January 20, 2009 / 11:21 PM / 9 years ago

UPDATE 1-OfficeMax sees more goodwill-related charges

ATLANTA, Jan 20 (Reuters) - 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 intangible assets.

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 for comment. (Reporting by Karen Jacobs, editing by Matthew Lewis)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below