During a slow quarter, the company will reduce the unearned revenue account and recognize revenue. Gilmoor, Dan, The Microsoft Earnings Charade, San Jose Mercury News , April 20, 1999. Greenberg, Herb, Shipping bricks and other tricks , Fortune , September 29, 1997. It is a rare day when the Wall Street Journal does not include information on a company announcing a restructuring charge. The reasons given cover every possible business situation.
Successful companies use it to provide steady increases in earnings.
If a company experiences a one-time gain, it might record a restructuring charge to offset the gain. An example would be the gain on the sale of a factory or other operating unit. This gain will very likely be accompanied by restructuring charges offsetting the gain. The company will announce that the sale of the unit presents a number of potential future costs such as expenses for the relocation of employees or the replacement of systems that were at the sold unit but shared by other operating units. The Earnings Game , Fortune , March 31, 1997.