NU Online News Service, April 19, 1:29 p.m. – PacifiCare Health Systems Inc., Santa Ana, Calif., says it will be taking a one-time, $897 million, non-cash charge to adjust the “goodwill” value of past acquisitions carried on its books.
PacifiCare, a large managed care company, is taking the goodwill charge to comply with a new accounting rule that regulates the methods public companies use to account for acquisitions.
In a separate announcement, PacifiCare says its lenders have agreed to push the maturity of $735 million in debt back two years, to January 2007, from January 3, 2005.
To qualify for the extension, PacifiCare must pay off at least $203 million in revolving debt before Jan. 2, 2003. The lenders will also reduce the borrowing capacity of PacifiCare’s revolving debt account by $47 million.