AT&T to Report its Q4 Earnings on January 27; Expects $10 Billion In Pre-tax Loss
On January 27, AT&T is supposed to report its earnings for the fourth quarter. The company is expected to report a massive amount of charges amounting up to $10 billion as pre-tax losses for the quarter. Most of the losses are related to its pension plans and the retiree benefit schemes amounting to a total of $7.9 billion.
According to the company the employees of AT&T are enjoying longer lives than earlier expected and due to the prolonged living phase the benefit plans for the retired employees are continued to be paid out. However AT&T said that the close to $10 billion in charges will not be a factor to affect either the segment operating results or the margins.
The pre-tax loss of $7.9 billion is also a result of the reductions which AT&T made to its supposed discount rates which are used to calculate the pension responsibilities, down to 4.3% and 4.2%. The company also said that a certain part of the pre-tax loss was a result of "updated mortality assumptions offset by asset gains in excess of the assumed rate of return."
Additionally, AT &T is also expecting to witness charges amounting to $2.1 billion, which is related to a drop in demand from the customers for its older voice and data devices which include copper assets.
New Zealand News
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