Windstream Corp. on Wednesday announced that it anticipates a pre-tax, non-cash charge of $163 million in the fourth quarter because the telecommunications company is changing its method of recognizing gains and losses for its pension plan.
Windstream will recognize gains and losses in the year in which they occur rather than amortized over a period of years. Windstream also said it retrospectively adjusted certain prior year financial results to conform to the new method.
"This change will improve transparency in Windstream's financial results by more quickly recognizing the effects of economic and interest rate trends on plan investments and assumptions," the company said.
Windstream attributed the anticipated loss, in part, to "lower than expected returns on plan assets."
The company cautioned that the accounting change won't impact its cash flow or pension funding requirements. Windstream also said it doesn't anticipate making a contribution to its pension plan this year.
Windstream will announce its fourth-quarter results Feb. 22.
