If this acquisition was a business combination (100% acquisition) then goodwill might have been recognized as a result of paying more than what the tangible assets (and intangibles such as patents and copyrights) were really worth. On a yearly basis, all companies conduct impairment tests, which means that the value of the parent company's assets (Goodwill recognized from the acquisition) will go down and an impairment loss will hit the Income Statement, thus reducing your earnings.