Special items
In a three-year period AT&T, the telecommunications provider, reported net income of $1.9 billion (Year Three), a net loss of $13 billion (Year Two), and net income of $7.7 billion (Year One). Included in these numbers were the following special items:
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Year One: |
losses from equity investments ($7.5 billion); net loss from discontinued operations ($4 billion); gain on disposition of discontinued operations ($1.3 billion); and gain from accounting changes ($904 million). |
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Year Two: |
losses from equity investments ($400 million); net loss from discontinued operations ($14.5 billion); gain on disposition of discontinued operations ($1.3 billion); and loss from accounting changes ($856 million). |
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Year Three: |
losses from equity investments ($12 million); net loss from discontinued operations ($13 million); and gain from accounting changes ($15 million). |
a. Describe each special item.
b. Comment on AT&T”s performance across the three-year period.