AT&T may take $1.1 bln charge on DirecTV's Venezuela assets
Sept 29 (Reuters) - AT&T Inc may take a charge estimated at $1.1 billion related to DirecTV's Venezuela assets, the company disclosed Friday in a U.S. regulatory filing.
AT&T said in the filing it is evaluating whether to use a less preferential Venezuela currency exchange rate to value more than $1.1 billion in DirecTV assets in that South American country.
Those assets' value is currently based on an exchange rate of 12 Venezuelan bolivars per U.S. dollar. AT&T said it may value the assets at the so-called Simadi exchange rate of about 200 bolivars per U.S. dollar, according to the filing. Venezuela introduced the Simadi rate in February as part of a currency devaluation.
"If AT&T changes to the Simadi exchange rate, it will have a negative impact on reported revenues, operating income and the fair value of our investment in the Venezuelan subsidiary," the company said in the SEC filing on Friday.
(Reporting By Tim McLaughlin; Editing by Chizu Nomiyama)
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