Early Extinguishment of Debt

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Early Extinguishment of Debt

The payment of a debt in full before it is due. Early extinguishment of debt is good for the borrower because it relieves him/her of the debt, but it deprives the lender of interest he/she would have received otherwise. As a result, some lenders attach prepayment penalties to loans to disincentivize early extinguishment. Early extinguishment of debt is also called prepayment, which has other meanings as well. See also: Prepayment risk.
References in periodicals archive ?
CVS said the decrease reflects a $325 million decline in operating profit and $187 million in losses on pension settlements, partially offset by the absence of a $101 million loss on early debt extinguishment in the year-ago period.
02 per diluted share charge from early debt extinguishment at the parent company.
The Case of Gains/Losses from Early Debt Extinguishment," Accounting Review, November 2014, http://bit.
Factoring in the $521 million hit from early debt extinguishment, year-to-date pretax income edged up just 0.
GAAP earnings per share from continuing operations for the second quarter of 2011 included a loss from early debt extinguishment of USD0.
05 per share - were related to facility closures, asset impairment, a litigation settlement and early debt extinguishment.
The make-whole payment will be recorded as a loss on early debt extinguishment in second quarter of 2012.
5 million pretax charge for early debt extinguishment, as well
6 million pretax loss on early debt extinguishment and a $100,000 credit associated with restructuring costs.
98 per share, including amortisation of coal supply agreements and early debt extinguishment costs, for full year 2010.
to reduce its operating loss for the second quarter and first half of fiscal 2006, it took a onetime gain on early debt extinguishment to move the bottom line into the black for both periods.
9 million a year earlier (which excludes an $800,000 charge related to early debt extinguishment and a $100,000 gain on the sale of real estate--both after-tax).