restructuring charge

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Scripps began its restructuring work in Q3 2017 with a $2.4 million restructuring charge. The company will take a restructuring charge of $2 million in Q4, and estimates a $4 million charge in Q1 2018; it expects to take smaller quarterly charges into 2019.
Earnings per share from continuing operations in the first quarter of fiscal year 2016 includes a 21 cent restructuring charge.
Factoring in the restructuring charge, management forecasts reported earnings per share of 38 cents to 48 cents per share.
31 July 2013 - Dutch genetic-testing specialist Qiagen (ETR:QIA) said Tuesday it slipped to a second-quarter net loss of USD 51.8 million (EUR 39.1m) in 2013, mainly due to a restructuring charge but confirmed its full-year outlook.
Extreme Networks will record a pre-tax restructuring charge of approximately USD3.5m in its fiscal fourth quarter, which ended 3 July 2011.
Related to the actions, Ahlstrom will book a non-recurring restructuring charge of 7 million [euro] in its fourth quarter of 2008.
Results took into account a C$70 million restructuring charge mostly tied to job cuts; a C$2 million charge for store closings, and C$7 million to cover inventory liquidation.
Including a restructuring charge, pre-tax profits were down from pounds 167m to pounds 149m.
Domtar lost $349 million during the quarter due to a $400 million restructuring charge. The company reported 2005 net losses of $388 million compared to $42 million the previous year.
Closure of the Squamish pulp mill will result in a pre-tax restructuring charge in the fourth quarter of an estimated C$ 80 million (US$ 69 million), including a non-cash charge of C$ 46 million (US$ 40 million) relating to the write-down of fixed assets and supplies inventories.
It said this will produce a loss of $40m and $45m, including a restructuring charge of $20m.