Skip to comments.AT&T Joins Growing List of Firms That Say Health Care Law Will Cut Into Their Profits (Obamacare)
Posted on 03/26/2010 3:32:31 PM PDT by tobyhill
AT&T said Friday that it is preparing for President Obama's health care overhaul to cost the telecommunications giant an additional $1 billion in expenses in the first quarter, possibly forcing the company to cut benefits it offers to current and retired workers.
AT&T is the latest and biggest company to account for the financial impact that the health care overhaul will have on its bottom line. It said the tax ramifications related to the legislation that Obama signed Tuesday will force it to take a non-cash charge -- an expense that does not require cash to be paid out but has to be charged against the company's earnings.
Earlier this week, AK Steel Corp., Caterpillar, Deere and Valero Energy announced similar accounting charges, saying the health care law will raise their expenses. On Friday, 3M said it will also take a charge of $85 million to $90 million.
But AT&T's charge is the largest disclosed so far. The other five's combined charges are less than half of the $1 billion that AT&T is planning. And 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.
The sweeping health care legislation that Obama signed into law Tuesday requires companies of a certain size to provide health care coverage to their workers in an effort to expand insurance to some 32 million Americans.
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Those evil white folk don’t need no dividends.
I am amazed how much Obama is screwing seniors, baby boomers and the young. They have no clue.
Most libs say: Good!
They won’t be saying good when they are the ones getting laid off.
Can you imagine, mass layoff of libs? Sweet.
Payback’s a biatch.
See, libs want to cut profits. They need to talk in terms of jobs cut or prices increased so people get the real picture.
We have one employee, who is a leftover hippie, who does not vote. Good Jeweler though.
As long as she doesn’t vote she will remain employed.
It this catches on,these idiot’s will create a new victim class.
“possibly forcing the company to cut benefits it offers to current and retired workers.”
Hang on a second...wasn’t the idea of this new health care not to cut benefits to employees but to make the employers feel bad for making a profit? I guess AT&T didn’t get the memo that they were suppose to pass the loss on to themselves and not the employees. I’m guessing that Obama would rather have the employees get the same coverage but out of the pockets of the employers, who we know are evil capitalists! (sarc)
All those effects are carefully scheduled to occur post 2010 and 2012 elections, my FRiend.
Mark my words: The laid off workers will STILL be praising 0bama’s name after being laid off....”well at least I still have my wonderful government health care”. They will NEVER, EVER connect the cost impositions of HC with their being laid off, especially since there will be emergency legislation passed to extend their union unemployment benefits indefinitely after these workers are laid off. They’ll ultimately be better off. They simply will not have to work and will be able to collect essentially the same pay. EVEN IF they get a letter on AT&T letterhead in the same envelope as their layoiff notice informing them that their layoff is as a direct result of healthcare costs, they STILL won’t get it.
If we elected Hugo or Castro O’Reilly would say give a chance. Off topic a little.
Still think that Obie isn’t a commie?
Exactly! Layoffs and increases in prices are what is going to happen. I wonder how many jobs at AT&T equates to a billion dollars?
Where were these people before the vote?
First % is Dem amount, second is GOP and third is Special Interest.
If any of the CEOs are contributing lots to Dem, they need to pay for their stupidity.
NEWSMEAT Hall of Fame - US Business Executives
Federal Campaign Contributions Since 1978
updated every Monday
Contributor (click name for detailed report) Total Dem GOP Spec Int Election
James Sinegal Costco ceo $557,640 95% 0% 5% 62-32
Jamie Dimon JP Morgan Chase - Chairman, CEO $612,000 82% 8% 10% 61-28
Hassan Nemazee investment banker; political fundraiser $442,600 90% 2% 8% 59-30
Sheila Crump Johnson BET co-founder; philanthropist $354,300 96% 1% 3% 35-20
John Morgridge Cisco chairman $371,530 77% 5% 18% 36-26
George Zimmer Men’s Wearhouse founder, CEO $297,000 96% 1% 3% 32-19
Terry Semel Yahoo! chairman, ceo 2001-07 $616,218 45% 44% 11% 66-43
Eric Schmidt Google chairman, ceo $344,616 78% 12% 10% 22-10
Donna Karan fasion designer; Donna Karan Inc founder $275,718 91% 0% 9% 28-17
John Chambers Cisco ceo $1,423,791 14% 74% 12% 48-16
Sherry Lansing Paramount Studios chairman, ceo (1992-2004) $242,150 79% 0% 21% 52-24
Gary Winnick former chairman of Global Crossing Ltd $576,840 32% 57% 11% 95-65
Robert Iger Disney CEO $275,800 68% 9% 23% 48-10
Charles K Gifford Bank of America - Chairman 2004-05 $205,066 87% 5% 8% 35-21
Martha Stewart Martha Stewart Omnimedia founder; felon $182,224 96% 1% 3% 13-5
Howard Stringer Sony chairman, ceo $207,753 81% 1% 18% 21-13
Herbert Kelleher Southwest Airlines chairman, co-founder $603,338 27% 61% 12% 187-48
Michael Eisner Disney ceo 1984-2005 $284,843 55% 14% 31% 114-47
John Tyson Tyson Foods chairman, ceo $447,890 35% 15% 50% 138-65
William Lauder Estee Lauder Companies - CEO $190,900 78% 11% 11% 38-31
Kenneth Cole Kenneth Cole Productions chairman, ceo $160,200 91% 0% 9% 18-5
Norman Hsu fashion industry executive; political fundraiser; convicted fraudster $171,600 84% 0% 16% 24-7
Brian Roberts Comcast chairman, ceo $321,765 44% 20% 36% 41-14
Lloyd Blankfein Goldman Sachs Chairman, CEO 2006-present $210,890 65% 4% 31% 9-14
John W Thompson Symantec - Chairman, CEO; Golden State Warriors co-owner $183,560 72% 7% 21% 23-12
Howard Schultz Starbucks chairman, ceo $137,000 94% 1% 5% 9-9
Richard Fuld Lehman Brothers - Chairman, CEO 1994-2008 $203,950 63% 16% 21% 39-30
Jeffrey Brotman Costco chairman $153,625 79% 15% 6% 31-18
George David United Technologies - Chairman $341,000 32% 31% 37% 85-21
Ivan Seidenberg Verizon Chairman, CEO $195,341 56% 37% 7% 57-23
Charles Prince Citigroup chairman and CEO 2002-07 $195,642 51% 27% 22% 38-22
Richard Thalheimer The Sharper Image chairman, ceo $118,400 77% 4% 19% 21-13
Ben Cohen Ben and Jerry’s Ice Cream co-founder $138,473 65% 1% 34% 17-31
Sy Sternberg New York Life Insurance Co chairman, ceo $115,150 77% 18% 5% 37-10
Ray Irani Occidental Petroleum, chairman, CEO $393,975 20% 45% 35% 57-38
Franklin Raines Fannie Mae chairman, CEO 1999-2004 $97,500 70% 6% 24% 58-17
August Busch, III Anheuser-Busch - Chairman 1977-2006 $383,550 16% 69% 15% 48-41
Arthur Ryan Prudential chairman, ceo $220,000 28% 21% 51% 25-12
Tony Rezko businessman; convicted of fraud and money laundering $73,815 84% 15% 1% 20-17
Jim Koch Boston Beer Co founder and brewer $61,875 98% 1% 1% 24-7
Ken Lay former Enron chairman, ceo; convicted of securities fraud $752,950 8% 85% 7% 72-63
William Harrison JP Morgan Chase - Chairman, CEO 2001-06 $190,446 31% 36% 33% 21-18
Frederick Smith FedEx chairman, ceo $237,764 24% 71% 5% 24-15
John Mack Morgan Stanley chairman, CEO 2005-present $252,446 22% 50% 28% 39-26
Laurence Fink BlackRock Inc founder, CEO $62,400 83% 7% 10% 8-7
Sandy Weill Citigroup chairman $122,164 41% 13% 46% 28-15
Kenneth Chenault American Express chairman, ceo $134,642 37% 2% 61% 17-15
Several large companies have also posted special charges in the millions of dollars to cover just the first quarter of Obamacare. This is so depressing.
Unless there is an accounting “gimmick” somewhere in the Revenue Code.....A billion dollar “charge” would reduce their earnings, which in turn would REDUCE THEIR INCOME TAX LIABILITY. Now, that could be a “kick in the A**” to the treasury.
We don't care. And we don't have to. We're the phone company.
It’s going to be a long, hot summer. The eventual costs of this socialist legislation, the high taxes, rising food, gas prices, more lay-offs, fewer jobs will hit the Libs too. These idoits who voted for Obama bought into the notion that some how they lived and voted in a paralel universe and that because they voted for Obama only ‘’the rich Republicans’’ would ‘’have to pay’’ and somehow not they. Well, as sure as The Lord makes the rain to fall on the wicked as well as the just, the moonbats and “Bami lovers are going to get screwed too. They bought Obama to the ball, they gotta dance with him.
...all according to plan per the Kenyan Marxist; destroy private healthcare and force more people to sign up for government programs. When their very lives depend on him, the Community Organizer In Chief can get them to dance like marionettes.
It’s sad really, they’ll get less deductions for the goverment subsidies they all ready recieve.