Sprint Nextel considering USD31bn write-down on wireless assets

1 Feb 2008

Sprint Nextel, the third largest wireless provider in the US by providers, has announced it may write off up to USD31 billion in value, most of which is likely to be related to its acquisition of Nextel. In a filing with the Securities and Exchange Commission (SEC), Sprint Nextel said the write off could include virtually all of the USD30.7 billion the company keeps on its books. ‘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,’ it said. The charge would be reported as part of its fourth-quarter financial results, expected to be released on 28 February. Sprint Nextel confirmed though that the write-down would not adversely affect its cash balance or future cash flows or leave it at risk of violating its debt agreements.

United States, Sprint Corporation (now part of T-Mobile US)