AT&T will record noncash charges totalling US$10 billion in the fourth quarter due to actuarial gains and losses on pension and benefit schemes, and the decommissioning of some of its copper assets.
In an SEC filing late last week, the U.S. telco giant said $7.9 billion is attributable to its decision to lower the rate it uses to measure its pension and postretirement obligations.
"Also contributing to the amount were losses due to updated mortality assumptions," AT&T said, which in a nutshell means that the company’s retired employees are living longer than they used to.
In addition, AT&T said th at during the fourth quarter it also identified "specific copper assets" that are not necessary to support future network activity, due to declining demand for legacy voice and data services and the steady migration to services based on next-generation infrastructure.
As a result, the operator said it will record a $2.1 billion noncash charge for the abandonment of these assets.
AT&T is due to publish its fourth quarter financial results on 27 January.
