“These charges consist of approximately $50 million to $65 million associated with office space reductions, approximately $40 million to $55 million related to employee severance and employee-related costs, and $35 million to $45 million in costs associated with licensor commitments,” reads the filing.
The severance I get, but why is closing offices costing them so much. And what are “ licensor commitments?”
Every big UK company I have worked for doesn’t own its building. They will typically agree to rent a building for 5-20 years at a fixed rate (longer times if its being purpose built for them) .
So I would expect this is paying out the rest of the rental agreements for a building to escape the building lease.
It is to do with financial reporting and the way asset and operational costs are reported.
The severance I get, but why is closing offices costing them so much. And what are “ licensor commitments?”
Every big UK company I have worked for doesn’t own its building. They will typically agree to rent a building for 5-20 years at a fixed rate (longer times if its being purpose built for them) .
So I would expect this is paying out the rest of the rental agreements for a building to escape the building lease.
It is to do with financial reporting and the way asset and operational costs are reported.