U.S. companies are writing down more of their assets during the coronavirus pandemic than they have in years, the Wall Street Journal reported. Finance chiefs are reducing the value of company assets such as airplanes, cruise ships and movie theaters in response to changes in consumer behavior that threaten the viability of their business models. “You have assets at least for a period of time generating zero — or close to zero — revenue,” said Steve Hills, who heads up the technical accounting consulting unit at Stout Risius Ross LLC, an advisory firm. The 2,000 largest U.S. businesses by market capitalization — from oil companies to airlines and restaurant chains — have been recording higher pre-tax impairments as existing assets and investments produce poor returns amid the widespread economic downturn. Impairment charges totaled $261.7 billion for the first six months of the year, up 187.6% from the $91 billion booked during the same period in 2019. The first-half figure is also 29% larger than the $203.1 billion recorded in all of 2019, according to financial-technology firm New Constructs LLC.
