What was the overall financial performance of the SBC Savings and Security Plan in 2001?

In 2001, the SBC Savings and Security Plan saw its net assets available for benefits decrease from approximately $4.63 billion to $4.00 billion. This decline was primarily caused by a substantial net depreciation in the fair value of the plan's investments, totaling $637.8 million. Despite this, the plan received significant contributions from participants and employers, and generated investment income.

What were the main reasons for the decrease in the plan's net assets?

The primary reason for the decrease in the plan's net assets was the significant negative performance of its investments. The plan reported a net depreciation in the fair value of its investments of $637.8 million for the year ended December 31, 2001. This was partially offset by contributions and investment income, but the investment losses were the dominant factor in the overall decline.

Were there any significant corporate actions or events impacting the plan in 2001?

Yes, there were a few notable events. The plan fully repaid its long-term debt related to ESOP Notes, eliminating that liability. Additionally, the Woodbury Telephone Company Union 401(k) Plan was merged into the SBC Savings and Security Plan. The plan also facilitated asset transfers for employees who became Cingular employees, as SBC entered into a joint venture with BellSouth Corporation.

What were the largest investment holdings within the plan, and how did they perform?

The largest investment holdings were primarily in SBC common shares, held within the Employee Stock Ownership Plan (ESOP) and the SBC Shares Fund. For example, the ESOP held allocated SBC common shares valued at $1.03 billion at year-end 2001, down from $1.21 billion in 2000. The SBC Shares Fund held SBC common shares valued at $1.53 billion, down from $1.94 billion in 2000. These holdings, along with others like the Barclays Global Investors Equity Index Fund, contributed significantly to the overall investment depreciation reported by the plan.

AT&T INC. 10-K FY2001 Annual Report — Revenue, Net Income, EPS

Summary

This document is an amendment to AT&T Inc.'s (formerly SBC Communications Inc.) 2001 Form 10-K, specifically detailing the financial statements and supplemental schedules for the SBC Savings and Security Plan for the fiscal year ended December 31, 2001. The plan's net assets available for benefits decreased by approximately $635 million from $4.63 billion in 2000 to $4.00 billion in 2001, primarily due to a net depreciation in the fair value of investments totaling $637.8 million. Despite this investment depreciation, the plan saw significant additions through participant and employer contributions, totaling over $332 million, along with investment income of $111.8 million. The plan also paid out $430.3 million in distributions to participants. A notable event during the year was the repayment in full of ESOP Notes previously guaranteed by SBC, eliminating the plan's long-term debt. Additionally, the plan merged with the Woodbury Telephone Company Union 401(k) Plan and facilitated the transfer of assets for employees who became Cingular employees.

Key Highlights

1The SBC Savings and Security Plan's net assets decreased by approximately $635 million year-over-year, closing 2001 at $3.998 billion, largely driven by a $637.8 million net depreciation in investment values.
2Total additions to net assets from contributions (participant and employer) and transfers amounted to $332.9 million, demonstrating continued employee and company investment in the plan.
3Investment income, primarily from dividends and interest, contributed $111.8 million to the plan's net assets.
4The plan made significant distributions to participants totaling $430.3 million during the year.
5The SBC Savings and Security Plan fully repaid its long-term debt associated with ESOP Notes during 2001, eliminating this liability.
6The plan experienced an asset transfer related to employees becoming Cingular employees and also merged with the Woodbury Telephone Company Union 401(k) Plan.
7Key investments include significant holdings in SBC common shares through the Employee Stock Ownership Plan and the SBC Shares Fund, which experienced substantial depreciation in value.

AT&T INC. Annual Report (Amendment), Year Ended Dec 31, 2001

Summary

Key Highlights

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