Struggling Sprint Nextel said it will write down almost $31 billion worth of goodwill value it has carried since it purchased Nextel in 2005.
In a filing with the Securities and Exchange Commission, Sprint said that an annual internal review of the goodwill shows the value it is carrying on its books now far exceeds the actual value of the acquisition of Nextel and a number of smaller affiliates around the same time.
"Based on the work completed to date, Sprint Nextel will be required to record a material, non-cash impairment charge that will represent a substantial portion, and potentially all, of the goodwill recorded on its balance sheet," the company wrote in the filing.
For more about Sprint's write down:
- take a look at this article from E-Commerce Times
Sprint Nextel cuts 4,000 jobs Report
Sprint appoints Dan Hesse CEO Report