Tyson Foods knocks some value off Circle Foods

Three years ago, Tyson Foods, the big Arkansas food company, purchased San Diego's Circle Foods, which makes foods such as tortillas and India flatbreads that can be cooked quickly in the home.

When a company makes an acquisition, it gives the name "goodwill" to the price it pays exceeding the tangible assets of the acquired company. These can be positive qualities, such as a strong brand name. However, if the value of the goodwill goes down, that past purchase price might be deemed to have been excessive. In such cases, the acquiring company takes an impairment charge on its balance sheet.

In its most recent quarterly report, Tyson took a $52 million impairment charge on its Circle Foods purchase. Most of the charge, $43 million, relates to property, plant and equipment.