8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) January 13, 2011

AT&T INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	1-8610	43-1301883
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

208 S. Akard St., Dallas, Texas	75202
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (210) 821-4105

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

AT&T Inc. (AT&T) announces a change to its method of recognizing actuarial gains and losses for pension and other postretirement benefits. Historically AT&T has recognized actuarial gains and losses as a component of Stockholders’ Equity in its consolidated balance sheets on an annual basis, amortizing them into operating results over the average future service period of active employees in these plans. AT&T has elected to immediately recognize actuarial gains and losses in its operating results in the year in which the gains and losses occur. This change will improve transparency in AT&T’s operating results by more quickly recognizing the effects of economic and interest rate trends on plan investments and assumptions.   These gains and losses are measured annually as of December 31st and accordingly will be recorded during the fourth quarter. Additionally, for purposes of calculating the expected return on plan assets, AT&T will no longer use an averaging technique permitted under Generally Accepted Accounting Principles (GAAP) for the market-related value of plan assets but instead will use actual fair value of plan assets. AT&T will apply this change retrospectively, adjusting all prior periods. The cumulative effect of the change on Retained Earnings as of January 1, 2010 (the most recent year for which gains and losses are available) was a decrease of approximately $17.0 billion, with the corresponding increase to Accumulated Other Comprehensive Income.

AT&T’s operating segment results follow internal management reporting which is used for making operating decisions and assessing performance. Historically, total benefit cost was allocated to each segment. As part of this change, the service cost and the amortization of prior service costs, which represent the benefits earned by active employees during the period will continue to be allocated to the segment in which the employee is employed, while interest cost and expected return on assets will now be recorded in the Other segment as those financing activities are managed on a corporate level. The annual recognition of actuarial gains and losses will be reflected in AT&T’s consolidated results only. AT&T has adjusted prior-period segment information to conform to the current period’s presentation.

This change will be effective with the reporting of operating results for the year ended December 31, 2010, with an expected pre-tax, noncash charge of $2.7 billion, or $0.28 per share, in the fourth-quarter. As a convenience to investors who may want to consider the effects of this change in advance of the release of its fourth quarter earnings report, AT&T is providing adjusted quarterly and annual historical segment results for 2008, 2009 and the first three quarters of 2010 in Exhibit 99.2 and 99.3 hereto. For supplemental information on Stockholders’ Equity and debt-to-EBITDA (earnings before interest, income taxes, depreciation and amortization) ratios, please see the investor relations page on our website (www.att.com/investor.relations). The inf ormation provided on our website is not incorporated by reference herein.

CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS

Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this filing based on new information or otherwise.

Item 9.01 Financial Statements and Exhibits.

The following exhibits are filed as part of this report:

(d)          Exhibits

99.1	AT&T Inc. Consolidated Statements of Income - As Adjusted
99.2	AT&T Inc. Annual Segment Results - As Adjusted
99.3	AT&T Inc. Quarterly Segment Results - As Adjusted
99.4	AT&T Inc. Non-GAAP Wireless Reconciliation

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AT&T INC.
Date: January 13, 2011	By: /s/ John J. Stephens   John J. Stephens Senior Vice President and Controller

EX-99.1

AT&T Inc.
Consolidated Statements of Income - As Adjusted
For the Quarters and Nine Months Ended September 30, 2010
Dollars in millions except per share amounts
Unaudited
	For the Quarter Ended										For the Nine
		Mar 31,			Jun 30,			Sep 30,			Months Ended
Operating Revenues
Wireless service		$	12,850		$	13,186		$	13,675		$	39,711
Voice			7,479			7,219			6,973			21,671
Data			6,631			6,848			6,928			20,407
Directory			1,041			1,007			961			3,009
Other			2,529			2,548			3,044			8,121
Total Operating Revenues			30,530			30,808			31,581			92,919
Operating Expenses
Cost of services and sales (exclusive of depreciation       and amortization shown separately below)			12,369			12,420			13,577			38,366
Selling, general and administrative			7,410			7,486			7,700			22,596
Depreciation and amortization			4,780			4,819			4,873			14,472
Total Operating Expenses			24,559			24,725			26,150			75,434
Operating Income			5,971			6,083			5,431			17,485
Interest Expense			765			754			729			2,248
Equity in Net Income of Affiliates			217			195			217			629
Other Income (Expense) - Net			(22	)		723			124			825
Income from Continuing Operations Before Income Taxes			5,401			6,247			5,043			16,691
Income Tax (Benefit) Expense			2,863			2,160			(6,573	)		(1,550	)
Net Income from Continuing Operations			2,538			4,087			11,616			18,241
Income (Loss) from Discontinued Operations, net of tax			2			(5	)		780			777
Net Income			2,540			4,082			12,396			19,018
Less: Net Income Attributable to Noncontrolling Interest			(87	)		(79	)		(77	)		(243	)
Net Income Attributable to AT&T		$	2,453		$	4,003		$	12,319		$	18,775
Basic Earnings Per Share Attributable to AT&T		$	0.42		$	0.68		$	2.08		$	3.18
Diluted Earnings Per Share Attributable to AT&T		$	0.41		$	0.67		$	2.07		$	3.16

AT&T Inc.
Consolidated Statements of Income - As Adjusted
For the Quarters and Year Ended 2009
Dollars in millions except per share amounts
Unaudited
	For the Quarter Ended													For the Year
		Mar 31,			Jun 30,			Sep 30,			Dec 31,			Ended
Operating Revenues
Wireless service		$	11,646		$	11,960		$	12,372		$	12,585		$	48,563
Voice			8,503			8,255			7,943			7,623			32,324
Data			6,282			6,323			6,448			6,508			25,561
Directory			1,249			1,211			1,162			1,102			4,724
Other			2,777			2,865			2,809			2,890			11,341
Total Operating Revenues			30,457			30,614			30,734			30,708			122,513
Operating Expenses
Cost of services and sales (exclusive of depreciation       and amortization shown separately below)			12,177			12,536			12,885			12,973			50,571
Selling, general and administrative			7,760			7,784			7,678			8,205			31,427
Depreciation and amortization			4,836			4,853			4,860			4,966			19,515
Total Operating Expenses			24,773			25,173			25,423			26,144			101,513
Operating Income			5,684			5,441			5,311			4,564			21,000
Interest Expense			846			876			851			795			3,368
Equity in Net Income of Affiliates			137			231			181			185			734
Other Income (Expense) - Net			(15	)		31			29			107			152
Income from Continuing Operations Before Income Taxes			4,960			4,827			4,670			4,061			18,518
Income Tax Expense			1,790			1,590			1,440			1,271			6,091
Net Income from Continuing Operations			3,170			3,237			3,230			2,790			12,427
Income (Loss) from Discontinued Operations, net of tax			(3	)		2			7			14			20
Net Income			3,167			3,239			3,237			2,804			12,447
Less: Net Income Attributable to Noncontrolling Interest			(76	)		(77	)		(82	)		(74	)		(309	)
Net Income Attributable to AT&T		$	3,091		$	3,162		$	3,155		$	2,730		$	12,138
Basic Earnings Per Share Attributable to AT&T		$	0.52		$	0.54		$	0.53		$	0.46		$	2.06
Diluted Earnings Per Share Attributable to AT&T		$	0.52		$	0.53		$	0.53		$	0.46		$	2.05

AT&T Inc.
Consolidated Statements of Income - As Adjusted
For the Quarters and Year Ended 2008
Dollars in millions except per share amounts
Unaudited
	For the Quarter Ended													For the Year
		Mar 31,			Jun 30,			Sep 30,			Dec 31,			Ended
Operating Revenues
Wireless service		$	10,605		$	10,894		$	11,227		$	11,523		$	44,249
Voice			9,690			9,519			9,317			8,796			37,322
Data			5,983			6,066			6,148			6,219			24,416
Directory			1,398			1,383			1,333			1,302			5,416
Other			2,927			2,851			3,177			3,085			12,040
Total Operating Revenues			30,603			30,713			31,202			30,925			123,443
Operating Expenses
Cost of services and sales (exclusive of depreciation       and amortization shown separately below)			12,170			12,073			13,210			19,235			56,688
Selling, general and administrative			7,496			7,063			7,345			26,868			48,772
Depreciation and amortization			4,850			4,906			4,925			4,992			19,673
Total Operating Expenses			24,516			24,042			25,480			51,095			125,133
Operating Income (Loss)			6,087			6,671			5,722			(20,170	)		(1,690	)
Interest Expense			858			849			853			809			3,369
Equity in Net Income of Affiliates			243			212			257			107			819
Other Income (Expense) - Net			91			27			(24	)		(426	)		(332	)
Income (Loss) from Continuing Operations    Before Income Taxes			5,563			6,061			5,102			(21,298	)		(4,572	)
Income Tax (Benefit) Expense			1,972			2,149			1,746			(8,077	)		(2,210	)
Net Income (Loss) from Continuing Operations			3,591			3,912			3,356			(13,221	)		(2,362	)
Income (Loss) from Discontinued Operations, net of tax			(9	)		(6	)		(2	)		15			(2	)
Net Income (Loss)			3,582			3,906			3,354			(13,206	)		(2,364	)
Less: Net Income Attributable to Noncontrolling Interest			(58	)		(71	)		(59	)		(73	)		(261	)
Net Income (Loss) Attributable to AT&T		$	3,524		$	3,835		$	3,295		$	(13,279	)	$	(2,625	)
Basic Earnings Per Share Attributable to AT&T		$	0.59		$	0.65		$	0.56		$	(2.25	)	$	(0.44	)
Diluted Earnings Per Share Attributable to AT&T		$	0.58		$	0.64		$	0.56		$	(2.25	)	$	(0.44	)

EX-99.2

AT&T Inc.
Segment Results for the Period Ended - As Adjusted
Dollars in millions
Unaudited
For the nine months ended September 30, 2010	Wireless		Wireline		Advertising Solutions		Other			Consolidations			Consolidated Results
Total segment operating revenues	$	43,319	$	46,092	$	3,009	$	499		$	-		$	92,919
Operations and support expenses		26,758		30,953		1,957		1,294			-			60,962
Depreciation and amortization		4,776		9,279		393		24			-			14,472
Total segment operating expenses		31,534		40,232		2,350		1,318			-			75,434
Segment operating income (loss)		11,785		5,860		659		(819	)		-			17,485
Interest expense		-		-		-		-			2,248			2,248
Equity in net income of affiliates		14		7		-		608			-			629
Other income (expense) - net		-		-		-		-			825			825
Segment income (loss) before income taxes	$	11,799	$	5,867	$	659	$	(211	)	$	(1,423	)	$	16,691
For the year ended December 31, 2009	Wireless		Wireline		Advertising Solutions		Other			Consolidations			Consolidated Results
Total segment operating revenues	$	53,504	$	63,514	$	4,724	$	771		$	-		$	122,513
Operations and support expenses		33,631		42,352		2,743		3,057			215			81,998
Depreciation and amortization		6,043		12,743		650		79			-			19,515
Total segment operating expenses		39,674		55,095		3,393		3,136			215			101,513
Segment operating income (loss)		13,830		8,419		1,331		(2,365	)		(215	)		21,000
Interest expense		-		-		-		-			3,368			3,368
Equity in net income of affiliates		9		17		-		708			-			734
Other income (expense) - net		-		-		-		-			152			152
Segment income (loss) before income taxes	$	13,839	$	8,436	$	1,331	$	(1,657	)	$	(3,431	)	$	18,518
For the year ended December 31, 2008	Wireless		Wireline		Advertising Solutions		Other			Consolidations			Consolidated Results
Total segment operating revenues	$	49,174	$	67,890	$	5,416	$	963		$	-		$	123,443
Operations and support expenses		31,530		44,817		2,900		1,063			25,150			105,460
Depreciation and amortization		6,025		12,786		789		73			-			19,673
Total segment operating expenses		37,555		57,603		3,689		1,136			25,150			125,133
Segment operating income (loss)		11,619		10,287		1,727		(173	)		(25,150	)		(1,690	)
Interest expense		-		-		-		-			3,369			3,369
Equity in net income of affiliates		6		19		-		793			1			819
Other income (expense) - net		-		-		-		-			(332	)		(332	)
Segment income (loss) before income taxes	$	11,625	$	10,306	$	1,727	$	620		$	(28,850	)	$	(4,572	)

EX-99.3

AT&T Inc.
Segment Results for the Quarter Ended - As Adjusted
Dollars in millions
Unaudited
	For the Quarter Ended
Wireless		9/30/2010			6/30/2010			3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Segment Operating Revenues
Service	$	13,675		$	13,186		$	12,850		$	12,585		$	12,372		$	11,960		$	11,646		$	11,523		$	11,227		$	10,894		$	10,605
Equipment		1,505			1,056			1,047			1,232			1,255			1,262			1,192			1,318			1,345			1,082			1,180
Total Segment Operating
Revenues		15,180			14,242			13,897			13,817			13,627			13,222			12,838			12,841			12,572			11,976			11,785
Segment Operating Expenses
Operations and support expenses		10,032			8,553			8,173			8,695			8,637			8,422			7,877			8,487			8,611			7,285			7,147
Depreciation and amortization		1,640			1,578			1,558			1,550			1,490			1,503			1,500			1,507			1,466			1,510			1,542
Total Segment Operating
Expenses		11,672			10,131			9,731			10,245			10,127			9,925			9,377			9,994			10,077			8,795			8,689
Segment Operating Income		3,508			4,111			4,166			3,572			3,500			3,297			3,461			2,847			2,495			3,181			3,096
Equity in Net Income (Loss) of
Affiliates		(6)			8			12			9			-			-			-			-			1			3			2
Segment Income	$	3,502		$	4,119		$	4,178		$	3,581		$	3,500		$	3,297		$	3,461		$	2,847		$	2,496		$	3,184		$	3,098
Segment Operating Income
Margin		23.1	%		28.9	%		30.0	%		25.9	%		25.7	%		24.9	%		27.0	%		22.2	%		19.8	%		26.6	%		26.3	%
Wireline
Segment Operating Revenues
Voice	$	6,973		$	7,219		$	7,479		$	7,623		$	7,943		$	8,255		$	8,503		$	8,796		$	9,317		$	9,519		$	9,690
Data		6,928			6,848			6,631			6,508			6,448			6,323			6,282			6,219			6,148			6,066			5,983
Other		1,374			1,329			1,311			1,483			1,358			1,411			1,377			1,550			1,596			1,532			1,474
Total Segment Operating
Revenues		15,275			15,396			15,421			15,614			15,749			15,989			16,162			16,565			17,061			17,117			17,147
Segment Operating Expenses
Operations and support expenses		10,196			10,263			10,494			10,470			10,527			10,678			10,677			11,159			11,285			11,012			11,361
Depreciation and amortization		3,099			3,103			3,077			3,217			3,203			3,174			3,149			3,288			3,247			3,173			3,078
Total Segment Operating
Expenses		13,295			13,366			13,571			13,687			13,730			13,852			13,826			14,447			14,532			14,185			14,439
Segment Operating Income		1,980			2,030			1,850			1,927			2,019			2,137			2,336			2,118			2,529			2,932			2,708
Equity in Net Income of Affiliates		2			-			5			-			8			6			3			2			7			3			7
Segment Income	$	1,982		$	2,030		$	1,855		$	1,927		$	2,027		$	2,143		$	2,339		$	2,120		$	2,536		$	2,935		$	2,715
Segment Operating Income
Margin		13.0	%		13.2	%		12.0	%		12.3	%		12.8	%		13.4	%		14.5	%		12.8	%		14.8	%		17.1	%		15.8	%
Advertising Solutions
Segment Operating Revenues	$	961		$	1,007		$	1,041		$	1,102		$	1,162		$	1,211		$	1,249		$	1,302		$	1,333		$	1,383		$	1,398
Segment Operating Expenses
Operations and support expenses		631			662			664			650			683			697			713			681			709			746			764
Depreciation and amortization		123			132			138			150			158			166			176			180			194			203			212
Total Segment Operating
Expenses		754			794			802			800			841			863			889			861			903			949			976
Segment Income	$	207		$	213		$	239		$	302		$	321		$	348		$	360		$	441		$	430		$	434		$	422
Segment Income Margin		21.5	%		21.2	%		23.0	%		27.4	%		27.6	%		28.7	%		28.8	%		33.9	%		32.3	%		31.4	%		30.2	%
Other
Segment Operating Revenues	$	165		$	163		$	171		$	175		$	196		$	192		$	208		$	217		$	236		$	237		$	273
Segment Operating Expenses		429			434			455			1,197			725			533			681			643			(32)			113			412
Segment Operating Income (Loss)		(264)			(271)			(284)			(1,022)			(529)			(341)			(473)			(426)			268			124			(139)
Equity in Net Income of Affiliates		221			187			200			176			173			225			134			104			249			205			235
Segment Income (Loss)	$	(43)		$	(84)		$	(84)		$	(846)		$	(356)		$	(116)		$	(339)		$	(322)		$	517		$	329		$	96

EX-99.4

AT&T Inc.
Non-GAAP Wireless Reconciliation
Wireless Segment OIBDA
Dollars in millions
Unaudited
	For the Quarter Ended
Wireless	9/30/2010			6/30/2010			3/31/2010			12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Segment Operating Revenues
Service	$	13,675		$	13,186		$	12,850		$	12,585		$	12,372		$	11,960		$	11,646		$	11,523		$	11,227		$	10,894		$	10,605
Equipment		1,505			1,056			1,047			1,232			1,255			1,262			1,192			1,318			1,345			1,082			1,180
Total Segment Operating Revenues		15,180			14,242			13,897			13,817			13,627			13,222			12,838			12,841			12,572			11,976			11,785
Segment Operating Expenses
Operations and support expenses		10,032			8,553			8,173			8,695			8,637			8,422			7,877			8,487			8,611			7,285			7,147
Depreciation and amortization		1,640			1,578			1,558			1,550			1,490			1,503			1,500			1,507			1,466			1,510			1,542
Total Segment Operating Expenses		11,672			10,131			9,731			10,245			10,127			9,925			9,377			9,994			10,077			8,795			8,689
Segment Operating Income		3,508			4,111			4,166			3,572			3,500			3,297			3,461			2,847			2,495			3,181			3,096
Plus: Depreciation and amortization		1,640			1,578			1,558			1,550			1,490			1,503			1,500			1,507			1,466			1,510			1,542
OIBDA		5,148			5,689			5,724			5,122			4,990			4,800			4,961			4,354			3,961			4,691			4,638
OIBDA as a % of Service Revenue		37.6	%		43.1	%		44.5	%		40.7	%		40.3	%		40.1	%		42.6	%		37.8	%		35.3	%		43.1	%		43.7	%

OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from segment operating income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.