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A Proposal for
The State of New Jersey
Department of Corrections & Juvenile Justice Commission
-TRE - 438
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AT&T
AT & T Inmate/Resident Telephone Control Service
•
Contents
AT&T 2000 Annual Report
AT&T 2000 Supplier Diversity Annual Report
AT&T Inmate System Documentation
Sample Reports .................................................................................... Attachment I
AT&T Inmate System Features ............................................................ Attachment 2
Digital ACP Voice Prompting ............................................................. Attachment 3
TOM Administrative Terminal User's Guide ...................................... Attachment 4
PIN Management System ..................................................................... Attachment 5
Monitoring Phone User's Guide .......................................................... Attachment 6
HearSay Playback User's Guide .......................................................... Attachment 7
Voice Recording Transfer to CD ......................................................... Attachment 8
•
Equipment Installation, Test, and Maintenance ................................... Attachment 9
OpScan 4U Scanner and Sample Bubble Forms .................................. Attachment 10
AT&T Option A Solution Documentation
Sample Reports ....................................................... ,............................ Attachment 1
V AC Inmate System Description ......................................................... Attachment 2
System 100 Inmate Telephone System User Manua!... ........................ Attachment 3
Shadow Operation Manual.. .................................... ,............................ Attachment 4
KV-SS25 D Scanner ............................................................................ Attachment 5
•
Contents
TRE - 439
i
Creating value
Inside the new AT&T: one brand, four gems, new value.
)
AT&T I 2000 Annual Report
TRE - 440
'A Company in Transition
Three years ago, it was clear that technology and regulation would transform the communications industry. AT&T had to act. We needed to move beyond long distance. So we improved the margins of our core
business and used the cash flow to help fund our own transformation. Through acquisitions and internal
development we created three of the most sophisticated end-to-end networks in the world for digital wireless, broadband cable and data. We also made good progress in attracting customers to these new networks. Through our actions, three years later, AT&T boasts four businesses each a leader in its industry.
AT&T Group· Highlights
A new look:
We're presenting this annual
report in two sections: the
familiar company overview
Revenue**
Income available to common shareowners
and a financial section print-
Capital expenditures
ed on thinner paper to make
it less bulky_ We hope you
Total assets
find this new cost-efficient
Total debt
format more convenient and
Shareowners' equity
easier to read. You can also
check out the entire report
on the Internet by visiting
'NWW.att.com/ir.
2 Letter to Shareholders
6 AT&T Business
8 AT&T Broadband
10 AT&T Wireless
12 AT&T Consumer
14 A Quartet of Companies
16 Senior Leadership Team
17 Board of Directors and
Corporate Information
1999
Change
$ 65.981
3,181
14.566
208.114
65,039
$ 68,964
$ 62.600
5,450
13.511
130,973
35.850
$ 40,406
5.4%
(41.6)%
7.8%
58.9%
81.4%
70.7%
$ 3,105
0.88
$ 17.25
5.450
1.74
$ 50.81
(43.0)%
(49.4)%
(66.0)%
AT&T Common Stock Group:
Earnings
Earnings per diluted share
Stock price
Contents
2000
Dotiars in millions. except per share amounts and stock prices
AT&T Wireless Group:
$
76
0.21
$ 17.31
Earnings
Earnings per diluted share
Stock price
'" AT&T Group excludes the results of Liberty Media Group.
··Represents revenue on an as reported basis. Pro forma revenue, which adjusts for the acquisitions of MediaOne Group. Inc., TeleCommunications, Inc., and the IBM Global Network, the impact of the formation of Concert, the elimination of Pice (Primary
Interexchange Carrier ChargeS). the consolidation of Excite@Home, certain international divestments, and closed cable partner-
ships, increased 4.1% in 2000.
TRE - 441
A Timeless Strand
AT&T Business is an enterprise communications and networking leader. AT&T Wireless is one of the
fastest-growing wireless businesses in the United States. AT&T Consumer is a leading consumer
communications and marketing business. And AT&T Broadband is the largest cable broadband services
business -
and one of the fastest-growing. Our restructuring plan is designed to provide AT&T share-
owners with publicly-traded securities that reflect each of these four businesses. They're linked with a
common vision yet will have the focus and flexibility of separate businesses.
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=AT&TIBOUNDLESS
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TRE - 442
The Transformation of AT&T
Three years ago it was clear that technology and regulatory policy were transforming the communications
industry
ard AT&T had to make a transformation of its own. We had to move AT&T from just handling the
long-haul portion of long distance voice to providing the next generation of end-to-end broadband
communications and information services, in whatever combinations customers wanted. We certainly
weren't walking away from long distance, but it needed to become a smaller percentage of our total
revenue as we grew in new areas.
C. Michael Armstrong
Chairman and
Chief Executive Officer
2
Dear Shareowners: Transitions are tough, and 2000 was a major transition year for the commu·"
nications industry and for AT&T. It was a year when the decline in long distance prices accelerated"
sharply throughout the industry while newer segments of our company such as data, wireless and
broadband services grew in double digits.
The world's networks carried increasingly more data than voice. More long distance and
calling card calls were replaced by wireless calls and e-mail. The lack of widespread competition
in local phone service made it clear that the regional Bell companies are not opening their local
monopolies to competition as the Telecommunications Act of 1996 required. Yet those
companies are entering the long distance market.
Fortunately, we recognized three years ago that we had to prepare AT&T for a very different
future, and we took decisive action.
Early in 1998 we set out to make AT&T a leader in end·to-end broadband communications
and information services. Since then, we have invested more than $100 billion in acquisitions,
new technology and capacity for all four of our businesses, as we cut more than $4 billion in costs
to improve our competitiveness.
• For business customers, we invested more than $35 billion over the last three years to
upgrade our networks, acquire the Teleport Communications Group and the IBM Global Network,
expand our international ventures including AT&T Canada, AT&T Latin America, and Alestra, open
16 new Internet data centers, and install 16,500 route miles of next-generation fiber. Now we
have one 6f the world's leading data/Internet networks.
• In wireless, we made more than $15 billion worth of acquisitions and investments that
converted a patchwork of local analog cellular operations into a national digital wireless network
with more than 15 million customers.
• Our acquisitions of cable TV companies TCI and MediaOne got a lot of headlines, but more
importantly we invested in critical upgrades of our cable networks, converting them from a oneway entertainment medium to an interactive broadband highway carrying high·speed Internet,
digital cable and local and long distance telephone services.
• And we continued to maintain and upgrade our long distance voice network to best protect
TRE - 443
)
)
Broadband and boundless
More than $100 billion in investments later, AT&T is truly broadband and boundless. We fundamentally
expanded our customer offers through focused, strategic acquisitions, including TCG, TCI, MediaOne,
Vanguard, Wireless One, and the IBM Global Network. We also created Concert, a global joint venture
with BT, to serve our multinational customers. And we invested on average about $12 billion annually
over the past three years in capital spending to upgrade our networks, lay optical fiber and create data
centers. We're building a bright future in the fastest growing segments of the communications market.
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our consumer revenue stream and marl<et leadership. We focused our marketing efforts on
acquiring high-value customers with innovative offers and invested in initiatives such as local
service. product bundles and award·winning Internet access.
The benefits of these investments have become increasingly clear.
• AT&T Business is a leader in providing corporate customers with sophisticated global
service, as volume on our advanced datajlP network doubled in 2000.
• AT&T Wireless grew its customer base by 58 percent last year. fueled by key acquisitions
'-""97
and effective marketing. And it's well pOSitioned to introduce the next generation of advanced
98
99
00
Revenue
(1997-2000 annual figures)
($ in billions)
wireless data services.
• AT&T Broadband. the country's largest cable TV company. has the strongest lineup of
broadband services in the industry. It's now al so one of the fastest growing.
• AT&T Consumer retains its number one position in the competitive consumer long distance
market. Our long distance service and our AT&T WorldNet· Service each won first·place awards
for customer satisfaction in J.D. Power and Associates 2000 studies.
But the economic difficulties of long distance voice are masking the progress of our growth
businesses. As a result, AT&T's stock price took a pounding last year along with the rest of the
long distance carriers. It was tough for our shareowners as well as all of us. but in a painful way it
confirmed AT&T's deCision to move well beyond long distance voice.
As long distance voice declined, we expanded our newer growth businesses by an average of
20 percent. As a result. we reduced long distance voice from about 80 percent of our revenue in
1997 down to about 50 percent last year. Even then. too many investors and analysts still
thought of and analyzed AT&T as primarily a long distance company.
It was time to unlock the value of AT&T's growth businesses. So in October 2000. we an·
)
nounced a plan to create a family of four businesses, each a leader in its market segment and each
represented by either a tracking or asset·based stock. Establishing these equities will better enable
the businesses to grow and compete, while enabling their shareowners to benefit from the value
they create.
Our intent is to provide current AT&T shareowners with shares designed to reflect each
TRE - 444
3
AT&T brings it to you
In just three years AT&T has developed the technology and the market offers to bring customers the
digital broadband services they want, and bring investors the growth in value they deserve. With both
those goils in mind, we took another step in our transition last October when we announced plans to
restructure AT&T and create a family of four investment securities.
97
98
99
00
ATaT Group
Shareowners' Equity
(1997-2000 at year end)
($ in billions)
of these four powerful businesses. And this restructuring is intended to give investors the ability
to select the parts of AT&T that best match their investment needs.
AT&T Wireless and AT&T Broadband are growth businesses that increased revenue 37.0
percent and lOA percent, respectively, last year. AT&T Business is a combination of growth and
income businesses, reflecting the mix of data, outsourcing and long distance voice services it
offers business customers. And AT&T Consumer, with its declining but still large and profitable
revenue stream, is today an income and dividend investment.
We believe our four businesses can better manage shareowner value and compete more
effectively as publicly-held businesses, each with the focus, speed and flexibility to win in its individual market.
Each business will be able to use stock, whether asset-based or tracking, as currency to
invest in other opportunities and raise capital. Shareowners will find it easier to see and compare
the results of each business to its competition. And each bUSiness will be able to motivate
employees with an equity compensation system tailored to its own market conditions and needs.
You'lI get a close-up look at each of these businesses in the following pages of this annual
report. And while their new independence of action will be a critical asset, their continuing
relationship will be an unmatched strength.
These four businesses share the world-class AT&T brand, with all the quality and customer
acceptance it represents. They share a common vision of the broadband future, with shared
access tothe technology to deliver on that vision.
Taken together or separately, the four businesses of the new AT&T will represent a future that
is broadband and boundless. For us, that future offers new opportunities to expand the value of
your investment in AT&T.
~~~
C. Michael Armstrong
Chairman and Chief Executive Officer
4
TRE - 445
)
March 19, 2001
With four leading communications businesses
)
Each of the four is a leader in a different segment of the communications industry and each will have
the freedom to meet the unique needs of its individual market. But, as a family of AT&T businesses, all
four will share the power of the AT&T brand, networks and technology.
)
=AT&.TIBOUNDLESS
5
TRE - 446
att.com/homedepot
AT&T Integrated Network Connection Services lets Home Depot manage inventories
in real time. Providing 24/7 links to critical data, building supplies can get to stormthreatened areas well before the storm. Truly stirring, isn't it?
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6
--AT&TIBOUNDLESS
TRE - 447
~
AT&T Business
The biggest of our four businesses, AT&T Business meets the global communications needs of 5 million
corporate customers. Its lineup of services ranges from data networking at speeds of up to 10 gigabits
per second -
the fastest commercially available -
to providing companies with global telephony and
advanced services. A $28.5 billion business last year, it's focused on satisfying the world's appetite for
faster, smarter network services.
/4.T& T Business means
folio of services in the
business. The largest of
AT&T's four businesses
industry. from broadband
data and Internet Protocol
with $28.5 billion in
revenue last year, AT&T
Typical of the industry.
companies. In the United
networking company
revenue from our
States. our new coast-to-
providing high-speed ser-
coast 10-gigabit OC·192
vices to customers in
(IP) networl<ing to web
advanced services is
growing dramatically while
fiber network uses the
Argentina, Brazil, Chile,
hosting, virtual private
revenue from bUSiness
fastest data transmission
Colombia and Peru. And
Business is the high-
networks. e-commerce
long distance service is
technology in commercial
in December, AT&T
speed, high·tech reality
support, local telephony
declining, even as vol-
use today, and we're
behind the grand can-
and business long dis-
umes increase. The big
laying the groundwork for
formed the first joint
venture ever in China's
cepts of e-commerce and
tance service, in the U.S.
challenge for the future is
a network that's four
fast-growing telecom ser-
a global economy sup.
and around the world.
to grow new services
and international revenue
times faster.
Concert, our joint ven-
vice industry, to bring
broadband, value-added
fast enough to offset
ture with BT, serves more
than 270 multinational
IP services to business
customers in Shanghai.
ported by digital technology.
We're the prime
These services are
bundled according to the
needs of our corporate
global communications
provider for 5 million
customers. Our networks
declining prices in long
distance voice and to
corporations, from entre-
move an incredible 675
keep improving end-to-end
seamless, global
to feed corporations'
customer service.
communications services.
boundless appetite for
preneurial start-ups to
trillion bytes of data on a
world famous mUlti-
typical business day. The
nationals. AT&T Business
AT&T Solutions unit of
meets their needs with
the most complete port·
We created nearly
business customers with
We're well positioned
In addition, AT&T has
speed and sophistication
joint ventures in Canada,
in networking services,
AT&T Business advises
1 million square feet of
Internet data centers and
Mexico and Japan to
anywhere they're needed.
customers on their
provide web hosting for
serve the needs of global
business communications
more than 10,000
business customers.
needs. To date, it has
In August. AT&T Latin
won contracts worth $14
America completed its
billion in potential revenue.
merger with RrstCom,
creating a facilities-based
7
TRE - 448
att.com/broadbandtv
AT&T's broadband technology can bring hundreds of channels, with thousands
of hours of programming featuring an enormous selection of movies, directly into
millions of homes every day, Want a little butter with that?
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-AT&TIBOUNDLESS
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TRE - 449
AT&T Broadband
)
AT&T Broadband is a world leader in delivering high-growth services that weren't part of AT&T's
experience just two years ago, from basic cable and digital TV, to high-speed Internet access and cable
telephony, with video-on-demand and other advanced services on the way. This business is bringing the
broadband future to its customers.
)
.
Becoming the leading
broadband technology
ter value at lower prices.
cable TV provider in the
2000. And we acquired
just to deliver one·way
entertainment.
Customer acceptance
has been undeniable.
a controlling interest in
Excite@Home, the
United States might be
an end in itself for some
companies. but not for
AT&T Broadband.
grading our networks to
We passed that mile-
We're rapidly up-
Over the course of the
world's leading provider
year we went from
of online broadband ser-
offer more customers
73,000 cable telephony
vices with 2.96 million
interactive digital broad-
customers to 547,000.
customers at the end of
stone in 2000 when we
band services that
completed our acquisi-
combine the power of
industry leader in digital
tion of MediaOne. Today
TV, telephone service
video. By year-end we
we serov:e 16 million
and the Internet. These
were serving more than
strong momentum,
basic cable customers
products are the high-
2.8 million customers.
on a network that passes
focused on the future.
growth segments of the
We provided more than
28 million homes. But
We're all about today
broadband market, and
1 million customers
and tomorrow.
we're providing them
with high-speed data
faster than anyone else.
services at the end of
we didn't invest in
We also became the
last year.
So AT&T Broadband
is moving into 2001 with
In cable telephone
service, our facilities-
based alternative to the
local phone monopolies
offers packages of bet-
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9
TRE - 450
att.com/pocketnet
Lost? Hungry? Terrified your pork-belly futures are tanking? With enabled
sites like MapQuest. Zagat Survey and Charles Schwab, you'll find AT&T's wireless web
ser'vice can put the most useful tools on the Internet in the palm of your hand.
Or in your purse, briefcase or pocket.
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10
TRE - 451
AT&T Wireless
AT&T Wireless served a total of more than 15 million people last year as its customer base increased
by 58 percent. Now this business, in a strategic alliance with NTT DaCoMa, is well·positioned for
leadership in the new and growing market for wireless multi-media services. No wonder AT&T Wireless
grew revenue by 37 percent last year. It is a prime mover in the fast-moving wireless world.
Being wireless means
our customer base by
video-e-mail. high-quality
never having to find a
58 percent last year, to
music downloads and
shares of AT&T preferred
phone. It's always there,
more than 15 million
high-speed interactive
tracking stock, equiva-
in your pocket or the
customers on our
nationwide digital
network. We extended
services over a wireless
phone instead of a wired
lent to 406 million
computer.
tracking stock (an
palmofyourhand,an~
where, anytime you
$9.8 billion to acquire
shares of AT&T Wireless
need it. Affordable and
our service footprint
We formed an alli-
dependable wireless
through building new
ance with NTI DaCoMa
service has permanently
facilities and strategic
of Japan, a leader in
changed the lifestyles of
acquisitions. Together,
advanced wireless
portion of AT&T Wire-
people around the
including partnerships
services. We're working
less Group (AWE) track·
world.
and affiliates, as well
with them to develop
ing stock last April was
as roaming agreements,
the next generation of
the biggest in U.S.
history, attracting $10.6
And AT&T Wireless is
approximate 16 percent
economic interest).
The public sale of a
a leader in bringing
we cover 95 percent of
mobile multi-media
growth and excitement
the U.S. population.
services on a global-
billion in investment for
standard, high·speed
15.6 percent of the
stOCk. These investors
to this surging industry.
We've got people
Now we're gearing up
to be a leader in the
wireless network. NTI
talking. Including acqui-
wireless industry's giant
DoCoMo also invested
sitions, we expanded
step into the future with
~3G, ~
the next genera-
tion of advanced wire-
share our excitement
about the future of AT&T
Wireless. It's more than
just talk.
less services. 3G will
mean you can enjoy
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11
TRE - 452
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Secure, reliable c'onnecti'.,qns, Fa'st'€r31lif:ifn t;lmes': When 'you're looking
to get the most out of the lri,ternet:-.~:no,on~- kri'ows,>-tJl'~('\I(~f'aq)_Und the
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TRE - 453
AT&T Consumer
With 60 million customers, AT&T Consumer is by far the largest and most profitable major carrier in the
market, and an award-winning leader in customer satisfaction. As we compete for long distance voice
business with innovative customer offers, we're also working to create new value by expanding our
consumer Internet service, introducing new packages of integrated services and making full use of our
expertise in consumer marketing, customer care and billing.
)
As the leader of the
have contributed to the
vigorously competitive
growth of AT&T"s newer
launched the popular
in such areas as
consumer long distance
businesses. Now AT&T
AT&T 7/7 offer that
customer care, billing
market, AT&T Consumer
Consumer is becoming
felt that market's rough
a new business itself.
combines interstate
long distance with AT&T
offer local phone service
ride in 2000.
We're not abandoning
WorldNet" Internet
in markets where the
consumer long distance
access service, which
wholesale cost of leas·
But even with revenue
fully utilize our expertise
and marketing. We will
dropping in 2000,
-
also ranked number one
ing capacity on the local
AT&T Consumer was a
dies 300 million voice
in the J.D. Power and
monopoly networks is
not when AT&T han·
large and profitable
calls a day and not
Associates 2000
not prohibitively aver-
business with 60 million
when the J.D. Power and
National Internet Service
priced.
customers. AT&T
Associates 2000 Resi·
Provider Customer
Consumer had revenue
dential Long Distance
Satisfaction Study.SM
a customer base that no
of $19 billion with an
Customer Satisfaction
AT&T Consumer is
competitor can match, a
With experience and
EBIT (Earnings Before
StudySM says our long
investing now to expand
rigorous cost·reduction
Interest and Taxes) mar·
distance service ranked
our consumer Internet
program that has
gin of 37.4 percent, the
number one among
service, introduce voice,
already saved billions,
best in the industry.
high·volume users. But
data, local and long
and a market focus on
we are combining long
distance integrated
high·value, high·margin
distance with newer data
service packages, and
services, AT&T Consumer
AT&T Consumer's
cash flow and earnings
J
Earlier this year we
services that respond to
changing customer
its leadership in this
life-styles and create
marketplace.
is poised to maintain
new growth potential.
13
TRE - 454
AT&T: a quartet of businesses
The AT&T quartet is a combination of top performers, each one a leader in its own market. From
business }o broadband to wireless to consumer services. As solo performers, they have the potential to
move faster and go farther as they meet the different needs of their customers. But their unique strength
is in their harmony.
A Single Brand: Each of the four AT&T businesses will share the AT&T brand. In 2000 that brand was once again rated number
one in brand image, a composite of brand awareness and confidence, by the International
Data Corporation (IDC) assessment of U.S. consumer telecom brands. The Interbrand annual
survey ofthe world's most valuable brands ranked AT&T 10th among the top 75 companies,
the only communications services company in the top half of that prestigious listing. Our
brand is an unwritten but powerful contract with customers that they can trust us to meet their
high expectations. And should we ever stumble, they can trust us to own up to our mistakes
and fix them. It's a great brand, and each of the four businesses is ready to enhance it.
The Network: f:very 45 minutes the AT&T Worldwide Intelligent Network transmits information equivalent to the content of all the
books in the Library of Congress. This is the network that our other specialized networks
depend on, and it will be a shared resource of the four new AT&T businesses. It is the world's
largest, most sophisticated communications network, handling more combined data, voice
and Internet traffic than any other carrier, while connecting the United States with virtually
every cou~try in the world. All of this traffic is managed centrally from the statEHlf-the-art Global
Network Operations Center we opened in New Jersey last year. On a typical business day the
network carries 675 trillion bytes of data and 300 million voice calls. We offer local business
services in 71 major markets using 5,100 metropolitan SONET rings. The super-fast lane of
this digital highway is our coast-to-coast OC-192 digital service launched last year. This OC192 -lO-gigabit per-second -
technology is the fastest commercially available in the world
today, capable of transmitting 25 feature-length movies across the continent in two
minutes. Not only are we adding more capacity, but hang on, the network is now gearing up for
40-gigabit service which will be four times faster than OC-192.
14
TRE - 455
)
Performing in harmony
That harmony comes from powerful shared resources: a globally respected brand, a worldwide network,
a conscientious and caring workforce, and an unmatched customer base, all backed up by an R&D
organization that is synonymous with leadership in networking technology. We're working to create a
newer, faster AT&T, but you will also find us reassuringly familiar.
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AT&T Labs: Take 2,500 of the industry's best scientists and engineers. Charge them with developing new broadband, wireless
and Internet Protocol (lP) services. And you've got AT&T Labs. You've also got lots of action,
with research and development that generates an average of two patents every business day.
This is the team that invented a way for cable operators to offer their customers a choice of
Internet Service Providers, developed new speech technology to improve customer service,
and made it possible to put new business customers on the network in hours instead of days.
This is the organization that is a leader in fundamental research, tools and technology for
secure, high-quality, large-scale global networks.
Our People: AT&T's 165,000 people keep us going and growing. Over the past 120 years it's been the commitment of our people that built our brand, preserved our quality and kept customers coming back. And AT&T
people are caring as well as competent. Caring enough that last year AT&T employees and
retirees recorded 1.2 million hours of volunteer service in communities across America. You'lI
find them wiring schools for the Internet in California or cleaning beaches in New Jersey.
Giving something extra of yourself is an old tradition of AT&T people. It's still going strong.
A Customer Base: Our customer base ranges from small families to big businesses and government agencies. More than 60
million families depend on us for their long distance service. So do 5 million businesses. Like
AT&T itself, our customer base is shifting and growing. We had a 58 percent increase in wireless customers last year, bringing us to more than 15 million subscribers. We lead the new
and growing digital video market with more than 2.8 million customers. And by the end of last
)
year we were adding customers for high-speed Internet access at the rate of 3,800 per day,
and 3,000 customers each day for cable telephony.
15
TRE - 456
AT&T Senior Leadership Team
Robert M. Aquilina
Co-President
AT&T Consumer,
C. Michael Armstrong
Chairman of the Board and
Chief Executive Officer
James W. Cicconi
General Counsel and
Executive Vice President
Law and Government Affairs
David W. Dorman
President
Mirian Graddick-Weir
Executive Vice President
Human Resources
Frank lanna
President
AT&T Network Services
Richard J. Martin
Executive Vice President
Public Relations & Employee
Communications
Howard E. McNally
Co-Piesident
AT&T Consumer
David C. Nagel
Chief Technology Officer and
President
AT&T Labs
Charles H. Noski
Senior Executive Vice President
and Chief Financial Officer
John C. Petrillo
Executive Vice President
Corporate Strategy & Business
Development
Daniel E. Somers
President
AT&T Broadband
AT&T Wireless Group
Mohan Gyani
President
AT&T Wireless Services
Michael Keith
President
AT&T Rxed Wireless Services
John D. Zeglis
Chairman and Chief Executive
Officer
Edward M. Dwyer
Vice President and Treasurer
Marilyn J. Wasser
Vice President
Law and Secretary
Other Corporate Officers
Nicholas S. Cyprus
Vice President and Controller
Constance K. Weaver
Vice President
Investor Relations
Pictured left to right:
John Zeglis, Dan Somers,
David Dorman, Mike
Armstrong and Chuck Noski.
)
16
TRE - 457
Corporate Headquarters
32 Avenue of the Americas
New York, NY 10013-2412
Board of Directors
C. Michael Armstron_
Chairman olthe Boarcrancr Chief
Executive Officer of AT&T since
1997.
Kenneth T.
Chairman of
Retired,
Chevron Corporation, an international oil company. Director since
1995. 1,2
M. Kathryn Eickhoff.
President, Eickhoff
i
Inc., economic consultants.
. Electeq to Board in 1987. 1,4
Walter Y. Elisha.
Retired Chairman and Chief
Executive Officer, Springs Industries Inc., a textile manufacturer.
Director since 1987. 3,4
George M.C. fisher .
Retired Chairman af to, Eastman Kodak Company, an imaging
company. Elected to Board in
1997. 2,4,5,6
John C. Malone'l
Chairman, Liber Media Corporation, a cable programming
company. Elected to Board in
1999. 4,5,6
Donald V. Fites.
Chairman, Retirm aterpillar Inc.,
an equipment manufacturer.
Director since 1997. 3,4,5,6
Donald F.
President, IRC Group,
tional relations consultants; former U.S. Ambassador to the
United Nations. Director since
1986. 1,2,3
Amos B. Hostetter, Jr.•
Former Chairman and"Ci':ret Executive Officer, Continental Cablevisian, Inc., a cable communications company. Elected to Board
in 1999. 2
Ralph S. Larsen.
Chairman and Ctl'J'Executive
. Officer, Johnson & Johnson, a
pharmaceutical, medical and
consumer-products company.
Director since 1995. 1,4
Mol""""
Louis A. Simpson .
President and CEO, Capital
Operations, GEICO Corporation,
an insurance company. Director
since 2000. 1,2
Michael I. sovern .
President Emeritus and Chance"
lor Kent Professor of Law, Columbia University. Elected to Board
in 1984. 1,2,5
Sanford I. weill .
Chairman and Chief Executive
Officer, Citigroup, a financial services company. Director since
1998. 4,6
John D. Zeglis.
Chairman and~f Executive
Officer, AT&T Wireless Group.
Director of AT&T since 1997.
1. Audit Committee
2. Compensation and Employee
Benefits Committee
3. Governance and Nominating
Committee
4. Rnance Committee
5. Liberty Capital Stock
Committee
6. Wireless Capital Stock
Committee
Ages are as of January 1, 2001.
Corporate Information
AT&T on the World Wide Web
The AT&T home page - www.att.com-andtheAT&TWireless home page
- WVffl.attwireless.com - are your entry points for a vast array of information, including company news and details on products and services.
You're also encouraged to visit the AT&T Investor Relations Web site
(www.att.com/ir/) or for AT&T Wireless (www.att.com/wirelessir/)forupto-the-minute information for shareowners and the financial community.
Stock Information
AT&T (ticker symbol "1") is listed on the New York Stock Exchange, as well
as the Boston, Chicago, Cincinnati, Pacific and Philadelphia exchanges in
the United States, and on stock exchanges in Brussels, London, Paris and
Geneva. As of December 31,2000, AT&T had 3.8 billion shares outstanding, held by more than 4.8 million shareowners. AT&T Wireless Group common stock (ticker symbol "AWE"), tracking stock of AT&T. is listed on the
New York Stock Exchange. As of December 31, 2000, AT&T Wireless had
361.8 million shares outstanding held by 3,681 registered shareowners.
Liberty Media Group Class A and Class B common stock (ticker symbols
"LMG.A" and "LMG.B"), tracking stock of AT&T, are listed on the New York
Stock Exchange. As of December 31, 2000, Liberty Media Class A had 2.4
billion shares outstanding, held by 6,842 shareowners; Liberty Media
Class B had 206.2 million shares outstanding, held by 375 shareowners.
Electronic Access to Proxy Materials
In an effort to reduce the printing, enclosing, and mailing costs associated with the distribution of the AT&T Annual Report and Proxy Statement,
AT&T registered shareholders can now elect to electronically access,
view, and download the AT&T Annual Report and Proxy Statement as well
as other materials via the AT&T Investor Relations Website at
ww.att.com/ir or by calling 1-800-348-8288. With this option, share-
Annual Meeting
The 116th Annual Meeting of Shareowners will convene at 9:30 a.m. at
the Cincinnati Convention Center, Cincinnati, Ohio, on May 23,2001.
Supplier Diversity Initiative
As part of AT& T's-Supplier Diversity Initiative, approximately $1.7 billion
of AT&T's total purchases in 2000 were made from minority-, womenand service-<lisabled-veteran-owned business enterprises. More information is available online at www.att.com/supplle.-diversityj.
AT&T Giving
For more than 100 years, AT&T has built a tradition of investing in local
communities through our ongoing support for education, civic and com·
munity service, the environment, public policy and the arts. In 2000, the
AT&T Foundation donated $44 million to nonprofit organizations in local
communities throughout the United States and around the world. Also in
2000, AT&T employees volunteered nearly one million hours of community service through the AT&T CARES program. And,the AT&T Learning
Network, an online program, helped teachers, community members and
families improve teaching and learning through the effective use of technology. For more information on the AT&T Foundation, AT&T CARES and
the AT&T Learning Network, visit our Web site at www.att.com/givingf.
Telephone Pioneers of America
Since 1911, AT&T has been a sponsor oIThe Telephone Pioneers of
America, the world's largest, industry-based volunteer organization.
AT&T employees and retirees comprise 60,000 of its members. For more
information, visit www.telephone-pioneers.org,l.
prepaid return envelope via U.S. mail. Beneficial owners can request
electronic access by contacting their bank or broker.
Environment, Health & Safety
AT&T is dedicated to creating a safe and healthy workplace for AT&T
employees and strives to maintain our reputation as one of the top corporate environmental champions. More information about AT&T's environment, health and safety initiatives may be found online at YM'W.att.com/ehsf,
C 2001 AT&T. All rights reserved. Printed In the USA
a \ This annual report is printed on recycled paper containing a minimum of
\%I 10% de-inked post-consumer fiber. Please recycle.
Ilolders will continue to receive the Notice of Meeting, proxy card, and a
TRE - 458
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AT&T Online Billing makes it simpler than ever to manage your phone
bill, No more paper bills, or checks to mail. Online statements and auto·
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service starting at $4.95 a month. With the fastest log-on
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otters ~ea to dJonge IMthout notice. i<i95w Offer nol (Mli/oble to Moe users CIt Ihil; time. Otherpnce
1 plans oo/able for Mx users."Based, on \l"1St.d Networl<s (hIerse) SCDre5 0( inleml'l Bend-marl<. tesU1g
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Mailing address:
AT&T Shareowner Services
%EquiServe
P.o. Box 8035
Boston, MA 02266-8035
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AT&T
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The interactive voice response system is available 24 hours a day,
1
seven days a week; representatives are available Monday through
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Fri daY, 8 a.m.- 6 p.m. Eastern time.
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TRE - 459
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W!thiu the u.S./lnterrultional
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For up-to-the-minute information of interest to shareowners, including :I
online accOunt access, instl11ctions ,and forms for !llana~g yoUr
:I
acCOlUlt, visit the AT&T Investor. Relations Web 'site at www.att.comftr/· 'I
orfo,t; AT~ ~1feless a(w;wW.a;ttco~rfleisir(~ . ~~' ;'~1 ~ ~j
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Or, contact our shareowner'services and'transfer agent, EquiServe, for ,_
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TRE - 460
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32 Avenue of the Americas/New York, NY lOOl3-2412/212-387-5400/www_att_com
ATT-AR-2000
TRE - 461
Creating value
Inside the new AT&T: one brand, four gems. new value,
_
AT&T
I 2000
Financial Report
TRE - 462
A Company in Transition
AT&T's results in 2000 reflect the volatility and increased competition of the communications industry, and yet they also reveal the still untapped value of AT&T. It was a year of continued transition.
We've repositioned AT&T for growth through our continued investments in and scaling of our wireless
business, IP networks and broadband connections. But more than anything else, 2000 will be known
for our planned restructuring -
and will cause 2001 to be a year of great change for AT&T. Through it
all, our primary focus will be on the financial and operating performance of our four major businesses
as we commit to strengthening our financial position and delivering value to our shareowners.
Chuck Noski
Senior Executive
Vice President and Chief
Financial Officer
A new look:
We're presenting this annual
report in two sections: the
familiar company overview
and a financial section printed on thinner paper to make
it less bulky. We hope you
find this new cost-efficient
format more convenient ar
easier to read. You can also
check out the entire report
on the Internet by visiting
www.att.com/ir.
TRE - 463
.
..
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;.
-. - :.Table of Contents:· '.
-Management's Discussion and .
- Analysis ....... : .; ,. '.' ;. ',' : . " . : ; , , 2:
-,
'. Seven-Year Sunimary of Selected - "
Financial Data ................ '. ..
27
Report of Management .... " . : ... "
_28
Report of Independent Accountants •.. C - 29 '
.....
Consolidated Statements of Income .. '30
Consolidated Balance Sheets ........ '. -31 - '-.:.: .',.. -".
.. .
Consolidated Statements of Changes
- , inShareowners' Equity. ' .. ~ ,'.; : ..
"
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Consolidated Statements of Cash
Flows ....... : .......... " : .... : . _ 33 -Notes to Consolidated Financial ' , ..
Statements .....................
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",
...
34
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.,'
..
'i ,-
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,
,
'.
TRE - 464
,--
MANAGEMENT'S DISCUSSION AND ANALYSIS
OVERVIEW
AT&T Corp. (AT&T or the company) is among the world's communications leaders, providing voice, data,
video and broadband telecommunications services to large and small businesses, consumers and
government agencies. We provide domestic and international long distance; regional, local and wireless
communications services; cable television and Internet communication services. AT&T also provides billing,
directory and calling-card services to support our communications businesses.
MERGER WITH MEDIAONE GROUP, INC.
We completed the merger with MediaOne Group, Inc. (MediaOne) on June 15, 2000, in a cash and stock
transaction valued at approximately $45 billion. We issued approximately 603 million shares, of which 60
million were treasury shares, and made cash payments of approximately $24 billion.
The merger was recorded under the purchase method of accounting, and accordingly, the results of
MediaOne have been included with the financial results of AT&T, within our Broadband segment, since the
date of acquisition. Periods prior to the merger were not restated to include the results of MediaOne.
TRACKING STOCKS
On April 27, 2000, AT&T issued a new class of stock to track the performance of AT&T Wireless Group.
AT&T sold 360 million shares of AT&T Wireless Group tracking shares at a price of $29.50 per share. The 360
million shares track approximately 16% of the financial performance of AT&T Wireless Group.
In addition, in connection with the 1999 acquisition of Tele-Communications, Inc. (TCI) , renamed AT&T
Broadband (Broadband), AT&T issued a separate tracking stock to reflect the financial performance of Liberty
Media Group (LMG), TCl's former programming and technology investment businesses. The outstanding
Liberty Media Group tracking stock tracks 100% of the financial performance of LMG.
The remaining results of operations of AT&T, including approximately 84% of the financial performance of
AT&T Wireless Group, are referred to as the AT&T Common Stock Group and are represented by AT&T
common stock.
A tracking stock is designed to provide financial returns to its holders based on the financial performance
and economic value of the assets it tracks. Ownership of shares of AT&T common stock, AT&T Wireless
Group tracking stock or Liberty Media Class A or B tracking stock does not represent a direct legal interest in
the assets and liabilities of any of the groups, but an ownership of AT&T in total. The specific shares represent
an interest in the economic periormance of the net assets of each of the groups.
The earnings attributable to AT&T Wireless Group represent approximately 16% of the earnings from
April 27, 2000, through December 31, 2000, and are excluded from the earnings available to AT&T Common
Stock Group. Similarly, the earnings and losses related to LMG are excluded from the earnings available to
AT&T Common Stock Group.
We do not have a controlling financial interest in LMG for financial accounting purposes; therefore, our
ownership in LMG is reflected as an investment accounted for under the equity method in AT&T's
consolidated financial statements. The amounts attributable to LMG are reflected in the accompanying
consolidated financial statements as "Equity earnings (losses) from Liberty Media Group" and "Investment in
Liberty Media Group and related receivables, net".
RESTRUCTURING OF AT&T
On October 25, 2000, we announced a restructuring plan designed to fully separate or issue separately
tracked stocks intended to reflect the financial performance and economic value of each of the company's
four major operating units. Upon completion of the plan, AT&T Wireless, AT&T Broadband, AT&T Business
and AT&T Consumer wiii aii be represented by asset·based or tracking stocks.
2
TRE - 465
. As part of the first phase of the restructuring plan, we are planning an exchange offer that will give AT&T
shareowners the opportunity to exchange any portion of their AT&T common shares for shares of AT&T
Wireless Group tracking stock, subject to pro-ration. Following the exchange offer and subject to specified
conditions, AT&T plans to split-off AT&T Wireless Group from AT&T. We intend, however, to retain up to $3
billion of shares of AT&T Wireless for future sale, exchange or monetization within six months following the
split-off. We expect AT&T Wireless will become an independent, publicly·held company in mid·2001, upon
receipt of appropriate tax and other approvals.
In addition to the split-off of AT&T Wireless, we intend to fully separate or issue separate tracking stocks
to reflect the financial performance and economic value of each of our other major business units. We plan to
create and issue new classes of stock to track the financial performance and economic· value of our AT&T
Broadband unit and AT&T Consumer unit. We plan to sell some percentage of shares of the AT&T Broadband
unit in the fall of 2001. Within 12 months of such sale, we intend to completely separate AT&T Broadband
from AT&T, as an asset-based stock. The AT&T Consumer tracking stock is expected to be fully distributed to
AT&T shareowners in the second half of 2001.
AT&T expects that these transactions will be tax-free to U.S. shareholders. AT&T's restructuring plan is
complicated and involves a substantial number of steps and transactions, including obtaining various
.
conditions, such as Internal Revenue Service (IRS) rulings. In addition, future financial conditions, superior
alternatives or other factors may arise or occur that make it inadvisable to proceed with part or all of AT&T's
restructuring plan. Any or all of the elements of AT&T's restructuring plan may not occur as we currently
expect or in the timeframes that we currently contemplate, or at all. Alternative forms of restructuring, including
sales of interests in these businesses, would reduce what is available for distribution to shareowners in the
restructuring.
On November 15, 2000, we announced that our board of directors voted to split-off LMG. A new assetbased security will be issued to holders of LMG tracking stock in exchange for their LMG tracking shares. The
split-off remains subject to receipt of a favorable tax ruling from the IRS. We expect this split-off to be
completed in mid-2001.
FORWARD-LOOKING STATEMENTS.
This document may contain forward-looking statements with respect to AT&T's restructuring plan, financial
condition, results of operations, cash flows, dividends, financing plans, business strategies, operating ,
efficiencies or synergies, budgets, capital and other expenditures, network build out and upgrade, competitive
pOSitions, availability of capital, growth opportunities for existing products, benefits from new teChnologies,
availability and deployment of new technologies, plans and objectives of management, and other matters.
These forward-looking statements, including, without limitation, those relating to the future business
prospects, revenue, working capital, liquidity, capital needs, network build out, interest costs and income, are
necessarily estimates reflecting the best judgment of senior management and involve a number of risks and
uncertainties that could cause actual results to differ materially from those suggested by the forward-looking
statements. These forward-looking statements should, therefore, be considered in light of various important' ..
factors that could cause actual results to differ materially from estimates Or projections contained in the
forward-looking statements including: without limitation:
• the risks associated with the implementation of AT&T's restructuring plan, which is complicated and
involves a substantial number of different transactions each with separate conditions, any or all of which
may not occur as we currently .intend, or which may not occur in the timeframe we currently expect,
• the risks associated with each of AT&T's main business units, operating as independent entities as
opposed to as part of an integrated telecommunications provider following completion of AT&T's
restructuring plan, including the inability of these groups to rely on the financial and operational
resources of the combined company and these groups having to provide services that were previously
provided by a different part of the combined company,
3
TRE - 466
• the impact of existing and new competitors in the markets in which these groups compete, including
competitors that may offer less expensive products and services, desirable or innovative products,
technological substitutes, or have extensive resources or better financing.
• the impact of oversupply of capacity resulting from excessive deployment of network capacity,
• the ongoing global and domestic trend towards consolidation in the telecommunications industry, which
trend may have the effect of making the competitors of these entities larger and better financed and
afford these competitors with extensive resources and greater geographic reach, allowing them to
compete more effectively,
• the effects of vigorous competition in the markets in which the company operates, which may decrease
prices charged, increase churn and change customer mix, profitability and average revenue per user,
• the ability to enter into agreements to provide, and the cost of entering new markets necessary to
provide, nationwide services,
• the ability to establish a significant market presence in new geographic and service markets,
• the availability and cost of capital and the consequences of increased leverage,
• the successful execution of plans to dispose of non-strategic assets as part of an overall corporate
deleveraging plan,
o
the potential impact of NIT DoCoMo's investment in AT&T, including provisions of the agreements that
restrict AT&T Wireless Group's future operations, and provisions that may require AT&T to repurchase
DoCoMo's interest in AT&T if AT&T or AT&T Wireless Group fail to meet specified conditions,
• the impact of any unusual items resulting from ongoing evaluations of the business strategies of the
company,
o
the requirements imposed on the company or latitude allowed to competitors by the Federal
Communications Commission (FCC) or state regulatory commissions under the Telecommunications
Act of 1996 or other applicable laws and regulations,
• the risks and costs associated with the need to acquire additional wireless spectrum for current and
future services,
o
the risks associated with technological requirements, technology SUbstitution and changes and other
technological developments,
• the results of litigation filed or to be filed against the company,
• the possibility of one or more of the markets in which the company competes being impacted by
changes in political, economic or other factors, such as monetary policy, legal and regulatory changes
or other external factors over which these groups have no control, and
• the risks related to AT&T's investments in LMG and jOint ventures.
The words "estimate," "project," "intend," "expect," "believe," "plan" and similar expressions are
intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this document. Moreover, in the future, AT&T,
through its senior management, may make forward-lOOking statements about the matters described in this
document or other matters concerning AT&T.
The discussion and analysis that follows provides information management believes is relevant to an
assessment and understanding of AT&T's consolidated results of operations for the years ended
December 31, 2000, 1999 and 1998, and financial condition as of December 31, 2000 and 1999.
CONSOLIDATED RESULTS OF OPERATIONS
The comparison of 2000 results with 1999 was impacted by events, such as acquisitions and dispositions
that occurred during these two years. For example, in 2000 we acquired MediaOne and wireless properties in
the Son Francisco 8ay mea, '.vhich \";8re beth included in our 2000 results for part of the Year, but were not in
4
TRE - 467
1999 results. In 1999, we acquired TCI, the IBM Global Network (now AT&T Global Network Services, or '
AGNS) and Vanguard Cellular Systems, Inc. (Vanguard). These businesses were included in 2000 results for a
full year, but only a part of 1999 (since their respective dates of acquisition). Further, we disposed of certain
international businesses during 1999 and 2000. The'results of businesses sold in 1999 were included in 1999
results for part of the year, and were not in 2000 results, Likewise, businesses sold in 2000 were included in
1999 results for the full year and in 2000 results for part of the year.
Year-over-year comparison was also impacted by the consolidation of At Home Corp, (Excite@Home)
beginning September 1, 2000, due to corporate-governance changes which gave AT&T a controlling interest
At that time and on December 31, 2000, we had an approximate 23% economic interest and 74% voting
interest in Excite@Home. Prior to September 1, 2000, we accounted for our ownership in Excite@Home under
the equity method of accounting, which means our investment was included in "Other investments and related
advances" in the 1999 Consolidated Balance Sheet and any earnings or losses were included as a
component of "Net losses from other equity investments" in the Consolidated Statements of Income. The
consolidation of Excite@Home resulted in the inclusion of 100% of its results in each line item of AT&T's
Consolidated Balance Sheet and Consolidated Income Statement The approximate 77% we do not own is
shown in tlie 2000 Consolidated Balance Sheet within "Minority interest" and as a component of "Minority
interest income (expense)" in the 2000 Consolidated Statement of Income.
On January 5, 2000, we launched Concert, our global jOint venture with British Telecommunications pic
(BT). AT&T contributed all of its international gateway-to-gateway assets and the economic value of
approximately 270 multinational customers specifically targeted for direct sales by Concert. As a result, 2000
results do not include the revenue and expenses associated with these customers and businesses, while 1999
does, and 2000 results include our proportionate share of Concert's earnings in "Net losses from other equity
investments. "
Effective July 1, 2000, the FCC eliminated Primary Interexchange Carrier Charges (PICC or per~line
charges) that AT&T pays for residential and single-line business customers. The elimination of these per-line
charges resulted in lower access expense as well as lower revenue, since AT&T has historically billed its
customers for these charges.
The comparison of 1999 results with 1998 was also impacted by the 1999 acquisitions of TCI, AGNS and
Vanguard, since 1999 results include these businesses for part of the year. while 1998 does not include them.
This comparison is also impacted by the 1999 dispositions of international businesses, which were included in
1999 results for part of the year, but were in 1998 results for the full year.
2000
For the Years Ended December 31,
1998
1999
Dollars in millions
Business Services ...... .' ........ , .............. ,
Consumer Services ........... , ..................
Wireless Services .... , ..................... '.' .. :
Broadband , ............................ ' ......
Other and Corporate ......... , ... , ...... '.........
.
.
.
.
.
Total revenue .................. , .... ' '. . . . .. . . . ..
$28,488 $27,480
18,976
21,854
10,448
7.627
8,217
5,070
(148)
569
$24,285
22,885
5,406
$65,981
$53,223
$62,600
647
Total revenue increased 5.4%, or $3.4 billion, in 2000 compared with the prior year. Approximately $2.1
billion of the increase was due to the impact of acquisitions and the consolidation of Excite@Home, offset by
the impact of Concert, dispositions and the elimination of PICC. The remaining $1.3 billion increase was
primarily driven by a growing demand for our wireless and data' and Internet protocol (IP) products, and
outsourcing services, partially offset by continued and accelerating declines in long distance voice revenue.
We expect long distance revenue to continue to be negatively'impacted by ongoing competition and product
substitution.
Total revenue in 1999 increased $9.4 billion, or 17.6%, 'compared with 1998. Nearly three·quarters of the
increase was due to acquisitions, net of dispositions. The remaining increase was fueled by growth in
5
TRE - 468
wireless, business data, business long distance voice and outsourcing revenue, partially offset by the
continued decline of consumer long distance voice revenue.
Revenue by segment is discussed in greater detail in the segment results section.
2000
For the Years Ended December 31,
1999
1998
Dollars In millions
$17,587
Costs of services and products
$14,594
$10,495
Costs of services and products include the costs of operating and maintaining our networks, costs to
support our outsourcing contracts, fees paid to other wireless carriers for the use of their networks (offnetwork roaming), programming and licensing costs for cable services, costs of Wireless handsets sold, the
provision for uncollectible receivables and other service-related costs.
These costs increased $3.0 billion, or 20.5%, in 2000 compared with 1999. Nearly $2.1 billion of the
increase was due to acquisitions and the impact of consolidating Excite@Home, net of the impact of Concert
and divestments of international businesses. The higher costs associated with our growing wireless subscriber
base and wireless network as well as new outsourcing contracts increased expenses by approximately $1.5
billion. The higher wireless expenses primarily related to higher costs of handsets sold, due to a 53.5%
increase in gross subscriber additions in 2000 compared with 1999. Expenses also increased due to higher
video-programming costs principally due to rate increases, and higher costs associated with new broadband
services of approximately $0.3 billion. These increases were partially offset by approximately $0.9 billion of
costs savings from continued cost control initiatives and a higher pension credit in 2000, primarily driven by a
higher pension trust asset base, resulting from increased investment returns.
Costs of services and products rose $4.1 billion, or 39.1 %, in 1999 compared with 1998, primarily due to
acquisitions, net of dispositions, which accounted for approximately $3.7 billion of the increase. The higher
costs associated with our growing wireless subscriber base as well as new outsourcing contracts increased
expenses by approximately $1.5 billion. Partially offsetting the 1999 increases were network cost-control
initiatives of approximately $0.4 billion, and approximately $0.3 billion of lower expenses in Business Services
related to per-call compensation expense, provision for uncollectible receivables and gross receipts and
property taxes.
2000
For the Years Ended Oecember 31,
1999
1998
Dollars in millions
Access and other connection. . . . . . . . . . . . . . . . . . . . . . ..
$13,518
$14,686
$15,328
Access and other connection expenses decreased 8.0%, to $13.5 billion in 2000, compared with
$14.7 billion in 1999. Included within access and other connection expenses are costs that we pay to connect
domestic calls on the facilities of other service providers. Mandated reductions in per-minute access costs and
decreased per-line charges resulted in lower costs of approximately $1.5 billion. Also contributing to the
decrease was more efficient network usage. These decreases were partially offset by approximately $0.7
billion of higher costs due to volume increases, and $0.5 billion as a result of higher Universal Service Fund
contributions. Since most of these charges are passed through to the customer, the per-minute access-rate
and per-line charge reductions and the increased Universal Service Fund contributions have generally resulted
in a corresponding impact on revenue.
Costs paid to telephone companies outside of the United States to connect calls made to countries
outside of the United States (international settlements) are also included within access and other connection
expenses. These costs decreased approximately $0.5 billion in 2000, as result of the commencement of
operations of Concert. Concert now incurs most of our international settlements as well as earns most of our
foreign-billed revenue, previously incurred and earned directly by AT&T. In 2000, Concert billed us a net
expense composed of international settlement (interconnection) expense and foreign-billed revenue. The
amount charged by Concert in 2000 was lower than interconnection expense incurred in 1999, since AT&T
recorded these transactions as revenue and expense, as applicable. Partially offsetting the decline were costs
!ncU!Ted related to Concert products that ,6.T&T now sells to its customers.
6
TRE - 469
Access and other connection expenses declined $0.6 billion, or 4.2%, in 1999 compared with the prior
year. This decline resulted from $0.9 billion of mandated reductions in per-minute access rates in 1999 and
1998, and $0.6 billion of lower international settlement rates resulting from our negotiations with 'international
carriers, Additionally, we continue to manage these costs through more efficient network usage. These
reductions were partially offset by $0.8 billion of higher costs due to volume growth, and $0.3 billion as a
result of. increased per-line charges and Universal Service Fund contributions.
2000
For the Years Ended December 31,
1999
1998
Dollars in millions
Selling, general and administrative. . . . .. . . . . . . . . . . . . ..
$13,303$13,516
$12,770
Selling, general and administrative (SG&A) expenses decreased $0.2 billion, or 1.6%, in 2000 compared
with 1999. Approximately $2.0 billion of the decrease was due to savings from continued cost-control
initiatives and a higher pension credit in 2000, primarily driven by a higher pension trust asset base, resulting
from increased investment returns. Largely offsetting this decrease was more than $1.4 billion of higher
expenses associated with our growing wireless and broadband businesses, and nearly $0.7 billion of
expenses associated with acquisitions and the consolidation of Excite@Home, net of the impact of Concert
and dispositions.,
SG&A expenses increased $0.7 billion, or 5.8%, in 1999 compared with 1998. This increase was primarily
due to acquisitions, net of dispositions, which resulted in an increase in SG&A expenses of approximately $1.4
billion. Also contributing to the increase was approximately $0.4 billion of higher costs to support our growing
wireless subscriber base. Partially offsetting these 'increases were our continued efforts to control costs on a
companywide basis, which resulted in lower SG&A expenses of approximately $0.9 billion, including lower
spending for consumer long distance acquisition-programs.
'
2000
For the Years Ended December 31,
1999
1998
Dollars in millions
Depreciation and other amortization
$7,274
$6,138
$4,378
Depreciation and other amortization expenses rose $1.1 billion. or 18.5%. in 2000 compared with 1999
and increased $1.8 billion, or 40.2%, in 1999 compared with 1998. Approximately one-half of the increase in
both years was due to acquisitions and the consolidation of Excite@Home, net of dispositions and the impact
of Concert, as applicable. The remaining increase was primarily due to a higher asset base resulting from
continued infrastructure investment. Total capital expenditures for 2000, 1999 and 1998 were $14.6 billion,
$13.5 billion and $8.0 billion, respectively. We continue to focus the vast majority of our capital spending on
our growth businesses of broadband, wireless, data and IP and local.
2000
,---
For the Years Ended December 31,
' 1999
1998
Dollars In millions
Amortization of goodwill, franchise costs and other purchased
intangibles .......................................
$2,993
$1,301, $251
, Amortization of goodwill, franchise costs and other purchased intangibles increased $1.7 billion, or
130.1 %, in 2000 compared with the prior year. This increase was largely attributable to the consolidation of
Excite@Home, as well as acquisitions, primarily MediaOne and TCI. Franchise costs represent the value
attributable to agreements with local authorities that allow access to homes in Broadband's service areas.
Other purchased intangibles arising from business combinations primarily included customer relationships and
licenses: '
,
,
Amortization of goodwill, franchise costs and other purchased intangibles increased $1.1 billion in 1999
compared with 1998 due primarily to the, acquisition of TCI and, to a lesser extent. AGNS.
As a result of our evaluation of recent changes in our industry and the views of regulatory authorities,
AT&T expects that the amortization period for all licensing costs, franchise costs, and goodwill associated with
newly acquired wireless, telecommunications, and cable operations will not exceed 25 years.
7
TRE - 470
,
2000
1999
1998
$7,029
$1,506
$2,514
--Dollars In millions
For the Years Ended Oecember 31 1
,
'Net restructuring and other charges ,......... : ..... : ..... .
During 2000, we recorded $7.0 billion of net restructuring and other charges, which had an approximate
$0.90 earnings per diluted share impact to the AT&T Common Stock Group. The 2000 charge included $6.2
billion of asset impairment charges related to Excite@Home, $759 million for restructuring and exit costs
associated with AT&T's initiative to reduce costs, and $91 million related to the gover.nment-mandated
disposition of AT&T Communications (U.K.) Ltd., which would have competed directly with Concert.
The asset impairment charges related to Excite@Home resulted from the deterioration of the market
conditions and market valuations of Internet-related companies during the fourth quarter of 2000, which '
caused Excite@Home to conclude that intangible assets related to their acquisitions of Internet-related
companies may not be recoverable. Accordingly, Excite@Home conducted a detailed assessment of the
recoverability of the carrying amounts of acquired intangible assets. This assessment resulted in a
determination that certain acquired intangible assets, including goodwill, related to these acquisitions,
including Excite, were impaired as of December 31, 2000. As a result, Excite@Home recorded impairment
charges of $4.6 billion in Decernber 2000, representing the excess of the carrying amount of the impaired
assets over their fair value.
The impairment was allocated to each asset group based on a comparison of carrying values and fair '
values. The impairment write-down within each asset group was allocated first to goodwill, and if goodwill was
reduced to zero, to identifiable intangible assets in proportion to carrying values. '
Since we own approximately 23% of Excite@Home, 77% of the charge recorded by Excite@Home was
not included as a reduction to AT&T's net income, but rather was eliminated in our 2000 Consolidated
Statement of Income as "Minority interest income (expense)."
Also as a result of the foregoing, AT&T recorded a goodwill and acquisition-related impairment charge of
$1.6 billion associated with the acquisition of our investment in Excite@Home. The write-down of our
investment to fair value was determined utilizing discounted expected future cash flows.
The $759 million charge for restructuring and exit plans was primarily due to headcount reductions,
mainly in network operations and Business Services, including the consolidation of customer-care and call
centers, as well as synergies created by the MediaOne merger.
Included in exit costs was $503 million of cash termination benefits associated with the separation of
approximately 7,300 employees as part of voluntary and involuntary termination plans. Approxirnately one-half
of the separations were management employees and one-half were non management employees.
Approximatety 6,700 employee separations were related to involuntary terminations and approximately 600 to
voluntary terminations.
We also recorded $62 rnillion of network lease and other contract termination costs associated with
penalties incurred as part of notifying vendors of the termination of these contracts during the year, and net
losses of $32 million related to the disposition of facilities primarily due to synergies created by the MediaOne
merger. '., '
Also included in restructuring and exit costs in 2000 was $144 million of benefit plan curtailment costs
associated with employee separations as part of these exit plans. Further, we recorded an asset impairment
charge of $18 million related to the write-down of unrecoverable assets in certain businesses where the
carrying value was no longer supported by estimated future cash flows.
The 2000 restructuring initiatives are projected to yield cash savings of approximately $690 rnillion per
year, as well as EBIT (earnings before interest and taxes, including pretax minority interest and net pretax
losses from other equity investments) savings of approxirnately $700 million per year. We expect increased
spending in growth businesses will largely offset these cash and EBIT savings. The EBIT savings, primarily
attributable to reduced personnel-related expenses, will be realized in SG&A expenses and costs of services
and products.
8
TRE - 471
During 1999, we recorded $1.5 billion of net restructuring and other charges, which had an approximate
$0.37 earnings per diluted share impact to the AT&T Common Stock Group.
A $594 million in-process research and development charge was recorded reflecting the estimated fair
value of research and development projects at TCI, as of the date of the acquisition, which had not yet
reached technological feasibility or had no alternative future use. The projects identified related to efforts to
offer voice over Ip, product-integration efforts for advanced set-top devices, cost-savings efforts for broadbandtelephony implementation, and in-process research and development related to Excite@Home. We estimated
the fair valu·e of in-process research and development for each project using an income approach, which was.
adjusted to allocate fair value based on the project's percentage of completion. Under this approach, the
present value of the antiCipated future benefits of the projects was determined using a discount rate of 17%.
For each project, the resulting net present value was multiplied by a percentage of completion based on effort
expended to date versus projected costs to complete.
The charge associated with voice-over-IP technology, which allows voice telephony traffic to be digitized
and transmitted in IP data packets, was $225 million as of the date of acquisition. Current voice-over-IP
equipment does not yet support many of the features required to connect customer premises equipment to
traditional phone networks. Further technical development is also needed to ensure voice quality that is
comparable to conventional circuit-switched telephony and to reduce the power consumption of the IPtelephony equipment. We started testing IP-telephony equipment in the field in late-2000 and .will continue
tests throughout 2001.
The charge associated with product-integration efforts for advanced set-top devices, which will enable us
to offer next-generation digital services, was $114 million as of the acquisition date. The associated technology
consists of the dElVelopment and integration work needed to provide a suite of software tools to run on the
digital set-top box hardware platform. It is anticipated that field trials will begin in late-2001 for next-generation
digital services.
The charge associated with cost-savings efforts for broadband-telephony implementation was $101 million
as of the date of acquisition. Telephony cost reductions primarily consist of cost savings from the development
of a "iine of power switch," which allows us to cost effectively provide power for customer telephony
equipment through the cable plant. This device will allow us to provide line-powered telephony without
burying the cable line to each house. Trials related to our telephony cost reductions are complete, and
implementation has begun in certain markets.
Additio~ally, the in-process research and development charge related to Excite@Home was valued at
$154 million. This charge related to projects to allow for self-provisioning of devices and the development of
next-generation client software, network and back-office infrastructure to enable a variety of network devices
beyond personal computers and improved design for the regional data centers' infrastructure.
Although there are technological issues to overcome to successfully complete the acquired in-process
research and development, we expect successful completion. We estimate the costs to complete the identified
projects will not have a material impact on our results of operations. If, however, we are unable to establish
technological feasibility and produce commercially viable products/services, antiCipated incremental future
cash flows attributable to expected profits from such new products/services may not be realized.
A $531 million asset impairment charge was recorded in 1999 associated with the planned disposal of
certain wireless communications equipment resulting from a program to increase the capacity and operating
efficiency of our wireless network. As part of a multivendor program, contracts have been executed with select
vendors to replace significant portions of our wireless infrastructure equipment in the western United States
and the metropolitan New York markets. The program is intended to provide Wireless Services with the
newest technology available and allow us to evolve to new, next-generation digital technology, which is
designed to provide high-speed data capabilities. Since the assets will remain in service from the date of the
decision to dispose of these assets to the disposal date, the remaining net book value of the assets will be
depreCiated over this period.
Also in 1999, a $145 million charge for restructuring and exit costs was recorded as part of AT&T's
initiative to reduce costs. The restructuring and exit plans primarily focused on the maximization of synergies
through headcount reductions in Business Services and network operations, including the consolidation of
customer-care and call centers.
9
TRE - 472
'"Include,d in exit costs was $142 million of cash termination benefits associated with the separation of
approximately 2,800 employees as part of voluntary and involuntary termination plans. Approximately one-half
of the separations were management employees and one-half were non management employees.
Approximately 1,700 employee separations were related to involuntary terminations and approximately 1,100, '
to voluntary terminations.
The 1999 restructuring initiatives are projected to yield cash savings of approximately $250 million per
year. This restructuring yielded EBIT savings of approximately $200 million in 2000, and is expected to save
nearly $400 million per year thereaftecWe expect increased spending in groW1h businesses will largely offset
these cash and EBIT savings. The EBIT savings, primarily attributable to reduced personnel-related expenses,
will be realized in SG&A expenses and costs of services and products.
We also recorded net losses of $307 million related to the government-mandated disposition of certain
international businesses that would have competed directly with Concert, and $50 million related to a
contribution agreement Broadband entered into with Phoenixstar, Inc. That agreement requires Broadband to
satisfy certain liabilities owed by Phoenixstar and its subsidiaries. The remaining obligation under this
contribution agreement and an agreement that MediaOne had is $57 million, which was fully accrued for at
December 31, 2000. In addition, we recorded benefits of $121 million related to the settlement of pension
obligations for former employees who accepted AT&T's 1998 vOluntary retirement incentive program (VRIP)
offer.
During 1998, we recorded $2.5 billion of net restructuring and other charges, which had an approximate
$0.59 earnings per diluted share impact to the AT&T Common Stock Group. The bulk of the charge was
associated with our overall cost-reduction program and the approximately 15,300 management employees
who accepted the VRIP offer. A restructuring charge of $2,724 million was composed of $2,254 million and
$169 million for pension and postretirement special-termination benefits, respectively, $263 million of benefit
plan curtailment losses and $38 million of other administrative costs. We also recorded charges of $125
million for related facility costs and $150 million for executive-separation costs. These charges were partially
offset by benefits of $940 million as we settled pension benefit obligations for 13,700 of the total VRIP
employees. In addition, the VRIP charges were partially offset by the reversal of $256 million of 1995 business
restructuring reserves primarily resulting from the overlap of VRIP on certain 1995 projects.
Also included in the 1998 net restructuring and other charges were asset impairment charges totaling
$718 million, of which $633 million was related to our decision not to pursue Total Service Resale (TSR) as a
local-service strategy. We also recorded an $85 million asset impairment charge related to the write-down of
unrecoverable assets in certain international operations where the carrying value was no longer supported by
future cash flows. This charge was made in connection with the review of certain operations that would have
competed directly with Concert.
Additionally, $85 million of merger-related expenses were recorded in 1998 in connection with the Teleport
Communications Group Inc. (TCG) merger, which was accounted for as a pooling of interests. Partially
offsetting these' charges was a $92 million reversal of the 1995 restructuring reserve. This reversal reflected
reserves no longer deemed necessary. The reversal primarily included separation costs attributed to projects
completed at a cost lower than originally anticipated. Consistent with the three-year plan, the 1995
restructuring initiatives were substantially completed by the end of 1998.
2000
1999
1998
------Dollars in millions
For the Years Ended December 31,
, Operating income ............... '.................. .
$4,277 '$10,859
$7,487
Operating income decreased $6.6 billion, or 60.6%, in 2000 compared with 1999. The decrease was
primarily due to higher net restructuring and other charges of $5.5 billion. Also contributing to the decrease
was the impact of the acquisition of MediaOne and the conSOlidation of Excite@Home, which lowered
operating income by $1.5 billion. A majority of the impact of operating losses and the restructuring charge
generated by Excite@Home was offset in minority interest income (expense), reflecting the approximate 77%
of Exclte@Home 'vo.;8 do not O'v"Yn. PartiaHy offSetting theSe deci6as6s . . vei6 cost-control initiatives and a larger
10
TRE - 473
pension credit associated with our mature long distance businesses and related support groups, partially
offset by lower long distance revenue.
'.
: Operating income rose $3.4 billion, or 45.0%, in 1999 compared with 199B. The increase was driven by
approximately $2.3 billion of operating income improvements in Business Services and Consumer Services,
reflecting operating expense efficiencies. Also contributing to the increase was $1.0 billion of lower net
restructuring and other charges.
1999
1998
2000
Dollars In millions
For the Years,Ended December 31,
Other income ...................................... .
$1,514
$931
$1,281
Other income increased $0.6 billion, or 62.4%, in 2000 compared with 1999. This increase was primarily
due to greater net gains on sales of businesses and investments of approximately $1.0 billion, and higher
investment-related income of approximately $0.3 billion. The higher gains on sales were driven by significant
gains associated with the swap of cable properties with Comcast Corporation (Comcast) and Cox
Communications, Inc. (Cox), the sale of our investment in Lenfest Communications, Inc. (Lenfest) and
Celumovil, and a gain recorded as a result of the merger of TeleCorp PCS, Inc. (TeleCorp) and Tritel, Inc.
(Trite I) and related transactions. These gains aggregated approximately $1.0 billion and had an approximate
$0.29 earnings per diluted share impact to the AT&T Common Stock Group. In 1999, we recorded significant
gains associated with the sale of our Language Line Services business, a portion of our ownership interest in
AT&T Canada as well as our investment in Wood·TV. These gains aggregated approximately $0.4 billion and
had an approximate $0.07 earnings per diluted share impact to the AT&T Common Stock Group. Offsetting
the increases to other income in 2000 was an approximate $0.5 billion charge reflecting the increase in the fair
value of put options held by Comcast and Cox related to Excite@Home stock, and approximately $0.2 billion
of higher investment impairment charges.
Other income decreased $0.4 billion, or 27.3%, in 1999 compared with 1998. The decrease was due to
lower net gains on sales of businesses and investments of approximately $0.3 billion as well as lower
investment-related income of approximately $0.2 billion. In 1999, we recorded significant gains associated with
the sale of our Language Line Services business, a portion of our ownership interest in AT&T Canada as well
as our investment in Wood-TV. These gains aggregated approximately $0.4 billion and had an approximate
$0.07 earnings per diluted share impact to the AT&T Common Stock Group. In 199B, we recorded significant
gains associated with the sale of AT&T Solutions Customer Care, LIN Television Corp. and SmarTone
Telecommunications Holdings Limited. These gains aggregated approximately $0.8 billion and had an
approximate $0.18 earnings per diluted share impact to the AT&T Common Stock Group.
For the Years Ended December 31,
2000
1998
-1999
- Dollars in millions
Interest expense .................................... .
$3,183
$1,765
$427
Interest expense increased 80.3%, or $1.4 billion, in 2000 compared with 1999. The increase was
primarily due to a higher average debt balance as a result of our June 2000 acquisition of MediaOne,
including outstanding debt of MediaOne and debt issued to fund the MediaOne acquisition, and our
March 1999 acquisition of TCI, partially offset by higher capitalized interest.
Interest expense increased $1.3 billion in 1999 compared with 1998, due to a higher average debt
balance associated with our acquisitions, including debt outstanding of TCI at the date of acquisition.
2000
1999
1998
Dollars in millions
For the Years Ended December 31,
Provision for income taxes " ......................... .
$3,342
$3,695
$3,049
The effective income tax rate is the proVision for income taxes as a percent of income from continuing
operations before income taxes. The effective income tax rate was 128.1 % in 2000, 36.9% in 1999 and 36.6%
in 1998. In 2000, the effective tax rate was negatively impacted by Excite@Home, which is unable to record
tax benefits associated with its pretax losses. Therefore the $4.6 billion restructuring charges taken by
11
TRE - 474
Excite@Home in 2000 had no associated tax benefit. The 2000 effective tax rate was positively impacted by a
tax-free gain resulting from an exchange of AT&T stock for an entity owning certain cable systems and other
assets with Cox and the benefit of the write-off of the related deferred tax liability. The 1999 effective tax rate
was negatively impacted by a non-tax-deductible research and development charge, but positively impacted
by a change in the net operating loss utilization tax rules that resulted in a reduction in the valuation
~
allowance and the income tax provision.
.
....
2000
For the Years Ended December 31,
1999
"
1998
Collars in millions
$4,120
Minority interest income (expense)
$(115)
$21
Minority interest income (expense), which is recorded net of income taxes, represents an adjustment to
AT&T's income to reflect the less than 100% ownership of consolidated subsidiaries as well as dividends on
preferred stock issued by subsidiaries of AT&T. The $4.2 billion increase in minority interest in 2000 resulted
from the consolidation of Excite@Home effective September 1, 2000. The minority interest income in 2000
primarily reflects losses generated by Excite@Home, including the goodwill impairment charge, that were
attributable to the approximate 77% of Excite@Home not owned by AT&T. The decrease in minority interest in
1999 compared with 1998 was primarily due to dividends on preferred securities issued by a subsidiary trust
of AT&T in 1999.
2000
1999
1998
Dollars in millions
For the Years Ended December 31,
Equity earnings (losses) from Liberty Media Group
$1,488
$(2,022)
Equity earnings from LMG, which are recorded net of income taxes, were $1.5 billion in 2000, compared
with losses of $2.0 billion in 1999. The increase was primarily due to gains on dispositions, including gains
associated with the mergers of various companies that LMG had investments in. Gains were recorded for the
difference between the carrying value of LMG's interest in the acquired company and the fair value of
securities received in the merger. In addition, lower stock compensation expense in 2000 compared with 1999
contributed to the increase. These were partially offset by impairment charges recorded on LMG's investments
to reflect other than temporary declines in value and higher losses relating to LMG's equity affiliates.
2000
For the Vears Ended December 31,
1999
1998
Dollars in millions
$205
Net losses from other equity investments
$765
$78
~
Net losses from other equity investments, which are. recorded net of income taxes, were $0.2 billion in
2000, a 73.2% improvement compared with 1999. This improvement was primarily a result of the redemption
of our investment in AB Cellular which resulted in the distribution of wireless properties in the Los Angeles
area to AT&T, which caused AB Cellular to record a gain on the distribution. Our pro rata share of this gain
was approximately $0.4 billion. In addition, in 2000, earnings from our investment in Cablevision Systems
Corp. (Cablevision) were approximately $0.2 billion higher than 1999 due to gains from cable-system sales.
Offsetting these increases were losses from our stake in Time Warner Entertainment Company, L.P. (TWE)
which we acquired in connection with the MediaOne merger and greater equity losses from Excite@Home,
which aggregated approximately $0.1 billion.
Net losses from equity investments were $0.8 billion in 1999 compared with $78 million in 1998, primarily
due to losses we recorded on investments we acquired through TCI, largely Cablevision and Excite@Home.
12
TRE - 475
2000
For the Years Ended December 31,
1999
1998
(Dollars In millions, except
per share amounts)
AT&T Common Stock Group:
Income from continuing operations
Earnings from continuing operations per share:
Basic ... , ..... , .................. " . , ......... .
Diluted ........................................ .
AT&T Wireless Group:
Income ............ '.............................. .
Earnings per share:
Basic and diluted ............... : .................. .
$3,105
$ 5,450
$5,235
0.89
0.88
1.77
1.74
1.96
1.94
$
76
$
$
0.21
Liberty Media Group:
Income (loss) ....................................... $1,488
Earnings (loss) per share:
Basic and diluted ....................... , ..... , ..... .
0.58
$(2,022) $
(0.80)
Earnings per diluted share (EPS) attributable to the AT&T Common Stock Group were $0.88 in 2000
compared with $1.74 in 1999, a decrease of 49.4%. The decrease was primarily due to higher restructuring
and asset impairment charges and the MediaOne acquisition, including the impact of shares issued, operating
losses of MediaOne and additional interest expense. Also contributing to the decrease was the impact of
Excite@Home, including the mark-to-market adjustment related to the put options held by Com cast and Cox.
These were partially offset by lower losses from equity investments and an increase in other income, primarily
associated with higher net gains on sales of businesses and investments, and higher investment-related
income. Also impacting EPS was higher operating income associated with our mature long distance
businesses.
EPS from continuing operations attributable to the AT&T Common Stock Group on a diluted basis
declined 10.3% in 1999, to $1.74, compared with 1998. The decline was primarily due to the impact of the TCI
and AGNS acqUisitions, including the impact of shares issued and equity losses of Excite@Home and
Cablevision. Partially offsetting these deClines were increased income from the remaining operations due to
revenue growth and operating expense efficiencies, as well as lower net restructuring and other charges.
EPS for Liberty Media Group was $0.58 in 2000, compared with a loss of $0.80 per share for 1999. The
increase in EPS was primarily due to gains on dispositions, including gains associated with the mergers of
various companies that LMG had investments in. Gains were recorded for the difference between the carrying
value of LMG's interest in the acquired company and the fair value of securities received in the merger. In
addition, lower stock compensation expense in 2000 compared with 1999 contributed to the increase. These
were partially offset by impairment charges recorded on LMG's investments to reflect other than temporary
declines in value and higher losses relating to LMG's equity affiliates.
Discontinued Operations'
Pursuant to Accounting Principles Board Opinion No. 30 "Reporting the Results of Operations-Reporting
the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions," the consolidated financial statements of AT&T reflect the disposition of AT&T
Universal Card Services (UCS), which was sold on April 2, 1998, as discontinued operations. Accordingly, the
revenue, costs and expenses, and cash flows of UCS have been excluded from the respective captions in the
1998 Consolidated Statement of Income and Consolidated Statement of Cash Flows, and have been reported
through the April 2, 1998 date of disposition as "Income from discontinued operations," net of applicable
income taxes; and as "Net cash provided by discontinued operations." The gain associated with the sale of
UCS is recorded as "Gain on sale of discontinued operations," net of applicable income taxes.
13
TRE - 476
Extraordinary Items
In August 1998, AT&T extinguished approximately $1.0 billion of TCG's debt. The $217 million pretax loss
on the early extinguishment of debt was recorded as an extraordinary loss. The after-tax impact was $137
million, or $0.05 per diluted share.
.
SEGMENT RESULTS
In support of the services we provided in 2000, we segment our results by the business units that support
our primary lines of business: Business Services, Consumer Services, Wireless Services and Broadband. The
balance of AT&T's operations, excluding LMG, is included in a Corporate and Other category. Although not a
segment, we also discuss the results of LMG.
.
The discussion of segment results includes revenue; EBIT (earnings before interest and taxes, including
pretax minority interest and net pretax losses of other equity investments); EBITDA [EBIT plus depreciation,
amortization and minority interest income (expense) other than Excite@Home]; total assets, and capital
additions. The discussion of EBITDA for Wireless Services and Broadband is modified to exclude other
income and net losses from equity investments. Total assets for each segment generally include all assets,
except intercompany receivables. However, our Wireless Services segment included intercompany receivables
from AT&T and the related interest income since these assets relate to the results of the AT&T Wireless Group
tracked business. Prepaid pension assets and corporate-owned or leased real estate are generally held at the
corporate level, and therefore are included in the Corporate and Other group. Shared network assets are
allocated to the segments and reallocated each January, based on two years of volumes. Capital additions for
each segment include capital expenditures for property, plant and equipment, acquisitions of licenses,
additions to nonconsolidated investments, increases in franchise costs and additions to internal-use software.
EBIT is the primary measure used by AT&T's chief operating decision makers to measure AT&T's
operating results and to measure segment profitability and performance. AT&T calculates EBIT as operating
income plus net pretax losses from equity investments, pretax minority interest income (expense) and other
income. In addition, management also uses EBITDA as a measure of segment profitability and performance,
and is defined as EBIT, excluding minority interest income (expense) other than Excite@Home, plus
depreciation and amortization. Interest and taxes are not factored into the segment profitability measure used
by the chief operating decision makers; therefore, trends for these items are discussed on a consolidated
basis. Management believes EBIT is meaningful to investors because it provides analysis of operating results
using the same measures used by AT&T's chief operating decision makers and provides a return on total
capitalization measure. We believe EBITDA is meaningful to investors as a measure of each segment's
liquidity consistent with the measure utilized by our chief operating deCision makers. In addition, we believe
that both EBIT and EBITDA allow investors a means to evaluate the financial results of each segment in
relation to total AT&T. EBIT for AT&T was $9.4 billion, $10.5 billion and $8.7 billion for the years ended
December 31,2000,1999 and 1998, respectively. EBITDA for AT&T was $19.8 billion, $18.6 billion and $13.4
billion for the years ended December 31, 2000, 1999 and 1998, respectively. Our calculation of EBIT and
EBITDA mayor may not be consistent with the calculation of these measures by other public companies.
EBIT and EBITDA should not be viewed by investors as an alternative to generally accepted accounting
principles (GAAP) measures of income as a measure of periormance or to cash flows from operating,
investing and financing activities as a measure of liquidity. In addition, EBITDA does not take into account.
changes in certain assets and liabilities as well as interest and taXes which can affect cash flow.
Reflecting the dynamics of our business, we continually review our management model and structure and
make adjustments accordingly.
BUSINESS SERVICES
Our Business Services segment offers a variety of global communications services, including long
distance, local, and data and IP networking to small and medium-sized businesses, large domestiC and
multinational businesses and government agencies. Business Services is also a provider of voice, data and IP
transport to service rese!!ers '...... ho!csnle services).
14
TRE - 477
Business Services includes AT&T Solutions, the company's professional-services outsourcing business,
which provides seamless solutions that maximize the competitive advantage of networking-based electronic
applications for global clients. AT&T Solutions also provides e-infrastructure and high-availability services to
enterprise clients, and manages AT&T's unified global network.
2000
For the Years Ended December 31,
External revenue ................................
Internal revenue ................ : ...............
Total revenue ..................................
EBIT .: ..................... '.................
EBITDA ......................................
Capital additions ................................
.
.
.
.
,
.
At December 31,
Total assets ................................... .
REVENUE
1999
1998
Dollars In millions
$27,691
797
28,488
6,548
10,260
6,223
$26,749
731
27,480
6,136
9,488
7,511
2000
1999
$34,804
$32,010
$23,807
478
24,285
4,994
7,548
6,130
'
In 2000, Business Services revenue grew $1.0 billion, or 3.7%, compared with 1999. Approximately $004
billion of the increase was due to the impact of acquisitions, partially offset by the formation of Concert.
Strength in data and IP services as well as growth in our outsourcing business contributed $1.8 billion to the
increase. This growth, however, was offset by an approximate $0.9 billion decline in long distance voice
services as a result of continued pricing pressures in the industry.
Revenue in 1999 grew $3.2 billion, or 13.2%. The acquisition of AGNS contributed approximately $1.1
billion to the growth. Data, IP and outsourcing services grew approximately $1.5 billion in 1999 compared with
1998, while long distance voice services and local services contributed approximately $0.6 billion to the
revenue increase.
Data services, which represent the transportation of data. rather than voice, along our network, was
impacted by acquisitions and the formation of Concert. Excluding these impacts, data services grew at a highteens percentage rate in 2000. Growth was led by the continued strength of frame relay services; IP services,
which include IP-connectivity services and virtual private network (VPN) services; and high-speed private-line
services. Excluding the impact of AGNS, data services grew at a high-teens percentage rate in 1999, led by
strength in frame relay and high-speed private-line services.
AT&T Solutions outsourcing revenue grew 47.9% in 2000 and 146.0% in 1999. More than one-half of the
2000 growth and approximately 65% of the 1999 growth was driven by our acquisition of AGNS. The
remaining growth in both years was primarily due to growth from new contract signings and add-on business
from existing clients.
Excluding the impact of Concert, long distance voice services revenue declined at a mid single-digit
percentage rate in 2000 due to a declining average price per minute reflecting the competitive forces within
the industry which are expected to continue. Partially offsetting this decline was a high single-digit percentage
growth rate in minutes. In 1999, long distance voice revenue grew at a low single-digit percentage rate, as
volumes grew at a high-teens percentage rate, which was largely offset by a declining average rate per
minute.
Local voice services revenue grew nearly 20% in 2000 and more than 50% in 1999. During 2000, AT&T
added more than 867,000 access lines, with the total reaching nearly 2.3 million at the end of the year. During
1999, AT&T added more than 719,000 access lines. Access lines enable AT&T to provide local service to
customers by allowing direct connection from customer equipment to the AT&T network. AT&T serves more
than 6,000 buildings on-network (buildings where AT&T owns the fiber that runs into the building),
representing an increase of approxim8.tely 3,5% over 1999. At the end of 1999, AT&T served just over 5,800
buildings on-network compared with approximately 5,200 buildings at the end of 1998.
15
TRE - 478
. Business Services internal revenue increased $66 million, or 9.1 %, in 2000 and $253 million, or 52.8%, in
1999. The increase in 2000 was the result of greater sales of business long distance services to other AT&T
units that resell such services to their external customers, primarily' Broadband and Wireless Services. The
increase in 2000 was partially offset by a decline in sales related to international businesses divested. In 1999,
the increase in internal revenue was primarily due to greater sales of long distance services to Wireless
Services.'
. ' ..
. . '
. --
EBIT/EBITDA
EBIT improved $0.4 billion, or 6.7%, and EBITDA improved $0.8 billion, or 8.1 %, in 2000 compared with
1999. This improvement reflects im increase in revenue and lower costs as a result of our continued costcontrol efforts, partially offset by the formation of Concert and the acquisition of AGNS. Additionally, the EBIT
increase was partially offset by an increase in depreciation and amortization expense in 2000 compared with
1999 primarily due to a higher network asset base,
In 1999, EBIT improved $1,1 billion, or 22.9%, and EBITDA improved $1.9 billion, or 25,7%, compared
with 1998. These increases were driven by revenue growth combined with margin improvement resulting from
ongoing cost-control initiatives. The increase in EBIT was offset somewhat by increased depreciation and.
amortization expenses resulting from increased. capital expe~diture~aimed at data, IP and local services.
OTHER ITEMS
..
"' .
Capital additions decreased $1.3 billi.on in 2000, and increased $1.4 billion in 1999. In 2000, the decrease
was a result of lower spending for our long distance network (including the data network). In 1999, the
increase was primarily due to additional spending for the build out of our local services SONET transport
.....
..,
network.
~
...
'
,.
Total assets increased $2.8 billion, or 8,.1%, at December,31, 2000, compared with December 31, 1999.
The increase was primarily due to net increases in property, plant and equipment as a result of capital
additions, and a higher accounts receivable balance,
.
t.
CONSUMER SERVICES
Our Consumer Services' segment provides residential customers 'with a variety of any-distance
communications services, including long distance, local toll (intrastate calls outside the immediate local area)
and Internet access, In addition, Consumer Services provides transaction services, such as prepaid calling
card and operator-handled calling services. Local phone serVice is' also provided in certain areas.
2000
For the Years Ended December 31,
Revenue ...................................... .
EBIT ........................................ .
EBITDA ...: .............. :.- ....... ,'.. : .......... .
Capital additions .. : ....... .' ............ , ..•......
At December 31,
1999
1998
Dollars in millions
$18,976
7,090
7,650
302
$21,854
7,909
8,692
656
2000
1999
Total assets ... .- .............. .- ................. . . $ 4,801
$22,885
6,570
7,263
459
$ 6,279
REVENUE
. Consumer Services revenue declined 13.2%, or $2.9 billion, in 2000 compared with 1999. Approximately .
$0.9 billion of the decline was due to the elimination of per-line charges in 2000 and the impact of Concen.
The remainder of the decline was primarily due to a decline in traditional voice services, such as Domestic
Dial 1, reflecting the ongoing competitive nature of the consumer long distance industry, which has resulted in
priCing pressures and a loss of market share. Also negatively impacting revenue was product substitution and
market migration away from direct-dial wireline and higher-priced calling-card services to the rapidly growing
16
TRE - 479
wireless services and lower-priceq prepaid-card services. As a result, calling volumes declined at a mid singledigit percentage rate. in 2000. We expect competition and product substitution to continue to negatively impact
Consumer Services revenue.
In August 1999, we introduced AT&T One Rate, which allows customers to make long distance calls, 24
hours a day, seven days a week, for the same rate. These One Rate offers continue to be well received in the
market with more than 12 million customers enrolled since the plan's introduction. In addition, AT&T has been
successful in packaging services in the consumer market by giving customers the option of intraLATA service
with its One Rate offers: More than 60% of the customers enrolled in One Rate have chosen AT&T as their
intraLATA provider.
AT&T's any distance New York Local One Rate offer, which combines both local and long distance
service, has experienced high customer acceptance. AT&T ended the year with nearly 760,000 customers
'.
'_ ',' ':., .
. c. , '.
•
under this plan.
:. In 1999, Consumer Services revenue decreased $1.0biliion, or 4.5%,' on a mid single-digit percentage
decline iri volumes. The 1999 decline reflects the 'ongoing' 26rri'petitive nature of the consumer long' distance
industry, as well as product substitution ,and rnarkeCmigration awaY from direct dial and ~igher-priced callingcard services to rapidly growing wireless services' and lower-priced prepaid-card services:"
" .
EBIT/EBITDA
......
-
EBIT declined $0.8 billion, or 10.4%, and EBITDA declined $1.0 billion, or 12.0%, in 2000 compared with
1999. The declines in EBIT and EBITDA primarily, reflect the decline in,the long distance business, offset
somewhat by cost-control initiatives. In 'addition, the declines reflect $0.2 billion of lower gains on sales of
businesses, primarily the 1999 sale of Language Line Services, and higher restructuring charges. Reflect'rng
our cost-control initiatives, EBIT and EBITDA margins in 2000 improved to 37.4% and 40.3%, respectively,
compared with 36.2% and 39.8%, respectively, in 1 9 9 9 . ' '
EBIT grew $1.3 billion, or 20.4%, and EBITDA grew $1.4 billion, or 19.7%, in 1999. The EBIT margin
improved to 36.2% in 1999 (excluding the gain on the sale of Language line Services, the 1999 EBIT margin
was 35.5%) from 28.7% in the prior year. The EBIT and EBITDA growth for 1999 reflects ongoing costreduction efforts, particularly in marketing spending, as well as lower' negotiated iniernational settlement rates.
•
>
_.
..'
OTHER ITEMS
a
Capiial'.additions decreased $0.4 billi9n: or 54.0%, in 2000 as result' of a 'planned reduction in spending
. on the voice network and reduced spending on internal:use software ?S most of the functionality upgrades
42.9%, primarily due to increased
were completed in 1999. In 1999, capital additions increased $0.2 billion,
spending on internal-use software to add more functionality to our services and in support of AT&T WorldNet
Services subscriber growth.
.'
or
Total assets declined $1.5 billion, or 23.5%, during 2000. The decline was primarily due to assets
transferred to Concert during 2000, as well as lower accounts receivable, reflecting lower revenue.
.
~.
.•
•
".'
f
\
: 1;
,"
•.
'.
...
_
?
......
WIRELESS SERVICES
Our Wireless Services segment offers wireless voice and data services and products to customers in our
850 megahertz (cellular) and 1900 megahertz (Personal Communications Services, or PCS) markets. Wireless
Services also includes certain interests in partnerships and .affiliates that provide wireless services in the
United States and internationally, aviation-communications services and the results of our messaging business
through the October 2, 1998 date of sale. Also included are fixed wireless services providing high-speed
Internet access and any-distance voice services using wireless technology to residential and small bUSiness
customers.
17
TRE - 480
2000
. ~or the 'fears Ended December 31,
Revenue ...................................... .
~~:~DA.·" ::::::::::::: :::::.: :::: ::::::::::::::::
Capital additions ..... '.' ... ; ..... " .....<
At December
31 - "
Total assets' .'.
..
~ .......
,I
",: .. : ..
"
.......... .
199B
1999
Dollars in millions
,":.
$10,448
1,131
1,653
5,553
.'
. 2000
r..... ... ~. ".. :... ',"
$ 7,627 $5,406'(473)
'418'
581
856
2,739 - 2,395
1999
$35,184 $23,312
,
EBITDA for Wireless Services excludes net earnings (losses) from equlty investments and other income.
REVENUE
..;
..
Wireless Servicesreveriue grew $2.8 billion; or 37.0%, in 2000, and $2.2 billion, or 41.1%, in 1999 ..
ApproXimately $0.6 billion of the 2000 growth was due to acquisitions, and approximately $0.2 billion of the
1999 growth was due to the net impact of acquisitions and dispositions. The remaining increases were due to
sub~criber growth, reffecting the con'tinued s.ucce~siul e~e~ti6ri of AT&T's wireless strategy of targeting and
retaining specific 'customer segme~ts, expanding ihe national wireless footprint, focusing on digital service,
and offering simple rate pians. In addition, an increase' in average'monthly revenue per user (ARPU)
.,
contnbutedto the growr·· .
I.
. ..
.
ConSOlidated subscribers grew 58.5% during 2000 to approximately 15.2 million, and grew 33.4% to
approximately 9.6 million in 1999. This growth included approximately 3.0 million subscribers from acquisitions
closed during 2000, and approximately 900,000 from acquisltiO~S closed during 1999. ARPU was $68.20 for
2000, a 3.6% increase compared with 1999. ARPU
in 1999Was$65.80,
a 14.~,k, increase from 1998. The
•
I
average monthly subscriber churn rate in 2000'was 2.9% comrared. with 2.6% in 1999. Average monthly
SUbscriber churn increased during 2000 as a ,result of competitive pressures, as vyell as our efforts to expand
to a broader base of conSumer segnents serVed (e.g.; prepaid Wireless services).r We expect these factors to
continue, whiCh will resurt in a decline in ARPU.
' ,
.
'
". . .
EBIT/EBITDA
.'
In 2000, EBIT im'proved,$1 .6 ,billion from a'deficit of $0.5 billion in 1999. Approximately one-haf of the
improvement was due to higher pretaX earilings on equity investments and greater gains on sales y('
businesses and investments. These items included higher fquity earnings due to a gain recorded elating to
the redemption of our investment in AB Cellular, as well as a gain on transactions associated with (u r affiliate
investments in TeteCorp and Tritel, and a gain on the sale of Celumovil in 2000. In 1999, we recordlc:l a gain
on the sale of WOOD-TV. ~Iso positively impacting the EBIT growth in 2000 was a 1999 asset imparrrlent
charge of $0.5 billion and higher intercoriJpany interest income in 2000 reSUlting from the AT&T WirdE>ss
Group tracking stock offering p~oceeds ~ttributed to Wireiess Services, The remaining EBIT increase vva.s
primarily due to increased 'rev~nue, parlia;Iy offset by a related increase in expenses, _
In 1999, EBIT deciin~d $0:9 billion from $0.4 billion in 1998.
EsiT decline ~as,primariIY duet6 the
1999 asset impairment charge of approximately $0.5 billion and lower gains on sales of businesses c"l d
investments of approximately $0.5 billion.
.
,i,
..{"
:.:
.
.
."
'EBITDA, which excludes net earnings (losses) from equity investments and other income, increas~c:::::I $1.1
billion in 2000 to $1.7 billion. Approximately one-half of the increase was due to the 1999 impairment , ' ' ' C3rge
and the remainder was due to increased revenue, partial~ offset by a related increase in expenses.
.
-
The
"
"
"
tn 1999, EBtTDA, which excludes net earnings (losses) from equity investrnents and other income,
declined $0.3 billion to $0.6 billion. The decline was primarily due to the 1999 asset impairment chargE
partially offset by an increase in revenue net of related expenses.
18
TRE - 481
OTHER ITEMS
Capital additions increased $2.8 billion in 2000, and increased $0.3 billion in 1999. Spending in both
years focused on increasing the capacity and quality of our national wireless network.
Total assets were $35.2 billion as of December 31, 2000, an increase of $11.8 billion, or 50.3%, compared
with December 31, 1999. The increase was primarily due to increases in licensing costs, goodwill, and
property, plant and equipment associated with the acquisitions that closed in 2000. In addition, property, plant
and equipment increased as a result of significant capital expenditures in 2000. These increases were partially
offset by a decrease in investments, as Wireless Services previously held equity interests in portions of
wireless properties in the San Francisco Bay area and Los Angeles through AB Cellular. These markets were
consolidated as of December 31, 2000.
BROADBAND
Our Broadband segment offers a variety of services through our cable broadband network, including
traditional analog video and new services such as digital video service, high-speed data service and
broadband telephony service.
2000
For the Years Ended December 31,
1999
Dollars in millions
Revenue ............................................ .
EBIT ............................................... .
EBITDA* ............................................ .
Capital additions
At December 31,
Total assets .......................................... .
$
8,217 $ 5,070
(1,175)
(1,475)
1,709
802
4,963
4,759
2000
1999
$114,681
$53,810
EBITDA for Broadband excludes net losses from equity investments and other income.
Results of operations for the year ended December 31, 2000, include the results of MediaOne since its
acquisition on June 15, 2000, while the year ended December 31, 1999, does not include any results of
MediaOne. Additionally, the results of operations for the year ended December 31,1999, include 10 months of
TCl's results, reflecting its acquisition in March 1999, while 2000 includes a full 12 months of TCl's results.
REVENUE
Broadband revenue grew $3.1 billion in 2000, or 62.1 %, compared with 1999. Approximately $2.8 billion
of the increase in revenue was due to the acquisition of MediaOne in 2000 and TCI in 1999. In addition,
revenue from new services (digital video, high-speed data, and broadband telephony) and a basic-cable rate
increase contributed approximately $0.4 billion to the revenue increase.
At December 31, 2000, Broadband serviced approximately 16.0 million basic-cable customers, passing
approximately 28.3 million homes, compared with 11.4 million basic-cable customers, passing approximately
19.7 million homes at December 31, 1999. The increase reflects the acquisition of MediaOne. At December 31,
2000, we provided digital video service to approximately 2.8 million customers, high-speed data service to
approximately 1.1 million customers, and broadband telephony service to approximately 547,000 customers.
This compares with approximately 1.8 million digital-video customers, approximately 207,000 high-speed data
customers, and nearly 8,300 broadband telephony customers at the end of 1999.
EBIT/EBITDA
EBIT in 2000 was a deficit of $1.2 billion, an improvement of $0.3 billion, or 20.4%. This improvement was
due to approximately $0.5 billion of higher gains on sales of businesses and investments, primarily gains on
the swap of cable properties with Cox and Comcast and the sale of our investment in Lenfest, and $0.4 billion
19
TRE - 482
lower restructuring charges primarily associated with an in-process research and development charge
recorded in connection with the 1999 acquisition of TCI. Also contributing to the improvement were lower
pretax losses from equity investments of $0.5 billion, due in part to a $0.3 billion improvement from our
investment in Cablevision due to gains from cable-system sales. These improvements were largely offset by
the impact of the acquisition of MediaOne as well as TCI of approximately $0.5 billion and higher expenses
associated with high-speed data and broadband telephony services of approximately $0.4 billion.
EBITDA, which excludes net losses from equity investments and other income, was $1.7 billion in 2000,
an improvement of $0.9 billion compared with 1999. This improvement was due to the impact of the
MediaOne and TCI acquisitions of $0.7 billion and lower restructuring charges of $0.4 billion. Higher expenses
associated with high-speed data and broadband telephony of approximately $0.2 billion offset these increases.
OTHER ITEMS
Capital additions increased 4.3% to approximately $5.0 billion in 2000, from $4.8 billion in 1999. The
increase was due to higher capital expenditures of $0.8 billion primarily due to MediaOne, which was almost
entirely offset by decreased contributions to various nonconsolidated investments of $0.7 billion. In 1999,
spending was largely directed toward cable-distribution systems, focusing on the upgrade of cable plantassets, as well as equity infusions into various investments.
Total assets at December 31,2000, were $114.7 billion compared with $53.8 billion at December 31,
1999. The increase in total assets was primarily due to the MediaOne acquisition and an increase in property,
plant and equipment as a result of capital expenditures, net of depreciation expense. These increases were
partially offset by a decrease in the mark-to-market valuation of certain investments.
CORPORATE AND OTHER
This group reflects the results of corporate staff functions, the elimination of transactions between
segments, as well as the results of international operations and ventures and Excite@Home.
1999
2000
For the Years Ended December 31,
1998
Dollars in millions
Revenue ...................................... .
$
(148) $
569
$
647
EBIT ......................................... .
(4,167)
(1,625)
(3,248)
EBITDA ....................................... .
(3,171)
(871)
(2,916)
Capital additions
2,150
1.494
594
AI December 31,
2000
1999
$18,463
$15,535
Total assets .................................... .
REVENUE
Revenue for corporate and other primarily includes the elimination of intercompany revenue of negative
$0.8 billion (an increase of $0.1 billion from 1999), revenue from Excite@Home of $0.2 billion (which was
consolidated beginning on September 1, 2000), and revenue from our international operations and ventures of
$0.3 billion (a decline of $0.9 billion from 1999). The international operations and ventures revenue decrease
was largely due to the revenue impact of businesses contributed to Concert and due to the impact of the
divestment of certain businesses.
For 1999, revenue decreased $0.1 billion, or 12.0%. The decline was driven by an increase in the
elimination of intercompany revenue and the sale of AT&T Solutions Customer Care (ASCC) in 1998, partially
offset by growth in international operations and ventures.
20
TRE - 483
EBIT/EBITDA.
EBIT and EBITDA deficits in 2000 increased $2.5 billion and $2.3 billion to $4.2 billion imd $3.2 billion,
respectively. The increases in the deficits were largely related 'to Excite@Home. In 2000, restructuring and
other charges, net of minority interest, were $2.8 billion higher primarily due to goodwill impairment charges
recorded by Excite@Home and AT&T related to Excite@Home. Other impacts included a charge of
approximately $0.5 billion for the fair market value increase of put options held by Corncast and Cox related to
Excite@Home, and operating losses from Excite@Home. Partially offsetting these declines were an increase in
the pension credit due to a higher pension trust asset base resulting from increased investment returns, and
lower expenses associated with our continued efforts to reduce costs, which aggregated approximately $1.0
billion. In addition, higher net gains on sales of investments and an increase in interest income increased EBIT
and EBITDA by approximately $0.6 billion.
.
In 1999, EBIT and EBITDA deficits improved by $1,6 billion and $2.0 billion to $1.6 billion and $0.9 billion,
respectively. The improvements were driven by $2.1 billion of lower net restructuring and other charges in
1999 compared with 1998, partially offset by lower gains on the sales of businesses and lower interest
income, which negatively impacted EBIT and EBITDA by $0.3 billion. Additionally, EBIT was impacted by
dividends on trust p'referred securities. In 1998, AT&T recorded a gain on the sale of ASCC.
OTHER ITEMS
Capital additions increased $0.7 billion in 2000. The increase was driven by our investment in 2000 in
Net2Phone, Inc. (Net2Phone), partially offset by lower investments in international nonconsolidated
subsidiaries. Capital additions increased $0:9 billion in 1999 reflecting increased international equity
investments that support our global strategy.
Total assets increased $2.9 billion at December 31, 2000, primarily due to our investments in Concert and
Net2Phone.
LIBERTY MEDIA GROUP
LMG produces, acquires and distributes entertainment, educational and informational programming
services through all available formats and media. LMG is also engaged. in electronic-retailing services, directmarketing services, advertising sales relating to programming services, infomercials and transaction
processing. Earnings from LMG were $1.5 billion in 2000 compared with losses of $2.0 billion from the date of
acquisition through December 31, 1999. The increase was primarily due to gains on dispositions, including
gains associated with the mergers of various companies that LMG had investments in. Gains were recorded
for the difference between the carrying value of LMG's interest in the acquired company and the fair value of
securities received in the merger. In addition, lower stock compensation expense in 2000 compared with 1999
contributed to the increase. These were partially offset by impairment Charges recorded on LMG's investments
to reflect other than temporary declines in value and higher losses relating to LMG's equity affiliates.
LIQUIDITY
2000
For the Years Ended December 31,
1999
1998
Dollars in millions
CASH FLOW OF CONTINUING OPERATIONS:
Provided by operating activities' ..........-........ .
(Used in) provided by investing activities : .......... .
Provided by (used in) financing activities ........... .
$ 13,307 $ 11,521 $ 10,217
(39,934)
(27,043)
3,582
25,729
13,386
(11,049)
- In 2000, net cash provided by operating activities of continuing operations increased $1.8 billion. The
increase was primarily driven by an increase in net income excluding the noncash impact of depreciation and
amort::zation, net restructuring and other charges and minority interest income (p.xpense). In 1999, net ~ash
provided by operating activities of continuing operations increased $1.3 billion, primarily due to an increase in
_______________ .. ___ 21 _ _ _ _ _ _ _ _ _ _ _ __
I
TRE - 484
net income, exclu ding the noncash impact of depreciation and amortization, net restructuring ancl other
charges and the i rnpact of earnings and losses from equity investments. This increase was partially offset by'
higher receivableS, due primarily to higher revenue, and an increase in tax payments from the gai n on the
1998 sale of UCS - '
' .
,~
AT&T's investing activities resulted in a net use of cash of $39.9 billion in 2000, compared wit:h a net use
of cash of $27.0 t:>illion in 1999. During 2000, AT&T used approximately $21.4 billion for acquisitio ns of
businesses, prim~rily MediaOne, and spent $15.5 billion on capital expenditures. During 1999, AT c&T spent
approximately $14.3 billion on capital expenditures, approximately $6.7 billion on acquisitions of businesses,
primarily AGNS, and contributed $5.5 billion of cash to LMG. During 1998, we received $10.8 billion related to
the sales of businesses, including receivables from UCS, partially offset by capital expenditures of' $7.8 billion.
During 2000, net cash provided by financing activities was $25.7 billion, compared with $13.4 billion in
1999. In 2000, AT&T received $10.3 billion from the AT&T Wireless Group tracking stock offering and
borrowed an additbnal $17.0 billion of short-term debt and $2,5 billion of net long-term debt. These were
partially offset by the payment of $3.0 billion in dividends. In 1999, AT&T received $10.2 billion fro m the
issuance of commercial paper and short-term debt, $5.6 billion from the net issuance of long-term debt and
$4.6 billion from the issuance of redeemable preferred securities. These sources of cash were partially offset
by the acquisition of treasury shares of $4,6 billion and the payment of dividends of $2.7 billion. Cash used in
financing activities in 1998 primarily related to repayment of long-term and short-term debt, the acquisition of
treasury shares and dividends paid on common stock.
At December 31, 2000, we had current assets of $17.1 billion and current liabilitie; of $50.9 billion. A
significant portion of the current liabilities, $31.9 billion, relates to short-term notes, the m'ajority of which were
commercial paper or debt with an original maturity of one year or less. We expect that we will reti I'e a portion
of the short-term debt with other financing arrangements, including the monetization of publicly-held securities,
sales of certain non-strategic assets and investments, and securitization of certain accounts receivable. At
December 31, 2000, we had a current liability of $2.6 billion, reflecting our obligation under put options held
by Comcast and Cox. In January 2001, Comcast and Cox exercised their rights under the put options and
elected to receive AT&T stock in lieu of cash. Since December 31, 2000, we have announced the sale of
investments or assets, which will result in gross cash proceeds of approximately $4.6 billion. In addition, on
February 28, 2001, we exercised our registration rights in TWE and formally requested TWE to begin the
process of converting the limited partnership into a corporation with registered equity securities. We have,
however, continued our ongoing discussions with AOL Time Warner for the sale of our stake in TWE.
_ In connection with the planned split-off of AT&T Wireless, we announced that we will retain up to $3.0
billion in shares of AT&T Wireless, which we will dispose of within six months following the split-off. Also in
connection with the split-off, on March 6, 2001, AT&T Wireless completed a $6.5 billion global bond offering.
AT&T Wireless will ultimately use the proceeds to repay $4.8 billion in notes receivable and preferred stock
that AT&T Common Stock Group holds in AT&T Wireless. In addition on March 23, 2001, AT&T Wireless
entered into $2.5 billion in revolving credit facilities. The facilities include a 364-day tranche and a 5-year
tranche. The facilities are for general corporate purposes.
Another aspect of our restructuring is the expected sale, in late-2001, of a new class of stock which will
track our Broadband business.
AT&T is in a joint venture with Alaska Native Wireless (ANW). At December 31, 2000, AT&T had
committed to fund ANW up to $2.4 billion based on the outcome of FCC license spectrum auction. In January
2001, the auction was completed and ANW was the highest bidder on approximately $2.9 billion in licenses.
Since the announced restructuring plans to create four new businesses, AT&T's debt ratings have been
under review by the applicable rating agencies. As a result of this review, AT&T's ratings have been
downgraded and continued to be on credit watch with negative outlook. These actions will result in an
increased cost of tuture borrowings and will limit our access to the capital markets.
22
TRE - 485
AT&T is pursuing various measures to reduce its debt level. However, there can be no assurance that we
will be able to obtain financing on terms that are acceptable to us. If these efforts cannot be completed·
successfully, or on terms and within the timeframe contemplated, AT&T's financial condition would be
materially ·adversely affected. Some of these adverse conditions· include the ccimpimy's ability to pursue
acquisitions, make capital expenditures to expand its network
plant, ,.or pay dividends.
. and cable
.
On December 28, 2000, we entered into a 364-day, $25 billion revolving-credit facility syndicated to 39
banks, which was unused at December 31, 2000. As a result of certain transactions subsequent to
December 31, 2000, specifically the investment by NTI DoCoMo of $9.8 billion for a new class of AT&T
preferred stock, and the $6.5 billion AT&T Wireless bond offering, this credit facility was reduced to
$18.3 billion.
Also in connection with our restructuring, we have reviewed our dividend policy as it relates to each of the
new businesses. On December 20, 2000, we announced that the board of directors reduced AT&T's quarterly
dividend to $0.0375 per share, from $0.22 per share.
RISK MANAGEMENT
We are exposed to market risk from changes in interest and foreign exchange rates, as well as changes
in equity prices associated with affiliate companies. In addition, we are exposed to market risk from
fluctuations in the prices of securities which we monetized through the issuance of debt. On a limited basis,
we use certain derivative financial instruments, including interest rate swaps, options, forwards, equity hedges
and other derivative contracts, to manage these risks. We do not use financial instruments for trading or
speculative purposes . .All financial instruments are used in accordance with board-approved policies.
We use interest rate swaps to manage the impact of interest rate changes on earnings and cash flows
and also to lower our overall borrowing costs. We monitor our interest rate risk on the basis of changes in fair
value. Assuming a 10% downward shift in interest rates, the fair value of interest rate swaps and the
underlying hedged debt would have changed by $10 million and $3 million at December 31,2000 and 1999,
respectively. In 2000, we entered into a combined interest rate, forward contract to hedge foreign-currencydenominated debt. Assuming a 10% downward shift in both interest rates and the foreign currency, the fair
value of the contract and the underlying hedged debt would have changed by $88 million. In addition, certain
debt is indexed to the market prices of securities we own. Changes in the market prices of these securities
result in changes in the fair value of this debt. Assuming a 10% downward change in the market price of
these securities, the fair value of the underlying debt and securities would have decreased by $534 million at
December 31, 2000. Assuming a 10% downward shift in interest rates at December 31, 2000 and 1999, the
fair value of unhedged debt would have increased by $1.2 billion and $938 million, respectively.
We use forward and option contracts to reduce our exposure to the risk of adverse changes in currency
exchange rates. We are subject to foreign exchange risk for foreign-currency-denominated transactions, such
as debt issued. In addition, in 1999 we were subject to foreign exchange risk related to reimbursements to
foreign telephone companies for their portion of the revenue billed by AT&T for calls placed in the United
States to a foreign country. We monitor our foreign exchange rate risk on the basis of changes in fair value.
Assuming a 10% appreciation in the U.S. dollar at December 31, 2000 and 1999, the fair value of these
contracts would have resulted in additional unrealized losses of $6 million and $29 million, respectively.
Because these contracts are entered .into for hedging purposes, we believe that these losses would be largely
offset by gains on the underlying 'firmly committed or anticipated transactions.
.
We use equity hedges to manage our exposure to changes in equity prices associated with stock
appreciation rights (SARs) of affiliated companies. Assuming a 10% decrease in equity prices 01 affiliated
companies, the fair value of the equity hedges would have decreased by $29 million and $81 million at
December 31, 2000 and 1999, respectively. Because these contracts are entered into for hedging purposes,
we believe that the decrease in fair value would be largely offset by gains on the underlying· transaction.
In order to determine the changes in fair value of our various financial instruments, we use certain
modeling techniques, namely Black-Scholes, for our SARs and equity collars. We apply rate sensitivity
23
TRE - 486
changes directly to our interest rate swap transactions and forward rate sensitivity to our foreign currency
' .' .
., '.
forward contracts. ..<
The changes in fair value; as discussed above, assume the occurrence of certain adverse market
conditions. They do not consider the potential effect of favorable changes in market factors and do not'
represent projected losses in fair value that we expect to incur. Future impacts would be based on actual
developments in global financial markets. We do not foresee any significant changes in the strategies used to
manage interest rate risk, foreign currency rate risk or equity price risk in the near future.
FINANCIAL CONDITION
2000
At December 31,
.,
Total assets ................... :...... : .. ~ : ... : ............ .
Total liabilities ........................................ .
Total shareowners' equity ............................... .
1999
Dollars In millions
$242,223
$169,406
129,432 .
83,388
103,198
78,927
Total assets increased $72.8 billion, or 43.0%, at December 31, 2000, primarily due to the impact of the'
MediaOne acquisition, which resulted in increased goodwill, franchise costs, other investments including TWE
and Vodafone Group pic; and the addition of property, plant and equipment. Property, plant and equipment
also increased. due to capital expenditures made during the year, net of depreciation expense and equipment
contributed to Concert. This equipment contribution, as well as a $1.0 billion loan to Concert, and our
investment in Net2Phone are reflected as an increase to other investments. Additionally, other receivables
increased due to Concert. Wireless acquisitions, including the impact of consolidating former equity
investments, resulted in increased licensing costs.
Total liabilities at December 31, 2000, increased $46.0 billion, or 55.2%, primarily due to the impact of the
MediaOne acquisition, including debt of MediaOne and borrowings to fund the acquisition, as well as the
consolidation of Excite@Home. In addition, total debt increased due to the monetization of our investments in
Microsoft Corporation and Comcast.
, Minority interest increased $2.5 billion to $4.9 billion, primarily reflecting the minority interest of our
ownership of Excite@Home resulting from the consolidation of Excite@Home beginning September 1, 2000,
and the preferred stock outstanding of a MediaOne subsidiary.
Total shareowners' equity was $103.2 billion at December 31, 2000, an increase of 30.8% from
December 31, 1999. This increase was primarily due to the issuance of AT&T common stock for the
MediaOne acquisition as well as the issuance of AT&T Wireless Group tracking stock .
. The ratio of total debt to total capital, excluding LMG (debt divided by total debt and equity, excluding
LMG) was 46.2% at December 31, 2000, compared with 43.0% at December 31, 1999. The equity portion of
this calculation includes convertible trust preferred securities, as well as subsidiary redeemable preferred
stock. The increase was primarily driven by higher debt associated with the MediaOne merger, largely offset
by a higher equity base associated with the MediaOne merger and the AT&T Wireless Group tracking stock
offering. The ratio of debt (net of cash) to EBITDA was 3.28X at December 31, 2000, compared with I.S8X at
December 31, 1999, reflecting additional debt associated with the MediaOne merger. Included in debt was
approximately $8.7 billion of notes, which are exchangeable into or collateralized by securities we own.
Excluding this debt, the ratio of net-debt-to-EBITDA at December 31, 2000, was 2.84X.
NEW ACCOUNTING PRONOUNCEMENTS·
In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting
Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities." Among other
provisions, it requires that entities recognize all derivatives as either assets or liabilities in the statement of
financial position and measure those instruments at fair value. Gains and losses resulting from changes in the
fair values of those derivatives would be accouni~d for depending on the use of ihe derivative and whether it _
24
TRE - 487
qualifies for hedge accounting. The effective date for this standard was delayed via the issuance of SFAS No.
137. The effective date for SFAS No. 133 is now for fiscal years beginning after June 15, 2000, though earlier.
adoption is encouraged and retroactive application is prohibited. For AT&T, this means that the standard must
be adopted no later than January 1, 2001 .
. In June 2000, the FASB issued. SFAS No. 138, "Acco'unting for Certairi Derivative Instruments and Certain
Hedging Activities" as an amendment to SF~S No. 133. This statement provides clarification with regard to
certain implementation issues under SFAS No. 133 on specific types of hedges..
.
.
I"
.'
.
.
On January 1, 2001, AT&T adopted SFAS No. 133. We recorded a cumLilative effect of an accounting
change, net of applicable income taxes, of approximately $1.4 billion 'of income, or approximately $0.34 per
diluted share, primarily attributable to fair value adjustments of debt instruments, including those acquired in
conjunction with the MediaOne merger, as well as to our warrant portfolio. In addition, in connection with the
adoption of SFAS No. 133, we reclassified certain investment securities, which support debt that is indexed to
those securities, from "available-for-sale" to "trading." This reclassification resulted in the recognition of a
charge of $2.8 billion ($1.7 billion after income taxes), or approximately $0.43 per diluted share, which was
recorded as a reduction of other income. As available-for-sale securities, changes in fair value were previously
included within other comprehensive income as a component of shareowners' equity. In addition, LMG
recorded a cumulative effect of an accounting change, net of applicable income taxes, of approximately
$0.8 billion of income, or approximately $0.31 per share.
The impact of the adoption of SFAS No. 133, as amended by SFAS No. 138, on AT&T's future results of
operations is dependent upon the fair values' of our derivatives and related financial instruments and could
result in pronounced quarterly fluctuations in other income in future periods.
In September 2000, the FASB issued SFAS No. 140; "Accounting for Transfers and Servicing of Financial
Assets and Ex1inguishments of Liabilities ,-'a Replacement of FASB Statement No. 125." This statement '
provides accounting and reporting standards for transfers and serviCing of financial assets and
extinguishments of liabilities. Under these standards, after a transfer of financial assets, an entity recognizes
the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets
when control has been surrendered, and derecognizes liabilities when extinguished. This statement provides
consistent standards for distinguishing transfers of financial assets that are sales from transfers that are
secured borrowings. This statement is effective for transfers and servicing of financial assets and
extinguishments of liabilities occurring after March 31, 2001. AT&T does not expect that the adoption of SFAS
No. 140 will have a material impact on AT&T's results of operations, financial position or cash flows.
SUBSEQUENT EVENTS
On January 12, 2001, AT&T announced that Cox and Comcast had exercised their rights to sell a
combined total of 60.4 million shares of Excite@Home Series A common stock to AT&T as part of an
agreement announced in August 2000 to reorganize Excite@Home's governance. Cox and Com cast elected
to receive shares of AT&T common stock in exchange for their Excite@Home shares. AT&T is currently in
discussions to renegotiate the terms of the put options which may result in a change to the number of shares
of AT&T stock that Cox and Comcast will receive, as well as the number of Excite@Home shares, if any AT&T
receives. There can be no assurances that an agreement will be reached with Cox and Com cas!.
On January 22, 2001, AT&T and NIT DoCoMo (DoCoMo) finalized an agreement whereby DoCoMo
invested approximately $9.8 billion for a new class of AT&T preferred stock, termed DoCoMo Wireless tracking
stock, that is economically equivalent to 406 million shares of AT&T Wireless Group tracking stock and reflects
approximately 16% of the financial performance and economic value of AT&T Wireless Group. AT&T allocated
$6.2 billion of the proceeds to AT&T Wireless Group. Each share of DoCoMo Wireless tracking stock is
convertible at any time into AT&T Wireless Group tracking stock. Upon the conversion of the DoCoMo
Wireless tracking stock, AT&T will reduce its portion of the financial performance and economic value in AT&T
Wireless Group by 178 million shares, and the balance of the 406 million shares will come from the issuance
of 228 million new shares of AT&T Wireless Group tracking stock. Additionally, upon completion of the
25
TRE - 488
planned split-off of AT&T Wireless, the DaCoMa Wireless tracking stock and related warrants will ·automatically
be converted into AT&T Wireless Group tracking stock and thereafter be exchanged on the same terms as all
other shares'of AT&T Wireless Group tracking stock in the split-off. In the event that AT&T has not split-off
AT&T Wireless by speCified dates beginning January 1, 2002, DaCoMa will have the right, at its election, to
require AT&T to repurchase from DaCoMa the preferred shares initially issued to them at DaCoMa's original
purchase price plus intEirest up to: the date of payment. The interest under this right will be treated as
preferred stock dividends with charges recorded as a reduction of AT&T Common Stock Group earnings. In
addition, DaCoMa acquired five-year warrants to purchase the equivalent of an additional 41.7 million shares
of AT&T Wireless Group tracking stock at $35 per share. As part of the agreement, DaCoMa obtained a seat
on AT&T's board of directors until AT&T Wireless is split-off from AT&T as a separate public company, wt)ich is
expected to. occur later in 2001. At that time, DaCoMa will retain representation on the new public AT&T
Wireless board.
In January 2001, AT&T entered into agreements with certain network equipment vendors, which extend
through 2004, tei 'purchase next-generation wireless network equipment for a total of approximately $1.8
billion.
.
On February 27, 2001, AT&T entered into an agreement with Vadafone Group pic to sell our 10% stake in
Japan Telecom Co. Ltd for approximately $1.35 billion in cash. The transaction is expected to be completed in
April 2001 and will result in a gain.
On March 1, 2001, AT&T Wireless completed a private placement of $6.5 billion in nates. The nates pay
interest at rates ranging from 7.35% to 8.75% per annum, with maturity dates ranging from 2006 to 2031. The
notes include customary covenants and registration rights.
On March 23, 2001, AT&T Wireless entered into $2.5 billion in revolving credit facilities. The facilities
consist of a 364-day facility of $1.25 billion and a five-year revolving credit facility of $1.25 billion. The facilities
may be used for general corporate purposes and are subject to customary covenants and events of default.
26
TRE - 489
AT&T Corp. and Subsidiaries
SEVEN-YEAR SUMMARY OF SELECTED FINANCIAL DATA (UNAUQITED)
Dollars in millions (except per share amounts)
2000'
1999'
199B
1997
1996
1995
.1994
RESULTS OF OPERATIONS AND EARNINGS PER SHARE
Revenue . . . . . . . . • . . . . " . . . . . . . . . . . . . . . • . . . . . $ 65,9Bl $ 62,600 $ 53,223 $ 51,577 $ 50.688 $ 48,449 $ 46,063
Operating income . . . . . . . . . . . . . . , . . . . . . . . . . . . . .
Income from continuing operations . . . . . . . . . . . . . . . . . .
4,277
4.669
10.859
3,428
7,487
5,235
6,836
4.249
B,709
5,458
5,169
2,981
7,393
4,230
3,105
0.89
0.88
0.6975
5,450
1.77
1.74
5,235
1.96
1.94
0.88
4,249
1.59
1.59
0.88
5,458
2.07
2.07
0.88
2,981
1.15
1.14
0.88
4,230
1.65
1.64
0.88
1,488
0.58
(2,022)
(0.80)
AT&T Common Stock Group:
Income from continuing operations. . . . .
. . , ..... ,
Earnings per basic share . . . . . . . . . . . . . . . . . . . . . . .
Earnings per diluted share . . . . . . . . . . . . , . . . . . . . . .
Dividends declared per share . . . . . , . . . . . . . . • . . . • .
O.BB
AT&T Wireless G roup 3:
.
Income . . . . . . . . . . • , . . . . • . . . , . . . . . . . . . . . . .
Earnings per basic and diluted share . , . . . . . . . . . . . . ,
Uberty Media Group3.4:
Income (loss) . . . . . . . . . . . . . . . . . . . • . . . . . . . . . .
Earnings (loss) per basic and diluted share . . . . . . . . . . . .
ASSETS AND CAPITAL
Property, plant and equipment, net . . . . . . . . . . . . . . . . .
Total assets-continuing operations . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . ' . . . . . . . . . . . . . . . . . .
Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mandatorily redeemable preferred securlties ..
";hareowners' equity . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jebt ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross capital expenditures . . . . . . .
. $ 51,161 $ 39,618 $ 26,903 $
. 242.223 169,406
59.550
59.550 .
. 242,223 169.406
.
23.217
5,556
33.092
.
65,039
35,850
6,727 . .
.
.
24.203 $ 20.803 $ 16,453 $ 14.721
59,994
55,838
54.365
47,926
57,817
61.095
57.348
62.864
7,857
8,913
8.878
9.138
11,942
11,351
21,081
18.720
2,380
1,626
25,522 . 23,678
103.198
78.927
46.2%
43.0%
20.9%
33.5%
14,566
13,511
7,981
7,714
21,092
17,400
35.0%
54.8%
7,084
4.659
18,100
50.8%
3,504
10.7%
16.1%
OTHER INFORMATION
Operating income as a percent of revenue
Income from continuing operations attributable to AT&T
Common Stock Group as a percent of revenue ... .
. ...... .
Return on average common equitl . . .
Employees-continuing operations6 •• " • • • • • • • • .
Data at year-end:
AT&T stock price per share . . . . . . . . . . . . . . . . . . . . . .
AT&T Wireless Group stock price per share . . . . . . . . . . .
Uberty Media Group A stock price per share 4 • • • • • • • • • •
Uberty Media Group B stock price per share 4 • • • • • • • '• • •
6.5%
17.3%
14.1%
13.3%
17.2%
4.8%
B.7%
9.8%
10.B%
9.2%
8.2%
6.2%
25.3%
19.7%
27.1%
29.5%
6.2%
0.4%
15.2%
165.600 147,BOO 107,800 130,BOO 128,700 126,100 116,400
17.25
17.31
13.56
18.75
50.81
50.50
40.87
27.54
29.60
22.97
28.41
34.38
1.
On April 27, 2000, AT&T issued 15.6% of AT&T Wireless Group (AWE) tracking stock. AT&T Common Stock Group results exciude
the portion of AT&T Wireless Group that is represented by the tracking stock and exclude Uberty Media Group (LMG).ln addition, on
June 15, 2000, AT&T completed the acquisition of MediaOne Group, Inc.
2.
In connection with the March 9,1999, merger with Tele-Communications, Inc., AT&T issued separate tracking stock for LMG. LMG is
accounted for as an equity investment.
3.
No dividends have been declared for AWE or LMG tracking stocks.
4.
LMG earnings per share amounts and stock prices have been restated to reflect the June 2000 two-far-one stock spin.
5.
Debt ratio reflects debt as a percent of total capital (debt plus equity, eXCluding LMG). For purposes of this calculation, equity
includes converflble quarterly trust preferred securities as well as redeemable preferred stock of subsidiary.
6.
Data provided excludes LMG.
. 27
TRE - 490
· REPORT OF .MANAGEMENT
Management is -responsible for the preparation, integrity and objectivity of the consolidated financial
statements ancl all other financial inf()rmation included in this report. Management is also responsible for
maintaining a 5'ystem of internal controls as a fundamental requirement for the operational and financial
integrity of reswlts. The financial statements, which reflect the consolidated accounts of AT&T Corp. and
subsidiaries (AT&T) and other financial information shown, were prepared in conformity with generally
accepted accounting principles. Estimates included in the financial statements were based on judgments of
qualified personnel. To maintain its system of internal controls, management carefully selects key personnel
and establishes the organizational structure to provide an appropriate division of responsibility. We believe it is
essential to conduct business affairs in accordance with the highest ethical standards as set forth in the AT&T
Code of Conduct. These guidelines and other informational programs are designed and used to ensure that .
policies, standClrds and managerial authorities are understood throughout the organization. Our internal
auditors monitor compliance with the system of internal controls by means of an annual plan of internal
audits. On an ongoing basis, the system of internal controls is reviewed, evaluated and revised as necessary
in light of the results of constant management oversight, internal and independent audits, changes in AT&T's·
business and other conditions. Managernent believes that the system of internal controls, taken as a whole,
provides reasonable assurance that (1) financial records are adequate and can be relied upon to permit the
preparation of financial statements in conformity with generally accepted accounting principles, and (2) access
to assets occurs only in accordance with management's authorizations.
The Audit Committee of the Board of Directors, which is composed of directors who are not employees, .
meets' periodically with management, the internal auditors and the independent accountants to review the
manner in which these groups of individuals are performing their responsibilities and to carry out the Audit
Committee's oversight role with respect to auditing, internal controls and financial reporting matters.
Periodically, both the internal auditors and the independent accountants meet privately with the Audit
Committee and have access to its individual members at any time.
The consolidated financial statements in this annual report have been audited by
PricewaterhouseCoopers LLP, Independent Accountants. Their audits were conducted in accordance with
generally accepted auditing standards and include an assessment of the internal control structure and
selective tests of transactions. Their report follows.
C. Michael Armstrong
Chairman of the Board,
Chief Executive Officer
Charles H. Noski
Senior Executive Vice President,
Chief Financial Officer
28
TRE - 491
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and
Shareowners of AT&T. Corp.:
:;~ :""" ,':, ;:::
'f'
" , . -.-,
-
In our opinion, based on our audits and the report of other auditors, the accompanying consolidated
balance sheets and the related consolidated statements of income, changes in shareowners' equity and of
cash flows present fairly, in all material respects, the financial position of AT&T Corp. and its subsidiaries
(AT& at December 31, 2000 and 1999, and the results of their operations and their cash flows for each of
the three years ended December 31, 2000, in conformity with accounting principles generally accepted in the
United States, These financial statements are the responsibility of AT&T's management; our responsibility is to
express an opinion on these financial statements based on our audits. We did not audit the financial
statements of Liberty Media Group, an equity method investee, which was acquired by AT&T on March 9,
1999, AT&T's financial statements include an investment of $34,290 million and $38,460 million as of
December 31, 2000 and 1999, respectively, and equity method earnings (losses) of $1,488 million and
$(2,022) million, for the years ended December 31, 2000 and 1999, respectively. Those statements were
audited by other auditors whose report thereon has been furnished to us, and our opinion expressed herein,
insofar as it relates to the amounts included for Liberty Media Group, as of and for the years ended
December 31, 2000 arid 1999, is based solely on the report of the other auditors. We conducted our audits of
these statements in accordance with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit 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
and the report of other auditors provide a reasonable basis for the opinion expressed above.
n
New York, New York
March 16, 2001
, ..
29
TRE - 492
"
· AT&T CORP. AND SUBSIDIARIES '"
CONSOLIDATED STATEMENTS OF INCOME
,I,.
.-." ,
.,
For the Years Ended
December 31,
'.
'-
2000
'.'
1999
1998
Dollars In millions
(except per share a~ounts)
Revenue . : ." ; ..... .. : : .... : .... ; ..... : .. ' ... ' .. ~' ............... ',- .. .
$65,981
$62,600
$53,223
,
.
.
.
:
,
17,587
13,518
13,303
.7,274
2,993
7,029
14,594
14,686
13,516
6,138
1,301
1,506
10,495
15,328
,12,770
4,378
251
2,514
Total operating expenses . , ' , , , .. , . , .. , '. , ... , . , ... , . ,' .. , . , .. ' , , , ..... .
61,704
51,741
Operating inc~me . , . , .. , , .. , .. .- , . ' . , , ...,', . ' , , . , .... , .. , , . , , .. , ... , ,
4,277
10,859
45,736
--7,487
Other income , , , .. ', .. , .. , , . , .. ' ... , . , , , , . , , , , , , ... , .. , , , . , . , .... , '
Interest expense , . . , . . . . . , , , . . , ' . , . . . " . , , . ' . . . . , . . . " ' . , , . , , . , . . , , , .
1,514
3,183
931
1,765
1,281
427
Income from continuing operations before income taxes, minority interest and earnings
(losses) from equity investments " . , . " . , ' , . " . " ..... ,.,,' ........... ,
Provision for income taxes ; ................... : ........ : .. ' ........... .
2,608
3,342
10,025
3,695
8,341
3,049
Min~rity interest income (expense) . , , . '.. , , .... " , , . , . , ' ,'. , .... :., .. , , ' . " ,', ,
Equity earnings (losses) from Liberty Media Group. , , .. , , ' , , . , . .', . .-, .. ' , , , ... ,
Net losses from other equity investments .. ' .. , , . , . ' , , , , , , , , .. , ' .. ' , , ... , , .
4,120
, 1,488
205
(115)
(2,022)
765
21
Income from continuing operations ..... ........ , ....................... .
4,669
3,428
Operating Expenses
Costs of services and products'(excluding depreciation of $5,457, $4,947 and $3,362
included below) ............... , , . , . , . ,'. , ... , . , ... , , , . , .. , , . , . , ..
Access and other connection . , ... , ... , . , .. , , ... , , , , .. , .. , , , , .... , , , . ,
Selling, general and administrative. , . , .... , . , . , ..... , . , ..... , , , , , . , . , . , '
Depreciation and other amortization. , . , .. , ' .. , . , .. , ' , , , .. , , ... ' , . , , .....
Amortization of goodwill, franchise costs and other purchased intangibles, , , .. , , . , , .
Net restructuring and other charges . , , , . , ' : ' : . , . , , . ' , , , , . , . , . , . , .'. . , . . . .
---
78
--5,235
Discontinued Operations
10
1.290
Income from discontinued operations (net of income taxes of $6) ... . . . . . . . . . . . . . . .
Gain on sale of discontinued operations (net of income taxes of $799) . . . . . . . . . . . . . .
Income before extraordinary loss, , , .... , , . , , , , , .. , , , .. , . , . ' , . , , .. ' , , . , , .
4,669
3,428
6,535
Extraordinary loss (net of income taxes of $80) . ' ... , ... , . , , , ........ , . ,. . . . .
Net income ... , .... , ........... , ...... , .. , ........ , . , . , , ... , . , . ..
137
$ 4,669
$ 3.428
.
.
.
.
$
$
AT&T Common Stock Group earnings .. , ......... , . , . , ..... , , . , .... , ... , .
$
0.89
$
1.77
$
0,88
$
1.74
AT&T Common Stock Group-per basic share:
Income from continuing operations . ............................... ,
Income from discontinued operations ... , ...... , ...... , ............. ,
Gain on sale of discontinued operations, ... , . , .... , .. , .. , .... , .... , . ,
Extraordinary loss ... , ... , ....... , , . , , .. , ............... , .. , ...
....
... ,
. , ..
, ...
AT&T Common Stock Group-per diluted share:
Income from continuing operations .. ..... , .. , .......................... .
Income from discontinued operations . ..•............................. ", .. .
Gain on sale of discontinued operations ... ........................... ' .... .
0.89
1,77
$ 6,398
$
0.48
0,05
--$ 2.39
$
AT&T Common Stock Group earnings .. ' .............. , . , . , .. , ... , .... , ..
$
0,88
$
AT&T Wireless Group:
Earnings per share:
Basic and diluted. , .... , ... , ..... , . , . , ........ , .... ' .... , . , .. , ... .
$
0,21
$
$
Liberty Media Group:
Earnings (loss) per share:
Basic and diluted ...... , .... , ........... , ...... , .... , . , .. , . , ..... ,.
$
0.58
$ (0,80)
$
The notes are an integrai part of ihe consoiidated financiai statements.
TRE - 493
1,94
0.48
0,05
Extraordinary loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
1.96
1.74
$
2,37
AT&T CORP. AND SUBSIDIARIES
. ·CONSOLIDATED BALANCE SHEETS
At December 31,
200D
1999
Dollars in millions
ASSETS
Cash and cash equivalents .. . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Receivables, less allowances of $1,379 and $1,281 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . ; . . . . . . : . . . . . . . . . . . . . . . . '. . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... , . . . . . . . . . .
.......
. . . . . . .
.. .. .. .
. . . . . . .
.
.
.
.
126
11,144
1,703
2,102
812
1,200
$
1,024
9,813
640
1,287
1,120
TOTAL CURRENT ASSETS . . . . . . . . . . . . , . , , " " " ' , . , . . . . .
17,087
13,884
Property, plant and equipment, net . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , .. .
Franchise costs. net of accumulated amortization of $1,664 and $697 . . . . . . . . . . . . . . . . . . " ....... ,.
Licensing costs, net of accumulated amortization of $1,76.2 and $1,491 . . . . . . . . . . . ,., ... ,., . . . . . . .
Goodwill, net of accumulated amortization of $850 and $363 ... , . . . . . . . . . . . . . . . . , . , , , , . . . . . . . .
. , . . , . , . . . . , . . . , . . , .
Investment in Liberty Media Group and related receivables, net . . . . . . .
Other investments and related advances . , , , , . , . . . . . , . . . . . , . . , . . . . . . . . . . . . . . . . . . . . , . , ..
Prepaid pension costs . . . . . . . . . . . . . . . . . , . , " , . " . . . . . . . . ... , . . . . . . . . . . . . . . . . . . . .
51,161
48,218
13,626
31,478
34,290
34,261
3,003
9,099
39,618
32,693
8,548
7,445
38,460
19,366
2,464
6,928
$242,223
$169,406
Other assets . . . . . . . . • . . . . , . . . . . . . . . . . . • . ,
TOTAL ASSETS
, . . . . . . . , ... , .. , .. "
LIABILITIES
Accounts payable . . . . . . . . . . . .
.
Payroll and benefit·related liabilities
Debt maturing within one year , . . , . ' . '
Liability under put options . . . . . . . . . , .
Other current liabilities . . . . . . . . . . . . .
..•. , . . . . . . . . • . . . , . • . • • . . . . . . . . . . . .
..... .
. . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . , . . . . , , ... ,
, . . . . . . . . . . . . . . . . . . . . , . . . . . . , . . . . . . . . . . , ..
. , . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . , . , . . . . . . . . . . . . . . . . . . . . .
... , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . .
$
6,455
2,423
31,947
2,564
7,478
$
6,771
2,651
12,633
6,152
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . , . , " " ' , . , . . . . , ' , .. , . • . . . . " . , .. , .. , ..
50,867
28,207
Long·term debt . . . . . . . . . . . . . . . . . . . . , . . . . . . . . , ... , . . . . . . . . . . . . . . . . . . . . . . , ... , ..
Long·term benefiHelated liabilities . . . . . . . . . . . , . . . . , .
Deferred income taxes . , , . . . . . . . . . . . . . . . , . . , , , . . . . . . .
Other long·term liabilities and deferred credits .. . . . . . . . . . . . . . .
33,092
3,670
36,713
5,090
23,217
3,964
24,199
3,801
129,432
83,388
4,883
2,391
4,710
4,700
.
3,760
3,196
,
362
.
2,364
2,314
.
.
.'
206
90,496
217
59,526
Accumulated other comprehensive income . . . . . . . . . . . . , . . . . . . . . . . . . . , . . . . . . . . . . . . . .
7,408
(1,398)
6,712
6,979
TOTAL SHAREOWNERS' EQUITY , , , , , , . . . . . . . : . ': . , . , , , , , ... , . , .. , . , . , . , .. , .... ,
103,198
78,927
$242.223
$169,406
TOTAL UABILITIES . , " ' , '
Minority Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . ... , . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Company·Obligated Convertible Quarterly Income Preferred Securities of Subsidiary Trust Holding Solely
. ........... , .
. ..... .
Subordinated Debt Securities of AT&T . .. , . . . . . .
SHAREOWNERS' EQUITY
Common Stock:
AT&T Common Stock, $1 par value, authorized 6,000,000,000 shares; issued and outstanding 3,760,151,185
shares (net of 416,687,45.2 treasury shares) at December 31, 2000, and 3,196,436,757 shares (net of
267,866,419 treasury shares) at December 31, 1999 . . . . . , . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . .
AT&T Wireless Group Common Stock, $1 par value, authorized 6,000,000,000 shares; issued and outstanding
361,802,200 shares at December 31, 2000 , , , , , , . , , . , . . . . . , , , , , , , . , . , .. , , . , , , , • , , .. , ,
Uberty Media Group Class A Common Stock, $1 par value, authorized 4,000,000,000 shares; issued and
outstanding 2,363,738,198 shares (net of 59,512,496 treasury shares) at December 31, 2000, and
2,313,557,460 shares at December 31,1999 , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . .
Uberty Media Group Class B Common Stock, $1 par value, authorized 400,000,000 shares; issued and
outstanding 206,221,288 shares (net of 10,607,776 treasury shares) at December 31, 2000, and 216,642,228
shares at December 31, 1999 . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . .
Additional paid·in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . .
Guaranteed ESOP obligation . . . . . . . . . . . . . . . . . . . .. , . . . . . . .'. . . , '.' . . . . . . . . '. . . . . . . . .'.
.
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . .
TOTAL UABILITIES AND SHAREOWNERS' EQUITY . . . . . , , ' ',' , , , , ,
The notes are an integral part of the consolidated financial statements,
31
TRE - 494
(17)
AT&T CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF.CHANGES IN. SHAREOWNERS' EQUITY
For the Years Ended
December 31,
2000
1999
1998
Dollars in millions
AT&T Common Shares
Balance at beginning of year . . . . . . . . . . . . .
Shares issued (acquired). net:
Under employee plans . . . , . . . . . . . .
For acquisitions . . . .
. ...... .
Other* .. . . . . . . .
Balance at end of year ..
$
.. . . ...
3,196
$ 2,630
$ 2,684
3
607
(46)
566
2
(56)
3,760
3,196
2.630
AT&T Wireless Group Common Stock
Balance at beginning of year
Shares issued: .
For stock offering ..
Under employee plans .
360
2
Balance at end of year . . . . . . .
362
liberty Media Group Class A Common Stock
Balance at beginning of year . . . . . . . . .
Shares issued (acqUired), net:
For acquisitions . . ..
Other. ,
........... .
2,314
62
(12)
2.364
Balance at end of year .. .
liberty Media Group Class 8 Common Stock
Balance at beginning of year .' , . . . . . . '
Shares issued jacquired), net:
For acquisitions
Other
2.280
34
2,314
217
(11 )
Balance at end of year .
Additional Paid-In Capital
Balance at beginning of year
Shares issued (acquired), net:
Under employee plans . .
For acquisitions .
Other· . . . . . . ,.. . . . . . . . . . . . . . . . . . .
. ..
Proceeds in excess of par value trom issuance of AT&T Wireless common stock
Common stock warrants issued.
Gain on issuance of common stock by affiliates
Other ...
220
(3)
206
217
59,526
15,195
98
23,097
(2.767)
431
42,425
323
97
306
667
179
90.496
59,526
530
Balance at end of year
(17)
17
Balance al end of year ..
Retained Earnings
, .
Balance at beginning of year ..
Net income . . . . . . . . . . . :". .. . ....
Dividends declared ..
Treasury shares issued at less than cost
Other changes . . .
. . . . , ..
6,712
4,669
(2,485)
(1.488)
27
(70)
26
(17)
(44)
• (2,807)
(1,709)
7,408
6,712
6,979
(B,3n)
(59)
7,038
. ..
,'.-
..
(1.398)
.......
Summary of Total Comprehensive Income:
Net income . . . . . . . . . . . . ' . . . . . . ..
. . .. . . .
..... .
Other comprehensive income Inet of income taxes of $j5,348), $4,600 and $(53)]
Comprehensive Income . . . . . . . . . . . . . . . .
3,981
6,398
7,800
3,428
Balance at end of year ..
,
15,195
(44)
Accumulated Comprehensive Income
Balance at beginning of year .
Other comprehensive income ..
Balance at end of year ..
67
'(2,105)
112
9,915
Guaranteed ESOP Obligation
Balance at beginning of year ..
Amortization
Total Shareowners' Equity
17,121
(2.230)
(370)
21
7,800
(38)
(21)
(59)
6,979
$103,198
$78,927
$25,522
$
4,669
(8.3n)
$ 3.428
$ 6,398
. $ (3,708)
$10,466
(21)
7,038
$ 6.377
Activity in 2000 primarily represents AT&T stock received from Cox Communications, Inc. in exchange for an entity owning cable systems and
certain other assets. .
AT&T accounts for treasury stock as retired stock, and as of December 31, 2000 and 1999, had 417 million an'd 288 million treasury shares,
respectively, of which 346 milJion and 216 million shares, respectively, were owned by AT&T Broadband subsidiaries. In addition, 70 million
treasury shareS related to the purchase of AT&T shares previously owned by liberty Media Group.
We have 100 million au!horized s.h~res o~ psefe.rred stock a~ $1 ,par .~a!ue .. N? prel~r!ed. sto~~ was is.s~ed
Of.
au.tstanding.
The notes are an integral part of the consolidated financial statements.
32
TRE - 495
AT&T.CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
','
.
~ ,:_
For the Years Ended
December 31,
. 2000
1999
---
-1998
--
Dollars in millions
OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deduct: Income from discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of discontinued operations ... . . . . . . . . . . . . . . , . . . . . . . . . . . ....
Add:
Extraordinary loss on retirement of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
.
.
.
$ 4,669
Income from continuing operations . . . . .'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ", . ", " ..
4,669
Adjustments to reconcile net income to net cash provided
$ 3,428
--3,428
$ 6,398
10
1,290
137
. 5,235
by operating activities of continuing
operations:
Net gains on sales of businesses and investments . ... '.' . . . . . . . . . . . . . . . . . . . . ..... .
Net restructuring and other charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . ...... ".
Depreciation and amortization . . . . . , . . , . . . . . . . . , .. , . . . . . . . , , . , , . . . . . . . . .. , .
Provision for uncollectible receivables .. , , , , . . . . . . , , . , . . . . . . . . . . . , . . . . . . . . . . ' "
Oeferred income taxes . . . . . . . , , . . . . . . . . . . . . . , . . . . . . . . . , . . . . . . , . . . . . . . . . .
Minority interest (income) expense .. . . . . , , . . . . . . . . . . . , . , . . . . . . . . . . . , , " . . . . . .
Net equity (earnings) losses from Uberty Media Group .. , ... , . . . . . ,." . . . . , .. " .. ,'
Net losses from other equity investments ... " , , . . . . . . . . , . , . " ... '... , , .. ".' . . . . ". . . . "
. Increase in receivables. . . , , , , , . . . . . . . . , . , , , . . . . . . . . , . . . . , . . . . .- . . . , , . . . . .
(Decrease) increase in accounts payable . . . . . . . . . , . . . . . . . . . . . . . _.. , . . . . . ',' .. , ..
Net change in other operating assets and liabilities . . .. , .. : ... : . . . . . . . . . , . . . . . , .. : , .
Other adjustments, net. . , . , . . . . . . . . . . . , . . . . . . . . . . . . . . . . . : . . . . . ', "". , . . .. : ..
(1,683)
6,793
10.267
1,393
1,054
(4,357)
(1,488)
395
(3,350)
(773)
4
383
NET CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING OPERATIONS ........... .
13,307
-11,521
--
(15,524)
600
(1.052)
(247)
96
(14,306)
286
17
(6)
INVESTING ACTIVITIES
Capital expenditures and other additions. , . . . . . . . . . . . . . , . . . . . . . . . . . , . , , . , . . . . . . .
Proceeds from sale or disposal of property, plant and equipment , . " , . , . . . .. " . , , , . . . . . . ..
(Increase) decrease in other receivables . . . . . . , . . . . . . . . . , . , . , . . . . . . . . . . . , ... .
Net acquisitions of licenses , , , . , . . . . . . . . . . , , , , , . . . . . . . , . . . , ... , . . . . . , . . . , , .
Sales of marketable securities . . . . . . . . . . . , . . . . . . . . . . . . " . . . . . . . . . . . , . " . . . . .
Purchases of marketable securities ,. , .. , . . . . . . . . . , . . . . . . ; . . ", , , .. , . , . . . . , ... , ,
Equity investment distributions and sales. , . . . . . . . . . , ... , . . . . . . . . . . ' , . " . . . . . . . . . "
Equity investment contributions and purchases, , , . . . . . . . . . . . . . . . . . , . . . . . . . , . , . . . . .
Net (acquisitions) dispositions of businesses including cash acquired ., . . . . . . . . . . , . , . , ... .
Other investing activities, net . . . . . . . . . . . . , , , , . . . . . . . , . , . , .". ' ... ' . . . . . . . . , . -.. .
(3,412)
·(21,410)
(337)
NET CASH (USEO IN) PROVIDED BY INVESTING ACTIVITIES OF CONTINUING OPERATIONS .. : .•.
(39,934)
1,352
FINANCING ACTIVITIES
4,601
(2,118)
Proceeds trom long-term debt issuances. . . , . . . . . . . . . , . . . ;" ... : . . . , . . . . , . . .' . . . . . . . .
Retirement of long-term debt .. . . , , . , . . . . . . . . . . . , , . . . . ". . . . . . . . . . . , . . " . . . . . . .
Issuance of convertible securities . . . . . , . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . ,.
Redemption of redeemable securities . . .. , . . . . . . . .. , . , , . . . . . . . . . " , . . . , . . . . . , " . ' ,
Issuance of AT&T common shares . ... , .. , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuance of AT&T Wireless Group common shares . . . . . . , .. , . . . . . . . . . . , ... , . . . . . . . .
Net acquisition of treasury shares ... , , . . . . . . . . . . . . , . . . . . . . . . . . . . ; .. , . . . . . . . . .
Dividends paid on common stock . . . . . , . . . . . . . . , . . . . . . . . . . . , . . . . . . . . . . . . . . . . ,
Dividends on preferred securities . . . . . . . "... , . . . . . . . . . . . . . . . . . . -. . . . , . . . . , . , ... ,
Increase (decrease) in short-term borrowings, net . . . . , , . . . . . . . . . . . . .- . . . . , . . . . . . . . , .
Other finanCing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . '.' .. , : . . . . . . . . , . . ,-... ' .
(152)
99
10,314
(581)
(3,047)
(294)
16,973
(66)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS ..
25,729
(682)
1,209
7,439
1,416.
145
8
2,022
1,155
(2,891)
116
(1,679)
(1651 .
---
Cash and cash equivalents at end of year . . . . . ". ~ . . . . ". ,". : . . . . . . . . . . . , , ' . . . . . . . . . .
$
10,217
(7,817)
104
6,403
(971
2,003
(1,696)
1,516
(1,281)
4,507
(60)
-(27.043)
-8,396
(2,807) :.
4,638
3,582
. ·17
(2,610)
32
.
(4,624)
(2,712)
(135)
10,238
. 392
. (3,321)
(2,187)
(3,033)
53
---
13.386
(11,049)
(898)
1,024
(2,136)
3,160
92
2,842
318
126
$ 1,024
$ 3,160
The notes are an integral part of the consolidated financial statements.
TRE - 496
---
1,875
---
~
33
68
(1,577)
(467)
5
(285)
(8,121)
(6,711)
(77)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS . . . . . . . . . . . . . . . . • . . . . • . . . . . . .
Net (decrease) increase in cash and cash equivalents . . . . . . . . , . . . . . ' . . . . . . . , . , " . . . . .
Cash and cash equivalents at beginning of year , . . . . . . . . . . . . , , . . . . . . . . . , . . . . , . , .. .
(959)
2,362
4,629
: 1,389
(128)
(55)
AT&T CORP. AND SUBSIDIARIES' (AT&l)
NOTES TO CONsoLIDATED-FINANCIAL STATEMENTS
Dollars in millions unless otherwise noted (except per share amounts)
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CONSOLIDATION
The consolidated financial statements include all controlled subsidiaries, All significant intercompany
accounts and transactions have been eliminated in consolidation. Investments in majority-owned subsidiaries
where control does not exist and investments in which we exercise significant influence but do not control
(generally a 20% to 50% ownership interest) are accounted for under the equity method of accounting, This
represents the majority of our investments. Investments in which we have less than a 20% ownership interest
'and in which there is no significant influence are accounted for under the cost method of accounting,
FOREIGN CURRENCY TRANSLATION
For operations outside the United States that prepare financial statements in currencies other than the
U.s. dollar, we translate income statement amounts at average exchange rates for the year, and we translate
assets and liabilities at year-end exchange rates, We present these translation adjustments as a component of
accumulated other comprehensive income within shareowners' equity. Gains and losses from foreign currency
transactions are included in results of operations.
REVENUE RECOGNITION
We recognize long distance, local and wireless services revenue based upon minutes of traffic processed
or contracted fee schedules. Cable installation revenue is recognized in the period the installation services are
provided to the extent of direct selling costs. Any remaining amount is deferred and recognized over the'
estimated average period that customers are expected to remain connected to the cable distribution systems.
Customer activation fees, along with the related costs, are deferred and amortized over the customer
relationship period. The revenue and related expenses associated with the sale of wireless handsets and
accessories are recognized when the products are delivered and accepted by customers, as this is
considered to be a separate earnings process from the sale of wireless services. We recognize other products
and services revenue when the products are delivered and accepted by customers and when services are
provided in accordance with contract terms. During 2000, we adopted Securities and Exchange
Commission (SEC) Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements"_ The
adoption did not have a material impact on our results of operations or financial condition_
ADVERTISING AND PROMOTIONAL COSTS
We expense costs' of advertising and promotions, including cash incentives used to acquire customers, as
incurred. Advertising and promotional expenses were $1,995, $1,804 and $1,920 in 2000, 1999 and 1998,
respectively. Of these amounts, $288, $320 and $622 were cash incentives to acquire customers in 2000,
1999 and 1998, respectively.
INVESTMENT TAX CREDITS
We amortize investment tax credits as a reduction to the provision for income taxes over the useful lives
of the assets that produced the credits.
CASH EQUIVALENTS
We consider all highly liquid investments with original maturities of generally three months or less to be
cash equivalents.
34
TRE - 497
-,
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
PROPERTY, PLANT AND EQUIPMENT
We state property, plant and equipment at cost and determine depreciation based upon the assets'
estimated useful lives using either the group or unit method. The useful lives of communications and network
equipment range from three to 15 years. The useful lives of other equipment ranges from three to seven
years. The useful lives of buildings and improvements range from 10 to 40 years. The group method is used
for most depreciable assets, including the majority of communications and network equipment. When we sell .
or retire assets depreciated using the group method, the cost is deducted from property, plant and equipment
and charged to accumulated depreciation, without recognition of a gain or loss. The unit method is primarily
used for large computer systems and support assets. When we sell assets that were depreciated using the
unit method, we include the related gains or losses in other income.
i
We use accelerated depreciation methods primarily for certain high-technology computer-processing
equipment and digital equipment used in the telecommunications network, except for switching equipment
placed in service before 1989, where a straight-line method is used. All other plant and equipment, including
capitalized sciftware, is depreciated on a straight-line basis.
LICENSING COSTS
Licensing costs are costs incurred to acquire cellular and personal communications services (peS)
licenses. Amortization begins with the commencement of serv',ce to customers and is computed usi ng the
straight-line method over periods of 35 or 40 years ..
FRANCHISE COSTS
Franchise costs include the value attributed to agreements with local authorities that allow access to
homes in cable service areas acquired in connection with business combinations. Such amounts are
amortizeq on a straight-line basis over 40 years.
GOODWILL
Goodwill is the' excess of the purchase price over the fair value of net assets acquired in business
combinations accounted for under the purchase method. We amortize goodwill on a straight-line basis over
. the periods benefited, ranging from five to 40 years.
SOFTWARE CAPITALIZATION
Certain direct development costs associated with intermil-use software are capitalized, including external
direct costs of material and services, and payroll costs for employees devoting time to the software projects.
These costs are included within other assets and are amortized over a period not to exceed five years
beginning when the asset is substantially ready for use. Costs incurred during' the prelim',nary project stage, C
as well as maintenance and training costs, are expensed as incurred. AT&T also capitalizes initial operatingsystem software costs and amortizes them over the life of the associated hardware.
AT&T also capitalizes costs associated with the development of application software incurred from the
time technological feasibility is established until the software is ready to provide service to customers. These
capitalized costs are included in property, plant and equipment and are amortized over a useful life not to
exceed iive years.
35
TRE - 498
" 'i
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO.CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
VALUATION OF LONG-LIVED ASSETS
Long-lived assets, such as property, plant and equipment, licensing costs, franchise costs, goodwill,
investments and software, are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. If the total of the expected future undiscounted cash flows
is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value
and carrying value of the asset. In addition, in accordance with Accounting PrinCiples Board (APB) Opinion
No. 17, "Intangible Assets", we continue to evaluate the amortization periods to determine whether events or
circumstances warrant revised amortization periods.
\
DERIVATIVE FINANCIAL INSTRUMENTS
We use various financial instruments, including derivative financial instruments, for' purposes other than
trading. We do not use derivative financial instruments for speculative purposes. Derivatives, used as part of
our risk-management strategy, must be designated at inception as a hedge and measured for effectiveness
both at inception and on an ongoing basis. Gains and losses related to qualifying hedges of foreign currency
firm commitments are deferred in current assets or liabilities and recognized as part of the underlying
transactions as they occur. All other foreign exchange contracts are marked to market on a current basis, and
the respective gains or losses are recognized in other income. Interest rate differentials associated with
interest rate swaps used to hedge AT&T's debt obligations are recorded as an adjustment to interest payable
or receivable, with the offset to interest expense over the life of the swaps. If we terminate an interest rate
swap agreement, the gain or loss is deferred and amortized over the remaining life of the liability. Cash flows
from financial instruments are classified in the ConSOlidated Statements of Cash Flows under the same
categories as the cash flows from the related assets, liabilities or anticipated transactions.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure 'of contingent assets and liabilities at the date of the financial statements, and revenue
and expenses during the period reported. Actual results could differ from those estimates. Estimates are used
when accounting for certain items such as long-term contracts, allowance for doubtful accounts, depreci?tion
'
and amortization, employee benefit plans, taxes, restructuring reserves and contingencies.
. i
CONCENTRATIONS
As of December 31, 2000, we do not have any significant concentration of business transacted with a
particular customer, supplier or lender that could, if suddenly eliminated, severely impact our operations. We
also do not have a concentration of available sources of labor, services, franchises, or licenses or other rights.
that could, if suddenly eliminated, severely impact our operations. We invest our cash with several high-quality
credit institutions.
.
ISSUANCE OF COMMON STOCK BY AFFILIATES
-
Changes in our proportionate 'share of the underlying equity of a subsidiary or equity method investee,
which result from the issuance of additional equity securities by such entity, are recognized as increases or
decreases to additionai paid-in capital in the Consoiidated Statements of Shareowners' Equity.
36
TRE - 499
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
RECLASSIFICATIONS AND RESTATEMENTS
We reclassified certain amounts for previous years to conform to the 2000 presentation. In addition, we
restated prior year share and per share amounts to reflect the June 2000 two-lor-one split of liberty Media
Group common stock.
2.
RESTRUCTURING OF AT&T
On October 25, 2000, we announced a restructuring plan designed to fully separate or issue separately
tracked stocks intended to reflect the financial performance and economic value of each of AT&T's four major
operating units. Upon completion of the plan, AT&T Wireless, AT&T Broadband, AT&T Business and AT&T
Consumer will all be represented by asset-based or tracking stocks.
As part of the first phase of the restructuring plan, we are planning an exchange offer that will give AT&T
shareowners the opportunity to exchange any portion of their AT&T common shares for shares of AT&T
Wireless Group tracking stock, subject to pro-ration. Following the exchange offer and subject to specified
conditions, AT&T plans to split-off AT&T Wireless Group from AT&T. We intend, however, to retain up to $3
billion of shares of AT&T Wireless for future sale, exchange or monetization within six months following the
split-off. We expect AT&T Wireless will become an independent, publicly-held company in mid-2001, upon
receipt of appropriate tax and other approvals.
In addition to the spilt-off of AT&T Wireless, we intend to fully separate or issue separate tracking stocks
to reflect the financial performance and economic value of each of our other major business units. We plan to
create and issue new classes of stock to track the financial performance and economic value of our AT&T
Broadband unit and AT&T Consumer unit. We plan to sell some percentage of shares of the AT&T Broadband
unit in the fall of 2001. Within 12 months of such sale. we intend to completely separate AT&T Broadband
from AT&T, as an asset· based stock. The AT&T Consumer tracking stock is expected to be fully distributed to
AT&T shareowners in the second half of 2001.
AT&T expects that these transactions will be tax-free to U.S. shareholders. AT&T's restructuring plan is
complicated and involves a substantial number of steps and transactions, including obtaining various
conditions, such as Internal Revenue Service (IRS) rulings. In addition, future financial conditions, superior
alternatives or other factors may arise or occur that make it inadvisable to proceed with part or all of AT&T's
restructuring plans. Any or all of the elements of AT&T's restructuring plan may not occur as we currently
expect or in the timeframes that we currently contemplate, or at all. Alternative forms of restructuring, including
sales of interests in these businesses, would reduce what is available for distribution to shareowners in the
restructuring.
On November 15, 2000, AT&T announced that our board of directors voted to split·off Liberty Media
Group (LMG), which we acquired through our acquisition of Tele-Communications, Inc. A new asset-based
security will be issued to holders of LMG tracking stock in exchange for their LMG tracking shares. The splitoff remains SUbject to receipt of a favorable tax ruling from the IRS. We expect this split-off to be completed in
mid-20D1.
37
TRE - 500
AT&T CORP. AND SUBSIDIARIES (AT&1)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
3.
SUPPLEMENTARY FINANCIAL INFORMATION
SUPPLEMENTARY INCOME STATEMENT INFORMATION
For the Years Ended December 31,
2000
INCLUDED IN SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Research and development expenses ................................. .
$ 402
$ 514
1,683
(537)
(248)
102
Total other income ............................................... .
$1,514
DEDUCTED FROM INTEREST EXPENSE
Capitalized interest ............................................... .
$ 299
=
1998
$550
$ 513
$222
682
$ 389
959
(40)
67
(67)
=
OTHER INCOME
Investment-related income .......................................... .
Net gains on sales of businesses and investments ........................ .
Mark·to-market charge on put options ................................. .
Investment impairment charges ...................................... .
Miscellaneous, net ............................................... .
1999
-$931
=
$1,281
$143
$ 197
=
SUPPLEMENTARY BALANCE SHEET INFORMATION
AI December 31,
2000
1999
$ 74,550
8,951
531
$ 60,985
8,104
586
84,032
(32,871 )
69.675
(30,057)
PROPERTY, PLANT AND EQUIPMENT
Communications, network and other equipment ............................. .
Buildings and improvements .......................................... .
Land and improvements .............................................. .
Total property, plant and equipment ..................................... .
Accumulated depreciation ............................................ .
Property, plant and equipment, net ....... : .............................. .
$ 51,161
$ 39,618
SUPPLEMENTARY SHAREOWNERS' EQUITY INFORMATION
For the Years Ended December 31,
2000
OTHER COMPREHENSIVE INCOME
Net foreign currency translation adjustment [net of income taxes of $(181), $87 and
$(3)] ....................................................... .
Net revaluation of securities [net of income taxes of $(5,166), $4,506 and $(35)] .. .
Net minimum pension liability adjustment [net of income taxes of $(1), $7 and
$(15)) ....................................................... .
Total other comprehensive income ................................... .
1999
---
1998
$ (309) $ 148
(8,067)
6,878
$ (5)
(25)
(1 )
- -12
- - -9
$(6,377) $7,038
$(21)
In 2000, other comprehensive income included LMG's foreign currency translation adjustments totaling $(202). net of applicable
income taxes, revaluation 01 LMG's available-for-sale securities totaling $(6,117), net of applicable income taxes, and the recognition of
previously unrecognized available-for-sale securities totaling $(635), net of applicable income taxes.
othe~
compiehsnsh/6 inCOff!!:! induded LMG's foreign currency translation adjustments totaling $60. net of applicable
!n 1999,
income taxes, and revaluation of LMG's available-for-sale securities totaling $6,497, net of apphcable income taxes.
38
TRE - 501
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
SUPPLEMENTARY CASH FLOW INFORMATION
2000
For the Years Ended December 31,
Interest payments, net of amounts capitalized .......................... .
Income tax payments ............................................ .
4.
$3,453
1,976
1999
1998
$1,425' $ 422
3,906
2,881
MERGERS WITH MEDIAONE GROUp, INC. AND TELE-COMMUNICATIONS, INC.
MERGER WITH MEDIAONE GROUp, INC.
On June 15, 2000, AT&T completed a merger with MediaOne Group, Inc. (MediaOne) in a cash and stock
transaction valued at approximately $45 billion. For each share of MediaOne stock, MediaOne shareowners
received, in the aggregate, 0.95 of a share of AT&T common stock and $36.27 per share in cash, consisting
of $30.85 per share as stipulated in the merger agreement and $5.42 per share based on AT&T's stock price
preceding the merger, which was below a predetermined amount. AT&T issued approximately 603 million
shares of common stock in the transaction, of which approximately 60 million were treasury shares. The AT&T
shares had an aggregate market value of approximately $21 billion and cash payments totaled approximately
$24 billion.
The merger was accounted for under the purchase method. Accordingly, the results of MediaOne have
been included in the accompanying consolidated finanCial statements since the date of acquisition as part of
our Broadband segment.
Approximately $16 billion of the purchase price of $45 billio,; has been attributed to ag;eements with local
franchise authorities that allow access to homes in our broadband service areas ("franchise costs") and is
being amortized on a straight-line basis over 40 years. Also included in the purchase price was approximately
$22 billion related to nonconsolidated investments, including investments in Time Warner Entertainment
Company, L.P (TWE) and Vodafone Group pic (Vodafone), approximately $5 billion related to property, plant
and equipment, and approximately $7 billion of other net assets. In addition, included was approximately $14
billion in deferred income liabilities, approximately $10 billion attributable to MediaOne debt, and
.
approximately $1 billion of minority interest in Centaur Funding Corporation, a subsidiary of MediaOne. The
purchase resulted in preliminary goodwill of approximately $20 billion, which is being amortized on a straightline basis over 40 years. AT&T may make refinements to the allocation of the purchase price in future periods
as the related fair value appraisals 01 certain assets and liabilities are finalized.
MERGER WITH TELE-COMMUNICATIONS, INC.
On March 9, 1999, AT&T completed a merger with Tele-Communications, Inc. (TCI). renamed AT&T
Broadband, in an all-stock transaction valued at approximately $52 billion. Each share of TCI Group Series A
common stock was converted into 1.16355 shares of AT&T common stock, and each share oITCI Group
Series B common stock was converted into 1.27995 shares of AT&T common stock. AT&T issued
approximately 664 million shares of common stock in the transaction, of which approximately 149 million were
treasury shares. The AT&T shares had an aggregate market value of approximately $27 billion. Certain
subsidiaries of TCI held TCI Group Series A common stock, which was converted into 216 million shares of
AT&T common stock. These subsidiaries continue to hold these shares, which are reflected as treasury stock
in the accompanying Consolidated Balance Sheets.
39
TRE - 502
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOUDATED FINANCIAL STATEMENTS (Continued)
Dollars In millions unless otherwise noted (except per share amounts)
In addition, TCI simultaneously combined its Liberty Media Group programming business with its TCI
Ventures Group technology investment business, forming LMG. In connection with the closing, AT&T issued
separate tracking stock in exchange for the TCI Liberty Media Group and TCI Ventures Group tracking shares
previously outstanding. We issued 2.280 million shares of Liberty Media Group Class A tracking stock
(including 120 million shares related to the conversion of convertible notes) and 220 million shares of Liberty
Media Group Class B tracking stock. The tracking stock is designed to reflect the separate financial
performance and economic value of LMG. These shares had an aggregate market value of approximately
$23 billion.
AT&T does not have a controlling financial interest for financial accounting purposes in LMG. Therefore,
our investment in LMG has been reflected as an investment accounted for under the equity method in the
accompanying consolidated financial statements. The amounts attributable to LMG are reflected as "Equity
earnings (losses) from Liberty Media Group" and "Investment in Liberty Media Group and related receivables,
net" in the accompanying consolidated financial statements. As a separate tracking stock, all of the earnings
or losses related to LMG are excluded from the earnings available to the holders of AT&T common stock.
Each share of Uberty Media Group Class A common stock is entitled to 0.0375 of a vote, and each share
of Uberty Media Group Class B common stock is entitled to 0.375 of a vote.
The TCI merger was accounted for under the purchase method. Accordingly, the results of TCI have been
included in the financial results of AT&T since the date of acquisition. The operating results of Tel have been
included in the accompanying consolidated finanCial statements at their fair value since March 1, 1999, the
deemed effective date of acquisition for accounting purposes. The impact of the results from March 1 through
March 9, 1999, were deemed immaterial. to our consolidated results.
Approximately $20 billion of the purchase price of $52 billion was attributed to franchise costs and is
being amortized on a straight-line basis over 40 years_ Pursuant to Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes," AT&T recorded an approximate $13 billion
deferred tax liability in connection with this franchise intangible, which is also included in franchise costs. We
do not expect that this deferred tax liability will ever be paid. This deferred tax liability is being amortized on a
straight-line basis over 40 years and is included in the provision for income taxes. Also included was
approximately $11 billion related to nonconsolidated investments, approximately $5 billion related to property,
plant and equipment, approximately $11 billion of TCI long-term debt and approximately $7 billion related to
other net liabilities. In addition, our investment in LMG was recorded at approximately $34 billion, including
approximately $11 billion of goodwill that is being amortized on a straight-line basis over 20 years as a
component of "Equity earnings (losses) from Uberty Media Group."
40
TRE - 503
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars In millions unless otherwise noted (except per share amounts)
Following is a summary of the pro forma results of AT&T as if the mergers
closed effective January " 1999:
w~h
MediaOne and TCI had
For the Years Ended December 31,
1999
2000
Shares in millions
(Un.udhod)
Revenue ............................................. .
Net income ......•.........•..•. , •......... " .........•
Weighted-average AT&T common shares .....•••.•...•..•......
Weighted·average AT&T common shares
and potential common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . .•
Weighted·average AT&T Wireless Group shares .................. .
Weighted-average Liberty Media Group shares ...•...............
AT&T Common Stock Group earnings per common share:
Basic ....... , ....•...........••.....•.. , ........... .
Diluted ................................•.............
AT&T Wireless Group earnings per common share:
Basic and diluted .................••..........•.....•..
Liberty Media Group earnings (loss) per share:
Basic and diluted ..................................... .
$67,306
5,617
3,762
$66,236
6,452
3,784
3,821
361
2,572
3,906
$
1.08
1.07
$ 2.30
$ 2.23
$
0.21
$
$
0.58
$ (0.89)
$
2,519
Pro forma data may not be indicative of the results that would have been obtained had these events
actually occurred at the beginning of the periods presented, nor does ~ intend to be a projection of future
,results.
5.
OTHER MERGERS, ACQUISITIONS, STOCK OFFERING, VENTURE, DISPOSITIONS AND
DISCONTINUED OPERATIONS
AB CELLULAR
On December 29, 2000, AB Cellular completed the redemption of AT&T's eqUity interest in AB Cellular.
Prior to that date, AT&T held a 55.62% equity interest in AB Cellular, which was formed in 1998 with BeliSouth,
with each party having a 50% voting interest. AB Cellular owned, controlled and supervised wireless properties
in Los Angeles, Houston, and Galveston, Texas. BeliSouth exercised an option available to ~, which resulted in
AB Cellular redeeming AT&T's interest in AB Cellular in exchange for 100% of the net assets of the Los
Angeles property. AB Cellular recognized a significant gain upon completion of the transaction. Accordingly,
net losses from other equity investments included $603 representing our portion of this gain, and other
income included a net pretax loss of $184 related to the difference between the carrying value of our
investment in AB Cellular and the fair market value of the Los Angeles property. As a result of this transaction,
we consolidated the Los Angeles property. The consolidation resulted in licensing costs of $2.2 billion,
goodwill of $0.8 billion, other net assets of $0.6 billion and the removal of our investment in AB Cellular of
$3.8 billion.
TELECORP PCS, INC.
On November 13, 2000, two of AT&T's wireless affiliates, TeleCorp PCS, Inc. (TeleCorp) and Tritel, Inc.,
merged as part of a stock transaction. In connection with the merger, AT&T contributed to TeleCarp rights to
acquire wireless licenses in Wisconsin and Iowa, paid approximately $20 in cash and extended the term of ~
brand license agreement through July 2005, in exchange for approximately 9.3 million additional common
shares in the newly merged entity. In a separate transaction, AT&T exchanged certain add~ional wireless
licenses and rights to acquire licenses in the Wisconsin and Iowa markets, and made a cash payment of
approximately $80 for cartain TeleCorp PCS licenses and wireless systems in several New England markets.
41
TRE - 504
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
These transactions resulted in a net pretax gain of $379. The acquisition of the wireless systems was
accounted for under the purchase method. The pro forma impact of the wireless systems on historical AT&T
results is not material.
AT HOME CORPORATION
On August 28, 2000, AT&T and At Home Corporation (Excite@Home) announced shareholder approval of
a new board of directors and governance structure for Excite@Home and completion of the extension of
distribution contracts with AT&T, Cox Communications, Inc. (Cox) and Comcast Corporation (Comcast). AT&T
was given the right to designate six of the 11 Excite@Home board members. In addition, Excrte@Home
converted approximately 50 million of AT&T's Series A shares into Series B shares, each of which has 10
votes. As a result of these governance changes, AT&T gained a controlling interest and began consolidating
Excite@Home's results upon the closing of the transaction on September 1, 2000. As of December 31, 2000,
AT&T had, on a fully diluted basis, approximately 23% of the economic interest and 74% of the voting interest
in Excite@Home.
In exchange for Cox and Comcast relinquishing their rights under the shareholder agreement, AT&T
granted put options to Cox and Comcast on a combined total of 60.4 million shares of Excite@Home Series A
common stock. The put options provide Cox and Comcast with the right to convert their Excite@Home shares
into either AT&T stock or cash at their option, at any time between January 1, 2001 and June 4, 2002, at the
higher of (i) $48 per share or (ii) the 30-day average trading price at the time of exercise (beginning 15 trading
days prior to the exercise date, and ending 15 days after the exercise date). The maximum amount that AT&T
would be required to pay in cash or stock is approximately $2.9 billion based on the $48 strike price. The
obligation under these put options was recorded at fair value, with gains or losses resulting from changes in
fair value being recorded as a component of other income. For the year, changes in fair market value resu~ed
in a pretax expense of $537. Subsequent to December 31, 2000, Cox and Comcast exercised their put
options, electing to receive AT&T common shares (see Note 22).
Also, in connection with the distribution agreements which extend through 2008, AT&T obtained the right
to purchase up to approximately 25 million Excrte@Home Series A shares and 25 million Series B shares. In
addition, Cox and Com cast will each receive new warrants to purchase two Series A shares for each home its
cable system passes. These warrants will vest in installments every six months beginning in June 2001, and
will be fully vested by June 2006 if Cox and Corncast elect to continue their extended non-exclusive
distr.ibution agreernents through that period.
The consolidation of Excite@Home resulted in minority interest of approximately $2.2 billion, goodwill 01
approximately $2.4 billion, short-term liabilities of approximately $2.4 billion (including an initial put option
liability), other net assets 01 approximately $1.2 billion and the removal of our investment in Excite@Home of
approximately $1.9 billion.
AT&T WIRELESS GROUP
On April 27, 2000, AT&T created a new class of stock and completed a public stock offering of 360
million shares, which represented 15.6% 01 AT&T Wireless Group tracking stock at a price of $29.50 per
share. This stock is intended to track the financial performance and economic value of AT&T's wireless
services' business. The net proceeds to AT&T after deducting underwriter's discount and related lees and
expenses were $10.3 billion. AT&T allocated $7.0 billion of the net proceeds to AT&T Wireless Group, which
were used for acquisitions, network expansion, capital expenditures and for general corporate purposes. The
remaining net proceeds 01 $3.3 billion were utilized by AT&T lor general corporate purposes. Holders of AT&T
Wireless Group tracking stock are entitled to one-half of a vote per share. The AT&T Wireless Group tracking
stock is listed on the New York Stock Exchange under the symbol "AWE."
42
TRE - 505
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars In millions unless otherwise noted (except per share amounts)
COX COMMUNICATIONS, INC.
On March 15,2000, AT&T received 50.3 million shares of AT&T common stock held by Cox in exchange
for an entity owning cable television systems serving approximately 312,000 customers and certain other net
assets. Specifically, AT&T exchanged $1.1 billion of investments and related advances, $0.9 billion of franchise
costs and $0.5 billion of other net assets for stock valued at $2.7 billion on March 15, 2000. The transaction
resulted in a pretax gain of $1 B9.
LENFEST COMMUNICATIONS, INC.
On January 18, 2000, AT&T sold its ownership in Lenfest Communications, Inc. to a subsidiary of
Comcast. In connection with the sale, we received 47.3 million shares of Comcast Class A Special common
stock. The transaction resulted in a pretax gain of $224.
CONCERT
On January 5, 2000, AT&T and British Telecommunications pic (BT) announced financial closure of
Concert, their global communications joint venture. AT&T contributed all of its international gateway-togateway assets, as well as the economic value of approximately 270 multinational customers specifically
targeted for direct sales by Concert.
ACC EUROPE
On November 5, 1999, AT&T sold ACC Corp. (ACC) in Europe, including ACC's principal operations in
the United Kingdom as well as ACC's operating companies in France, Germany and Italy, to
WORLDxCHANGE Communications. We were required to dispose of this investment pursuant to a government
mandate since it would have competed directly with Concert. The transaction resulted in a pretax loss of
$179.
IBM GLOBAL NETWORK
On April 30, 1999, AT&T completed its acquisition of the IBM Global Network business (renamed AT&T
Global Network Services or AGNS) and its assets in the United States. The non-U.S. acquisitions were
completed in phases throughout 1999 and during the first quarter of 2000. Under the terms of the agreement,
AT&T acquired the global network of IBM, and the two companies entered into outsourcing agreements with
each other. The acquisition was accounted for under the purchase method. Accordingly, the operating results
of AGNS have been included in the accompanying consolidated financial statements since the date of
acquisition. The pro forma impact of AGNS on historical AT&T results is not material.'
TELEPORT COMMUNICATIONS GROUP INC.
On July 23, 199B, AT&T completed a merger with Teleport Communications Group Inc. (TCG) pursuant to
an agreement and plan of merger dated January B, 199B. Each share of TCG common stock was exchanged
for 1.4145 shares of AT&T common stock, resulting in the issuance of 272.4 million shares in the transaction.
The merger was accounted for as a pooling of interests, and accordingly, AT&T's results of operations,
financial position and cash flows were restated to reflect the merger. In 199B, we recognized $85 of mergerrelated expenses. Premerger TCG revenue was $455, and net losses were $11 B, for the six months ended
June 30, 1998. Elimination entries between AT&T and TCG were not material. On April 22, 1998, TCG
purchased ACC for an aggregate value of approximately $1,100, including approximately $700 in goodwill.
OTHER DISPOSITIONS
On March 3, 199B, AT&T sold its 45% common share interest in LIN Television Corp., a subsidiary of UN
Broadcasting Company, for $742 to Hicks, Muse, Tate and Furst Inc. We recognized a pretax gain of $317.
43
TRE - 506
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Also on March 3,1998, AT&T sold AT&T Solutions Customer Care to MATRIXX Marketing Inc., a teleservices
unit of Cincinnati Bell, for $625. AT&T recognized a pretax gain of $350 in 1998 on the sale.
DISCONTINUED OPERATIONS
On April 2. 1998, AT&T sold AT&T Universal Card Services Inc. (UCS) for $3,500 to Citigroup, Inc. The
after-tax gain resulting from the disposal of UCS was $1,290, or $0.48 per diluted share. Included in the
transaction was a cobranding and joint-marketing agreement. In addition, we received $5,722 in settlement of
receivables from UCS.
The consolidated financial statements of AT&T reflect UCS as a discontinued operation. Accordingly, the
revenue. costs and expenses, and cash flows of this business have been excluded from the respective
captions in the 1998 Consolidated Statement of Income and Consolidated Statement of Cash Flows, and have
been reported through the date of disposition as "Income from discontinued operations," net of applicable
income taxes, and as "Net cash provided by discontinued operations" for all periods presented. The gain
associated with this sale is reflected as "Gain on sale of discontinued operations," net of applicable income
taxes.
Summarized financial information for UCS was as follows:
For the Year Ended December 31,
1998
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Income before income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$365
16
10
No interest expense was allocated to UCS in 1998 due to the immateriality of the amounts; however, UCS
recorded direct interest expense of $85 in 1998, primarily related to amounts payable to AT&T.
ACQUISITION-RELATED INTANGIBLE ASSETS
As a result of our evaluation of recent changes in our industry and the views of regulatory authorities,
AT&T expects that the amortization period for all licensing costs, franchise costs, and goodwill associated with
newly acquired wireless, telecommunications, and cable operations will not exceed 25 years.
6.
EARNINGS PER COMMON SHARE AND POTENTIAL COMMON SHARE
Income (loss) from continuing operations attributable to the different classes of AT&T common stock is as
follows:
For the Years Ended December 31,
AT&T Common Stock Group ......................... .
AT&T Wireless Group .............................. .
Liberty Media Group ............................... .
Income from continuing operations .................... .
-2000
--
1999
1998
$3,105
76
1,488
$ 5,450
$5,235
$4,669
$ 3,428
=
(2,022)
$5,235
Basic earnings per share (EPS) for AT&T Common Stock Group for 2000, 1999 and 1998 were co'mputed
by dividing AT&T Common Stock Group income by the weighted-average number of shares outstanding
during the year.
44
TRE - 507
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Diluled EPS for AT&T Common Stock Group was computed by dividing AT&T Common Stock Group
income, adjusted for the conversion of securities, by the weighted-average number of shares and dilulive
polential shares oulstanding during the year, assuming conversion of the potential shares at the beginning of
the years presented. Shares issuable upon conversion of preferred stock of subsidiaries, convertible debt
securities 01 subsidiary, stock options and other performance awards have been included in the diluled
calculation of weighted-average shares to the extent thai Ihe assumed issuance of such shares would have
been dilutive, as illuslrated below. The convertible quarterly income prelerred securities were antidilutive and
were excluded from the computation of diluted EPS. Computed on a yearly basis, the dividends would have
an after-tax impact to earnings of approximately $155. Assuming conversion of the securities, the dividends
would no longer be included as a reduclion to net income and the securities would convert inlo 67 million
shares of AT&T common stock.
A reconcilialion of the income and share components for basic and diluted EPS calculations with respect
to AT&T Common Stock Group continuing operations is as follows:
For the Years Ended December 31,
Income ......................................... .
Income impact of assumed conversion of preferred slock of
subsidiary ...................................... .
Income adjusted for conversion of securities ...... _ ....... .
2000
1999
1998
$3.105
$5,450
$5,235
32
$3.137
26
$5,476
$5,235
3,486
19
40
3.082
35
33
2
3,152
Shares In millions
Weighted-average common shares ..................... .
Siock options .................................... .
Preferred stock of subsidiary .......................... .
Convertible debl securities of subsidiary ................. .
Weighted-average common shares and potential common shares.
3.545
2.676
24
2,700
Basic EPS for AT&T Wireless Group for the period from April 27, 2000, the stock offering dale, through
December 31,2000, was computed by dividing AT&T Wireless Group income by the weighled-average
number of shares outstanding of AT&T Wireless Group of 361 million. There were no potentially dilutive
securities outstanding at December 31, 2000.
Basic EPS for LMG was computed by dividing LMG income (loss) by the weighted-average number of
shares outstanding of LMG of 2,572 million in 2000 and 2,519 million from the March 9,1999, date of
issuance through December 31, 1999. Potentially dilutive securities, including fixed and nonvested
performance awards and stock options. have not been factored into the dilutive calculations because past
history has indicated that these contracts are generally settled in cash. There were 96 million and 124 million
of these potentially dilutive securities outstanding at December 31, 2000 and 1999, respectively. The diluted
earnings per share calculation for 2000 also excludes approximately 700,000 warrants outstanding at
December 31, 2000, which were antidilutive. In addition, since LMG had a loss in 1999, the impact of any
potential shares would have been antidilutive.
7.
NET RESTRUCTURING AND OTHER CHARGES
During 2000, we recorded $7,029 of net restructuring and other charges, Which included $6,179 of asset
impairment charges related to Excite@Home, $759 for restructuring and exit costs associated with AT&T's
initiative to reduce costs, and $91 related to the government-mandated disposition of AT&T Communications
(U.K.) Ltd., which would have competed directly with Concert.
45
TRE - 508
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
The charges related to Excite@Home included $4,609 of asset impairment charges recorded by
Excite@Home associated with the impairment of goodwill from various acquisitions, including Excite, and a
related goodwill impairment charge of $1,570 recorded by AT&T associated with goodwill from the acquisition
of our investment in Excite@Home.
The impairments resulted from the deterioration of the market conditions and market valuations of
Internet-related companies during the fourth quarter of 2000, which caused Excite@Home to conclude that
intangible assets related to their acquisitions of Internet-related companies may not be recoverable. In
accordance with SFAS No. 121, "Accounting for the Impairment of Long·Lived Assets and for Long-Lived
Assets to be Disposed Of", Excite@Home conducted a detailed assessment of the recoverability of the
carrying amounts of acquired intangible assets. This assessment resulted in a determination that certain
acquired intangible assets, including goodwill, related to these acquisitions, including Excite, were impaired as
of December 31, 2000. As a result, we recorded impairment charges of $4,609 in December 2000,
representing the excess of the carrying amount of the impaired assets over their fair value.
The review for impairment included a review of publicly-traded Internet companies that are comparable to
the companies that Excite@Home acquired. These companies experienced a substantial decline in stock price
and market capitalization during the fourth quarter of 2000.
Excite@Home also reviewed the business climate for Internet advertising and web-based infrastructure
companies as of December 31, 2000, and observed the following: (1) investor and consumer enthusiasm for
the Internet sector severely deteriorated during the fourth quarter of 2000; (2) many Internet companies,
including those acquired by Excite@Home, experienced significant decelerations in their growth both as a
result of economic conditions and due to Internet-sector specific issues such as competition and the
weakening of the Internet advertising market: and (3) funding sources for Internet-based consumer
businesses, which require considerable amounts of capital, had substantially evaporated as of December 31,
2000. As a result, Excite@Home concluded that fundamental, permanent and significant adverse changes had
occurred during the fourth quarter of 2000 in the business climate for companies providing Internet advertising
and other web-based services.
In addition, Excite@Home reviewed operating and cash flow projections that existed at the time
Excite@Home made the acquisitions and that were used as a basis upon which the decisions to complete the
acquisitions were made. These operating and cash flow projections indicated that the acquired companies,
over their useful lives, would be profitable and generate positive cash flows. The operating and cash flow
projections were compared to operating results after the date of the acquisitions through December 31, 2000,
as well as to projected operating results for 2001. These comparisons indicated that certain acquisitions
generated operaling and cash flow losses through the end of 2000, and were projected to continue
generating operating and cash flow losses for the foreseeable future.
,
As a result of these factors, Excite@Home determined that the intangible assets related to the acquisitions
might not be recoverable and conducted impairment tests.
Generally, the impairment tests were performed at an asset group level corresponding to the lowest level
at which cash flows independent of other assets could be identified. Each asset group consisted of the
goodwill and acquired identifiable intangible assets related to a specific acquisition. Acquired intangible assets
were combined for those acquisitions where separately identifiable cash flows that are largely independent of
the cash flows of other groups of assets could not be identified.
For each of the asset groups to be tested for impairment, Excite@Home projected undiscounted cash
flows over a future projection period of five years, based on Excite@Home's determination of the current
remaining useful lives of the asset groups, plus an undiscounted terminal period cash flow to reflect
46
TRE - 509
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars In millions unless otherwise noted (except per share amounts)
disposition of the entrties at the end of their useful lives. Un discounted future cash flows were estimated using
projected net realizable value in a sales transaction (undiscounted cash flows during the expected remaining
holding period until disposition were estimated as negligible). The undiscounted future cash flows were
compared to the carrying amount of each asset group and for those asset groups where the carrying amount
exceeded the undiscounted future cash flows, Excrte@Home concluded that the asset group was impaired.
Excite@Home measured the impairment loss related to impaired asset groups based on the amount by
which the carrying amount of the asset group exceeded the fair value of the asset group. Measurement of fair
value was based on an analysis by Excite@Home utilizing the best information available in the circumstances
using reasonable and supportable assumptions and projections, and including the discounted cash flow and
market comparison valuation techniques. The discounted cash flow analysis considered the likelihood of
possible outcomes and was based on Excite@Home's best estimate of projected future cash flows, including
terminal value cash flows expected to result from the disposition of the asset at the end of its useful life,
discounted at our weighted average cost of capital. Weighted average cost of capital was based on historical
risk premiums required by investors for companies of Excite@Home's size, industry and capital structure and
included risk factors specific to Excite@Home. The market comparison model represented Excite@Home's
estimate of the prices that a buyer would be willing to pay currently for similar assets, based on comparable
products and services, customer base, risks, earnings capabilities and other factors.
Based on the foregoing, Excite@Home recorded an impairment write-down of $4,609 in the aggregate,
which was allocated to each asset group based on a comparison of carrying values and fair values. The
impairment write-down within each asset group was allocated first to goodwill, and if goodwill was reduced to
zero, to identifiable intangible assets in proportion to carrying values.
Also as a result of the foregoing, AT&T recorded a goodwill and acquistion-related impairment charge
associated with the acquisition of our investment in Excite@Home. The write-down of our investment to fair
value was determined utilizing discounted expected future cash flows.
Since we own approximately 23% of Excne@Home, 77% of the charge recorded by Excite@Home was
not included as a reduction to AT&T's net income, but rather was eliminated in our 2000 Consolidated
Statement of Income as "Minority interest income (expense)."
The $759 charge for restructuring and exit plans was primarily due to headcount reductions, mainly in
network operations and Business Services, including the consolidation of customer-care and call centers, as
well as synergies created by the MediaOne merger.
Included in exit costs was $503 of cash termination benefits aSSOCiated with the separation of
approximately 7,300 employees as part of voluntary and involuntary termination plans. Approximately one-half
of the separations were management employees and one-half were nonmanagement employees.
Approximately 6,700 employee separations were related to involuntary terminations and approximately 600 to
voluntary terminations.
We also recorded $62 of network lease and other contract termination costs associated with penalties
incurred as part of notifying vendors of the termination of these contracts during the year, and net losses of
$32 ielat6d to the disposition of facilitieS primarily due to synergies created by the MediaOne merger.
47
TRE - 510
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
The following table displays the activity and balances of the restructuring reserve account:
type
of Cost
Facility
Employee
Separation.
Closings
Other
Total
Balance at January 1, 1998 ....................
Additions .......•........................
Deductions ..............................
$ 413
150
(445)
$ 434
125
(190)
$ 60
$ 907
Balance at December 31, 1998 · ........... , ....
Additions ................................
Deductions ..............................
118
142
(110)
369
30
3
(130)
B)
517
145
(252)
Balance at December 31, 1999 · ................
Additions ................................
Deductions ..............................
150
503
(394)
239
32
(98)
21
62
(47)
410
597
(539)
· ................
$ 259
Balance at December 31, 2000
$ 173
=
(30)
$ 36
=
275
(665)
$ 468
Deductions reflect cash payments of $245, $209 and $369. for 1998, 1999 and 2000, respectively. These payments included cash
termination benefits of $124, $40 and $257, respectively, which were primarily funded through cash from operations. Deductions also·
reflect noncash utilization of $420, $43 and S170 for 1998, 1999 and 2000. respectively. Noncash utilization included deferred severance
payments primarily related to executives, and a reversal in 1998 of $348 related to the 1995 restructuring plan. Nearly 75% of the
employees affected by the 1999 and 2000 restructuring charges have left their positIOns as of December 31, 2000.
Also included in restructuring and exit costs in 2000 was $144 of benefrt plan curtailment costs associated
with employee separations as part of these exit plans. Further, we recorded an asset impairment charge of
$18 related to the write·down of unrecoverable assets in certain businesses where the carrying value was no
longer supported by estimated future cash flows.
During 1999, we recorded $1,506 of net restructuring and other charges.
A $594 in-process research and development charge was recorded reflecting the estimated fair value of
research and development projects at Tel, as of the date of acquisition, which had not yet reached
technological feasibility or had no alternative future use. The projects identif,ed related to efforts to offer voice
over Internet protocol (IP), product·integration efforts for advanced set-top devices that would enable the
offering of next·generation digital services and cost·savings efforts for broadband-telephony implementation. In
addition, Excite@Home had research and development efforts underway, including projects to allow for self·
provisioning of devices and the development of next-generation client software, network and back·office
infrastructure to enable a variety of network devices beyond personal computers, and improved design for the
regional data centers' infrastructure. We began testing IP·telephony equipment in the field in late·2000, we
anticipate beginning field trials for next-generation digital services in late-2001, and have completed trials
related to our telephony cost reductions and implementation has begun in certain markets. Although there are
technological issues to overcome to successfully complete the acquired in-process research and
development, we expect successful completion. If, however, AT&T is unable to establish technological
feasibility and produce commercially viable products/services, anticipated incremental future cash flows
attributable to expected profits from such new products/services may not be realized.
A $531 asset impairment charge was recorded in 1999 associated w~h the planned disposal of certain
wireless communications equipment resulting from a program to increase the capacity and operating
efficiency of our wireless network. As part of a multivendor program, contracts have been executed with select
vendors to replace significant portions of our wireless infrastructure equipment in the western United States
and the metropolitan New York markets. The program is intended to piOvids \A,jieless Services with the
48
TRE - 511
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOUDATED FINANCIAL STATEMENTS (Continued)
Dollars In millions unless otherwise noted (except per share amounts)
newest technology available and allow it to evolve to new, next-generation digital technology, which is
designed to provide high-speed data capabilities.
The planned disposal of the existing wireless infrastructure equipment required an evaluation of asset
impairment in accordance with SFAS No. 121 to write-down these assets to their fair value, which was
eslimated by discounting the expected luture cash flows of Ihese assets through the date of disposal. Since
the assets will remain in service from the date of the decision to dispose of these assets to the disposal date,
the remaining net book value of the assets will be depreciated over this period. As of December 3t, 2000,
approximately $320 of the asset impairment reserve has been utilized for assets that have been disposed of
and written off. The remaining net book value of these assets was approximately $23 at December 31, 2000,
which will be depreciated over an estimated remaining useful life of three months.
Also in 1999, a $145 charge for restructuring and exit costs was recorded as part of AT&T's initiative to
reduce costs. The restructuring and exit plans primarily focused on the maximization of synergies through
head count reductions in Business Services and network operations, including the consolidation of customercare and call centers.
Included in exit costs was $142 of cash termination benefits associated with the separation of
approximately 2,800 employees as part of voluntary and involuntary termination plans. Approximately one-half
of the separations were management employees and one-haH were non management employees.
Approximately 1,700 employee separations were related to involuntary terminations and approximately 1,100
to VOluntary terminations.
We also recorded net losses of $307 related to the government-mandated disposition of certain
international businesses that would have competed directly with Concert, and $50 related to a contribution
agreement Broadband entered into with Phoenixstar, Inc. That agreement requires Broadband to satisfy
certain liabilities owed by Phoenixstar and its subsidiaries. In addition, we recorded benefits of $121 related to
the settlement of pension obligations for former employees who accepted AT&T's 1998 voluntary retirement
incentive program (VRIP) offer.
During 1998, we recorded $2,514 of net restructuring and other charges. The bulk of the charge was
associated with our overall cost-reduction program and the approximately 15,300 management employees
who accepted the VRIP offer. A restructuring charge of $2,724 was composed of $2,254 and $169 for pension
and postretirement special-termination benefits, respectively, $263 of benefit plan curtailment losses and $38
of other administrative costs. We also recorded charges of $125 for related facility costs and $150 for
executive-separation costs. These charges were partially offset by benefits of $940 as we settled pension
benefit obligations of 13,700 of the total VRIP employees. In addition, the VRIP charges were partially offset by
the reversal of $256 of 1995 business restructuring reserves primarily resulting from the overlap of VRIP on
certain 1995 projects.
Also included in the 1998 net restructuring and other charges were asset impairment Charges totaling $718, of
which $633 was related to our decision not to pursue Total Service Resale (TSR) as a local-service strategy. We
also recorded an $85 asset impairment charge related to the write-down of unrecoverable assets in certain
international operations where the carrying value was no longer supported by future cash flows. This charge was
made in connection with the review of certain operations that would have competed directly with Concert.
Additionally, $85 of merger-related expenses was recorded in 1998 in connection with the TCG merger,
which was accounted for as a pooling of interests. Partially offsetting these charges was a $92 reversal of the
1995 restructuring reserve. This reversal reflected reserves no longer deemed necessary. The reversal
primarily included separation costs attributed to projects completed at a cost lower than originally anticipated.
Consistent with the three-year plan, the 1995 restructuring initiatives were substantially completed by the end
of 1998.
49
TRE - 512
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
8.
INVESTMENT IN LIBERTY MEDIA GROUP
As a result of our merger with TCI, we acquired Liberty Media Group, a wholly·owned investment
accounted for under the equity method (see Note 4). Summarized results of operations for Liberty Media
Group were as follows:
For the Year Ended
December 31, 2000
For the Ten
Months Ended
December 31, 1999
Revenue ................................. .
$ 1,526
729
Operating income (loss) ...................... .
436
(2,214)
Net income (loss) .......................... ,
1,488
(2,022)
$
At December 31,
2000
1999
Current assets .. , . , , , , , , , , , , , . ' , , ' , , , , , , , , , '
$ 2,954
$ 3,387
Noncurrent assets , , , , , , , , , , , , , ' , , , , , , , , , , , , ,
51,314
55,297
Current liabilities , , , , , , , , . , , , , , ' , , ' , . ' , . ' , , ' ,
2,962
3,370
Noncurrent liabilities " " " " , . , ' , , ' , , ' , , ' , , ' ,
16,668
16,853
Minority interest, , , ' , , , ' , ' , , . , , ' , , , , , , , , , , '. ' ,
348
During 2000 and 1999, certain investees of Liberty Media Group issued common stock, Changes in the
equity of the investees, net of the dilution of LMG's ownership interest, resulted in an increase to AT&T's
additional paid-in capital of $355 and $109 in 2000 and 1999, respectively,
9, OTHER INVESTMENTS
We have investments in various companies and partnerships that are accounted for under the equity
method and included within "Other investments and related advances" in the accompanying Consolidated
Balance Sheets. Under the equity method,' investments are stated at initial cost, and are adjusted for
subsequent contributions and our share of earnings, losses and distributions, At December 31, 2000 and
1999, we had equity investments (other than LMG) of $13,624 and $18,454, respectively, The carrying value of
these investments exceeded our share of the underlying reported net assets by approximately $8,720 and
$12,530, at December 31, 2000 and 1999, respectively, The goodwill is being amortized over periods ranging
from 15 to 40 years, Pretax amortization of goodwill was $571, $495, and $52 in 2000,1999, and 1998,
respectively, The amortization is shown net of income taxes as a component of "Net losses from other equity
investments" in the accompanying Consolidated Statements of Income, Distributions from equity investments
totaled $214, $317 and $360, for the years ended December 31,2000,1999 and 1998, respectively,
50
TRE - 513
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Ownership of significant equity investments was as follows:
(a)
1999
2000
At December 31.
Cablevision Systems Corporation .............. .
27.98%(a)
Concert ...........•....................
50.00%(b)
Time Warner Texas .
50.00%
Net2Phone, Inc. . ..
31.34%(C)
Insight Midwest LP ..
50.00%
EuroTel Praha, spoi. s.r.o.
24.50"10
Century-TCI California, LP
25.00%
Rogers Wireless Communications, Inc.
16.65%(d) 16.65%(d)
TeleCorp PCS, Inc. • ........ .
22.99%
15.67%
Kansas City Cable Partners " ..
50.00%
50.00%
Parnassos, LP ...... .
33.33%
33.33%
ACC Acquisitions, LLC .
50.00%
Far EasTone Telecommunications, ltd ..
22,70%
32.04%(a)
50.00%
50.00%
25.00%
13.87%
AB Cellular ............... .
(e)
55.62%(e)
At Home Corporation .. .
(I)
25.00%(1)
Lenfest Communications, Inc .................. .
50.00%
Bresnan Communications Group LLC ........... .
50.00%
At December 31, 2000 and 1999. we owned 48.942.172 shares of Cablevision Systems Corporation Class A common stock, which
had a closing market price of $84.94 and $75.50 per share, respectively, on those dates. Cablevision Systems Corporation
(CabJevision) redeemed all of its outstanding preferred stock and issued additional common stock, and issued shares of its common
stock for acquiSitions. As a result of these transactions. AT&T's ownership interest in Cablevision decreased from 32.04% to 27.98%.
Due to the dilution of AT&rs ownership interest in Cablevision, net of the increase in Cablevision's equity, AT&T recorded a net
decrease to additional paid-in capital of $170 in 2000,
(b) On January 5, 2000,
we formed Concert. our global-communications joint venture with BT.
(c) At December 31,2000, we owned 18,900,000 shares of Net2Phone.lnc. Class A common stock, which had a closing market price of
$7.38 per share on that date.
(d) This investment is accounted for under the equity method because of OUf ability to elect certain members of the board of directors of
this entrty, which we believe provides us with Significant influence.
(e)
On December 29. 2000, AB Cellular completed the redemption of our equity interest in A8 Cellular. Voting interest in A8 Cellular was
50% at December 31,1999.
(f)
On August 28, 2000, AT&T and Excite@Home announced the closing of their extension contracts and governance reorganization. As
a result of the governance changes, AT&T gained a contrOlling interest and began consolidating Excite@Home's results on
September 1, 2000. As of December 31. 2000, AT&T had an approximate 23% economic interest and 74% vOling interest in
Excite@Home, We owned 7.924,422 and 63,720,000 shares of Excite@Home Class A common stock at December 31,2000 and
1999, respectively, which had closing market prices of $5.53 and $42.88 per share, respectively. on those dates, We also owned
86.595,578 and 30.BOO,000 shares of Excite@Home Class B common stock at December 31, 2000 and 1999, respectively, which are
not publicly traded. During 2000 and 1999. Excite@Hame issued shares of its common stock for various acquisitions. As a result of
these transactions, AT&T's economic interest in Excite@Home decreased from 25% to 23% in 2000. and from 38% to 25% in 1999,
respectively. Due to the resulting increase in Excite@Home's equity. net of the dilution of AT&T's ownership interest in Excite@Home,
AT&T recorded an increase to additional paid-in capital of $116 and $527 in 2000 and 1999, respectively.
51
TRE - 514
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Summarized unaudited combined financial information for investments accounted for under the equity
method was as follows:
2000
For the Years Ended December 31,
1999
1998
(Unaudited)
Revenue ...................................... .
Operating (loss) income .......................... , .
(Loss) income from continuing operations before extraordinary
items and cumulative effect of a change in accounting
principle ..................................... .
Net (loss) income ................................ .
At December 31,
$32,663
(583)
$12,751 $4,488
(1,384)
239
(1,005)
(1,373)
(2,701 )
(2,897)
2000
1999
147
53
(Unaudited)
Current assets
Noncurrent assets ...............................
Current liabilities .................................
Noncurrent liabilities ..............................
Redeemable preferred stock ........................
Minority interest .................................
.
.
.
.
.
$12,274
44,748
12,181
26,337
2,198
621
$ 7,616
38,008
6,209
19,422
1,094
1,740
In addition, we have a 25.51% interest in TWE. This investment is "held·for-sale·' at December 31, 2000.
Accordingly. we are no longer recording equity earnings (lOsses) on this investment.
We also have investments accounted for under the cost method of accounting. Under this method,
investments are stated at cost, and earnings are recognized to the extent distributions are received from the
accumulated earnings of the investee. Distributions received in excess of accumulated earnings are
recognized as a reduction of our investment balance. These investments, which are covered under the scope
of SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Se!=urities," are classified as
"available-for-sale" and are carried at fair value with any unrealized gain or loss, net of income taxes, being
included within other comprehensive income as a component of shareowners' equity. Approximately $2,102 of
these investments have been classified as current assets since they are indexed to certain currently maturing
debt instruments.
52
TRE - 515
AT&T .cORP.
~ND
SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
,
.J •
• f'l.
1.,
'.':,
~
J •
••
,•
,
•
•
Dollars In millions unless otherwise noted (except per 'share amounts)
.,' rt::
10.
11-'-
".
~
,.'
, "
DEBT OBLIGATIONS
DEBT MATURING WITHIN ONE YEAR
2000
1999
Commercial paper .......•........•.•....•........ , .................. .
Short-term notes .....•..•........•..•....................•....•......
Currently maturing long-term debt. ..........................•.............•
Other ............................................................ .
$16,234
11,505
3,724
484
$ 5,974
Total debt maturing within one year ....................................... .
$31,947
$12,633
At December 31,
..
.
Weighted-average interest rate oi short-term debt ............................. .
5,000
1,355
304
6.5%
5.3%
In February 2000, we entered into a 364-day, $10 billion syndicated credit facility upon the expiration of
existing credit facilities. On December 28, 2000, we entered into a new 364·day, $25 billion credrt facility
syndicated to 39 banks. As a result, the outstanding $10 billion credit facility was terminated. The credit facility
is for commercial paper back-up and was unused at December 31, 2000. The credit facility agreement
contains a financial covenant that requires AT&T to maintain a net debt-to-EBITDA ratio (as defined in the
credit agreement) not exceeding 3.00 to 1.00 for four consecutive quarters ending on the last day of each
fiscal quarter. At December 31, 2000, we were in compliance with this covenant.
At December 31, 1999, we had a 364-day. $7 billion revolving-credit facility with a consortium of 42
lenders. We also had additional 364-day, revolving-credit facilities of $3 billion. These lines were for
commercial paper back-up and were unused at December 31, 1999.
LONG-TERM OBLIGATIONS
2000
1999
........................................... .
............. , ............................. .
.....•.......••...........•.................
•. , ........................ , ...........•....
.......•.............................. " .. ,.
..... , , • , ......... , ........ , ............... .
$ 6,639
6,660
7,840
5,267
7,320
2,794
$ 5,251
4,367
3,701
4,762
5,389
867
Total debentures, notes and trust preferred 'securities ................... , , ..... ,
Other .~ : .' ..... : : ...............• , ... : . '.. ' .... , ... , .... , ............ .
Unamortized discount, net ............... " ........ , ............. , , .. , .. .
36,520
360
(64)
24,337
362
(127)
Total long-term obligations ... , .......... , .. , , .. , , , ... , .. , , , ........... , .
Less: Currently maturing long·term debt ..... : ............................. .
36,816
3,724
24,572
1,355
Net long-term obligations .............................................. .
$33,092
$23,217
AI December 31,
DEBENTURES, NOTES AND
Interest Rates,b) Maturities
4.00% - 6.00%
2001-2018
6.25% - 6.50%
2001-2029
6.55% - 7.50""2001-2037
7.53% - 6.50%
2001·2097
8.60% - 11.13% 2001-2045
Variable rate
2001·2054
.
TRUST PREFERRED SECURITIES")
"-
(a) Included in these balances was $946 and $975 representing the remaining excess of the fair value over the recorded value of debt in
connection with the Tel and MediaOne mergers at December 31,2000 and December 31,1999, respectively. The excess is being
amortized over the remaining lives of the underlying debt obligations.
(b) The actual interest paid on our debt obligations may have differed from the stated amount due to our entering into interest rate swap
contiacts to manage QiJi expvSiJiE to iiitEiEst iale iisk and our strategy to ieduce finance costs (see Note i 2;.
53
TRE - 516
AT&T CORP. AND SUBSIDIARIES (AT&T)
--
\
;.
,
.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
.
"'-,
:
"'.
.
-
Dollars in millions unless otherwise noted (except per share amounts)
On January 26, 1999, AT&T filed a registration statement with the SEC for the offering and sale of up to
$10 billion of notes and warrants to purchase notes, resulting in a total available shelf registration of $13.1
billion. On March 26, 1999, AT&T issued $8 billion in notes. We received net proceeds of approximately $7.9
billion from the sale of the notes. The proceeds were utilized to repay commercial paper issued in connection
with the TCI merger and toward funding the share repurchase program. On September 14, 1999, AT&T
completed a $450 bond offering in connection with the same registration statement. The proceeds from the
issuance were utilized for general corporate purposes.
Included in long-term debt are subSidiary-obligated mandatorily redeemable preferred securities of
subsidiary trusts holding solely subordinated debt secur~ies, exchangeable notes and other exchangeable
debt acquired in connection with the TCI and MediaOne mergers.
SUBSIDIARY-OBLIGATED MANDATORILY REDEEMABLE PREFERRED SECURITIES OF SUBSIDIARY TRUSTS
HOLDING SOLELY SUBORDINATED DEBT SECURITIES
Certain subsidiary trusts of TCI (TCI Trusts) had preferred securities outstanding at December 31, 2000
and 1999, as follows:
Intarea
Rot.
Subsidiary Trust
Maturfly
Oat.
Carrying Amount
2000
1999
2045
2045
$ 528
$ 528
10.00%
514
521
TCI Communications Financing III
9.65%
2027
357
360
TCI Communications Financing IV ............... .
9.72%
2036
204
217
TCI Communications Financing I
8.72%
TCI Communications Financing II ................ .
Total .................................... .
$1,603
$1,626
=
=
The TCI Trusts were created for the exclusive purpose of issuing trust preferred secur~ies and investing
the proceeds thereof into subordinated deferrable interest notes (subordinated debt secur~ies) of TCI. The
subordinated debt securities have interest rates equal to the interest rate of the corresponding trust preferred
securities and have maturity dates ranging from 30 to 49 years from the date of issuance. The preferred
securities are mandatorily redeemable upon repayment of the subordinated debt secumies, and are callable
by AT&T. The Financing I and II trust preferred securities are callable at face value beginning in January and
May 2001, respectively. Financing III trust preferred securities are callable at 104.825% of face value beginning
in March 2007. Financing IV trust preferred securities are callable at face value beginning in March 2002. TCI
effectively provides a full and unconditional guarantee of the TCI Trusts' obligations under the trust preferred
securities. In 2000, AT&T provided a full and unconditional guarantee of the trust preferred securities for TCI
Communications Financing I, II and IV subSidiary trusts.
AT&T has the right to defer interest payments up to 20 consecutive quarters; as a consequence, dividend
payments on the trust preferred securities can be deferred by the trusts during any such interest-payment
period.
54
TRE - 517
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOUDATED FINANCIAL STATEMENTS (Continued)
Dollars In millions unless otherwise noted (except per share amounts)
Certain subsidiary trusts of MediaOne (Media One Trusts) had preferred securities outstanding at
December 31, 2000, as follows:
Interes'
Rate
Subsidiary Trust
MediaOne
MediaOne
MediaOne
MediaOne
Financing I ..............................
Financing II ..............................
Finance II ...............................
Finance III ...............................
.
.
.
.
Maturity
Date
Carrying
2025
2036
2036
2038
$ 30
28
214
504
7.96%
8.25%
9.50%
9.04%
Amount
Total ...................... , ...... , ............. .
-$776
=
The MediaOne Trusts exist for the purpose of issuing the trust preferred securities and investing the
proceeds thereof into subordinated deferrable interest notes (subordinated deferrable notes) of MediaOne
Group Funding, Inc., a wholly owned subsidiary of MediaOne. The subordinated deferrable notes have the
same interest rate and maturity date as the trust preferred securities to which they relate. All of the
subordinated deferrable notes are redeemable by MediaOne Group Funding, Inc. or MediaOne at a
redempiion price of $25.00 per security, plus accrued and unpaid interest. Upon redemption of the
subordinated deferrable notes, the trust preferred securities will be mandatorily redeemable, at a price of
$25.00 per share, plus accrued and unpaid distributions. The 7.96% subordinated deferrable notes became
redeemable after September 11, 2000. The 9.50% and 8.25% subordinated deferrable notes are nideemable
after Odober 29, 2001. The 9.04% subordinated deferrable notes are redeemable after Odober 28, 2003.
MediaOne has effectively provided a full and unconditional guarantee of the MediaOne Trusts' obligations
under the trust preferred securities. In 2000, AT&T provided a full and unconditional guarantee of MediaOne's
trust preferrect s e c u r i t i e s . '
.
AT&T has the right to defer interest payments up to 20 consecutive quarters; as a consequence, dividend
payments on the trust preferred secur~ies can be deferred by the trusts during any such interest-payment
period.
.
EXCHANGEABLE NOTES
During 2000, we issued debt (exchangeable notes) which is mandatorily redeemable at AT&T's option
into shares of Comcast and Microsoft Corporation (Microsoft) common stock, as applicable, or ~s cash
equivalent. During 1999 and 1998, MediaOne issued exchangeable notes which are mandatorily redeemable
at MediaOne's option into (i) Vodafone American Depository Receipts (ADRs) held by MediaOne, ~i) the cash
equivalent, or (iii) a combination of cash and Vodafone ADRs. The maturity value of these exchangeable notes
varies based upon the fair market value of the security tt is indexed to.
Following is a summary of the exchangeable notes outstanding at December 31, 2000, which are indexed
to 25 million shares of Comcast common stock:
Maturity Date
2003
Face value ....................................... .
Interest rate ...................................... .
Put price ........................................ .
Call price ........................................ .
Carrying value at December 31, 2000 ................... .
55
TRE - 518
$ 371
6.75%
41.50
49.80
$ 371
2004
$ 314
5.50%
41.06
49.27
$ 314
2005
$ 329
4.63%
39.13
46.96
$ 329
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
At maturity, the exchangeable notes will be redeemed, at AT&T's option, with (i) a number of shares of
Comcast common stock equal to the underlying shares multi plied by the exchange ratio, or (ii) rts equivalent
cash value. The exchange ratio will be calculated at maturity in the following manner:
(a) If the fair market value of a share of Comcast common stock is greater than the call price, the
exchange ratio will be 0.B333;
•
•
-
J
•
t
(b) If the fair market value of a share of Comcast common stock is less than or equal to the put price,
.
the exchange ratio will be 1;
(c) If the fair market value of a share of Comcast common stock is less than or equal to the call price
but greater than the put price, the exchange ratio will be be a fraction, the numerator of which is
equal to the put price, and the denominator of which is equal to the fair market value of a share of
Comeast common stock.
Following is a summary of the exchangeable notes outstanding at December 31, 2000, which are indexed
.
to 10 million shares of Microsoft common stock:
.,.
.'
, 2003
Maturtty Date
Face value .......................................
Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Put price ................... '.....................
Call price ........................................
Carrying value at December 31, 2000 ...................
.
.
.
.
.
2004
2005
$ 227
$ 226 $ 226
6.96%
7.00% 7.04%
67.B7
67.B7
67.B7
97.39 111.64' 12B.60
$ 145 $ 144 $ 144
At maturity. the exchangeable notes will be redeemed, at AT&T's option, with (i) a·number of shares of
Microsoft common stock equal to the underlying shares multiplied by the exchange ratio, or (ii) its equivalent
cash value. The exchange ratio will be calculated at maturity in the following manner:
(a) If the fair market value of a share of Microsoft common stock is greater than the 'call price, the
exchange ratio will be a fraction, the numerator of which is equal to the sum of (i) the put price, plus
(ii) the excess of the fair market value of a share of Microsoft common stock over the call price, and
the denominator of which is equal to the fair market value of a share of Microsoft common stock;
(b) If the fair markei value of a share of Microsoft common stock 'is less than or equal to the put price,
the exchange ratio will be 1;
(c) If the fair market value of a share of Microsoft common stock is less than or equal to the call price
but greater than the put price, the exchange ratio will be a fraction, the numerator of which is equal
to the put price, and the denominator of which is equal to the fair market value of a share of
Microsoft common stock.
Following is a summary of the exchangeable notes outstanding at December 31,2000, Which are indexed
to 22.3 million shares of Comcast common stock:
2003
Ma1urtty Date
Face value ....................................... .
Interest rate ...................................... .
Put price ........................................ .
Call price ........................................ .
Carrying value at December 31, 2000 ................... .
56
TRE - 519
2004
--$ 267 $ 267
6.76%
6.BO%
35.B9
35.B9
50.64
5B.39
$ 267 $ 267
2005
$ 267
6.B4%
35.B9
67.97
$ 267
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Doliars In millions unless otherwise noted (except per share amounts)
At maturity. the exchangeable notes will be redeemed, at AT&T's option, with (i) a number of shares of
Com cast common stock equal to the underlying shares mu~iplied by the exchange ratio, or (ii) its equivalent
cash value. The exchange ratio will be calculated at maturity in the following manner:
,
(a) If the fair market value of a share of Comeast common stock is greater than or equal to the call price,
the exchange ratio will be a fraction, the numerator of which is equal to the sum of (i) the put price,
plus (ii) the excess of the fair market value of a share of Com cast common stock over the call price,
and the denominator of which is equal to the fair market value of a share of Comcast common stock;
(b) If the fair market value of a share of Comcast common stock is less than or equal to the put price,
.
.
the exchange ratio will be 1;
(c) If the fair market value of a share of Comeast common stock is less than the eall price but greater than
the put price, the exchange ratio will be a fraction, the numerator of which is equal to the put price, and
the denominator of which is equal to the fair market value of a share of Comeast common stock.
.
.
Following is a summary of the exchangeable notes outstanding at December 31, 2000, which are indexed
to Vodafone ADRs:
2001
Maturity Date
Face value .............................................
Interest rate .............................................
Put price ...............................................
Call price ..............................................
Carrying value at December 31, 2000 ......... , ................
.
.
.
.
.
$1.686
625%
19.65
25.10
$2.337
2002
$1,129
7.00"';'
43.44
51.26
$1,012
The exchangeable notes that mature in 2001 are indexed to 29 million Vodafone ADRs. and will be
exchanged at maturity based upon a redemption value of $9.00 in cash plus 2'1, times the fair market value of
a VOdafone ADR (maturity price), .as follows:
(a) If the maturity price is greater than or equal to $9.00 plus 2'h times the call price per share. each
exchangeable note is equivalent to 0.8101 of the maturity price;
(b) If the maturity price is less than or equal to $9.00 plus 2'12 times the put price per share, each
exchangeable note is equivalent to the maturity price; or
(c) If the maturity price is less than $71.75 per share but greater than $58.125 per share, each
exchangeable note is equivalent to $58.125.
The exchangeable notes that mature in 2002 are indexed to 26 million Vodafone ADRs, and will be
exchanged at maturity as follows:
(a) If the fair market value of a Vodafone ADR is greater than or equal to the call price. each
exchangeable note is equivalent to 0.8475 of a Vodafone ADR;
(b) If the fair market value of a Vodafone ADR is less than or equal to the put price, each exchangeable
note is equivalent to one Vodafone ADR; or
(c) If the fair market value of a Vodafone ADR is less than the call price but greater than the put price,
each exchangeable note is equivalent to a fraction of a Vodafone ADR equal to (i) the put price
divided by (ii) the fair.market value of a Vodafone ADR.
The exchangeable notes are being accounted for as indexed debt instruments since the maturity value of
the debt is dependent upon the fair market value of the underlying Comcast. Microsoft and Vodafone
57
TRE - 520
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
securities. The exchangeable notes contain embedded options that hedge the market risk of a decline in value
of Comcast, Microsoft and Vodafone securities. The market risk of a decline in Comcast and Microsoft stock,
and Vodafone ADRs, below the respective put prices has been eliminated. In addition, any market gains we
may earn have been limited to the call prices, with the exception of certain debt indexed to Comeast stock
and the debt indexed to the Vodafone ADRs, which provides for our participation in a portion of the market
gains above the call price.
Since the Comcast, Microsoft, and Vodafone securities are cost method investments being accounted for
as "available-for-sale" securities under SFAS No. 115, "Accounting for Certain Investments in Debt and Equity
Securities," changes in the maturity value of the exchangeable notes and the underlying securities are being
recorded as unrealized gains or losses, net of income taxes, within other comprehensive income as a
component of shareowners' equity.
The exchangeable notes indexed to Com cast common stock and Microsoft common stock are secured
by the Comcast and Microsoft investments AT&T owns. The exchangeable notes indexed to Vodafone ADRs
are unsecured obligations, ranking equally in right of payment with all other unsecured and unsubordinated
obligations of AT&T.
OTHER EXCHANGEABLE DEBT
During 2000, we entered into a series of purchased and written options on 21.9 million shares of
Microsoft common stock, and issued floating rate debt. The carrying value of the debt at December 31, 2000,
was $1,369, whieh pays interest at the three-month London Inter-Bank Offered Rate (UBOR) plus 0.4%. The
debt matures annually with $458 maturing in 2003 and 2004, and $453 maturing in 2005, and is repayable at
AT&T's option in either Microsoft stock or cash.
In addition, during 1999 two subsidiaries of MediaOne, MediaOne SPC IV and MediaOne SPC VI, entered
into a series of purchased and written options on VOdafone ADRs contributed to them by MediaOne, and
issued floating rate debt. The carrying value of the debt at December 31, 2000, was $1,739, which pays
interest at the three-month UBOR plus 0.5%. This debt matures in equal quarterly installments beginning in
2003 and ending in 2005. The assets of MediaOne SPC IV, which are primarily 29.1 million Vodafone ADRs.
are available only to pay the creditors of MediaOne SPC IV. Likewise, the assets of MediaOne SPC VI, which
are primarily 18.0 million Vodafone ADRs, are available only to pay the creditors of MediaOne SPC VI.
This table shows the maturities at December 31,2000, of the $36,816 in total long-term obligations:
2001
2002
2003
2004
2005
Later Years
$3,724
$2,661
$3,093
$4,112
$4,182
$19,044
11. OTHER SECURITIES
PREFERRED STOCK OF SUBSIDIARIES
Prior to the ,TCI merger, TCI Pacific Communications Inc. (Pacific) issued 5% Class A Senior Cumulative
Exchangeable preferred stock, which remains outstanding. There were 6.3 million shares authorized and
outstanding at December 31, 2000 and 1999. Each share is exchangeable, from and after August 1, 2001, for
approximately 6.3 shares of AT&T common stock, subject to certain antidilution adjustments. Additionally, Pacific
may elect to make any dividend, redemption or liquidation payment in cash, shares of AT&T common stock or a
combination of the foregoing. The Pacific preferred stock is reflected within "Minority Interest" in the
accompanying Consolidated Balance Sheets, and aggregated $2.1 billion at December 31, 2000 and 1999.
58
TRE - 521
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Doliars In millions unless otherwise noted (except per share amounts)
Prior to the TCI merger, TCI issued Class B 6% Cumulative Redeemable Exchangeable Junior preferred
stock (Class B preferred stock). There were 1.6 million shares outstanding as of December 31,1999, net of
shares held by a subsidiary, out of an authorized 1.7 million shares. Class B preferred stock and accumulated
dividends aggregated $152 at December 31,1999, and were reflected wilhin "Minority Interest" in the
accompanying 1999 Consolidated Balance Sheet. On February 22, 2000, all outstanding shares of Class B
preferred stock were redeemed at $105.66 per share.
COMPANY-OBLIGATED CONVERTIBLE QUARTERLY INCOME PREFERRED SECURITIES OF SUBSIDIARY
TRUST HOLDING SOLELY SUBORDINATED DEBT SECURITIES OF AT&T AND RELATED WARRANTS
On June 16, 1999, AT&T Finance Trust I (AT&T Trust), a wholly owned subsidiary of AT&T, completed the
private sale of 100 million shares of 5.0% cumulative quarterly income preferred securities (quarterly preferred
securities) to Microsoft. Proceeds of the issuance were invested by the AT&T Trust in junior subordinated
debentures (debentures) issued by AT&T due 2029, which represent the sole asset of the AT&T Trust.
•
.
, '
.
),"
~"
' : t,
'.
!"
,
.• ; .
. _
,~.
..
The quarterly preferred securities pay dividends at an annual rate of 5,0% of the liquidation preference of
$50 per security, and are convertible at any time prior to maturity into 66,667 million shares of AT&T common
stock. The quarterly preferred securities 'are subject to mandatory redemption upon repayment of the ,
debentures at maturity or their earlier redemption. The conversion feature can be terminated, under certain
conditions, after three years.
The debentures will make a quarterly payment in arrears of 62.5 cents per security on the last day of
March, June, September and December of each year. AT&T has the right to defer such interest payments up
to 20 consecutive quarters, As a consequence. quarterly dividend payments on the quarterly preferred
securities can be deferred by the AT&T Trust during any such interest· payment period, If AT&T defers any
interest payments, we may not, among other things, pay any dividends on our common stock until all interest
in arrears is paid to the AT&T Trust. '
' . '1
DividendS on theq~arterlY preferred securities were $250 a'nd
'ior' the years ended Decem;er 31,
2000 and 1999, respectively, andare reported within "Minority interest income (expense)" in the"
'
accompanying Consolidated Statements of Income.
.
,
'$135
On June, 16, 1999, AT&T also issued to Microsoft 40 million warrants. each to purchase one share of
AT&T common stock at a price of $75 per share at the end of three years, Alternatively, the warrants are,
exercisable on a cashless basis. I,f the warrants are not exercised on the three-year anniversary of the closing
date, the warrants expire.
A discount on the quarterly preferred securities equal to the value of the warrants of $306 was recognized
and is being amortized over the 30-year life of the quarterly preferred securities as a component of '.'Minority
.
interest income (expense)" in the accompanying Consolidated Statements of Income,'
CENTAUR FUNDING CORPORATION
Centaur Funding Corporation (Centaur), a subsidiary of MediaOne, issued three series of preferred shares
prior to AT&T's acquisition of MediaOne. Centaur was created for the principal purpose of raising capital
through the issuance of preferred shares and investing those proceeds into notes issued by MediaOne SPC II,
a subsidiary of MediaOne, Principal and interest payments from the notes are expected to be Centaur's' '
primary source of funds to make dividend and redemption payments on the preferred shares. In addition, the
dividend and certain redemption payments on the preferred shares will be determined by reference to the
dividend and redemption activity oi the preferred stock oj AirTouch Communications, Inc. (ATI Shares) held by
MediaOne SPC II. Payments on the preferred shares are neither guaranteed nor secured by MediaOne or
59
TRE - 522
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
AT&T. The assets of MediaOne SPC II, which include the ATI shares, are available only to pay the creditors of
MediaOne SPC II. These securities remained outstanding at December 31, 2000 as follows:
Dividend Rate
Series A .......................... .
Series B .......................... .
Series C .......................... .
Variable
9.08%
None
Total ............................. .
Maturity Date
Carrying Amount
None
April 21,2020
April 21, 2020
$ 100
927
118
$1,145
The Auction Market Preference Shares, Series A, have a liquidation value of $250 thousand per share and
dividends are payable quarterly when declared by Centaur's board of directors out of lunds legally available.
The 9.08% Cumulative Preference Shares, Series B, have a liquidation value of $1 thousand per share and
dividends are payable quarterly in arrears when declared by Centaur's board of directors out of lunds legally
available. In addition, dividends may be declared and paid only to the extent that dividends have been
declared and paid on the ATI shares. The preference shares, Series C, have a liquidation value of $1
thousand per share at maturity. The value of the Series C will be accreted to reach its liquidation value upon
maturity. The Series B shares rank equally with the Series C shares as to redemption payments and upon
liquidation, and the Series B and Series C shares rank senior to the Series A shares as to redemption
payments and upon liquidation. The preference shares issued by Centaur are reflected within "Minority
interest" in the accompanying 2000 Consolidated Balance Sheet.
Dividends on the preferred shares were $55 for the period ended December 31, 2000, and were included
within "Minority interest income (expense)" in the Consolidated Statement of Income.
12.
FINANCIAL INSTRUMENTS
In the normal course of business, we use various financial instruments, including derivative financial
instruments, for purposes other than trading. We do not use derivative financial instruments for speculative
purposes. These instruments include letters of credit, guarantees of debt, interest rate swap' agreements,
foreign currency exchange contracts, option contracts and equity hedges. Collateral is generally not required
. '
for these types of instruments.
By their nature, all such instruments involve risk, including the credit risk of nonperiormance by
counterparties, and our maximum potential loss may exceed the amount recognized in our balance sheet.
However, at December 31, 2000 and 1999, in management's opinion, there was no significant risk of loss in
the event of nonperiormance of the counterparties to these financial instruments. We control our exposure to
credit risk through credit approvals, credit limits and monitoring procedures. We do not have any significant
exposure to any individual customer or counterparty, nor do we have any major concentration of credit risk
related to any financial instruments.
LETIERS OF CREDIT
letters of credit are purchased guarantees that ensure our periormance or payment to third parties in
accordance with specified terms and conditions. letters of credit do not create any additional risk to AT&T.
GUARANTEES OF DEBT
From time to time, we guarantee the debt of our subsidiaries and certain unconsolidated joint ventures.
Prior to the merger, TCI had agreed to take certain steps to support debt compliance with respect to
obligations aggregating $1,461 and $1,720 at December 31, 2000 and 1999, respectiveiy, of ceriain cabie
television partnerships in which Tel has a non-controlling ownership interest. Although there can be no
60
TRE - 523
AT&T CORP;' AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATE'\) FINANCIAL STATEMENTS (Continued)
Dollars in millions unless oth'-!rwise noted (except per share amounts)
assurance, management believes that it will not be required to meet its obligations under such guarantees.
Additionally. in connection with the restructuring of I'\T&T in 1996, we issued guarantees for certain debt
obligations of our former subsidiaries AT&T Capital' Corp. and NCR. The amount of guaranteed debt
associated with AT&T Capital Corp. and NCR was $ 48 and $56 at December 31,2000 and 1999, respectively.
INTEREST RATE SWAP AGREEMENTS
We enter into interest rate swaps to manage au. , exposure to changes in interest rates and to lower our
overall costs of financing. We enter into swap agree" 1ents to manage the fixed/floating mix of our debt
portfolio in order to reduce aggregate risk to interest . rate movements. Interest rate swaps also allow us to
raise funds at floating rates and effectively swap them 1 into fixed rates that are lower than those available to us
if fixed-rate borrowings were made directly. These agret~ments involve the exchange of floating-rate for fixedrate payments, fixed-rate for floating-rate payments or fIL)ating-rate for other floating-rate payments without the
exchange of the underlying prinCipal amount. Fixed interest "ate payments at December 31, 2000, were at
rates ranging from 6.05% to 8.20%. Floating-rate payments are c'Jased on rates tied to the L1BOR. In addition,
we also have combined interest rate, foreign currency swap agre, 3ments for foreign-currency-denominated
debt, which hedge our risk to both interest rate and currency mOVCQ[l1"nts.
The following table indicates the types of swaps in use at Decer nber 31,2000 and 1999, and their
weighted-average interest rates: Average variable rates are those in "ffect at the reporting date and may
change significantly over the lives of the contracts.
2000
1999
Fixed to variable swaps-notional amount ........................ .
Average receive rate ...................................... .
Average pay rate ......................................... .
$750 $1 ,BOO
8.16%
6.89%
B.16%
6.67%
Variable to fixed swaps-notional amount ..
. ............... .
Average receive rate ...................................... .
Average pay rate ......................................... .
$218 $ 229
6.81%
6.30%
7.31%
6.77%
Variable to variable swaps-notional amount ...................... .
Average receive rate ...................................... .
Average pay rate ......................................... .
$739 $ 495
1.74% 6.63%
5.42%
6.53%
The weighted-average remaining terms of the swap contracts were 11 and seven years at December 31,
2000 and 1999, respectively.
FOREIGN EXCHANGE
We enter into foreign currency exchange contracts, including forward and option contracts, to manage
our exposure to changes in currency exchange rates related to foreign-currency-denominated transactions. In
2000, this consisted principally of Brazilian reais and Swiss francs related to debt. In 1999, this consisted
principally of European Union currency (Euro), British pounds sterting and Japanese Yen contracts related to
the reimbursement to foreign telephone companies for their portion of the revenue billed by AT&T for calls
placed in the United States to a foreign country and other foreign currency payables and receivables. In
addition, we are subject to foreign exchange risk related to other foreign-currency-denominated transactions.
COLLARS
We enter into option agreements to hedge our exposure on debt that is indexed to securities we own.
During 2000, we entered into a series of purchased and written options related to a portion of our holdings in
Microsoft stock (Microsoft collar), which is indexed to floating rate debt. The collar has been designated and is
61
TRE - 524
AT&T CORP. AND SUBSIDIArrllES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL' STATEMENTS (Continued)
Dollars in millions unless otherwise note d (except per share amounts)
effective as a hedge of the market risk associated with our Investment in Microsoft stock. The Microsoft collar
is carried at fair value, with unrealized gains or losses, net (I)f income taxes, being recorded within other
comprehensive income as a component of shareowners' e( ,;uity, together with any change in the fair value of
the Microsoft stock. The carrying value of the Microsoft coli al was $419 at December 31,2000.
At the expiration of the Microsoft collar, if the price of a Microsoft share is equal to or less than the put
price of $62.48, we would exercise the put option and deh 'ver all underlying shares of Microsoft common stock
and receive cash equal in value to 0) the put price, multipi Icd by (ii) the underlying share amount.
Alternatively, at our option, we can elect not to deliver the underlying shares and instead settle the put option
by receiving cash equal in value to the (i) the difference hJetween the put price minus the fair value of one
Microsoft share, multiplied by (ii) the underlyiny share amc lint. If the price of a Microsoft share is greater then
the call price, which range from $86.26 to $118.36, ther.'1 the call option would be exercised and we would
deliver all underlying shares and receive cash equal in value to (i) the call price, multiplied by (ii) the
underlying share amount. At our option, we can !".ect not to deliver the underlying shares and instead settle
the call option by paying cash equal in value trJ the (i) the difference between the call price minus the fair
value of one Microsoft share, multiplied by (il) . the underlying share amount. Any cash received by AT&T from
the exercise or settlement of either put 01 ,?!.,j option would be used to retire the floating rate debt. We would
retain cash in excess of the call price from a call option exercise. If the price of a Microsoft share is between
the put price and the call price, the collar '"iII expire without value.
Prior to our merger with Mediae ne, tw 0 subsidiaries of MediaOne, MediaOne SPC IV and MediaOne SPC
VI, entered into a series of purchased ar,d written options (Vodafone collars) on Vodafone ADRs contributed to
them by MediaOne, and issued floati,..';) rate debt. The Vodafone collars have been deSignated and are
effective as a hedge of the market· risk aSSOCiated with our investment in Vodafone ADRs. The Vodafone
collars are carried at fair value, with unrealized gains or losses, net of income taxes, being recorded within
other comprehensive income as a component of shareowners' equity, together with any change in the fair
value of the Vodafone ADRs. The carrying value of the Vodafone collars was $453 at December 3t, 2000.
At the expiration of the MediaOne SPC IV collar, we will receive cash if the market value of a VOdafone
ADR is less than approximately $34.00 per share, effectively eliminating downside risk on the stock below
$34.00 per share. Conversely, if the market value of a Vodafone ADR is greater than approximately $49.00 per
share, we will be required to pay cash, which will be offset by the corresponding increase in the value of the
Vodafone ADR. This Vodafone collar expires quarterly beginning in 2003 and ending in 2005.
At the expiration of the MediaOne SPC VI collar, we will receive cash if the market value of a VOdafone
ADR is less than approximately $40.00 per share, effectively eliminating downside risk on the stock below
$40.00 per share. Conversely, if the market value of a Vodafone ADR is greater than approximately $58.00 per
share, we will be required to pay cash, which will be offset by the corresponding increase in the value of the
Vodafone ADR. This Vodafone collar expires quarterly beginning in 2003 and ending in 2005.
EQUITY HEDGES
We enter into equity hedges to manage our exposure to changes in equity prices associated with stock
appreciation rights of affiliated companies.
FAIR VALUES OF FINANCIAL INSTRUMENTS INCLUDING DERIVATIVE FINANCIAL INSTRUMENTS
The following table summarizes the notional amounts of material financial instruments. The notional
amounts represent agreed-upon amounts on which calculations of dollars to be exchanged are based. They
do not represent amounts exchanged by the parties and, therefore, are not a measure of our exposure. Our
exposure is limited to the fair value of the contracts with a positive fair value plus interest receivable, if any, at
the reporting date.
62
TRE - 525
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
DERIVATIVES AND OFF BALANCE SHEET INSTRUMENTS
2000
1999
Contracll
Contract:
Notional
Amount
Notional
Amount
Interest rate swap agreements ................................. . . . . . . . .
Combined interest rate loreign currency swap agreements ............ .
........
Foreign exchange forward contracts ............................ .
Option contracts ............
. ....... .
Equity hedges . . .
. .... .
Leners of credit . . . . . . . .
. ............... .
..... .
Guarantees of debt
$2,524
$ 968
739
71
3,108
392
852
1.607
1.881
495
243
1.848
The following tables show the valuation methods, the carrying amounts and estimated fair values of
material financial instruments.
FINANCIAL INSTRUMENT
Debt e,;eluding capital leases
VALUATION METHOD
Leiters of credit
Fees paid to obtain the obligations
Guarantees of debt
There are no quoted market prices for similar
agreements available
Interest rate swap agreements
Market quotes obtained from dealers
Combined interest rate foreign currency swap
agreements
Market quotes obtained from dealers
Foreign exchange contracts
Market quotes
Option contracts
Black-Scholes option-pricing model
Equity hedges
Market quotes
Preferred securities
Market quotes'
Markat quotes or rates available to us for debt with
similar terms and maturities
It !s not practicable to estimate the lair markeT value of our quarterly preferred sec unties that aggregated $4.710 and $4.700 at
December 31. 2000 and 1999, respectively. There are no current market quotes available an this private placement.
2000
Debt excluding capital leases
...... .
Pacific preferred stock ..................... .
1999
Carrying
Carrying
Amount
$G4,542
2.121
Fair Value
Amount
Fair Value
$61,686
595
$35,507
2.121
534.092
1,929
2000
Carrying
Amount
Asset
Interest rate swap agreements ............... .
Combined interest rate foreign currency swap
. .....
agreements . . . . . . . . . . . . . . . . . . ..
Foreign exchange lorward contracts ... .
Equ~h~gn ............................ .
$4
2
63
TRE - 526
Asset
5
$4
3
1
100
1
1
2
Fair Value
Amount
Fair Value
Liab.
$
1999
Carrying
Liab.
Asset
liab.
Asset
liab.
5
$ 28
527
$
6
$29
3
2
100
26
2
1
313
28
313
$
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
13.
PENSION, POSTRETIREMENT AND OTHER EMPLOYEE BENEFIT PLANS
We sponsor noncontributory. defined benefit pension plans covering the majority of our employees.
Pension benefits for management empioyees are based principaily on career· average pay. Pension benefits for
occupational employees are not directly related to pay. Pension trust contributions are made to trust funds
held for the sole benefit of plan participants. Our benefit plans for current and certain future retirees include
health-care benefits. life insurance coverage and telephone concessions.
The following table shows the components of the net periodic benefit costs included in our Consolidated
Statemenls of Income:
Postretirement Benefits
Pension Benefits
For the Years Ended December 31.
Service cost benefits earned during the period . . . . . . .
Interest cost on benefit obligations. .......
Amortization of unrecognized prior service cost ......
Credit for expected return on plan assets ..........
Amortization of transition asset .. . . . . . . . . . . . . .
Amortization of gains
......
· ........
Charges for special termination benefits' ...
Net curtailment 105ses Igains)' .. . . . . . , .
Net settlement losses (gains)' . . . . . . · .....
Net periodic benefit (credit) cost
· ..........
$
248
991
174
(1.821)
(156)
(332)
$
1998
1999
2000
$
247
919
159
(1 A58)
(158)
(10)
121
8
(121 )
(767)
$ (422)
$
2000
1999
1998
275 $ 35 $ 54 $ 56
322
324
940
352
(2)
13
135
4
(173)
(200)
(1.570)
(230)
(175;
(1 )
(16)
169
2,254
16
5
141
{141
140
(921 )
$ 1.078
$ 147
$ 195
$ 513
Primarily Included In "Net restructuring and other charges" in the ConSOlidated Statements of Income.
On January 26. 1998. we offered a voluntary retirement incentive program (VRIP) to employees who were
eligible participants In the AT& T Management Pension Plan. Approximately 15.300 management employees
accepted the VRIP offer. In connection with the VRIp, we recorded pretax charges in 1998 for pension and
postretirement plan speclal·termination benefits of $2.254 and $169. respectively. We also recorded pension
and postretirement plan pretax charges of $120 and $143. respectively. which are included within net
curtailment losses in 1998. The special-termination benefits reflect the value of pension benefit improvements
and expanded eligibility for postretirement benefits. The VRIP also permitted employees to choose either a
total lump· sum distribution of their pension benefits or periodic future annuity payments.
As of December 31.1999. all 15.300 employees had terminated employment under the VRIP AT&T has
settled the pension obligations covering about 15.100 of these employees. the remainder of which either
chose to defer commencing their pension benefits or elected to receive an annuity distribution. Lump-sum
pension settlements totaling $5.2 billion, including a portion of the special-pension termination benefits
referred to above. resulted in settlement gains of $121 and $940 recorded in 1999 and 1998. respectively.
64
TRE - 527
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
The following tables provide a reconciliation of the changes in ttle plans' benefit obligations and fair value
of assets. and a st3tement of the funded status:
Pension Benefits
Postretirement
Benefits
2000
1999
2000
1999
$12.868
S14.443
$ 4.642
$ 5,168
Service cost ....... .
248
247
35
Interest cost ...
991
919
352
32
558
(45)
54
324
4
5
(1,683)
203
(579)
(1.062)
(362)
(334)
16
5
For the Years Ended December 31.
Change in benefit obligations:
Benefit obligation. beginning of year
Plan amendments.
Actuarial losses (gains) ..
204
Acquisition, .
Benefit payments
(1228)
38
Special termination beneflls .
Senlements
(57)
(55';)
Curtailment losses
7
-
Benefit obllgallon. end 01 year.
S12,808
-S 4.886
------$ 4,642
521 .854
S18.567
S 2.852
S 2,476
995
4,855
94
-~
~--~.
$13063
Change in fair value of plan assets:
Fair value of plan assets. begrnning of year
Actual return on plan assets
Employer contributions ...
Acquisition ..
1128)
385
48
159
325
(1.2281
(1,062)
1362)
(57)
(554)
205
Benefit payments ........ .
Senlements ..... .
Fair value of plan assets, end of year ...... .
5
1334)
521,863
S21,854
$ 2,526
$ 2,852
S 8.800
S 8.986
$(2,360)
$(1,7901
(7.301)
(8.457)
(188)
(800)
(123)
(279)
1,100
1,362
(9)
55
$ 2.476
$ 1,612
$(2.557)
$(2.535)
At December 31.
Funded (unfunded) benefit obligation ..
Unrecognized net gain
Unrecognized transition asset
Unrecognized prior service cost.
Net amount recorded ...
At December 31, 2000, our pension plan assets included $34 of AT&T common stock. S26 of liberty
Media Group Series A common stock, and $2 of AT&T Wireless Group common stock. At December 31, 1999,
our pension plan assets included $82 of AT&T common stock and $34 of Liberty Media Group Series A
common stock,
65
TRE - 528
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
The following table provides the amounts recorded in Our Consolidated Balance Sheets.
Prepaid penSion cost ......... .
Benefit related liabilities ........... _ .
Intangible asset ........ .
..........
Accumulated other comprehensive income ........ .
Net amount recorded ... _ .....
Postretirement
Pension Benefits
At December 31,
...............
Benefits
2000
1999
$3.003
(579)
30
22
$2.464
(9181
46
20
S
$2.476
----
S 1.612
312.557)
.2000
1999
S
12.557)
12.535)
---
:512.535)
Our nonqualitied pension plans had an unfunded accumulated benefit obligation of S125 and S118 at
December 31, 2000 and 1999, respectively. Our postretirement health and telephone concession benefit plans
had accumulated postretirement benetit obligations of $4.282 and $4.021 at December 31. 2000 aM 1999.
respectively, which were in excess ot plan assets of $1.413 and $1.635 at December 31.2000 and 1999.
respectively.
The assumptIons used in the measurement of the penSion and postretirement benefit OiJIIo]JtI0ns are
shown in the following table:
At December 31,
Weighted-average assumptions:
Discount rate ................... .
Expected return on plan assets
Rate of compensation increase
.................
.2000
1999
-
-
.~
1998
0
+3
J
,
95 0 9 5.)0 95°0
4 5'":: ~ 50:) 45.J o
We assumed a rate of increase in the per capita cost of covered health-care benelils IIr,e healtn-cars cost
trend rate) of 7.6°,. This rate was assumed to gradually decline aher 2000 to 4.5'0 by 2010 and ti).?n r,"rnaln
level. Assumed health-care cost trend rates have a signIficant effect on the amounts reported fOl' tI1e healthcare plans. A one percentage pOint increase or decrease in the assumed health-care cost trend rate would
increase or decrease the total of the service and interest-cost components of net periodiC postrellrement
health-care benefIt cost by $9 and $9, respectively. and would increase or decrease the hedlthcJI e
component of the accumulated postretirement benefit obligation by $125 and $122. respectl'oely
8
We also sponsor savings plans for the majorrty of Our employees. The plans allow empl"joPS to
contribute a portion of their pretax and/or after-tax income in accordance with specified gUidelinES. We maier.
a percentage ot the employee contributions up to certain limits. Our contribultons alllounte;Q to 5280 111 2000.
$234 in 1999 and $204 in 1998.
66
TRE - 529
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
14.
STOCK-BASED COMPENSATION PLANS
Linder the 1997 Long-term Incent!ve Program (Program), which was effective June 1, 1997. and amended
on May 19. 1999 and March 14. 2000. we grant stock options. performance shares. restricted stock and other
awards on AT&T common stock as well as stock options on AT&T Wireless Group tracking stock.
Under the Program. there were 150 million shares of AT&T common stock available for grant with a
maximum of 22.5 million common shares that could be used for awards other than stock options. Beginning
with January 1. 2000. the remaining shares available for grant at December 31 of the prior year. plus 1.75% of
the shares of AT&T common stock outstanding on January 1 of each year. become available for grant. There
are a maximum of 37.5 million shares that may be used for awards other than stock options. The exercise
price of allY stock option IS equal to the stock price when tile option is granted. Generally. the options vest
over three or four years and are exercisable up to 10 years from the date of grant.
Under the Program. performance share units are awarded to key employees in the form of either common
stock or cash at the end of a three-year period. based on AT& T"s total shareholder return and cenain
financial-uelfolmance tal gets. Under the 1987 Long-term Incentive Program. perforrnance share units with the
same terms were also awarded to key employees based on AT& T"s return-to-equity performance compared
with a target.
On April 27. 2000. AT&T created a new class of stock and completed an offering of AT&T Wireless Group
tracking stoch. Under the Program. 5"0 of the outstanding AT&T Wireless Group shares became available for
grant with a maXimum at 1.25°0 of the outstanding shares that may be used for awards other than options.
Beginning with January 1.2001. the remaining AT&T Wireless Group shares available for grant at
December 31 of the prior year. plus 20;, of the outstanding AT& T Wireless Group sllares on January 1 of eaen
year. become available for grant. The exercise price of any stock option is equal to the stock price when the
option IS granted. Generally. the options vest over two to three and one-half years and are exercisable up to
10 years from the date of grant. In 2000. there were no grants of awardS other than stock options. On
April 27. 2000. substantially all employees were granted AT&T Wireless Group tracking stach options.
Under the AT&T 1996 Employee Stock Purchase Plan (Plan). which was effective July 1. 1996. we are
authorized to sell up to 75 million shares of AT& T common stock to our eligible employees. Under the terms
of the Plan. employees may have up to 10°0 of their earnings withheld to purchase AT& T"s common stock.
The purchase price of the stock on the date of exercise is 85°0 of the average high and low sale prices of
shares on the New York Stock Exchange for that day. Under the Plan. we sold approximately 6 million shares
to employees in 2000 and 3 million shares to employees in both 1999 and 1998.
We apply APB Opinion No. 25. "Accounting for Stock Issued to Employees:' and related interpretations
in accounting for cur plans. Accord!::gly. no cornpensatron expense has been recoonizAd for our stock· based
compensation plans 01l1er than for our performance-based and restricted stock awards and stock appreciation
rights (SARs). Stock based-compensation income (expense) was $253, $(462) and $(157) in 2000.1999 and
1998. respectively. These amounts included income (expense) of $269 and $(382) in 2000 and 1999.
respectively. related to grants of SARs of affiliated companies held by certain employees subsequent to the
Tel merger. We also entered into an equity hedge in 1999 to offset potential future compensation costs
associated with these SARs. (Expense) income related to this hedge was $(297) and $247 in 2000 and 1999.
respective!y.
67
TRE - 530
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
A summary of the AT&T common stock option transactions is shown below:
Weighted·
Average
Shares in thousands
Outstanding at January 1, ...............
Options assumed in mergers .... , .......
Options granted ......................
Options and SARs exercised ........
Options canceled or forfeited ............
At December 31:
Options outstanding ...................
Options exercisable ...................
Shares available for grant ...............
2000
Exercise
Price
1999
168,763
$37.42
29.613
$24.71
74,570
$36.12
(11.446) $22.07
(12.474) . $45.61
131,904
249,026
131,450
34,204
168,763
57,894
41,347
$35.82
$30.44
11,770
47,927
(17,858)
(4,980)
WeightedAverage
Exercise
Price
$30.41
$14.79
$57.13
$22.87
$42.44
1998
WeightedAverage
ExerCise
Price
110.972
$24.77
46,148
(18,894)
(6.322)
$41.69
$21.95
$31.64
$37.42
$28.21
131,904
$30.41
35,472
$23.13
91.838
All of the 11.8 million stock options assumed in connection With the TCI merger were in tandem with
SARs, which were canceled on April 30, 1999. During 1999, 386.000 SARs (including 137,000 for TCI) were
exercised. At December 31, 2000. there were no AT&T SARs outstanding.
The following table summarizes information about the AT&T common stock options outslanding at
December 31, 2000:
Range of Exercise Prices
$2.69· $18.08 .......................
$18.15 - $24.49 · .....................
$24.50 ........... , .................
$24.55 . $26.18 · .....................
$26.21 .............................
$26.33 - $31.97 · .....................
$32.09 .............................
$32.19 - $42.04 · .....................
$42.10 ................... , .........
$42.19 . $45.44 · .....................
$45.48 • $59.75 · .....................
$59.88 - $62.13 . . . . . . . . . . . . . . . . . . . . .
·
Options Outstanding
Number
Weighted.
Outstanding
Average
Weighted.
Remaining
Average
December 31.
Contractual
Exercise
2000
lite
Price
(I" thousands)
8'
21,182
16,914
15,451
8,664
17,299
20,246
25,551
26,908
26,975
20,017
23,581
26.238
249,026
68
TRE - 531
5.0
6.2
66
6.2
6.1
6.6
9.6
8.5
7.1
9.1
8.6
8.1
$11.23
$22.51
$24.50
$25.33
$26.21
$30.31
$32.09
$36.91
$42.10
$45.25
$51.33
$59.89
7.5
$35.82
Options Exercisable
Number
Exercisable
a.
December 31,
2000
WelghtedAverage
Exercise
Price
(In thousands)
20,206
11.808
15.451
8,664
17.299
12.501
141
10.147
17,531
1.927
9.293
6,482
131,450
510.99
$22.57
$24.50
$25.33
$26.21
$29.98
$32.09
$39.57
$42.10
$44.45
$50.40
$59.89
$30.44
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
A summary of the AT&T Wireless Group tracking stock option transactions is shown below:
WeightedAverage
Exercise
2000
Price
76,983
(3.357)
$29.29
$
$29.43
73.626
12.391
$29.29
$2948
Shares in thousands
Outstanding at January 1.
. . . . .. . .. . . . . . . .
. ........... .
Options granted
...... .
........................ , . .
. ......... .
Options exercised .... .
. ... , .
. ........ , .. , ........ .
Options canceled or forieited ...
At December 31:
Options outstanding
Options exercisable
Shares available lor grant ............................................. ,
$
41,874
The following table summarizes information about the AT&T Wireless Group tracking stock options
olJtstanding at December 31. 2000:
Options Outstanding
Number
Outstanding
December 31.
Average
Remaining
Contractual
2000
Ute
al
Range of Exercise Pnces
Options Exercisable
Weighted-
WeightedAverage
Exercise
Price
(In thousands)
$1706 . $21.00
$24.47 . . . .
$26.00 . $28.53
.......... .
$29.50
Number
ExerCisable
al
December 31.
2000
WeightedAverage
E)(ercise
Price
(In thousands)
30f
1.741
1.af5
69.715
9.9
98
95
9.3
$17.91
$24.47
$27.62
$29.50
122
12.269
S
$
527.21
$29.50
73.626
9.3
$29.29
12.391
$29.48
69
TRE - 532
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
AT&T has adopted the disclosure-only provisions of SFAS No. 123. "Accounting for Stock-Based
Compensation." If AT&T had elected to recognize compensation costs based on the fair value at the date of
grant for awards in 2000. 1999 and 1998. consistent with the provisions of SFAS No. 123. net income and
earnings per share amounts would have been as follows:
For the Years Ended December 31,
AT&T Common Stock Group:
Income from continuing operations ....
Income Irom discontinued operations ..
Gain on sale of discontinued operations
Extraordinary loss
......
.
Income. . .
. ......
.
.
..... .
.
.
Earnings per AT& T Common Stock Group common share-diluted'
. . . . . , .
Continuing operations
Discontinued operations . . . . . . . . . .
Gains on sale of discontinued ope, ations
Extraordinary toss .. . . . . . . .
AT& T Common Stock Group earnings.
... ..
..., ..
1999
1998
52.625
$5.193
55.078
7
1.290
137
Earnings per AT&T Common Stock Group cornman share-basic:
Continuing operations . . . . . . . . . . . . . . . . . . . ....... , ....
Disconllnued operations .........
. , . . . .
Gain on sate of discontinued operations
.......
Extraordinary loss . . . .
..... - ...
. ......
AT&T Common Stock Group earnings ..... . . . . . . . .
AT& T Wireless Group:
Income . . . . . . . . . . . . . . . . .
. Earnings per share:
Basic and diluted ......
2000
.
. . . ...
......
.......
52.625
55.193
56.238
$ 0.75
S 1.68
$ 1.90
S 0.75
S 1.68
0.43
0.05
S 2.33
S O.I-l
S 1.65
$ 1.88
S 1.65
0.48
0.05
5 2.31
51
$
S
S 0.1-1
S
$
S 0.74
S
The pro forma eHect on net income for 1998 may not be representative of the pro forma enect on net
income of luture years because the SFAS No. 123 method of accounting for pro forma compensation e,.pense
has not been applied to options granted prior to January 1. 1995.
The weighted-average fair values at date of grant for AT&T common stock options granted during 2000.
1999 and 1998 were $12.10, $15.64 and $9.75. respectively. and were estimated using the Blac,-Scholes
option-pricing mode!. The weighted-average risk-free inteiest rates applied fc,r 2000. 1999 and 1998 were
6.29~o. 5.10°0 and 5.33°0. respectively. The following assumptions were applied for 2000,1999 and 1998.
respectively: (i) expected dividend yields of 1.6°". 1 .7~·o and 2.1°". (ii) expected volatility rates 01 33.5°0. 28.3°"
and 23.8°0 and (iii) expected lives of 4.7 years in 2000 and 4.5 years for t999 and 1998.
The weighted-average fair values at date of grant for AT&T Wireless Group tracking stock options granted
during 2000 was $14.20 and was estimated using the Btack-Scholes option-pricing model. The follOWing
weighted-average assumptions were applied for 2000: (i) risk-free rate of 6.53"0. (ii) e'peeted volatility rate of
55.0% and (iii) expecteCi lite of 3.9 years.
70
TRE - 533
AT&T CORP. AND SUBSIDIARIES (AT&T)
"'t"\~II:'r-
" V l .... ~
T,..,. "'_ ... r"'\1 In "Ten e .... I/\
IV
'"'v •• ..,..., ..... "'''' ..... '''
"'1"""
AI
I 11'1/·,. ....... ,... ...
~TI\TC".C"ITC
.... +i ..... ,.. •.1\
v.,.,
..... ,., ....... .., ',...,..
, ..........................
,
Dollars in millions unless otherwise noted (except per share amounts)
15.
INCOME TAXES
The lollowing lable shows Ihe principal reasons for the difference between the effective income tax rate
and the U.S. federal statutory income tax rate:
For the Years Ended December 31.
2000
U.S. federal statutory income tax rate
........ , , ,
Federal income tax at statutory rate
.,.,.,.,
Amortization of investment tax credits
, . , ... , , , , , . , , . , .. , , .
State and local income taxes, net of federal income ta.' effect, , , , . , .
In·process research and development write-off .
...... , , .
Amortization of intangibles
Foreign rate differential,
, ... , .
..,,.,,,,
Taxes on repatriated and accumulated foreign income, net of tax credits, ,
Research and other credits. .
'., , , , , , , . , , , , , , , , . , . , .. , , .....
Valuation allowance. , , , ...... , . . . .
, .. , ... , ..... , .. , .. , , , .. .
Investment dispositions, acquisitions and legal entity restructurings. . .... ,.,
Operating losses and charges relating to Excitel;:!>Home , . , , ...... ,
. . , , , ...
Other differences. net, , . ,
. , ... , .
Provision for income taxes
Effective income tax rate
1999
35~~
$ 913 $3,509
(23)
(10)
176
247
111
104
(84 )
(40)
1998
35°0
35°0
$2,920
(14 )
199
208
43
28
56
(45)
(64)
(78)
(94)
30
(36)
(91 )
37
(477)
(153)
2,757
'"l'-;"\
(95)
( "
129
I
S3,342 53595 S3.0-19
36,9°0
36,6°0
The U.S. and foreign components of income frail I conlinuinQ operdtlons before income taYes and the
provision for income taxes are presented in this table:
For the Years Ended December 31.
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
United States.
. , , .. , . .
. .... ,
Foreign ... , ...... , ....... ,
......................
Total. , .. , . , .
PROVISION FOR INCOME TAXES
CURRENT
Federal , .. ,.,,'
State and local
Foreign ... , .. "., .. , .... ,
2000
1999
1998
$3.014
(406)
$ 9.595
430
--$10.025
S8.04?
294
52,608
=
.. .......
. .
... . . . . . . . . .
$1,878
196
89
DEFERRED
Federal ........... , ... ,., .. ,., .... ,', ....... , .. ,.,
State and local .. , ........ , ... , ....... , , .. , . , . , ........ , ..
Foreign ... ,.,." ...... ,..
, .... , .. , , ...... , .... .
DAferred investment ta-.: credits ..................... , .............. .
Provision for income taxes .............. , .. , ................ ,
2,163
$ 2,691
415
100
---3,206
$8.341
$2.784
232
41
3.057
1,136
71
(5)
527
(36)
1,202
(23)
499
'''1'''\\
\ I VJ
6
(14)
$ 3,695
$3,049
$3.342
=
(68)
74
8
In addition, we also recorded current and deferred income tax expenses (benefits) related to minority interest and net eqUity lOsses
on other equity investments in the amounts of $(154) and $(125) in 2000. $(94) and $(344) in 1999 and $143 and $\120, in 1998.
respectively.
71
TRE - 534
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Deferred income tax liabilities are tayes we expect to pay in future periods. Similarly. deferred income tax
assets are recorded for expected reductions in taxes payable in future periods. Deferred income taxes arise
because of ditterences In tile book and tax bases of certain assets and liabilities.
Deferred income tax liabilities and assets consist of the following:
2000
1999
$ 9,123
$ 7.678
10,716
18.571
2,826
7.304
11.998
1.156
41.236
28.136
At December 31.
LONG-TERM DEFERRED INCOME TAX LIABILITIES
Property. plant and equipment
......
..... , ..
Investments , .....
Franchise costs
Other ...
...
,
.....
Total long-term deferred Income tax liabilities
LONG-TERM DEFERRED INCOME TAX ASSETS
BUSiness restructuring ...... .
Net operating lossicredit carryforwardS.
Employee pensions and other benefits. net
Reserves and allowances
Otrler ...
V(ill j;-11ktn alhJwance
127
710
1,470
99
2.867
(750)
120
710
1,359
376
1.603
(231)
4.523
3.937
Nef long-term deferred Income tax Ilaoilities
:;;36,713
$24.t99
CURRENT DEFERRED INCOME TAX LIABILITIES
Investments
Other.
S
. .........
Total net long-term deferred income tax assets
Total current deferred income tax liabilities
670
309
$
979
427
---427
155
436
639
600
47
562
682
423
CURRENT DEFERRED INCOME TAX .ASSETS
Business restructuring. . .
. .....
Employee pensions and other benefits _
Reserves and allowances
_ .... .
Other.
. _ .... .
Valuation allowance
(39)
Total net current deferred income tax assets
Net current deferred income tax assets
S
1,791
1.714
812
$ 1.287
At December 31, 2000. we had net operating loss carryforwards (tax-effected), excluding Excite@Home.
for federal and state income tax purposes of $79 and S164. respectively, expiring through 2015. In addition,
we had federal tax credit carryforwards of $145. of which S64 have no expiration date and S81 expire through
2005. We also had state tax credit carryforwards (tax-effected) of S32 expiring through 2003. In connection
with the TCI merger. we acquired certain federal and state net operating loss carryforwards subject to a
valudtion alluwance of $59. H. in the future, the realizatiun of trlese acquireli deferred lax assels becomes
more likely than not, any reduction of the associated valuation allowance will be allocated to reduce franchise
costs and other purchased intangibles.
AI December 31. 2000, Excite@Home had net operating loss carryforwards (tax effected) for federal and
state income tax purposes of $290 expiring through 2020. Utilization of Excite@Home's net operating loss
72
TRE - 535
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
carryforwards may be subject to a minor annual limitalion due to the ownership change limitations provided
by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may
result in the expiration of a portion of Excite@Home's net operating loss carryforwards before ulilization. The
realization of Excite@Home's net deferred tax asset is dependent upon Excite@Home's future earnings, if any
the timing and amount of which are uncertain, In addition, Excite@Home is a separate taxpayer and is not a
member of the AT&T consolidated tax group, Accordingly, Excite@Home provided a valuation allowance in an
amount equal to its net deferred tax assets of $702 as of December 31, 2000, Approximately $142 of
Excite@Home's valuation allowance at December 31,2000, is attributable to stock option deductions, the
benefit of which will be credited to paid-in capital when realized. Approximately 5269 of Excite@Home's
valuation allowance at December 31, 2000, is attributable to deferred tax assets that. if realized, will be
allocated to first reduce goodwill, then other purchased intangibles, and then income tax expense,
On November 15, 2000, we announced our intention to split-off UvlG, The split-off of LMG remains subject
to the receipt of necessary approvals, including a favorable tax ruling from the IRS, Pursuant to the tax-sharing
agreement dated March 9,1999 between AT&T and LMG, in the event LMG is split-off, AT&T would be
required to reimburse LMG appro.ximately $830 for ttle value of certain TCI pre-acquisit.ion net operating loss
carryforwards, Also, in connection with a tax-sharing agreement between LMG and TCI that was executed
prior to AT&T's acquisition of TCI, LMG would be obligated to pay AT&T approximately $138 upon its split-off
from AT&T.
16_
COMMITMENTS AND CONTINGENCIES
In the normal course of business we are sUDJect to proceedings. lawsuits and other claims, including
proceedrngs under laws and regulations related to environmental and other matters. Such matters are subject
to many uncertainties, and outcomes are not predictable with assurance. Consequently, we are unable to
ascertarn the ultimate aggregate amount of monetary liability or financial impact with respect to these matters
at December 31. 2000. These matters could affect the operating results of anyone quarter when resolved in
future periods, However, we believe that after final disposition, any monetary liability or financial impact to us
beyond that provided for at year-end would not be material to our annual consolidated financial statements,
We lease land, buildings and equipment through contracts that expire in 'Jariolls years through 2037. Our
rental expense under operating leases was $980 in 2000, $827 in 1999 and $742 in 1998. The total of
minimum rentals to be received in the future under noncancelable operating subleases as of December 31,
2000, was $209,
The following table shows our future minimum commitments due under noncancelable operating and
capital leases at December 31, 2000:
Operating Leases
Capital Leases
2001
2002
2003
2004
2005
Later years , ' , , ' , , ' , , , _ , , _ , , , , , , , , ' . , ' , , ' , ' , __ .
$ 830
700
602
519
413
1,218
$ 149
137
Total minimum lease payments
$4,282
677
Less: Amount representing interest, , , , _ , ' , , , , , , , , , , , ,
Present value of net minimum lease payments "
73
TRE - 536
87
66
63
175
(179)
$ 498
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
AT&T has an agreement with Motorola. tnc. to purchase a minimum of 1.25 million digital set-top devices
at an average price of $248 per unit in 2001. During 2000, AT&T satisfied its obligation under a previous
agreement with Motorola. inc. to purchase set-top devices.
AT&T has entered into various purchase commitments lor wireless network equipment and handsets. The
commitments totaled $432 as of December 31. 2000. and extend through 2004.
AT&T has committed to provide funding to a joint venture with other investors, Alaska Native Wireless
(ANW). which was formed in November 2000 to participate in the Federal Communication Commission's
recent license spectrum auction. The auction was concluded in January 2001 and ANW was the highest
bidder on approximately $2.9 billion in licenses. AT&T has committed to fund approximately $2.6 billion to
ANW to fund ANWs purchase of licenses. At December 31.2000. AT&T had provided approximately $229 of
funding and has committed to provide additional funding of approximately $2.4 billion consisting primarily of
debt securities of ANW At the fifth anniversary of the first date on which licenses are granted to ANW. the
other owners of ANW have rights to require AT&T to purchase their equity interests. If such rights are
exercised five years after the license grant date. the purchase price would be approximately $950 and would
be payable, at Qur option. in either cash or marketable securities. In the event that these rights are exercised
before the fifth anniversary, or in the event that the winning bid is rejected, or if any licenses granted to ANW
are revoked or challenged. the amount that ,l\T&T would be required to pay would be less than 5950.
Through a joint venture (70°0 owned by AT&T and 30°0 owned by BTl. AT&T and BT have a 31°0
ownership of AT&T Canada Corp. as a result of the 1999 merger between AT&T Canada Corp. and MetroNel
Communications, Corp. In connection with this merger. the AT&T and BT Jomt venture has the right to call. or
arrange for another entity to call. the remaining 69°, of AT&T Canada for the greater of CdnS40.56 per share.
which represented the projected value as of December 31 . 2000. with an accretion of 4~o each quarter that
began on June 30. 2000, or the then-appraised fair market value. If we do not exercise our call rights by June
30,2003, the shares would be put up for auellon, and the AT&T and BT jOint venture would have to make the
shareholders whole for the difference between the proceeds received in auction and the greater of the fair
market value or the accreted value. The exact liming of any purchase will likely be partially dependent upon
the future status of Canadian foreign-ownership regulations.
17.
RELATED PARTY TRANSACTIONS
AT& T has various related party transactions with Concert as a result of the closure of thiS global venture
in early January 2000.
Included in revenue for the year ended December 31. 2000. is $1.080, for services provided to Concert.
InCluded in access and other connection expenses for the year ended December 3t. 2000. are charges
from Concert representing costs incurred on Our behalf to connect calls made to foreign countries
(international se«lements) and costs paid by AT&T to Concert for distributing Concert products totaling
$2,364.
During the first quarter of 2000. AT&T contributed property. plant and equipment of approximately $1.600
to Concert. AT&T also loaned $1,000 to Concert; that loan is included Within "Other investments and related
advances" in the accompanying 2000 Consolidated Balance Sheet. Interest income of $67 was 18cognized for
the year ended December 31 , 2000.
At December 31. 2000. AT&T had a floating rate loan payable to Concert in the amount of $126. The loan,
which is due on demand, is included in "Debt maturing within one year" in the accompanying Consolidated
Balance Sheet. Interest expense was $6 for the year ended December 31, 2000.
74
TRE - 537
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Included in accounts receivable and accounts payable at December 31,2000, was $462 and $518,
respectively, related to transactions with Concert. Included in other receivables and other current liabilities at
December 31, 2000. was $1.106 and $1.032. respectively, related to transactions associated with Concert.
In addition. we had various related party transactions with LMG. Included in costs of services and
products were programming expenses related to services from LMG. These expenses amounted to $239 for
the year ended December 31, 2000 and $184 for the 10 months ended December 31. 1999. respectively.
Included in "Iniestment in Liberty Media Group and related receivables. net" was $155 and $27 at
December 31. 2000 and 1999. respectively. primarily related to taxes pursuant to a taX-Sharing agreement
between LMG and Broadband. That agreement existed prior to the TCI merger.
18.
SEGMENT REPORTING
AT&T's results are segmented according to the way we manage our business: Business Services,
Consumer Services. Wireless Services and Broadband.
Our Business Services segment oHers a var;ety of global communlcat;ons services, including long
distance. local. and data and Internet protocol (IP) networking. to small and medium-sized businesses, large
domestic and multinational businesses and government agencies. Business Services is also a provider of
voice, data and IP transport to service resellers (wholesale services). Also included in the Business Services
segment IS AT& T Solutions. our outsourcing and network-management business.
Our Consumer Services segment provides a variety of any-distance communications secJices, including
long distance. local toll (intrastate calls outside the immediate local area) and Internet access to residential
customers. In addition. Consumer Services provides prepaid calling card and operator-handled calling
services. Local phone service is also provided in certain areas.
Our Wireless Services segment offers wireless voice and data services and products to customers in our
850 megahertz (cellular) and 1900 megahertz (Personal Communications SerJices. or PCS) markets. Wireless
Services also includes certain interests in partnerships and affiliates that provide wireless services in the
United States and internationally. aviatlon-communicallons services and fixed wireless services. Fixed wireless
provides high· speed Internet access and any-distance voice services using wireless technology to residential
and small business customers.
Our Broadband segment offers a variety of services through our cable broadband network, including
traditional analog video and new services such as digital video. high-speed data and broadband telephony.
The balance of AT&T's operations (excluding LMG) is included in a "Corporate and Other" category. This
category reflects corporate staff functions and the elimination of transactions between segments, as well as
the results of Excite@Home and international operations and ventures. LMG is not an operating segment of
AT&T because AT&T does not have a controlling financial interest in LMG for financial accounting purposes.
Therefore. we account for this investment under the equity method. Additionally, LMG's results are not
reviewed by the chief operating decision·makers for purposes of determining resources to be allocated.
Total assets fOi our reportable segments generally include all assets, except intercompany receivables.
However. our Wireless Services segment included intercompany receivables from AT&T and the related
interest income since these assets relate to the results of the AT&. T Wireless Group tracked business. Prepaid
pension assets and corporate-owned or leased real estate are generally held at the corporate level and
therefore, are included in the Corporate and Other category. Shared network assets are allocated to the
segments and reallocated each January based on two years of volumes. Capital additions for each segment
inClude capital expenditures for property, plant and equipment, acquisitions of licenses, additions to
nonconsolidated investments, increases in franchise costs and additions to internal-use software.
75
TRE - 538
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
The accounting policies of the segments are the same as those described in the summary of significant
accounting policies (see Note 1). AT&T evaluates performance based on several factors, of which the primary
financial measure is earnings before interest and taxes, including pretax minority interest and net pretax losses
from other equity investments (EBIT),
Generally, AT& T accounts for Business Services' and Broadband's intersegment transactions at market
prices.
REVENUE
For Ihe Years Ended December 31.
Business Services external revenue
Business Services internal revenue, .
2000
1999
199B
527,69t
797
$26,749
731
S23,80,
478
28.488
18,976
10,448
8.203
14
27.480
21.854
7.627
5.069
24.285
22,885
5.406
8,217
66.129
(148)
5.070
62.031
569
52,576
565.981
562.600
553.223
2000
1999
1998
S 3,714
561
1,678
3,068
5 3.352
783
1.246
1.636
$ 2,554
693
1.051
9,021
1,246
7,017
422
4.298
331
$10.267
$ 7,439
$ 4.629
2000
1999
1998
· ............... .
Total Business Services revenue . .
. .... .
......... , ............... ,
Consumer Services external revenue
Wireless Services external revenue ............. ,
Broadband external revenue
............ , ... .
Broadband internal revenue , . . .
. ... , .
Total Broadband revenue ..
Total reportable segments.
Corporate and Other",
....................
Total revenue .... , ........ .
(li
6..17
Includes $248 and $10 related 10 EAcile,<!'Home in 2000 and 1999. I&spectively
DEPRECIATION AND AMORTIZATION"
For the Years Ended December 31,
Business Services . .
.......
Consumer Services .....
Wireless Services . , ..... ......
Broadband .....
Total reportable segments ....
Corporate and Other,21 .........
........
. ...
.. ............. ..
. . . . . .. .
-. . ... ...
...... · . . . . . .
Total depreciation and amortization
,
......
......
. ......
.......
· .....
p~r:::h3sed ir:tang:bles.
(:)
Includes the 3rr1crtiza!:cn of goodwil!. fr3nchise :::cs!s Jr:c ether
(2)
Includes $991 and $38 related to Exclte@Home in 2000 and 1999, respectively.
EARNINGS (LOSSES) FROM OTHER EQUITY INVESTMENTS
For the Years Ended December 31.
Wireless Services
Broadband. , ..
..
.,
Total reportable segments.
Corporate and Other"1
.,
.. · .
...
...
·.
., ·.
Total net losses from other equity investments
(1) Includes $(619) and $(504) related 10 Excite@Home in 2000 and 1999. respectively.
76
TRE - 539
.,
.,
....
.. . . .
, . . .
$
$
382
$
(10)
(215)
(~QI=:\
\ .... ""1
167
(372)
(406)
(359)
(205) $
(765)
$
30
30
(108)
$
(78)
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
RECONCILIATION OF EBIT TO INCOME BEFORE INCOME TAXES
2000
For the Years Ended Oecember 31,
Business Services ..........................................
Consumer Services .........................................
Wireless Services ..........................................
Broadband ...............................................
.
.
.
.
Total reportable segments .................................
Corporate and Other(1) .......................................
Deduct: Pretax minority interest income (expense) ...................
Add: Pretax losses from other equity investments ...................
Interest expense ...........................................
.
.
.
.
.
Total income before income taxes .............................. .
$
$
1999
1998
6,548 $ 6,136 $ 4,994
7,090
7,909
6,570
1,131
(473)
418
(1,175)
(1,475)
13,594
(4,167)
4,031
395
(3,183)
12,097
(1,625)
(163)
1,155
(1,765)
2,608
$ 10,025
11,982
(3,248)
34
68
(427)
$ 8,341
(1) Includes $(3,603) and $(686) related to Excite@Home in 2000 and 1999, respectively. The Excite@Home EBIT impact in 2000
includes $2,630 of net restructuring and other charges.
ASSETS
At December 31,
2000
1999
1998
Business Services ..........................................
Consumer Services .........................................
Wireless Services ..........................................
Broadband ...............................................
.
.
.
.
$ 34,804
4,801
35,184
114.681
$ 32,010
6,279
23,312
53.810
$22,189
6,185
19,416
Total reportable segments ..................................
Corporate and Other assets:
Other segments ..........................................
Prepaid pension costs .....................................
Deferred income taxes .....................................
Other corporate assets(1) ...................................
Investment in Liberty Media Group and related receivables, net .........
.
189,470
115,411
47,790
.
.
.
.
.
6,892
3,003
720
7,848
34,290
3,386
2,464
899
8,786
38,460
3,016
2,074
1,156
5,514
Total assets .............................................. .
$242,223
$169,406
$59,550
2000
1999
1998
(1) Includes $2,541 and $2,726 related to Excite@Home for 2000 and 1999, respectively.
EQUITY INVESTMENTS (EXCLUDING LMG)
At December 31,
Wireless Services .......................................... .
Broadband ............................................... .
$
3,080
6,470
$
4,409
10,327
$ 3,766
Total reportable segments .................................. .
Corporate and Other(1) ....................................... .
9,550
4,074
14,736
3,718
3,766
491
Total equity investments ..................................... .
$ 13,624
$ 18,454
$ 4,257
(1) Includes $35 and $2,726 related to Excite@Homefor 2000 and 1999, respectively.
77
TRE - 540
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
CAPITAL ADDITIONS
2000
For the Years Ended December 31,
Business Services .........................................
Consumer Services ........................................
Wireless Services .........................................
Broadband ..............................................
.
.
.
.
$
6,223
302
5,553
4,963
1999
$
7,511
656
2,739
4,759
Total reportable segments .................................. .
Corporate and Other(lI ...................................... .
17,041
2,150
15,665
1,494
Total capital additions ...................................... .
$ 19,191
$ 17,159
1998
$
6,130
459
2,395
8,984
594
$
9,578
(1) Includes $92 related to Excite@Home in 2000.
Geographic information is not presented due to the immateriality of revenue attributable to international
customers.
Reflecting the dynamics of our business, we continually review our management model and structure and
make adjustments accordingly.
19.
CONSOLIDATING CONDENSED FINANCIAL INFORMATION
In conjunction with the issuance of AT&T Wireless Group and Liberty Media Group tracking stocks, AT&T
has separated for financial reporting purposes in all periods the AT&T Common Stock Group, Liberty Media
Group and AT&T Wireless Group. Below is the consolidating financial information reflecting the businesses of
these individual groups, including the allocation of expenses between the groups in accordance with our
aliocation policies, as well as other related party transactions such as sales of services between groups and
interest income and expense on intercompany borrowings. The AT&T Common Stock Group presented below
excludes its retained portion of the value of AT&T Wireless Group. AT&T does not have a controlling financial
interest in LMG for financial accounting purposes; therefore, our ownership in LMG is reflected as an
investment accounted for under the equity method and is reflected as such in the consolidating financial
statements below.
AT&T Wireless Group, purchases long distance and other network-related services from AT&T at marketbased prices and accordingly such amounts are eliminated. Prior to the offering of AT&T Wireless Group
tracking stock, the capital structure of AT&T Wireless Group had been assumed based upon AT&T's historical
capital ratio adjusted for certain items. Intercompany interest rates are intended to be substantially equivalent
to the interest rate that AT&T Wireless Group would be able to obtain or receive if it were a stand-alone entity.
General corporate overhead related to AT&T's corporate headquarters and common support divisions has
been allocated to AT&T Wireless Group based on the ratio of AT&T Wireless Group's external costs and
expenses to AT&T's consolidated external costs and expenses, adjusted for any functions that AT&T Wireless
Group performs on its own. The consolidated income tax provision, related tax payments or refunds, and
deferred tax balances of AT&T have been alloated to AT&T Wireless Group based principally on the taxable
income and tax credits directly attributable to AT&T Wireless Group.
Pursuant to the Inter-Group agreement, AT&T does not allocate general overhead expenses to Libery
Media Group and only charges Liberty Media Group for specific services that Liberty Media Group receives
from AT&T pursuant to service agreements or similar arrangements. Additionally. as Uberty Media Group
operates independent ot' AT&T, there is no cash or debt allocated to them.
78
TRE - 541
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Doliars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Income Statement
For the year ended December 31, 2000
AT&T
Common
Stock
AT&T
Wireless
Liberty
Media
Group
Group
Eliminations/
Reclassi-
Group
fie"lionsll)
External revenue ........................ . $55,533 $10,448 $
Inter-group revenue, ..................... .
321
Total revenue ........................ ' ..
55,854
10,448
Operating Expenses
Costs of services and products ............. .
13,001
4,969
Access and other connection ............... .
13,140
Selling, general and administrative .......' .... .
10,001
3,302
Depreciation and other amortization .......... .
5,923
1,686
Amortization of goodwill, franChise costs and other
purchased intangibles ........... , ... ,
2,665
Net restructuring and other charges .......... .
7,029
inter-group expenses ............ , ........ .
(208)
529
Total operating expenses .................. .
51.551
10,486
Operating income (loss) .................. .
4,303
(38)
Other income (expense) .................. .
1,150
391
Inter-group interest income ................ .
326
143
Interest expense ..................... ,
3,294
(111 )
Inter-group interest expense ................ .
143
196
Income before income taxes, minority interest and
earnings (losses) from equity investments .... .
2,342
411
Provision for income taxes ................. .
3,199
141
Minority interest income ................... .
4,092
Equity earnings from Liberty Media Group ..... .
Net earnings (losses) from other equity
investments .......................... .
(585)
388
Net income ............................ .
2,650
658
Dividend requirements on preferred stock held by
AT&T, net ........................... .
130
Net income after preferred stock dividends ..... . $ 2,650 $ 528 $
$
Consolidated
AT&T
Corp.
$65,981
(321)
(321)
(383)
378
(335)
328
(321)
(333)
12
(27)
(469)
$65,981
17,587
13,518
13,303
7,274
2,993
7,029
61,704
4,277
1,514
3,183
(339)
(145)
2
28
1,488
(8)
1,488
(127)
2,608
3,342
4,120
1,488
(205)
4,669
(130)
1,488
$
3
$ 4,669
(1) Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
79
TRE - 542
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Balance Sheet
At December 31, 2000
AT&T
Common
Stock
Group
ASSETS
Cash and cash equivalents , ................
Receivables
............ , . , ..........
Deferred income taxes .....................
Other current assets · .............. , ......
Short-term note due from related party .........
TOTAL CURRENT ASSETS ............ , ....
Property, plant and equipment, net ............
Franchise costs, net · .....................
licensing costs, net · ..... . . . , ............
Goodwill, net . . . . . . . . . . . . ...............
Investment in liberty Media Group and related
receivables, net ........................
Other investments and related advances ........
Other assets ............................
Long-term assets due from related party ........
TOTAL ASSETS , , ......... . . . . . . . , ......
LIABILITIES
Debt maturing within one year ...............
Short·term debt due to related party ...........
liability under put options ..................
Other current liabilities .....................
TOTAL CURRENT LIABILITIES ...............
Long-term debt ..........................
Long-term debt due to related party ...........
Deferred income taxes .....................
Other long·term liabilities and deferred credits ....
TOTAL LIABILITIES .......................
$
64
11,053
719
2,890
638
15,364
41,269
48,218
AT&T
Wireless
Group
$
62
2,010
93
417
Liberty
Media
Group
$
Eliminations/
Reclassiflcations(1 )
$
(5)
(638)
(859)
13,627
5,816
26,782
$
(216)
2,582
9,892
(1 )
(1,120)
34,290
30,876
10,984
4,800
$178,293
$35,302
$ 31,838
$
2,564
13,709
48,111
33,089
32,054
8,493
$121,747
3,385
109
638
126
12,847
812
3,302
17,087
51,161
48.218
13,626
31,478
34,290
34,261
12,102
$34,290
1,118
(4,800)
$(5,662)
$242,223
$
$
$ 31,947
(638)
2,907
3,654
1,800
4,659
271
$10,384
Consolidated
AT&T Corp.
(260)
(898)
3
(1,800)
$
(4)
$(2,699)
2,564
16,356
50,867
33,092
36,713
8,760
$129,432
(1) Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
80
TRE - 543
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Balance Sheet
At December 31, 2000
AT&T
Common
Minority Interest ........................
Company-Obligated Convertible Quarterly
Income Preferred Securities of a Subsidiary
Trust Holding Solely Subordinated Debt
Securities of AT&T ............ , .......
SHAREOWNERS' EaUITY
AT&T Common Stock ....................
AT&T Wireless Group Common Stock ........
Liberty Media Group Class A Common Stock ...
Liberty Media Group Class B Common Stock ...
Other shareowners' equity .......... , .....
Other shareowners' equity due to related party
TOTAL SHAREO'vVNERS' EQUITY ........ ...
TOTAL LIABILITIES AND SHAREOWNERS'
EQUiTY ............................
Stock
AT&T
Wireless
Group
Group
4,842
Liberty
Media
Group
Eliminations/
Reclassi-
Consolidated
ficationS(l)
AT&T Corp.
41
4,883
4,710
4,710
34,290
46,994
21,877
3,000
24,877
v'+,L;::JU
3,760
362
2,364
206
(6,655)
(3,000)
(2,963)
$178,293
$ 35,302
$ 34,290
$(5,662)
46,994
...,,,
1'\1'\1"\
3,760
362
2,364
206
96,506
103,198
$242,223
(1 ) Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
81
TRE - 544
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Statement of Cash Flows
For the year ended December 31, 2000
AT&T
Common
Stock
Group
AT&T
Wireless
Group
NET CASH PROVIDED BY OPERATING
ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . .. $ 11,684 $ 1,635 $
INVESTING ACTIVITIES
Capital expenditures and other additions '" .. .
(10,912)
(4,012)
Equity investment distributions and sales ..... .
992
360
Equity investment contributions and purchases ..
(1,767)
(1,645)
Net acquisitions of businesses including cash
acquired ........................... .
(16,647)
(4,763)
Other ............................... .
(2,113)
(465)
NET CASH USED IN INVESTING ACTIVITIES .. .
(30,447)
(10,525)
FINANCING ACTIVITIES
Proceeds from long-term debt issuance ...... .
4,601
Retirement 01 long-term debt .............. .
(2,118)
Issuance of AT&T Wireless Group common stock
3,314
7,000
Dividends paid ........................ .
(3,047)
Increase in short-term borrowings, net ....... .
17,009
638
Other ............................... .
(1,951)
1,309
NET CASH PROVIDED BY FINANCING
ACTIVITIES ......................... .
17,808
8,947
Net (decrease) increase in cash and cash
equivalents ......................... .
(955)
57
Cash and cash equivalents at beginning of year.
1,019
5
Cash and cash equivalents at end of year .. . .. $
64 $
62 $
(1)
Liberty
Media
Group
Eliminations/
Reclassi-
Consolidated
fications(1 )
AT&T Corp.
$
(12)
$13,307
(14,924)
1,352
(3,412)
1,038
1,038
(21,410)
(1,540)
(39,934)
(674)
(352)
4,601
(2,118)
10,314
(3,047)
16,973
(994)
(1,026)
$
25,729
(898)
1,024
$
126
Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
82
TRE - 545
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Income Statement
For the year ended December 31, 1999
AT&T
Common
Stock
Group
External revenue ......................... . $54,973
Inter-group revenue
................... .
227
Total revenue ............................ .
55.200
Operating Expenses
Costs of services and products ............... .
t1,158
Access and other connection ................ .
14,439
Selling, general and administrative ............. .
11,243
Depreciation and other amortization ............ .
5,137
Amortization of goodwill. franchise costs and other
purchased intangibles .................... .
1,057
Net restructuring and other charges ............ .
976
Inter-group expenses ...................... .
(333)
Total operating expenses ................... .
43.677
Operating income (loss) .................... .
11.523
Other income (expense) .................... .
824
Inter-group interest income .............. .
270
Interest expense .......................... .
1,755
Inter-group interest expense ................. .
Income (loss) before income taxes, minority interest
and earnings (losses) from equity investments .. .
10,862
Provision for income taxes .................. .
4,016
Minority interest income (expense) ............. .
(132)
Equity losses from Liberty Media Group ......... .
Net earnings (losses) from other equity investments .
(760)
Net income (loss) ......................... .
5,954
Dividend requirements on preferred stock held by
AT&T. net ............................. .
Net income (loss) after preferred stock dividends .. . $ 5,954
AT&T
Wireless
Group
$7,627
Liberty
Media
Group
$
Eliminations/
Reclassifications(1)
$ (227)
(227)
7,627
3,676
(240)
247
2,273
1,253
(252)
244
(1 )
(227)
(229)
2
(15)
(270)
88
(214)
531
560
8,293
(666)
122
(78)
214
(680)
(294)
(157)
(27)
17
(2,022)
(19)
(405)
(2,022)
14
(99)
56
$ (461)
$(2,022)
(56)
$ (43)
Consolidated
AT&T Corp.
$62,600
62,600
14,594
14,686
13,516
6,138
1,301
1,506
51,741
10.859
931
1,765
10,025
3,695
(115)
(2,022)
(765)
3,428
$ 3,428
(1) Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustrnents related to AT&T Wireless Group tracking stock.
83
TRE - 546
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Balance Sheet
At December 31, 1999
AT&T
Common
Stock
Group
ASSETS
Cash and cash equivalents .................
Receivables ........................... ,
Deferred income taxes .....................
Other current assets · .....................
TOTAL CURRENT ASSETS ...... , ..........
Property, plant and equipment, net ............
Franchise costs, net · ..... , .... , . , , ...... ,
Licensing costs, net · .....................
Goodwill, net ...........................
Investment in Liberty Media Group and related
receivables, net ........................
Other investments and related advances ........
Other assets ............................
Long-term assets due from related party ........
TOTAL ASSETS .........................
LIABILITIES
Debt maturing within one year ...............
Other current liabilities .....................
TOTAL CURRENT LIABILITIES ...............
Long-term debt ..........................
Long-term debt due to related party ...........
Deferred income taxes .....................
Other long-term liabilities and deferred credits ....
TOTAL LIABILITIES .......................
$
1,019
9,241
1,160
929
12,349
33,366
32,693
AT&T
liberty
Wireless
Media
Group
Group
$
5
1,300
127
196
1,628
6,349
$
Eliminations/
Reclassi-
flcallans(1 )
$
$
(88)
(5)
(93)
(97)
8,571
2,462
5,310
(23)
(327)
38,460
14,856
9,065
4,400
$112,039
$ 12,479
13,711
26,190
23,213
20,507
7,722
$ 77,632
4,502
$23,512
$38,460
8
327
(4,400)
$(4,605)
$
$
$
$
(280)
(280)
4
(3,400).
(58)
(5)
$(3,739)
154
2,143
2,297
3,400
3,750
48
$ 9,495
ConSOlidated
AT&T Carp.
1,024
10,453
1,287
1,120
13,884
39,618
32,693
8,548
7,445
38,460
19,366
9,392
$169,406
$ 12,633
15,574
28,207
23,217
24,199
7,765
$ 83,388
(1) Includes the elimination of inter-group transactions, consolidating entries as well as reclaSSifications and
adjustments related to AT&T Wireless Group tracking stock.
84
TRE - 547
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Balance Sheet
At December 31,1999
AT&T
Common
Minority Interest .........................
Company-Obligated Convertible Quarterly Income
Preferred Securities of a Subsidiary Trust
Holding Solely Subordinated Debt Securities of
AT&T .............................. ,
SHAREOWNERS' EQUITY
AT&T Common Stock .....................
Liberty Media Group Class A Common Stock ....
Liberty Media Group Class B Common Stock ....
Other shareowners' equity ..................
Other shareowners' equity due to related party ...
TOTAL SHAREOWNERS' EQUITY .............
TOTAL LIABILITIES AND SHAREOWNERS'
EQUITY ..............................
Slack
AT&T
Wireless
Group
Group
2,371
Liberty
Media
Group
Eliminations!
Reclassi·
flcollons(1 I
20
2,391
4,700
4,700
27,336
12,997
1,000
13,997
38,460
3,196
2,314
217
(5,593)
(1,000)
(866)
$112,039
$23,512
$38,460
$(4,605)
27,336
Consolldaled
AT&T Corp.
38,460
3,196
2,314
217
73,200
78,927
$169,406
(1 ) Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
85
TRE - 548
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Statement of Cash Flows
For the year ended December 31, 1999
AT&T
Common
Stock
Group
AT&T
Wireless
Group
Liberty
Media
Group
NET CASH PROVIDED BY OPERATING ACTIVITIES
$ 10,907 $ 867 $
INVESTING ACTIVITIES
Capital expenditures and other additions .........
(11,795)
(2,272)
Equity investment distributions and sales .....
1,639
236
Equity investment contributions and purchases ....
(7,837)
(284)
Net acquisitions of businesses including cash
acquired ...............................
(6,955)
244
Other ......... , .......... , .............
(960)
(47)
NET CASH USED IN INVESTING ACTIVITIES ......
(25,908)
(2,123)
FINANCING ACTIVITIES
Proceeds from long· term debt issuance ..........
8,396
Retirement of long-term debt ..................
(2.807)
Issuance of convertible securities ..............
4,638
Net acquisition of treasury shares ..............
(4,624)
Dividends paid ............................
(2,712)
Increase in short·term borrowings, net ...........
10,173
65
Other ........................ , .........
(177)
1,169
NET CASH PROVIDED BY FINANCING ACTIVITIES
12,887
1,234
Net decrease in cash and cash equivalents .......
(2,114)
(22)
Cash and cash equivalents at beginning of year ....
3,133
27
Cash and cash equivalents at end of year ........ $ 1,019 $
5 $
Eliminations/
Reclassi-
fications(l )
$(253)
47
941
988
(735)
(735)
$
-
Consolidated
AT&T
Corp.
$11,521
(14,020)
1,875
(8,121 )
(6,711)
(66)
(27,043)
8.396
(2,807)
4.638
(4,624)
(2,712)
10,238
257
13.386
(2,136)
3,160
$ 1,024
(1 ) Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
86
TRE - 549
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Income Statement
For the year ended December 31, 1998
AT&T
Common
Stock
Group
AT&T
Wireless
Group
External revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,817 $ 5,406
Inter-group revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47,890
5,406
Operating Expenses
Costs of services and products ...................... .
8,336
2,363
Access and other connection . . . . . . . . . . . . . . . . . . . . . . . .
15,117
Selling, general and administrative ................... .
10,845
1,931
Depreciation and other amortization .................. .
3,534
1,079
Amortization of goodwill, franchise costs and other purchased
intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Net restructuring and other charges .................. .
2,514
120
Inter-group expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(183)
256
Total operating 8xpenses ................ , .. , , ..... .
40,207
5,749
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,683
(343)
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
811
650
Inter-group interest income . . . . . . . . . . . . . . . . . . . . . . . . . .
246
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
515
(70)
Inter-group interest expense . . . . . . . . . . . . . . . . . . . . . . . . .
190
Income from continuing operations before income taxes,
minority interest and earnings (losses) from equity
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,225
187
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . .
2,996
59
Minority interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net earnings (losses) from other equity investments ....... .
(108)
36
Income from continuing operations ................... .
5,121
164
Dividend requirements on preferred stock held by AT&T, net. .
56
Income from continuing operations after preferred stock
dividends. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,121 $ 108
(1)
Eliminations!
Reclassifications(1)
$
$53,223
(73)
(73)
53,223
(204)
211
(6)
(235)
10,495
15,328
12,770
4,378
207
(120)
(73)
(220)
147
(180)
(246)
(18)
(190)
251
2,514
(71 )
(6)
21
(6)
(50)
(56)
$
Consolidated
AT&T Corp.
6
45,736
7,487
1,281
427
8,341
3,049
21
(78)
5,235
$ 5,235
Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
87
TRE - 550
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
Consolidating Condensed Statement of Cash Flows
For the year ended December 31, 1998
AT&T
Common
Stock
Group
NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . . . ..
INVESTING ACTIVITIES
Capital expenditures and other additions .............. .
Decrease in other receivables ....................... .
Net sales of marketable securities .................... .
Equity investment distributions and sales ............... .
Equity investment contributions and purchases .......... .
Net acquisitions of businesses including cash acquired
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET CASH PROVIDED BY INVESTING ACTIVITIES ....... .
FINANCING ACTIVITIES
Proceeds from long-term debt issuance ............... .
Retirement 0/ long-term debt ....................... .
Net acquisition of treasury shares .................... .
Dividends paid ................................. .
Increase in short-term borrowings, net. . .
. ..... .
Other ......................... , .............. .
NET CASH USED IN FINANCING ACTIVITIES ....... , ... ,
NET CASH PROVIDED BY DISCONTINUED OPERATIONS .. .
Net increase in cash and cash equivalents ............. .
Cash and cash equivalents at beginning of year ......... .
Cash and cash equivalents at end of year .............. .
$ 9.928
AT&T
Wireless
Group
$
(6,509)
6,303
307
148
(1,118)
4,183
(60)
3,254
(2,610)
(3,321 )
(2,187)
(3,076)
833
(10,361 )
2,821
312
$ 3,133
Eliminations/
Reclassi·
fications(t)
Consolidated
AT&T Corp.
$(125)
$10,217
(1,219)
15
100
1,354
(156)
324
(65)
238
14
(7)
(7,713)
6,403
307
1,516
(1,281)
4,507
(157)
3,582
414
43
(674)
(631 )
(32)
90
(57)
(57)
92
21
6
$
27
$ -
(2.610)
(3,321 )
(2,187)
(3,033)
102
(11,049)
92
2,842
318
$ 3,160
(1) Includes the elimination of inter-group transactions, consolidating entries as well as reclassifications and
adjustments related to AT&T Wireless Group tracking stock.
88
TRE - 551
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
20_
QUARTERLY INFORMATION (UNAUDITED)
2000
Revenue' .......................................... .
Operating income (loss)2 ............................... .
Net income ......................................... .
AT&T Common Stock Group:
Earnings (loss) per share:
Basic ........................................... .
Diluted .......................................... .
Dividends declared '................................. .
First
Second
Third
Fourth
$15,901
2,402
$ 2,683
$16,221
3,267
$ 2,034
$16,975
2,954
$ 3,072
$16,884
(4,346)
$(3,120)
$
$
$
.35
.35
.22
$
.55
.54
.22
$
.54
.53
.22
AT&T Wireless Group':
Earnings (loss) per share:
Basic and diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
$
-
$
.06
$
(.01)
$
.16
Liberty Media Group':
Earnings (loss) per share:
Basic and diluted' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
$
.37
$
.10
$
.68
$
(.57)
Stock price':
AT&T common stock
High ............................................
Low ............................................
Quarter-end close ..................................
AT&T Wireless Group common stock
High ............................................
Low ............................................
Quarter-end close ..................................
Liberty Media Group Class A common stock'
High ............................................
Low ............................................
Quarter-end close ..................................
Liberty Media Group Class B common stock'
High ............................................
Low ............................................
Quarter-end close ..................................
89
TRE - 552
.
.
.
$
$ 61.00
44.31
56.25
.
.
.
$
(.45)
(.45)
$ .0375
$ 58.81
31.25
31.63
$ 35.19
27.25
29.38
$ 30.00
36.00
23.56
27.88
29.56
20.50
20.88
24.94
16.38
17.31
16.50
17.25
.
.
.
30.72
24.44
29.63
29.94
19.19
24.25
26.56
17.44
18.00
19.25
10.75
13.56
.
.
.
36.56
27.00
32.81
32.69
22.13
32.50
32.63
18.75
18.75
20.63
12.75
18.75
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
First
Second
Third
Fourth
1999
Revenue' .......................................... .
Operating income2 . . . • . . . • • • . • . • • • • • . • • • • • . • • • • • • • • . . .
Net income (loss) .................................... .
$14,117
2,116
$ 1,018
$15,752
2,913
$ 1,045
$16.333
3,389
$ 1,416
$16.398
2,441
(51 )
$
AT&T Common Stock Group:
Earnings per share:
Basic ........................................... .
Diluted .......................................... .
Dividends declared ................................... .
$
$
$
.39
.38
.22
$
$
$
.50
.49
.22
$
$
$
.51
.50
.22
$
$
$
.36
.36
.22
Liberty Media Group':
Loss per share:
Basic and diluted' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
$
.02
$
.21
$
.09
$
.48
Stock price':
AT&T common stock
High ............................................ .
Low ............................................ .
Quarter-end close ............... .
Liberty Media Group Class A common stock'
High ............................................ .
Low ............................................ .
Quarter-end close .................................. .
Liberty Media Group Class B common stock'
High ............................................ .
Low ............................................ .
Quarter-end close .................................. .
$ 64.08
50.58
53.20
$ 63.00
50.06
55.81
$ 59.00
41.81
43.50
$ 61.00
41.50
50.81
14.53
10.95
13.15
18.52
13.13
18.38
19.84
15.44
18.66
28.34
17.94
28.41
14.56
11.13
13.44
18.63
13.69
18.63
19.88
16.00
19.88
34.38
19.31
34.38
1.
Results have been restated to reflect certain franchise tax expenses as revenue and expense in the
amount of $21 in first quarter 1999, $61 in second quarter 1999, $63 in third quarter 1999, $64 in fourth
quarter 1999 and $65 in first quarter 2000. This restatement had no impact on operating income or net
income.
2.
Operating income (loss) included net restructuring and other charges of $773 in first quarter 2000, $24 in
third quarter 2000, $6,232 in fourth quarter 2000, $731 in first quarter 1999 and $804 in fourth quarter
1999. Second quarter 1999 included a net restructuring and other charges benefit of $29.
3.
No dividends have been declared on AT&T Wireless Group or Liberty Media Group (LMG) common
stocks.
4.
Amounts have been restated to reflect the June 2000 two-for-one split of LMG common stock.
5.
Stock prices obtained from the New York Stock Exchange Composite Tape.
90
TRE - 553
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
21.
NEW ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities." Among other provisions, it requires that entities recognize all
derivatives as either assets or liabilities in the statement of financial position and measure those instruments at
fair value. Gains and losses resulting from changes in the fair values of those derivatives would be accounted
for depending on the use of the derivative and whether it qualifies for hedge accounting. The effective date for
this standard was delayed via the issuance of SFAS No. 137. The effective date for SFAS No. 133 is now for
fiscal years beginning after June 15, 2000, though earlier adoption is encouraged and retroactive application
is prohibited. For AT&T, this means that the standard must be adopted no later than January 1, 2001.
In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain
Hedging Activities," as an amendment to SFAS No. 133. This statement provides clarification with regard to
certain implementation issues under SFAS No. 133 on specific types of hedges.
On January 1, 2001, AT&T adopted SFAS No. 133. We recorded a cumulative effect of an accounting
change, net of applicable income taxes, of approximately $1,370 of income, or approximately $0.34 per
diluted share, primarily attributable to fair value adjustments of debt instruments, including those acquired in
conjunction with the MediaOne merger, as well as to our warrant portfolio. In addition, in connection with the
adoption of SFAS No. 133, we reclassified certain investment securities, which support debt that is indexed to
those securities, from "available-for-sale" to "trading." This reclassification resulted in the recognition of a
charge of $1,724, or approximately $0.43 per diluted share, net of applicable taxes, which was recorded as a
reduction of other income. As available-far-sale securities, changes in fair value were previously included
within other comprehensive income as a component of shareowners' equity. In addition, LMG recorded a
cumulative effect of an accounting change, net of applicable income taxes, of approximately $800 of income,
or approximately $0.31 per share.
The impact of the adoption of SFAS No. 133, as amended by SFAS No. 138, on AT&T's future results of
operations is dependent upon the fair values of our derivatives and related financial instruments and could
result in pronounced quarterly fluctuations in other income in future periods.
In September 2000, the FASB issued SFAS No. 140, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities - a Replacement of FASB Statement No. 125." This statement
provides accounting and reporting standards for transfers and servicing of financial assets and
extinguishments of liabilities. Under these standards, after a transfer of financial assets, an entity recognizes
the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets
when control has been surrendered, and derecognizes liabilities when extinguished. This statement provides
consistent standards for distinguishing transfers of financial assets that are sales from transfers that are
secured borrowings. This statement is effective for transfers and servicing of financial assets and
extinguishments of liabilities occurring after March 31, 2001. AT&T does not expect that the adoption of SFAS
No. 140 will have a material impact on AT&T's results of operations, financial position or cash flows.
22.
SUBSEQUENT EVENTS
On January 12,2001, AT&T announced that Cox and Comcas! had exercised their rights to sell a
combined total of 6004 million shares of Excite@Home Series A common stock to AT&T as part of an
agreement announced in August 2000 to reorganize Excite@Home's governance. Cox and Comeast elected
to receive shares of AT&T common stock in exchange for their Excite@Home shares. AT&T is currently in
discussions to renegotiate the terms of the put options which may result in a change to the number of shares
91
TRE - 554
AT&T CORP. AND SUBSIDIARIES (AT&T)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in millions unless otherwise noted (except per share amounts)
of AT&T stock that Cox and Com cast will receive, as well as the number of Excite@Home Shares, if any AT&T
receives. There can be no assurance that an agreement will be reached with Cox and Comcast.
On January 22, 2001, AT&T and NIT DaCoMa (DaCoMa) finalized an agreement whereby DaCoMa
invested approximately $9.8 billion for a new class of AT&T preferred stock, termed DaCoMa Wireless tracking
stock, that is economically equivalent to 406 million shares of AT&T Wireless Group tracking stock and reflects
approximately 16% of the financial performance and economic value of AT&T Wireless Group. AT&T allocated
$6.2 billion of the proceeds to AT&T Wireless Group. Each share of DaCoMa Wireless tracking stock is
convertible at any time into AT&T Wireless Group tracking stock. Upon the conversion of the DaCoMa
Wireless tracking stock, AT&T will reduce its portion of the financial performance and economic value in AT&T
Wireless Group by 178 million shares, and the balance of the 406 million shares will come from the issuance
of 228 million new shares of AT&T Wireless Group tracking stock. Additionally, upon completion of the
planned split-off of AT&T Wireless, the DaCoMa Wireless tracking stock and related warrants will automatically
be converted into AT&T Wireless Group tracking stock and thereafter be exchanged on the same terms as all
other shares of AT&T Wireless Group tracking stock in the split-off. In the event that AT&T has not split-off
AT&T Wireless by specified dates beginning January 1, 2002, DaCoMa will have the right, at its election, to
require AT&T to repurchase from DaCoMa the preferred shares initially issued to them at DaCoMa's original
purchase price plus interest up to the date of payment. The interest under this right will be treated as
preferred stock dividends, with charges recorded as a reduction of AT&T Common Stock Group earnings. In
addition, DaCoMa acquired five-year warrants to purchase the equivalent of an additional 41.7 million shares
of AT&T Wireless Group tracking stock at $35 per share. As part of the agreement, DaCoMa obtained a seat
on AT&T's board of directors until AT&T Wireless Group is split-off from AT&T as a separate public company,
which is expected to occur later in 2001. At that time, DaCoMa will retain representation on the new public
AT&T Wireless board. Receipt of the DaCoMa proceeds reduced AT&T's existing $25 billion credit facility by
$1.8 billion.
In January 2001, AT&T entered into agreements with certain network equipment vendors. which extend
through 2004, to purchase next-generation wireless network equipment for a total of approximately $1.8
billion.
On February 27,2001, AT&T entered into an agreement with Vodafone Group pic to sell our 10% stake in
Japan Telecom Co. Ltd for approximately $1.35 billion in cash. The transaction is expected to be completed in
April 2001 and will result in a gain.
On March 1, 2001, AT&T Wireless completed a private placement of $6.5 billion in notes. The notes pay
interest at rates ranging from 7.35% to 8.75% per annum, with maturity dates ranging from 2006 to 2031. The
notes include customary covenants and registration rights. As a result of the issuance of these notes, AT&T's
existing $25 billion credit facility was reduced by $4.8 billion.
On March 23, 2001. AT&T Wireless entered into $2.5 billion in revolving credit facilities. The facilities
consist of a 364-day facility of $1.25 billion and a five-yearrevolving credit facility of $1.25 billion. The facilities
may be used for general corporate purposes and are subject to customary covenants and events of default.
92
TRE - 555
Board of Directors
c. Michael Armstrong.
Chairman of the Boar an Chief
Executive Officer of AT&T since
1997.
Kenneth T. Derrl l
Chairman of the Board. Retired.
Chevron Corporation. an international oil company. Director since
1995. 1,2
M. Kathryn Eickhoff_
President, Eickhoff = omics,
Inc., economic consultants.
Elected to Board in 1987. 1,4
Walter Y. Elisha l l
Retired Chairman and Chief
Executive Officer, Springs Industries Inc .. a textile manufacturer.
Director since 1987. 3.4
Corporate Headquarters
32 Avenue of the Americas
New York, NY 10013-2412
George M.C. I
Retired Chairman
East·
man Kodak Company, an imaging
company. Elected to Board in
1997. 2.4.5,6
John C. MaloneChairman, Uber~edia Corpo·
ration, a cable programming
company. Elected to Board in
1999. 4,5,6
Sanford I. Weill .•
Chairman and Chief Executive
Officer, Citigroup, a financial services company. Director since
1998. 4,6
Donald V. Rtes.
Chairman, Retir~aterpillar Inc.,
an equipment manufacturer.
Director since 1997. 3.4.5.6
Donald F. MCHenry.
President, IRe Group. international relations consultants; former U.S. Ambassador to the
United Nations. Director since
1986. 1.2.3
John D.
Chairman and i Executive
Officer. AT&T Wireless Group.
Director of AT&T since 1997.
Am os B. Hostetter.
Former Chairman
executive Officer, Continental Cablevisian, Inc., a cable communications company. Elected to Board
in 1999. 2
Ralph S. larse.
Chairman and Chief Executive
Officer, Johnson & Johnson, a
pharmaceutical, medical and
consumer-products company.
Director since 1995. 1.4
Lou is A. Simpson,_
President and CEi mpital
Operations, GEICO Corporation,
an insurance company. Director
since 2000. 1.2
Michael!. sovern.
President Emeritus and Chancellor Kent Professor of law, Columbia University. Elected to Board
in 1984. 1,2,5
1. Audit Committee
2. Compensation and Employee
Benefits Committee
3. Governance and Nominating
Committee
4. Finance Committee
5. Uberty Capital Stock
Committee
6. Wireless Capital Stock
Committee
Ages are as of January 1, 2001.
Corporate Information
AT&T on the World Wide Weo
The AT&T home page - www.att.com - and the AT&T Wireless home pagewww.attwireless.com-areyourentrypoints for a vast array of information,
including company news and details on products and services. You're also
encouraged to visit the AT&T Investor Relations Web site (www.att.com / ir/)
or for AT&T Wireless (www.au.com/ wlrelesslr/ ) for up-to-the-minute information for shareowners and the financial community.
Stock Information
AT&T (ticker symbol T) is listed on the New York Stock Exchange, as well
as the Boston. Chicago. Cincinnati, Pacific and Philadelphia exchanges in
the United States. and on stock exchanges in Brussels, london. Paris and
Geneva. As of December 31, 2000. AT&T had 3.8 billion shares outstanding, held by more than 4.8 million shareowners. AT&T Wireless Group common stock (ticker symbol " AWE"). tracking stock of AT&T. is listed on the
New York Stock Exchange. As of December 31, 2000, AT&T Wireless had
361.8 million shares outstanding held by 3,681 registered shareowners.
Uberty Media Group Class A and Class B common stock (ticker symbols
"LMG.A" and ·lMG.B"), tracking stock of AT&T. are listed on the New Yorl<
Stock Exchange. As of December 31. 2000, liberty Media Class A had 2.4
billion shares outstanding, held by 6,842 shareowners; liberty Media Class
B had 206.2 millioo shares outstanding, held by 375 shareowners.
Electronic Access to Pro}l;y Materials
In an effort to reduce the printing. enclosing. and mailing costs associated
with the distribution of the AT&T Annual Report and Proxy Statement, AT&T
registered shareholders can now elect to electronically access, view, and
download the AT&T Annual Report and Proxy Statement as well as other
TJaterials via the AT&T Investor Relations Website at www.att.com/ irorby
'ailing 1·800-348-8288, With this option, shareholders will continue to
receive the Notice of Meeting, proxy card. and a prepaid return envelope
via U,S, mai1. Beneficial owners can request electronic access by contact·
. ing their bank or broker.
Annual Meeting
The 116th Annual Meeting of Shareowners will convene at 9:30 a.m. at
the Cincinnati Convention Center, Cincinnati. Ohio, on May 23, 2001.
Supplier DJ'.'erslty Ini tiative
As part of AT&T's Supplier Diversity Initiative. approximately $1.7 billion of
AT&T's total purchases in 2000 were made from minority-, women- and
service-disabled-veteran-owned business enterprises, More information is
available online at www.att.com/supplier_diversity/.
AT&T Giving
For more than 100 years. AT&T has built a tradition of investing in local
communities through our ongoing support for education. civic and commu·
nity service, the environment, public policy and the arts. In 2000, the
AT&T Foundation donated $44 million to nonprofit organizations in local
communities throughout the United States and around the world. Also in
2000. AT&T employees volunteered nearly one million hours of community
service through the AT&T CARES program. And. the AT&T learning Net·
work. an online program, helped teachers. community members and fami·
lies improve teaching and learning through the effective use of technology.
For more information on the AT&T Foundation. AT&T CARES and the AT&T
learning Network. visit our Web site at W'WIN.att,com/givingJ.
Telephone Pioneers of America
Since 1911. AT&T has been a sponsor of The Telephone Pioneers of Amer·
ica, the world's largest, industry·based volunteer organization. AT&T
employees ~nd retirees comprise 60,000 of its members. For more information, visit WVtW.telephone-pioneers.orgf,
Environment. Health & Safety
AT&T is dedicated to creating a safe and healthy workplace for AT&T
employees and strives to maintain OUT reputation as one of the top COfporate environmental champions. More information about AT& T's environ-
ment, health and safety initiatives may be found online at www.att.com/ehsf.
o
This annual report is printed on recycled paper containing a minimum of
~ 10% de-inked post-consumer fiber. Please recyc!e.
e 2001 AT&T. All rights reserved . Printed in tile USA
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-
_
AT&T
32 Avenue of the Americas/New York. NY 10013-2412/212.387.5400/www.att.com
ATT-AR-2000
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TRE - 558
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The year 2000 will be remembered as one of antidpation of the new millennium, and
(
transformation for AT&T. Through out the antidpation and transformation, one thing
remained constant, AT&T's commitment to its customers, shareholders and communities.
We are keenly aware of the hundreds of thousands of minority-, women- and veteranowned business enterprises (MWVBEs) who provide products and services to our
communities. AT&T has pioneered a tradition of utilization of MWVBEs and recognizes
the critical elements of a successful Supplier Diversity Program. Those elements are
Commitment plus Leadership plus Development equals Results. Commitment spans the
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entire scope of our business. Our CEO and other corporate officers, create an environment
to drive awareness of and foster support for this corporate initiative. The message is
evident; at AT&T Supplier Diversity is a business imperative and an essential component
to our business strategy. Leadership from our executive team provides the vision to
develop innovative polides, and procedures that guide our Supplier Diversity Program.
Business development initiatives from our Supplier Management team aid minority-,
women- and veteran-owned businesses to achieve successful business growth and
expansion. When all of these factors are successfully deployed, the results are impressive.
u
In the year 2000, AT&T spent approximately $1.7 billion with minority-, women-and
veteran-owned businesses. These results were unmatched across our industry.
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AT&T 2000 Supplier Diversity Annual Report
0
2000 wa.; a critical year for AT&T. We almculCed j:-IaTlS to transfo,:-': C'1" Gl!i!21<h!lj hT~O a fa:::!ly Cy
four bcsbesses, each a leader ill its irdilSi71j, ere e:::ch w:th its O'f!!': !:'tf ::1 clsic:!!2?S Cl?1!' ;;:'"i:::i':i2S. (
Each of the AT&T units - Business. Consumer, Broadband, and Wireless - will have the focus and flexibility
to achieve its priorities. And the highest priority of each will always be to serve its customers better than anyone else, and better each time than the time before.
Serving customers well involves a critical chain of events that many times begins with our suppliers. That's why
supplier quality is essential. And we know from experience that a key to supplier quality is maintaining a diverse
supplier group_
As we focus on building the strengths of our businesses, supplier diversity will continue to be valued, Ifwe are
to remain leaders in the global communications industry, we must have available to us skills and perspectives that
mirror the rich diversity of our world, both among our own people and those who fonn our supplier network.
The pages of this report give clear evidence of AT&T's program to build our purchases from minority-, womenand veteran-owned businesses, The numbers show that as we undergo our transformation, we remain deeply
committed to using these companies,
Diversity is as important in AT&T's suppliers, contractors, and subcontractors as it is in our employee body, We
are proud to be a recognized leader in supplier diversity, And we're committed to maintaining our leadership
this year and in the future,
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SUPPLIER DIVERSITY
Mission
(
To grow and expand AT&T's global business and shareholder value by aggressively engaging and developing
diverse value-added suppliers which creates a competitive advantage.
Vision
To increase shareholder value and competitive advantage by developing a diverse supplier base.
SUPPLIER DIVERSITY DEFINITIONS
f.1WVBE is an acronym for Minority-owned Business Enterprise (MBEJ. Women-owned Business Enterprise
(\VBE) and Veteran-owned (V) enterprises. which is also used to describe the program that tracks suppliers
identified as M\WBEs.
Businesses eligible for MWVBE status must be 51 % owned, controlled and operated by racial or ethnic
minorities, women or veterans. Minority- and women-owned businesses must receive third party certification. If the enterprise is publicly held, minorities or women must hold 51% of the stock.
DEFINITION OF MBE
A minority business enterprise is defined as one which is at least 51 % owned. controlled and operated by an
ethnic or racial minority group member(s).
••
•••••
••
The following groups are classified as minorities:
• Native Americans. including American Indians. Eskimos. Aleuts and native Hawaiians.
• Asian Pacit1c Americans, including all persons having origins in Japan, China, Philippines, Vietnam, Korea.
Samoa. Guam. the U.S. Trust Territory of the Pacific Islands (Republic of Palau). the Northern Mariana
lslands. Laos. Kampuchea (Cambodia), Taiwan. Burma. Thailand, Malaysia. Indonesia. Singapore. Brunei.
Republic of the Marshall Islands. or the Federated States of Micronesia.
• Asian lndian Americans, including all persons having origins in India, Pakistan. Bangladesh. Sri Lanka,
Bhutan or Nepal.
• African Americans. including all persons having origin in the Black racial groups of Africa.
• Hispanic Americans, including all persons having origins in Mexico. Puerto Rico, Cuba. Central or South
America. or other Spanish culture origins.
DEFINITION OF WBE
A woman-owned business enterprise must be at least 51 % owned by women who are not racial or ethnic
minorities. Women-owned businesses are reported separately from minority businesses.
A business owned by a minority woman is classified as a minority-owned business only - not counted under
both categories.
DEFINITION OF VBE
A veteran-owned business must be a small business concern: not less than 51 percent of which is owned by one
or more veterans. or in the case of any publicly owned business, not less than 51 percent of the stock of which
is owned by one or more veterans; and the management and daily business operations of which are controlled
by one or more veterans. Service -disabled veteran business enterprises are included in the category of veteranowned businesses.
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In 2000, severa! critical stakeholders recognized AT&T's leadership i~ the area of supplier
diversity. We received t~e Pioneer A'Na~d from the U.S. Departmer.t of Commerce for iniloviI- (
tions in implementing large transactions with minority and women businesses. AT&T was also
recognized by the Women's Business Enterprise National Council as one of the best corporations in the count')' for doing business with women businesses.
Of course, AT&T continues to pride itself in the recognition that we receive for our work in supplier diver-
sity. That work starts at the top of the corporation. The most senior management of the firm works in support of supplier diversity, as do associates throughout the enterprise.
OUf work is driven. in part. by the supplier diversity goals that we all share. It is driven, in part, by our 32year history of focusing on supplier diversity that's resulted in a culture of leadership in this area. And it
is driven, in part. by the expectations of our customers and other key stakeholders.
We are expected to provide leadership in this critical area of the American economy. And we expect to be
leaders - as a corporation, within our operating units and as individuals.
We leveraged our own expectations for leadership in supplier diversity in 2000 to implement more formal
programs in AT&T Wireless Group and AT&T Broadband. Donnita Weese serves as the Supplier Diversity
Champion for AT&T \Vireless Group. Donna Gallup serves as the Supplier Diversity Director in AT&T
Broadband. Along with the leadership of Winston Smith across our Consumer, Business. Labs and common-operating units. the AT&T brand will continue to signal leadership in the area of supplier diversity.
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LEADERSHIP TEAM
The AT&T Supplier Diversity Leadership Team is an executive team that represents our business segments
and divisions. The role of the team representatives includes identifying and recommending strategies for
increasing the use of M\V\lBE suppliers within their specific business segment. This includes establishing
(
goals and driving results, providing support systems. human and financial resources, and employee commu-
nication and recognition. Our 2000 team members represented the following AT&T Business Segments:
.•
ee •• e
e
•
AT&T Business Markets
Law & Government Affairs
Brand Strategy
AT&T Network Services
AT&T Consumer Harkets
Public Relations
Chief Financial Office
AT&T Solutions
Corporate Strategy
Supplier Management Division
Global Real Estate
AT&T Wireless Group
Human Resources
AT&T Labs
SUPPUER DIVERSITY ADVISORY COUNCIL
The year 2000 marked the final term of the inaugural AT&T Supplier Diversity Advisory Council. The
team of industry experts and leading advocaL)' representatives provided our company with invaluable input and
advice on increasing business opportunities and expanding outreach to minority-, women and veteranowned business enterprises.
The council worked diligently toward development of recommendations and proposals on substantive program initiatives. Among the key areas addressed were:
Access to Capital
Research & Develupment
Telecommunications
Business Outreach
Professional Services & Marketing
Construction & Building Infrastructure
We would like to extend our sincere thanks and appreciation to the members of the 1999-2000 SDAC for
their dedication and commitment.
''--..
'
Courtland Cox. Director. Dept. of Commerce, Minority Business Development Agency
Aida DeSoto, President. Concepts Office Furnishings. Inc.
Linda Drake, Chair and Founder, TCIM Services, Inc.
Mary Ann Elliott, President/CEO, Arrowhead Space and Telecommunications, Inc.
Melody Hopson, President. Ariel Capital iVlanagement. Inc.
John Lopez, Chairman, Association for Service Disabled Veterans
Darlene Mar, Greenlining Institute
Emmit McHenry. PresidenUCEO. NetCom Solutions, International. Inc.
Benjamin Palate, Sr. President, Polote Construction, Inc.
Maurice Tose. President, TeleCommunications Systems, (nc.
Massey Villareal. PresidenUCEO - Precision Task GrouP. (nc.
York Wang. President, York Telecom Corporation
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AT&T 2000 Sllpplier Diversity Annual Report
0
Restructuring "Creating Value"
(
It became dear three years ago that technology and regulation would transiorm the communications industry. AT&T had
to act. We needed to move beyond long distance.
On October 25th, 2000, AT&T announced plans to create a family of four new companies, each operating under the
AT&T brand, committed to uniform standards of quality, and continuing to bundle each other's services through inter-rompany
agreements. Under the company's restructuring plan, which it expects to complete in 2002, each of its major units
will become a publicly held company, trading as a common stock or a tracking stock.
Each of the four is a leader in a different segment of the communications industry and each will have the freedom to meet
the unique needs of its individual market. As a family of AT&T businesses, all four will share the power of the AT&T
brand, networks, and technology.
AT&T BUSINESS
The biggest of our four businesses, AT&T Business meets the global communications needs of 5 million corporate
customers. Its lineup of services range from data neD,vorking at speeds of up to 10 gigabits per second - the fastest
commercially available· to providing companies with global telephony and advanced services. A $28.5 billion business
last year. it's focused on satisfying the world's appetite for faster, smarter network services.
AT&T Business portfolio of services includes broadband data and Internet Protocol HPl networking to web host 4
ing. virtual private nehvorks, e4commerce support, local telephony and business long distance service.
AT&T BROADBAND
AT&T Broadband is a world leader in delivering high4growth services, from basic cable and digital TV. to high 4
speed Internet access and cable telephon}', with video 4on 4demand and other advanced services on the way. This
business is bringing the broadband future to its customers now.
AT&T passed a milestone in 2000 when we completed our acquisition of MediaOne. Today we serve 16 million basic cable
customers on a netv.'Ork that encompasses 28 million homes. We're rapidly upgrading our networks to offer more cus·
tomers interactive digital broadband services that combine the power of 1\', telephone service, and the Internet. These
products are the high4growth segments of the broadband market, and we're providing them faster than anyone else.
AT&T CONSUMER
With 60 million customers, AT&T Consumer is by far the largest and most profitable major carrier in the market. and an
award 4winning leader in customer satisfaLtion. As we compete for long distance business with innovative customer offers,
we're also working to create new value by expanding our consumer Internet service. introducing new packages of integrat 4
ed services and making full use of our expertise in consumer marketing, customer care, and billing. \Ve are combining
long distance with newer data services that respond to changing customer life4styles and create new growth potentiaL
Earlier this year we launched the popular AT&T 717 offer, which combines interstate long distance with AT&T
WorldNetIE Internet access service, ranked number one in the 1.0. Power and Associates 2000 National Internet
Sen.oice Provider Customer Satisfaction Study SM. AT&T Consumer is investing now to expand our consumer
Internet service and introduce voice, data, and local and long distance integrated service packages.
AT&T WIRELESS
AT&T Wireless served more than 15 million people last year, increasing its customer base by 58 percent. The
business, in a strategic alliance with NIT DoCoMo. is now well positioned for leadership in the new and growing
market for wireless multi·media services. Being wireless means never having to find a phone. Affordable and
dependable wireless service has permanently changed the lifestyles of people around the world.
o
AT&T Wireless is a leader in bringing growth and excitement to this surging industry. We extended our service
footprint through building new facilities and strategic acquisitions. Together. including partnerships and affili·
ates. as well as roaming agreements. we cover 95 percent of the U.S. population.
AT&T 2000 Supplier Diversity Annual Report
TRE - 565
Supplier Diversity Initiatives for AT&T Broadband and AT&T Wireless
(
As a result of our business transformation. a new focus was placed on Supplier Diversity initiatives at AT&T Wireless
and AT&T Broadband in 2000. We believe that a successful supplier diversity program involves the integration of purchasing. business and sales units with our customers. Supplier diversity programs at AT&T Broadband and AT&T
Wireless Group will continue to support our long-standing tradition of utilization. commitment. and support to minority-.
women-and veteran-owned businesses. Each company will manage its day-to-day program which includes. supplier identification and management. outreach activities. and business development strategies.
DONNITA WEESE, AT&T Wireless
Ms. Weese is the Supplier Diversity Champion for AT&T Wireless Group (AWG) headquartered in Redmond, WA
She is responsible for compiling and reporting nationwide MWBE reports on behalf of AWe, Donnita works
with potential M\VBE suppliers to help pre-qualify companies for future business with AWe, while building rela-
tionships with MWBE organizations, to help AT&T Wireless expand usage of MWBE suppliers.
Donnita has been with AT&T Wireless Setvices for over 10 years, working in various functional areas throughout the company (i.e. Facilities. Marketing, Legal and Supply Management), Through years of experience in key
areas. Donnita has accumulated knowledge and an understanding of the AT&T Wireless Services standards
behind the company's dedication and detennination to be "Best in Class",
Donnita has been involved with numerous outreach and
minority. and women-owned business advocacy organizations
such as National Association of Women Business Owners, MED
Week. and Northwest Minority Supplier Development Council.
To ensure that the AWG MWBE program remains strong,
Donnita works closely with AT&T's Corp. Supplier
Diversity team.
DONNA GAUUp, Director of Dk'ersity Procurement, AT&T Broadband
Ms. Gallup was recently named Director of DiversitylProcurement for AT&T Broadband. to serve as the leader
of the Supplier Diversity Program within the Procurement Department. Donna is responsible for contractual
issues, structuring and implementation of policy and procedures, and developing business opportunities.
and maintaining outreach initiatives.
Donna has ten years of legal experience in the areas of the legislature and law, and five years of direct procurement experience, induding large event planning, RF'P and bidding implementation, contract negotiations, and fulfillment. Donna's experience with contracts and
supplier management flows
naturally with her position as
Director of Diversity.
Donna supports the Rocky
Mountain Minority Supplier
Development Council and various Chambers of Commerce
throughout the country.
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AT&T 2000 Suoolier Oivpro;.itv 4nnll,,1
O... M
....
A
Supplier deveiopment is a key requirement of any supplier management organization. AT&T
is proud of its accomplishments in this a~2a and of the resources we devote to the develop- (
ment of millDrity-. women-and veteran-owned businesses: whether as direct suppliers to our
firm. or as potential second-tier suppliers.
In 2000, our focus on supplier development was extensive. AT&T began a pilot Mentor/Protege program
within our procurement organization. This program provides assistance in areas such as business planning, product/service pricing. financial planning. and marketing, which are instrumental in assisting
M\VVBEs in continuing to expand their business horizons.
We continue our commitment to minority business development through education, by sponsoring minority businesses to the NMSDC program at Kellogg, the program at the Tuck School at Dartmouth. and the
minority enterprise development program at the University of Virginia. Through these programs, supplier diversity development leaders and buyers learn more about best practices and participate in the development of leading concepts in areas of access to capital and changing purchasing processes.
As proud as we are of the resources and leadership we provide in support of minority and women business
development through executive development. our efforts in 2000 did not stop there. We also leveraged our
leadership in the area of supplier diversity to make significant inroads in the critical area of access to capital to minority and women businesses. AT&T was involved in facilitating capital infusion to targeted suppliers through leading financial institutions. During 2000, AT&T saw several of its suppliers launch their
own capital infusion programs. including creation of merger and acquisition strategies.
Supplier development will continue to be important at AT&T. We are committed to it and expect to playa
leadership role in its evoh,';;on We are certain that focus in this area will lead to excellence in our results
and lay the ne<:es;'ary
for future success. both for AT&T and its suppliers.
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Supplier Diversity Profiles
(
GRUGGEN BUCKLEY
Judy Grugg,n, Chairman
Gruggen Buckley, a Minneapolis. MN based advertising agency, specializes in the creation and production of
promotional materials for AT&T Wireless SelVices (AWS). The firm is responsible for the AWS coverage maps,
as well as all production associated with point-of-sale signage, custom sales flyers, point-of-sale displays. and
AT&T Wireless calling plan brochures.
AT&T Wireless initially hired Gruggen Buckley to work on local Minnesota projects in 1994. but awarded them
all retail advertising and marketing work for the AT&T Wireless Services in 1998. Gruggen Buckley won
national assignments for creation and production of maps and calling plans in 2000. AT&T Wireless is the
agency's largest account.
THE POLOTE CORPORATION
Benjamin I'olote, Founder & President
The Palate Corporation has been providing construction services to public and private businesses for over 28
years. Driven by a team of talented construction professionals, The Pol ate Corporate has grown into a diverse,
multi-disciplinary organization, recognized as one of the premiere minority construction firms in the country.
Combining state-of-the-art systems such as electronic data interchange and shared information systems with
know-how, and innovation, Polote provides maximum control over each project and the capabilities to meet
diverse client requirements. Polate was chosen by the US Department of Commerce as the "Minority
Contractor of the Year" and Was named "Best Minority Contractor" in the southeastern United States.
As a new supplier to AT&T. The Polote Corporation provides construction services for the AT&T Network
Services Organization.
YORK TELECOM CORPORATION
Yorl< Wang, President
York Telecom Corporation serves both the public and private sector as a leading provider of voice, video. and
data communications solutions. Specializing in developing and implementing end-to-end business responses,
York Telecom tailors each solution to the specific needs of their clients.
York Telecom designs, installs and supports its application solutions across public and private channels.
Supported by an experienced staff of network analysis, planning. deSign, project. and program management professionals, York Telecom is uniquely positioned to sen.'e rapidly evolving c1il!nt needs. York Telecom is an authorized reseJlu and partner with major videoconferencing equipment manufacturers and networking equipment
manufacturers. The firm provides video telecom services to the AT&T Government Markets Organization.
PRECISION TASK GROUp, INC.
Massey Villarreal, President
Massey Villarreal is CEO and President of Precision Task Group (PTG) located in Houston, TX. Established in
1980. this growing company provides professional computer consulting services and solutions to public and private sector firms. Currently. PTG provides technical consulting services to AT&T. As a leading source for software
development. maintenance, and systems integration, PTG attracts customers by constantly improving and advancing their services to provide clients with a competitive edge in the automated global business community.
Mr. Villarreal is a diligent advocate for Hispanic businesses across the country. He has held leadership positions with the U.S. Hispanic Chamber of Commerce. the Texas Association of Mexican American Chambers of
.Commerce (TAM..\CC), an organization designed to promote economic empowerment, and leadership development. and the Latin American t-Ianagement Association (LAMA).
TRE - 568
AT.t".T
~nll" ~.
Minority Business Executive Education
(
AT&T proudly supports educational programs that contribute 10 entrepreneurial development and growth. In 2000,
we continued that tradition by providing support to these institutions and presenting scholarships to representatives
from minority-owned businesses for the following prestigious Business Executive Programs:
I.L Kellogg Graduale School of Management, Northwestern University, Chicago, IL
The Advanced Management Education Program (AMEP) at the Kellogg Graduate School of Management is
designed to provide certified, established, expansion-oriented Minority Business Enterprises (.I\18E5) with
the tools and skills necessary to achieve and sustain accelerated growth.
The AMEP program addresses the demanJs of management for MBEs under the following curriculum:
Access to Public and Private Markets, Changing Corporate Expectations, Core Competencies of HighGrowth MBE:;. Aspirations-based Strategic Planning, Critical EntrepreneuriallLeadership Traits, Capital
Markets and Capital Budgeting.
2000 AT&T Scholarship Recipient
Maryann Elliott, Presidc..71t
Arrowh~ad
Space & Telecommunications. Inc.
Fairtax, VA
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Darden Minority Business Execulive Program, University of Virginia, Charlottesville, 1(4
The Darden Minority Business Executive Program is designed to sharpen the understanding of basic financial
concepts used to manage business perfonnance and to improve managerial decision-making and broaden conceptual
framework for effective negotiating, and strengthening interpersonal influence and leadership skills,
2000 AT&T Scholarship Recipient
Ronald Carrington, President
Media Consultants Global. [nco
Richmond. VA
Amos Tuck Minority Business Execulive Program, Dartmouth College, Andover, ifrl
The Tuck Minority Business Executive Program (MBEP) offers minority business owners and executives the
basics for management excellence, including e-business, competitive analysis. team building,
performance management. strategic thinking, marketing, working capital management. and
operations strategy and media relations. Students learn how to utilize financial tools. practice
team building, and discover how to develop marketing plans for new products and services.
Many Tuck alumni enhance their MBEP experience by returning to Tuck to take the Advanced
Minority Business Executive Program.
AT&T supported program
development activities in 2000.
fDAT&T 2000 Supplier Diversity Annual Report
TRE - 569
\
Media and Advertising
(
AT&T supports minority-, women-and veteran-owned businesses through various creative alliances ensuring a unique
approach and diverse voice for its marketing, advertising and design initiatives. Lending a global creative perspective
to multiple media, minority suppliers help assure that the AT&T message is carried throughout all communities.
ADVERTISING
UniWorld Group
Founded by Byron Lewis in 1969, UniWorid is one the nation's largest
minority-owned advertising agencies. Uniworld is a full-selVice agency
that creates general market advertising and does specialty work in the
African-American. Hispanic, and Asian markets.
UniWorld's relationship with AT&T spans over 20 years. It has created
strategic alliances
are critical.
and implemented advertising and media buys directed at targeted ethnic
markets for AT&T's corporate division and the residential long-distance
business unit. UniWorld has also been instrumental in the creation and
development of AT&T's supplier diversity advertising efforts.
CREATIVE DESIGN
Tucher Hilliard Marketing Communications
Tucker Hilliard is a nationally recognized full-service multimedia marketing
and communications agency specializing in strategic marketing solutions
for the general market and ethnic communities. Staffed with a unique mix
of experienced marketing, multimedia. and advertising professionals. Tucker
Hilliard's innovative campaigns and promotions enable clients to execute
management objectives with Quantifiable results. Tucker Hilliard was chosen
to design AT&T's 1999 Supplier Diversity Annual Report.
MINORITY BUSINESS PUBLICATIONS
AT&T continues to maintain its commitment to communicate with minority suppliers through publications
that target minority businesses such as:
Minority Business News USA
Hispanic Network Magazine
Challenge News
MBE Magazine
....,.... hnmall.a:on .. ",m
tII6PANIC Network
MAGAZINE
CHALLENGE ="=f@r
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BE'
News·
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_ 125
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.. t'""_ _- - ' - - - - - - - - - - - - - - _ _ ,
AT&T 2000 Supplier Diversity Annual Reoort
m
AT&T achieved record supplier diversity results in 2000. Purchases of goods and services from
minority and women suppliers were at an all time high. Among minority suppliers, whole dollar (
results were up in every ethnic category, as were purchases from women suppliers.
We began 2000 in historic fashion. In January, AT&T made its largest payment ever to a minority firm, a com~
pany providing value added reseUer services associated with network equipment. Even though large transactions were a highlight of the year, our results were very well spread among almost all commodity groups.
In 2001, Our efforts in supplier diversity continue to be challenged by some ongoing issues: strategic sourcing. supply base downsizing. access to capital. access to information, and Our plan to develop a robust ecommerce environment. Those challenges are significant, but so is AT&T's commitment to supplier diversity. Successfully meeting those challenges will require a commitment to results. as well as supplier development. Excellence in this area is part of Our culture. It is engrained in our leadership. That culture and
our commitment to outstanding results will continue to propel supplier diversity at A.T&T to levels that
meet our Corporation's evolving needs.
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c
Financial Results
Minority-, woman-and veteralHlwned businesses provide high quality products at very competitive prices, helping to further
enhance shareholder value. In 2000, AT&T spent approximately $1.7 billion in goods and services supplied by these firms.
AT&T MWBE RESULTS BY ETHNIC GROUP 1999 & 2000
($ IN MIL)
2000
AFRICAN AMERICAN
4il.2
HISPANIC
253.9
297.5
ASIAN
NATIVE AMERICAN
TOTAlMBE
SUPPLIER DIVERSITY SPENDING
c
96.7
162.6%
242.1
22.9%
6.4
192.7%
678.2
53.5%
638.1
498.4
28.0%
1.679.5
1.176.6
42.7%
($ IN MIL)
(A) Company split - AT&T. Lucent, NCR
1.700
1.600
1.500
1.1\lO
1.300
1.100
333.0
18.8
$l,8oo
1.400
% chg
41.5%
1.041.4
WHITE FEMALE
TOTAL MWBE
1999
(8) AT&T sold AT&T Universal Card.
AT&T Solutions Customer Care and
AT&T Submarine Systems
!"~":":"c.::"~~:?~~:'::';~:'
1.000
900
800
700
:: ~' :.::.
..
;;;:
400
300
200
100
90
91
92
93
94
2000 CALIFORNIA RESULTS
Payments
96
97
98
99
00
($ IN MIL)
MBE
% of Total Procurement
9S
WBE
SOV
MWSOVBE
42.0
26.3
0.4
68.7
20.6%
12.9%
0.2%
33.7%
2000 SUPPLIER DIVERSITY RESULTS CATEGORIZED BY PRODUCT/SERVICE (TOTAL MWBE $1,679,500.)
Building Infrastructure
TRE - 572
AT&T 2000 Supplier D1verliity Annual Report
€I)
National Outreach
AT&T's Supplier Diversity Program objectives for supplier outreach and development are supported through the efforts
of many national, regional and local organizations and events. We acknowledge the numerous trade fairs, seminars,
and conferences that promote supplier diversity.
2000 NATIONAL OUTREACH AaJVITIES SUPPORTED BY AT&T SUPPLIER DIVERSITY
Black Enterprise Entrepreneurs Conference
Orlando, FL
Chicago Business Opportunity Fair
Chicago,IL
Congressional Black Caucus Legislative Sessions
Washington, DC
Hispanic CEO Roundtable
Washington, DC
Latin Business Association Expo.
Los Angeles, CA
National Center's Reservation Economic Summit
NAACP Convention
Phoenix, AZ
Baltimore, MD
National Association of Women Business (Miners Annual Conference
Orlando, FL
National Federation of Black Women Business Owners Leadership Awards
Washington, DC
National Minority Supplier Development Council Annual Conference
New Orleans, LA
National Minority Supplier Development Council Awards
New York, NY
National Minority Business Council Annual Business Awards
New York, NY
National Minority Enterprise Development Week
National Urban League Annual Conference
Washington, DC
New York. NY
Service Disabled Veteran Business EnterPrise Opportunity Fair
Sacramento. CA
U.S. Pan-Asian Chamber of Commerce Annual
Washington. DC
U.S. Small Business Week
Washington, DC
Women's Business Enterprise National Council Conference
Arlington, TX
REGIONAl/LOCAL AaiVITIES
Century City, CA
Asian Business Association Awards
California Black Chamber of Commerce Conference
Los Angeles, CA
Central South Texas Minority Trade Fair
Austin, TX
Colorado Women's Chamber of Commerce Fair
Denver, CO
DallasIFt. Worth Minority Business Dev. Council Opportunity Fair
Dallas, TX
Georgia Minority Supplier Development Council Opportunity Fair
Atlanta, GA
Houston Regional Purchasing Council Business Expo
Houston. TX
Latin Business Association Exposition
Los Angeles. CA
Los Angeles County Small Business Fair
Los Angeles, CA
NYINJ Minority Purchasing Council Expo
Northern California Supplier Development Council Trade Fair
Rocky Mountain Regional Purchasing Council Festival & Awards
Southern California Regional Purchasing Council Trade Fair & Awards
Virginia Regional Minority Purchasing Council Business Opportunity Fair
(1)AT&T 2000 SUpplier DIversIty Annual Report
TRE - 573
New York, NY
San Francisco, CA
Denver, CO
Los Angeles, CA
Richmond, VA
)
Supplier Diversity Events 2000
AT&T remains committed to alliances with minority organizations, participating in national events, and promoting
supplier diversity.
DIALOGUE ON DIVERSITY
AT&T celebrated the achievements of minority women at the Dialogue on Diversity's Sixth
Annual Entrepreneurship Awards. The 2000 Entrepreneurial Achievement Award was presented
to MaryAnn Elliott, President and CEO of Arrowhead Space and Telecommunications, Inc.
Ms. Elliott was nominated by AT&T,
Maryann Elliott, president, CEO Arrowhead Space & Telecommunications, Inc. accepts thE' 2000
Entrepreneurial Achievement Award during Dialogue on Diversity's Annual Recognition
Ceremony. Pictured left to right: Maryann Elliott, Cristim Caballero, Praident and Founder of
Dialogue on Dlver5lty, Hon. Marlene Fernandez del Granado, Ambassador of Bolivia. and Charles
Grfffln, AT&T law & Government Affairs.
I
,
. J' .r\jt:P
\Vti~
NATIONAL FEDERATION OF BLACK WOMEN BUSINESS OWNERS
AT&T participated in the Eighth Annual Black Women of Courage Awards of the National Federation
of Black \\Tomen Business Owners in Washington, DC. The awards ceremony, pays tribute to Black
women in Go\'ernment. Education, Civic & Community, Business, and Entertainment.
Yvonllf Thompson, President, Europe Federation of Black Women BusineM Owners, and Dr. Mary
Walker, President. National Federation of Black Women Business Owners, presenl the Civic and
Community Achitvement Award to Esther Sliver-Parker, President, AT&T Foundation and Corp.
Affairs Vice President, duting the 2000 "Slack Women of Courage" Awards.
)
NEWYORKINEW JERSEY MINORITY PURCHASING COUNCIL, INC.
The Partnership Awards Gala annually pays tribute to indi\'iduals who go "above and beyond!! in
words and deeds to assist the Council with the execution of its goaJs and objectives. This event also Tee·
ognizes outstanding certified MBEs who exemplify the Council's high standards within their business operations, and support development efforts among fellow MBEs and within their community.
P;dU>'ed left to right.., CridJiow, ComoUda1«\ Ed""" U>mpany, ~ Ireland, _den~ New ,"ri< I
New JersiY Minority Purd1aslng Coundl. Hitloo 0. Smllfl, Turner Construction, Harriet R. Midlel President,
NMSDC, Betty Manetta, President and CEQ, Agent Assodates, Gala MBE Co-Chair and G. WlMton Smith
Corporate CtrOlalr.
BLACK ENTERPRISE ENTREPRENEURSHIP CONFERENCE
AT&T associates share a moment with Ron Blaylock at the AT&T exhibit during the Black Enterprise
Magazine Entrepreneurial Conference in Orlando, Florida. The BE conference annually brings
together some 1000 minority business owners from across the country for seminars and networking.
Pictured left to right: Camlyn Odom Stet'te, AT&T Corporate Affairs Director, Roo Blaylock. President
and CEQ, BI~ & Partners, Brenda Davis and Gale Jones-Jackson, AT&T Business Services.
AMERICAN INDIAN CHAMBER OF COMMERCE
AT&T supported the American Indian Chamber of Commerce's 2000 Business Recognition
Luncheon which celebrates the achievements of Native American businesses.
Pictured left to right Fred Lona,AT&T SupplJer DiversJt}o Manager, Tracy Stanhoff, President American
Indian Clamber of Commerce.
TRE - 574
AT&T 2000 Supplier Diversity Annual Report
~
CAIng_'
BrocIukk _ . 'Ike PnsIdent,
AffaII1.A.T&T. delhrers COrpol1R ranarb at the NED
Week Gila
.-gnboslbe """""",slim"," of
small minority bustnesses aa'OS$ the aK1ntry.
"",<II
~ AT&T 2000 SuppfIer DMrsity Annual Report
AT&T wtre1e5r5 Group Supplier Diversity Champion
Donnlta Weese meets with suppliers
during tbe Business Expo.
TRE - 575
Udoy DIIoIakIa, Sen.... Partner. GIoba' CoasWtIng
UK, ...................on to C.WI_ Sm""
from the delegatfon of minority businesses anepd..
log the NED _
Conference.
•
The 2000 Minority Enterprise Development Week's Business Expo Is offldally underway with the ribbon cutting ceremony.
Sharing the honors left to right are. Unda Richardson. Public Affairs Specialist. MBDA; Unda Williams. Deputy Assoclate
Deputy Administrator. Office of Government Contracting. SBA; and leo Sanchez. Deputy Assistant Administrator. SBA.
Cutting the ribbon are Kerry Kltidand. Acting Associate Deputy Administrator. SBA; Courtland Cox. Director, MBDA;
C. Winston Smith. AT&T Supplier Diversity Director. MED Week 2000 Chair, Pat Hodge, U.S. Dept. of Transportation, and
Steve Simms, Vice President. National Minority Supplier Development Counen,
Minority Enterprise Development (MED) Week is an annual national celebration that recognizes outstanding
contributions of minority entrepreneurs and their advocates. The 2000 conference was co-sponsored by The
U.S. Department of Commerce's Minority Business Development Agency (MBDA) and The. U.S. Small Business
Administration. AT&T was honored to Chair the event.
"New Horizons: The Emerging Minority Marketplace", the MED Week 2000 theme, focused on major issues impacting
the growth and development of minority business enterprises. The conference, which held Minority Business
Summits and Workshops, a Business Expo, the Emerging Business leaders Institute, Awards/Recognition
Ceremonies and Networking Receptions, provided a forum and professional business environment for minority...wned
business representatives to discuss issues impacting minority business growth and development.
MED Week 2000 featured prominent speakers from the public and private sector, who discussed cutting-edge
policy and political issues facing minority businesses. During the event, three major studies were released:
Minority Purchasing Power 2000 to 2045, Democratizing Capital for Emerging Domestic Markets and New
Realities, "Growth Strategies for Minority Businesses".
Special guests included: Secretary of Commerce, Norman Minetta, Secretary of Labor, Alexis Herman, and
SBA Administrator, Aida Alverez, in addition to representatives from national advocacy organizations, corporations, and minority businesses around the country.
...
Lany SpIlman, VI", PresIdent & o,lef ......Ung OffIceo,AT&T ~ Ma......
accepts the "PIoneer Awanr' presented to AT&T fur Its longstanding support of Minority
Bus.lness Development. PresentIng the award are Seattary of Commerce. Norman
Minetta. and Courtland Cox, MBCA Director•
.... David Jefferson. Vice President, AT&T Broadband addresses the conference
during the Minority Business Summit "Access to Capita''',
TRE - 576
AT&T 2000 Supplier Diversity Annual Report
€I)
Supplier Diversity Week
In October 2000, AT&T Supplier Diversity team members mobilized to set up information stations at various work locations around the country as part of a company-wide effort to increase awareness for the Supplier Diversity Program.
In addition to educating employees on the history of the program, its goals and suppliers, the team met with MWVBEs across
the country to share information about AT&T strategy, and to review the types of products and services AT&T purchases.
California
I
EI Segundo, CA
\
Chicago=--.
Redmond, WA - - - i••
Shaumburg, IL
e- Staten Island, NY
Monterey Park, CA ___
\, ;,
Basking Ridge, NJ
Bedminster, NJ
.
"-'-
Middletown, NJ
Morristown, NJ
'-'
Dallas,TX
Houston, TX
·~c
Jacksonville, FL
lake Mary, FL
Plantation, FL
AUanla: Sunny Guider, Chief of Business Development and Cheryl May-Holmes,
Business Development Specialist, MBDA meet with AT&T guest dUring the Atlanta
event AT&T Associates support Supplier Diversity Week and welcome Atlanta
business owners.
CaIHomia: AT&T Associates staff tables to deliver infonnation to employees abolrt:
the Supplier Diversity Program.
Atlanta
4D
AT&T 2000 Supplier Diversity Annual Report
TRE - 577
Ollcago: AT&T and the Chicago Urban league joined forces to host the Chicago
event Invited speakers shown here, lames W. Compton, President & CEO. Chicago
Urban league, Maye Foster·Thompson, Exec. Director, Chicago Minority Business
OeYelopment Coundl, Robin Charleston, AT&T. Mellody Hobson, President, Ariel
Capital Management, Miller Wo<N:l, AT&T, Joyct Gab Kneeland, AT&T Broadband, and
Marja Stoll, President, Design Americom.
•
Texas Procurement Council
One of the goals, of AT&T's Supplier Diversity Program is to contribute to the growth and expansion of our global business by
induding minority- and women-owned business enterprises as a value-added strategy to help create a competitive advantage.
Pursuing this goal in the state ofTexas, AT&T initiated a wide range of initiatives to increase opportunities for
Historically Underutilized Businesses (HUBs). One of the keystones of AT&T's five-year plan for increasing supplier diversity in
Texas was the creation of the Texas Procurement Counal. The Texas Procurement Counal is comprised of purchasing representatives from the various AT&T Business Units operating in Texas. During 2000, the Texas Procurement Council conducted
periodic reviews of results and formalized plans to increase HUB procurement The Council reviewed supplier lists and discussed upcoming bid opportunities for Texas HUBs.
Throughout 2000, AT&T actively participated in trade shows and events in Texas to promote the utilization of minority
suppliers. We hosted several "AT&T Vision Days", which offered potential suppliers the opportunity to introduce their
company to AT&T purchasing agents. The Supplier Management Division staff was on-hand to educate vendors on
AT&T procurement policies, requirements, and bid opportunities.
AT&T Texas Procurement Council and AT&T Supplier Management hosted or supported the
following events in 2000:
•
Hard Hat 2000 Trade Show
DaliaslFt. Worth Minority Supplier Development Council
AT&T Vision Day Network Mixer
Access 2000 Trade Show
Dallas Urban League
DallaslFt. Worth Minority Supplier Development Council
TAMACC Convention and Business Expo
AT&T Vision Day Networking
San Antonio, TX
Greater Dallas Hispanic Chamber of Commerce
Houston Expo 2000
Houston Minority Business Council
AT&T Supplier Diversity Vision 2000
Dallas, TX
AT&T Supplier Diversity Vision 2000
Houston, TX
AT&T VISION DAY 2000 - HOUSTON, TX
•
Art Robles of thr GR!ater Dallas Hispanic Chamba' of
Commerce. Dr. Bewrly MltcMlI·Brooks, President &
CEO, Dallas Urban League, host of AT&T VisIon Day,
and Fred lona, AT&T.
The AT&T SuppUer Ma.......... T.... (fon!ground),
lac Blanco. Prow....... SpedaIlsI, and _
U>nneIIy.
Gnq> Prow....... 01..-, _
wI1fI ~"" In
Dallas, TX _ ... VIsIon ....
I'I1IDIpToog, _AT&T _
Regloo Consum«
_ : .............. . . . -....... VIsIon ....
More: than 150 suppliers from the greater Dallas, TX
area attrnded AT&T VIsion Day to learn more about
dolrag business wJtb AT&T In the Slate ofTaas.
AT&T 2000 Supplier Diversity Annual Report
TRE - 578
f!)
1
,
I
2000 AWards and Recognition
AT&T recognizes the outstanding contributions of AT&T associates and Teams that have demonstrated commitment to
furthering the supplier diversity business development process. The awards are presented in the categories of Outstanding
.'
Buyer, Teams, and the Director's Award. The 2000 recipients are:
BUYER'S AWARD
Jacinto (Jac) Blanco
Procurement SpeciaJist,
Supplier Management Division
Basking Ridge, NJ
Shirley nelia .
Procurement Manager,
Supplier Management Division
Basking Ridge, NJ
Fred Pepe
Procurement Specialist,
Supplier Management Division
Atlanta, GA
Elizabeth ILiz) Maggiore
Procurement Specialist,
Supplier Management Division
Basking Ridge, NJ
TEAM AWARD
Network Outside Plant Team Led by
Warren Morgan, Procurement Manager,
Supplier Management Division, Atlanta, GA
Wendall Ervin, Procurement Specialist,
Supplier Management Division, Atlanta, GA
Switching Supply Team Led by
Bill Condon, Procurement Director, Supplier
D1REcroR'S AWARD
Peter Bye
District Manager, ,
AT&T Corporate Affairs
Basking Ridge, NJ
Shelia Bell
Manager,
AT&.T Consumer SeIVices
Basking Ridge, NJ
Management Division, Bedminster, NJ
Bovis Lend Lease
Construction Services Team Led by
James Dis, Procurement Manager, Supplier
Management Division, Chicago, IL
Texas Procurement Council Led by
Edwin Rutan, AT&T Law &: Government
Affairs, Vice President, Dallas, TX
Warren Williams
Procurement Specialist,
Supplier Management Division
Denver, CO
SPECTRUM AWARD
AT&T acknowledges the contributions of minority·, women·, and veteran·owned suppliers and advocates who continue to provide a broad spectrum of services to our customers. Each year we present the AT&T Supplier Diversity Spectrum Awards. Award categories indude Longevity,
Innovation and Advocacy. Pictured with AT&T executives, Frank lanna, Debra Bell and Esther Silver·Parker are our 2000 reCipients.
Innovation
MR&S LLC
Patty Johnson
longeVity
Heritage Paper
Charles McCampbell, President
Advocacy
George Herrera, President & CEO
U.S. Hispanic Chamber of Commerce
•
Advocacy
Harriet R. Michel, President
National Minority Supplier
Development Council
AT&T AWARDS
We are pleased to note that in 2000 AT&T's Supplier Diversity Program received the following recognitions:
Pioneer Award (MED Week)
,
In 2000, AT&T was presented with a Pioneer Award by the US Department of Commerce for "significant impac/on minority business growth"
through the Supplier Diversity Program. AT&T Chairman and CEO, C. Michael Armstrong expressed his appreciation and reiterated AT&T's
commitment to supporting the growth and development of minority enterprises, which help meet the demarids of a competitive marketplace
and the expectations of AT&T customers.
Women's 8usinm Enterprise National Council Names ·Sweet 16· as America's Top Corporations for Women's Business Enterprises
On October 2, 2000, in Washington, DC, The Women's Business Enterprise National Council (WBENC) named AT&T Corp. as one of America's Top
Corporations for Women's Business Enterprises. This marked the second consecutive year that AT&T was n.vned to the Top Corporations list, which
is based on WBENC's annual survey and analysis of corporate best practices in supplier diversity programs for women's business enterprises (WBEs).
~ AT&T 2000 Supplier Dlvtt5/ty Annual Report
TRE - 579
•
TRE - 580
TRE - 581
•
•
AT &T Inmate System Sample Reports
Sample Summary Reports
• Call Summary Report, Complete Totals
• Call Summary Report, Daily Totals
• Call Summary Report - Traffic Patterns Totals
• Phone Summary Report
• End Code Summary Report
• TNI Summary Report, Top 10%, Calls Sorted by TNI
• TN! Summary Report, Top 10%, Calls Sorted by Frequency
• Velocity Report
• Word Search Report
Sample Call Detail Reports
• Call Detail Listing by Time of Day
• Call Detail with Status Report
• Call Detail with Status by Dialed Number
• Call Detail with Status by ID Code
• Call Detail with Status by Phone
• Call Detail with Status by Trunk
• Call Detail with Status by DOC Number
• Call Detail with Status by Facility
• Call Detail with Status by InmatelResident Name
• Call Detail by SBI Number
Sample Graphical Reports
• Number Calls by Call Type/Status
• Number Calls Per Phone
• Number Calls by Trunk Usage Types
• Number Calls Validated by LIDB
• Number Minutes by Call Type
• Number Calls and Minutes by Call Type
• Number Calls and Minutes by Language Type
• Number Calls and Minutes by Billing Type
• Call Activity by ANI
•
TRE - 582
A T& T Inmate System Report
•
,-;
,.~""(.:',
-_I~1
I'.,
,'I
~ r II:"" ._-'
~;-: .. ~
Call Date:
Equal To 04/0112001
Report Date:
04/20/2001 13:55:49
Site
TOT A L S ----------INMATE COM Amarillo City Jail
Group
Total
Total Min
Total $
889
1,088.00
889
1.088.00
763.77
763.77
OUT=XLS;SHW=Y;RPT=STE;TOT =TOT;CNT=Y;MIN=Y;CHG=Y;COM=Y;
Site Is Equal To Amarillo City Jail
Call Date Is Equal To 04/01/2001
•
•
1 of 1
TRE - 583
•
•
•
Call Summary Report, Complete Totals
1200,--------------------------------------------------------------------.
1088.00
1000+-----------------------
800
600
+-------• Calls
11:1 Minutes
+--------
6lICharge
DCommission
400 +--------
200
+--------0.00
o +-_ _ _----.J
Amarillo City Jail
TRE - 584
A T& T Inmate System Report
r-t! ...·j·j··[··r-I'
'f~ I~l.
rodl,
Call Date:
0810111998 to 08131/1998
R.ate:
1210111998
-H-;l~
14:56:07
Average $
State
Site
T
T
0
A
L
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
NY
NY
NY
NY
NY
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
NY Buffalo Detention Center
N.uffalO Detenlion Center
N
N
NY
NY
NY
NY
NY
NY
NY
NY
uffalo Detention Center
uffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
ACP Phone'ID
Total $ Per Day
5 •.......... 14021.71
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
112.44
BFL2A
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
22
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
BFL2A
BFL2A
BFL2A
BFL2A
18
19
20
BFL1A
BFL1A
BFL1A
BFLIA
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFLIA
BFL1A
BFL1A
BFL1A
BFL1A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
8FL2A
BFL2A
BFL2A
8FL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
17
371.80
483.35
319.12
299.13
315.09
43.67
318.45
355.85
194.15
474.10
307.83
386.60
687.81
496.71
41.55
32.40
428.48
483.61
0.00
0.00
3.88
12.39
Sat $
Aug (fl,98
141.45
0.00
0.00
1B.11
10.64
9.97
10.50
Sun $
Aug'02,98
MonS
TueS
~ Au~t03;98,' ,', Aug, 04,98:
WedS
Thu$
Fri $
Aug OS,98 ,- Aug 06,98- AU9:07,98;
347.75
395.83
489.70
199.75
0.00
9.25
9.75
10.75
0.00
0.00
361.40
3.10
469.20
0.00
11.95
5,05
7.75
3380
8.35
4.25
1.75
8.75
12.65
10.65
2.40
8.00
8.00
11.35
13.40
11.15
8.30
16.50
12.20
14.20
11.40
6.80
25.80
15.85
3.75
0.00
7.00
10.30
7.05
46.75
15.25
42.90
14.50
7.00
33.10
7.80
4.45
7.30
18.00
17.65
20.00
23.90
24.70
8.25
7.25
8.00
1.15
0.00
3.25
14.65
13.50
3.70
5.25
0.00
657.97
874.60
56.55
520.03
3.12
10.27
11.48
6.93
15.29
10.26
12.89
22.19
17.13
4.62
3.60
14.28
17.91
0.00
0.00
6.92
21.22
28.21
2.46
16.78
0.00
0.00
315.79
260.08
10.19
11.50
6.70
8.39
13.96
23.18
0.00
13.25
12.25
0.00
10.50
6.90
2.20
3.90
22.00
23.25
13.35
3.25
10.10
14.05
13.20
1S.85
19.90
12.85
28.95
5.25
21.75
16.20
7.50
18.20
12.50
8.60
2.05
4.00
0.00
8.25
1.50
3.10
3.70
14.75
1.75
89.98
432.70
718.70
1033.20
468.23
640.47
514.89
37.50
42.90
354.85
284.18
565.70
1.25
33.33
15.10
20.66
16.61
4.17
5.36
11.45
9.17
20.95
0.08
4.20
0.00
4.50
1.25
0.00
4.15
30.20
8.80
330
13.50
950
1.00
3.00
8.00
1.25
13.35
8.40
17.90
1.15
2.50
11.25
7.20
33.40
24.75
0.00
5.75
6.25
22.00
20.20
5.15
22.15
44.23
10.09
0.50
0.00
0.00
11.30
1.30
4.90
0.00
9.75
3.50
12.75
4.95
1.75
20.80
19.15
7.00
6.85
10.00
11.75
2.20
0.00
4.15
6.75
1.25
0.00
0.00
OUT=XLS;RPT",PID;TOT=DAY;COL=N;CHG=Y;
Bill Type Is Not Equal To Free Calls
Event Code Is Equal To Completed Calls
Call Date Is Between 08/01/1998 And 08131/1998
•
TRE - 585
12.25
17.55
20.50
9.30
11.80
10.50
16.15
24.15
12.45
26.25
5.90
0.00
0.00
7.00
7.10
23.15
17.73
11.15
39.35
10.85
5.00
0.00
0.00
0.00
2.90
17.60
21.45
8.85
0.00
7.25
26.40
12.00
8.25
25.75
13.35
19.00
6.35
5.90
26.50
23.71
4.05
1.25
14.75
25.25
7.75
31.19
15.50
9.40
0.00
0.00
32.50
7.25
8.00
17.00
21.65
29.01
11.15
23.40
0.00
0.50
8.75
5.95
0.50
31.48
26.15
0.00
0.00
16.69
2
A T& T Inmate System Rei
"II
~·i·r '1"~1'
c~'
Rate:
'{:,l:!~! ~
1-;11"
"l~:H___-
08101/1998 to 08/31/1998
12/01/1998 14:56:07
Site
ACP Phone'ID
T
T
A
L
0
S ----------NY Buffalo Detention Center BFL1A
1
NY Buffalo Detention Center BFL1A
2
NY Buffalo Detention Center BFL1A
3
NY Buffalo Detention Center BFL1A
4
NY Buffalo Detention Center BFL1A
5
NY Buffalo Detention Center BFL1A
6
NY Buffalo Detention Center BFL1A
7
NY Buffalo Detention Center BFL1A
8
NY Buffalo Detention Center BFLIA
9
NY Buffalo Detention Center BFLIA
10
NY Buffalo Detention Center BFLIA
11
NY Buffalo Detention Center BFLIA
12
NY Buffalo Detention Center BFLIA
13
NY Buffalo Detention Center BFLIA
14
NY Buffalo Detention Center BFLIA
15
NY Buffalo Detention Center BFLIA
1.
NY Buffalo Detention Center BFL1A
17
NY Buffalo Detention Center BFLIA
18
NY Buffalo Detenl"ion Center BFLIA
19
NY Buffalo Detention Center BFLIA
20
NY Buffalo Detention Center BFL1A
22
NY Buffalo Detention Center BFL2A
1
NY Buffalo Detention Center BFL2A
2
NY Buffalo Detention Center BFL2A
3
NY Buffalo Detention Center BFL2A
4
NY Buffalo Detention Center BFL2A
5
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
7
NY Buffalo Detention Center BFL2A
8
NY Buffalo Detention Center BFL2A
9
10
N_UffaIO Detention Cenler BFL2A
N
uffalo Detention Center BFL2A
11
N
uffalo Detention Center BFL2A
12
NY Buffalo Detention Center BFL2A
13
NY Buffalo Detention Center BFL2A
14
NY Buffalo Detention Center BFL2A
15
NY Buffalo Detention Center BFL2A
16
NY Buffalo Detention Center BFL2A
17
NY Buffalo Detention Center BFL2A
18
NY Buffalo Detention Center BFL2A
19
NY Buffalo Detention Center BFL2A
20
State
•
SatS
SunS
Aug'DB,98:300.32
Mon$
TueS
Aug 10,98,; "Aug:11,98
593.28
599.84
1.50
3.15
7.80
8.65
9.45
17.40
16.75
4.95
38.50
42.64
3.95
'Aug 09,98
237.60
0.00
5.25
10.65
13.50
O.DO
10.00
6.25
O.DO
15.00
0.00
46.25
0.00
6.30
9.75
11.50
20.75
8.25
0.50
10.70
4.70
3.25
19.25
15.50
2.50
7.75
5.95
20.00
37.50
1.50
2.05
19.06
O.DO
9.50
O.DO
O.DO
0,50
8.75
0.00
18.55
12.15
9.25
0.00
2.20
18.00
0.00
7.25
5.15
17.55
0,00
8.75
0.00
4.75
13.85
0.00
8.70
0.50
10.00
22.00
15.75
15.75
8.25
0.50
21.70
21.65
4.50
1.00
44.50
22.50
9.75
0.00
9.30
4.25
1.25
2.45
3.25
24.40
33.45
0.00
30.00
26.82
8.45
31.25
27.60
40.90
11.30
34.18
24.25
12.12
30.45
2DO
10.00
12.97
15.70
O.DO
0.00
O.DO
OUT=XLS;RPT=PID;TOT=OAY;COL=N;CHG=Y;
Bill Type Is Not Equal To Free Calls
Event Code Is Equal To Completed Calls
Call Date Is Between 08101/1998 And 08/31/1998
•
TRE - 586
15.25
0.50
8.25
9.50
2.00
16.75
22.05
21.00
32.83
19.05
Wed $
Fri $
Thu $
Sat$
SunS
Aug 12;98 '" :Aug,-13,98'; Aug 14,98'0 Aug.15;98 ' 'A'U9:t6;98
560.91
651.22
654.20
383.51
356.90
7.75
19.60
7.25
O.DO
4.90
35.50
11.55
0.50
22.00
10.75
19.85
17.35
11.30
14.54
9.95
26.15
20,15
21.78
9.00
37.44
6,15
1.75
11.34
1.25
ODO
14.75
21.19
2.30
69.45
10.09
O.DO
1.82
23.10
9.55
8.25
2.00
0.00
9.05
14.28
7.20
2.80
14.05
38.55
2.75
12.60
21.10
8.80
17.25
14.25
39.70
64.59
8.50
2.50
5.00
O.DO
37.71
32.75
40.06
13.60
37.31
26.50
1.50
19.25
2.50
19.36
10.70
5.75
31.87
17.20
53.94
28.15
31.05
5.75
6.25
ODO
3.DO
O.DO
0.00
0.00
35.65
47.70
23.45
42.10
0.00
27.75
24.45
29.80
32.00
34.05
0.00
30.90
31.30
7.50
33.20
36.70
25.75
13.20
8.50
0.00
5.25
24.80
16.50
0.00
0.00
5.25
30.90
43.50
16.65
35.20
31.52
5.95
43.30
14.55
19.35
7.30
11.13
8.75
25.85
0.00
11.35
1.00
26.00
16.00
24.25
61.51
28.55
22.95
14.25
9.25
10.70
33.65
O.DO
4.50
17.95
5.25
17.00
5.05
1.00
2.25
O.DO
5.25
7.65
1.DO
11.40
21.75
12.78
15.05
39.25
29.70
15.13
32.45
12.00
6.05
12.50
O.DO
31.80
13.25
0.00
25.65
2.30
50.64
25.50
8.DO
8.75
11.95
15.07
27.00
0.00
38.45
0.00
O.DO
8.10
13.95
3500
47.70
11.65
12.75
3.50
17.01
7.40
5.55
O.DO
3
A T& T Inmate System ReI
w
r:d '::-I.!·'j··r-I" "1:..1 1"1 \ r.1P·
08/01/1998 to 0813111998
Call Date:
12/01/1998 14:56:07
oal
.:
Sta e
T
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
~H;H--
Site
0
T
A
L
ACP Phone 10
5 -----------
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
NY
NY Buffalo Detention Center BFL1A
NY Buffalo Detention Center BFL1A
NY Buffalo Detention Center BFL1A
NY Buffalo Detention Center BFL1A
NY Buffalo Detention Center BFL1A
NY Buffalo Detention Center BFL1A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
Neuffalo Detention Center BFL2A
N
uffalo Detention Center 8FL2A
NY
Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
1
2
3
"
5
6
7
8
9
10
11
12
13
I"
IS
16
17
18
19
20
22
1
2
3
"
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Thu$
Aug 20,98
438.90
0.00
8.00
25.25
Fri $
Aug 21;98
618.72
13,55
5.00
9.07
Mon$
Tue$
WedS
.Aug 17,98
514.59
3.75
27.25
Aug18j~
Aug 1'9',98
639.71
0.00
19.00
27.75
8.70
10.15
515.24
0.50
20.95
8.90
0.50
1.45
11.35
0.00
5.85
18.71
4.90
0.00
7.60
9.20
16.00
4.50
16.10
0.75
15.05
10.00
5.75
3.25
26.50
11.95
20.65
3.40
1.50
22.00
44.75
13.00
12.25
17.80
2.95
1.40
31.25
16.85
20.00
22.95
16.45
42.05
1.50
3.05
10.25
15.50
33.10
18.50
6.85
2.25
16.15
30.06
0.00
3.35
22.40
1.00
8.75
19.61
18.58
11.05
20.00
Sat $
·AU 9- 22,98
407.38
5.35
4.25
SunS
Mon$
AU9'23,98
232.44
Aug 24,98
524.93
0.00
7.10
30.20
0.00
2.75
8.70
5.00
0.00
3.25
0.50
1.00
2.35
22.75
13.30
8.75
23.10
0.50
7.25
6.95
1.15
19.25
3.00
5.25
6.25
9.50
3.75
6.45
38.33
10.00
16.40
8.50
62.92
42.88
3.25
584
7.00
14.40
27.50
8.95
30.35
0.00
0.00
23.20
58.75
0.00
0.00
14.50
22.40
0.00
11.80
20.50
48.80
40.51
21.80
13.75
24.55
2.50
7.95
3.95
40.15
75.89
20.20
47.85
12.50
10.00
10.33
33.60
0.00
35.52
12.05
40.40
11.30
15.90
0.00
18.20
14.65
46.10
29.94
0.00
0.00
0.00
26.96
19.15
0.00
44.21
47.75
0.00
10.85
0.00
0.00
1.00
22.79
49.31
32.71
0.00
0.00
8.75
23.10
5.25
9.40
20.90
11.15
1.00
14.15
47.80
15.15
11.45
42.85
17.00
0.00
OUT=XLS;RPT=PID;TOT=DAY;COL=N;CHG=Y;
Bill Type Is Not Equal To Free Calls
Event Code Is Equal To Completed Calls
Call Date Is Between 08101/1998 And 08131/1998
•
TRE - 587
2.50
7.40
29.50
28.00
41.30
25.40
18.05
11.30
9.75
8.75
0.00
1.25
1.50
20.35
3.75
13.25
7.30
7.75
2.00
0.00
0.00
0.00
18.75
13.30
0.00
20.35
43.30
0.00
24.35
12.50
17.25
8.25
32.84
22.20
27.84
19.60
22.00
2.00
32.75
22.40
11.50
18.65
0.00
13.80
9.40
16.24
15.15
27.10
20.61
21.75
33.20
27.53
9.50
31.96
26.40
27.20
5.00
0.00
8.05
22.65
0.00
0.00
11.55
13,35
17.75
2.35
12.00
3.50
12.54
9.25
15.90
0.00
0.00
21.01
20.90
0.00
21.00
21.10
Tue$
Aug 25;96
483.31
1.00
13.15
14.00
4.40
10.75
39.10
45.80
35.40
29.30
16.83
11.40
15.25
32.25
0.00
2.10
54.00
44.45
11.25
17.50
24.75
7.00
5.75
20.65
5.50
0.50
3.25
11.65
25.85
26.43
0.50
3.25
9.10
1.82
15.05
21.10
11.75
2.35
11.55
9.05
9.15
4
A T& T Inmate System Rej
r.:d ~l 1"I"f~I"
Call Date:
'!!P0ate:
St.
·t;·P!~J
\
ACP
Site
T
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
0
;;1",
~j;';lk
08101/1998 to 08/31/1998
12101/1998 14:56:07
T
A
L
Phone 10
S •.....••...
1
2
3
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Cenler BFL1A
Buffalo Detention Center BFl1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFLIA
Buffato Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFL1A
Buffalo Detention Center BFLIA
Buffalo Detention Center BFLIA
Buffalo Detention Center BFL1A
Buffalo Detention Center BFLIA
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
Buffalo Detention Center BFL2A
NY
Buffalo Detention Center BFL2A
Neuffalo Detention Center BFL2A
N
uffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
NY Buffalo Detention Center BFL2A
,
5
6
7
8
9
10
11
12
13
Wed $
Aug 26,98
567.97
10.10
49.75
6.50
0.00
4.00
5.00
9.00
0.00
0.00
0.00
5,95
23.25
0.00
8.25
16.10
8.95
21.55
38.90
14.20
5.40
2.00
25.50
5.00
17.60
50.90
16.65
0.00
16.20
13.95
28.90
21.15
7.50
19.25
8.25
2.00
3.25
18
19
20
22
1
2
3
13.90
38.41
15
16
17
18
19
20
0.00
0.00
25.35
25.80
0.00
15.80
14.00
29,50
26.78
20.90
60.50
5.00
41.50
7.25
0.00
11.40
10.35
3.05
12.75
0.00
7.60
11.10
21.35
0.00
0.00
27.25
32.70
0.00
23.10
0.00
11.90
0.00
13.80
14,35
26.30
14.25
30.90
33.41
3.00
1.00
16.20
6.00
10.20
14.10
18.98
14.00
0.00
11.50
1.25
0.50
6.25
4.75
4.00
0.00
0.00
14.25
15.50
Mon$
. Aug 31,98
296.90
510.15
17,18
1.00
l'
SunS
·Aif~f30,98·
11.55
24.85
17.85
0.00
0.00
17
5
6
7
8
9
10
11
12
13
Sat$
Aug 29,98
409.47
0.00
6.11
15
16
,
Fri $
Aug-·28.98;
620.35
23.25
19.55
3.95
9.50
10.85
0.00
23.10
23.00
8.82
7.85
8.00
6.75
31.50
7.20
15.30
l'
Thu$
Aug 27,98
498.79
17.25
17.80
11.15
6.75
0.00
0.00
0.00
37.75
2.05
11,50
1.00
9.65
3.75
38.00
4.12
0.00
6.60
32.01
9.90
7.00
43,90
15.90
20.75
1.00
15.25
12.15
0.00
0.00
13.80
30.55
0.00
22.11
0.00
21.75
40.30
8.15
12.40
23.25
25.05
16.60
27,85
23.12
6.35
4.25
11.65
15.95
60.50
20.38
19.00
12.75
8.25
5.15
15.05
14.34
20.80
13.80
12.82
0.50
2.65
3.75
24.70
6.20
48.11
20.15
0.00
0.00
16.70
21.33
40,80
37.75
44.90
1.25
22.28
18.00
6.25
2.00
22.00
14,25
10.65
OUT=XLS;RPT=PID;TOT=DAY;COL=N;CHG=Y;
Bill Type Is Not Equal To Free Calls
Event Code Is Equal To Completed Calls
Call Date Is Between 08/01/1998 And 08/3111998
•
TRE - 588
0.00
5.25
18.50
7,25
14.72
6.00
11.65
7.75
1.00
16.60
15.60
0.00
17.25
25.75
14.10
32.90
•
•
•
Revenue Generated Per Phone Per Day
700.00
600.00
-
-
500.00
400.00
I-------
300.00
t- t- I-
-
t-
c-
,
t- I-
-
t-
t- t-
t- I-
-
t-
t- t- t- t- -
-
t- t- t- I-
t- -
t- t- t- I-
t- t- t- t- -
-
t- t-
l-
t-- t-- t-- l- t-- t-- t-- t-- l-
-
t-
f-
-
-
-
t-
.-
200.00
f--
0-
I--
I--
l-
I-
I--
100.00
I--
I--
I--
l-
I-
I--
t-- t-- f- l- I- t-- t-- f- l- t- t- t- l- I- t- t- t- t- l- I- t- t- t- t-
I--
I--
I-
0.00
TRE - 589
I-
t-- t- t- t- l- I- t- t- t-
I
And 08131/1998
Report Date: 121151199816:00:41
Site':'>, i
State
TOT A L S -- __________
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
ACP
BFL1A
BFLIA
BFL1A
BFL1A
BFL1A
BFL1A
BFLIA
BFL1A
BFLIA
BFLtA
BFLIA
BFLIA
BFLIA
BFLIA
BFL1A
BFLIA
BFLtA
BFL1A
BFLIA
BFL1A
BFLIA
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
PhonalD Total calls
14213
105
221
2
514
3
310
4
417
5
431
6
77
7
315
8
374
9
214
10
408
11
497
12
570
13
566
14
334
15
31
16
53
17
416
18
550
19
36
20
93
22
102
1
684
2
587
3
142
4
488
5
13
6
316
7
434
8
416
9
602
10
708
11
695
12
525
13
748
14
42
15
41
16
373
17
286
18
430
19
49
20
Total Min
152944.35
897.57
2075.73
4539.08
2681.52
3917.10
4794.33
448.98
2744.65
4594.02
1839.22
3942.57
6930.30
6261.58
5831.25
2479.28
433.77
629.60
2371.72
4323.30
408.17
555.18
830.37
7066.35
8097.45
1110.32
4793.88
5.85
4880,98
5419.80
5621.67
8661.07
7951.67
9940.13
5277.95
9399.70
413.23
454.72
2606.63
1924.30
5248.83
540.53
Local Calls LOcal Min
Total $ Commission $ Free Calls Free Min
273.91
175
1922.39
14021.71
7010.96
38
5
10.78
112.44
56.22
17
185,90
14.73
202.97
371.80
483.35
241.68
319.12
159.56
5
10.00
299.13
149.57
5.40
315.09
157.55
2
19,85
43.67
21.84
318.45
159.23
19
256.03
355.85
177.93
2
10.48
194.15
97.08
5
111.33
474.10
237.05
1
4.18
0.83
307.83
153.92
386.60
193.30
3
41.60
687.81
343.91
7
496.71
5
24.30
73.20
248.36
41.55
20.78
32.40
16.20
7
104.77
214.24
3
18.03
428.48
1
483.61
241.81
0.25
0.00
0.00
3
9.03
0.00
0.00
89,98
2
34.87
44.99
657.97
328.99
19.12
9
65.14
874.60
437.30
1
4.25
56.55
28.28
520.03
260.02
8.15
0.00
0.00
2
2.92
315.79
157.90
1
8.75
5
22.90
260.08
130.04
2
1.60
432.70
216.35
13
718,70
8.10
109.83
359.35
4
50.40
1033.20
516.60
468.23
234.12
640.47
320,24
2
12.10
1
4.68
1.47
514.89
257.45
18.75
37.50
42.90
21.45
12
6
23.58
117.52
354.85
177.43
50,98
8
81.45
284.18
142.09
6
13.92
20
197.73
565.70
282.85
26
439.08
1.25
0.63
OUT",XLS;RPT=PID;TOT",TAt ;CNT=Y;MIN=V;CHG",Y;COM= Y;
Event Code Is Equal To Completed Calls
Call Date Is Between 08/01/1998 And 08/31/1998
TRE - 590
Page 1 of 3
Local $ Local Comm
32.04
64.00
0.43
0.85
6.80
3.40
0.00
0.00
16.60
0.40
1.70
0.35
8.30
0.20
0.85
0.18
0.00
3.05
0.00
1.53
0.70
0,35
0.00
0.00
3.60
0.00
1.80
0.00
0.00
0,75
9.05
1.30
0,00
0.38
4.53
0.65
0.40
0.20
385
5.05
8.30
1.25
1,93
2.53
4.15
0.63
•
Report Date: 121151199816:00:41
iState
',SilE\;L
,;
",
,
TOT A L S -----------NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFLIA
BFL1A
BFL1A
BFLIA
BFL1A
BFLIA
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
,Phone 10 Toll Calls
2923
Toll Min
28553.65
227.69
538.25
1024.24
493.52
314.13
434,05
163.80
1050.88
160.65
160.44
366.53
1869.28
1356.63
342.43
345.93
85.47
308,62
Toll $ Toll Comm
17
17
18
19
20
85
136
1374.02
3175.10
27.90
94.50
138.80
83.60
38.20
37.05
26.10
126.35
20.50
21.90
38.55
115.45
103.40
63.15
68.70
7.55
24.90
103.20
147.35
2
9.80
0.00
0.00
22
13
1
2
3
4
7
97.33
18.52
804,65
2962.48
308.12
2232.35
0.00
6.35
100.20
421.00
14.80
229.90
0.00
3.18
50.10
210.50
7.40
114.95
1374.10
544,45
304.55
456.89
910.90
88.05
18.85
41.35
67.20
150.20
149.75
104.60
145.50
1.00
15.15
44,03
9.43
20.68
33.60
75.10
74.88
52.30
72.75
0.50
7.58
77.65
38.83
69.00
187.40
0.00
34.50
93.70
0.00
9
20
60
125
70
45
50
27
92
34
10
29
11
48
153
166
65
58
5
2
3
4
5
6
7
8
12
13
14
15
16
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
93
207
37
192
102
43
53
77
112
176
60
213
5
349.05
214998
67
52
109
565.79
2532,41
31.65
137.72
440.72
224.88
1450.50
7
30.25
11
LO Calls
1587.62
13.95
47.25
69.40
41.80
19.10
18.53
13.05
63.18
10.25
10.95
19.28
57.73
51.70
31,58
34.35
3.78
12.45
51.60
73.68
OUT=XLS;RPT=PID;TOT=TRI ;CNT=Y;MIN=Y;CHG= Y;COM=Y;
Event Code Is Equal To Completed Calls
Call Date Is Between 08101/1998 And 08/31/1998
TRE - 591
Page 2 of 3
10740
77
143
379
227
356
377
47
222
321
177
352
325
376
495
235
26
36
308
399
34
77
87
579
370
104
291
13
210
382
352
507
583
468
445
497
37
30
271
209
300
16
LD Mlns
120589.57
647.33
1319.78
3504.40
2140,10
3556.46
4343.92
264.28
1692.82
4177.33
1646.78
3415.94
5017.43
4810.35
5414,67
1878.06
348.30
320.98
1855.12
2929.08
398.37
448.82
769.40
6247.70
5050.72
797,95
2548.88
5.85
3502.76
4836.15
5295.58
8059.40
6943.74
7394.68
4546.02
6646.51
381.58
317.00
1949.45
1508.00
3586.68
71.20
LO$$$
9718.25
64.25
270.50
341.25
180.75
207.75
253.00
15.75
190.25
318.75
137.25
393.75
183.25
261.00
593.25
204.00
34.00
7.50
252.50
314.00
0.00
LDComm
4859.22
32.13
135.25
170.63
90.38
103.88
126.50
7.88
95.13
159.38
68.63
196.88
91.63
130.50
296.63
102.00
17.00
3.75
126.25
157.00
0.00
454.00
305.25
36.50
27.75
220.50
165.75
370.00
0.00
40.88
275.63
225.00
20.88
142.00
0.00
112.75
114.00
178.75
303,63
414.63
129.75
227.00
152.63
18.25
13.88
110,25
82.88
185.00
0.00
0.00
81.75
551.25
450.00
41.75
284.00
0.00
225.50
228.00
357.50
607.25
829.25
259.50
0.00
•
Call Date: Between 08101/1998 And 08131/1998
Report Date: 12/15/199816:00:41
:StaU{ :51,".
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
TOT A L 5 -----------Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
A,CPc '.
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
8FL1A
BFL1A
BFLIA
BFLIA
8FLIA
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL1A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
PhoneJD,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
22
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Inti Calls
337
3
10
13
10
4
1
1
Inti Nllns
1604.80
11.77
inll $$$
1064.36
19.44
Inti Comm"
532.22
9.72
1.65
27.39
26.59
10.45
3.30
47.90
31.10
16.37
54.77
53.18
25.04
1,05
1.82
1,85
0.91
0.93
34.60
0.95
12.52
6
3
17
28
3
29
21.52
48.77
38.57
94.60
32.55
157.78
40.10
8.78
22.20
31.41
220.96
17.30
20.05
4.39
11.10
15.71
110.48
13
14
44.75
19.95
72.08
22.26
36.04
11.13
6
12
7.58
14.00
1.88
6.52
0.94
3.26
4
4.50
6.13
3.07
2
3
9
4
9
51
18
36
1.20
7.55
19.93
26.85
46.63
395.47
154.05
214.61
2.24
13.23
33.10
35.20
52.45
58.98
81.87
63.74
1.12
6.62
16.55
17.60
26.23
29.49
40.94
31.87
17
11
75.37
58.98
52.85
44.38
26.43
22.19
OUT:::XLS;RPT:::PID;TOT:::TRI ;CNT=Y;MIN=Y;CHG=Y;COM=Y;
Event Code Is Equal To Completed Calls
Call Date Is Between 08101/1998 And 08/31/1998
TRE - 592
Page 3 of 3
•
•
•
Call Summary Report, Traffic Pattern Totals
10
9.00
9
8
7
6
• Calls
I2'JMinutes
511 Charge
5
4
3
2
1
0
o
0
0
Free Calls
Local
o
0.00
IntraLATNlntraState
TRE - 593
o
o
0.00
InterLATNlntraState
o
o
0.00
InterState
1
A T& T Inmate System Report
~,,:I
I
I-{::'
'L
Report Date:
State
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
~
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
··I--t~l·'
{:.r!
12104/1998
I'
17:07:54
Site
0
T
L
A
T
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
.ACP '·;.5phone
S -------------BFL1A
0
BFL1A
1
BFL1A
2
BFL1A
3
BFL1A
4
BFL1A
5
BFL1A
6
BFL1A
7
BFL1A
8
BFL1A
9
BFL1A
10
BFL1A
11
BFL1A
12
BFL1A
13
BFL1A
14
BFL1A
15
BFL1A
16
BFL1A
17
BFL1A
18
BFL1A
19
BFL1A
20
BFL1A
22
BFL2A
0
BFL2A
1
BFL2A
2
BFL2A
3
BFL2A
4
BFL2A
5
BFL2A
6
BFL2A
7
BFL2A
8
BFL2A
9
BFL2A
10
BFL2A
11
BFL2A
12
BFL2A
13
BFL2A
14
BFL2A
15
BFL2A
16
BFL2A
17
BFL2A
18
BFL2A
19
BFL2A
20
Tolal Calls
54,828
23
459
857
1,971
1,242
2,094
2,001
415
1,238
1,410
1,002
1,415
1,811
1,937
1,968
1,273
121
135
1,775
1,933
177
562
2
567
2,349
1,966
605
1,544
307
1,159
1,945
1,767
2,299
2,395
2,442
1,702
3,026
98
123
1,625
1,212
1,499
377
OUT=XLS;RPT=PHN;
Call Date Is Between 08/01/1998 And 08/31/1998
•
TRE - 594
·.'>'1"ot';l Mins
187,920
1,220
2,623
5,920
3,500
4,993
5,859
702
3,558
5,463
2,436
4,941
8,132
7,670
7,163
3,240
494
735
3,321
5,669
511
872
Attempts
33,683
21
290
529
1,172
773
1,449
1,361
274
743
885
657
809
1,101
1,100
1,107
834
81
67
1,209
1,025
107
386
1,182
8,798
9,396
1,509
5,889
60
5,692
6,536
6,777
9,999
9,569
11,564
6,488
11,279
491
550
3,579
2,579
6,261
697
376
1,282
1,153
386
834
281
660
1,304
1,114
1,446
1,326
1,480
943
1,920
47
69
1,087
831
887
277
Answered "Connected
6932
14213
2
64
105
107
221
285
514
159
310
228
417
209
431
77
64
180
315
151
374
131
214
198
408
213
497
267
570
295
566
105
334
31
9
53
15
150
416
358
550
34
36
83
93
2
89
102
383
684
226
587
77
142
222
488
13
13
183
316
207
434
237
416
251
602
361
708
267
695
234
525
358
748
9
42
13
41
165
373
95
286
182
430
51
49
•
•
Phone Summary Report
•
14000
12000
10000
8000
• Calls
IlIIMinutes
o Attempts
o Answered
6000
• Connected
4000
2000
TRE - 595
•
AT&T Inmate System Report
I~
'7,
~-I""(;I \:
,:;./.}.I"
,)
-
:n:..~~;...
){::":-
Call Date: Between 08101/1998 And 08131/1998
Report Date: 121021199816:48:31
Code
•
\: ~~~:,,...
End Code
L
T
A
0
T
o Out of Service
1 Normal End
2 No Answer Busy
3 No Answer Time Out
4 No RingBack
5 Intercept Op
6 Validate Check
7 Dial Digit Stop
8 Time Out End
9 No Answer Hang Up
10 Hang Up Stop
13 Dial Digits End
15 Time Out End
16 Loop Drop End
17 Digit 0 Stop
18 Digit 0 End
19 Loop Drop Stop
20 Interrupted
23 Validate Block
26 ID Code Quit
28 Term Num? Quit
29 Validate No Answer
30 Validate Time Out
32 Term Num Quit
33 No Answer Bad Loop
Total
S
54828
5236
13657
716
4187
358
91
5
57
1515
4417
4989
152
452
15
56
21
9
133
959
17601
23
52
65
27
35
OUT=XLS;RPT=END;TOT=TOT;CNT=Y;MIN=Y;
Call Date Is Between 08/01/1998 And 08/31/1998
•
TRE - 596
To.taIMin.
152944.34
0.00
143517.23
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
989.37
8122.88
126.10
0.00
187.68
0.00
0.00
0.00
1.08
0.00
0.00
0.00
0.00
0.00
A T& T Inmate System Report
•
•
•
'"
I
"I"":"
~_l
I
I
,,1.\
Call Date: 0810111998 to 08131/1998
Report Date:
12101/1998 15:06:36
State
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
I
::..1._
I
.." c.p -:;:f'i:£ji.~C ·· TNIS:"·
".- Slte
TOTALS--Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
BUffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
I
,III.
,-:
:: ~f' Le t otill .::
1000
12
13
12
103
51
32
14
13
22
16
13
12
12
15
37
42
12
14
16
12
12
16
40
26
15
15
61
25
15
21
14
25
36
12
15
20
19
28
18
34
20
16
22
~
!focal' .:.:" lrjtraLllta ", lrlterLata
122
272
594
13
12
103
51
32
14
13
22
16
13
12
12
15
37
42
12
14
16
12
12
16
40
26
15
15
61
25
15
21
14
25
36
12
15
20
19
26
16
34
20
16
OUT=XLS;RPT=VLT;TOT=TR1 ;CNT=Y;GI OUT=XLS;RPT=VLT;TOT=TRl ;CNT=Y;GRP=C% 10;
Bill Type Is Not Equal To Free Calls
Bill Type Is Not Equal To Free Calls
Event Code Is Equal To Completed Calls Event Code Is Equal To Completed Calls
Call Date Is Between 08/01/1998 And 06/3 Call Date Is Between 06/01/1998 And 08/31/1996
TRE - 597
22
Int'l ;
12
12
A T& T Inmate System Report
•
•
•
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t-
,
•
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I
I.
'-....
( :..'
Call Date:
08101/1998 to 08131/1998
Report Date:
12101/1998 15:06:36
State
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
Site
.,TN)- ·
TOTALS-Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
Buffalo Detention Center
I'
I
flh
2843
153
119
117
106
105
104
103
95
89
69
84
83
79
77
71
70
69
61
61
57
55
54
54
54
52
51
50
50
49
47
46
46
45
45
45
45
43
42
36
36
36
35
35
I
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61
12
153
12
119
117
106
105
104
103
95
89
69
84
63
79
77
71
70
69
61
61
57
55
54
54
54
52
51
50
50
49
47
46
46
45
45
45
45
43
42
36
36
36
35
35
OUT=XLS;APT =VLT;TOT =TAl ;CNl OUT=XLS;APT=VLT;TOT=TRI ;CNT=Y;GRP=C% 10;
Bill Type Is Not Equal To Free Calls Bill Type Is Not Equal To Free Calls
Event Code Is Equal To Completed I Event Code Is Equal To Completed Calls
Call Date Is Between 08/01/1996 An Call Date Is Between 08/0111996 And 06/31/1998
TRE - 598
AT& T Inmate System Report
,
!.JI.:(:;-:"f~" ''(::r?I~Yi
Call Date:
Equal To 04/0112001
Report Date:
0412012001 14:19:22
State
SJle
TX
TOT A L S -------------------Karnes County Correctiona
KNS2A
ACP
IntraLATA
0
Total
T6talMIn
T~tl1l$
'Fr~eG~IIS
6
3
0
6
3
9.00
9.00
IntraLATA
Min
0
Intra LATA
$
0.00
InterLATA
0
InterLATA
Min
0
Free Min
0
Local
Min
Local
Local
6
3
6
3
9.00
9.00
InterState
0
InterState
Min
0
InterLATA
$
0.00
$
InterStat~
$
0.00
OUT=XLS;SHW=Y;RPT=ACP;TOT=TR1 ;CNT=Y;MIN=Y;CHG=Y;
Call Date Is Equal To 04/01/2001
Site Is Equal To Karnes County Correction a
TNlls Equal To '8307803747'
1 of 1
TRE - 599
•
~_~
.. AT&T
Inmate System
AudioMining Search Results
~--
Path: Home· Search Results
I
J
call
•
Found 12 documents matching
call
6024.
Length: 0:00:11 Topic:
Description:
6025.
Length: 0:00:10 Topic:
Description:
bmctestl
Length: 0:00:25 Topic:
Description:
8318.
Length: 0:00:09 Topic:
Description:
•
kensupressl i
Length: 0:03:35 Topic:
Description:
KEN 2.
TRE - 600
•
Length: 0:01 :03 Topic:
Description:
searge!
Length: 0:03:24 Topic:
Description:
Ih4a'
Length: 0:06:14 Topic:
Description:
KEN.
Length: 0:01 :03 Topic:
Description:
kensupress I
Length: 0:03:35 Topic:
Description:
mohamadi
Length: 0:04:55 Topic:
Description:
6023.
•
Length: 0:00:25 Topic:
Description:
•
TRE - 601
1
AT&T Inmate System Report
"....
~
.
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.
ACPID
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
FL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
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0810111998
Date:
121011199815:09:16
TNI
Call Date .· C;ill'Time ,, ·,/·,.' Duration2352
8/1/98 00:10:22
12
8/1198
00:15:57
1
8/1/98 00:19:46
25
8/1/98 00:31:57
0
8/1/98 00:40:19
1
8/1198
07:10:56
30
8/1/98 07:24:44
0
8/1/98 07:31 :47
3
811/98 07:32:10
30
8/1/98 07:36:14
19
8/1/98 07:38:44
12
8/1/98 07:49:36
16
8/1/98 07:53:49
2
8/1/98 07:58:53
23
8/1/98 08:00:33
1
8/1/98 08:02:16
1
8/1/98 08:04:12
3
8/1/98 08:05:19
22
8/1/98 08:08:27
30
8/1/98 08:24:21
26
8/1/98 08:25:59
5
8/1/98 08:27:11
5
8/1/98 08:29:09
1
8/1/98 08:35:28
0
811198 08:40:18
30
8/1/98 08:40:24
4
811198 08:47:26
9
811/98 08:49:36
8
8/1/98 08:53:55
10
8/1198 08:55:29
0
8/1/98 09:00:48
3
8/1198 09:09:22
29
8/1/98 09:16:17
30
30
8/1/98 09:40:36
8/1/98 09:46:22
1
8/1/98 09:47:30
9
8/1/98 09:48:36
30
8/1/98 09:53:37
20
8/1/98 09:53:52
2
8/1/98
10:12:31
30
8/1/98
10:13:20
0
10:14:55
0
8/1/98
8/1/98
10:17:21
7
8/1/98
10:18:23
7
8/1/98 10:20:21
7
8/1/98
10:24:51
0
8
8/1/98 10:25:40
8/1/98
10:32:48
22
8/1/98
10:34:02
18
8/1/98
10:38:44
10
TRE - 602
Cost
141.45
3.50
1.15
4.75
0.00
0.00
5.35
0.00
1.25
0.00
1.30
3.50
0.00
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.45
0.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
0.00
2.50
0.00
5.25
0.75
7.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.00
2
;ACPID
PhonelD ANI
" TNI
. ,'Calf Date ,.:.Call Time"" ", Duration
T
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
FL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
FL2A
BFL2A
BFL2A
BFL2A
BFL2A
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1 /98
8/1/98
8/1/98
8/1/98
8/1 /98
8/1/98
8/1/98
8/1/98
8/1/98
8/1 /98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
TRE - 603
10:45:05
10:45:45
10:50:33
11 :01 :08
11 :01:21
11 :04:28
11 :05 :53
11 :06:00
12:20:08
12:20:35
12:21 :39
12:22:05
12:22:38
12:23:52
12:25:29
12:27:06
12:28:35
12:30:02
12:30:41
12:32:29
12:34:51
12:36:00
12:36:51
12:38:43
12:39:22
12:39:35
12:40:27
12:43:13
12:43 :39
12:45:18
12:45:26
12:47:46
12:48:08
12:49:33
12:51 :37
12:59:44
13:01 :36
13:03:58
13:09:21
13:11:44
13:14:50
13:31 :15
13:32:12
13:32:19
13:34:16
13:38:20
13:39:32
13:42:32
13:45:29
13:59:03
2352
29
3
9
1
1
8
16
16
1
1
7
14
4
3
1
15
1
30
11
1
12
7
0
17
6
1
30
0
9
1
1
24
12
4
4
30
8
21
17
14
5
2
1
30
30
7
1
30
3
Cost
141.45
0.00
0.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.00
2.00
0.00
1.50
1.45
0.00
0.00
0.50
0.00
0.00
0.50
0.00
2.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
0.00
0.00
1.25
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.50
0.00
0.00
0.00
0.00
2.00
0.00
0.00
1.00
3
Date:
ACPID
T
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
FL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
FL2A
BFL2A
BFL2A
BFL2A
BFL2A
08/01/1998
121011199815:09:16
PhonelD ANI
0
TNI"
-
-" .
. Call Dlite ';'-'Call ·'fime···.,.· c' Duration
2352
18
8/1/98
14:02:27
8/1/98
14:03:49
2
8/1/98
14:07:56
10
13
8/1/98
14:08:20
8/1/98
14:09:57
22
8/1/9B
14:10:21
10
8/1/98
14:12:57
2
8/1/9B
14:14:18
0
14:16:57
2
8/1/98
14:17:14
8
B/1/98
8/1/98
14:17:48
1
8/1/98
14
14:20:05
8/1/98
14:27:19
3
10
8/1/98
14:36:09
8/1 /98
14:44:46
18
8/1/98
14:46:34
20
8/1/98
14:50:26
1
12
8/1/98
14:55:14
8/1/98 14:57:37
30
8/1/98
14:58:13
30
8/1/98
15:06:43
3
8/1/98
15:07:19
30
8/1/98
15:13:14
8/1/98
15:17:51
1
8/1/98
15:21:47
5
8/1/98
15:23:53
0
8/1/98
25
15:28:29
8/1/98
15:29:22
2
8/1/98
15:30:08
2
8/1/98
17
15:30:50
8/1/98
15:33:36
18
8/1/98 15:34:23
10
8/1/98
15:35:41
30
8/1/9B 15:39:13
4
8/1/98
15:49:35
1
8/1/9B
15:52:25
7
8/1/98
15:54:27
1
8/1/98
15:54:57
1
8/1/98
15:55:29
6
8/1/98
15:56:02
7
8/1/98
15:57:28
8
8/1/98
16:04:44
1
8/1/98
17:13:20
11
8/1/98
17:33:15
29
8/1/98
17:34:54
1
8/1/9B
17:38:00
0
8/1/9B
2
17:38:18
8/1/9B
17:43:32
29
8/1/9B
17:54:53
5
8/1/98
17:59:34
28
TRE - 604
Cost
141 .45
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.00
0.00
0.00
0.75
0.00
1.00
0.00
0.00
5.25
0.00
0.00
0.00
0.00
1.00
0.00
0.50
0.00
0.00
0.00
0.00
0.00
0.75
0.00
0.00
2.75
0.00
0.00
0.50
2.25
0.00
0.00
0.00
2.00
0.00
0.50
3.00
0.00
0.75
0.50
0.00
0.00
0.00
0.00
4
Date:
ACPID ~'
08/01/1998
12101/199815:09:16
Phone 10 ANI
TNI
- CaIl'O.ate.' CalkTiniiP
T
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
FL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
FL2A
BFL2A
BFL2A
BFL2A
BFL2A
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
TRE - 605
18:01 :33
18:06:17
18:13:57
18:14:42
18:16:00
18:18:01
18:21:53
18:25:27
18:29:45
18:29:56
18:30:13
18:31 :50
18:45:47
18:48:00
18:48:38
18:49:26
18:51:34
18:51 :56
18:52:00
18:53:35
18:59:18
18:59:45
19:00:58
19:03:16
19:04:43
19:10:26
19:23:58
19:26:48
19:27:40
19:28:44
19:30:36
19:30:56
19:32:48
19:35:53
19:50:18
19:51:21
19:58:33
19:58:55
20:00:04
20:01:24
20:01:48
20:07:35
20:07:46
20:08:10
20:09:03
20:11 :49
20:14:02
20:14:47
20:15:55
20:26:24
Duration
2352
13
1
2
30
1
20
0
1
7
4
16
0
0
2
30
2
1
4
2
22
1
2
0
0
4
0
0
2
7
24
30
1
3
8
1
4
11
0
8
11
10
8
0
29
9
1
9
10
30
3
Cost
141.45
3.50
0.75
0.00
0.00
0.75
0.00
0.00
0.00
0.00
1.60
0.00
0.00
0.50
0.00
0.00
1.15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
0.00
0.00
6.25
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
2.05
3.00
3.00
0.00
0.00
0.00
2.50
0.00
2.75
2.75
0.00
0.00
5
Date:
ACPID
08/01/1998
12/01/199815:09:16
_~ 7 ·'·-
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
BFL2A
.FL2A
Fl2A
BFL 1A
BFL2A
BFL2A
BFL2A
BFL2A
BFL1A
BFL2A
BFL 1A
BFL2A
BFL2A
BFL1A
BFL1A
BFL2A
BFL1A
BFL1A
BFL2A
BFL2A
BFL2A
BFL2A
BFL1A
BFL1A
BFL1A
BFL2A
.FL1A
FL 1A
TNI · .
", Call Date . " Call~Time
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1 /98
8/1/98
8/1/98
8/1/98
8/1/98
8/1 /98
8/1/98
8/1/98
8/1/98
8/1 /98
8/1 /98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1 /98
8/1 /98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
8/1/98
QUT=XLS;RPT=CDR;
Bill Type Is Not Equal To Free Calls
Event Code Is Equal To Completed Calls
TRE - 606
20:27:40
20:32 :34
20 :33:18
20:44:29
20:46:38
20 :47:05
20:48:50
20 :56:57
21 :01:35
21 :07:53
21 :11:45
21 :13:58
21:17:52
21 :18:30
21 :19:59
22:22:45
22:23:12
22 :23:34
22 :54:27
22 :57:42
22:58:27
22 :59:30
23:15:52
23:16:15
23:16:39
23:16:52
23 :17:27
23:18:39
23:19:02
23 :19:03
23 :19:24
23:19:32
23:20:40
23:22:29
23:23:37
23:24:06
23:30:14
23:30:29
23 :34:50
23:35:23
23:36:42
23:36:44
23:39:06
23 :41:34
23:42:43
23:50:58
, Durati()n
2352
7
1
6
30
2
30
9
23
4
1
8
6
1
1
0
0
0
0
2
2
2
3
16
19
30
1
4
10
30
1
8
30
18
3
9
13
0
0
0
14
0
0
2
4
13
0
Cost,
141.45
2.00
0.50
0.00
0.00
0.00
0.00
2.50
0.00
0.00
0.00
2.25
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.25
4.25
0.00
0.00
0.00
1.25
2.50
0.00
0.50
0.00
0.00
0.00
1.25
0.00
2.95
0.00
0.00
0.00
4.00
0.00
0.00
0.75
0.00
3.75
0.00
6
eft •• n" Date:
08/01/1998
12/01/199815:09:16
ACPID
Phone ID ANI
TNI
CalLDate
TOT
A
L
S -----------------Call Date Is Equal To 08/01/1998
Site Is Equal To Buffalo Detention Center
Duration is the Termination time - the Connection time
•
•
TRE - 607
Call'Hme
Duration
2352
Cost
141.45
A T& T Inmate System Report
•
•
•
".:
'I ~~~ ,"'; -
','
.' ,-::
.::-
-..j
I
I
Call Date:
Equal To 04/0112001
Report Date:
0412012001 14:02:54
;";:-'::;~' ,;:/~::ti~~~-;
Phn
'Trk ' Zone
5206
5205
5205
5205
5123
5309
5117
5117
5218
5218
5205
5212
5205
5205
5117
5117
5212
5112
5217
5112
5217
5217
5217
5217
5217
5205
5117
5121
5211
S309
S211
S114
5123
S309
5211
5211
S207
5207
S120
5207
5204
S114
03
02
02
02
11
02
12
12
09
11
03
03
02
03
09
11
03
02
11
03
09
09
09
09
09
03
11
12
02
02
03
03
11
02
02
02
04
04
12
02
04
03
CDR Date:
129B
191AR
191AR
191AR
250CL
250CR
205AL
205AL
205AR
205AR
191AR
257DR
191AR
191AR
205AL
205AL
257DR
2720
250CC
2720
250CC
250CC
250CC
250CC
250CC
191AR
205AL
208FR
260DR
250CR
260DR
264DL
250CL
250CR
260DR
260DR
126B
126B
208FL
126B
197AR
264DL
10 Code
04/01/2001
14958930
0100087533
0100087533
01000875
67221836
27443484
01018908
01018908
003
00936838
01005895
85387876
01009079
01009079
01018908
01018908
85387876
14960650
27443484
14960650
27443484
27443484
274484
274484
27443484
00920820
01012344
00937319
14958210
27443484
14958210
32155243
16392656
27443484
014958210
014958210
14958700
14958700
00937319
00923116
33634168
" - Destination ;--<, Ii.m~ Termination
,A'·\ Call Type ;.Nifmbl!r Oiiiled ·' HH·:MM Status';-,,' .
InterLATA
InterLAT
Dial Only
InterLAT
Dial Only
Dial Only
Interstate
InterLATA
Dial Only
Dial Only
Dial Only
Dial Only
Dial Only
InterLAT
Interstate
Dial Only
Dial Only
InterLATA
InterLATA
InterLATA
Dial Only
Dial Only
InterLATA
07:16
07:35
07:35
07:35
07:42
07:44
07:53
07:55
07:57
07:57
08:03
08:19
08:20
08:21
08:23
08:23
MMM
:SS
Validate Check
:00
:00
10 Code Bad
:00
Term Num? Quit :00
Normal End
14
Time Out Stop
:00
Time Out 5top
:00
Normal End
14
10 Code Quit
:00
Normal End
14
No Answer Time ( :00
No Answer Time ( :00
Term Num? Quit :00
Validate Block
:00
10 Code Quit
:00
Time Out End
15
No Answer Time ( :00
10 Code Quit
:00
Time Out Stop
:00
Validate Time Ou! :00
Term Num? Quit :00
Term Num? Qui! :00
10 Code Quit
:00
ID Code Bad
:00
Term Num? Quit :00
Normal End
14
No Answer Time ( :00
No Answer Time ( :00
Term Num? Quit :00
Time Out 5top
:00
Normal End
4
Normal End
3
Normal End
5
Time Ou! Stop
:00
10 Code Quit
:00
10 Code Bad
:00
Validate Block
:00
Validate Block
:00
No Answer Time ( :00
10 Code Quit
:00
ID Code Quit
:00
Normal End
14
IDCodeQu~
OUT=XL5;5HW=Y;RPT=CD2;
Call Date Is Equal To 04/01/2001
5ite Is Equal To Karnes County Correc!iona
Dura!ion is actual time from Termination time - Connection time
1 of 1
TRE - 608
A T& T Inmate System Report
•
.-;
'I:"\:~
','
;
.-:: -:~.~
-··.:"'~'~I
\,
"-;
, :'c
"
,~- :; 1:..0
Call Date:
Equal To 04/01/2001
04/20/200114:13:58
Report Date:
Phn
TrkZone
IDCode
-C'
- Dllstination- - -:,:-;::rinitk "_Termiriation
Call Typ'eNuri'lbefDlliled,.' Hf:j.;,.,M 5tatus ' /
5210
5210
5210
5210
5210
5210
5210
CDR Date:
02 202A
02 202A
02 202A
02 202A
01 202A
02 202A
03 202A
04/01/2001
00003827
00003827
00003827
00003827
00003827
00003827
00003827
Local
Local
Local
Local
Local
Local
Dial Only
10:00
10:02
10:11
13:45
13:47
13:52
15:17
MMM
··- :55 .
No Answer Time ( :00
No Answer Time ( :00
No Answer Time ( :00
Normal End
:16
Normal End
:37
Normal End
1
Term Num? Quit :00
OUT=XL5;SHW=Y;RPT=CD2;
Call Date Is Equal To 04/01/2001
5ite Is Equal To Karnes County Correctiona
TNlls Equal To '8307803747'
Duration is actual time from Termination time· Connection time
•
•
TRE - 609
1 of 1
AT&T Inmate System Report
•
-:
I::...' -; -
','
" ; , : . ,......
_. - . _ I
I
- . •
I
I:'"
Call Date:
Equal To 04/01/2001
04/20/2001 14:08:10
Report Date:
;,~:"J_~"
Phn
Trk Zone
SI17
S117
S117
S117
12
12
09
11
CDR Date:
205AL
205AL
205AL
205AL
meade
. ::" :;:, , ~ ~ :~
,
::.':
Des~ination ,c
. Time Termination
\ ball TYl>8c Number Dialed > HH:MMStafos
MMM
':SS
04/01/2001
01018908
01018908
01018908
01018908
InterLATA
InterLATA
Dial Only
InterLATA
07:53
07:55
08:23
08:23
Time Out SlOp
Normal End
ID Code Quit
Time Out End
:00
14
:00
15
OUT=XLS;SHW=Y;RPT=CD2;
Call Date Is Equal To 04/01/2001
Site Is Equal To Karnes County Correctiona
Inmate ID Is Equal To '01018908'
Duration is actual time from Termination time - Connection time
•
•
1 of 1
TRE - 610
A T& T Inmate System Report
•
•
.. :
/-_\,-:
','
-:' ........ ~"'I
I"
' .
>t'I~1
l:"
Call Date:
Equal To 04/01/2001
Report Date:
04/20/2001 14:10:30
Destlriatio""- . cO -Time . Termination <.·:.·MMM
. :SS
Call.;Type Number.[)iilled ·' I'IH:MM Status .
; ,cO:.- ". ,. -
;:C-'- ~..
,·.c· .... :·:..
Phn
Trk Zone
S210
S210
S210
S210
S210
S210
S210
S210
S210
S210
S210
S310
S210
S210
S210
S110
S110
S110
S310
S310
S310
S310
S310
S310
02
02
02
02
02
01
02
02
02
03
01
02
01
02
02
03
05
03
02
02
02
02
02
02
CDR Date:
202A
202A
202A
202A
202A
202A
202A
202A
202A
202A
202A
251CL
202A
202A
202A
234E
234E
234E
251CL
251CL
251CL
251CL
251CL
251CL
IDeode
04/01/2001
00003827
00003827
00003827
00001202
00003827
00003827
00003827
00003827
00003827
00003827
00003827
14959250
00003827
00003827
00003827
44342924
57882346
14123062
14954040
14954040
14954040
14954040
14954040
14954040
;-' .0.:
Local
Local
Local
Local
Local
Local
Local
Dial Only
Local
Dial Only
Local
Dial Only
Local
Local
Local
10:00
10:02
10:11
11 :07
13:45
13:47
13:49
13:52
13:52
15:17
15:18
16:02
16:13
17:10
17:23
19:43
20:25
20:54
21:22
21:24
21:24
21:25
21:27
21:29
No Answer Time ( :00
No Answer Time ( :00
No Answer Time ( :00
Validate Block
:00
Normal End
:16
Normal End
:37
No Answer Time ( :00
Term Num? Qu it :00
Normal End
1
Term Num? Quit :00
No Answer Time ( :00
10 Code Quit
:00
No Answer Time ( :00
No Answer Busy :00
NonmalEnd
:17
Time Out End
1
Term Num? Quit :00
Validate Block
:00
:00
Hang Up Stop
Term Num? Quit :00
10 Code Quit
:00
:00
Hang Up Stop
Intercept Op
:00
No Answer Hang I :00
OUT=XLS ;SHW=Y;RPT=CD2;
Call Date Is Equal To 04/01 /2001
Site Is Equal To Karnes County Correctiona
Phone 10 Is Equal To 10
Duration is actual time from Tenmination time - Connection time
•
1 of 1
TRE - 611
AT&T Inmate System Report
•
•
•
I";
li~'{::
-
t,t
"
.{:l,'~:.,:o
:'~::I~J;
.,"
',."
~
:,
Call Date:
Equal To 0410112001
Report Date:
04/20/2001 14:16:53
Phn
Trk Zone
5205
5205
5205
5309
5205
5112
5211
5309
5309
5211
5211
5207
5309
5112
5210
5112
8112
5210
5210
5308
5111
5111
5111
5210
5114
5205
5205
5112
5104
5200
5205
5205
5309
5309
8307
5307
5106
5106
5301
S308
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
CDR Date:
191AR
191AR
191AR
250CR
191AR
272D
260DR
250CR
250CR
260DR
260DR
126B
250CR
272D
202A
272D
272D
202A
202A
247CR
268D
268D
268D
202A
264DL
191AR
191AR
272D
217F
191AR
191AR
250CR
250CR
244CR
244CR
224E
224E
191AL
247CR
c Destim!ltion
. Time ... ;meriJIination
Call Type Number Dialed HH:MN1t8fatUs
04/01/2001
0100087533
0100087533
01000875
27443484
01009079
14960650
14958210
27443484
27443484
014958210
014958210
27443484
14960650
00003827
09566825685
09566825685
00003827
00003827
95484753
111255313
111255313
11255313
00001202
321553
00
00570
14960650
00655926
01005895
01005895
00570379
274437
27443484
64
64
62592279
62592279
01005895
85671666
Dial Only
Dial Only
Dial Only
Interstate
Dial Only
Dial Only
Dial Only
Interstate
Interstate
Dial Only
Dial Only
Dial Only
Interstate
Dial Only
Local
Dial Only
Dial Only
Local
Local
Dial Only
Dial Only
Dial Only
Dial Only
Local
Dial Only
Dial Only
Dial Only
Dial Only
Dial Only
Dial Only
Dial Only
Dial Only
Dial Only
I
Dial Only
Dial Only
Dial Only
Dial Only
InterLAT
07:35
07:35
07:35
07:44
08:20
08:47
09:27
09:27
09:33
09:33
09:33
09:46
09:48
10:00
10:00
10:02
10:02
10:02
10:11
10:20
11 :05
11 :05
11:06
11 :07
11 :21
11 :24
11 :29
11 :35
11 :36
11 :53
11:54
11 :58
12:07
12:08
12:11
12:11
12:15
12:41
12:57
13:22
MMM
··:88
ID Code Quit
:00
ID Code Bad
:00
Term Num? Quit :00
Time Out 5top
:00
Term Num? Quit :00
ID Code Quit
:00
Term Num? Quit :00
Time Out 5top
:00
Time Out 5top
:00
ID Code Quit
:00
ID Code Bad
:00
ID Code Quit
:00
Hang Up 5top
:00
ID Code Quit
:00
No Answer Time ( :00
ID Code Quit
:00
ID Code Bad
:00
No Answer Time ( :00
No Answer Time ( :00
Term Num? Quit :00
ID Code Quit
:00
:00
ID Code Bad
Term Num? Quit :00
Validate Block
:00
ID Code Quit
:00
ID Code Quit
:00
ID Code Quit
:00
Term Num? Quit :00
Term Num? Quit :00
Out of 5ervice
:00
ID Code Quit
:00
ID Code Quit
:00
ID Code Quit
:00
Time Out 5top
:00
ID Code Quit
:00
ID Code Bad
:00
Term Num? Quit :00
ID Code Quit
:00
Normal End
2
Time Out End
3
OUT=XL5;5HW=Y;RPT=CD2;
Call Date Is Equal To 04/01/2001
5ite Is Equal To Karnes County Correctiona
Trunk Is Equal To 2
Duration is actual time from Termination time - Connection time
1 of 1
TRE - 612
A T& T Inmate System Report
-:
•
I-},'-:-
','
,;:'
~
=-i
r.
'.
f
I
",
/-_)
11 Date:
Equal To 04/01/2001
04/20/200114:08:10
port Date:
Phn
Trk ·Zone··
5117
5117
5117
5117
CDR Date:
12 205AL
12 205AL
09 205AL
11 205AL
:ss
04/01/2001
563231
563231
563231
563231
01018908
01018908
01018908
01018908
InterLATA
InterLATA
Dial Only
InterLATA
07:53
07:55
08:23
08:23
TIme Out Stop
Normal End
10 Code Quit
Time Out End
:00
14
:00
15
OUT;XL5;SHW;Y;RPT;CD2;
Call Date Is Equal To 04/01 /2001
5ite Is Equal To Karnes County Correctiona
Inmate DOC Number Is Equal To '563231'
Dura1ion is actual time from Termination time - Connection time
•
•
1 of 1
TRE - 613
AT&T Inmate System Report
•
•
•
-::
I :-_~ ; :
I.'
,-:
.::-
·,1
(1
' •
-: I
~.
....
•
Call Date:
Equal To 04/01/2001
Report Date:
04/201200114:02:54
",~~
Phil , Trk ' Zone
S206
8205
S205
8205
S123
8309
8117
8117
8218
8218
8205
8212
8205
S205
8117
8117
8212
8112
8217
8112
8217
8217
8217
8217
S217
8205
8117
8121
S211
8309
8211
8114
8123
8309
S211
8211
8211
8207
S120
8120
8123
S211
03
02
02
02
11
02
12
12
09
11
03
03
02
03
09
11
03
02
11
03
09
09
09
09
09
03
11
12
02
02
03
03
11
02
02
02
03
04
12
09
11
03
CDR Date:
129B
191AR
191AR
191AR
250CL
250CR
205AL
205AL
205AR
205AR
191AR
257DR
191AR
191AR
205AL
205AL
257DR
2720
250CC
2720
250CC
250CC
250CC
250CC
250CC
191AR
205AL
208FR
260DR
250CR
260DR
264DL
250CL
250CR
260DR
260DR
260DR
126B
208FL
208FL
250CL
260DR
< C'''';''OC,7';0 _ ~'4~stlhati!)h " "'-f' Trine' c' Te-rmination
IDCode "c ,:c" Call Typi! ' Ni.iI1l~r DI1iled'""HI;I~Mr,HUatus ""","
04/01/2001
14958930
0100087533
0100087533
01000875
67221836
27443484
01018908
01018908
003
00936838
01005895
85387876
01009079
01009079
01018908
01018908
85387876
14960650
27443484
14960650
27443484
27443484
274484
274484
27443484
00920820
01012344
00937319
14958210
27443484
14958210
32155243
16392656
27443484
014958210
014958210
14958210
14958700
00937319
00937319
16392656
14958210
InterLA
Dial Only
InterLAT
Dial Only
InterLAT
InterLA
Dial Only
InterLA
Dial Only
Dial Only
Dial Only
Dial Only
Dial Only
InterLAT
Interstate
Dial Only
Dial Only
InterLATA
InterLATA
InterLATA
Dial Only
InterLATA
07:35
07:35
07:35
07:42
07:44
07:53
07:55
07:57
07:57
08:03
08:19
08:20
08:21
08:23
08:23
08:29
08:47
MMM
' :55
'
Validate Check :00
ID Code Quit
:00
ID Code Bad
:00
Term Num? Quit :00
Normal End
14
Time Out 8top
:00
Time Out 8top
:00
Normal End
14
10 Code Quit
:00
Normal End
14
No Answer Time ( :00
No Answer Time ( :00
Term Num? Quit :00
:00
Validate Block
10 Code Quit
:00
Time Out End
15
No Answer Time ( :00
ID Code Quit
:00
Time Out Stop
:00
Validate Time Out :00
Term Num? Quit :00
Term Num? Quit :00
ID Code Quit
:00
10 Code Bad
:00
Term Num? Quit :00
Normal End
14
No Answer Time ( :00
No Answer Time ( :00
Term Num? Quit :00
Time Out Stop
:00
Normal End
4
Normal End
3
Normal End
5
Time Out Stop
:00
10 Code Quit
:00
10 Code Bad
:00
Normal End
7
Validate Block
:00
No Answer Time ( :00
10 Code Quit
:00
Normal End
14
Normal End
4
OUT=XLS;8HW=Y;RPT=CD2;
Call Date Is Equal To 04/01/2001
8ite Is Equal To Karnes County Correctiona
Duration is actual time from Termination time - Connection time
TRE - 614
1 of 1
A T& T Inmate System Report
~
•
1:_',--;-
',',
~ ,-: . : _ , _...
,:"'~l
J
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~
-
J-:' ,~-
"/";I - -j -_
11 Date :
Equal To 04/01/2001
041201200114:08:10
port Date:
Phn ,: Trk,Zone'·,
S117
SI17
S117
S117
12
12
09
11
CDR Date:
205AL
205AL
205AL
205AL
04/01 /2001
Joe Smith
Joe Smith
Joe Smith
Joe Smith
01018908
01018908
01018908
01018908
InterLATA
InterLATA
Dial Only
InterLATA
07:53
07:55
08:23
08:23
Time Oul Stop
Normal End
ID Code Quit
Time Out End
:00
14
:00
15
OUT=XLS;SHW=Y;RPT=CD2;
Call Date Is Equal To 04/01/2001
Site Is Equal To Karnes County Correctiona
Inmate Name Is Equal To 'Joe Smith'
Duration is actual time from Termination time - Connection time
•
•
TRE - 615
1 of 1
Equal To 04/01/2001
04/20/200114:08:10
Phn
Trk-'Zone
S117
S117
SI17
SI17
12
12
09
11
CDR Date:
205AL
205AL
205AL
205AL
S81-'-Number
04/0112001
21202
21202
21202
21202
--','
..
,", ' ,
-
IDCcde
01018908
01018908
01018908
01018908
_ '- . c_.' " .• ; i':;", .~ be$tlllatlbii · f,c· :'.:-Time '·.,:-Terrnination
' MMM
.' 'eGall-Type " Nu-m tK!i'Oialeth HH-: MM,SiatUB
"-"'- ' ::55 .
InterLATA
InterLATA
Dial Only
InterLATA
07:53
07:55
08:23
08:23
Time Out Stop
Normal End
10 Code Quit
Time Out End
:00
14
:00
15
OUT=XL5;SHW=Y;RPT=CD2;
Call Date Is Equal To 04101/2001
Site Is Equal To Karnes County Correctiona
Inmate S61 Number Is Equal To '21202'
Duration is actual time from Termination time - Connection time
•
TRE - 616
1 of 1
•
Sample
Graphical
Reports
•
•
TRE - 617
•
Number Calls by Call Type/Status
Call TYPES
20000
18000
17920
16000
14000
12000
!!J.
iii
.
(.)
10000
8000
•
6000
4000
2000
11
0
•
TRE - 618
103
180
616
2
2
535
196
•
Number Calls Per Phone
# Calls per Phone
1400
1313
1191
1200
1116
1100
1000
f-
904
..
978
r- r-
903
790
r-
800
1093
14~
815
C--
r- r- r-
!!!.
693
()
•
r-
600
t-- 452
400
205
200
r--
C--
r- r-
~
r-
444
420
389
r- r-
~
r-
r- r-
~
r- r- r-
~
-
-
r- r-
~
~
-
f-
r- r-
~
r- r-
~71
r- r-
-
~
o
•
TRE - 619
J
•
93
85
72
0
•
Number Calls by Trunk Usage Types
Trunk Usage Types
25000r-------------------------------------------------------------------~
22872
20000 i - - - -
15000i---
10811
.10000
6932
5000 i - - - -
0-1---Dialed/Hung Up/Not Allowed
Network/No Answer
Answered/Not Accepted
•
TRE - 620
Completed
•
Number of Calls Validate by LIDB
# Calls Validated via LlDB
60000y---------------________________________________________________--.
50000+---------------------__________________________~~____________~
40000+-----------------_________________________
!!!
•
.
~ 30000 t-------------------------------------------
20000+-------------------_______________________
10000+---------------------_____________________
5872
0+---Validation Port Accessed
Not Accessed (LocaJly Approved, Debit or Free)
•
TRE - 621
•
Number Minutes by Call Type
# Minutes by Call Type
140000~----------------------------------------------------------------------,
120590
120000 +------------------------------------------------
100000 +------------------------------------------------
~
80000 +------------------------------------------------
~
.."
i
•
60000 t-----------------------------------------------
40000 t----------------------------------------------28554
20000 t--------------------------------
274
1922
1605
O~--~~--__--~------__Free Calls
Local
Toll
•
TRE - 622
Long Dist.
InterNational
•
Number Calls and Minutes by Call Type
# Calls & Minutes by Type
120000r---------------------------------------------------~========~~
• Calls
106185
!ill Minutes
100000 4--------
80000 1--------
11
"
'"
I::
:E
60000
+--------
.~..
40000
20000
653
274
416
789
o
Collect
Free
Debit
•
TRE - 623
International Op Ass
•
Number Calls and Minutes by Language Type
# Calls & Minutes by Language Types
160000.--------------------------------------------------------------------.
147029
140000 -1----------------
120000 -1---------------
..
S
100000
"c
..
.
:i
•
• Calls
80000
mMinutes
.!!l
'iii
0
60000
40000
20000
-1---------~=.,____-
5641
688
0-1---Language 0
Language 1
•
TRE - 624
•
Number Calls and Minutes by Billing Type
Total Calls & Minutes by Billing Types
120000,----------------------------,--------n
Calls III Minlute,sl
106185
100000
f----------
80000
..
2
"
..
:E"
•
60000
.!!!
"iii
()
".
45697
40000
22872
20000
o
o
416
Active
789
Op Assisted
•
TRE - 625
653
274
Free Call
Debit
•
Call Activity by ANI
Traffic by A N I
120000r-------------------------------------------------------------------.
108895.80
100000 + - - - - - - - - - - - - - - - - - - - - - - - - - - -
80000
.Calls
Z'
:~
«
(!) Minutes
60000
1m Attempts
"ii
o Answered
u
•
II1II Connected
40000
20000
o
BFL1A 7163451971
BFl2A 71 63451464
Location I A N I
•
TRE - 626
AT&T Inmate System
System Features
•
•
AT.T
Inmate System
•
System Features
•
•
DIGITAL ACP®
•
T.O.M.TM
•
HearSayTM
This material is subject to change without notice. No part of this document may be reproduced, in
whole or in part, or transmitted in any form without the expressed written permission of AT&T.
TRE - 627
SYSTEM FEATURES and SPECIFICATIONS
•
DIGITAL ACP ® Automated Call Processor
Standard Features
The DIGITAL ACP ® is a fully automated call processor that was engineered for
maximum flexibility and reliability. Housed in a rack-mountable chassis, the DIGITAL
ACP offers extensive feature selections and investigative tools through the use of
proprietary software.
•
The following list of system features is standard with each DIGITAL ACP ®. A
qualified technician must activate these features remotely or prior to shipment of the
system.
Standard Features
Description
Automated Station to Station Collect Call
Fully automated operator system
Processing
Fully automated operator system with option to record
Automated Person to Person Collect Call
Processing
called party's name
Over 250 English and S~anish voice~romIJts
Extensive Bi-Lingual Voice PromIJt LibraI}'
Positive Collect Call AcceIJtance
Rt:quires active accej>tance ~called part~.
Pre-recorded or recorded with each call
Inmate Name Recording
Process collect calls to all international destinations
Direct Dial International
Ability to "splash" calls to customer chosen operator center
Operator Assistance
Calls will not be flagged for billing, usually to attorneys
Facility Specified Free Calls
Fewer c.o. lines are required than inmate phones
Trunk Concentration
A 1:1 ratio of phones to trunks
Non-Concentration
Equal number of phones to trunks with ability to bypass
1: 1 Ratio with Concentrator Function
out of service trunks
Least cost routing, available with concentrator only
Trunk Switching
Flexible Remote Call Detail Reporting
Reports provided upon request
Speed Dial
Available for one number
Call Blocking
Numbers are blocked remotely
Phonerrrunk Blocking
Automated Operating Hours
Automated Call Duration Limitation
•
Inmate Alert Voice Overlay. Recording
3-Way Click Detect
Post Connection Keypad Detection
Rotary Click Detect
Call Branding
AT&T Inmate System
Features and Specifications
Phones or Trunks blocked remotely usually due to an out
of service condition
Available globally, by inmate phone, day of week, and
holidays
Available globally, by inmate phone, and call type (local or
long distance)
Random announcement played throughout call
Flagging/pisconnection of £Os sible 3-Waycall attempts
Limits dialing ability during active call
EnablelDisable identification of rotary signal
Phone specific up to two messages to be played upon
2
TRE - 628
Revision V.D4
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
Maximum Rate Quote
V&H Rate Quoting
Phone ID Message
Acti vity Guard
Hard Drive Detail Storage
Expandable to include multiple systems
answer detection
Maximum charge stated for interstate calls
Maximum charge stated for all call !Y}Jes
Played during call setup for ease of ACP phone
identification for installation and diagnostics
Limits the number of calls placed during a specified period
of time, programmedglobally
All call detail stored locally on the ACP hard disk
Modular capability to fit any number of inmatej:>hones
DIGITAL ACP ® Automated Call Processor
Software Feature Options
The following software feature options may be added to the DIGITAL ACP ®. Options
listed for each software feature should be chosen prior to installation and will be installed
by a qualified technician prior to shipment of the system. Software features may be used
alone or in combination with others.
•
Software Feature
Additional Languages
LIDB Validation
PIN*
(4 -16 digits in length)
PIN wI Allowed Call List
•
AT&T Inmate System
Features and Specifications
Descri~tion
Voice prompts for other languages in addition to the
standard English and Spanish prompts .
Dial-u~ or WAN
Options listed are available at the Global, PIN, and/or
Allowed Call List Levels:
- Call duration control (Global level)
- Dayrrime Restrictions (Global level)
Administrative Hold (PIN level)
- Self Learn Mode (PIN level)
- Activity Guard (Global)
- Recording (Global, PIN, and Allowed Call List)
- Monitoring (Global, PIN, and Allowed Call List)
- 3-Way Call Detect (Global level)
- Langu:l&e Preference (Global level)
Options listed are available at the Global, PIN, and/or
Allowed Call List Levels:
- Call duration control (Global level)
- Dayrrime Restrictions (Global level)
Administrative Hold (PIN level)
- Activity Guard (Global)
- Recording (Global, PIN, and Allowed Call List)
- Monitoring (Global, PIN, and Allowed Call List)
- 3-Way Call Detect (Global level)
- Language Preference (Global level)
3
TRE - 629
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
Debit (requires PIN numbers)
Debit wiAllowed Call List*
•
•
Debit Smart Card (requires Debit Feature)
Options listed are available at the Global, PIN, and/or
Allowed Call List Levels:
- Call duration control (Global level)
- DayfTime Restrictions (Global level)
- Administrative Hold (PIN level)
- Activity Guard (Global level)
- Recording (Global, PIN, and Allowed Call List)
- Monitoring (Global, PIN, and Allowed Call List)
- 3-Way Call Detect (Global level)
- Language Preference (Global level)
Options listed are available at the Global, PIN, and/or
Allowed Call List Levels:
- Call duration control (Global level)
- DayfTime Restrictions (Global level)
- Administrative Hold (PIN level)
- Activity Guard (Global level)
- Recording (Global, PIN, and Allowed Call List)
- Monitoring (Global, PIN, and Allowed Call List)
- 3-Way Call Detect (Global level)
- Language Preference (Global level)
- Weapon-proof
Pre-printed with site and/or company name
Pre-printed
dollar amount (any denomination)
-
AT&T Inmate System
Features and Specifications
4
TRE - 630
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
DIGITAL ACP ® Automated Call Processor
Additional System Components
The DIGITAL ACP ® may be used as a stand-alone system for automated collect calling
without features such as PIN or Debit.
Digital ACP
1111
•
. __ _
The telephone
switching system
that controls all
inmate phone calls.
T.O.M.
TELEOUIP On-Site Manager
The TOM offers site personnel the ability to control various call administrative functions
without the need for remote technical assistance. A Local Area Network (LAN)
connection to the DIGITAL ACP ® provides real-time viewing and processing
capabilities. Sites no longer have to depend on their suppliers to perform such activities
as call number blocking, real-time call activity viewing and call detail reporting. See
"T.O.M. Features" for a list of available options.
Telequip's On-site
Manager (TOM) is an
administrative
workstation and
printer for monitoring
and changing any call
control requirements .
•
AT&T Inmate System
Features and Specifications
5
TRE - 631
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
T.O.M. FEATURES
Feature
Color Monitor
Laser Printer
Keyboard
Mouse
Microsoft Windows NT
View Current Phone Status
Call Number Blocking
Description
Standard 15" monitor (larger sizes available
upon request at extra cost)
Prints ll~m
Standard 101-key_
Microsoft Serial Mouse
Microsoft Windows NT Operating System
Real-time call activity display
Real-time call number blocking database by:
- Number (up to 16 digits)
-
-
Flexible Call Detail Reporting
Standard report options:
- All calls
-
-
•
Ad Hoc Reporting
Activity Tracking
UID Manager
Debit Manager
PlayVox**
(Added when the HearSay component is
purchased)
•
All calls by phone
All calls by called number (TN!)
All calls by PIN (when PIN is active)
Create reports from SQL database with
reporting software such as FoxPro, Crystal
Reports, etc.
Tracks all admi ni strati ve user acti vi ty
PIN Management with the following special
features:
- Random PIN generation
- Administrative Hold function
- Creating an allowed call list
Debit Management (combined with the UID
Manager) with the following special features:
Random PIN generation
- Real-time account balance display
- Creating an allowed call list
- Commissary Interface (requires development)
HearSay call recording management with the
following special features:
- Call recording manifest by date, time,
PIN, called number, and inmate phone
- Playback functions
- Recording archival
- Archival restoration
- Alert Numbers
AT&T Inmate System
Features and Specifications
Area code
Country code
Exchange
Range of numbers
6
TRE - 632
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
HearSay
Call Recording and Monitoring
HearSay, when purchased, is fully integrated with and resides within the DIGITAL
ACP® chassis. HearSay provides digital recording and audio listening capabilities and
enables correctional facility personnel (investigators, officers, and administrators) to
record and/or listen to inmate conversations. Calls are recorded on the HearSay hard
drive and archived to a customer chosen form of media such as digital tape, RAID, or
optical disk. HearSay is fully integrated with the T.O.M. through LAN connection
providing time synchronization and complete data accuracy. Full channel or Selective
recording options are available. See "HearSay Features" for a list of available options.
Digital ACP with
HearSay
1m
•
.
HearSay Features
Feature
Full Channel Recording
Selective Recording
Archiving
Remote Monitoring
Remote Playback
Captain Monitoring Phone
CD Recorder
•
Digital recording system to
record and monitor inmate
telephone conversations.
HearSay resides within the
Digital ACP.
Description
Records all calls at all times
Choice of the number of recording
channels desired; typically 20% of total
, phones
-Digital Audio Tape (DAT) Archival
·Digital Linear Tape (DLT) Archival
-RAID
- Options for 30 to 365 days online
Ability to monitor calls from any telephone
anywhere.
Forward a recorded call to any telephone
from the TOM Playback Station.
Standard single-line speaker phone
equipped with a 120 character liquid
crystal display (LCD)
Enables the user to create Audio CDs for
use as an interchange device for taking
inmate recordings to evidentiary
j)roceedings
AT&T Inmate System
Features and Specifications
7
TRE - 633
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
Traffic Cop
Data Communications Manager
The Traffic Cop is now imbedded within one DIGITAL ACP ® chassis at each facility
and offers multi-level call processing control through a central database. The DIGITAL
ACP ®, HearSay, and Traffic Cop functions are network integrated and are further
interconnected with the T.O.M. to form the most complete call control system available.
When WAN connectivity is required for multiple site installations where centralized
control is required, the Traffic Cop within the DIGITAL ACP ® will provide complete
centralized control. The site Traffic Cop holds cashed data received from the master
Traffic Cop at a central location, and acts as a single point of data for that site's call
processing activity. The central data base is the Master Traffic Cop designed to support
collect calling activity across multiple facilities. Updates from each site, and database
requests generated by each call, and other system activity are processed through the Site
Traffic Cop and on to the Master Traffic Cop Central Database via the WAN. The
Traffic Cop is required for all PIN, Debit, and/or WAN systems. There are no feature
option choices for the Traffic Cop.
•
•
A Server Database that stores
the inmate information,
allowed call numbers,
blocked numbers, and other
data about each call. The
Traffic Cop resides within the
Digital ACP .
Digital ACP with
Traffic Cop
lUI
AT&T Inmate System
Features and Specifications
.
8
TRE - 634
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
Hardware Specifications
DIGITALACP
Includes HearSay and Traffic Cop,
•
if applicable.
19" Black Chassis contains:
MS NT Workstation OS
Dual IDE Hard Drives
20GB System
36 - 80 GB Call Recordings
or
Optional RAID-lor RAID-S
Redundant, hot swappable power supplies
Redundant fans
ATX Motherboard - 233 Mhz Intel Pentium
or
Pentium 550 Single Board Computer or greater
14 to 20 slot passive backplane
RAM 64MB or greater
Dialogic Based Switching
Analog andlor Tl interface cards
120/1.44MB Floppy Disk Drive
CD-ROM
56 Kbps Modem
IS" Monitor
Keyboard, Mouse
TOM
MS NT Workstation OS
ATX Motherboard - 233 Mhz Intel Pentium
128MB RAM
120/1.44MB Floppy Disk Drive
CD-ROM or CD-R/W (HearSay only)
DAT, DLT, or LTO Tape Backup Unit (HearSay only)
56 Kbps Modem
17" Color Monitor
Keyboard, Mouse
Laser Printer
Monitor Phone
•
Nortel Model #390
AT&T Inmate System
Features and Specifications
9
TRE - 635
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
Hardware Specifications con't.
UPS
Minuteman Enterprise Series rack mount or equivalent
Racks
19" equipment rack with shelves
This list represents equipment comprising the AT&T Inmate System platform. All items
are subject to change without notice. Changes to the equipment will be equivalent to or
greater then those represented in this specification .
•
•
AT&T Inmate System
Features and Specifications
10
TRE - 636
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
Small Site Configuration
Inmate Phones
~
~Digital ACP
~
with Traffic Cop
1111
.
LAN
•
Dialup or
WAN Validation
Connection
TOM
Ie
Large Site Configuration
Inmate Phones
,r(]B\
\.J
\
'/~\
-.) II
Monitor
Monitor
Phone
Phone
i'
il
l
li-"m
... \\\\
\1
~ Digital ACP
with HearSay
and Traffic
DAT, DLT, or RAID
......... j3L
LAN
•
Dialup or WAN
Validation
Connection
AT&T Inmate System
Features and Specifications
11
TRE - 637
Revision V.04
May 2001
SYSTEM FEATURES and SPECIFICATIONS
•
•
i------------------(fiIQ!Tnlsf-lttl~)----i
,,,
,
,
,,:
,,
,,
'
C
:
Digital A P
:'
,
M
,,
I,
,
,
,
,,
,,,
~--
Server
'
Network
Control Center
LAN - WAN Debit I Collect
Inmate Calling System
,
:
~,
LAN
Prison Site 1
L, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
,,---------------------------
,,,
,,
,,
,,
,
Frame Relay
Cloud
,
I,
Telequip
TOTAI..JlUALlT~f __ _
:--- Control Center
LAN
Prison Site 2
Router:
----------------------------~~
[~I~1
•
,,
,
'
Server
Prison Site 3
• Full Maintenance
• Validation Center
• Call Collection
!...----------Inmate Telephone Switching System
Integrated Digital Call Recording System
Collect & Debit Calling
Optional
Call Rating & Billing
DialUp
Centralized Database and Recording Storage
Validation!
Collection
Commissary Voice Response Interfaces
for Smaller Sites Future Voice Mail, Intranet Alarms and
Network Control Center
•
AT&T Inmate System
Features and Specifications
12
TRE - 638
Database Administration
Remote Diagnostics
,
-Dallas
!
,,,
,,,
,,
,,
,,
,,
,,,
,,,
,,,
,,
,,,
,,
,,
,,,
,,
,
,I
~------------------------ ______ I
Revision V,04
May 2001
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
AT &T Inmates Systems
,
•
-- ATlaT
Digital ACP®
Voice Prompting
............................................................................................................................................................" ............................................................................................
~.~.~!'.~.!.~!'.~.!.~.~!'.!.!.~ ... ~.!.~ ... !'.!.~.~ ... ~.!.! ...... !.!.~ ... !.!.! ...... !.!.! ... !.!.! ....... !.!.! ... !.!-! ...... !.! .........!-!-..... !.! ...... ~.!.! ...... !.! ......... !.! ...... !.! ........•! .....,. .................! ...... !'.! ............ ! ...... !'.! ............ ! ............................... :"...............................
1
February 200 1
EN 00.00.02
TRE - 639
AT&T Inmate Systems
Dicital ACP ® Voice Prompting
•Introduction
This engineering manual is designed for use with the Digital ACP® Inmate Call Processor
manufactured by TELEQUIP Labs, Inc. In particular, this document provides detailed
description of the system voice prompts and inmate input involved in the collect call process.
This document contains the following sections:
•
•
Section
Description
One
Detailed text description of call process from off-hook to call termination.
Two
Flow chart of entire call process logic including an extensive listing of possible
call conditions and results.
Three
Reference Table - Complete text of ACP® voice messages in both English and
Spanish.
.
Index
Quick Reference Index
2
February 200 I
EN 00.00.02
TRE - 640
AT&T Inmate Systems
Digital ACP
®
Voice Prompting
•Call Process
Description
This section describes the action, status of the user, and the voice message flow
used in the call process. The steps used in this section are listed by user action,
system prompt and voice message .
•
•
3
February 200 I
EN 00.00.02
TRE - 641
AT&T Inmate Systems
•
Digital ACP ® Voice Prompting
Purpose
After reading this section, you should be able to achieve the following:
1.) Understand the voice message flow of the call process.
2.) Visualize each voice message and its role in the call process.
Call Process Description
Start of Call
•
S
t
e
p
User Action
or Status
1
User takes phone
off hook.
2
User enters PIN
•
System
Response
Voice Message Text
Msg.
ID
Please dial your identification code, now
For Spanish language messages, dial four. (recorded
in Spanish)
371
277
..... ., ...................................................................................................................................................................................................................................................
!.: ... !'.!.! ............:.'::'....: ...... :-...............:.': ......:.': ....................: -! ... !".!.:.'! ......! ......... !.! ......... !.! ... !'.!.:.'! ...... ,.! ... ~.!.!.'! ... ~.!.! ...... !.!.'! ... ~.:.!.'!~.!.!
~.!.~!'.~.!.~ ... !.!.!.~!'.!.!.'!!'.!.!.! ... !'.!.!.': ... !.!.! .....•!.!.'! ......!.! ...... !.! .........!.: ...... !.!.! ......
4
EN 00.00.02
February 2001
TRE - 642
DigitaJ ACP ® Voice Prompting
AT&T Inmate SYstems
•
User Enters PIN
S
t
e
p
3
User Action
or Status
PIN Entered
No
System
Response
Voice Message Text
Msg.
ID
Time Out
A valid ID code must be entered before dialing a
telephone number.
379
Dial Tone
SIT Tone
150
170
377
376
You must enter your inmate ID code first.
To check that your ID code is valid, please ask your
counselor.
A valid ID code must be entered before dialing a
telephone number .
For Spanish language messages, dial four.
(Recorded in Spanish)
379
•
277
Busy Tone
155
376
To check that your ID code is valid, please ask your
counselor.
A valid ID code must be entered before dialing a
telephone number.
379
SIT Tone
Pause
Busy Tone
Busy Tone
SIT Tone
Yes
•
Busy Tone
Pause
Process
returns to step I
Go to Step 4
170
155
306
Please hang up first before placing another call.
155
170
306
Please hang up first before placing another call.
155
5
EN 00.00.02
TRE - 643
February 200 I
AT&T Inmate Systems
Digital ACP ® Voice Prompting
!:~:~!:;:r~:-:~:;:!:':!:;:!:~:-:;:!:E:-:;:!:~;':;:!:~:·::-:;:!:~:-:;:!:~:-::-:;:!:'::-:~:::!:-::-:;:G:-:f!:E:-:;:!:~:-:~:!:!:-::-:;:!:~:-:E;:!:~:-:;:!:~E;:!:~:-:!:~:~:~;:~:~:·:;:;:~:~;:;:;:E;:;:~:~;:;:;:!"f.;:;n;:;:;:;:;:-:;:;:!:~;:;:;:•. :-:;:;:;:!;:;:~:;:.:
•
PIN Correct Amount of Digits
S
t
e
p
4
User Action
or Status
System
Response
Was the PIN
entered, the correct
amount of digits?
Yes
No
Go to Step 5
SIT Tone
Recorded
dialed digits
•
Busy Tone
Busy Tone
SIT Tone
Busy Tone
Pause
SIT Tone
•
Msg.
Voice Message Text
ID
249
One moment while your number is being validated.
170
213
The number that you dialed ...
215
234
252
For example, 1,2,3,4,5,6
.... cannot be processed.
Your number had an invalid number of digits.
To try your number again please hang up fIrst.
155
234
252
155
170
306
Your number had an invalid number of digits.
To try your number again please hang up fIrst.
Please hang up frrst before placing another call.
155
170
306
Busy Tone SIT
Tone
155
175
Busy Tone
On Hook
Pause
Process
returns to
Step 1
155
Please hang up fIrst before placing another call.
6
February 200 I
EN 00.00.02
TRE - 644
Digital ACP ® Voice Prompting
AT&T Inmate SYstems
.PIN
Verified
S
t
e
p
5
User Action
or Status
System
Response
Was PIN good?
Yes
No
Go to Step 6
SIT Tone
Voice Message Text
Msg.
ID
170
373
213
I'm sorry. your ID code is not accepted.
The number you dialed ....
Recorded
dialed digits
Busy Tone
•
Busy Tone
Pause
Process
returns to
Step 1
6
PIN authorized
from this phone?
Yes
I'm sorry your ID code is not accepted.
To enter your ID code again. hang up first.
Your ID code is accepted.
To place a collect call. dial zero before dialing the
number.
372
256
Dial Tone
User enters
Telephone Number
Identification
(TNI)
For example. 1.2.3.4.5.6
... cannot be processed.
To enter your ID code again. hang up ftfs!.
215
375
155
373
375
155
Go to Step 7
SIT Tone
150
170
224
Access to your number had been restricted.
No
Busy Tone
Pause
Process
returns to
Step 1
•
228
155
Your PIN number is not permitted from this phone.
7
EN 00.00.02
TRE - 645
February 200 I
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
TNI Entered
S
t
e
p
7
User Action
or Status
System
Response
TNI Entered?
No
Msg.
Voice Message Text
ID
254
277
Dial Tone
Please dial zero plus the number you are calling. now.
For Spanish language messages, dial four.
(recorded in Spanish)
150
250
You must always dial a zero before your number.
For Spanish language messages, dial four.
(recorded in Spanish)
277
Dial Tone
SIT Tone
•
Pause
SIT Tone
Busy Tone
SIT Tone
Busy Tone
Pause
Process
returns to
Step 1
Go to Step 8
150
170
256
To place a collect call, dial zero plus the number you
are calling.
250
You must always dial a zero before your number.
201
276
277
Your call will be placed as a collect call.
For Spanish language messages, dial four.
For Spanish language messages, dial four.
(recorded in Spanish)
170
306
Please hang up first before placing another call.
155
170
306
Please hang up first before placing another call.
155
Yes
•
8
EN 00.00.02
February 200 I
TRE - 646
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
TNI Valid
S
t
e
p
8
User Action
or Status
Dialed O?
Yes
No
System
Response
•
Pause
SIT Tone
Busy Tone
SIT Tone
Busy Tone
Pause
Process
returns to
Step 1
EN 00.00.02
Voice Message Text
ID
Go to Step 9
Dial Tone
SIT Tone
•
Msg.
250
You must al ways dial a zero before you number.
254
Please dial zero plus the number you are calling, now.
150
170
256
To place a collect call, dial zero plus the number you
are calling.
250
You must always dial a zero before your number.
201
276
277
Your call will be placed as a collect call.
For Spanish language messages, dial four.
For Spanish language messages, dial four.
(recorded in Spanish)
170
306
Please hang up first before placing another call.
155
170
306
Please hang up first before placing another call.
155
9
February 200 1
TRE - 647
AT &T Inmate Systems
Digital ACP ® Voice Prompting
•
Record Name
S
t
e
p
9
User Action
or Status
Valid number of
digits?
Yes
System
Response
Go to Step 10
SIT Tone
Msg.
Voice Message Text
ID
170
213
The number you dialed ....
215
234
For example, 21461209
.... cannot be processed.
Your number had an invalid number of digits.
170
213
The number you dialed .....
215
For example, 1, 2, 3,4, 5, 6
...... cannot be processed.
No
Play dialed
Digits
•
Pause
Process
returns to
c.
10
TNI Valid?
No
1
SIT Tone
Play dialed
numbers
Yes
11
Is Inmate SLM
(SelfLeam
Mode)?
Yes
Pause
Process
returns to
Step 1
Go to Step 11
Go to Step 13
Go to Step 12
•
No
10
EN 00.00.02
February 200 I
TRE - 648
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Record Name Again
S
t
e
p
12
User Action
Status
System
Response
Is TNI on user's
list?
Yes
Msg.
Voice Message Text
ID
201
236
Your call will be placed as a collect call.
State your name now.
User records name
for example, John Brown
Your name has been recorded as ...
238
Replay
recorded name
Go to Step 14
No
•
Busy Tone
Busy Tone
SIT Tone
for example, John Brown
378
252
1'm sorry but your number has not been authorized.
To try your number again, please hang up first
155
378
252
1'm sorry but your number has not been authorized.
To try your number again, please hang up first.
155
170
256
To place a collect call, dial zero plus the number you
are calling.
You must always dial a zero before your number.
Your call will be placed as a collect call.
For Spanish language, dial four.
For Spanish language, dial four.
(recorded in Spanish)
250
201
276
277
Pause
SIT Tone
Busy Tone
SIT Tone
•
EN 00.00.02
170
306
Please hang up first before placing another call.
155
170
306
Please hang up first before placing another call.
II
February 200 I
TRE - 649
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Call Blocked
S
t
e
p
12
13
•
User Action
or Status
No (continued)
System
Response
Busy Tone
Pause
Process
returns to
Step I
MaximumSLM
reached?
Yes
No
Process
returns to
Step I
Program
Adds TNito
user's SLM list.
User records
Name
Msg.
Voice Message Text
ID
155
378
252
I'm sorry but your number has not been authorized.
To try your number again please hang up.
201
236
Your call will be placed as a collect call.
State your name now.
238
for example, John Brown
Your name has been recorded as ...
for example, John Brown
Name
played back
Go to Step 14
14
Record name two
times?
Yes
240
If you want to record your name again dial two at any
time.
Go to Step 15
No
•
Go to Step 16
........................................................................................................................................., ............................................................, ...................................................
!.~.".:'.~.!.'!!'.~.!.!.'!!'.!.!.'! ... !.!.! ... !'.!.!.'! ••. !.!.!.". !'.!.!.'! .•. !.! ....... !'.!.! ....... !.!.! ...... !.!.".!'.!.!....... ! ....! .....".!.! ....... !.!.! ....... !.!.! ...... !.!.". ...... ! ....... !'.!.! ...... ... !.!."..!.!.! ......... ! ...... !.!.!.~.".~.~.!.".~.~.!.".~.~.~.!.".~.~.!.'!. ... ~.!.!.".~.~.!.'!..".~.~.!.".~.~.!
12
February 2001
EN 00.00.02
TRE - 650
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Call Terminated
S
t
e
p
15
User Action
or Status
System
Response
Dialed 2 to record
name again?
Yes
User records
name again
Msg.
Voice Message Text
ID
242
State your name again.
244
For example, John Brown
Your name has been changed to ....
Recorded name
is played back.
For example, John Brown
No
•
Go to Step 16
Go to Step 16
16
Process call
246
One moment, while your call is being processed.
17
Call blocked by
Telco?
Yes
257
Access to your number has been blocked by the
telephone company.
Your number does not permit collect calls.
Busy Tone
Go to Step 21
No
229
155
Go to Step 18
18
Call blocked by
billing and collect?
Yes
261
Busy Tone
Go to Step 21
No
•
Access to your number has been blocked by a billing
and collection company.
Your number does not permit collect calls.
229
155
Go to Step 19
13
EN 00.00.02
TRE - 651
February 200 1
AT&T Inmate Systems
Digital ACP ® Voice Prompting
~:~E~:!:{~~:!:;:~;'::!:;:;:~~:::;:~:-:~:;:~:;!:;:;:;:;!:!:;:;;:!:~:-:~:!:!:;:-:;':!:;:;;':;:;:;:':;:!:;:;:':;:!:;;":;:;:E:':;:!:;:-:;;;:;;'::-:;:;:E:-:;:E:-:;:;:;;':;:;:;:;;':;:;:;;":;:;:;:;;.:;:r;;":;:;:';:;;:;:;:;:-:;':;:;:-:;:;:;:;E;:';:;:-:;:;:;:-:;:;:E;:
•
Call Completed
S
t
e
p
19
User Action
or Status
System
Response
Call blocked by
facility
administrator?
Yes
•
20
Access to your number has been blocked by your
facility administrator.
The number you dialed is not permitted.
232
155
269
Busy Tone
Go to Step 21
•
ID
Goto Step 20
Call blocked by
called party?
Yes
No
Voice Message Text
263
Busy Tone
Go to Step 21
No
Msg.
Access to your number has been blocked by the party
you called.
The number you dialed is not permitted.
232
155
At the same
time the
process goes to
Step 22
(Calling Party)
And Step 30
(Called Party)
14
EN 00.00.02
TRE - 652
February 2001
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Optional Feature Started
S
t
e
p
21
User Action
or Status
System
Response
Has anyone hung
up?
No
First try
Msg.
Voice Message Text
ill
2XX
Access blocked by ... (2XX Msg from either Steps 17.
18. 19. or 20)
Please hang up first before placing another call.
Access blocked by ... (2XX Msg from either Steps 17.
18.19. or 20)
Please hang up first before placing another call.
306
2XX
306
Process
returns to
Step 21
Second try
•
2XX
Access blocked by ... (2XX Msg from either Steps 17.
18. 19. or 20)
Please hang up first before placing another call.
306
2XX
Yes
22
Calling Party
•
SIT Tone
On Hook
Pause
SIT Tone
On Hook
Pause
Access blocked by ... (2XX Msg from either Steps 17.
18. 19. or 20)
Please hang up first before placing another call.
306
170
175
170
175
Progress
tone
generated
during dial
out process
of the call.
15
EN 00.00.02
February 200 1
TRE - 653
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Called Party
S
t
e
p
23
User Action
or Status
Calling Party Call
Answered?
No
Yes
24
Calling Party Call
Accepted?
Yes
•
No
System
Response
Msg.
Voice Message Text
ID
Go to Step 39
Go to Step 24
Talk Path
Completed
(Optional
Feature)
Connect
Start timing
Go to Step 25
Time out
349
308
Busy Tone
Go to Step 29
25
Calling Party Call
Accepted
Optional Feature
One minute
passed?
Yes
No
•
Your call could not be completed at this time.
Please wait until a later time before trying your call
again.
155
Go to Step 26
Process
returns to start
of Step 25
16
EN 00.00 .02
February 200 I
TRE - 654
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Called Party Dialed 3
S
t
e
p
26
•
User Action
or Status
Calling Party Call
Accepted Optional
Feature is feature
installed?
Yes
No
27
Voice Message Text
Msg.
ID
Go to Step 27
Go to Step 28
Calling Party call
Accepted Optional
Feature has X
minutes passed?
Yes
No
28
System
Response
318
323
This call is from.
An inmate at a correctional facility.
336
338
You have one more minute for your call.
You have only fifteen seconds left.
352
Your call has been terminated.
Go to Step 28
Calling Party Call
Accepted Optional
Feature Time limit
(1 minute) passed?
Yes
Talk Path
disconnected
No
Process returns
to Step 25
•
17
EN 00.00.02
TRE - 655
February 200 I
AT&T Inmate Sxstems
Digital ACP
•
Voice Prompting
Optional Feature
S
t
e
p
29
User Action
or Status
Calling Party Hang
Up?
Yes
System
Response
Busy Tone
Pause
Process
returns to
Step I
30
Called Party
31
Called Party Call
Answered?
Yes
Msg.
Voice Message Text
ill
Phone on hook
No
•
®
349
306
155
Your call could not be completed at this time.
Please hang up fIrst before placing another call.
320
322
Hello.
You have a collect call from ...
4986
324
for example, John Brown
... an inmate at a correctional facility.
If you will pay, dial three now.
Pause
Recording of
user's name
No
•
Go to Step 32
Go to Step 39
..........................................................................................................................................................................................................., ..............................................
!.~.~~.~.!.~."..~.!.!!'.~.!.!.!.".!.!.!.".!.~.!.". ......!.!.". ..•!.! ......... !.!.".:'....! ......... !.! ......... !.! ...... !.! ......... ! ... .". ... !.! ......:.!.". ... !.!.". ......!.". ...... ~.!.". ...... !."..".!'.!.!."..". ......!.".. ...... !.!.". ... !.!.". ...... !.!.':='.~.!.~ ... ~.~-! .•. ='.!.~-~ ••• ~.~-~ ••• ='.!.!.-: ••• ~.~.!.':='.~.!
18
EN 00.00.02
February 2001
TRE - 656
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
No Ringback
S
t
e
p
32
User Action
or Status
System
Response
Called Party
Dialed three?
Yes
Msg.
Voice Message Text
ID
334
Go ahead.
324
326
If you will pay, dial three now.
To accept your call from ...
328
for example, John Brown
Dial three at the pause.
334
Go ahead.
330
If you will not pay, please hang up now.
Talk Path
Completed
Optional
Feature
installed,
Connect start
timing
Go to Step 35
No
Recording of
person making
the call
•
Go to Step 33
33
Called Party dialed
three? (2nd time)
Yes
Talk Path
Completed
No
Go to Step 34
34
Called Party Hang
Up?
Yes
No
•
Phone on Hook
Time out
Dial Tone
150
19
EN 00.00.02
February 200 I
TRE - 657
AT&T Inmate Systems
Digital ACP ® Voice Prompting
!:!:~~:;:f:~:':;:;:!:i:':;:!:~:-:;:!:~:~~:::~:~::!:;:~:~;:;:~:~:-:;:::~:~;:;:;:i:'::-:;:~:i:~;:;:~:i;:;:;:;;:;:!:;:;::;:;:;:-:;:~:~:':;:;:!:i:-:;:!:i:-:;:;:!:i;:;:!:i:';;:;:!:·:;:;:;:i;":;:;:~:-:;:;:;:;;":;:;:';:;::;:!:;;:;:;:!:-:;:;:;:;:: ;:;:;:.:;:;:;:;;:;:;:;:::-:
•
Call Busy
S
t
e
p
35
User Action
or Status
Called Party
Optional Feature
One minute
passed?
Yes
No
36
•
37
Called Party
Optional feature
is feature
installed?
Yes
No
System
Response
Msg.
ill
Voice Message Text
Go to Step 36
Process
returns to start
of Step 35
Go to Step 37
Go to Step 38
Called Party
Optional Feature
has X minutes
passed?
Yes
318
323
This call is from.
An inmate at a correctional facility.
Go to Step 38
No
•
Go to Step 38
20
EN 00.00.02
TRE - 658
February 200 I
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Intercept Operator
S
t
e
p
38
User Action
or Status
System
Response
Called Party
Optional Feature
Time limit (-1
minute) passed?
Yes
Voice Message Text
Msg.
ID
336
338
You have one more minute for your call.
You have only fifteen seconds left.
352
Your call has been terminated.
170
344
I'm sorry but no ringback signal was detected.
Talk Path
disconnected
•
39
No
Calling Party/
Called Party
Call Answered
No
No Ringback?
Yes
Call is
terminated
Process
returns to Step
35
SIT Tone
Please wait until a later time before trying your call
again.
To place the next call please hang up first.
308
Busy Tone
SIT Tone
260
155
170
344
I'm sorry but no ringback signal was detected.
Please wait until a later time before trying your call
again.
To place the next call please hang up first.
308
No
•
Busy Tone
SIT Tone
Go to Step 40
260
155
170
21
EN 00.00.02
TRE - 659
February 200 I
AT&T Inmate SYstems
•
Digital ACP ® Voice Prompting
No Answer
S
t
e
p
40
User Action
or Status
Calling Party/
Called Party
Call Answered
No
Busy?
Yes
System
Response
SIT Tone
Busy Tone
SIT Tone
•
No
•
EN 00.00.02
Busy Tone
SIT Tone
Go to Step 41
Msg.
Voice Message Text
ID
170
264
I'm sorry there is a busy signal at this time.
262
Please try your number again at a later time.
306
Please hang up ftrst before placing another call.
155
170
264
I'm sorry there is a busy signal at this time.
262
Please try your number again at a later time.
306
Please hang up ftrst before placing another call.
155
170
22
February 200 I
TRE - 660
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
No Answer
S
t
e
p
41
User Action
or Status
Calling Party/
Called Party
Call Answered
No
Intercept
Operator?
Yes
System
Response
SIT Tone
Busy Tone
SIT Tone
•
No
•
Busy Tone
Pause
SIT Tone
Go to Step 42
Voice Message Text
Msg.
ID
170
214
The number you dialed is not a working number.
306
Please hang up first before placing another call.
155
170
214
The number you dialed is not a working number.
306
Please hang up first before placing another call.
155
170
23
February 200 1
EN 00.00.02
TRE - 661
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
No Answer
S
t
e
p
42
User Action
or Status
Calling Party/
Called Party
Call Answered
No
No Answer?
Yes
System
Response
SIT Tone
Busy Tone
SIT Tone
•
No
•
Busy Tone
Pause
SIT Tone
Pause
SIT Tone
Msg.
Voice Message Text
ID
170
342
262
306
Your party has not answered.
Please try your number again at this time.
Please hang up flrst before placing another call.
155
170
342
262
306
Your party has not answered.
Please try your number again at this time.
Please hang up flrst before placing another call .
155
170
170
24
EN 00.00.02
February 200 I
TRE - 662
AT&T Inmate Systems
Digital ACP ® Voice Prompting
;:~:.:;:!:~:{~:~:;:;:{~:~:;:~:~~:!:;:{~:::!:;:-:~:;:;:{~:;':~:~~:;':!:!;':::;:~:~:-:E!:!:{::;:f:~:-:;:!:!;":::;:f:!;':;:!:!;"::-:;:!:!:-:;:!:!;"::-:;:!:-::':~:!:~:'::-:;:f:-::-:;:!:-:;":::;:~:-:F.;':!:-::{;':;:~:-:F.!:!:;:-:;":;':;:;:-:;':!:~:{;":~:;:~:-:;':;:;:{:-:;:;:-::-::-:f:€:-:;:
•
Call Process
Logic
•
•
This section depicts the call sequence from off hook to call completion in
a flow chart representation. The chart also reflects extensive call progress
scenarios. The logic flowchart contains messages, decision blocks and
system signals .
25
February 200 I
EN 00.00.02
TRE - 663
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Purpose
After reading this section, you should be able to achieve the following:
1.) Understand the call process from off hook to call completion.
2.) Trace the call in progress using the logic flow chart.
•
•
26
February 2001
EN 00.00.02
TRE - 664
TRE - 665
TRE - 666
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Verify User's TNIISLM
Yes
Valid
Yes
Is
No
Max
SLM
Reached
No
Add TNI to
inmate's
SLM list
Yes
Yes
SIT Tone - 170
The number you
dialed - 213
Inmates
Ust?
No
The number you
dialed - 213
•
I'm sorry, but your
number has not been
To try your number
Cannot be
again, please hang up
first - 252
processed - 215
Cannot be
processed - 215
I'm sorry, but your
number has not been
To try your number
again. please hang up
first - 252
Your number had an
invalid number of
digits - 234
Busy Tone - 155
SIT Tone - 170
Pause - 160
Please hang up first
before placing another
call- 306
Busy Tone - 155
SIT Tone - 170
You must always dial a zero
before your number - 250
Please hang up first
Your call will be placed as a
collect call - 201
before placing another
call- 306
•
To place a collect call. dial
zero plus the number you are
calling - 256
Pause - 160
SIT Tone - 170
For Spanish language
messages, dial four - 276
For Spanish language
messages, dial four - 277
29
EN 00.00.02
February 2001
TRE - 667
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Record Name
Your call will be
placed as a collect
call- 201
Name playback
(lXOO)
State your name,
now - 236
Your name has
Record name
•
(IXOO)
been changed to
244
Your name has
been recorded as
Record name again
238
(lXOO)
Name playback
State your name
again - 242
(lXOO)
Yes
Yes
If you want to record
your name again, dial
two at any time - 240
again?
No
No
One moment, while
your call is being
processed - 246
•
30
February 200 I
EN 00.00.02
TRE - 668
AT&T Inmate Systems
•
Digital ACP ® Voice Prompting
Incorrect Number of PIN Digits
Blocked PIN
The number that you
dialed - 213
I'm sorry, your ID code is
not accepted - 373
The number you dialed
213
Pause - 160
On Hook - 175
Busy Tone - 155
•
Please hang up first before
Cannot be
processed - 215
placing another call - 306
Your number had
an invalid number
of digits - 234
SIT Tone - 170
Try your number
again, please hang
up first - 252
Pause - 160
Please bang up first before
placing another call - 306
Busy Tone - 155
Your number had
an invalid number
. - 234
To try your number
again, please hang
up fmt - 252
Cannot be
processed - 215
To enter ID code
again, hang up first
375
SIT Tone - 170
Pause - 160
Busy Tone - 155
Busy Tone - 155
I'm sorry, your ID
code is not
•
accepted - 373
Busy Tone - 155
Pause - 160
To enter ID code
again, hang up first
375
31
February 2001
EN 00.00.02
TRE - 669
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Blocked TNI
Yes
Yes
Access to your number has
been blocked by the
telephone company
257
Your number does not
permit collect calls
229
Access to your number has
been blocked by a billing
and collection company
261
Your number does not
permit collect calls
Access to your number has
been blocked by your
facility administration
The number you dialed
is not permitted
229
No
Blocked by
facility
admin?
•
Yes
232
263
Yes
Access to your number has
been blocked by the party
you called
269
The number you dialed
is not permitted
232
Second
Access blocked by
2XX
Please hang up fust
before placing
Busy Tone - 155
First
another call - 306
No
Please hang up first
before placing
another call - 306
Access blocked by
2XX
SIT Tone - 170
Goonhook-175
Pause - 160
•
32
EN 00.00.02
February 200 I
TRE - 670
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Call Completion
Progress tone generated
This call is
from-3I8
during dial out.
An inmate at a
correctional
facility - 323
Yes
Has X
No
Note:
X = random ti me
(2 t09 min.)
No
Time limit
(-1 min.)
passed?
Yes
No
Talk Path
Completed
Yes
installed?
Vou have one more
•
minute for your
call - 336
You have only
fifteen seconds left
338
Your call could not be completed at
this time - 349
Talk Path
Please wait until a later time, before
trying your call again -308
Disconnected
Your call has been
terminated - 352
Optional Feature
Phone on hook
No
¥our caU could not be completed at
this time - 349
•
Please wait until a later time, before
trying your call again -308
Busy Tone - 155
Pause - 160
33
EN 00.00.02
February 200 1
TRE - 671
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Call Completion
This call is
from-318
An inmate at
a correctional
facility - 323
Pause - 160
No
No
Time limit
(-I min,)
Yes
Note:
X = random time
(2109 min.)
Hello - 320
No
You have a collect
call from - 322
•
You have one more
minute for your
call- 336
You have only
fifteen seconds left
No
An inmate at a
338
correctional facility
4986
Talk Path
Disconnected
If you will pay, dial
three, now - 324
Your call has been
Connect, start timing
tenninated - 352
Yes
Go ahead - 334
No
If you will not
pay, please hang
If you will pay, dial three,
now - 324
up now - 330
To accept your call. from
326
Timeout
Dial three at the pause - 328
•
Dial Tone - 150
34
EN 00,00.02
February 2001
TRE - 672
AT&T Inmate Systems
Digital ACP ® Voice Prompting
;:~:';~:~:!:~:-:;':;:!:-:;':;:!:!:-:~:;:f-:~:;:!:-:;':;':!:E;':;:!:-::-:;':!:!:-:~:!:!:-:;.:;.:!:~:-:;.:!:;:-::-:;.:::~:-:;.:;:~:-::.:;.:!:~:-:;.:!:~:-::-:!:n:-:n:;:-:;.:;:;:;:.:;:;:;:;:;;:;:~:;;.:;:;:~;.:;:;:;:;:-:;:!:i:;;:!:~:;;:;:!:~:-:;':;:!:-:::!:!:!:-:;':;:~:;E!:-::-:Jo:;:E;:
•
No Answer Messages
.' "
,
, ,: .::
.:
::
.
,
;
:
~1
-~
I
SIT Tone - 170
,
I
I'm sorry but no
ringback signal was
detected - 344
Please wait until a later
time before trying your
call again - 308
Yes
No ringback?
•
I'm sorry but no
ringback signal was
detected - 344
Please wait until a later
time before trying your
call again - 308
Busy Tone - 155
SIT Tone - 170
To place the next caU,
please hang up first
260
To place the next call,
please hang up first
260
I'm sorry, there is a
busy signal at this time
264
busy signal at this time
264
~
No
I
SIT Tone - 170
Yes
~
I
Please try your number
again at a later time
262
Busy?
•
Please hang up first
before placing another
cal1-306
I'm sorry, there is a
Please try your number
again at a later time
262
Busy Tone - 155
SIT Tone - 170
~
Please hang up first
before placing another
call - 306
---.
No
r
r
I
SIT Tone - 170
Yes
Intercept
Operator?
i
I
The number you dialed
is not a working
number - 214
Please hang up first
before placing another
call-306
The number you dialed
is not a working
number- 214
Please hang up first
before placing another
call - 306
Busy Tone - 155
SIT Tone - 170
r-+
t
I
No
r
I
SIT Tone - 170
Yes
No answer?
•
Please try your number
again at a later time
262
r
...
Your party had not
answered - 342
Please try your number
again at a later time
262
Busy Tone - 155
SIT Tone - 170
Please hang up first
before placing another
call- 306
Please hang up first
before placing another
call- 306
No
Pause - 160
SIT Tone - 170
Go on Hook - 175
i
I
Your party had not
answered - 342
Busy Tone - 155
~
...
35
EN 00.00.02
February 200 I
TRE - 673
AT&T Inmate Systems
Digital ACP ® Voice Prompting
•
Voice Message
Library
•
•
This section presents each voice messages used in the ACP ® call process.
The voice messages are listed by number in English and Spanish with the
associated text description .
36
February 2001
EN 00.00.02
TRE - 674
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Purpose
After reading this section, you should be able to achieve the
following:
1) Understand each voice message contents.
2) Find the meaning of each voice message .
•
•
37
February 200 1
EN 00.00.02
TRE - 675
TRE - 676
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Name Recording and Playback
ENGL
ID#
SPAN
ID#
235
236
237
238
240
241
242
243
244
245
246
247
435
436
437
438
440
441
442
443
444
445
446
447
MESSAGE TEXT (ENGLISH)
State your name and identification number, NOW.
State YOUR name, NOW:
State the PARTY'S name you are calling, NOW:
Your name has been recorded as ..
If you want to record you name again, dial "TWO" at any time.
To record your party's name again, dial "THREE" at any time.
State your name again:
State your party's name again, now:
Your name has been changed to:
Your party's name has been changed to:
One moment, while your call is being processed.
To record your party's name again, dial "ONE" at any time.
Call Processing & Blocking Messages
e
ENGL
ID
#
SPAN
ID#
248
249
250
251
252
253
254
255
256
257
258
259
448
449
450
451
452
453
454
455
456
457#
458
459
260
261
262
263
264
265
460
461#
462
463#
464
465
•
MESSAGE TEXT (ENGLISH)
Processing of your call is continuing.
One moment, while your number is being validated.
You must always dial a "zero" before your number.
Your Debit Account cannot be found.
To try your number again, please hang up first.
To enter your Code again, please hang up first.
Please dial ZERO plus the number you are calling, NOW:
This Debit Account is either empty, or is already in use.
To place a collect call, dial ZERO plus the number you are calling.
Access to your number has been blocked by the Telephone Company.
For more calling instructions, dial "STAR".
<For more calling instructions, dial "STAR".>
NOTE: 259 is in Spanish and 459 is in English.
To place the next call, please hang up first.
Access to your number has been blocked by a Billing and Collection Company.
Please try your number again at later time.
Access to your number has been blocked by your facility administrator.
I'm sorry, there is a busy signal at this time.
Network conditions have prevented completion of your call.
39
February 200 I
EN 00.00.02
TRE - 677
AT&T Inmate Systems
.266
267
268
269
270
271
272
273
274
275
276
277
466#
467#
468
469#
470
471#
472
473
474
475
476
477
278
280
281
282
283
478
480
481
482
483
Digital ACP ® Voice Prompting
This call may be monitored and recorded at any time.
We do this to maintain security and intercept contraband.
Please hang up to make another call.
Access to your number has been blocked by the party you called.
Your call will be processed with additional operator assistance.
Access to your number has been blocked by a long distance carrier.
I'm sorry, but this telephone is temporarily out of service.
One moment, while your Debit Account is being validated.
For more information, or to select a language, dial "STAR".
One moment while your ID Code is being validated.
For Spanish language messages, dial "FOUR".
<For Spanish language messages, dial "FOUR".>
NOTE: 277 is in Spanish and 477 is in English.
For French language messages, dial "FIVE".
For German language messages, dial "SIX".
This call requires operator assistance, and is restricted to collect.
This is an automated call..
Collect..
Information Messages
.NGL
ID#
SPAN
ID#
284
285
286
288
289
290
291
292
293
294
295
296
297
298
299
484
485
486
488
489
490
491#
492#
493#
494#
495#
496#
497#
498#
499#
•
MESSAGE TEXT (ENGLISH)
.. from ..
.. as a collect call.
.. with no collect charges.
.. that is restricted to collect.
To accept your call ..
.. requiring operator assistance.
To get the charge for this call dial zero.
This is a local collect call.
This is a long distance collect call.
The charge is ..
The charge will not exceed..
.. for the first minute, and ..
.. Dollars, and ..
.. Cents ..
.. for each additional minute.
40
EN 00.00.02
February 2001
TRE - 678
AT&T Inmate Systems
Digital ACP ® Voice Prompting
f:~:-:~:;:~:~~:E!~~:~:~:~:-:~:~:~:~~:!:~:~~:;:;:~:~;:;:EE~:~:~:-:~:;:~:-:;:;:!:~::;:~:~:~;:;:;:-::-:;:;:r-:;:;:~:-:E!:~:-:;':!:~:.:;:~:~:~:-:::!:!!:;:!:;:!;:;:;:~:-:;:;.:;:!;:;:;:!:-:;:;:;:!;:;:;:!:-:;:;:E:·:;:;:~:-:;:;:f:!::;:;:~:-:;:;:;:!:-:lo:;:E;:
•
Network Responses
ENGL
ID#
SPAN
ID#
300
301
302
303
304
305
500
501
502
503
504
505
306
308
310
506
508
510
MESSAGE TEXT (ENGLISH)
The problem you had with your call will be checked.
I'm sorry, but your call cannot be processed.
To try the same call again, please hang up first.
The circuits for handling your number are busy.
Please hang up before trying your call again.
You may dial a different number, now, or retry the same number in a few
minutes.
Please hang up first before placing another call.
Please wait until a later time, before trying your call again.
If you are having trouble accepting this call, please check that your telephone
has BUTTONS, and is set to produce TONES.
Call Completion Messages
ENGL
e
ID#
311
312
313
314
315
316
318
318
319
320
321
322
323
324
325
326
327
328
329
330
•
SPAN
ID#
511
512
513
515
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
MESSAGE TEXT (ENGLISH)
.. no more that GTE or AT&T rates.
.. no more than Bell or AT&T rates.
.. no more than C&P or AT&T rates.
The charges for this call will be ..
.. for a comparable call..
..from a coin phone.
..local call in this area code.
This call is from ..
This call is from an inmate ..
Hello!
You have a collect call FOR ..
You have a collect call FROM ..
.. an inmate at a correctional facility.
If you will PAY, dial THREE, now.
If you will PAY, dial FOUR, now.
To accept your call FROM ..
Your call is FROM ..
.. dial THREE at the pause.
.. dial FOUR at the pause.
If you will NOT PAY, please hang up NOW.
41
February 200 I
EN 00.00.02
TRE - 679
Digital ACP ® Voice Prompting
AT&T Inmate Systems
.331
332
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
, 354
.55
356
357
358
359
360
361
362
363
364
366
368
370
•
531
532
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
566
568
570
This call is foL.
Go ahead with your call.
Go ahead,
You have one more minute to accept this call.
You have one more minute for your call.
You have 30 more seconds to accept this call.
You have onl y fifteen seconds left.
You have only 10 more seconds to accept.
I'm sorry, your call has been refused.
This is a collect call.
Your party has not answered.
This is a collect call.
I'm sorry, but no ringback signal was detected.
To accept your call TO ..
A digit was detected that means your call was refused.
To refuse this call, hang up now.
Acceptance of your caIl was not recei ved.
Your call could not be completed at this time.
Dialing is not permitted during your call.
Please dial "THREE," again, to accept this coIlect call.
Your caIl has been terminated.
I'm sorry, your call was not accepted.
If you want to try the same call again, press the POUND key, now.
Please wait several hours,
This is a second attempt to place a coIlect call from ..
Please wait until a later time ..
To accept this call, do not hang up, and you will be billed.
.. before trying your number again.
If your party was TRYING to accept charges, dial "SEVEN", now.
..to place your call again.
If this call reached a WRONG NUMBER, dial "EIGHT", now.
A network condition occurred that terminated your call.
If this call was answered by a MACHINE, dial "NINE", now.
If this call reached an operator, dial "ZERO", now.
Thank you.
If you do NOT hang up, your call will be connected and you wiIl be billed.
42
February 200 1
EN 00,00,02
TRE - 680
AT&T Inmate Systems
Digital ACP ® Voice Prompting
;:::~!:~:::~X::;:!:-:!:~:!:~!:!:;:~~:~:!:~:~~:~:~:~!:E~E!:;:r~!:!:!:~:~~:!:;:~:-:!:;:;:~~:;:;:~:-:;:;:r~n:~:~::~:!:~~:~:;:~:-:~:;:::;;.:~:!:;:-:::~:;:;:-:;:;:;:~!:~:!:;:-:;:;:;:-: ;:;:;:;X;':;:;;":;':;:;:;X;:;:;:;;':;:::;::;':f:;:.:;':;:;:;;:;.:;:;:;;:
•
•
IDC and PIN Number Controls
ENGL
ID#
SPAN
ID#
371
372
373
374
375
376
377
378
379
380
571
572
573
574
575
576
577
578
579
580
381
382
581
582
383
384
385
386
387
388
389
390
391
392
583
584
585
586
587
588
589
590
591
592
393
394
593
594
•
MESSAGE TEXT (ENGLISH)
Please dial your identification code, now:
Your ID Code is accepted.
I'm sorry, your ID Code is NOT accepted.
You may dial a number authorized by your counselor, now.
To enter your ID Code again, hang up first.
To check that your ID Code is valid, please ask your counselor.
You must enter your inmate ID Code first.
I'm sorry, but your number has not been authorized.
A valid ID Code must be entered before dialing a telephone number.
To check the "Speed Index" for your authorized numbers, please ask your
counselor.
You may dial another number, now.
To select an authorized number to call, you may enter just the "Speed Index"
for that number, followed by the "Pound" key.
Please dial your inmate identification code, now
I'm sorry, but this number is temporarily restricted.
You may have reached this number too often .
A call to this number will be allowed after the restriction has been removed.
To pay for calls with your Debit Account, dial "8".
Please dial your Debit Account code.
This call will be paid from your Debit Account.
You must enter your Debit Account, now.
Then enter your Debit Account code as requested.
Dial "ZERO" "ONE" plus the country code, city code, and the number of
your International Party.
To open or add to a Debit Account, ask your facility administrator.
You Debit Account Code is accepted.
43
February 2001
EN 00.00.02
TRE - 681
Digital ACP ® Voice Prompting
AT&T Inmate Systems
•
Index
•
•
The index is used for quick reference to specific subject matter such as parts of the call
process, tones, codes, signals, and names.
44
February 2001
EN 00.00.02
TRE - 682
AT&T Inmate Systems
Digital ACP ® Voice Prompting
o
.:Iocked PIN 7,30
Blocked TNI 7,31
Busy 20
On hook 4, 26
Optional feature 15, 18
P
Phone on hook 16, 32, 33
PIN 5,26
PIN correct amount of digits 6
PIN verified 7
Play dialed numbers 9, 28, 37
Progress tone 13, 32
C
Call blocked 12
Call busy 20
Call completion 14, 18,32,33
Call could not be completed 16,32, 37
Called party 16
Called party dialed 3 17
Call terminated 13
Collect call 7, 27, 29, 33, 36
Connect, start timing 14, 17,33
R
Record name 10,29,36
Record name again 11
Recording 10, 33
D
Dial 3 18,33
Dial tone 5, 26
Dial zero 7, 27
S
SIT tone 6, 7, 9, 26
SLM9, 10,28
Start of call 4
G
e
T
Talk path completed 14, 17,32,33
Telephone company 11, 31, 36
TNI 8, 27
TNI valid 9
Go off hook 4, 26
Go on hook 13, 34
H
Hang up 18,27
I
U
Incorrect number of PIN digits 6, 30, 36
Initial call setup 4, 26
Intercept operator 21
Invalid number 9, 30, 36
User's ID 5, 7, 26
V
Verify user is SLM 9, 28
Verify user's TNI 28
Verify PIN 7,26,36
Verify TNI 9, 27, 36
N
Name playback 10, 29
No answer 22
No answer messages 20, 34, 36, 37
No ringback 19, 34, 37
Not a working number 11, 34,36
Not answered 34
•
Y
Your number has been blocked 10, 31, 36
45
February 2001
EN 00.00.02
TRE - 683
AT&T Inmate System
•
TOM Administrative Terminal User's Guide
Inmate System
~AT.T
•
T.O.M.
Administrative Terminal User's Guide
•
This material is subject to change without notice. No part of this document may be reproduced, in whole or in part, or
transmitted in any form without the expressed written permission of AT&T
May 2000
Rev.2.0
TRE - 684
AT&T Inmate System
•
TOM Administrative Terminal User's Guide
Table of Contents
INTRODUCTION
3
I.
View Current Phone Status
4-5
II.
Enter Nwnbers to Record (Record & Privilege Manager)
6-8
III.
Report Generator
9-21
lV.
Dial Plan Manager
22-24
V.
HearSaY'" Recording Playback
24
Appendix A
Call Detail Record - End Code Definitions
25-31
•
•
Rev.2.0
May 2000
2
TRE - 685
AT&T Inmate System
•
TOM Administrative Tenninal User's Guide
INTRODUCTION
WHO SHOULD READ THIS MANUAL
This manual is designed for technical personnel who are administrating the inmate phone system.
•
Site personnel
•
Administrators
•
Investigators
OVERVIEW
The TELEQUIP On-site Manager (TOWM), HEARSAYTM, and Digital Automated Call Processor (Digital
ACP® ) were developed as a "hands-on" approach to the inmate telephone system. TOMTM is an
administrative system, which connects via high-speed Local Area Network (LAN), to the correctional
facility's Digital ACP®·
• • The TOMTM assists the administrative site personnel with generating reports, PIN editing, blocking
numbers, viewing current phone status, playing back recordings and setting alert numbers.
•
The HEARSAyrM monitors and records inmate conversations.
•
The Digital ACP® processes inmate telephone calls.
• MONITORING PHONETM is part ofthe HEARSAYTM product for monitoring, recording and visually
displaying the inmate's PIN, dialed number and phone rD.
•
Note: The Digital ACP® can operate without any of the other products listed above. Each site
configuration is unique .
•
May 2000
Rev.2.0
3
TRE - 686
AT&T Inmate System
TOM Administrative Tenninal User's Guide
View Current Phone Status
To view the phone status in real time, you may double click the "View Current Phone Status" icon on the
TOM administrative terminal. Once opened, the View Current Phone Status window will appear on the
screen. See Figure 1.
1.0:00
09:53
~Z~-)O(
1.22-00
.,H
~Z3-00
PEllA-Loll.
1.24->0<
BMPTY
1--
...
Ct/RRBNT
ZOZ
ZO?
ZS4
ZC1
Loc:o..l C1t
0
Loca.l
OSZ
208-XX
2091-00
2:1.0-03
2:1..1.-00
21.3->0<
2:1.4-00
Zl.S-XX
Z~6-~O
Z~7-XX
OC1
OOZ
DUX Z
ZCS
Z"O
3AZ
3B1
3CZ
3D6
1
...
PHONK STATUS v1.
Local. C1t
12345678
..... +
Phon. On Hook
09:52: Phone On Hook
1.0:00 CONNBCT/TALK
09:1.5 Phone On Hoole
00;06 Phon. On Hook
00:06 Phone On Hook.
09:42 Phon. On Hook
09:53 Phone On Hook:
00:06 Phon. On Hook:
07/29/98
ZlO
091:58 CONNECT/TALK
00:06 Phone On Hook
00:06 Phone On Hook
07:2.1 Phone On Hook
09:09 Phone On Hook
09:56 CONNBCT/TALK
09:53 Phone On Hook
00:06 Phon. On Hook
09:29 Phone On Hook:
09:58 N8TWORK ACTIVE
09:3.1 Phone On Hook
C1t
00:06 Phone On Hook
09:43 Phone On Hook
Phone On Hook.
CONWllCT/TALK
Phon. On Hook
CONNECT/TALK
Local
Figure 1
View Current Phone Status Window
A = ACP and phone ill
i.e. (209) 2=ACP number
09=phone ID
B = Trunk ill (The trunk number that the ACP uses to dial the number)
C = Phone [Zone Location) (Phone location)
D = Search for (By any ofthe information displayed on the screen. i.e. Phone, Trunk, PIN)
E = Inmate ill Code (PIN) if applicable
F = Call type (Local or Long distance, collect or debit)
G= TNI (Terminating Number Identification) Also known as Dialed Number.
"#" at the beginning and end of the TNI indicates this call is privileged (Not subject to monitoring or
recording.)
,,*" at the beginning and end of the TNI indicates this call is an alert call and is being recorded.
•
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•
TOM Administrative Tenninal User's Guide
H = Begin time of the caIl
I = Current status ofthe call
J = Call Duration
K = Line selected by the user via the mouse
Note: When the screen is updated, it returns to the top line of the View Current Phone Status. In order to
view a line or area you must enter a search "D" or highlight the line by using the mouse.
The main window (Figure 1) is a real-time picture of the activities taking place on the phone system. From
the Options tab at the top of the window, you have the foIlowing options:
Options:
Update: This option allows you to choose how often the screen should be updated (5, 7, 10,
15 or 30 seconds)
RefresblRescan: This option aIlows you to update the screen immediately.
Exit: This option allows you to exit the View Current Phone Status program.
•
•
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ell.
TOM Administrative Terminal User's Guide
Enter Numbers to Record (Record & Privilege Manager)
From the TOM main screen, you may double click the "Enter Numbers to Record" icon to gain access to the
Record and Privilege Manager. This program allows you to record calls from a specific Offender ID (OLD,
or inmate ID#), Terminating Number Identification (TNI, number called), or Phone. You can also specify
the OID, TNI, and Phone that are not to be recorded. i.e. Attorney calls (privileged calls).
For both the Record and Privilege tabs shown in Figure 2 (items A and B), you may create new alerts,
change, remove, or apply (items C, D, E, and F).
A.
Record:
Records selected call activities by OID, TNI, or Phone.
B.
Privilege:
Marks as Do Not Record (i.e. Attorney numbers) by OID, TNI, or Phone.
C.
New:
Adds new items.
D.
Change:
Alters an existing item.
E.
Remove:
Deletes from recording status line.
F.
Apply:
Sends information to the ACP after ail entries are completed.
GJ
e
Record and Privilege Manager Window
Figure 2
•
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TOM Administrative Terminal User's Guide
If you press the New tab (item C in Figure 2), a new window will pop up onto the screen. See
Figure 3. If you're in the OID tab, you may enter an inmate's PIN # (OID) that you want to record
(or that you don't want to record if you're in the Privilege screen) and press Save.
If you have clicked the TNI or Phone Tab, you may enter new TNIs or Phones in the space provided
in the "New" window seen in Figure 3.
"New" Window
D.
Figure 3
If you want to change a PIN number (OID), TN!, or Phone, simply highlight the item you wish to
change in the Record and Privileged Manager main window, and click the Change tab (item D in
Figure 2). See Figure 4. Once you've changed the number, click Save.
•
"Change" Window
E.
•
Figure 4
If you want to remove a PIN number (OID), TNI, or Phone from the Record and Privileged Manager
list, simply highlight the item you wish to remove in the Record and Privileged Manager main
window, and click the Remove tab (item E in Figure 2). See Figure 5. To remove the item from the
list, click Remove.
"Remove" Window
Figure 5
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May 2000
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TOM Administrative TenninaI User's Guide
After you've completed the additions, changes, or removals of PIN numbers (OID's), TNI's, or
Phones, you should click Apply (item F in Figure 2). By clicking Apply, you are sending the new
Recording and Privilege information to the ACP. At that time, the ACP will be updated and will
regulate the ability to record or not record the PIN numbers (OID's), TNl's, or Phones as specified.
To exit the Record and Privilege Manager program, click the X in the upper right hand corner.
III.
Report Generator
Access the CDR Report Generator by clicking the Reports icon on the TOM's main screen or
desktop. Tabs delineate the CDR Report Generator report options. The report for Can Detail will be
the first tab/screen displayed. See Figure 6 .
•
Call Detail Report Screen
Figure 6
•
Rev.2.0
May 2000
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TRE - 691
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•
TOM Administrative Terminal User's Guide
Call Detail Report
The Call Detail Report displays all call detail data for the criteria selected by the user. See Figure 7.
•
The following fields are available for customizing the report:
List of Digital ACP unit(s) from which the report will be generated.
Individual Digital ACP unit(s) from which call record detail is not
desired.
C. Start Date - End Date: Enter the Begin and End Dates required for the report. The "/" will
appear automatically, i.e. enter 071301 and it will be displayed
07113/2001.
Click this box if the call detail displayed is only needed from a certain
D. Use Time Range:
time period. Otherwise, all calls for the day will display.
E. Time of Day:
If the "Use Time Range" option was selected. Enter the time period
desired in this field. Dropdown boxes are available for quick
selection.
Enter the Inmate PIN number to display all calls placed by that PIN.
F. Inmate PIN:
G. Phone Location/Zone: Enter the Phone ID/Zone to display all calls placed by that
Phone/Zone. (i.e. POD1)
H. Dialed Number:
Enter the destination number dialed (TNI) to display all calls placed by
the number (TNI).
I. Report Type:
Defines which call types will be displayed. A dropdown box is
available for selection.
A. Site(s) Included:
B. Not Included:
•
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TRE - 692
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•
J. Report Level:
K. TrunkID:
L. Phone ID:
M. Sort By:
•
N. Preview Report:
O. Exit:
TOM Administrative Tenninal User's Guide
AII- Infonnation of all call types (default) .
Collect - The called party has accepted the charges.
Debit - Prepaid phone charges.
Free - Free calls (i.e. calls to attorney phone numbers).
Defines the status of the call at completion. A dropdown box is
available for selection.
AII- Infonnation about every call attempted (default).
Answer - Calls answered by the called party, but not accepted by
positive answer supervision (DTMF).
Completed - Calls that were answered, accepted, and proceeded long
enough to imply a conversation occurred and then tenninated.
Dial- All the events that took place in the phone system that did not
reach the network.
Network - The dial events that reached the network, but were not
answered.
Enter the ID for the outbound trunk to display all calls placed out that
trunk.
The location of the phone, i.e. Ll02. L= the last character in the site
ID. Refer to your site name for the correct letter.
Click the desired sort option.
DatelTime - All calls will be listed in date order and by the time of
day.
Trunk - All calls will be listed in order by the trunk on which the call
was placed. Date and time will further sort the records.
PIN - All calls will be listed in ascending order by the PIN placing the
call. Date and time will further sort the records.
TNI - All calls will be list in ascending order by the destination
number or TNI. Date and time will further sort the records.
Click the Preview Report button to process and display the report.
Click the Exit button to close the CDR Report Generator program.
Enter all the data needed to accomplish the call detail report in the fields as described above. Click
the "Preview Report" button when finished. The report will process and automatically display on
your screen. Reports requesting more then 30 days data may take several minutes to process. Figure
8 shows a sample call detail report with no special query options selected. Print the report by
clicking the printer icon displayed at the top of the report .
•
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TOM Administrative Tenninal User's Guide
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•
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Figure 8
While displaying the report, the "Print Preview" toolbar allows the user to navigate through the
report. See Figure 9.
First
Paee
Print
Previous
Go To
Next
Pa!!e
Paee
Paee
Last
Paee
Print Preview Tool Bar
•
Rev.2 .0
View
Close
Size
Preview
Figure 9
May 2000
II
TRE - 694
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•
TOM Administrative Terminal User's Guide
Close the report preview by clicking the "Close Preview" icon on the toolbar or by clicking the "X"
in the top right hand comer of the display. The file will not be saved at this point.
Daily Call Activity
The Daily Call Activity report displays a summary of the total number of calls, total call minutes,
and total revenue generated for the specified date range. Ifmultiple days are selected a total of all
days selected is calculated along with the averages for that date range. See Figure 10 .
•
Daily Call Activity
Figure 10
Create the Daily Call Activity report by entering the desired date range and click the "Preview
Report" button. Additionally, the report may be displayed in detail or in graphical format or both.
Simply click next to the desired option. A sample report is shown in Figure II .
•
May 2000
Rev.2.0
12
TRE - 695
AT&T Inmate System
•
TOM Administrative Tenninal User's Guide
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•
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Figure 11
Use the "Print Preview" toolbar to navigate through the report. See Figure 4.
Hourly Call Activity
Hourly Cal1 Activity displays a matrix of the total number of cal1s placed each hour per day for the
entire facility. An average for al1 days is also provided. See Figure 12 .
•
Hourly Cal1 Activity
Figure 12
Rev.2.0
May 2000
13
TRE - 696
AT&T Inmate System
•
TOM Administrative Terminal User's Guide
Create the Hourly Call Activity report by entering the desired date range and click the "Preview
Report" button. Additionally, the report may be displayed in detail or in graphical fonnat or both.
Simply click next to the desired option. A sample report is shown in Figure 13.
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Use the "Print Preview" toolbar to navigate through the report. See Figure 4.
Call Durations
The Call Durations report provides a summary of the total number of calls by range of call duration.
See Figure 14 .
•
Call Durations
Figure 14
May 2000
Rev.2.0
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TRE - 697
TOM Administrative Terminal User's Guide
AT&T Inmate System
•
Create the Call Durations report by entering the desired date range and click the "Preview Report"
button. Additionally, the report may be displayed in detail or in graphical format or both. Simply
click next to the desired option. A sample report is shown in Figure 15 .
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Calls By Call Type
The Calls by Call Type report displays the total number of calls per call type i.e., Local, IntraLataIntraState, InterLata-IntraState, InterLata-InterState, and International for a specified date range.
See Figure 16 .
•
May 2000
Rev.2.0
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TRE - 698
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TOM Administrative Tenninal User's Guide
•
Call Types
•
Figure 16
Create the Call Types report by entering the desired date range and click the "Preview Report"
button. Additionally, the report may be displayed in detail or in graphical format or both. Simply
click next to the desired option. A sample report is shown in Figure 17 .
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Figure 17
Rev.2.0
May 2000
16
TRE - 699
AT&T Inmate System
•
TOM Administrative Terminal User's Guide
Use the "Print Preview" toolbar to navigate through the report. See Figure 4 .
TNI InfOrmation
The TNI Information report displays a frequently called number or velocity list. The user specifies
the minimum number of calls placed within the time period. The TNI will be displayed with the
total number of calls, total minutes, and total charges incurred. The report can be sorted by any of
these three options. Further, once the list is created the user may choose to display call detail for one
of the TNI's in the list. This report can be sorted by Date, Duration, or Total Charges. See Figure
18 .
•
Figure 18
TNI Information
The following fields are available for customizing the report:
A. Start Date and End Date:
B. # of CalIstrNI Velocity:
c.
Sort By:
D. Preview Report:
•
E. Update:
Enter the date range desired for the report.
Enter the minimum frequency ofthe TN!. Example: Ifthe
User wants to view all TNI's that were called 10 times or more,
enter lOin this field.
Select how the report should be sorted. Descending order by
total charges incurred, Descending order by total duration
incurred, or Descending order by total number of calls.
Click the Preview Report button to process and display the
TNI Velocity report.
When clicked, the update button will place the TNI's that are ]
reported in the TNI Velocity report in the TNI Details field.
The user can then run call detail on those TNI's.
May 2000
Rev.2.0
17
TRE - 700
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•
TOM Administrative Tenninal User's Guide
F. TNI DetailsrrNI List:
A list ofTNI's (view using the dropdown list) that were
generated when the TNI Velocity report was processed.
Sort the TNI Call Detail report by ascending date order,
descending order by duration, or descending order by total
charge per call incurred.
Click the Preview Report button to process and display the
TNI Call Detail report.
Click the Exit button to close the CDR Report Generator
Program.
G. Sort By:
H. Preview Report:
I. Exit:
A sample TNI Velocity report with a frequency of 10 calls or more and sorted by total charges
incurred is shown in Figure 19.
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TNI Velocity Report
A sample TNI Call Detail Report of a number found in the TNI Velocity report sorted by date is
shown in Figure 20 .
•
May 2000
Rev.2.0
18
TRE - 701
AT&T Itunale Syslem
•
TOM Administrative Tennina1 User's Guide
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•
•
Figure 20
Phone Summary
The Phone Summary report displays the total number of calls, total number of minutes, total
attempts, total answered, and total connected calls by phone by Digital ACP. See Figure 21.
Phone Summary
Figure 21
Rev.2.0
May 2000
19
TRE - 702
AT&T Inmate System
•
TOM Administrative Tenninal User's Guide
Create the Phone Summary report by entering the desired date range and click the "Preview Report"
button. A sample report is shown in Figure 22.
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•
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Use the "Print Preview" toolbar to navigate through the report. See Figure 4 .
End Code Summary
The End Code Summary report displays the End Codes that have occurred for all completed calls for
the data range specified. Additionally, the total number of calls and total number of minutes
accumulated is also displayed for each end code. See Figure 23 .
End Code Snmmary
Figure 23
Rev.2.0
May 2000
20
TRE - 703
AT&T Inmate System
•
TOM Administrative Tenninal User's Guide
Create the End Code Summary report by entering the desired date range and click the "Preview
Report" button. A sample report is shown in Figure 24 .
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•
IV.
Figure 24
Use the "Print Preview" toolbar to navigate through the report. See Figure 4.
Dial Plan Manager
The Dial Plan Manager is used to block, unblock, or edit blocked numbers. From the TOM administrative
terminal's main screen, double click the Dial Plan Manager. To view the list of blocked and unblocked
numbers, click the Actions menu, then Block, then Block List. See Figure 25. Hot keys are also available
in the Dial Plan Manager .
•
May 2000
Rev.2.0
21
TRE - 704
TOM Administrative Terminal User's Guide
AT&T Inmate System
•
Figure 25
Dial Plan Manager
•
•
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•
TOM Administrative Terminal User's Guide
Under the Actions menu, the following functions are available. See Figure 26 .
•
Block TNI:
Unblock TNI:
Delete:
Refresh Block List:
Search for TNI:
NextTNI:
Enables the administrator to block all calls to a specific number (TNI).
Unblocks a TN!.
Deletes a TNI from the Block Number List.
Updates the screen. This must be executed to update the screen when a block or
unblock is initiated.
Finds a specific TN!.
Proceeds to the next TNI.
(For Allow, Exempt, and Free options contact your service provider.)
Note: The Temporary BLOCK list is where the user information is stored and can be modified.
The Permanent BLOCK list cannot be modified. This is used by the billing company.
•
May 2000
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TRE - 706
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TOM Administrative Terminal User's Guide
•
To enter a new blocked number, simply click Block List under the Actions menu, then click Block TN!. A
window will appear on the screen prompting you to enter the new TNI to block. See Figure 27. Similar
windows will appear with Unblock TNI, Delete TNI, and Search for TNI.
Figure 27
Block TNI
v.
•
HearSay Recording Playback
To play back HearSay recordings of inmate conversations, simply double click the HearSay PlayBack icon
from the TOM's main screen. Instructions for this program are available in the TELEQUIP HearSay
Recording User's Guide which is separate from this manual.
•
Rev.2.0
May 2000
24
TRE - 707
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•
APPENDIX A
•
CALL DETAIL RECORD
END CODE DEFINITIONS
•
May 2000
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TRE - 708
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•
TOM Administrative Terminal User's Guide
Overview
Call detail records are created and stored on each Digital ACP system. Within these records lies specific
codes developed to track the progress of each inmate call. Two of these CDR parameters are of particular
interest to users ofthe administrative reports created by the TELEQUIP Report Program. The first
parameter is the Begin Code which is also known as the Verify Phone Number (VPN) Code. Second is the
End Code.or Terminate Code.
The Begin Code or VPN Code describes a broad, internal evaluation of the number dialed (TNI) against a
large set of parameters within the Digital ACP. The Begin Code also reports ifthe TN! is found in the
Validation Buffer and blocked, if the TNI is found in the Activity Guard Buffer and blocked, or ifthe TN!
was found in the Blocked Number file created from the TOM Administrative Terminal. The Begin Code
may also show that a PIN has been refused, or that a Debit Account had insufficient funds. The Begin Code
relies only on the ACP internal databases and managed files for this information.
The End Code or Terminate Code describes a broad range of reasons why each call that reached the network
was terminated, either normally or abnormally. The End Code describes a summary and interpretation
made by the ACP of the most significant event(s) associated with the end ofthe call, and is useful for
reporting and debug purposes. The End Code label is a result of a conclusion based on conditions found by
the ACP Application Program.
BEGIN CODES
This caH is a CoHect Station CaH to a Local TNI Number. This call may have proceeded to reach the
network and be
to a Long Distance or
to reach the network and be
A TN!, or at least the TNI is not local.
for coHect
This call is an Operator Assisted Call to a TNI identified for special non-automated handling. This caH will
not be billed from the ACP CDR
even if it reached the network and was
This caH is a Free CaH to a TNI identified for special automated handling, not
the
party to
dial "3" nor to accept coHect charges. This caH wiH not be biHed from the ACP CDR data, even ifit
reached the network and was
This caH is a CoHect Station CaH to a specific Local TNI identified for special automated handling, not
requiring the caHed party to dial "3" in order to accept coHect charges. This caH may have proceeded to
reach the network and be
for coHect . .
•
Rev.2.0
May 2000
26
TRE - 709
AT&T Inmate System
TOM Administrative Tenninal User's Guide
This call is a Collect
Call to a
Long
Toll, or IntraLATA TNI identified for special
automated handling, not requiring the called party to dial "3" in order to accept collect charges, This call
have
to reach the network and be
for collect
TNI Number, usually
by the mmate dialing a
This call is a Collect Person-to-Person Call to a
"7" before the TNI is dialed, when the feature is installed, This call may have proceeded to reach the
network and be
for collect
This call is a
Person-to-Person Call to a Long Distance, Toll, or IntraLATA TNI Ntnnber, usually
chosen by the imnate dialing a "7" before the TNI is dialed, when the feature is installed, This call may have
to reach the network and be
This
Call, usually chosen by the imnate dialing "8" before the TNI is dialed,
call will be billed from the inmate's
The 3 digits indentifying the Exchange portion of the TNI were expressly disallowed, The call attempt was
blocked.
The TNI was absolutely restricted. The TNI cannot be
was
or unblocked by other means. The call
The ID Code or PIN dialed by an imnate was not found in the database and the call attempt was blocked.
This
to both Debit and Collect accounts.
An International TNI was
that was not
or was expressly blocked and the call attempt was
blocked.
TNI was disallowed
it could be included within a
call attempt was blocked. The TN! could be eIther specifically blocked or
of numbers all of which are blocked.
A technician has dialed a specific sequence of ntnnbers to identify the imnate phone. The Tag Test call does
not continue.
A technician has dialed a specific sequence of numbers to identify the imnate phone and the test failed. The
Test call does not continue.
Rev.2.0
May 2000
27
TRE - 710
AT&T Inmate System
TOM Administrative Terminal User's Guide
was
in the
Buffer, an accumulated list of number temporarily cached as a result of
access to an Online Validation
and database. The call
was blocked.
The class of trunk specified for that type of call cannot lldlllUl<;; the TNI dialed.
blocked.
call attempt was
The TNI dialed was temporarily blocked by repeated attempts that exceeded the Activity Guard parameters,
when the feature is installed. The call
was blocked.
The TNI dialed was not found in the rate table, and could not be handled and properly
Debit
when the feature is installed. The Debit call
was blocked.
The TN! dialed
a charge for the
funds to start
call. The call
•
that exceeded the
the inmate Debit Account, thus
COMPLETED CALL END CODES
1
Normal End
I
The call completed in a normal manner short of the maximum time permitted for the call. The inmate
either hung up first, or a network-originated disconnect signal occurred.
TimeOut End
15
I
The call lasted to the end ofthe maximum time permitted for the call, and the Digital ACP has forced the
call to be disconnected.
Digits End
13
I
The inmate has dialed one or more digits during the completed call, and the Digital ACP has forced the call
to be disconnected. The limiting count is preset in the system.
LoopDrp End
16
I
The completed call experienced one or more loop drops of duration too short to be a normal ending or
network disconnect, and the ACP has forced the call to be disconnected.
Digit-O End
18
I
The inmate has dialed a single "0" digit during the completed call, and the Digital ACP has forced the call
to be disconnected.
3-Way End
24
I
The system has detected a 3-way call attempt, and the ACP has forced the call to be disconnected.
ANSWERED CALL STOP END CODES
•
10
I
Rev.2.0
HangUp Stop
May 2000
28
TRE - 711
AT&T Inmate System
TOM Administrative Terminal User's Guide
The answered cal1 was stopped either by the inmate hanging up his phone or by the network sending a
disconnect loop drop, either before acceptance of a Col1ect call or before expiration of a Debit cal1 "free
time"
The answered Collect cal1 was stopped by the Digital ACP
to be disconnected, after
ACP had detennined that the maximum time programmed for acceptance of the cal1 has been reached
without
Does not
to Debit calls.
cal1 was stopped by the
ACP and forced to be disconnected after the Digital
answered
ACP had detennined that the digit received was not a "3". Also applies to Debit cal1s that are stopped when
.
are detected
' the "free time"
.
The answered cal1 was stopped by the
to be
ACP
The answered cal1 was stopped by the Digital ACP and forced to be disconnected when one or more loop
with a duration too short to be a
event or network disconnect.
An attempt was made to place a col1ect cal1 specifically enabled for passive acceptance, but the answered
cal1 was stopped either by the inmate hanging up his phone or by the network sending a disconnect loop
of the Passive
fixed lO-second "free time"
before
NO ANSWER CALL END CODES
The unanswered
the inmate """"IS'.HIS up
the network
a
The unanswered cal1 was stopped by the Digital ACP and forced to be disconnected after the Digital ACP
detennined that the maximum time programmed for answer of the call had been reached without detecting
the called
kind of answer event
The unanswered cal1 was stopped and forced to be disconnected after the Digital ACP answer supervision
detected a
The cal1 attempt was stopped when answer supervision detected Special Infonnation Tones (SIT) preceding
and
the
call attempt was
the Digital ACP when, after dialing the TNI onto the network, a check for
loop current failed usually due to fraudulent flash hook activity by the inmate, The Digital ACP forces a
disconnect when
.
attempt was
'-',~~"'u
ACP
dial tone
Rev.2.0
May 2000
29
TRE - 712
AT&T Inmate System
TOM Administrative Tenninal User's Guide
•
BLOCKEDA'lT~Mpl~ENDl:(JIJ~:s
Vali(i.tp Blk
23
I
The TN1 dIaled by the mmate did not support collect call billing with reversed charges and the call attempt
was blocked.
Valitlo'NnAno
29
I
The Digital ACP was unable to detect a signal for the online validation port after waiting approximately 15
seconds. The call was not connected.
v;
30
.muut
I
The Digital ACP was unable to nptpc.( a complete DTMF response, val;,!,,; ,n the TN! for call completion,
from the online validation server after W"H111); about 10 seconds. The call was not connected.
V?l;'!o'~ Chk
6
I
The call attempt received an invalid digit string from the online validation server. The call was not
connected.
. Ring
11
I
An inbound ring condition was detected when the Digital ACP
. the c.o. trunk. The call was not
connected.
0
No"
I
liio1ino; the
No loop
twas
on the
i was 4UUlL<OU
: trunk and the.
12
No Dial Tone
I
Normal loop current was detected on the outgoing trunk, but no dial tone was received and the process was
the number.
aborted without r
No R in<,h~"k
4
I
After the Digital ACP dialed the TN!, no ringback signal was detected confirming that the call made its way
to the
puny" CO switch. The call
was disconnected.
20
I
The call was mterrupted and forced to an early termination by an authorized service representative during a
communications session invoking a manual shutdown command.
CONTROLLED EVENTS END CODES
database and was unavailable for use, even
another inmate.
attempt was
the call
either by the Digital ACP timing out, or by the inmate voluntarily
after
ID Code.
The call attempt was terminated either by the Digital ACP timing out, or by the inmate voluntarily
the call
to
code
from the database.
The call attempt was
the call
'-"i~H,uACP
to
Rev.Z.O
timing out, or by the inmate voluntarily
from
call list database.
MayZOOO
30
TRE - 713
AT&T Inmate System
TOM Administrative Terminal User's Guide
CONTROLLED EVENTS END CODES
The call attempt was tenninated either by the Digital ACP timing out, or by the inmate voluntarily
. the call
.
blocked
.
The call attempt was tenninated either by the Digital ACP timing out, or by the inmate voluntarily
. the call
and
after
TNI.
attempt was tennmated in a Debit Account
account has insufficient funds to
the call.
after
The call attempt was blocked because no response was received from the PIN database verifying the PIN or
The call attempt was
match the
status.
not
The call attempt was blocked by the Digital ACP in a PIN application, where the count ofTNIs
accumulated by a Self Learn Mode inmate has reached its maximum limit, and the inmate has dialed yet
another new TNI.
The call attempt was blocked by the Digital ACP in a PIN application, where the total count of completed
the maximum count for that PIN.
The call attempt was blocked by the Digital ACP a PIN application, where the total count of completed
the
.
to a
has
•
May 2000
Rev.2.0
31
TRE - 714
AT&T Inmate System
•
Operating the U1D Client
Inmate System
ATs.T
•
UID Client
PIN Management System
•
This material is subject to change without notice. No part of this document may be
reproduced, in whole or in part or transmitted in any form without the expressed written
permission of AT&T.
March 2000
Rev.5.0
TRE - 715
AT&T Inmate System
•
Operating the UID Client
Table of Contents
1.
II.
m.
IV.
•
V.
VI.
VII.
Vm.
Operating the UID Client - ID Codes
I-I. Adding ID Codes
1-2. Editing ID Codes
1-3. Removing ID Codes
1-4. Editing Debit Balances
4
5
5
6
Sort & Search Options
II-I. Search for Account
II-2. Sort by ID Code I Last Name
7
7
Operating the UID Manager - TNI's
III-I. Adding New TNI's
III-2. Editing TNI's
III-3. Deleting TNI's
8
9
10
Viewing
IV-I. Active Accounts
IV-2. Inactive Accounts
IV-3. All Accounts
10
11
11
Reporting
V -1. Report Options
V-2. List Accounts Reporting
V-3. Debit Transaction Reporting
V-4. Account Activity Log Reporting
V-5. Report Calendar
11
12
14
15
16
Admin Menu
VI-I. Start Batch Job
VI-2. Logs
17
17
Advanced Option
VII-I. Account Configuration
18
Definitions & Helpful Tips
VI-I. Definitions
VI-2. Helpful Tips
18
19
•
March 2000
Rev.S.O
2
TRE - 716
AT&T Inmate System
•
Operating the UID Client
I.
Operating the UID Client -ID Codes
The UID Client Main Window will appear when the operating system is launched. Shown in Figure 1.
The UID Client is operable by pull down menus, hot keys and control buttons, located on each screen.
Figure 2 shows the
down
menu for all functions of
the UID Client.
•
•
Edit Option
Pull Down Window
Figure 2
March 2000
Rev.S.O
3
TRE - 717
AT&T Inmate System
•
Operating the UID Client
1-1. Adding ID Codes
To Add a new ill Code, select Add ID Code. The infonnation tree to the left of the main window will fade
and the user will enter all necessary infonnation into the fields located to the right of the main window. See
Figure 3.
A. Enter ill Code
B. Enter the Last, First and Middle names (whichever may apply) of the person using the Debit
Account.
CollectlDebit is the second section of this window.
C. Check the Enable box for CollectlDebit.
D. Check the Enable Call List box.
E. In the Balance field, enter the amount of money that will be credited to the account.
Administrative Holds is the third section of this window. If an Administrative hold should be added to an
account proceed with the following:
F. Check the CollectlDebit box (whichever may apply).
G. In the Hold Reason field, enter the necessary infonnation.
The Notes field is the final field in this window.
H. In this field, any special notes on the account may be entered.
When all infonnation is entered, select
a new ill Code (account) will then be created .
•
•
March 2000
Rev.S.O
4
TRE - 718
AT&T Inmate System
•
Operating the DID Client
1-2. Edit ID Code
To Edit an ID Code, simply select Edit ID Code. The same window that appears for adding an ID Code will
appear. See Figure 3. When editing an account, only attributes of the ID Code may be edited. The ID Code
and PIN may not be edited. Listed below are the fields in which the user may edit:
Name (Last, First and Middle)
Collect Enable Box
Debit Enable Box
Enable Call List Box
Administrati ve HoldslReason
Notes
1-3. Remove ID Code
When the Remove ID Code option is selected the user will be prompted by an additional pop up window
that will offer to disable the account, or to completely remove the ID code from the database. Disabling the
ID Code keeps the records on file for historical tracking, but does not delete the record completely. See
Figure 4 .
•
Remove ID Code Window
Figure 4
•
March 2000
Rev.S.O
S
TRE - 719
AT&T Inmate System
•
Operating the UID Client
To delete the ill Code from the database, the user must click the Delete Account button. The system will
prompt the user with a warning that the account information will be unrecoverable if deleted. The user must
type "YES" to delete the record. See Figure 5.
Remove ill CodelDelete Account Window
•
Figure 5
1-4. Edit Balance
In the Edit Balance window the user is able to make adjustments to an account balance. The ill Code,
Name and Current Balance may not be edited. When the balance is changed, the system will show the new
balance. See Figure 6.
A. Add box - Check if you wish to add monies to the account balance.
B. Subtract box - Check if you wish to subtract monies from the account balance.
C. Amount - Enter the amount to be added/subtracted for an account.
Edit Debit Balance Window
Figure 6
6
TRE - 720
AT&T Inmate System
•
Operating the UID Client
II.
Sort & Search Options
II-I. Search
The Search window allows the user to search for a particular account by either ID Code, TNl Number, Last
Name or First Name. See Figure 7.
11-2. Sort by Last Name or ID Code
•
There are two ways in which the information tree may be sorted, by Last Name or by ID Code. The
information tree located to the left of the Main Window in Figure 1 is sorted by ID Code. Figure 8 shows the
information tree sorted by Last Name .
•
Rev.5.0
March 2000
7
TRE - 721
AT&T Inmate System
•
Operating the UID Client
III.
Operating the DID Client - TNl's
III-I. New TNI
The New TNI Window will allow the user to enter new TNI's for an account. The ID Code and Name fields
cannot be edited from this window.
A. TNI Number - Enter the TNI in which the inmate will be calling.
B. Description - In this field the user can enter the name of the party to be called.
C. CollectlDebit - Check the enable box that applies.
D. Administrative HoldslReason - Check the CollectlDebit box, whichever applies and enter the
reason for the Admin. Hold.
E. Notes - In the notes field the user may enter any special notes on an account.
*Note: The Enable Activity Guard and Max Activity Guard fields are not available in the current
version of the UID Client.
•
•
March 2000
Rev.S.O
8
TRE - 722
AT&T Inmate System
•
Operating the UID Client
1II-2. Edit TNI
To Edit a TNI, the user must highlight the TNI (located under the Name in the Information Tree on the left
side of the main window). See Figure 10.
•
Once the user clicks the Edit TNI button, the EDIT TNI window will appear. See Figure 11. In this
window, only the TNI and certain attributes of the TNI may be edited. The ID Code and Name fields may
not be edited .
•
Edit TNI Window
Figure II
Rev.5.D
March 2000
9
TRE - 723
AT&T Inmate System
•
Operating the UID Client
III ·3. Delete TNI
To Delete a TNI, the user must highlight the TNI listed below the Name and PIN number in the information
tree on the main window. See Figure 10. When the Delete TNI option is selected the user will be prompted
by an additional pop up window that will confirm that the user is certain of deleting the account information.
This window is just to reassure that the user will not delete a TN! that does not need to be deleted. This
window will look like the window shown in Figure 11. An additional pop up window will appear to confirm
the deletion. See Figure 12.
Delete Record Window
IV.
Figure 12
Viewing
IV ·1. Active Accounts
•
The user has the option to view the UID List from the Main Window by active accounts only. The user must
click Active Accounts from the View menu. See Figure 13 .
•
Figure 13
View Option· Pull Down Menu
March 2000
Rev.S.O
10
TRE - 724
AT&T Inmate System
•
Operating the UID Client
IV -2. Inactive Accounts
The user may view only the inactive accounts in the UID List from the Main Window by clicking Inactive
Accounts from the View pull down menu. See Figure 13.
IV -3. All Accounts
The third viewing option is to view all accounts in the UID List. Simply click All Accounts from the View
pull down menu. See Figure 13.
v_
Reporting
V-I. Report Options
There are three report options listed under the Reports pull down menu, which the user may administer. See
Figure 14 .
•
Reports Option - Pull Down Menu
Figure 14
•
March 2000
Rev.5.0
11
TRE - 725
AT&T Inmate System
•
Operating the DID Client
Vo2. List Accounts Reporting
The List Accounts Reporting option allows the user to run reports based on various infonnation. See
Figure IS.
A.
B.
C.
D.
E.
F.
G.
H.
I.
I.
K.
Enter ID Codes to be included in report, or
Leave default to (all) to include all ID's in·the report.
Enter the TNIs to be included in report, or
Leave default to (all) to include all TNIs in the report.
To remove an ID Code, highlight the ID Code you wish to remove from the report and click
Remove ID Code button.
To remove a TNI, highlight the TNI you wish to remove from the report and click Remove TNI
button.
To run the report with Active accounts only, check this box. To include all accounts, leave box
without a check.
Check Include Call Lists box if you want the allowed call lists to appear in the report.
Click either Sort by ID, or Sort by Name.
Click Report when ready to run the report, or
Click Cancel to exit report .
•
•
March 2000
Rev.5.0
12
TRE - 726
AT&T Inmate System
•
Operating the UID Client
See Figure 16 for a sample List Accounts Report .
•
Figure 16
List Accounts Report Window
•
March 2000
Rev.S .O
13
TRE - 727
AT&T Inmate System
•
Operating the UID Client
V-3. Debit Transaction Reporting
The Debit Transaction Reporting option allows the user to run debit reports on an account(s) by using
various types of information. See Figure 17.
A. Enter the Starting Date for the report. (see calendar in figure 15)
B. Enter the Ending Date for the report. (see calendar in figure 15)
C. Add ID Code(s) for report.
D. Add TNI(s) for report
Each report may be run by either ID Code or TNI(s). The Reports may be sorted by either ID or Name.
E. Sort by ID
F. Sort by Name
The report may also be as detailed as the user wishes. There are 3 options:
G. Transaction Summary
H. Transaction Detail
1. Excl ude Calls
•
Debit Transaction Reporting Window
•
Rev.5.0
March 2000
14
TRE - 728
AT&T Inmate System
•
Operating the UID Client
V -4_ Account Activity Log Reporting
This report will allow the user to view any activity which has taken place on an account. See Figure 18.
A. Enter Starting Date of report. (see calendar, figure 15)
B. Enter Ending Date of report. (see calendar, figure 15)
C. Select the Log Action desired.
D. Enter one of the foHowing in which to run the report:
1. Machines
2. Users
3. ID Codes
4. TNI(s)
•
Account Activity Log Reporting Window
•
March 2000
Rev.5.0
15
TRE - 729
AT&T Inmate System
•
Operating the UID Client
V-So Reports Calendar
Figure 19 shows the calendar that is used for the Starting Date and Ending Date of each report. The user
may simply select a date from the calendar (A) by clicking on the desired date. The Month/Year buttons at
the top of the window (B) may also be used to select the Starting Date and Ending Date of each report .
•
Figure 19
Report Calendar
•
March 2000
Rev.5.0
16
TRE - 730
AT&T Inmate System
•
Operating the UID Client
VI.
Admin Menu
The Admin pull down menu from the Main Window has two options that the user may choose to perform.
See Figure 20.
•
Admin Cpull down) Menu
Figure 20
VI-i. Start Batch Job
This function enables the user to modify accounts in bulk.
VI-2. Logs
If an error occurs in the backup log, a window will pop up when initializing the DID Client program. The
user should click Logs item under the Admin Menu and go to Backup. A file will appear that contains errors
or confirmations of backups. See Figure 21.
•
Backup Window
Figure 21
Rev.S.O
March 2000
17
TRE - 731
AT&T Inmate System
•
Operating the U1D Client
VII. Advanced Option
V-I. Account Configuration
On most of the Windows throughout the program there is a button located at the bottom of the window
labeled Advanced. This option will administer a window titled Account Configuration. In this window the
user will be able to change the settings for the CollectlDebit Max TNI's. See Figure 22.
*Note: Enable Activity Guard and the Max (limit) Activity Guard are not available in the current DID
Client.
•
VIII. Definitions & Helpful Tips
VIII-1.Definitions
l.
2.
3.
4.
5.
•
6.
TNI - (Terminating Identification Number) Telephone number to be called by inmate.
ID Code - This is the inmates account number.
PIN - A unique number, auto generated by the system, that is added to the end of an ID Code.
Activity Guard - Velocity Controlled. Allows "X" amount of calls to a certain TNI in a specified
time period. **This option is not available at this time.**
Administrative Hold - An Administrative Hold is used by facility administrators to place an active
account on hold. The holds may be placed or lifted at the users discretion.
Information Tree - A field located to the left of the main window of the DID Client in which all
database information is viewed.
March 2000
Rev.S.O
18
TRE - 732
AT&T Inmate System
•
Operating the UID Client
VIII-2.Helpful Hints
I.
The maximum amount of digits that are allowed for an account is 20. This includes the ill Code and
the PIN (if applicable).
2.
It is always advantageous to double-check all data entry. This will make searching for an account as
well as editing accounts much easier.
•
•
March 2000
Rev.5.0
19
TRE - 733
AT&T Inmate System
•
Monitoring Phone User's Guide
Inmate System
ATs.T
•
Monitoring Phone
User's Guide
This material is subject to change without notice. No part of this document may be
reproduced, in whole or in part or transmitted in any form without the expressed written
permission of AT&T
•
REV 4.0
©Copyright TELEQUIP Labs, Inc. - All Rights Reserved
TRE - 734
June 2001
Monitoring Phone User's Guide
AT&T Inmate System
•
Table of contents
I.
Powering On the Monitoring Phone
Pg. 3-4
II.
Silent Seek Mode
Pg. 5-6
ill.
Go To Option
Pg. 6-7
IV.
Monitor Mode
Pg. 7
V.
Muting the Monitoring Phone
Pg.8
VI.
Voice Scan Mode
Pg.8
VII.
Alert Recordings
Pg.8-9
Vill.
Powering Off the Monitoring Phone
Pg.9
•
•
June 2001
REV 3.0
2
TRE - 735
AT&T Inmate System
Monitoring Phone User's Guide
Powering On the Monitoring Phone
To power on the monitoring phone, the user simply presses the round blue button to the left of the
handset See Figure 1. By pressing the blue button, the phone automatically defaults to the
speakerphone. For more privacy, the user may lift the handset The red LED located above the
power button will illuminate.
Power
Button
•
Each time the Monitoring Phone is powered on, a user passcode is required to gain access to
Monitoring Phone functions. Simply enter your four-digit passcode. See Figure 2. A maximum of
20 passcodes is available per system.
•
Input Passcode
Figure 2
June 2001
REV 3.0
3
TRE - 736
Monitoring Phone User's Guide
AT&T Inmate System
•
Once the passcode has been properly entered, the current Digital ACP version will be displayed on
the Lead Crystal Display (LCD) screen as well as the access level allowed by passcode. Access
levels are programmable up to 20 characters. See Figure 3.
Digital
ACP
Version
Access
Level
Digital ACP Version
Figure 3
Invalid Passcode - If your passcode is not accepted, access will be denied. Depress the Goodbye
key to turn off the Monitoring Phone. Begin again by pressing the power button as shown in Figure
1.
•
If no calls are active on the system when the user turns on the Monitoring Phone, a "No Active
Trunks" screen will be displayed. See Figure 4. If trunks are active when the Monitoring Phone is
turned on, the first active call will be displayed in Silent Seek mode. (Note: Active trunk data
displayed is determined by user passcode.)
•
June 2001
REV 3.0
4
TRE - 737
