Verizon Records Non-cash Goodwill Impairment Charge In Q4 Of About $5.8 Bln
(RTTNews) - Verizon Communications Inc. (VZ) revealed Wednesday in a filing Form 8-K with the U.S. Securities and Exchange Commission that it recorded a non-cash goodwill impairment charge in the fourth quarter of approximately $5.8 billion (before and after-tax), resulting in the goodwill balance of the Business reporting unit of $1.7 billion as of December 31, 2023.
This charge is related to secular declines, as well as continuing competitive and macroeconomic pressure, in wireline revenue across its customer groups experienced in its Verizon Business Group.
In the fourth quarter of 2023, Verizon completed a comprehensive five-year strategic planning review of its Business reporting unit resulting in lower financial projections compared to the prior year five-year strategic planning cycle.
The revised projections were used as a key input into the Business reporting unit's annual goodwill impairment test performed in the fourth quarter of 2023. The impairment test determined that the fair value of the Business reporting unit was less than its carrying value.
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