How to handle restructuring expense default, sometimes, companies, like

Flok

I know the default for treatment of restructuring expense is to exclude from operating income. But it seems like some companies are incurring this expense almost every quarter and every year. What is typically included in this expense? - I know sometimes it can be for severance pay / early retirement.

If a company announces a large restructuring expense to occur, how are you pricing this into the stock?

brainsX

my company loves to throw anything and everything they can find into the restructuring bucket. in our IR decks, I always argue that it should be taken into account - i always lose those arguments

stockjaguar

The general rule is to remove it in short-term calculations, UNLESS it is a recurring expense, and include it in long-term calculations.

LPoulin133

Certainly some restructurings (e.g., after a large acquisition) can take place over a long period -- years. It definitely has finite life however, so you should just discount the expected payments and take those as a one-time hit against EV.

AnalystForum

If its not expected to reoccur than you should exclude it, no?