In a three-year period AT&T. the telecommunications provider, reported net income of $1.9 billion (Year Three), a net loss of $13 billion (Year Two), and net income of $7.7 billion (Year One). Included in these numbers were the following special items:

Year One: Losses from equity investments ($7.5 billion); net loss from discontinued operations ($4 billion); gain on disposition of discontinued operations ($1.3 billion): and gain from accounting changes ($904 million).

Year Two: Losses from equity investments ($400 million): net loss from discontinued operations ($14.5 billion); gain on disposition of discontinued operations ($1.3 billion); and loss from accounting changes ($856 million).

Year Three: Losses from equity investments ($12 million); net loss from discontinued operations ($13 million); and gain from accounting changes ($15 million).

(a) Describe each special item.

(b) Comment on AT&T’s performance across the three-year period.