TForce | UPS: Q4 2008 Earnings Call Transcript

[Dockworker]

There were two adjustments recorded in the fourth quarter 2008. The first was a $548 million good will impairment charge in our UPS Freight unit which is part of the supply chain and freight segment. This charge resulted from a number of factors. We acquired Overnight in 2005 when the economy was much stronger and valuations were higher.

We then invested in technology and operational improvements to enhance service and performance and expand product offerings. Unfortunately the current Freight environment has been a challenging one for new investments and customer focus is primarily on price. Long term, we believe our strategy is sound and will be viable when market conditions improve. We felt it prudent to reevaluate the good will associated with this acquisition and make a reduction based on current market comparisons and cash flow outlook.

In the fourth quarter 2007 if you remember, we recognized a $6.1 billion charge in US Domestic Package segment to withdraw employees from the central states pension plan as part of our long term labor contract with the Teamsters.

United Parcel Service, Inc. Q4 2008 Earnings Call Transcript

 

[Dockworker]

Goodwill Impairment Charge???