AT&T To Take $10 Bln Charge In Q4

(RTTNews) - Telecom giant AT&T Inc. (T) disclosed in a regulatory filing that it expects to record a non-cash, pre-tax loss of about $7.9 billion in the fourth-quarter ended December 31, 2014 related to actuarial gains and losses on pension and postemployment benefit plans. The results will also include a $2.1 billion noncash charge for the abandonment in place of certain network assets.

At December 31, 2014, the company decreased its assumed discount rates used to measure our pension obligation to 4.3% and to 4.2% for its postretirement obligation. These reductions resulted in an actuarial loss of approximately $7.9 billion. Also contributing to the amount were losses due to updated mortality assumptions offset by asset gains in excess of its assumed rate of return as well as demographic changes and other assumptions.

Actuarial gains and losses are managed on a total company basis and are, accordingly, reflected only in consolidated results. Therefore, this loss will not affect segment operating results or margins, the company said.

During the fourth quarter, the company performed an analysis of its network assets and 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 of its networks to next generation technology. This decision by management will not be considered in its assessment of segment performance and therefore, this charge will be reflected only in consolidated results and will not affect segment operating results or margins, the company said.

T closed Friday trading at $33.80, up $0.54 or 1.62%. However, in after hours, the stock dropped $0.47 or 1.39%.