Printed from http://www.electronista.com

AT&T absorbs $10 billion pension-related charge in 4Q

updated 01:25 pm EST, Fri January 18, 2013

Charge partially offset by investment returns, other earnings

AT&T has warned Wall Street and investors that prior to its January 24 quarterly reports report, it will record a $10 billion charge for the quarter on an "accounting shift" related to its pension and post-retirement employee benefit plans. The company reports that its pension was underfunded by more than $10 billion in 2011, with $56 billion in obligations. The offset eclipses the offset it took in 2011 of $6.3 billion.

Balancing the charge slightly is a $1.9 billion gain on its investments above the assumed rate of return. Other gains totalling $100 million were remarked upon, but operating income would be slashed by $175 million from assorted US storm damage to its infrastructure.

The telephony provider also reported that it sold 10.2 million smartphones in the quarter, slightly refining a statement from earlier in the week that put the figure at "more than 10 million." AT&T warned that the volume of sales would apply "near-term pressure on operating income, margins and earnings per share" in the fourth quarter of 2011 and the first quarter of 2012 from subsidies paid to the handset manufacturers.

Competitor Verizon Communications warned last week that it would have a similar charge, including $7 billion for pension fund adjustments, with the rest related to storm damage and associated debts.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As 802.11ac networking begins to makes its way into more and more devices, you may find yourself considering an upgrade for your home ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News