(FORTUNE Magazine) – Annual reports and shareholder letters are supposed to tell investors what happened to a company over the past year. Reading them, you'd be amazed at how many companies had banner years or record growth. The reality is, many deemphasize negative events and hype the smallest accomplishments. Here are a few that spun ferociously.

--Julie Creswell and Amy Kover

CORPORATE-SPEAK

What UST said: UST believes that the outcome of...pending litigation will not have a material adverse effect on the consolidated financial position of [UST], but may have a material impact on the consolidated financial results for a particular reporting period in which resolved.

WHAT IT SHOULD HAVE SAID

Now in English: In March a Kentucky jury found that we engaged in anticompetitive behavior against rival Conwood. Now we have to fork over $1.05 billion in damages--more than double what we made from selling smokeless tobacco last year.

[CORPORATE-SPEAK]

What Amazon.com said: Amazon.com creatively applies technology to deliver personalized programs and services, as well as flexible merchandising. We employ a variety of media, business development, and promotional methods to achieve these goals.

[WHAT IT SHOULD HAVE SAID]

Reality check: We continue to creatively spend gobs of money luring people to our Website. In 1999 marketing and sales costs increased 211%, to $413 million. We, too, wonder when we'll make a profit.

[CORPORATE-SPEAK]

What Compaq said: During the second half of the year we returned to profitability, reduced operating expenses, and began to focus on increasing growth and stockholder value.

[WHAT IT SHOULD HAVE SAID]

The scoop: We had some major help in our return to profitability. Check out the one-time restructuring charge of $868 million we took and the $1.2 billion we got for selling off our stake in AltaVista.

[CORPORATE-SPEAK]

What AT&T said: We've made the right strategic decisions, invested in the right assets, and have the right people to get the job done.

[WHAT IT SHOULD HAVE SAID]

Not everything is right: In recent months we have bled executives: Dan Hesse, wireless division president; Dan Schulman, head of consumer services; and his replacement, H. Eugene Lockhart, have all left.