Item 8.01 Other Events.
On April 26, 2023, AT&T Inc. (AT&T) and State Street Global Advisors Trust
Company, as independent fiduciary of the AT&T Pension Benefit Plan (Plan),
entered into a commitment agreement with subsidiaries of Athene Holding Ltd.
(Athene) under which AT&T agreed to purchase nonparticipating single premium
group annuity contracts that would transfer to Athene certain of the Plan's
defined benefit pension obligations related to certain retirees, participants
and beneficiaries under the Plan.
The purchase of the group annuity contracts closed on May 3, 2023. The contracts
cover approximately 96,000 AT&T participants and beneficiaries (Transferred
Participants). Under the group annuity contracts, Athene, through its
wholly-owned subsidiaries Athene Annuity and Life Company and Athene Annuity &
Life Assurance Company of New York, made an irrevocable commitment, and will be
solely responsible, to pay the pension benefits of each Transferred Participant
beginning with their August 2023 pension payments. The transaction does not
change the amount of pension benefits payable to the Transferred Participants.
The purchase of the group annuity contracts was funded directly by assets of the
Plan via the pension trust underlying the Plan and required no cash or asset
contributions by AT&T. As a result of the transaction, AT&T expects to recognize
a one-time non-cash pre-tax pension settlement gain of approximately $350
million in the second quarter of 2023. The actual impact will depend on
finalization of the actuarial and other assumptions. AT&T transferred
approximately $8,050 million of benefit obligation and related plan assets upon
close of the transaction and the funded status of the Plan did not change due to
the transaction.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this filing contains financial estimates and other
forward-looking statements that are subject to risks and uncertainties. A
discussion of factors that may affect future results is contained in AT&T's
filings with the Securities and Exchange Commission. AT&T disclaims any
obligation to update or revise statements contained in this filing based on new
information or otherwise.
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Item 9.01 Financial Statements and Exhibits.
The following exhibits are filed as part of this report:
(d) Exhibits
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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