“In 2024, we expect prior service credit amortization to be $2 billion or a decline of about $600 million.”

In context

“ccelerated depreciation on Nokia assets impacted by our Open RAN transformation, and we expect this impact to continue through 2026. The other half is incremental depreciation from our elevated 5G and fiber builds; headwinds of approximately $0.07 associated with higher non-cash pension and postretirement benefit costs, largely driven by declines in prior service credit amortization. As a reminder, prior service credit are the result of amendments made in prior years to our postretirement benefit plan that reduced benefits. Under GAAP, the impact of these amendments is recorded as a credit and equity and amortized into income over the expected service period of plan participants. In 2023, prior service credit amortization was $2.6 billion, which is a positive contribution to other income. In 2024, we expect prior service credit amortization to be $2 billion or a decline of about $600 million. Next year, we expect a more moderate decline in prior service credit amortization, continuing to decrease in the subsequent years as prior year plan changes become fully amortized. We have provided the projected future annual amortization by year in the footnotes of our supplemental financial trends document on our Investor Relations website. Importantly, we have continued to lower our pension obligation, including our transfer of certain pension assets and liabilities to Athene last year and we don't expect any material required contributions to our pension plans for the balance of this decade. In addition to these non-cash items, the guidance also includes $0.08 of other headwinds. These include $0.05 impact from lower spectrum related interest capitalization as we near completion of ou”