Learn · Explainer
Restructuring charges
What a restructuring charge is, where it appears in the 10-K, and the amount each covered company recorded in its latest year.
The short answer
A restructuring charge is the cost of a reorganization: severance, site closures, contract terminations and similar items that a company records when it has a plan in place. It reduces net income in the period it is recorded, and the 10-K's notes describe what the plan covers. 24 of the covered companies reported a restructuring charge in their latest fiscal year.
What counts as a restructuring charge
US accounting rules allow a company to record a restructuring liability when it has a plan, the plan has been approved, and the costs are the direct result of the plan, typically employee termination benefits, costs to close or consolidate facilities, and certain contract-termination costs. Ongoing costs of running the business after the plan, or costs to make the business better in the future (such as a new system), generally do not belong in the charge.
- The charge can be a separate line on the income statement or can sit inside cost of sales or operating expenses. The notes usually give a roll-forward of the reserve: beginning balance, new charges, cash payments and the ending liability.
- It is often a mix of cash costs (severance paid later) and non-cash costs (asset write-downs). The cash leaves in later periods as the plan is carried out.
- Companies sometimes exclude restructuring charges from non-GAAP earnings. The charge still reduced GAAP net income, and a series of 'one-time' programs can add up.
How to read the note
The useful questions are what the plan is, over how many years the cash will be paid, and whether a new program is being started every year. A single charge after a merger or a plant closure is a different story from a running program that appears in each 10-K. One-time items covers how to put these charges next to the rest of the income statement, and asset impairments often show up in the same plans.
Companies that recorded a charge
| Company | Restructuring charges |
|---|---|
| General MotorsGM | $4.9B |
| OracleORCL | $1.8B |
| Procter & GamblePG | $1.2B |
| PfizerPFE | $1.1B |
| MerckMRK | $889M |
| CiscoCSCO | $693M |
| IBM | $653M |
| SalesforceCRM | $586M |
| Bristol Myers SquibbBMY | $563M |
| IntelINTC | $476M |
| CaterpillarCAT | $448M |
| TeslaTSLA | $390M |
| IntuitINTU | $293M |
| LindeLIN | $273M |
| McDonald'sMCD | $229M |
| Johnson & JohnsonJNJ | $228M |
| Thermo FisherTMO | $197M |
| EmersonEMR | $187M |
| Applied MaterialsAMAT | $181M |
| GE VernovaGEV | $176M |
| Philip Morris InternationalPM | $149M |
| GileadGILD | $138M |
| American ExpressAXP | $96M |
| BlackRockBLK | $39M |
Restructuring charges reported for the latest fiscal year, from each 10-K, sorted by amount. Only companies with a positive amount on this line are listed. What a company includes in the line varies, and some restructuring costs are recorded in other expense lines instead.
Common questions
What is a restructuring charge?
The cost of a reorganization plan (typically severance, facility closures and contract terminations) recorded when the plan is in place and the costs are the direct result of it.
Does a restructuring charge use cash in the same year?
Not always. The income statement records the cost when the criteria are met; the cash is often paid later as people leave and sites close. The note's roll-forward shows how much cash has gone out.
Are restructuring charges the same as impairments?
They can overlap. Writing down a plant that will be closed is an impairment; severance for the people who worked there is a restructuring cost. Some companies report both in one program.
Why do some companies appear every year?
A company can have a multi-year program, or it can start a new one as the last one ends. The notes say whether a charge is part of an existing plan or a new one.
Do companies exclude these charges from adjusted earnings?
Often. The non-GAAP figure then adds the charge back. The GAAP income statement still includes it.
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) and SpaceX in a long-term retirement account. The editor holds no position in any other company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 10, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
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