Impairment

A write-down when an asset is worth less than its value on the books, for example equipment that will be retired early. It's a one-time hit to profit, not a cash payment.

Simple example

A company has an asset on its books at $100, but it's now only worth $60. It writes off the $40 difference as an impairment, which shows up as a loss that year.

$100Value on the books−$40$60What it's really worthWritten off
Made-up numbers, for illustration only.