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Qwest sees $40.8 billion in charges
Phone company outlines a slew of charges reflecting the declining value of its assets.
October 28, 2002: 5:53 PM EST

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.  Top of page




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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.