Item 8.01 Other Events.
On January 22, 2014, AT&T Inc. (“AT&T”, “we” or “the Company”) provided updated information regarding certain fourth-quarter items.
For the quarter ended December 31, 2013, we expect to record a noncash, pre-tax gain of approximately $7.6 billion related to actuarial gains and losses on pension and postemployment benefit plans. At December 31, 2013, we increased our assumed discount rate to 5.0%, resulting in an actuarial gain of approximately $7.9 billion. Also contributing to the amount were asset gains, which were approximately $3.2 billion in excess of our assumed rate of return of 7.75%. Partially offsetting these gains were losses due to updated mortality and other assumptions as well as demographic changes. Actuarial gains and losses are managed on a total company basis and are, accordingly, reflected only in consolidated results. Therefore, this gain will not affect segment operating results or margins.
During the fourth quarter we recorded special termination and other employee-related charges of approximately $500 million in our Other segment operating results. The special termination charges relate to a previously announced one-time voluntary retirement opportunity for certain management retirement-eligible employees to elect a full lump sum payment of their accrued pension if they retired as of December 30, 2013. The lump sum value was calculated using the August 2012 discount rates and was accepted by approximately 4,200 employees.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this filing based on new information or otherwise.