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Cash Charge

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Cash Charge
A charge off made by a company against earnings that requires an initial outlay of cash.

Notes:
Oftentimes, when a company is attempting to downsize or increase efficiency, it will be required to take one time charges that it does not reasonably expect to occur on a consistent basis. In these events, companies will document an extraordinary charge on their balance sheets and take a charge against earnings.

The use of early retirement packages is an example of such charges. These are used to lure employees into retirement in order for the company to hire cheaper workers.


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During its current fiscal first quarter, Andrea will record a non-cash charge of about $300,000, net, related to the reversal of deferred rent charges, which will be partially offset by the write off of certain fixed assets, and a cash charge approximating $225,000 to be recorded for lease termination costs.
2 million cash charge for realized losses (a combined total of $41.
 
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