ATLANTA Jan 20 Retailer OfficeMax OMX.N said
on Tuesday that a company analysis tied to its second quarter
has determined that additional charges for impairment of
goodwill are necessary.
Additional reductions in the carrying value of goodwill and
trade names bring the total aggregate non-cash impairment charge
for the second quarter to about $1 billion pretax, the retailer
said in a Securities and Exchange Commission filing.
In late July, when OfficeMax posted a net loss of $894.2
million for its second quarter ended June 28, it cited a $935.3
million pretax charge tied to impairment of goodwill and
Goodwill refers to an intangible but recognized business
asset such as a symbol.
OfficeMax has taken steps to save costs in recent months,
including suspending its dividend and staff cuts, as a pullback
in consumer spending hurts office supply retailers.
The retailer also said in its filing that it was assessing
its recent operating performance and other factors to evaluate
the value of intangible assets for potential additional
impairment at year-end. It added that any additional charges
tied to this review would also be non-cash.
A company representative did not immediately return a call
(Reporting by Karen Jacobs, editing by Matthew Lewis)