,015 | ||||
**** | United States Treasury | Treasury Note | 6,254 | ||||
**** | United States Treasury | Treasury Note | 7,090 | ||||
WFS Financial Owner Trust | Non-Agency MBS Floating | 4,420 | |||||
**** | United States Treasury | Treasury Note | 4,233 | ||||
**** | United States Treasury | Treasury Note | 12,588 | ||||
Federal Home Loan Mtg - Adj Rate Mtg. | US Agency Pass-Through | 7,556 | |||||
Greenwich Capital Commercial Funding Corp. | Non-Agency Comm Mort Bkd | 6,948 | |||||
TBC Inc PooledEmpDailyLiquidity | STIF | 7,624 | |||||
Cash on Hand | Cash | (6,815) | |||||
117,368 | |||||||
Monumental Wrapper | Synthetic GIC | ||||||
#MDA00292TR, IR, *** | - | ||||||
Citibank Credit Card IT | Bank Credit Card | 5,950 | |||||
Capital One Master Trust | Monoline Credit Card | 8,256 | |||||
Countrywide Asset-backed Certificates | Home Equity SrSub | 1,952 | |||||
FGCI | Agency Fix | 5,026 | |||||
Federal Home Loan Mtg - Adj Rate Mtg. | Agency Hybrid | 1,096 | |||||
FHR | Agency Seq | 5,795 | |||||
Federal National Mtg Assn | Agency MF BLN | 4,594 | |||||
Federal National Mtg Assn - Adj Rate Mtg. | Agency Hybrid | 916 | |||||
Federal National Mtg Assn. - GTD REMIC. | Agency PAC | 4,052 | |||||
Federal National Mtg Assn. - GTD REMIC. | Agency PAC | 6,166 | |||||
Federal National Mtg Assn Whole Loan | Home Equity Agency | 4,104 | |||||
FSPC | Home Equity Agency | 1,161 | |||||
Household Auto Trust | Subprime Auto | 5,576 | |||||
MBNA Master Trust | Monoline Credit Card | 5,577 | |||||
Morgan Stanley Auto Loan Trust | Prime Auto | 7,311 | |||||
New Century Home Equity Loan | Home Equity Monoline | 3,581 | |||||
Pinnacle CBO Ltd | Corp Fin Other | 72 | |||||
Res Asset Mtg Products | Home Equity Monoline | 2,724 | |||||
USAA Auto Owners Trust | Prime Auto | 6,017 | |||||
**** | United States Treasury | Treasury Note | 1,017 | ||||
**** | United States Treasury | Treasury Note | 3,002 | ||||
**** | United States Treasury | Treasury Note | 10,423 | ||||
**** | United States Treasury | Treasury Note | 5,250 | ||||
World Omni Auto Receivables Trust | Mfg HsgSrSub | 2,326 | |||||
**** | United States Treasury | Treasury Note | 8,103 | ||||
JP Morgan Chase Commercial Mortgage Sec. | Non-Agency Comm Mort Bkd | 8,044 |
12
AT&T SAVINGS AND SECURITY PLAN
EIN 43-1301883, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - (continued)
December 31, 2007
(Dollars in Thousands)
Description of | Current | |||||
Identity of Issue | Investment | Cost | Value |
TBC Inc PooledEmpDailyLiquidity | STIF | 7,282 | |||||
Cash on Hand | Cash | 123 | |||||
125,496 | |||||||
Rabobank Nederland | Synthetic GIC | ||||||
SBC-060201, IR, *** | - | ||||||
Chase Manhattan First Union | Conduit | 7,727 | |||||
Credit Suisse First Boston | Conduit | 2,470 | |||||
Federal Home - Adj Rate Mtg. | Agency Hybrid | 2,422 | |||||
**** | Federal Home Loan Mtg - Adj Rate Mtg | Agency Hybrid | 16,455 | ||||
Federal Home Loan Mtg Multiclass | Agency NAS | 11,628 | |||||
Federal Nationl Mtg Assn - Adj Rate Mtg | Agency HYB PP | 1,150 | |||||
**** | Federal National Mtg Assn Debs | Agency Debenture | 4,526 | ||||
Federal National Mtg Assn Whole Loan | Home Equity Agency | 1,952 | |||||
Federal National Mtg Assn Whole Loan | Agency RPF Fix | 2,526 | |||||
GMACC Commercial Mtg. Securities | Conduit | 5,425 | |||||
MBNA Master Trust | Monoline Credit Card | 8,005 | |||||
Nissan Auto Receivables Trust | Prime Auto | 4,695 | |||||
**** | United States Treasury | Treasury Note | 3,023 | ||||
Wachovia Auto Owner Trust | Prime Auto | 2,102 | |||||
**** | United States Treasury | Treasury Note | 8,392 | ||||
**** | Federal National Mtg Assn | US Agency | 4,121 | ||||
Federal Home - Adj Rate Mtg. | Agency Passthru | 7,556 | |||||
Greenwich Capital Commercial Funding Corp. | Non-Agency Comm Mort | 8,119 | |||||
TBC Inc PooledEmpDailyLiquidity | STIF | 5,509 | |||||
Cash on Hand | Cash | 157 | |||||
107,960 | |||||||
State Street Wrapper | Synthetic GIC | ||||||
#99039, IR, *** | - | ||||||
Bank One Insurance Trust | Bank Credit Card | 9,950 | |||||
Cendant Timeshare Receivables Funding | Collateralized Mtg Obligation Commercial/Corporate | 272 | |||||
Chase Insurance Trust | Bank Credit Card | 8,075 | |||||
Commercial Mtg Acceptance Corp | Collateralized Mtg Obligation | 4,121 | |||||
Countrywide Asset-backed Certficates | Home Equity SrSub | 6,494 | |||||
Federal Home Loan Mtg Corp | Agency Hybrid | 53 | |||||
Federal Home Loan Mtg Corp | Agency PAC | 2,150 | |||||
Federal Home Loan Mtg Corp | Agency NAS | 6,178 | |||||
Federal Home Loan Mtg Corp | Agency PAC | 4,018 | |||||
Federal National Mtg Assn - Adj Rate Mtg | Agency HYB PP | 5,933 | |||||
Fannie Mae Grantor Trust | Agency MF Fix | 8,345 | |||||
Federal National Mtg Assn Whole Loan | Home Equity Agency | 1,762 |
13
AT&T SAVINGS AND SECURITY PLAN
EIN 43-1301883, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - (continued)
December 31, 2007
(Dollars in Thousands)
Description of | Current | |||||
Identity of Issue | Investment | Cost | Value |
FSPC | Home Equity Agency | 1,984 | |||||
GE Commercial Equipment Financing Lease | Large Equipment Loan | 660 | |||||
GE Equipment Small Ticket LLC | Small Equipment Lease | 4,749 | |||||
GMACC Commercial MTG Securities | Conduit | 8,324 | |||||
GSR Mortgage Loan Trust | Nag PT Arm | 6,830 | |||||
Sallie Mae Student Loan Trust | Agency Student Loan | 5,397 | |||||
**** | United States Treasury | Treasury Note | 2,015 | ||||
Wells Fargo Mortgage-backed Securities Trust | Nag PT Arm | 7,858 | |||||
Wells Fargo Mortgage-backed Securities Trust | Nag PT Arm | 5,791 | |||||
LB-UBS Commercial Mortgage Trust | Non-Agency Comm Mortg | 6,044 | |||||
Federal National Mtg Assn | Us Agency | 4,121 | |||||
**** | United States Treasury | Treasury Note | 5,250 | ||||
Bank of America Credit Card Trust | Credit Card | 12,493 | |||||
TBC Inc PooledEmpDailyLiquidity | STIF | 9,113 | |||||
Cash on Hand | Cash | (6,033) | |||||
131,947 | |||||||
UBS Wrapper | Synthetic GIC | ||||||
#5029, IR, *** | - | ||||||
Americredit Auto Rec | SubPrime Auto | 1,287 | |||||
Adjustable Rate Mortgage Trust | Nag PT Arm | 5,566 | |||||
Cabellas Credit Card MT | Retail Credit Card | 3,165 | |||||
Caterpillar Fin Asset Trust | Large Equipment Loan | 5,457 | |||||
Capital One Auto Finance Trust | SubPrime Auto | 4,515 | |||||
Commercial Mtg Pass-Thru Cert | Conduit | 5,647 | |||||
Federal Home Loan Mtg - Adj Rate Mtg | Agency Hybrid | 54 | |||||
**** | Federal Home Loan Mortgage Corporation | Agency Debenture | 3,766 | ||||
Federal Home Loan Mortgage Corporation | Agency PAC | 981 | |||||
Federal Home Loan Mortgage Corporation | Agency NAS | 8,672 | |||||
Federal Home Loan Mortgage Corporation | Agency PAC | 8,033 | |||||
Federal National Mtg Assn - Adj Rate Mtg | Agency HYB PP | 4,488 | |||||
Federal National Mtg Assn - Adj Rate Mtg | Agency HYB PP | 4,913 | |||||
Federal National Mtg Assn Whole Loan | Home Equity Agency | 2,052 | |||||
Federal National Mtg Assn Whole Loan | Home Equity Agency | 1,762 | |||||
John Deere Owner Trust | Large Equipment Loan | 7,483 | |||||
Morgan Stanley Capital | Conduit | 5,219 | |||||
Res Asset Mtg Products | Home Equity Monoline | 2,043 | |||||
Structured Adjustable Rate Mortgage Loan | Collateralized Mtg Obligation Commercial/Corporate | 2,735 | |||||
**** | United States Treasury | Treasury Note | 5,211 | ||||
**** | United States Treasury | Treasury Note | 7,997 | ||||
Nissan Auto Lease Trust | Auto Lease | 8,040 |
14
AT&T SAVINGS AND SECURITY PLAN
EIN 43-1301883, PLAN NO. 004
SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS (HELD AT END OF YEAR) - (continued)
December 31, 2007
(Dollars in Thousands)
Description of | Current | |||||
Identity of Issue | Investment | Cost | Value |
General Electric Capital Corp Sr Unsec | Corporate Bond | 2,066 | ||||||
TBC Inc PooledEmpDailyLiquidity | STIF | 2,998 | ||||||
Cash on Hand | Cash | 1 | ||||||
104,151 | ||||||||
* | Mellon Trust of New England, National | |||||||
Association | Temporary cash investment | 29,915 | ||||||
Total Interest Income Fund | ** | 846,296 | ||||||
Global Equity Fund | ||||||||
* | Barclays Global Investors U.S. Equity | |||||||
Market Fund F | 3,950,646 units | 159,369 | ||||||
* | Barclays Global Investors EAFE Equity | |||||||
Index Fund F | 1,884,302 units | 64,424 | ||||||
Total Global Equity Fund | ** | 223,793 | ||||||
Mid and Small Cap Stock Fund | ||||||||
* | Barclays Global Investors EAFE Equity | |||||||
Extended Equity Market Fund F | 13,615,634 units | ** | 365,035 | |||||
International Stock Fund | ||||||||
* | Barclays Global Investors EAFE Equity | |||||||
Index Fund F | 11,766,827 units | ** | 402,308 | |||||
Loan Fund | ||||||||
* | Loans to Plan Participants | 8.25% - 9.25% | ** | 357,219 | ||||
TOTAL | $ | 7,279,522 |
* Party-in-Interest.
** Participant-directed investment, cost not required
*** Synthetic Insurance Contracts, no stated maturity.
**** | Investment balances have been adjusted to include the market value of securities on loan, which are reclassified for financial statement presentation. |
15
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustee (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed by the undersigned thereunto duly authorized.
AT&T SAVINGS AND SECURITY PLAN | |
By AT&T Inc., Plan Administrator for the Foregoing Plan |
By | /s/ John J. Stephens |
John J. Stephens | |
Senior Vice President and Controller |
Date: June 27, 2008
EXHIBIT INDEX
Exhibit identified below, Exhibit 23 is filed herein as an exhibit hereto. |
Exhibit
Number
23 | Consent of Independent Registered Public Accounting Firm |