In a three-year period, AT&T, the telecommunications provider, reported net income of $1.9 billion (Year 3), a net loss of $13 billion (Year 2), and net income of $7.7 billion (Year 1). Included in these numbers were the following special items:

Year 1: other losses ($7.5 billion); net loss from discontinued operations ($2.7 billion); and gain from accounting changes ($904 million).

Year 2: other losses ($400 million); net loss from discontinued operations ($12.2 billion); and loss from accounting changes ($856 million).

Year 3: other losses ($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.