AT&T to Take $2.7 Billion Charge in Quarter
AT&T says it expects to take a pre-tax charge of $2.7 billion in the fourth quarter because of a change in how it accounts for gains and losses for pensions and other retirement benefits.
AT&T said Thursday the charge amounts to 28 cents per share. The company says the charge is driven by a benefit plan discount rate to 5.8 percent from 6.5 percent.
AT&T says it will now recognize gains and losses for pension and other retirement benefits in the year they are incurred. Previously it recognized them over many years and recorded them on its income statement in the fourth quarter of each year.