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AT&T will take $1B non-cash charge for health care



Published: Fri, March 26, 2010 @ 4:04 p.m.

NEW YORK (AP) — AT&T Inc. will take a $1 billion non-cash charge in the first quarter because of the health-care overhaul and may cut benefits it offers to current and retired workers.

The charge is the largest disclosed so far. Earlier this week, AK Steel Corp., Caterpillar Inc., Deere & Co. and Valero Energy announced similar accounting charges, saying the health-care law that President Barack Obama signed Tuesday will raise their expenses.

All four are smaller than AT&T, and their combined charges are less than a quarter of the $1 billion that AT&T is planning. The $1 billion is a third of AT&T's most recent quarterly profit. In the fourth quarter of 2009, the company earned $3 billion on revenue of $30.9 billion.

AT&T said today the charge reflects changes to how Medicare subsidies are taxed. Companies say the health-care overhaul will require them to start paying taxes next year on a subsidy they receive for retiree drug coverage.


Comments

1Millie(192 comments)posted 4 years, 4 months ago

It sounds like we will feel the impact of the new program sooner than anticipated. Pension funds with AT & T holdings will probably see change that won't be positive. This is the time to be on welfare rather than employed.

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2borylie(769 comments)posted 4 years, 4 months ago

Great response No Hope. Another deep thought comes from your shallow pool of retorts. It may be BS in your world, but in the real world One and Done's healthcare fiasco will hurt business therefore hurting working Americans. This isn't partisan, the numbers do not lie. You can't have all the things promised with more to come and not expect it to raise the cost of doing business, then it will ramp up inflation as companies try to keep up by raising prices. And nobody even knows what this is going to cost you, me and businesses starting real soon.

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3Springman(235 comments)posted 4 years, 4 months ago

Double edged sword:

All of these companies should have supported single payer, because it would have shifted responsibility to the taxpayers.

Are the Medicare beneficiaries who worked for these jerks also shareholders? If management failed to support single payer, do the shareholders have a case against them for failing to prudently manage their money?

Are these deductions forseeable? If so, are these charges frauds on the taxpayers?

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4cambridge(2971 comments)posted 4 years, 4 months ago

If AT&T treats their employees the way they treat their customers I don't feel sorry for them. I got rid of them long ago. Imagine a company in America having to share the tax burden with the rest of us.

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5borylie(769 comments)posted 4 years, 4 months ago

If the U.S. government treats the working American citizens this way then I don't feel sorry for them. Imagine me having to share the tax burden with those who pay none.

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6pci510(105 comments)posted 4 years, 4 months ago

Wonder if the politicians would take 1/3 of their salaries to fund this health reform bill? If so, this health reform bill would not have passed as they would have started all over again to find a health reform bill which would not cause more companies to close or file bankruptcy or lose 1/3 of their salaries !
Posted by Dereck

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7vinglass(223 comments)posted 4 years, 4 months ago

It doesn't matter if you are right or left, capitalist or socialist, Dem or Republican, conservative or liberal....It is the middle -class taxpayers who will get screwed in the end (no pun intended). The welfare folks will continue to get their freebies and benefits, and the wealthy will remain wealthy. The middle class will pay the bill as usual....

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8borylie(769 comments)posted 4 years, 4 months ago

vinglass, you're almost on the money, except the goal of democrats/liberals socialists/communists is not to raise the welfare type into middle class, but to reduce the middle class to a welfare type, so that we all need government. Controlling our healthcare,the banks,businesses,education(or lack of education),Social Security and then taxing us into poverty is how the elite and government will control our lives. If all these fools think they're going to be part of the elite, I need one of them to explain to me how?

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9justwondering(1 comment)posted 4 years, 4 months ago

I read the story from New York AP and walked away thinking:
AT&T and other companies are now going to being taxed on subsidy they receive to pay for retiree drug coverage.
Subsidy, thanks to Dictionary.com means
sub·si·dy   /ˈsʌbsɪdi/ Show Spelled[suhb-si-dee] Show IPA
–noun,plural-dies.
1.a direct pecuniary aid furnished by a government to a private industrial undertaking, a charity organization, or the like.
2.a sum paid, often in accordance with a treaty, by one government to another to secure some service in return.
3.a grant or contribution of money.
4.money formerly granted by the English Parliament to the crown for special needs.
So, are they being taxed on money WE give as part of government and now will lose $1 billion of the fourth quarter profit postings of $3 billion?
If so, I'm not screaming BOOHOO; for taxing a company still making a $2 BILLION profit during this hard time.

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10blkpride(186 comments)posted 4 years, 4 months ago

You asked for it! You got it! OBAMA! I TOLD YOU SO! Reap what you sow unions!

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