Recent Examples of amortization from the Web
Teva’s net debt has risen to 4.56 times its earnings before interest, tax, depreciation and amortization, the company said last week.
The result: Peabody’s Australian unit brought in 59 percent of the company’s $411 million in third-quarter earnings before interest, taxes, depreciation and amortization.
Anthem was responsible for 31% of Express Scripts’ adjusted earnings before interest, taxes, depreciation and amortization in the third quarter.
In fiscal 2017, the company reported $61 million in earnings before interest tax depreciation and amortization, down from $73 million in 2016.
Village Roadshow reported in August in its full fiscal-year results through May 31 that its share of earnings before interest, taxes, depreciation and amortization for Golden Village was $6.6 million.
Interest Deductibility The legislation would limit the corporate interest deduction at 30 percent of a company’s earnings before interest, tax, depreciation, and amortization.
Adjusted operating income before depreciation and amortization (OIBDA), another profitability metric, increased 6.9 percent in the third quarter to $339.8 million.
Products like negative amortization loans, which offered very low rates up front but then tacked that initial savings amount onto the loan itself, no longer exist.
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.
First Known Use of amortization
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.
Seen and Heard
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