Verizon Sees Fourth-Quarter Severance Charge $1.8 Billion to $2.1 Billion

(Bloomberg) -- Verizon Communications Inc. expects fourth-quarter severance charges related to buyout program reported on Dec. 10 and other headcount reduction plans, the company disclosed in a regulatory filing.

Verizon also announced that its review of Oath segment resulted in unfavorable adjustments to the unit’s financial projections. The company sees a non-cash goodwill impairment charge of about $4.6 billion, or $4.5 billion after tax in the fourth quarter of 2018. Oath’s good will balance was about $4.8 billion before the impairment charge.

Verizon will complete an internal reorganization of legal entities this month related to its wireless business. The company expects to recognize a non-recurring deferred tax benefit of about $2.1 billion in the fourth quarter that will cut its deferred tax liability by the same amount.

To contact the reporter on this story: Kimberly Yuen in New York at kyuen3@bloomberg.net

To contact the editor responsible for this story: Chakradhar Adusumilli at cadusumilli@bloomberg.net

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