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My question isnt about the after tax part, but what is meant by "charge" as in "GE took a $6.2 billion after-tax charge".

I get that GE would like to get rid of their LTC (Long Term Care Insurance) business - take it off their books -- offload risk -- whatever. But when the word "charge" is used generally, what does that mean?

Sorry if this question is misplaced, but accounting doesn't yet exist in SE

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  • $\begingroup$ A very good explanation investopedia.com/terms/o/one-time-charge.asp $\endgroup$
    – Alex C
    Commented Jul 5, 2019 at 20:44
  • $\begingroup$ This explains it well. Thank you. The quora article you posted was also good, did you delete it? So just to clarify in the case of GE, this is a non-cash charge? They're essentially declaring their entire LTC book of business an "impaired" asset, and devaluing this asset in a writedown by $6.2 billion. Is that right? $\endgroup$
    – Karen
    Commented Jul 5, 2019 at 20:51
  • $\begingroup$ Yes, I think you are right on all counts. (The other article was quora.com/What-does-it-mean-to-take-a-charge-against-earnings ) $\endgroup$
    – Alex C
    Commented Jul 5, 2019 at 20:58
  • $\begingroup$ Got it. Now how do I give you credit for answering? $\endgroup$
    – Karen
    Commented Jul 5, 2019 at 21:02
  • $\begingroup$ I did not really answer it, I just pointed you to a public source of info. $\endgroup$
    – Alex C
    Commented Aug 23, 2019 at 16:18

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The after-tax charge will most likely be a one-off charge of which the after-tax value is $6.2b, for example through an impairment.

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