Restructuring charges in EBIT

Restructuring charges are GAAP operating expenses and therefore reduce GAAP EBIT. They are commonly added back in Adjusted EBIT when the program is genuinely time-bound and disclosed. The SEC's position is that recurring charges cannot be labelled non-recurring^[CDI].

What sits inside restructuring

Severance and termination benefits.
Lease-exit costs (early termination, sublease shortfall).
Facility consolidation and asset abandonment.
Outplacement and re-deployment costs.

When the SEC pushes back

If a company reports restructuring every year, the SEC may challenge the non-recurring characterisation. The defensible posture is to disclose the specific program, its expected total cost, its expected end date, and the charges incurred cumulatively to date.

Severance vs asset write-downs

Severance is a cash charge; asset write-downs are non-cash. Adjusted-EBIT add-backs usually treat both the same. EBITDA add-backs typically include only the non-cash components (so cash severance still reduces adjusted EBITDA).

See Adjusted EBIT page and Uber FY25.