legacy cost

Legacy Cost

Ongoing costs to a company that come from funding activities that, by definition, do not increase revenue. Perhaps the most prominent example of legacy costs is the funding of pension plans. Legacy costs often accrue when a company takes on too many responsibilities in times of strong performance or when it takes on an appropriate level of responsibility and then its priorities change. Critics of legacy costs contend that they make industry uncompetitive, while proponents, notably labor unions, argue they are part of an employer's moral obligation to its employees.

legacy cost

The financial expense of supporting retiree benefits, including pensions, heath care, and insurance. Legacy cost is especially burdensome for mature companies with declining markets and a shrinking labor force.
References in periodicals archive ?
For the workers that are hired and kept on staff, there's an inherent legacy cost to keeping a full-time employee.
Emerging start-ups are utilising leading edge technologies to sidestep the constraints of legacy cost structures," Godfrey Sullivan, Partner & Managing Director of BCG Middle East, had said in report.
Emerging start-ups are utilising leading edge technologies to sidestep the constraints of legacy cost structures," said Godfrey Sullivan, Partner & Managing Director of BCG Middle East.
It did say, however, that it expects expenses "to decline in the high-single-digit percent range reflecting the savings from McClatchy's legacy cost reduction initiatives.
The second reason for abandonment was the desire to reduce legacy cost long-term.
com, is geared toward life organizations that seek to use BPO for open block customer service enhancement and speed to market, as well as entities that want to utilize BPO for closed block legacy cost reduction.
Additionally, post FIFA World Cup event there is likely to be a huge legacy cost in terms of excess hotel room capacity, dismantling of newly built stadiums to be given away to other developing nations, and extended metro lines.
The problem is that Rangers have a legacy cost base and a legacy debt that had been built up under the Murray years.
5 billion annually and manage the legacy cost going forward and allow the USPS to restructure its healthcare system to make it independent of federal programs, among others.
The trust fund will finance health-care costs for its retirees, eliminating a key legacy cost.
That actually exacerbated the legacy cost question.