Microsoft writes off Nokia with $7.6 billion charge

nokia_brokenMicrosoft today announced a restructuring:

 

Microsoft will record a charge in the fourth quarter of fiscal 2015 for the impairment of assets and goodwill in its Phone Hardware segment, related to the NDS business. This charge has no impact on cash flow from operations and is nondeductible for income tax purposes. Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations. Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required.

Microsoft closed on the purchase of mobile phone maker Nokia in April 2014 paying $7.2 billion.

The write-off amount today equals the entire amount (and then some) of their purchase.

About Wayne Schulz

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.