Non-Cash Charge

(redirected from Noncash Expense)

Non-Cash Charge

Any charge to a company that does not result in a cash outlay. Examples of non-cash charges include depreciation and amortization. For example, depreciation reduces the value of an asset but does not require a reduction in the cash on hand. A non-cash charge reduces a company's earnings.
References in periodicals archive ?
This noncash expense for the Company was approximately $4.8 million.
Because share-based compensation is generally a noncash expense, many companies and financial analysts ignore this expense when restating earnings.
Adjusted EBITDA (which excludes such items as noncash expense for share-based awards, indirect costs related to stock offerings, LIFO and other noncash charges) advanced 6.9% to $476.7 million.
RXi posted a noncash expense of $9.6 million related to issuing convertible preferred stock at the time it spun out from Galena.
A banker will first examine your income statement and bottom line, and then add back a few things that are fairly essential to the cash flow analysis, such as depreciation, a noncash expense. They'll use the business' interest expense to come up with a rudimentary cash flow number.
During 1998, the company recorded a one- time $1,711,814 noncash expense resulting from the cashless exercise of the Placement Agent's options and warrants.
But for the years 1996 to 2003, the cumulative noncash expense to be recorded is expected to be less than $80 million.
During the third quarter, the company recorded a one-time $1,711,814 noncash expense resulting from the cashless exercise of the Placement Agent's options and warrants.
Reporting the bad debts provision as a noncash expense and adding it back to net income to derive cash flows from operations under the indirect method is illustrated in the fast comprehensive example in Appendix C of SFAS No.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 14.9% to $433.3 million, while adjusted EBITDA (which excludes noncash expense for share-based awards, indirect costs related to the merger and stock offerings, as well as the UFO and other noncash charges), climbed 12.9% to $446.1 million.
Because this is a noncash expense, the effect on cash flows should be recognized in the reporting of cash flows from operating activities.
(6.) Safeway's earnings for the 2005 quarter include a noncash expense