In financial contexts, 'unoffsettable' describes something that cannot be balanced or compensated by an opposing item or transaction. This typically refers to a debt, expense, loss, or obligation that cannot be reduced or eliminated by another, often related, financial action. It suggests a firm, unyielding, or non-negotiable characteristic of the item in question. The concept emphasizes the definitive nature of a financial commitment and implies a lack of flexibility or potential for mitigation through offsetting measures. This lack of offsetability often carries implications for financial planning and risk management.
Unoffsettable meaning with examples
- The company's significant environmental cleanup costs were deemed unoffsettable; they couldn't be balanced against profits from other projects, forcing a revised budget. The legal settlement, specifically the monetary penalty, remained unoffsettable, necessitating separate payment from the company's general funds, unlike certain tax credits. This unexpected loss was ultimately unoffsettable, impacting their quarterly earnings reports, as it defied any attempts at balancing. Their commitment to a project made all future expenses considered as an unoffsettable responsibility.
- Due to the strict terms, the overdue loan payment became unoffsettable; late fees and interest accrued despite the company's efforts to make other payments on time. The liability caused by the product recall was clearly unoffsettable, requiring dedicated financial resources to compensate affected customers and cover expenses. After the deal, certain operational losses became unoffsettable, as they couldn't be diminished through tax strategies because of limitations. The contractual obligations for minimum purchases established a range of expenses considered as an unoffsettable requirement.
- The government debt that the country had built up over the prior year has turned unoffsettable by the funds that the country has available to spend. Due to sanctions, imports were completely unoffsettable and would require separate funding from existing accounts because it was isolated from regular financial structures. The unavoidable expenses generated from a natural disaster turned unoffsettable with no access to funds or insurance from the location. The new policies meant losses were going to remain unoffsettable, the money could not be generated through additional gains.
- Given the contract details, the penalties for failing to meet production targets were explicitly unoffsettable, regardless of any cost savings achieved elsewhere in the process. The fines levied by regulators were categorized as unoffsettable, meaning they couldn't be reduced by any investments or savings realized throughout the current year. The initial research investment became unoffsettable, with it not being offset by any additional revenue generated in the first few years of the company's existence. In the scenario of the company's recent bankruptcy, many of its debts were unoffsettable, resulting in the loss of many employees.