Cash Charge

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Cash Charge

A one-off expense that a company pays, especially when it is attempting to improve its efficiency. For example, if a company wishes to find less expensive employees, it may offer retirement plans to its current employees and take the expense as a cash charge. Cash charges are almost never repeated. A cash charge is reported on a balance sheet as an extraordinary item.
References in periodicals archive ?
The restructuring charge will be included in PPG's third quarter 2013 financial results, and it is comprised of cash charges totaling approximately $97 million and non-cash charges of about $5 million.
The restructuring will mean $20 million (pounds 11.04 million) in cash charges or $ 1 5 million (pounds 8.28 million) after tax, the company said.
The plant closure will result in first-quarter restructuring charges of between $8 million and $10 million from asset devaluation and about $4 million cash charges related to termination benefits and other expenses that include costs to close the plant and consolidate operations.
To restructure operations primarily located in high cost regions, the company took a one-time, after-tax charge in the fourth quarter of fiscal year 2001 of $276 million, of which less than $40 million were cash charges. The plan permanently reduces overall capacity by approximately 15 percent and reduces headcount by approximately 10 percent.
The non cash charges are worth USD10m after-tax, or USD0.14 per diluted share.
The company expects to substantially complete this rationalization plan during 2022 and estimates the total pre-tax charges associated with this plan to be at least $135M, of which approximately $125M is expected to be cash charges primarily for associate-related costs and approximately $10M is expected to be non-cash charges primarily related to asset write-offs and accelerated depreciation.
Q4 Non-Core Cash Charges include: $2.4M prepayment fee on early redemption of senior secured notes, consistent with Heritage's prior disclosure in December 2018; $1.7M of costs and fees associated with repurchases of convertible notes and refinancing of senior secured notes.
The Company will incur notice period and other people-related charges of approximately $1.5M and incur cash charges for equipment relocation and related costs of approximately $2.3M.
The Company's estimates for pre-tax charges over the next three fiscal years is a range of $170 million - $190 million, of which $80 million - $95 million are expected to be cash charges. In Fiscal 2019, the Company expects net costs savings of $85 million - $100 million, with further incremental net cost savings of $115 million - $125 million by the end of the three-year program.
The Company's estimates for pre-tax charges over the next three fiscal years is a range of $170 million - $190 million, of which $80 million - $95 million are expected to be cash charges. In Fiscal 2019, the Company continues to expect net costs savings of $85 million - $100 million, with further incremental net cost savings of $115 million - $125 million by the end of the three-year program.
The Company's preliminary estimates for pre-tax charges related to cost reduction activities over the next three fiscal years is a range of $170 million - $190 million, of which $105 million - $120 million are expected to be cash charges. In Fiscal 2019, the Company continues to expect net costs savings of $85 million - $100 million with further incremental net cost savings of $115 million - $125 million by the end of the three-year program.
The company said that it expects to incur pre-tax cash charges in the range of USD14m to USD17m, a majority of which will be recognized over the next three fiscal quarters.