DENVER (Reuters) -
Telephone company Qwest Communications International Inc., which faces federal and criminal probes of its accounting, said on Monday it may take charges of up to $40.8 billion to write down the value of its goodwill and network assets.
The charges include about $30 billion to write down the value of goodwill and other intangibles, and about $10.8 billion to reflect the declining value of its high-speed fiber-optic network and customer lists and product technology associated with local telephone operations, the company said.
Qwest (Q: Research, Estimates) said it completed its review of optical capacity sales and decided to adjust the accounting of $531 million in cash sales. It previously said it would adjust the accounting of $950 million in "swaps" of optical capacity with other carriers.
As a result, it will restate a total of $1.48 billion in optical capacity deals since its June, 2000 acquisition of local telephone company US West. It does not expect sales of optical capacity assets in 2002 to affected.
Denver-based Qwest said it would also adjust 2000 and 2001 revenues in its wireless division to recognize certain promotional campaigns, involving complementary equipment and minutes-of-use packages. That will result in a decrease of about $120 million to the restated 2001 and 2000 financial statements, it said.