Hoya reduces goodwill amortization sum

Hoya Corp. will have to amortize JPY 18 billion (USD 166.9 million) less in goodwill than it had expected when it absorbed subsidiary Pentax Corporation in March 2008.
The optical glass maker paid JP…

Hoya Corp. will have to amortize JPY 18 billion (USD 166.9 million) less in goodwill than it had expected when it absorbed subsidiary Pentax Corporation in March 2008. The optical glass maker paid JPY 104.6 billion to acquire Pentax, whose net worth was valued at JPY 54.6 billion at the time of the merger. Hoya consequently expected to amortize JPY 50 billion in goodwill over a 10-year period. That figure diminished to JPY 31.7 billion when a reappraisal of Pentax“s tax liabilities increased the firm“s net worth to JPY 72.9 billion. Hoya omitted the option of booking the JPY 18 billion as profit and leaving the goodwill unchanged on its books. Instead, it chose to reduce the amount of goodwill, which will be amortized at its Pentax division, easing the load on the unit. The firm booked JPY 1.3 billion in goodwill amortization in fiscal 2007. It will book JPY 3.1 billion annually over 10 years starting in the current fiscal year.