amortization

[ am-er-tuh-zey-shuhn, uh-mawr- ]

noun

1. an act or instance of amortizing a debt or other obligation.
2. the sums devoted to this purpose.

amortization

/ əˈmɔːtɪzmənt; əˌmɔːtaɪˈzeɪʃən /

noun

1. 1. the process of amortizing a debt
   2. the money devoted to amortizing a debt
2. (in computing the redemption yield on a bond purchased at a premium) the amount that is subtracted from the annual yield Compare accumulation

amortization

1. A term that refers either to the gradual paying off of a debt in regular installments over a period of time or to the depreciation of the “book value” (that is, the standard assessed value) of an asset over a period of time.

Derived Forms

• amortizement, noun

Word History and Origins

Origin of amortization¹

First recorded in 1665–75, amortization is from the Medieval Latin word a(d)mortizātiōn- (stem of admortizātiō ). See amortize, -ation

Example Sentences

The company, whose main business revolves around connecting prospective homebuyers with real estate agents, reported $125 million in adjusted earnings before interest, taxes, depreciation and amortization, beating the average analyst estimate of $104 million.

From Seattle Times

Pilot alleges that, after taking control of the company, Berkshire adopted “pushdown accounting,” which forced Pilot to take on higher depreciation and amortization costs and resulted in lower net income.

From Seattle Times

Earnings, adjusted for stock option expense and amortization costs, came to 16 cents per share.

From Seattle Times

The Haslams said Berkshire’s decision to shift to something called “pushdown accounting” this year forced Pilot to take on higher depreciation and amortization costs and that resulted in lower net income.

From Washington Times

Varsity Brands generates more than $400 million in 12-month earnings before interest, taxes, depreciation and amortization, the sources added, asking not to be identified because the matter is confidential.

From Reuters

Related Words

• amount
• award
• cash
• deposit
• disbursement
• fee
• outlay
• pension
• premium
• refund
• reimbursement
• remittance
• reparation
• repayment
• restitution
• return
• reward
• royalty
• salary
• settlement