Friday, October 31, 2025
31.3 C
Lagos

AT&T Takes $10bn Hit to Pension Fund

­AT&T has announced that it is taking a US$10 billion charge related to its pension costs. The company said that the non-cash charge follows a decision to lower its assumed discount rate to 4.3%, resulting in an actuarial loss of approximately $12 billion.

Partially offsetting the impact of the discount rate is an asset gain, which is approximately $1.9 billion in excess of their assumed rate of return of 8.25%. Despite this gain, due to the continued uncertainty in the securities markets and U.S. economy in 2013, the company said that it has lowered its expected long-term rate of return on asset assumption to 7.75%.

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.

In other news, the company also confirmed that fourth-quarter total smartphone sales were approximately 10.2 million devices. Due to the high subsidies on these devices, AT&T expects a near-term pressure on operating income, margins, and earnings per share in the fourth quarter of 2012.

The estimated reduction in fourth-quarter 2012 operating income as a result of storms, including Superstorm Sandy, is approximately US$175 million, which primarily impacts the Wireless segment.

spot_img
spot_img
spot_img

Hot this week

Jiji Launches “Deals Na Water” Black Friday with up to 85% Off for Shoppers

Maxim Makarchuk COO Jiji Africa Jiji, Nigeria’s leading online marketplace, has officially...

What Happens to Pension Benefits When a Contributor Dies?

Pension schemes are a cornerstone of financial security for...

Access Holdings Records N3.9tn Gross Earnings in 9 Months

Access Holdings Plc has announced its nine-month ended September...

NCDMB to Train over 10,000 Nigerians in High-Demand Oil Skills

Spurred by the resurgence of big-ticket investments and new...

NGX Group Chair, Umaru Kwairanga, Draws Roadmap for Leadership in Nigeria

   Being the remarks by Alhaji (Dr.) Umaru Kwairanga, Group...

Topics

Nigeria Missing in 2017 Dubai Property Investors Listing

Online marketplace lists Top 10 nationalities buying UAE...

Nigeria Bourse Posts Bullish Performance as Investor Sentiment Improves

As expected, it was a bull’s market yesterday as...

‘Digital Era to Define Future of Insurance Industry’

Mr. Eddie Efekoha, President & Chairman of Council, Chartered...

MainOne’s West Africa Expansion Boosted by Cote d’Ivoire Licence

As part of its West Africa expansion, connectivity and...

‘Investment Climate Strengthens in Africa’—Index Report

Africa’s investment environment for both businesses and financial investors...

Transcorp Power: N142bn Revenue, N52.8bn PBT, Declares N23.46bn Dividend

From L-R: Dr. Owen D. Omogiafo, Non-Executive Director; Peter...

MTN Foundation Invests N18bn to Empower Communities

MTN Foundation has invested over N18 billion since inception...

Nigeria in Top 5 Most Attractive African Countries for Global Investors

In Africa, the five most attractive nations for international...
spot_img

Related Articles

Popular Categories

spot_imgspot_img