GO
Loading...

AT&T to Take $2.7 Billion Charge in Quarter

Associated Press
Thursday, 13 Jan 2011 | 8:29 AM ET

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
Getty Images
AT&T

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.

  Price   Change %Change
T
---

Featured

Contact Mobile

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.