CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Operating Revenues | |||
Wireless service | $48,563 | $44,249 | $38,568 |
Voice | 32,314 | 37,321 | 40,798 |
Data | 25,454 | 24,373 | 23,206 |
Directory | 4,724 | 5,416 | 4,806 |
Other | 11,963 | 12,669 | 11,550 |
Total operating revenues | 123,018 | 124,028 | 118,928 |
Operating Expenses | |||
Cost of services and sales (exclusive of depreciation and amortization shown separately below) | 50,405 | 49,556 | 46,801 |
Selling, general and administrative | 31,407 | 31,526 | 30,146 |
Depreciation and amortization | 19,714 | 19,883 | 21,577 |
Total operating expenses | 101,526 | 100,965 | 98,524 |
Operating Income | 21,492 | 23,063 | 20,404 |
Other Income (Expense) | |||
Interest expense | (3,379) | (3,390) | (3,507) |
Equity in net income of affiliates | 734 | 819 | 692 |
Other income (expense) - net | 152 | (328) | 810 |
Total other income (expense) | (2,493) | (2,899) | (2,005) |
Income Before Income Taxes | 18,999 | 20,164 | 18,399 |
Income taxes | 6,156 | 7,036 | 6,252 |
Net Income | 12,843 | 13,128 | 12,147 |
Less: Net Income Attributable to Noncontrolling Interest | (308) | (261) | (196) |
Net Income Attributable to AT&T | $12,535 | $12,867 | $11,951 |
Basic Earnings Per Share | 2.12 | 2.17 | 1.95 |
Diluted Earnings Per Share | 2.12 | 2.16 | 1.94 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets | ||
Cash and cash equivalents | $3,802 | $1,792 |
Accounts receivable - net of allowances for doubtful accounts of $1,205 and $1,270 | 14,978 | 16,047 |
Prepaid expenses | 1,572 | 1,538 |
Deferred income taxes | 1,274 | 1,014 |
Other current assets | 2,708 | 2,165 |
Total current assets | 24,334 | 22,556 |
Property, Plant and Equipment - Net | ||
Property, Plant and Equipment - Net | 100,093 | 99,088 |
Goodwill | 73,259 | 71,829 |
Licenses | 48,759 | 47,306 |
Customer Lists and Relationships - Net | 7,420 | 10,582 |
Other Intangible Assets - Net | 5,644 | 5,824 |
Investments in Equity Affiliates | 2,921 | 2,332 |
Other Assets | 6,322 | 5,728 |
Total Assets | 268,752 | 265,245 |
Current Liabilities | ||
Debt maturing within one year | 7,361 | 14,119 |
Accounts payable and accrued liabilities | 20,999 | 20,032 |
Advanced billing and customer deposits | 4,170 | 3,849 |
Accrued taxes | 1,696 | 1,874 |
Dividends payable | 2,479 | 2,416 |
Total current liabilities | 36,705 | 42,290 |
Long-Term Debt | 64,720 | 60,872 |
Deferred Credits and Other Noncurrent Liabilities | ||
Deferred income taxes | 23,803 | 19,196 |
Postemployment benefit obligation | 27,849 | 31,930 |
Other noncurrent liabilities | 13,350 | 14,207 |
Total deferred credits and other noncurrent liabilities | 65,002 | 65,333 |
Stockholders' Equity | ||
Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2009 and 7,000,000,000 authorized at December 31, 2008: issued 6,495,231,088 at December 31, 2009 and 2008) | 6,495 | 6,495 |
Additional paid-in-capital | 91,707 | 91,728 |
Retained earnings | 39,366 | 36,591 |
Treasury shares (593,300,187 at December 31, 2009, and 602,221,825 at December 31, 2008, at cost) | (21,260) | (21,410) |
Accumulated other comprehensive loss | (14,408) | (17,057) |
Noncontrolling interest | 425 | 403 |
Total stockholders' equity | 102,325 | 96,750 |
Total Liabilities and Stockholders' Equity | $268,752 | $265,245 |
PARENTHETICAL DATA TO THE CONSO
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions, except Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets | ||
Allowances for doubtful accounts | $1,205 | $1,270 |
Stockholders' Equity | ||
Common shares issued - par value | $1 | $1 |
Common stock authorized | 14,000,000,000 | 7,000,000,000 |
Common Stock Shares Issued | 6,495,231,088 | 6,495,231,088 |
Treasury shares issued | 593,300,187 | 602,221,825 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Operating Activities | |||
Net Income | $12,843 | $13,128 | $12,147 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,714 | 19,883 | 21,577 |
Undistributed earnings from investments in equity affiliates | (419) | (654) | (297) |
Provision for uncollectible accounts | 1,763 | 1,796 | 1,617 |
Deferred income tax expense (benefit) | 2,104 | 5,889 | (240) |
Net (gain) loss from impairment on sale of investments | 0 | 517 | (11) |
Gain on license exchange | 0 | 0 | (409) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (454) | (1,421) | (1,491) |
Other current assets | (355) | 827 | (1,020) |
Accounts payable and accrued liabilities | 2,372 | (5,563) | 672 |
Share-based payment excess tax benefit | 0 | (15) | (173) |
Less: Net Income Attributable to Noncontrolling Interest | (308) | (261) | (196) |
Other - net | (2,815) | (470) | 2,066 |
Total adjustments | 21,602 | 20,528 | 22,095 |
Net Cash Provided by Operating Activities | 34,445 | 33,656 | 34,242 |
Investing Activities | |||
Capital expenditures | (16,595) | (19,676) | (17,717) |
Interest during construction | (740) | (659) | (171) |
Acquisitions, net of cash acquired | (983) | (10,972) | (2,873) |
Dispositions | 287 | 1,615 | 1,594 |
Sale of securities, net of investments | 55 | 68 | 455 |
Sale of other investments | 0 | 436 | 0 |
Other | 51 | 45 | 36 |
Net Cash Used in Investing Activities | (17,925) | (29,143) | (18,676) |
Financing Activities | |||
Net change in short-term borrowings with original maturities of three months or less | (3,910) | 2,017 | (3,411) |
Issuance of long-term debt | 8,161 | 12,416 | 11,367 |
Repayment of long-term debt | (8,654) | (4,010) | (6,772) |
Purchase of treasury shares | 0 | (6,077) | (10,390) |
Issuance of treasury shares | 28 | 319 | 1,986 |
Dividends paid | (9,670) | (9,507) | (8,743) |
Share-based payment excess tax benefit | 0 | 15 | 173 |
Other | (465) | 136 | (224) |
Net Cash Used in Financing Activities | (14,510) | (4,691) | (16,014) |
Net increase (decrease) in cash and cash equivalents | 2,010 | (178) | (448) |
Cash and cash equivalents beginning of year | 1,792 | 1,970 | 2,418 |
Cash and Cash Equivalents End of Year | $3,802 | $1,792 | $1,970 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | ||||||||
In Millions, except Share data | Common Stock
| Additional Paid-in Capital
| Retained Earnings
| Treasury Stock
| Accumulated Other Comprehensive Income (Loss), net of tax
| Noncontrolling Interest
| Total Comprehensive Income (Loss) , net of tax
| Total
|
Balance at beginning of year at Dec. 31, 2006 | $6,495 | $91,352 | $30,375 | ($7,368) | ($5,314) | $386 | $115,926 | |
Shares outstanding balance at beginning of year at Dec. 31, 2006 | 6,495 | (256) | ||||||
Issuance of shares | 225 | 2,075 | ||||||
Issuance of treasury shares | 72 | |||||||
Share-based payments | 61 | |||||||
Purchase of shares | (10,390) | |||||||
Purchase of shares - shares | (267) | |||||||
Net Income attributable to AT&T | 11,951 | 11,951 | 11,951 | |||||
Other comprehensive income (loss) attributable to AT&T | 4,934 | 4,934 | ||||||
Net income attributable to noncontrolling interest | 196 | 196 | 196 | |||||
Dividends to stockholders | (8,945) | |||||||
Adoption of FASB guidance related to unrecognized tax benefits | (50) | |||||||
Other | (34) | |||||||
Distributions | (205) | |||||||
Foreign currency translation adjustments, net of taxes | 19 | |||||||
Available-for-sale securities, Unrealized gains (losses), net of taxes | 65 | |||||||
Available-for-sale securities, Less reclassification adjustment realized in net income, net of taxes | (35) | |||||||
Cash flow hedges, Unrealized gains (losses), net of taxes | (71) | |||||||
Cash flow hedges, Less reclassification adjustment realized in net income, net of taxes | 17 | |||||||
Defined benefit postretirement plans, Net actuarial gains and prior service cost arising during period, net of taxes | 4,734 | |||||||
Defined benefit postretirement plans, Amortization of net actuarial loss and prior service benefit included in net income, net of taxes | 206 | |||||||
Defined benefit postretirement plans, Other | (1) | |||||||
Translation adjustments applicable to noncontrolling interest | 3 | |||||||
Comprehensive income (loss) attributable to AT&T | 16,885 | |||||||
Other comprehensive income (loss) attributable to noncontrolling interest, per above | 4,934 | 3 | 3 | |||||
Total Comprehensive Income (Loss) | 199 | 17,084 | ||||||
Shares outstanding balance at end of year at Dec. 31, 2007 | 6,495 | (451) | ||||||
Balance at end of year at Dec. 31, 2007 | 6,495 | 91,638 | 33,297 | (15,683) | (760) | 760 | 0 | 115,747 |
Issuance of shares | 87 | 350 | ||||||
Issuance of treasury shares | 13 | |||||||
Share-based payments | 3 | |||||||
Purchase of shares | (6,077) | |||||||
Purchase of shares - shares | (164) | |||||||
Net Income attributable to AT&T | 12,867 | 12,867 | 12,867 | |||||
Other comprehensive income (loss) attributable to AT&T | (16,677) | (16,677) | ||||||
Net income attributable to noncontrolling interest | 261 | 261 | 261 | |||||
Dividends to stockholders | (9,506) | |||||||
Adoption of FASB guidance related to unrecognized tax benefits | 0 | |||||||
Other | (67) | |||||||
Distributions | (260) | |||||||
Foreign currency translation adjustments, net of taxes | (443) | |||||||
Available-for-sale securities, Unrealized gains (losses), net of taxes | (259) | |||||||
Available-for-sale securities, Less reclassification adjustment realized in net income, net of taxes | (16) | |||||||
Cash flow hedges, Unrealized gains (losses), net of taxes | (274) | |||||||
Cash flow hedges, Less reclassification adjustment realized in net income, net of taxes | 17 | |||||||
Defined benefit postretirement plans, Net actuarial gains and prior service cost arising during period, net of taxes | (15,582) | |||||||
Defined benefit postretirement plans, Amortization of net actuarial loss and prior service benefit included in net income, net of taxes | (120) | |||||||
Defined benefit postretirement plans, Other | 0 | |||||||
Translation adjustments applicable to noncontrolling interest | 22 | |||||||
Comprehensive income (loss) attributable to AT&T | (3,810) | |||||||
Other comprehensive income (loss) attributable to noncontrolling interest, per above | (16,677) | 22 | 22 | |||||
Total Comprehensive Income (Loss) | 283 | (3,527) | ||||||
Shares outstanding balance at end of year at Dec. 31, 2008 | 6,495 | (602) | ||||||
Balance at end of year at Dec. 31, 2008 | 6,495 | 91,728 | 36,591 | (21,410) | (34,114) | 806 | 96,750 | |
Issuance of shares | 29 | 150 | ||||||
Issuance of treasury shares | 9 | |||||||
Share-based payments | (50) | |||||||
Purchase of shares | 0 | |||||||
Purchase of shares - shares | 0 | |||||||
Net Income attributable to AT&T | 12,535 | 12,535 | 12,535 | |||||
Other comprehensive income (loss) attributable to AT&T | 2,649 | 2,649 | ||||||
Net income attributable to noncontrolling interest | 308 | 308 | 308 | |||||
Dividends to stockholders | (9,733) | |||||||
Adoption of FASB guidance related to unrecognized tax benefits | 0 | |||||||
Other | (27) | |||||||
Distributions | (285) | |||||||
Foreign currency translation adjustments, net of taxes | 151 | |||||||
Available-for-sale securities, Unrealized gains (losses), net of taxes | 176 | |||||||
Available-for-sale securities, Less reclassification adjustment realized in net income, net of taxes | 48 | |||||||
Cash flow hedges, Unrealized gains (losses), net of taxes | 610 | |||||||
Cash flow hedges, Less reclassification adjustment realized in net income, net of taxes | 15 | |||||||
Defined benefit postretirement plans, Net actuarial gains and prior service cost arising during period, net of taxes | 1,397 | |||||||
Defined benefit postretirement plans, Amortization of net actuarial loss and prior service benefit included in net income, net of taxes | 252 | |||||||
Defined benefit postretirement plans, Other | 0 | |||||||
Translation adjustments applicable to noncontrolling interest | (1) | |||||||
Comprehensive income (loss) attributable to AT&T | 15,184 | |||||||
Other comprehensive income (loss) attributable to noncontrolling interest, per above | 2,649 | (1) | (1) | |||||
Total Comprehensive Income (Loss) | 307 | 15,491 | ||||||
Shares outstanding balance at end of year at Dec. 31, 2009 | 6,495 | (593) | ||||||
Balance at end of year at Dec. 31, 2009 | $6,495 | $91,707 | $39,366 | ($21,260) | ($14,408) | $425 | $0 | $102,325 |
1_PARENTHETICAL DATA TO THE CON
PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | |||
In Millions, except Per Share data | 1/1/2009 - 12/31/2009
| 1/1/2008 - 12/31/2008
| 1/1/2007 - 12/31/2007
|
Statement of Stockholders' Equity [Abstract] | |||
Foreign currency translation adjustments (taxes) | $72 | ($239) | $10 |
Unrealized gains (losses) on available-for-sale securities (taxes) | 84 | (139) | 35 |
Less reclassification adjustment realized in net income, available-for-sale securities (taxes) | 23 | (9) | (19) |
Unrealized gains (losses) on cash flow hedges (taxes) | 329 | (148) | (38) |
Less reclassification adjustment realized in net income, cash flow hedges (taxes) | 8 | 9 | 9 |
Net actuarial gains (losses) and prior service benefit (cost) arising during period (taxes) | 1,044 | (9,298) | 3,411 |
Amortization of net actuarial loss and prior service benefit included in net income (taxes) | $157 | ($74) | $125 |
Diluted Earnings Per Share | 2.12 | 2.16 | 1.94 |
NOTE 1. SUMMARY OF SIGNIFICANT
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of PresentationThroughout this document, ATT Inc. is referred to as ATT, we or the Company. The consolidated financial statements have been prepared pursuant to Regulation S-X and other applicable rules of the Securities and Exchange Commission. The consolidated financial statements 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, wholesale services, and advertising solutions. All significant intercompany transactions are eliminated in the consolidation process. Investments in partnerships and less-than-majority-owned subsidiaries where we have significant influence are accounted for under the equity method. Earnings from certain foreign equity investments accounted for using the equity method are included for periods ended within up to one month of our year-end (see Note 7). The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of probable losses and expenses. Actual results could differ from those estimates. We have reclassified certain amounts in prior-period financial statements to conform to the current periods presentation. Recent Accounting Standards Accounting Standards CodificationIn June 2009, the Financial Accounting Standards Board (FASB) issued standards that established the FASB Accounting Standards Codification (ASC or Codification) as the source of authoritative GAAP by the FASB for nongovernmental entities. The ASC supersedes all non-SEC accounting and reporting standards that existed at the ASCs effective date. The FASB uses Accounting Standards Updates (ASU) to amend the ASC. We refer to ASUs throughout our interim and annual reports where deemed relevant and make general references to pre-Codification standards (e.g., GAAP standards for acquisitions). These standards were effective for interim and annual periods ending after September 15, 2009 (i.e., the quarterly period ended September 30, 2009, for us). Subsequent EventsIn May 2009, the FASB issued a standard that established general standards of accounting for and disclosing events that occur after the balance sheet date but before financial statements are issued or are available for issuance. They were effective for interim and annual periods ending after June 15, 2009 (i.e., the quarterly period ended June 30, 2009, for us). In preparing the accompanying audited consolidated financial statements, we have reviewed all known events that have occurred after December 31, 2009, and through February 25, 2010, the filing date of our Annual Report on Form 10-K, for inclusion in the financial statements and footnotes. Noncontrolling Interests ReportingIn December 2007, the FASB issued a standard that requires noncontrolling interests held b |
NOTE 2. ACQUISITIONS, DISPOSITI
NOTE 2. ACQUISITIONS, DISPOSITIONS AND OTHER ADJUSTMENTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
ACQUISITIONS, DISPOSITIONS, VALUATION AND OTHER ADJUSTMENTS | NOTE 2. ACQUISITIONS, DISPOSITIONS, AND OTHER ADJUSTMENTS Acquisitions CentennialIn November 2009, we acquired the assets of Centennial, a regional provider of wireless and wired communications services with approximately 865,000 customers as of December 31, 2009. Total consideration of $2,961 included $955 in cash for the redemption of Centennials outstanding common stock and liquidation of outstanding stock options and $2,006 for our acquisition of Centennials outstanding debt (including liabilities related to assets subject to sale, as discussed below), of which we repaid $1,957 after closing in 2009. The preliminary fair value measurement of Centennials net assets at the acquisition date resulted in the recognition of $1,276 of goodwill, $647 of spectrum licenses, and $273 of customer lists and other intangible assets for the Wireless segment. The Wireline segment added $339 of goodwill and $174 of customer lists and other intangible assets from the acquisition. The acquisition of Centennial impacted our Wireless and Wireline segments, and we have included Centennials operations in our consolidated results since the acquisition date. As the value of certain assets and liabilities are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances that existed at the acquisition date. When the valuation is final, any changes to the preliminary valuation of acquired assets and liabilities could result in adjustments to identified intangibles and goodwill. See Notes 6 and 8 for additional information regarding the impact of the Centennial acquisition on our goodwill and other intangibles and our long-term debt repayment for 2009. Wireless Properties TransactionsIn May 2009, we announced a definitive agreement to acquire certain wireless assets from Verizon Wireless (VZ) for approximately $2,350 in cash. The assets primarily represent former Alltel Wireless assets. We will acquire wireless properties, including licenses and network assets, serving approximately 1.5 million subscribers in 79 service areas across 18 states. In October 2009, the Department of Justice (DOJ) cleared our acquisition of Centennial, subject to the DOJs condition that we divest Centennials operations in eight service areas in Louisiana and Mississippi. We are in the process of finalizing definitive agreements and seeking regulatory approvals to sell all eight Centennial service areas ultimately identified in that ruling. We anticipate we will close the sales during the first half of 2010. As of December 31, 2009, the fair value of the assets subject to the sale, net of related liabilities, was $282. These net assets include property, plant and equipment, spectrum licenses, customer lists and other intangible assets, and working capital, which are not deemed material for isolated presentation as assets held for sale and liabilities related to assets held for sale in our consolidated balance sheet as of December 31, 2009, and we included these net assets in our Other current assets balance. DobsonIn November 2007, we acquired Dobson for approximately $2,500. Under the purchase method of account |
NOTE 3. EARNINGS PER SHARE
NOTE 3. EARNINGS PER SHARE | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
EARNINGS PER SHARE | NOTE 3. EARNINGS PER SHARE A reconciliation of the numerators and denominators of basic earnings per share and diluted earnings per share for income from continuing operations for the years ended December31,2009, 2008 and 2007, are shown in the table below: Year Ended December 31, 2009 2008 2007 Numerators Numerator for basic earnings per share: Net income attributable to ATT $ 12,535 $ 12,867 $ 11,951 Dilutive potential common shares: Other share-based payment 10 9 8 Numerator for diluted earnings per share $ 12,545 $ 12,876 $ 11,959 Denominators (000,000) Denominator for basic earnings per share: Weighted-average number of common shares outstanding 5,900 5,927 6,127 Dilutive potential common shares: Stock options 3 9 24 Other share-based payment 21 22 19 Denominator for diluted earnings per share 5,924 5,958 6,170 Basic earnings per share $ 2.12 $ 2.17 $ 1.95 Diluted earnings per share $ 2.12 $ 2.16 $ 1.94 At December 31, 2009, 2008 and 2007, we had issued and outstanding options to purchase approximately 178 million, 204 million and 231 million shares of ATT common stock. The exercise prices of options to purchase a weighted-average of 163 million, 144 million and 93 million shares in 2009, 2008, and 2007 were above the average market price of ATT stock. Accordingly, we did not include these amounts in determining the dilutive potential common shares for the respective periods. At December 31, 2009, the exercise price of 19 million share options was below market price. |
NOTE 4. SEGMENT INFORMATION
NOTE 4. SEGMENT INFORMATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
SEGMENT INFORMATION | NOTE 4. SEGMENT INFORMATION Our segments are strategic business units that offer different products and services over various technology platforms and are managed accordingly. Our operating segment results presented in Note 4 and discussed below for each segment follow our internal management reporting. We analyze our various operating segments based on segment income before income taxes. Interest expense and other income (expense) net are managed only on a total company basis and are, accordingly, reflected only in consolidated results. Therefore, these items are not included in the calculation of each segments percentage of our consolidated results. The customers and long-lived assets of our reportable segments are predominantly in the United States. We have four reportable segments: (1)Wireless, (2)Wireline, (3)Advertising Solutions and (4)Other. The Wireless segment uses our nationwide network to provide consumer and business customers with wireless voice and advanced data communications services. The Wireline segment uses our regional, national and global network to provide consumer and business customers with landline voice and data communications services, ATT 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 includes our directory operations, which publish Yellow and White Pages directories and sell directory advertising and Internet-based advertising and local search. This segment includes the results of YELLOWPAGES.COM, LLC (YPC), which was a joint venture with BellSouth prior to the December 29, 2006 acquisition and is now a wholly-owned subsidiary of ATT. For segment reporting disclosure, we have carried forward the deferred revenue and deferred cost balances for BellSouth at the acquisition date in order to reflect how the segment is managed. This is different for consolidated reporting purposes where BellSouth deferred revenue and expenses from directories published during the 12-month period ending with the December 29, 2006 acquisition date, are not recognized and therefore were not included in the opening balance sheet. For management reporting purposes, we continue to amortize these balances over the life of the directory. Thus, our Advertising Solutions segment results in 2007 include revenue of $964 and expenses of $308, related to directories published in the Southeast region during 2006, prior to our acquisition of BellSouth. These amounts are eliminated in the consolidation and elimination column in the following reconciliation. The Other segment includes results from Sterling Commerce, Inc. (Sterling), customer information services and all corporate and other operations. This segment includes our portion of the results from our international equity investments. Also included in the Other segment are impacts of corporate-wide decisions for which the individual operating segments are not being evaluated. In the following tables, we show how our segment results are reconciled to our consolidated results reported in accordan |
NOTE 5. PROPERTY, PLANT AND EQU
NOTE 5. PROPERTY, PLANT AND EQUIPMENT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is summarized as follows at December 31: Lives (years) 2009 2008 Land - $ 1,724 $ 1,730 Buildings 35-45 24,271 23,372 Central office equipment 3-10 78,314 75,054 Cable, wiring and conduit 10-50 74,325 72,109 Other equipment 5-15 39,918 34,434 Software 3-5 8,841 8,348 Under construction - 3,159 3,532 230,552 218,579 Accumulated depreciation and amortization Accumulated depreciation and amortization 130,459 119,491 Property, plant and equipment net $ 100,093 $ 99,088 Our depreciation expense was $15,959 in 2009, $15,313 in 2008 and $15,625 in 2007. Certain facilities and equipment used in operations are leased under operating or capital leases. Rental expenses under operating leases were $2,889 for 2009, $2,733 for 2008 and $2,566 for 2007. At December31,2009, the future minimum rental payments under non-cancelable operating leases for the years 2010 through 2014 were $2,429, $2,276, $2,057, $1,859 and $1,707, with $10,230 due thereafter. Certain real estate operating leases contain renewal options that may be exercised. Capital leases are not significant. American Tower Corp. Agreement In August 2000, we reached an agreement with American Tower Corp. (American Tower) under which we granted American Tower the exclusive rights to lease space on a number of our communications towers. In exchange, we received a combination of cash and equity instruments as complete prepayment of rent with the closing of each leasing agreement. The value of the prepayments was recorded as deferred revenue and recognized in income as revenue over the life of the leases. The balance of deferred revenue was $509 in 2009, $539 in 2008 and $569 in 2007. |
NOTE 6. GOODWILL AND OTHER INTA
NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amounts of goodwill, by segment, for the years ended December 31, 2009 and 2008, are as follows: Wireless Wireline Advertising Solutions Other Total Balance as of January 1, 2008 $ 32,713 $ 31,301 $ 5,788 $ 911 $ 70,713 Goodwill acquired 264 185 - - 449 Goodwill adjustments for prior-year acquisitions and tax adjustments 990 (95 ) (26 ) - 869 Other (116 ) (10 ) (68 ) (8 ) (202 ) Balance as of December 31, 2008 33,851 31,381 5,694 903 71,829 Goodwill acquired 1,276 344 36 - 1,656 Other (90 ) (117 ) 1 (20 ) (226 ) Balance as of December 31, 2009 $ 35,037 $ 31,608 $ 5,731 $ 883 $ 73,259 Goodwill and wireless FCC licenses are not amortized but tested annually as of October 1 for impairment as required by GAAP. The carrying amounts of goodwill, by segment (which is the same as reporting unit for Wireless, Wireline and Advertising Solutions), at December 31, 2009 were Wireless $35,037; Wireline $31,608; Advertising Solutions $5,731; and Other $883 and at December 31, 2008 were Wireless $33,851; Wireline $31,381; Advertising Solutions $5,694; and Other $903. Within the Other segment, goodwill associated with our Sterling operations was $477 for 2009 and 2008. Additionally, FCC licenses are tested for impairment on an aggregate 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 was recognized in a prior period. We review other long-lived assets for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable over the remaining life of the asset or asset group. Goodwill acquired relates primarily to the acquisition of Centennial and a provider of mobile application solutions (see Note 2). Changes to goodwill include adjustments totaling $90 related to wireless liabilities in connection with a business combination and disposition of a wireline entity for $117 in 2009. Our other intangible assets are summarized as follows: December 31, 2009 December 31, 2008 Other Intangible Assets Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Customer lists and relationships: ATT Mobility $ 5,804 $ 3,097 $ 10,429 $ 6,409 BellSouth 9,215 5,597 9,215 4,062 ATTC 3,134 2,377 3,100 2,038 Other 926 588 788 441 Subtotal 19,079 11,659 23,532 12,950 Other 1,176 767 1,724 1,130 Total $ 20,255 $ 12,426 $ 25,256 $ 14,080 |
NOTE 7. EQUITY METHOD INVESTMEN
NOTE 7. EQUITY METHOD INVESTMENTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
EQUITY METHOD INVESTMENTS | NOTE 7. EQUITY METHOD INVESTMENTS Investments in partnerships, joint ventures and less-than-majority-owned subsidiaries in which we have significant influence are accounted for under the equity method. Our investments in equity affiliates include primarily international investments. As of December 31, 2009, our investments in equity affiliates included a 9.8% interest in Tlefonos de Mxico, S.A. de C.V. (Telmex), Mexicos national telecommunications company, and an 8.8% interest in Amrica Mvil S.A. de C.V. (Amrica Mvil), primarily a wireless provider in Mexico with telecommunications investments in the United States and Latin America. In 2007, Telmexs Board of Directors and shareholders approved a strategic initiative to split off its Latin American 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 of a consortium that holds all of the class AA shares of Telmex stock, representing voting control of the company. Another member of the consortium, Carso Global Telecom, S.A. de C.V. (CGT), has the right to appoint a majority of the directors of Telmex. We also are a member of a consortium that holds all of the class AA shares of Amrica Mvil stock, representing voting control of the company. Another member of the consortium has the right to appoint a majority of the directors of Amrica Mvil. On January 13, 2010, Amrica Mvil announced that its Board of Directors had authorized it to submit an offer for 100% of the equity of CGT, a holding company that owns 59.4% of Telmex and 60.7% of Telmex Internacional, in exchange for Amrica Mvil shares; and an offer for Telmex Internacional shares not owned by CGT, to be purchased for cash or to be exchanged for Amrica Mvil shares, at the election of the shareholders. The following table is a reconciliation of our investments in equity affiliates as presented on our consolidated balance sheets: 2009 2008 Beginning of year $ 2,332 $ 2,270 Additional investments 44 - Equity in net income of affiliates 734 819 Dividends received (317 ) (164 ) Currency translation adjustments 125 (574 ) Other adjustments 3 (19 ) End of year $ 2,921 $ 2,332 Undistributed earnings from equity affiliates were $3,408 and $2,989 at December31, 2009 and 2008. The currency translation adjustment for 2009 and 2008 reflects the effect of exchange rate fluctuations on our investments in Telmex, Telmex Internacional and Amrica Mvil. The fair value of our investment in Telmex, based on the equivalent value of Telmex L shares at December 31, 2009, was $1,492. The fair value of our investment in Amrica Mvil, based on the equivalent value of Amrica Mvil L shares at December 31, 2009, was $6,741. The fair value of our investment in Telmex Internacional, based on the equivalent value of Telmex Internacional L shares at December 31, 2009, was $1,597. |
NOTE 8. DEBT
NOTE 8. DEBT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
DEBT | NOTE 8. DEBT Long-term debt of ATT and its subsidiaries, including interest rates and maturities, is summarized as follows at December31: 2009 2008 Notes and debentures Interest Rates Maturities1 0.35% 2.99 % 2009 2010 $ 3,500 $ 1,500 3.00% 4.99 % 2009 2014 5,853 10,577 5.00% 6.99 % 2009 2095 41,331 37,613 7.00% 9.10 % 2009 2097 19,069 18,007 Other 136 138 Fair value of interest rate swaps recorded in debt 310 527 70,199 68,362 Unamortized premium, net of discount 1,612 1,846 Total notes and debentures 71,811 70,208 Capitalized leases 237 167 Total long-term debt, including current maturities 72,048 70,375 Current maturities of long-term debt (7,328 ) (9,503 ) Total long-term debt $ 64,720 $ 60,872 1 Maturities assume putable debt is redeemed by the holders at the next opportunity. Current maturities of long-term debt include debt that may be put back to us by the holders in 2010. We have $1,000 of annual put reset securities issued by BellSouth that can be put each April until maturity in 2021. If the holders do not require us to repurchase the securities, the interest rate will be reset based on current market conditions. Likewise, we have an accreting zero-coupon note that may be redeemed each May, excluding May 2011, until maturity in 2022. If the zero-coupon note (issued for principal of $500 in 2007) is held to maturity, the redemption amount will be $1,030. Debt maturing within one year consists of the following at December 31: 2009 2008 Commercial paper $ - $ 4,575 Current maturities of long-term debt 7,328 9,503 Bank borrowings1 33 41 Total $ 7,361 $ 14,119 1 Outstanding balance of short-term credit facility of a foreign subsidiary. During 2009, we received net proceeds of $8,161 from the issuance of $8,228 in long-term debt. Debt proceeds were used for general corporate purposes, including the repayment of maturing debt. Long-term debt issuances consisted of: $1,000 of 4.85% global notes due in 2014. $2,250 of 5.80% global notes due in 2019. $2,250 of 6.55% global notes due in 2039. 750 of 5.875% global notes due in 2017 (equivalent to $1,107 when issued). 1,100 of 7.0% global notes due in 2040 (equivalent to $1,621 when issued). During 2009, debt repayments totaled $13,236 and consisted of: $8,633 in repayments of long-term debt (includes repayment of $1,957 for Centennial debt). $4,583 in repayments of commercial paper and short-term bank borrowings. $20 in repayments of other debt. As of December 31, 2009 and 2008, we were in compliance with all covenants and conditions of instruments governing our debt. Substantially all of our outstanding long-term debt is unsecured. Excluding capitalized leases, the aggregate principal amounts of long-term debt and the corresponding weighted-average interest rate scheduled for repayme |
NOTE 9. FAIR VALUE MEASUREMENTS
NOTE 9. FAIR VALUE MEASUREMENTS AND DISCLOSURE | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
FAIR VALUE MEASUREMENTS AND DISCLOSURE | NOTE 9. FAIR VALUE MEASUREMENTS AND DISCLOSURE GAAP standards require disclosures for financial assets and liabilities that are remeasured at fair value at least annually. GAAP standards establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The Fair Value Measurement and Disclosure framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under Fair Value Measurement and Disclosure are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that ATT has the ability to access. Level 2 Inputs to the valuation methodology include: Quoted prices for similar assets and liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted market prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Fair value is often based on internally developed models in which there are few, if any, external observations. The assets or liabilitys fair value measurement level with the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The valuation methodologies described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. ATT believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value 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, 2009 and 2008. See Note 11 for disclosures relating to pension and other postemployment benefits. Long-Term Debt and Other Financial Instruments The carrying amounts and estimated fair values of our long-term debt, including current maturities and other financial instruments, are summarized as follows at December 31: 2009 2008 Carrying Fair Carrying Fair Amount Value Amount Value Notes and debentures $ 71,811 $ 75,212 $ 70,208 $ 70,955 Commercial paper - - 4,575 4,575 Bank borrowings 33 |
NOTE 10. INCOME TAXES
NOTE 10. INCOME TAXES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
INCOME TAXES | NOTE 10. INCOME TAXES Significant components of our deferred tax liabilities (assets) are as follows at December 31: 2009 2008 Depreciation and amortization $ 18,796 $ 18,269 Intangibles (nonamortizable) 1,990 1,990 Employee benefits (14,220 ) (14,825 ) Net operating loss and other carryforwards (1,846 ) (2,220 ) Investment in wireless partnership 18,646 16,028 Other net (2,019 ) (2,250 ) Subtotal 21,347 16,992 Deferred tax assets valuation allowance 1,182 1,190 Net deferred tax liabilities $ 22,529 $ 18,182 Net long-term deferred tax liabilities $ 23,803 $ 19,196 Less: Net current deferred tax assets (1,274 ) (1,014 ) Net deferred tax liabilities $ 22,529 $ 18,182 At December 31, 2009, we had combined net operating and capital loss carryforwards (tax effected) for federal income tax purposes of $362 and for state and foreign income tax purposes of $1,125, expiring through 2028. Additionally, we had federal credit carryforwards of $66 and state credit carryforwards of $293, expiring primarily through 2026. We recognize a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. Our valuation allowances at December 31, 2008 and 2009, relate primarily to state net operating loss carryforwards. As required by GAAP, we recognize the financial statement effects of a tax return position when it is more likely than not, based on the technical merits, that the position will ultimately be sustained. For tax positions that meet this recognition threshold, we apply our judgment, taking into account applicable tax laws, our experience in managing tax audits and relevant GAAP, to determine the amount of tax benefits to recognize in our financial statements. For each position, the difference between the benefit realized on our tax return and the benefit reflected in our financial statements is recorded on our balance sheet as an unrecognized tax benefit (UTB). We update our unrecognized tax benefits at each financial statement date to reflect the impacts of audit settlements and other resolution of audit issues, expiration of statutes of limitation, developments in tax law and ongoing discussions with taxing authorities. A reconciliation of the change in our UTB balance from January 1, 2009 to December 31, 2009, and January 1, 2008 to December 31, 2008, is as follows: Federal, State and Foreign Tax 2009 2008 Balance at beginning of year $ 6,190 $ 5,901 Increases for tax positions related to the current year 982 811 Increases for tax positions related to prior years 877 715 Decreases for tax positions related to prior years (1,984 ) (1,237 ) Settlements (81 ) - Balance at end of year 5,984 6,190 Accrued interest and penalties 1,539 1,802 Gross unrecognized income tax benefits 7,523 7,992 Less: Deferred federal and s |
NOTE 11. PENSION AND POSTRETIRE
NOTE 11. PENSION AND POSTRETIREMENT BENEFITS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
PENSION AND POSTRETIREMENT BENEFITS | NOTE 11. PENSION AND POSTRETIREMENT BENEFITS Pension Benefits and Postretirement Benefits Substantially all of our U.S. employees are covered by one of our noncontributory pension and death benefit plans. Many of our management employees participate in pension plans that have a traditional pension formula (i.e., a stated percentage of employees adjusted career income) and a frozen cash balance or defined lump sum formula. In 2005, the management pension plan for those employees was amended to freeze benefit accruals previously earned under a cash balance formula. Each employees existing cash balance continues to earn interest at a variable annual rate. After this change, those management employees, at retirement, may elect to receive the portion of their pension benefit derived under the cash balance or defined lump sum as a lump sum or an annuity. The remaining pension benefit, if any, will be paid as an annuity if its value exceeds a stated monthly amount. Management employees of former ATTC, BellSouth, ATT Mobility and new hires after 2006 participate in cash balance pension plans. Nonmanagement employees pension benefits are generally calculated using one of two formulas: benefits are based on a flat dollar amount per year according to job classification or are calculated under a cash balance plan that is based on an initial cash balance amount and a negotiated annual pension band and interest credits. Most nonmanagement employees can elect to receive their pension benefits in either a lump sum payment or an annuity. We also provide a variety of medical, dental and life insurance benefits to certain retired employees under various plans and accrue actuarially determined postretirement benefit costs as active employees earn these benefits. On December 31, 2009, the ATT Pension Plan and the Cingular Wireless Pension Planwere merged into the ATT Puerto Rico Pension Benefit Plan. At November 1, 2008, BellSouth pension plans and U.S. Domestic ATTC bargained employees were merged in the ATT Pension Benefit Plan. At December 31, 2007, defined benefit pension plans formerly sponsored by Ameritech Publishing Ventures and ATT Mobility were merged in the ATT Pension Benefit Plan. During 2009, union contracts covering 120,000 collectively bargained wireline employees expired. As of January 31, 2010, 86,000 employees covered by these expired collectively bargained wireline contracts have ratified new labor contracts. In the absence of an effective contract, the union is entitled to call a work stoppage. For approximately 60,000 employees covered by these ratified agreements, the agreements provide for a three-year term and, for the vast majority of those covered employees, a 3 percent wage increase in years one and two, a wage increase in year three of 2.75 percent, and pension band increases of 2 percent for each year of the agreement. For both wage and pension band increases, there is a potential cost-of-living increase based on the Consumer Price Index for the third year. These agreements also provide for continued health care coverage with reasonable cost sharing. For the remaining approximately 26,000 employees, the agreemen |
NOTE 12. SHARE-BASED PAYMENT
NOTE 12. SHARE-BASED PAYMENT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
SHARE-BASED PAYMENT | NOTE 12. SHARE-BASED PAYMENT We account for our share-based payment arrangements using GAAP standards for share-based awards. Our accounting under these standards may affect our ability to fully realize the value shown on our consolidated balance sheets of deferred tax assets associated with compensation expense. Full realization of these deferred tax assets requires stock options to be exercised at a price equaling or exceeding the sum of the exercise price plus the fair value of the options at the grant date. The provisions of GAAP standards for share-based awards do not allow a valuation allowance to be recorded unless our future taxable income is expected to be insufficient to recover the asset. Accordingly, there can be no assurance that the current stock price of our common shares will rise to levels sufficient to realize the entire tax benefit currently reflected in our consolidated balance sheets. However, to the extent that additional tax benefits are generated in excess of the deferred taxes associated with compensation expense previously recognized, the potential future impact on income would be reduced. At December 31, 2009, we had various share-based payment arrangements, which we describe in the following discussion. The compensation cost recognized for those plans was $317 for 2009, compared to $166 for 2008 and $720 for 2007, and is included in Selling, general and administrative in our consolidated statements of income. The total income tax benefit recognized in the consolidated statements of income for share-based payment arrangements was $121 for 2009, compared to $63 for 2008 and $275 for 2007. Under our various plans, senior and other management and nonmanagement employees and nonemployee directors have received stock options, performance stock units, and other nonvested stock units. Stock options issued through December 31, 2009, carry exercise prices equal to the market price of our stock at the date of grant. Beginning in 1994 and ending in 1999, certain employees of ATT Teleholdings, Inc. (formerly known as Ameritech) were awarded grants of nonqualified stock options with dividend equivalents. Prior to 2006, depending on the grant, stock options vesting could occur up to five years from the date of grant, with most options vesting ratably over three years. Stock options granted as part of a deferred compensation plan do not have a vesting period; since 2006, these are the only options issued by ATT. Performance stock units, which are nonvested stock units, are granted to key employees based upon our stock price at the date of grant and are awarded in the form of ATT common stock and cash at the end of a two- to three-year period, subject to the achievement of certain performance goals. Other nonvested stock units are valued at the market price of our common stock at the date of grant and vest typically over a two- to five-year period. As of December 31, 2009, we were authorized to issue up to 110 million shares of common stock (in addition to shares that may be issued upon exercise of outstanding options or upon vesting of performance stock units or other nonvested stock units) to officers, employees, and |
NOTE 13. STOCKHOLDERS' EQUITY
NOTE 13. STOCKHOLDERS' EQUITY | |
1/1/2009 - 12/31/2009
USD / shares | |
Notes to Financial Statements [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 13. STOCKHOLDERS EQUITY From time to time, we repurchase shares of common stock for distribution through our employee benefit plans or in connection with certain acquisitions. In December 2007, the Board of Directors authorized the repurchase of up to 400 million shares of our common stock. This authorization replaced previous authorizations and expired on December 31, 2009. As of December 31, 2009, we had repurchased approximately 164 million shares under this program. During the Annual Meeting of Shareholders in April 2009, shareholders approved the increase of authorized common shares of ATT stock from 7 billion to 14 billion, with no change to the currently authorized 10 million preferred shares of ATT stock. As of December 31, 2009 and 2008, no preferred shares were outstanding. In December 2009, the Company declared its quarterly dividend, which reflected an increase in the amount per share of common stock from $0.41 to $0.42. |
NOTE 14. ADDITIONAL FINANCIAL I
NOTE 14. ADDITIONAL FINANCIAL INFORMATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule to Financial Statements [Abstract] | |
ADDITIONAL FINANCIAL INFORMATION | NOTE 14. ADDITIONAL FINANCIAL INFORMATION December 31, Consolidated Balance Sheets 2009 2008 Accounts payable and accrued liabilities: Accounts payable $ 7,514 $ 6,921 Accrued rents and other 3,335 4,437 Accrued payroll and commissions 2,430 2,401 Deferred directory revenue 1,491 1,984 Accrued interest 1,717 1,471 Compensated future absences 563 609 Current portion of employee benefit obligation 2,021 729 Other 1,928 1,480 Total accounts payable and accrued liabilities $ 20,999 $ 20,032 Deferred compensation (included in Other noncurrent liabilities) $ 1,633 $ 1,648 Consolidated Statements of Income 2009 2008 2007 Advertising expense $ 2,797 $ 3,073 $ 3,430 Interest expense incurred $ 4,119 $ 4,049 $ 3,678 Capitalized interest (740 ) (659 ) (171 ) Total interest expense $ 3,379 $ 3,390 $ 3,507 Consolidated Statements of Cash Flows 2009 2008 2007 Cash paid during the year for: Interest $ 3,873 $ 3,727 $ 3,445 Income taxes, net of refunds 4,471 5,307 4,013 Consolidated Statements of Changes in Stockholders Equity 2009 2008 2007 Accumulated other comprehensive income (loss) is composed of the following components, net of taxes, at December 31: Foreign currency translation adjustment $ (761 ) $ (912 ) $ (469 ) Unrealized gains on securities 324 100 375 Unrealized gains (losses) on cash flow hedges 142 (483 ) (226 ) Defined benefit postretirement plans (14,112 ) (15,761 ) (59 ) Other (1 ) (1 ) (1 ) Accumulated other comprehensive (loss) $ (14,408 ) $ (17,057 ) $ (380 ) No customer accounted for more than 10% of consolidated revenues in 2009, 2008 or 2007. A majority of our employees are represented by labor unions as of year-end 2009. |
NOTE 15. CONTINGENT LIABILITIES
NOTE 15. CONTINGENT LIABILITIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule to Financial Statements [Abstract] | |
CONTINGENT LIABILITIES | NOTE 15. CONTINGENT LIABILITIES In addition to issues specifically discussed elsewhere, we are party to numerous lawsuits, regulatory proceedings and other matters arising in the ordinary course of business. In accordance with GAAP standards for contingencies, in evaluating these matters on an ongoing basis, we take into account amounts already accrued on the balance sheet. In our opinion, although the outcomes of these proceedings are uncertain, they should not have a material adverse effect on our financial position, results of operations or cash flows. We have contractual obligations to purchase certain goods or services from various other parties. Our purchase obligations are expected to be approximately $2,890 in 2010, $4,095 in total for 2011 and 2012, $2,549 in total for 2013 and 2014 and $694 in total for years thereafter. See Note 9 for a discussion of collateral and credit-risk contingencies. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule to Financial Statements [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | Schedule II - Sheet 1 ATT INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts Dollars in Millions COL. A COL. B COL. C COL. D COL. E Additions (1 ) (2 ) (3 ) Balance at Beginning of Period Charged to Costs and Expenses (a) Charged to Other Accounts (b) Acquisitions Deductions (c) Balance at End of Period Year 2009 $ 1,270 1,763 30 2 1,860 $ 1,205 Year 2008 $ 1,364 1,796 929 - 2,819 $ 1,270 Year 2007 $ 1,276 1,617 366 - 1,895 $ 1,364 ___________________ (a) Excludes direct charges and credits to expense on the consolidated statements of income and reinvested earnings related to interexchange carrier receivables. (b) Includes amounts previously written off which were credited directly to this account when recovered and amounts related to long-distance carrier receivables which were billed by ATT. (c) Amounts written off as uncollectible. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Jan. 31, 2010
| Jun. 30, 2009
| |
Entity [Text Block] | |||
Entity Registrant Name | AT&T Inc. | ||
Entity Central Index Key | 0000732717 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $146,600,000,000 | ||
Entity Common Stock, Shares Outstanding | 5,902,074,438 |