Recent Examples of amortization from the Web
Adjusted earnings before interest, taxes, depreciation and amortization this year will be 570 million euros ($660 million) to 600 million euros, compared with a previous forecast of 640 million euros.
During his tenure, earnings before interest, taxes, depreciation and amortization hit $1 billion.
That's based on a 4.5 multiple of its forward earnings before interest, taxes, depreciation and amortization -- a bit below what Staples Inc. received in a recent LBO.
Earnings before interest, taxes, depreciation and amortization rose 17% in the division.
On a group level, adjusted earnings before interest, taxes, depreciation, amortization this year will probably be in line with 2017, while sales will be little changed at about 35 billion euros ($43 billion), Bayer said.
The essence of California’s pension crisis was on display last week when the California Public Employees Retirement System made a relatively small change in its amortization policy.
The project, which aims to have nearly 700 homes, was funded through a community mortgage program, with residents paying a monthly amortization of up to 2,000 Philippine pesos ($38).
Spectrum’s battery and portable lighting business generated revenue of $866 million in 2017 and earnings before interest tax, depreciation and amortization (EBITDA) of $169 million, the companies said.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'amortization.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of AMORTIZATION
What It Is
How It Works
Let's assume Company XYZ owns the patent on a piece of technology, and that patent lasts 15 years. If the company spent $15 million to develop the technology, then it would record $1 million each year for 15 years as amortization expense on its income statement.
Alternatively, let's assume Company XYZ has a $10 million loan outstanding. If Company XYZ repays $500,000 of that principal every year, we would say that $500,000 of the loan has amortized each year.
Why It Matters
The length of time over which various intangible assets are amortized vary widely, from a few years to as many as 40 years. As a general rule, an asset should be amortized over its estimated useful life, or the maturity or loan period in the case of a bond or a loan. If an intangible asset has an indefinite life, such as goodwill, it cannot be amortized.
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