Breaking:
AT&T intends to take $1B (billion!) charge in Q1 due to health care reform. AT&T announced in a regulatory filing that intends to take a non-cash charge of approximately $1B in Q1 to reflect the impact of health care reform legislation. As a result of this legislation, including the additional tax burden, AT&T said it will be evaluating prospective changes to the active and retiree health care benefits offered by the company
OMG!
Here’s Reuters’ version reported via the AP:
http://news.yahoo.com/s/nm/20100326/bs_nm/us_att
NEW YORK (Reuters) – AT&T Inc (T.N) said on Friday that it would record a $1 billion non-cash charge for the current quarter related to the new U.S. health care reform law signed by President Barack Obama this week.
AT&T’s charge appeared to be the largest in a series of charges announced by U.S. companies this week.
The operator, whose annual revenue is expected to be $124.1 billion this year, said the charge is the result of a provision in the law related to the tax treatment of Medicare subsidies.
As a result of the legislation, the company said it will be evaluating prospective changes to the health care benefits it offers.
That’s a billion dollars that could have been invested in the company for new products and new jobs just up in a puff of smoke.