Goodwill impairment
AccountingDefinition
A non-cash write-down of acquired goodwill when its fair value falls below carrying value. Usually a confession that an old acquisition was overpaid. Big impairments hit reported earnings but don't change cash flows.
2018: GE wrote off $22B related to its 2015 Alstom Power acquisition. 2002: AOL-Time Warner wrote off $99B — biggest in corporate history.
2018: GE wrote off $22B related to its 2015 Alstom Power acquisition. 2002: AOL-Time Warner wrote off $99B — biggest in corporate history.