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Don't Worry About AT&T's $25 Billion Write-Off

Don't Worry About AT&T's $25 Billion Write-Off

When a company acquires another company, any amount paid that's above and beyond the net asset value of the acquired company gets stuck on the acquiree's balance sheet as intangible assets. One class of intangible assets is goodwill, which isn't amortized and never expires. This is the predicament that AT&T (NYSE: T) found itself in during the fourth quarter.