AT&T to take $7.6B non-cash gain

AT&T (T) will book a non-cash gain of approximately $7.6B on its Q4 earnings, due to changes in its pension fund and retiree benefit plans.

AT&T has altered its assumptions on interest rates and is enjoying a better-than-expected return on assets,

However, the carrier is also taking a $500M charge for a voluntary retirement package that 4,200 workers accepted. (8-K)

Meanwhile, AT&T has sold an office complex east of San Francisco to MetLife (MET) and Sunset Development for over $250M. AT&T will lease back half of the 1.8M square foot property. MetLife will own 49% of the asset.

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Comments (3)
    , contributor
    Comments (130) | Send Message
    Yeah, figures, I was just thinking to fill out my position a bit more with T!
    23 Jan 2014, 03:37 AM Reply Like
  • srcellfe retired
    , contributor
    Comments (5) | Send Message
    I'm glad I retired from AT&T last year. A friend got a large cut in his pension in December.
    23 Jan 2014, 02:44 PM Reply Like
  • jarco
    , contributor
    Comments (2262) | Send Message
    I assume the non-cash gain was the result of lowering their well publicized and troubling unfunded pension liability. Unfortunately, this may have been achieved by floating a restricted preferred instrument which will require an essential off-setting cash liability to the bottom line on an annual basis. Please tell me I see I don't see a shell game here?
    24 Jan 2014, 05:34 PM Reply Like
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