Inventory Accounting Policy
Inventories, which are included in "Other current assets" on AT&T's consolidated balance sheets, were $1,188 at December 31, 2011, and $1,303 at December 31, 2010. Wireless handsets and accessories, which are valued at the lower of cost or market (determined using current replacement cost) were $1,082 as of December 31, 2011, and $1,185 as of December 31, 2010. The remainder of AT&T's inventory includes new and reusable supplies and network equipment of AT&T's local telephone operations, which are stated principally at average original cost, or specific costs in the case of large individual items. Inventories of AT&T's other subsidiaries are stated at the lower of cost or market.
Source: AT&T Inc., Annual Report
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