AOL Time Warner to take $54 billion charge

Media giant AOL Time Warner disclosed that it will take a $54 billion noncash charge for the first quarter of 2002, according to the company's annual report to the Securities and Exchange Commission. The charge reflects the adoption of new accounting standards implemented this year and will not affect earnings.

Executives disclosed in January that the company would incur a $40 billion to $60 billion noncash charge, largely from the depreciation of the company's stock value since the merger of America Online and Time Warner was announced in January 2000. The company also said it would not meet its aggressive financial estimates for 2001 and retreated to more conservative expectations.