<PAGE> 1
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: January 14, 1994
AMERICAN TELEPHONE AND TELEGRAPH COMPANY
A New York Commission File I.R.S. Employer
Corporation No. 1-1105 No. 13-4924710
32 Avenue of the Americas, New York, New York 1001 3-2412
Telephone Number (212) 387-5400
<PAGE>
<PAGE> 2
Form 8-K American Telephone and Telegraph Company
January 14, 1994
Item 5. Other Events.
On January 14, 1994, American Telephone and Telegraph Company ("AT&T")
announced that it will book a non-cash charge against 1993 results for
postemployment benefits and payments as required by a new accounting rule--
Statement of Financial Accounting Standards No. 112 /Employers' Accounting
for Postemployment Benefits ("SFAS No. 112").
Under the new rule, separation payments must be expensed as they
accumulate over employees' working lives, rather than booked as they are
identified. Disability payments are expensed as disabilities occur rather
than as payments are made. This accounting change is expected to reduce
full-year 1993 earnings by about $1.3 billion after taxes, or about 96
cents per share. AT&T will continue to book expenses in future years as
these employee costs accumulate. These non-cash accruals could amount to
about $200 million after taxes annually. Besides these charges, AT&T's
1993 results will also reflect previously announced restructuring
activities and pension costs associated with an early retirement program of
its subsidiary NCR Corporation, which are expected to be approximately
$120 million after taxes.
As a result of AT&T's decision to adopt SFAS No. 112 effective January
1, 1993, the following changes were made to previously filed 1993 quarterly
information. In the first quarter, income before cumulative effects of
accounting changes was reduced by $60 million ($0.04 per share), cumulative
effects of accounting changes was increased by $1,128 million ($0.84 per
share) and net loss was increased by $1,188 million ($0.88 per share).
Income before cumulative effects of accounting changes and net income was
reduced by $39 million ($0.03 per share) and $22 million ($0.02 per share)
in the second and third quarters, respectively. For the nine months ended
September 30, 1993, income before cumulative effects of accounting changes
was reduced by $121 million ($0.09 per share), cumulative effects of
accounting changes was increased $1,128 million ($0.83 per share) and net
loss was increased by $1,249 million ($0.92 per share).
At September 30, 1993, as a result of adopting SFAS No. 112 total
liabilities were increased by $1,228 million and shareowners' equity was
reduced by $1,249 million. The change had no impact on cash flows.
At the same time, AT&T announced that, excluding the effect of the
accounting change and the NCR restructuring and pension costs referred to
above, its management expects net income for the fourth quarter of 1993 to
be approximately $1.15 billion or 85 cents per share. These amounts are
preliminary and unaudited.
<PAGE>
<PAGE> 3
Form 8-K American Telephone and Telegraph Company
January 14, 1994
SIGNATURES
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 thereunto duly authorized.
American Telephone and Telegraph Company
By S. L. Prendergast
Vice President and Treasurer
January 20, 1994
