AOL Plans $190-Billion Charge for Time Deal

America Online Inc. said it plans to take about $190 billion in charges to earnings over 25 years, squeezing net profit, to account for its acquisition of Time Warner Inc. The proposed new company, AOL Time Warner, will take a $7.6-billion charge each year for 25 years to account for “goodwill” and other intangible assets in the purchase, according to a filing with the Securities and Exchange Commission. Goodwill is the excess a buyer pays over an acquired company’s book value. “Everybody knew it was going to be a huge number,” said Robert Willens, a tax and accounting analyst at Lehman Bros. Holdings Inc. The projected goodwill is more than the $146-billion value of AOL’s Time Warner acquisition. Final figures will be determined after the merger is completed.