Restructuring Charge


DEFINITION of 'Restructuring Charge'

A one-time cost that must be paid by a company when it reorganizes. A restructuring charge might be incurred in the process of furloughing or laying off employees, closing manufacturing plants, shifting production to a new location or writing off assets. When a company restructures, it is usually experiencing significant problems and restructuring is an attempt to improve the business and recover financially.

BREAKING DOWN 'Restructuring Charge'

A restructuring charge will cost a company money in the short run, but it is meant to save the company money in the long run. A restructuring charge will be mentioned in stock analysis as lowering a company's operating income and diluted earnings. Restructuring charges will often have a significant effect on a company's income statement as a result.

  1. Net Operating Income - NOI

    A company's operating income after operating expenses are deducted, ...
  2. Furlough

    A temporary layoff, involuntary leave or other modification of ...
  3. Debt Restructuring

    A method used by companies with outstanding debt obligations ...
  4. Write-Down

    Reducing the book value of an asset because it is overvalued ...
  5. Corporate Debt Restructuring

    The reorganization of a company's outstanding obligations, often ...
  6. Layoff

    1. When a company eliminates jobs regardless of how good the ...
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