One-time Charges Jump at MEMC Electronic Materials, Inc. - Vastly Exceed Those Recorded Over the Last Five Years

MEMC Electronic Materials, Inc. (NYSE: WFR) announced today a global restructuring initiative, including a significant workforce reduction. The company stated that it expects to incur approximately $700 million of restructuring charges in 4Q11. These one-time charges include asset impairments, severance benefits, and contract termination charges. The company also announced today that it expects to record additional one-time charges in 4Q11, including up to $400 million of goodwill impairment and up to $275 million of deferred tax asset valuation allowance.

These charges greatly exceed the total amount of one-time charges recorded by the company during the past 5 years. Until today, restructuring charges had totaled $76 million since 2006 in addition to a $56 million goodwill impairment charge in 3Q11.

Here is WFR's press release on the restructuring initiative.