Had these transactions been done at different times when valuations were lower with exactly the same share exchange ratios, the goodwill amounts would have been considerably smaller.
While we purchased highly valued shares, we were also in effect exchanging our highly valued shares at the same time so that none of the transactions resulting in the creation of large goodwill amounts resulted from a corresponding outlay of our cash.
"CCA's alternative plans for SPCA will necessitate a material review of SPCA's carrying value, and a writedown of its assets including brands and goodwill, the amount of which will be considered by the board and announced on February 18 at CCA's 2013 full-year results presentation," the statement said.
That way the company doesn't have to record goodwill — the amount paid for the company that exceeds the value of its assets — which depresses earnings as it's expensed.
Another $1.4 billion in cash was expended, Briloff says, in connection with the acquisition between June and December, which also went into the goodwill account, ratcheting that amount up to $6.8 billion.
Goodwill represents an amount paid above book value to buy something because the buyer perceives a greater value in that something.
"Based on the expected sales proceeds, the Company recorded an impairment of eBay Enterprise goodwill in the amount of approximately $786 million," the company noted.
This year I gave Goodwill a large amount of purple Ed Hardy slip on tennis shoes and two shawls from Anthropologie after my daughter M said, "Omg.
"There's always been an enormous amount of goodwill towards him in the dance scene but that goodwill is spreading," he says.
