If you are following USG in the financial news you already know that USG is going through some painful quarterly returns. Stock news with investors looks good though, so they are still healthy, however they are warning of a huge write-off in goodwill impairments.
If you want to know what 226 million dollars in goodwill impairment write offs are, you aren't the only one. We'll do our best to explain the basics- it looks like companies are required by law to show investors what they are doing when they purchase other companies. In a comparison to purchasing materials for doing business, companies can write off purchases over time, like they do trucks or office equipment. In a similar way they can write off over time the amount of value they perceived they'd get with the purchase of another company or business.
When companies purchase other companies it isn't usually a hostile takeover, which means the perceived value is sometimes inflated. When you purchase another company and you get their customer list, without actually converting their customers to your customers all you have is a list. These hopeful investments have to be laid out to investors. And as we are seeing, sometimes expectations sour.
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