Citi offers update on AT&T's non-cash charges disclosed on Friday

Citi offered an update on AT&T Inc.

that the company disclosed, “it expects to incur non-cash pre-tax charges that total around $10 billion within 4Q/14 results.” In their report Citi goes on to say that AT&T disclosed $7.9 billion in non-cash pretax charges related to its pension and post-employment benefit plans along with a 2.1 billion dollar charge for the abandonment of specific copper assets the company determined would not be necessary to support future business operations or network activity. Citi analysts wrote that, “We expect investors will normalized 4Q results and EPS for these noncash charges, while we recognize the possibility that the charge related to network assets could help to reduce wireline depreciation and amortization during 2015.” Citi remains Neutral on AT&T. AT&T is currently trading at $33.69 down 0.3%.