Negative Goodwill

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Dictionary Says

Definition of 'Negative Goodwill'

A gain occurring when the price paid for an acquisition is less than the fair value of its net tangible assets. Negative goodwill implies a bargain purchase. Negative goodwill may be listed as a separate line item on the acquiring company's balance sheet and may be considered income. For the purchased company, negative goodwill often indicates a distress sale, and the unfavorable sale conditions lead to a depressed sale price.
Investopedia Says

Investopedia explains 'Negative Goodwill'

Negative goodwill is based on the concept of goodwill, an intangible asset that represents the worth of a company's brand name, patents, customer base and other items that are difficult to price but that help to make a company valuable. Most of the time, a company will be purchased for more than the value of its tangible assets, and the difference is attributed to goodwill. When the price paid is less than the actual value of the company's net assets, you have negative goodwill.

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Search results for

'Negative Goodwill'

  • Can You Count On Goodwill?

    http://www.investopedia.com/articles/fundamental/04/011404.asp
    ... for Goodwill If a business is acquired for a price below the fair value of its tangible
    assets, the margin is sometimes called "badwill" or negative goodwill. ...

  • What does negative shareholder equity on a balance sheet mean?

    http://www.investopedia.com/ask/answers/08/negative-shareholder-equity.asp
    ... Other situations that can contribute to negative shareholder equity are ... substantial
    adjustments to intangible property (patents, copyrights, goodwill and the ...

  • SUPERVALU's Struggles

    http://stocks.investopedia.com/stock-analysis/2011/SUPERVALUs-Struggles-SVU-KR-SWY-WMT-TGT0114.aspx
    ... Selling, general & administrative (SG&A) costs also only fell 1.6% and a hefty goodwill
    impairment sent operating income into negative territory. ...

  • How To Evaluate A Company's Balance Sheet

    http://www.investopedia.com/articles/basics/06/assetperformance.asp
    ... If the deduction of purchased goodwill has a material negative impact on a company's
    equity position, it should be a matter of concern to investors. ...

  • The Bank Of America Enigma

    http://stocks.investopedia.com/stock-analysis/2011/The-Bank-Of-America-Enigma-BAC-C-JPM-USB-STD0126.aspx
    ... billion in preferred stock dividends, overall net income was negative $3.6 billion,
    or a loss of 37 cents per diluted share. Excluding goodwill charges, the ...

  • Impairment Charges: The Good, The Bad and The Ugly

    http://www.investopedia.com/articles/analyst/110502.asp
    ... New accounting regulations that require companies to mark their goodwill to market
    will ... has high (greater than 70%) leverage ratios and negative operating cash ...

  • Supervalu's Turnaround Is Working

    http://stocks.investopedia.com/stock-analysis/2011/Supervalus-Turnaround-Is-Working-SVU-KR-WMT-WFMI-SWY0415.aspx
    ... earnings were dismal at a loss of $1.5 billion, or negative $7.13 per diluted share.
    However, this included a hefty $1.9 billion goodwill impairment charge. ...

  • Sell Off at Kroger Overdone

    http://stocks.investopedia.com/stock-analysis/2009/Sell-Off-at-Kroger-Overdone-KR-WMT-TGT-SBU-SWY1210.aspx
    ... The company also took a hefty $1.1 billion goodwill impairment charge during the ...
    That sent reported earnings into the red at negative $1.35 per diluted share. ...

  • Take A Pass On The Pantry

    http://stocks.investopedia.com/stock-analysis/2010/Take-A-Pass-On-The-Pantry-PTRY-CASY-KFT-K-HSY1217.aspx
    ... fell. This combined with a goodwill impairment charge and other impairment
    charges pushed net income into negative territory. Net ...

  • JPMorgan Chase Posting A Very Reasonable Return

    http://stocks.investopedia.com/stock-analysis/2011/JPMorgan-Chase-Posting-A-Very-Reasonable-Return-JPM-C-GS-COF-USB1017.aspx
    ... fell 4% to about $4.3 billion as only private equity posted negative profits ... Tangible
    book value, which subtracts out goodwill and other intangible assets from ...

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