YRC Worldwide to record non-cash impairment charges
YRC Worldwide Inc. said today that it expects to incur non-cash impairment charges during the fourth quarter of 2007 relating to prior acquisitions in the pre-tax range of $700 million to $800 million ($650 million to $750 million after taxes).
The Overland Park, Kan.-based trucking and logistics company said the impairment charges primarily relate to a decline in the estimated point-in-time fair value of the acquired former USF Corp. companies. The remainder of the anticipated charges is due to a reduction in the calculated fair values of USF and Roadway trade names.
The company does not expect the impairment charges to have any impact on its cash flow or availability of financing under existing debt facilities. 'While we are clearly disappointed with this development, it does not change our belief in the future outlook for any of our companies, particularly YRC Regional Transportation,' said Bill Zollars, YRC Worldwide's chairman, president and chief executive officer, in a statement.
YRC Worldwide brands include Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore.