Jan 22 AT&T Inc said on Wednesday that it
would record a non-cash, pre-tax gain of about $7.6 billion for
the fourth quarter from its pensions and post-employment benefit
plans, the latest company to see hefty pension related gains
AT&T said the $7.6 billion included an actuarial gain of
$7.9 billion resulting from an increase of its assumed discount
rate to 5.0 percent and a gain of $3.2 billion from
higher-than-expected asset returns as well as offsets from
losses due to updated mortality and demographic changes.
The announcement came a day after AT&T's biggest rival
Verizon Communications, reported a fourth-quarter
after-tax gain of $3.7 billion, or $1.29 per share, related to
its annual actuarial valuation of benefit plans and
mark-to-market pension adjustments.
AT&T, the biggest U.S. telephone company, said the gain will
not affect its operating results or margins in the quarter ended
Dec. 31, the company said in a regulatory filing. (Filing:)
AT&T also said it expects to record a charge of about $500
million related to employee termination and other
It said that the termination charges related to an offer it
made to certain management retirement-eligible employees to
choose a full lump sum payment of their accrued pension if they
retired as of Dec. 30, 2013. The offer, which it announced in
October, was accepted by 4,200 employees.
AT&T is scheduled to report fourth-quarter results on Jan.
28. Its shares fell almost 1 percent in late trade to $33.30
after they closed at $33.57 on the New York Stock Exchange on