restructuring charge

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Restructuring Charge

A cost that a company incurs when it reorganizes its operations. Restructuring charges include costs with opening or closing a factory, hiring new employees or paying the severances for lay-offs, and so forth. Restructuring charges are included in the calculation of a company's net income, but because they are unusual, a high restructuring charge is less likely to result in a steep decline in the company's share price.

restructuring charge

The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. It is not considered an extraordinary item and must be considered when calculating a firm's income from continuing operations.
Case Study In August 2001 Procter & Gamble Co. reported the first quarterly loss in nearly a decade. The $320 million quarterly loss resulted from a $1.16 billion restructuring charge to account for corporate streamlining and altering the firm's portfolio of brands. Procter & Gamble was in the process of divesting most of its food and drink business, mostly by entering into a joint venture with Coca-Cola, a plan that was later abandoned. The company reported it planned to continue taking restructuring charges through mid-2004. At the same time P&G reported the net loss, it announced that operating income increased 12% to 60¢ per share. Restructuring charges are often given little weight by investors and analysts who evaluate a company's financial performance, because these charges are considered one-time expenses. The market price of Procter & Gamble's common stock experienced no significant price change on the day the loss was announced.
References in periodicals archive ?
dollars, up 3% in constant currency versus the prior year, Gross margin of 25.8%, down from 26.0% in both the prior year and third quarter, Operating income of $7.6 million, before amortization and restructuring charges of $3.6 million, Net income from continuing operations of $3.1 million, or net income from continuing operations of $5.6 million before amortization and restructuring charges, or $0.07 per share, Operating cash flow from continuing operations of $30.0 million.
following after-tax items: $65.1 million in restructuring charges and
NORDIC BUSINESS REPORT-14 October 2002-Tandberg Television ASA reports Q3 operating loss of NOK223m after restructuring charges (C)1994-2002 M2 COMMUNICATIONS LTD http://www.m2.com
Six-month results include a $90m one-time gain and restructuring charges of $379.8m, stemming from the first-quarter moves that saw 5,200 jobs cut.
James Fitzgibbons, chairman and chief executive, blamed "lower sales and margins in certain divisions," as well as the high cost of cotton and restructuring charges totaling $4.5 million.
The Company also updated guidance for the fourth quarter of fiscal 2018, excluding the impact of any restructuring charges related to the Pat Catan's store closures.
Operating performance for Q4 2013 was impacted by impairment and restructuring charges totalling EUR 302 million.
Bottom-line results for fiscal 2007's second quarter were buoyed by an assortment of nonoperating items, with operating income before amortization (OIBA) and restructuring charges growing at about the same pace as the top line.
Six-month results include restructuring charges of $8.3m and a $3.8m one-time gain on the repurchase of debentures.
After-tax income before restructuring charges and other adjustments in the third quarter of 1995 was $734,000, or 8 cents per share, before a restructuring charge of $7.0 million.
In connection with the restructuring, the company estimates that it will incur aggregate restructuring charges of approximately $2.5M related to one-time termination severance payments and other employee-related costs and the shut-down of its San Bruno office.
The first quarter operating income amounted to SEK 2,588 M (496) excluding restructuring charges of SEK 318 M (14).