Learn · Explainer
Asset impairments
When a company writes an asset down, how the test works, and the charges recorded in the latest year, including Pfizer's 10-K.
The short answer
An impairment is a write-down of an asset when it isn't expected to recover the amount sitting on the balance sheet. The loss goes through the income statement in that period, and the asset's carrying amount is reduced. It is usually a non-cash charge, so it does not use cash in the year it is recorded. 17 of the covered companies reported an asset impairment charge in their latest fiscal year.
When an asset is impaired
For long-lived assets that are depreciated or amortized (plant, equipment, and many intangible assets) US rules first ask whether events or changes in circumstances suggest the carrying amount may not be recoverable. If the asset's expected undiscounted cash flows are less than its carrying amount, it is written down to fair value, and the loss is recorded. The asset cannot later be written back up. Goodwill is tested separately, at least once a year, under a different model.
- A plant that will be closed, a brand whose sales have fallen, or in-process research that is no longer expected to be completed can all trigger a test.
- The charge is non-cash. Cash was spent when the asset was acquired or built; the impairment acknowledges that some of that value is not expected to come back.
- Because the charge can be large, companies often highlight it as a one-time item and exclude it from non-GAAP earnings. The GAAP income statement still includes it.
An example: Pfizer
Pfizer's fiscal 2025 10-K describes certain asset impairments of $4.9 billion, recorded in other income and deductions. The note lists in-process research and development and other intangible assets among the items written down. On the income statement this is a $4.9B charge for the year.
Source: Pfizer 10-K for fiscal 2025, filed Feb 26, 2026
Altria's 10-K describes a different mix: non-cash, pre-tax impairment charges of $2,128 million to reduce the carrying values of the e-vapor reporting unit's goodwill and definite-lived intangible assets. When a charge includes goodwill, the goodwill page is the place to read about that part of the test.
Companies that recorded a charge
| Company | Asset impairment charges |
|---|---|
| PfizerPFE | $4.9B |
| General MotorsGM | $2.6B |
| AltriaMO | $2.1B |
| AmazonAMZN | $1.3B |
| DanaherDHR | $562M |
| IntelINTC | $522M |
| T-MobileTMUS | $278M |
| Johnson & JohnsonJNJ | $204M |
| UPS | $201M |
| ChevronCVX | $133M |
| American TowerAMT | $101M |
| MondelezMDLZ | $85M |
| 3MMMM | $51M |
| BoeingBA | $45M |
| ConocoPhillipsCOP | $26M |
| FedExFDX | $23M |
| Coca-ColaKO | $12M |
Asset impairment charges reported for the latest fiscal year, from each 10-K, sorted by amount. Only companies with a positive amount on this line are listed. The line can include impairments of property, intangible assets and, at some companies, other long-lived items; goodwill impairments are often reported separately and are covered on the goodwill page.
Common questions
What is an asset impairment?
A write-down of an asset when it isn't expected to recover its carrying amount. The loss is recorded on the income statement and the asset is carried at the lower amount going forward.
Is an impairment a cash cost?
Usually not in the year it is recorded. The cash was spent when the asset was bought or built. The charge reduces reported profit and the asset's book value.
How is this different from goodwill impairment?
Goodwill is tested at the reporting-unit level under a separate rule and is not amortized. Other long-lived assets are first tested for recoverability, then written down to fair value if they fail.
Can an impairment be reversed later?
Not under US GAAP for these assets. Once written down, the new carrying amount is the starting point for future depreciation or amortization.
Where is the charge in the 10-K?
On the income statement, sometimes as its own line and sometimes inside another expense line, with the details in the notes. The cash flow statement adds the charge back in the operating section because it is non-cash.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 10, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.