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.

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References in periodicals archive ?

While we are aware of the expense associated with expansion we have instituted an efficiency improvement initiative to remove legacy cost from our operations.

First Reliance Bancshares, Inc. announces net income of $465,797

They still have legacy cost structures but are dismantling them rapidly.

Six fintech trends to look out for in 2018

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.

Many Fintechs keen to establish base in Qatar

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.

Payment solutions account for 40 per cent of Fintech Businesses in the GCC

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."

WHAT WILL 2015'S FOURTH QUARTER REVENUE LOOK LIKE? Publishers provide outlook, but are sketchy on the advertising details

The second reason for abandonment was the desire to reduce legacy cost long-term.

Industry veteran recommends Charles Horngren accounting model

The new service, available at http://research.nelson-hall.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.

ING sizes planned offering of common stock

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.

Markaz: Half a million visitors flock to Qatar for FIFA World Cup 2022

"The problem is that Rangers have a legacy cost base and a legacy debt that had been built up under the Murray years."

DAMAGE WAS DONE LONG AGO

Among the chief legislative changes are going from a six-day to five-day delivery schedule, receiving $6.9 billion in overpayments to the Federal Employee Retirement System in the form of a refund, and resolving the mandate to pre-fund retiree health benefits by $5.5 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.

USPS proposes network changes to improve bottom line

The trust fund will finance health-care costs for its retirees, eliminating a key legacy cost.