Contingency

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Contingency

An additional amount or percentage added to any cash flow item (ie. Capex). Care is needed to ensure it is either to be spent or to remain as a cushion.

Contingency

A negative situation that may occur and for which one ought to prepare. For example, a company may maintain extra cash reserves to cover unexpected liabilities. See also: Cushion.
References in periodicals archive ?
Aggrieved investors equipped with expanded disclosure requirements that attach a dollar amount to contingencies may be more likely to prevail against management and auditors.
Contingencies of domain self-esteem were measured by the Contingencies of Self-worth Scale (CSW; Yang et al.
Krauss is seeing 85 to 90 percent contingencies, rather than the 70 to 80 percent recent norm, Krauss said, meaning that the purchaser has to be able to secure a mortgage equivalent to 85 to 90 percent of the purchase price in order to be bound to the contract.
Therefore, cooperative learning procedures often incorporate both interdependent and independent group-oriented contingencies.
In other words, contingencies can be extremely effective tools for increasing a company's profits.
It also produces an objective basis for resolving questions about the need to provide for liability contingencies.
It is hard to see why it should then tell us to favor some contingencies (noninherited ones) over others.
Of course permanent and contingency workers interact, sometimes extensively, but permanent employees usually treat contingencies who serve their convenience as colleagues, not peers.
In particular, although the Company believes that its expectations are reasonable, the Company cautions readers that expectations concerning the elimination of contingencies and the closing of the restaurant sale are subject to risks and uncertainties that may be beyond the Company's ability to control.
With present software, pilots before a mission plot a specific route for the aircraft to fly, and build in precise responses that the aircraft will make in the event that a variety of contingencies occur.
This regulation, known as the "noncontingent bond method" allows an issuer to accrue an original issue discount (OID) deduction at a yield "comparable" to that of a fixed-rate instrument with similar terms and conditions, but without contingencies.
In the past five years, new insurance products have been developed to facilitate mergers, acquisitions and other forms of corporate transactions by translating future contingencies into current premium dollars.