BE AEROSPACE INC (BEAV) 19.96 $0.03 (0.15%) 01:24PM (15 mins delay)

I was listening to the Vulcan Materials (VMC) call yesterday wondering when someone might ask the question I wanted answered. The company executed a massive acquisition last year, piling goodwill onto its balance sheet. With business down so much, the company, in conducting its annual "impairment test", might find that it needs to write down the carrying cost.

The company stated that it didn't need to make an adjustment this year, though clearly this is purely management discretion. This is important, because a writedown can trigger a violation of bank covenants (as debt to equity rises after the equity is reduced). Further, it can hurt valuation ratios such as price to book value.