OVERLAND PARK, Kan. (AP) — Sprint Nextel (S), the nation's third-largest wireless provider, said Thursday it may have to write off up to $31 billion in value.
The company said that an annual review of its goodwill — what a company is worth beyond its assets — determined that the actual value of its wireless goodwill was less than what is recorded on its books, currently valued at $31 billion.
Now the company is determining how much of a blow the balance sheet will take.
"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 said in a securities filing.
The charge would be reported as part of its fourth-quarter financial results, expected to be released on Feb. 28.
Sprint Nextel said a write-down wouldn't affect the company's cash balance or future cash flows or leave the company in danger of violating its debt covenants.
http://www.usatoday.com/tech/wireless/2008-01-31-sprint-writedown_N.htm
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