Friday, January 18, 2013

AT&T Warns of Lower Long-Term Rates of Return on Investments

AT&T has lowered its expected long-term rate of return for pension obligations due to the continued uncertainty in the securities markets and the U.S. economy in 2013. AT&T will book at $10 billion charge in the fourth quarter to compensate. 

Verizon is taking a $7 billion charge in the fourth quarter, to cover pension obligations of its own. 

AT&T said the changes will not affect It said the pension loss will not affect its operating results or margins.

Still, the shortfall in pension obligations, which largely reflect assumptions about interest rates, will strike some as unsettling. 

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