Sprint loses $31B reputation?

Sprint said it will take a material goodwill impairment charge, which could amount to all of the $31 billion goodwill on its balance sheet. Sprint reviewed the net book value of its wireless unit and found that it exceeds the fair market value of the unit, which basically means that the intangible assets like good customer relations, good employee relations and the strong brand name of Sprint's wireless unit have depreciated. Goodwill also refers to the gap between what a company pays for its acquisitions (Nextel) and what those acquisitions are actually worth. The carrier plans to report the change in its fourth quarter results, but it will not affect its current cash balance or force it to violate any of its debt arrangements.

For more on Sprint depreciated reputation:
- read this article from the Kansas City Star

Related:
Sprint mulling thousands of job cuts
Sprint appoints Dan Hesse president and CEO

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