ImpairmentOfGoodwill
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HP expects to take $8 billion hit over its purchase of EDS
Normally shake ups in management and earnings outlooks don't really grab our attention. But, buried in the PR for just such moves from HP today was a particularly intriguing tidbit of information. In Q3 the company expects to be hit for $8 billion in pre-tax assets (but not cash) as part of an "impairment of goodwill" charge related to the purchase of Electronic Data Systems. That's in addition to a $1.5 billion charge it'll be absorbing following the layoff of some 27,000 employees in May. While the company has actually raised its earnings outlook for the quarter, we'll have to wait till August 22nd to find out just how much these two charges will affect the bottom line. For some more detail, check out the PR after the break.
