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Accounting for restructurings—what is all the controversy?
Author(s) -
Book Jan R.,
Dodyk Lawrence N.
Publication year - 1994
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970050402
Subject(s) - quarter (canadian coin) , restructuring , earnings , charge (physics) , business , work (physics) , operations management , economics , finance , engineering , physics , history , mechanical engineering , archaeology , quantum mechanics
As companies released their 1993 earnings, reports of restructurings and cost‐cutting measures were disclosed almost daily. January 19, 1994–“Eli Lilly & Co. said it will take a $1.2 billion pretax fourth‐quarter charge, mostly to streamline foreign operations and fund previously announced early retirements of some 2,600 workers.” January 25, 1994–“Nynex Corp. said it will slash its work force by 16,800, or more than 20% over the next three years, and take a $1.6 billion charge…” “ Separately, BellSouth Corp. reported a loss of $276 million for the quarter, reflecting its previously announced plans to cut 10,200 jobs by the end of 1996 and restructure certain operations.” January 27, 1994–“Bail Corp. had a loss of $58.7 million, or $2.02 a share, for the fourth quarter, reflecting a $58 million charge for certain restructuring actions.” February 1, 1994–“Xerox Corp. posted a fourth quarter loss of $577 million after taking a big restructuring charge…” February 4, 1994–“Owens‐Illinois Inc. said it is slahsing its U.S. work force by 10%, or 2,000, and taking a charge of $355 million…. The restructuring grew out of a 'comprehensive re‐engineering study'in the fourth quarter and it designed to reduce costs, improve efficiency and enhanve customer service…”.