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Goodwill is recorded as an asset on a company’s balance sheet to record the premium paid for an acquisition over its book value. The Kraft Heinz impairment charge was the seventh largest since 2009. Those issues include a material cash flow restatement and material weakness in internal controls in 2017, and an immaterial $40 million revenue recognition restatement related to the adoption of the new revenue recognition standard.īut it’s the staggering $15.4 billion impairment charge, made up of a $7.1 billion goodwill impairment in US Refrigerated and Canada Retail unit and $8.3 billion related to Kraft and Oscar Mayer intangible assets impairment, that drove the company to report a $12.6 billion loss after taxes. GE purchased metal 3D printing companies Arcam and Concept Laser in a landmark 1.4 billion investment back in 2016. By paying just a token dividend, GE ( GE) will. , the fifth-largest food and beverage company in the world formed with the merger in 2015 with the significant support of Warren Buffett’s Berkshire Hathaway and global investment firm 3G Capital, has had several accounting issues since its birth. Non-cash pre-tax goodwill impairment charges of 877 million related to Additive within GE's Aviation segment and 839 million related to GECAS within GE Capital, which together negatively impacted continuing EPS (GAAP) by 0.18. In a bid to fix GE’s debt-riddled balance sheet, Culp announced the company will cut its quarterly dividend from 12 cents a share starting in 2019. The details of what that issue could be were not provided in the earnings release or on the conference call,” wrote Audit Analytics. “In other words, there was another outstanding issue that triggered SEC scrutiny. Research firm Audit Analytics, in a note to subscribers on Friday, pointed out that, based on the company’s disclosure, the SEC’s investigation preceded the discovery of the error. The SEC's review of the power writedown, driven largely by the Alstom acquisition, joins the agency's scrutiny of a 6.2 billion charge for the accumulation of insurance liabilities at GE Capital. See also: Warren Buffett’s Berkshire Hathaway stock falls as big bet on Kraft Heinz sours Read: Kraft Heinz loses a lot of cheese as earnings send stock plunging to record low