Restructuring Charge

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Restructuring

    A significant modification made to the debt, operations or structure ...
  4. Diluted Earnings Per Share - Diluted ...

    A performance metric used to gauge the quality of a company's ...
  5. Corporate Debt Restructuring

    The reorganization of a company's outstanding obligations, often ...
  6. Write-Down

    Reducing the book value of an asset because it is overvalued ...
Related Articles
  1. Will Corporate Debt Drag Your Stock ...
    Investing Basics

    Will Corporate Debt Drag Your Stock ...

  2. A Clear Look At EBITDA
    Markets

    A Clear Look At EBITDA

  3. Cashing In On Corporate Restructuring
    Bonds & Fixed Income

    Cashing In On Corporate Restructuring

  4. An Overview Of Corporate Bankruptcy
    Bonds & Fixed Income

    An Overview Of Corporate Bankruptcy

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center