I wonder if the production costs increased or decreased in this case? https://www.oxfordlearnersdictionaries.com/definition/english/write-down_2

The company lost a whopping $15.25 a share in the fourth quarter on an adjusted basis that took Wall Street by surprise; analysts had forecast a loss of $1.80 share. The company also booked a $468 million write-down against “abnormal production costs” on the 737 Max program.

Source: https://www.cnbc.com/2021/01/27/boeing-ba-q4-2020-earnings.html

2 Answers 2


The sentence is saying that the company deducted $468 million from its bottom line (its balance sheet) to pay for higher than normal production costs. Thus the value of the company and its shares fell.

If the production costs had decreased, the company would have anticipated higher profits (or a smaller loss) rather than lower profits .


"Write-down" is accounting terminology meaning to adjust a value downwards to allow for depreciation. Depreciation is normally allowed against the assets of a business. Income and expenditure (costs) cannot depreciate as they are fixed at the point of transaction, so it does not relate directly to the production costs mentioned.

The first sentence says that share prices in the business fell, which means the value of the business as a going concern has fallen. It seems like the second sentence is pointing at the same kind of depreciation. High production costs led to a loss in profit, which in turn resulted in a "write-down" of the business's value.

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