https://investors.xerox.com/static-files/adf78906-cdf0-4fef-b8ce-21264d06bd9b
This is the part of the 10Q where they give up the game.
"We assess goodwill for
impairment at least annually during the fourth quarter and whenever events or changes in circumstances indicate that the carrying value may
not be recoverable."
OK, the last couple of years they crammed it down in Q3, not Q4. Last year in Q3 they did it for 1 Billion. Why lie about it, and why do it in Q3? Here's why, Q1,Q2, and Q3 are unaudited, where Q4 is the 10K yearly, and audited by PWC. They have been doing it in the off Q on purpose so they could write down the number they felt comfortable with. This year, Q3 was so bad on its own, they had to kick the can to PWC to do the audited Goodwill number.
They also claimed they looked at it in Q3 and the numbers didn't warrant a write down. Really? You heaped on debt, the margins collapsed, and the stock price is down 70% in the trailing 12 months. If not now, when? There is no way PWC will let them slide on the one report they sign off on. Worse still, PWC will do actual math, like actual professionals and write this down to a correct level, which is really bad for Xerox. Xerox's books are running on fumes, and a large write down throws everything out of whack. Xerox is effectively done when this number hits.