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Ericsson takes $1.8bn in writedowns, hitting digital services

Ericsson last week said it would book SEK14.2bn ($1.8bn) in charges after carrying out impairment testing and the revaluation of US tax assets. Besides booking an impairment writedown of SEK13.2bn ($1.6bn) Ericsson took a SEK1bn ($120m) non-cash tax charge because of changes to US corporate income tax rates. The writedowns acknowledge that some of its segments are now worth less than Ericsson paid for them. The digital services sector, including cloud, took the biggest hit, at $830m of goodwill and $50m of intangible assets. The ‘Other’ segment saw impairments of $750m of goodwill, $40m intangible assets and $50m fixed assets. This division includes the media business, licensing revenues, power modules, mobile broadband modules and Ericsson-LG Enterprise, which operates out of…

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