Tuesday, June 9, 2015

Disclaimer : The data was gathered in about 1 minute.

Calcbench took a quick look at annual corporate re-structuring charges over the last 6 years. What we found impressed us (and not necessarily in a good way).

Typically, firms re-structure their businesses and call it a one-time affair. But a cursory glance at the data says that these charges are anything but one time.

A brief summary will explain more than our words. In the table below you will find summary level information on firms that report re-structuring charges on their Income Statements since 2009. In 2010, the number seems to have dropped as many firms were coming out of the recession and it was likely that there were other issues on the plates of corporate managers.

In 2009, 160 firms reported total restructuring charges of $17.2 billion for an average of $107.7 million per firm! Please note that not all firms have reported 2014 yet.

Year Firms Total Charges ($ MM) Avg. Per Firm ($ MM) 2009 160 $17228.8 $107.7 2010 156 $12478.7 $80.0 2011 156 $17016 $109.1 2012 168 $22599.2 $134.5 2013 167 $18054.4 $108.1 2014 131 $13683.5 $104.5

Firms that have reported a re-structuring charge every year since 2009 are noted below

Firm Merck & Co., Inc. Hewlett Packard Co Alcoa Inc. General Motors Co Honeywell International Inc TE Connectivity Ltd. Symantec Corp Bristol Myers Squibb Co Whirlpool Corp /DE/ Time Warner Inc. Motorola Solutions, Inc. Xerox Corp Emc Corp Coca-Cola Enterprises, Inc. Metlife Inc Newell Rubbermaid Inc Time Warner Cable Inc. Boston Scientific Corp Owens Illinois Inc /DE/ Emerson Electric Co Sealed Air Corp/DE Allstate Corp Mohawk Industries Inc Interpublic Group Of Companies, Inc. Goodyear Tire & Rubber Co /OH/ Devon Energy Corp/DE Applied Materials Inc /DE Campbell Soup Co Juniper Networks Inc Level 3 Communications Inc Bb&T Corp Corning Inc /NY Vertex Pharmaceuticals Inc / MA Perkinelmer Inc Abbott Laboratories Analog Devices Inc E TRADE FINANCIAL Corp Adobe Systems Inc Pall Corp Yahoo Inc Laboratory Corp Of America Holdings Cablevision Systems Corp /NY Amerisourcebergen Corp Cbs Corp Waste Management Inc Discovery Communications, Inc. Dun & Bradstreet Corp/NW Autodesk Inc Dentsply International Inc /DE/ United Rentals Inc /DE Altria Group, Inc. Sigma Aldrich Corp Wyndham Worldwide Corp Fmc Corp DOVER Corp Ralph Lauren Corp International Flavors & Fragrances Inc Skyworks Solutions, Inc. Weyerhaeuser Co Whole Foods Market Inc Sherwin Williams Co

Below is a table that indicates firms that have reported a Charge Five out of the Last Six Years

Firm Citigroup Inc Philip Morris International Inc. Baxter International Inc Oracle Corp Best Buy Co Inc Delphi Automotive PLC Ca, Inc. Texas Instruments Inc Nielsen N.V. PENTAIR plc Twenty-First Century Fox, Inc. Harman International Industries Inc /DE/ Hartford Financial Services Group Inc/DE Staples Inc Agilent Technologies Inc Stryker Corp PERRIGO Co plc Cardinal Health Inc Centurylink, Inc Broadcom Corp State Street Corp Seagate Technology plc Dow Chemical Co /DE/ Marsh & Mclennan Companies, Inc. MEADWESTVACO Corp Dupont E I De Nemours & Co Tenet Healthcare Corp Republic Services, Inc. Hospira Inc Kla Tencor Corp SNAP-ON Inc Estee Lauder Companies Inc Harley Davidson Inc Akamai Technologies Inc Electronic Arts Inc. Ryder System Inc

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