Kinkos FedEx, the package delivery company, announced Monday that it would change the name of Kinko’s printing unit to FedEx Office. It also said it would charge nearly $900 million for this charge.
FedEx also announced that it will increase its quarterly cash dividend by 1 penny to 11 cents per share.
According to the company, which is based in Memphis and reported a non-cash impairment charge totaling $891 million in its fourth quarter fiscal year that ended May 31, which included $515 million for FedEx Kinko’s tradename and $367 million related to goodwill.
After taxes, the charge is $696 million or $2.22 per share.
FedEx did not include the charge in its May 9 announcement that it would lower its fourth-quarter earnings outlook to $1.45 – $1.50 per share from $1.60 – $1.80.
FedEx purchased Kinko’s for $2.4 billion in 2004.
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