Accretion of Discount

Accretion of Discount

The increase in value of a security or other instrument as it approaches maturity. For example, suppose one buys a bond with a face value of $100 and pays $89. Because one is guaranteed to receive $100 when the bond matures, its value gradually increases between the purchase date and maturity. This increase is called the accretion of discount.
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The Authority historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, represents net income before interest, depreciation and amortization, gain or loss on disposition of assets, workforce reduction severance, pre-opening costs and expenses, impairment of Project Horizon, reassessment and accretion of discount to a relinquishment liability, gain or loss on early extinguishment of debt, other non-operating income and expense and gain or loss attributable to non-controlling interests.
18 per diluted share, before adjusting for the effect of preferred stock dividends and accretion of discount on preferred stock for the three months ended March 31, 2010, compared to a net income of $100,000, or $.
Also in 2009, the Company recorded accretion of discount related to its asset retirement obligation of $117,000.
The Authority historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, represents net income before interest, depreciation and amortization, loss on disposition of assets, impairment of Project Horizon, reassessment and accretion of discount to a relinquishment liability, gain or loss on early extinguishment of debt, other non-operating income and expense and gain or loss attributable to non-controlling interests.
For the three months ended March 31, 2015, preferred dividends on the Series B Preferred Stock and accretion of discount reduced net income attributable to common stockholders by USD214,000.
The final regulations provide guidance to holders and issuers of OID instruments as to when (and how much) income should be reported for accretion of discount or deducted as interest or amortized premium.
This reflects our policy of recording interest income, adjusted for amortization of premium and accretion of discount, on an accrual basis.
For the three months ended September 30, 2015, preferred dividends on the Series B Preferred Stock and accretion of discount reduced net income attributable to common stockholders by $214,000 compared to $174,000 for the three months ended September 30, 2014.
Excluding preferred stock dividends paid and accretion of discount on common stock warrants issued to the US Treasury, the company has reported a net income of USD1.
After adjusting for dividends and the accretion of discount on preferred stock under the Capital Purchase Program, net income available to common shareholders was $531,000, or $.
The Company defines adjusted EBITDA (loss) to exclude discontinued operations, debt issuance cost amortization, gain on change in warranty liability, accretion of discount on convertible notes, interest expense on convertible note, depreciation, amortization of licenses, non-cash stock-based compensation, restricted stock issuance expense and severance.
For the three months ended June 30, 2015, preferred dividends on the Series B Preferred Stock and accretion of discount reduced net income attributable to common stockholders by $215,000 compared to $59,000 for the three months ended June 30, 2014.