DALLAS (dpa-AFX) - AT&T Inc. (T) disclosed in a regulatory filing on Friday that it expects to record a noncash, pre-tax loss of about $1.0 billion in the fourth-quarter ended December 31, 2016 related to the annual remeasurement of pension and postemployment benefit plans.
At December 31, 2016, the company decreased its assumed discount rates used to measure its pension obligation to 4.4% from 4.6%, and to 4.3% from 4.5% for our postretirement obligation generating a loss of approximately $3.0 billion. The loss was substantially offset by gains related to better than assumed claims experience, slightly higher than expected asset returns, demographic changes and mortality and other assumption changes.
Actuarial gains and losses are managed on a total company basis and are, accordingly, reflected only in consolidated results. This loss will not affect segment operating results or margins and will be included as an adjusting item in fourth-quarter results.
The company plans to report subscriber net adds in the fourth quarter of 2016, primarily attributable to more than 900,000 branded net adds of domestic wireless subscribers (approximately 500,000 postpaid and 400,000 prepaid), with branded phone net adds of more than 330,000.
The fourth-quarter 2016 results included approximately 700,000 of 2G deactivations, about 50,000 of which were postpaid. At December 31, 2016, it had approximately 2.3 million remaining total 2G subscribers and non-voice phone connections, of which about 100,000 were postpaid. It has discontinued service on virtually all of 2G cell sites.
More than 1.2 million wireless net adds in Mexico.
More than 200,000 video net adds, entirely driven by DIRECTV NOW. This includes only paying customers.
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