T-Mobile saving cash for AT&T merger

2. OldHAG posted on 21 Nov 2011, 20:56 5 6

wow can't wait to see how great the iphone will run on the newly improve network

4. vvelez5 posted on 21 Nov 2011, 21:41 6 5

The deal will go through.

5. webOSdev2.0 posted on 21 Nov 2011, 21:45 4 7

Please go through

6. HTCOE posted on 21 Nov 2011, 23:47 3 3

I hope the deal doesnt go through. i love my tmobile the way it is. i left att a while back and it was the best decision i ever made to leave them for tmobile. might not have the best network in certain locations but cant beat their pricing, customer service, and they seem to get the coolest phones in my opinion

7. xiobnb posted on 22 Nov 2011, 00:35 1 3

plz do not go thru att sucks when i use it

9. elandrumiii posted on 22 Nov 2011, 01:17 1 2

TMO customers will be bent over just like customers on the losing end of the first Cingular/ATT merger. ATT has plainly said they want to kill the TMO 3G/4G network first so TMOcustomers will be forced to leave their plans in favor of the higer cost ATT plans with no form of unlimited data unless you find an ATT wifi hotspot will driving.

10. ardent1 posted on 22 Nov 2011, 01:27 1 1

German GAAP allows for the setting aside of reserves. Setting up reserves is not allowed under US GAAP because FASB wants those charges (unusally an impairment charge, or extraordinary item) to flow through the income statement, which impacts the earnings and then is reconciled with the equity accounts. Under US GAAP, non-operations related gains and losses are capture under FASB 130 or comprehensive income.

As a general comment, what this is means is DT is either managing its earnings or setting side funds today when the going is good for a charge at a later date. They are telling investors that in the event the T-Mobile-ATT deal is consumated, DT is afraid a number of their executives will jump ship (i.e. say adios to DT and hello to ATT) such that DT feels it will need to prepare golden handcuffs, i.e. the cash incentive so these kep employees will stay with their generous and benevolent DT empire. At the current run-rate of $64MM for the past two quarters, DT believes it may pay out as much as $128MM at time of said merger. Rather than record the charge when realized at the time of the actual merger, DT is allowed under German GAAP to set up this reserve today. If the merger doesn't go through, then DT has the ability to release these reserves and improve earnings at some future date in time.