restructuring expense

Meanings

1. 1nouncountable or uncountablebusinessfinance

   money a company spends to reorganize itself, for example on severance pay, closing offices, or merging departments.

   Grammar: Can be countable (a restructuring expense, several restructuring expenses) or uncountable (how much restructuring expense was recorded).

   Patterns

   • record a restructuring expense
   • incur restructuring expenses
   • restructuring expense of $X

   The firm reported a $40 million restructuring expense after closing three factories.

   Restructuring expenses pushed the company into a loss for the quarter.

   Analysts ignored the restructuring expense and focused on operating profit.

2. 2nouncountablebusinessfinance

   a single item or line in a financial statement that shows such a cost.

   Grammar: Used when you count or list individual charges: one restructuring expense, two restructuring expenses.

   Patterns

   • list something as a restructuring expense
   • a one-off restructuring expense

   The auditor asked them to classify the payment as a restructuring expense.

   Each restructuring expense must be explained in the notes to the accounts.

Word forms

Common combinations

record a restructuring expense

The group recorded a restructuring expense of €12 million in December.

incur restructuring expenses

We incurred restructuring expenses when we merged the two sales teams.

one-off restructuring expense

It was a one-off restructuring expense and will not repeat next year.

restructuring charge

The restructuring charge reduced net income by 8%.

Synonyms and how they differ

restructuring charge

Very close in meaning, but 'charge' is more common in earnings reports and often suggests the amount taken out of profit.

severance cost

Narrower: it refers only to payments made to workers who leave, not to other reorganization costs.

write-off

Used when an asset's value is removed from the books; a restructuring expense may include write-offs but also includes cash costs.

Word family

restructure verb

to organize something, such as a company or debt, in a new way

restructuring noun

the process of reorganizing a company or its finances

expense noun

money spent on something, especially for business purposes

Commonly confused: restructuring expense or capital expense?

Practice

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