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AT&T to take USD 10 bln in charges in Q4

2015-01-19 09:01:00| Telecompaper Headlines

(Telecompaper) AT&T announced that it will record a one-time, non-cash charge of around USD 7.9 billion before tax for the fourth quarter of 2014. The charge is due to actuarial gains and losses on pension and post-employment benefit plans. At year-end, the company decreased its assumed discount rates used to measure its pension obligation to 4.3 percent and to 4.2 percent for the post-retirement obligation. These reductions resulted in an actuarial loss of approximately USD 7.9 billion. Also contributing to the amount were losses due to updated mortality assumptions offset by asset gains in excess of the assumed rate of return as well as demographic changes and other assumptions. The Q4 operating results will also include a USD 2.1 billion non-cash charge for the abandonment in place of certain network assets. During the quarter, an analysis of network assets determined that specific copper assets will not be necessary to support future network activity, due to declining customer demand for legacy voice and data products and the migration to next-generation technology. 

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Category:Telecommunications

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