Legacy costs

Legacy costs

Legacy costs is a term formed by analogy with the computer industry's legacy systems. Legacy costs are those incured by an organization in prior years under different leadership or when the entity's priorities and resources were different. In business, while it can refer to other commitments (particularly existing infrastructure) as well, it primarily refers to company obligations to pay heath care costs and pensions under defined-benefit plans for current employees and retirees, usually incurred during the labor peace era after World War II. Legacy costs are widely credited with handicapping American auto manufacturers and older airlines worldwide, diminishing their competitiveness. Organized labor sees such criticisms as part of a desire to abandon any form of social contract between worker and employer.

Newer, less-established entities have few or no problems with legacy costs, because they have less pension and health care liabilities. (this applies to new suburbs, for example, as well as new companies), and are therefore able to out-compete (in some cases) the older entities.


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Legacy Costs — The costs involved with a company paying increased healthcare fees and other benefit related costs for its current employees and retired pensioners. It is believed that escalating legacy costs can be a very large contributing factor towards… …   Investment dictionary

  • legacy costs — /ˈlɛgəsi kɒsts/ (say leguhsee kosts) plural noun the costs which a company incurs as a result of its obligations to employees, both current and retired, in terms of benefits such as health care, superannuation, etc …  

  • Legacy system — A legacy system is an old method, technology, computer system, or application program that continues to be used, typically because it still functions for the users needs, even though newer technology or more efficient methods of performing a task …   Wikipedia

  • legacy — A disposition of personalty by will. A bequest. In a technical sense and strictly construed, legacy is a gift or bequest by will of personal property, whereas a devise is a testamentary disposition of real estate, but such distinction will not be …   Black's law dictionary

  • legacy — A disposition of personalty by will. A bequest. In a technical sense and strictly construed, legacy is a gift or bequest by will of personal property, whereas a devise is a testamentary disposition of real estate, but such distinction will not be …   Black's law dictionary

  • Legacy Virus — In the fictional Marvel Universe, the Legacy Virus was a devastating plague that ripped through the mutant population, killing hundreds and mutating so that it affected baseline humans as well. The Legacy Virus storyline ran through various… …   Wikipedia

  • Forest Legacy Program — The Forest Legacy Program was established in the 1990 Farm Bill to protect environmentally important forest lands that are threatened by conversion to nonforest uses. It provides Federal funding for conservation easements and fee simple purchases …   Wikipedia

  • Mortal Kombat: Legacy — Genre Action/Martial arts Created by Ed Boon John Tobias Developed by Kevin Tancharoen Written by Kevin Tancharoen Todd Helbing Aaron Helbing …   Wikipedia

  • The Winshaw Legacy — Infobox Book name = The Winshaw Legacy AKA What a Carve Up! author = Jonathan Coe cover artist = Owen Smith cover design= Susan Mitchell country = London, Great Britain language = English genre = Mystery/Drama publisher = Random House Inc pub… …   Wikipedia

  • Lancair Legacy — The Lancair Legacy, a modernized version of the Lancair 320, is a low wing two place retractable gear composite monoplane, manufactuered by USA company Lancair. It is available as a kit, costing $64,900. There is also a fixed gear version, the… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”