[quote=briansd1]flu, that $1 billion non-cash charge that AT&T is taking does not cost them anything right now. It’s actually an advantage because it’s saving them immediately $350 million in taxes (assume 35% tax rate).
It’s like depreciation on a rental property. You take a depreciation write-off to reduce your income this year. It’s not costing you any cash.
Sure, in the future you have to spend money to maintain your property, but immediately, that depreciation deduction has no real economic impact.[/quote]
Oh, Brian what are we to do with you? Living with rose colored glasses.
