Airbus takes a charge of nearly $1 billion on space programs
Airbus takes a charge of nearly $1 billion on space programs
Airbus will take a charge of nearly $1 billion because of poor cost and schedule performance on satellite programs, and will evaluate strategic options.
This article is confusing to me. What does it mean for a company to “take a charge of $X on” some of its contracts?
They're losing money in the satellite business and have to admit to it in their public facing financials, so they're posting a big ole negative line item.
On the off-chance some financially clued-in person doesn't stop by, here's what I found searching:
A charge is a form of security over an asset which gives the charge-holder (typically a lender) the right to have the asset and its proceeds of sale appropriated to discharge the debt. Companies typically grant fixed and floating charges over their assets as security for their corporate borrowing.
I'm not financially intelligent but it sounds a bit like collateral?