Item 2.05 – Costs Associated with Exit or Disposal Activities| 8-K Explained

This item requires disclosure of restructuring plans under which the company will incur material charges. For example, the 8-K may report the company’s decision to close some of its plants or stores or to lay off workers. The company also must disclose its estimates of the costs involved, once it is able to determine them. These costs could include, for example, total severance benefits for all laid-off employees.

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