8-K

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549-1004

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): October 18, 2004

______________________

MCI, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	001-10415	20-0533283
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
22001 Loudoun County Parkway, Ashburn, Virginia		20147
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code  (703) 886-5600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.06.	Material Impairments .
	On October 18, 2004, MCI, Inc. (the “Company”) issued a press release announcing that due to recent regulatory decisions impacting its consumer business and an increasingly competitive industry environment, the Company will record non-cash impairment charges of approximately $3.5 billion. The Board of Directors approved this action on October 15, 2004. A copy of this press release is attached as Exhibit 99.1 hereto and incorporated by reference herein.
Item 9.01.	Financial Statements and Exhibits.
	(a)	Financial Statements of Businesses Acquired.
		Not applicable.
	(b)	Pro Forma Financial Information.
		Not applicable.
	(c)	Exhibits.
		Exhibit No.	Description of Exhibit
		99.1	Press release dated October 18, 2004

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SIGNATURE

      Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MCI, INC.
(Registrant)
By:	/s/ Eric R. Slusser
	Name:	Eric R. Slusser
	Title:	Senior Vice President and Controller

Dated: October 18, 2004

EX-99.1

Exhibit 99.1

MCI ANNOUNCES IMPAIRMENT CHARGES,
DIVIDEND DISTRIBUTION

Ashburn, VA, October 18, 2004 – MCI, Inc. (NASDAQ: MCIP) today announced that its Board of Directors approved two financially-related actions at its regularly scheduled meeting.

1.	Due to recent regulatory decisions impacting its consumer business and an increasingly competitive industry environment, the Company will record non-cash impairment charges of approximately $3.5 billion.
2.	MCI will distribute a quarterly dividend of $.40 per share on December 15, 2004 to shareholders of record as of December 1, 2004.

Impairment Charges

MCI will record non-cash impairment charges of approximately $3.5 billion in its third-quarter 2004 results of operations. The charges will include approximately $3.25 billion to impair property, plant and equipment and other intangibles and approximately $260 million to impair the Company’s indefinite-lived intangible asset related to its trade name.

The Company determined its impairment charges in accordance with Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” and SFAS No. 142, “Goodwill and Other Intangible Assets.” At the end of the second quarter 2004, MCI had approximately $9.1 billion in property, plant and equipment (net) and approximately $1.8 billion in intangible assets (net). The impairment charge is estimated to reduce depreciation and amortization expense by approximately $220 million in the second half of 2004.

Dividend Distribution Authorized

MCI’s Board of Directors has declared a quarterly distribution of $.40 per share, payable December 15, 2004, to shareholders of record as of December 1, 2004. The distribution is a return of capital supported by the excess cash declared by the Board of Directors in August 2004 pursuant to MCI's Plan of Reorganization.

About MCI

MCI, Inc. (NASDAQ: MCIP) is a leading global communications provider, delivering innovative, cost-effective advanced communications connectivity to businesses, governments and consumers. With the industry’s most expansive global IP backbone, based on the number of company-owned points-of-presence, and wholly-owned data networks, MCI develops the converged communications products and services that are the foundation for commerce and communications in today’s markets. For more information, go to www.mci.com.

Forward-Looking Statements

This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations. Factors that may cause actual results to differ materially from management's expectations include economic uncertainty; the effects of vigorous competition, including price compression; the impact of technological change on our business, alternative technologies, and dependence on availability of transmission facilities; risks of international business; regulatory risks in the United States and internationally; contingent liabilities; uncertainties regarding the collectibility of receivables; risks associated with debt service requirements and our financial leverage; uncertainties associated with the success of acquisitions; and the ongoing war on terrorism. More detailed information about those factors is contained in the Company's filings with the Securities and Exchange Commission, including its Form 10-K under "Risk Factors."

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