AT&T 4Q 2012 Non-GAAP Adjusted Pretax Operating Income down 1% and Annual 2012 Earnings up 5%

Below here are reconciliations of AT&T's Pretax Operating Income (Loss) as Reported and its Non-GAAP Adjusted Pretax Operating Income for both the 4Qs of 2012 and 2011 and for annual 2012 and 2011:

	4Q	4Q	%		Annual	Annual	%
	2012	2011	Increase		2012	2011	Increase
	mil $s	mil $s	(Decrease)		mil $s	mil $s
Pretax Operating Income (Loss), as Reported	(5,958)	(8,990)	34%		12,997	9,218	41%
Adjustments:
Actuarial Loss on Benefit Plan	9,994	6,280			9,994	6,280
Termination of T-Mobile Acquisition Charge		4,181				4,181
Removal of Advertising Solutions		2,772			(170)	2,268
Storm Impacts	176				176
Non-GAAP Adjusted Pretax Operating Income	4,212	4,243	-1%		22,997	21,947	5%

And from the most recent 2011 Proxy Statement filed with the SEC, below here is the executive compensation information for R. Stephenson, the Chairman and CEO of AT&T:

				Non-equity	Increase
				Incentive	In	All
		Stock	Option	Plan	Pension	Other	Total
Year	Salary	Awards	Awards	Compensation	Value	Compensation	Compensation
	000s	000s	000s	000s	000s	000s	000s
2011	1,550	12,750	46	3,788	3,330	555	22,019
2010	1,533	12,750	495	5,050	7,096	417	27,341
2009	1,450	12,000	76	681	8,990	865	24,062
3 Yr Total	4,533	37,500	617	9,519	19,416	1,837	73,422

And here's Stephenson's Detailed All Other Compensation for 2009 through 2011:

			2011	2010	2009
			000s	000s	000s
Club Memberships					216
Company Paid Premiums on Supplementary Life Insurance			170	164	200
Tax Gross Ups on Life Insurance Premiums					141
Company Matching Contribution in 401(k) Plan
and Certain Make Up Contributions in Stock			167	73	70
Purchase and Deferral Plan
Personal Use of Company Aircraft			132	77	86
Many Various Personal Benefits			86	103	152
Total All Other Compensation			555	417	865

When you review the above clearly extravagant compensation numbers for AT&T's CEO, do you think that the US has a problem with economic fairness between the very wealthy and everyone else?  Yeah, that's Total Increase in Pension Value of $19.4 mil, Total  Stock Awards of $37.5 mil and Total Compensation of $73.4, all for the three years from 2009 to 2011, for the CEO of AT&T.

For 2008 and 2009 combined, when 50% bonus tax depreciation was effective in the US, AT&T generated $38.4 bil of Consolidated Pretax Income and paid $4,023 mil of US federal income tax, for an effective tax rate of only 10.5%.  And how may jobs did AT&T add in those two years (2008 and 2009) while it was receiving this massive tax largesse? Well, none, in fact it slashed 29,000 jobs, going from 310,000 at the end of 2007 to 281,000 at the end of 2009.

For 2010 and 2011 combined, when there was mostly 100% first-year bonus tax depreciation in the US, AT&T generated $25.0 bil of Consolidated Pretax Income and didn't pay a dime in total of US federal income tax, instead receiving a net total US federal income tax refund of $113 mil. And how may jobs did AT&T add in those two years (2010 and 2011) while it was receiving this incredibly massive tax largesse? Well, none, in fact it slashed an additional 25,000 jobs, going from 281,000 at the end of 2009 to 256,000 at the end of 2011.

Like so many other CEOs of the country's largest corporations, AT&T's CEO is leading the charge in reducing the US Debt.  Do you think their main emphasis is on the US Government raising Tax Revenues or on reducing US Government Spending?

Well, the Business Roundtable, which speaks for the largest US Corps, is now lobbying very heavily to delay first eligibility for both Social Security and Medicare Benefits to Age 70.  That answers this question.