01—Abstract
Summary
Summary of the 10-K/A filed June 27, 2000. Cited figures are marked; the original filing is the authoritative source.
This document is not an AT&T annual report.
It is Amendment No. 1 to the Form 10-K of SBC Communications Inc. (Commission File No. 1-8610, San Antonio, Texas) for fiscal year 1999, filed June 27, 2000. The amendment adds four Form 11-K exhibits covering the annual reports of SBC's employee savings plans: the SBC Savings Plan, the SBC Savings and Security Plan, the Ameritech Savings Plan for Salaried Employees, and the Ameritech Savings and Security Plan for Non-Salaried Employees. It contains no company-level financial statements, business discussion, risk factors, or guidance, so it does not support an analysis of AT&T or of SBC's corporate performance.
The exhibits show combined net assets available for benefits of roughly $18.6 billiona across the four plans at December 31, 1999. The SBC Savings Plan held $6.59 billion, up from $6.13 billion in 1998. The SBC Savings and Security Plan rose to $4.83 billion from $2.24 billion, largely because of plan mergers with SNET and Pacific Telesis, which contributed about $3.1 billion of transfers in.
The two Ameritech plans declined: the salaried plan fell to $4.24 billionb from $4.44 billion, and the non-salaried plan fell to $2.97 billion from $3.21 billion. Most of the plan assets are invested in SBC common stock through the SBC Shares Fund and ESOP holdings, so the plans' value is closely tied to SBC's share price. All four plans were audited, with Ernst & Young LLP issuing unqualified opinions for 1999.
Arthur Andersen LLP audited the 1998 statements of the Ameritech non-salaried plan. The filing is administrative and mainly relevant to plan participants, ERISA compliance, and anyone tracking SBC's employee stock ownership. For investment analysis of AT&T (ticker T), the appropriate source would be AT&T's own 10-K for the relevant fiscal year.
02—Key points
Key Highlights
- Document identity: this is SBC Communications Inc.'s 10-K/A (Amendment No. 1) for fiscal year 1999, filed June 27, 2000, not an AT&T (ticker T) filing.
- Purpose: the amendment only adds four Form 11-K annual reports for SBC and Ameritech employee savings plans; it contains no corporate financial statements.
- Combined plan assets: net assets available for benefits total about $18.6 billion across the four plans at December 31, 1999 (SBC Savings Plan $6.59B; SBC Savings and Security Plan $4.83B; Ameritech Salaried $4.24B; Ameritech Non-Salaried $2.97B).
- Growth driver: the SBC Savings and Security Plan more than doubled to $4.83B from $2.24B, mainly from about $3.1B of transfers in from the SNET and Pacific Telesis plan mergers.
- Ameritech decline: the Ameritech salaried and non-salaried plans each lost net assets in 1999 ($4.44B to $4.24B and $3.21B to $2.97B), reflecting distributions exceeding additions.
- Concentration in SBC stock: plan assets are heavily invested in SBC common shares through the SBC Shares Fund, the Company Stock Fund, and ESOP holdings, so participant balances are sensitive to SBC's share price.
- Audit status: Ernst & Young LLP provided unqualified opinions on the 1999 financial statements of all plans; Arthur Andersen LLP audited the 1998 statement for the Ameritech non-salaried plan.
03—Questions
Frequently Asked Questions
Is this filing an AT&T annual report?
No. The filing is SBC Communications Inc.'s 10-K/A for fiscal 1999, which adds Form 11-K employee savings plan reports as exhibits. It contains no AT&T financial statements or business disclosures.
Does this filing contain SBC's corporate financial results, revenue, or earnings?
No. The filing contains only the net assets, contributions, distributions, and investment activity of four employee savings plans, not the company's income statement, balance sheet, or segment results.
How large are the employee savings plans, and how did they change in 1999?
Combined net assets were about $18.6 billion at December 31, 1999. The SBC Savings Plan grew to $6.59B from $6.13B, the SBC Savings and Security Plan grew to $4.83B from $2.24B (largely from plan mergers), and the two Ameritech plans declined to $4.24B and $2.97B from $4.44B and $3.21B.
Why does the value of these plans matter to investors?
Much of the plan assets are invested in SBC common stock, including ESOP shares and the SBC Shares Fund. Plan values therefore move with SBC's share price, and the plans represent a significant block of employee-held stock. The filing does not, however, provide guidance or forward-looking information.
Where should an investor look for AT&T's financial information?
AT&T's own Form 10-K for the relevant fiscal year, filed with the SEC under AT&T's commission file and CIK, is the appropriate source for AT&T's financial statements, risk factors, and management discussion.
04—Continue