Noncash charge

Noncash charge

A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash.

Non-Cash Charge

Any charge to a company that does not result in a cash outlay. Examples of non-cash charges include depreciation and amortization. For example, depreciation reduces the value of an asset but does not require a reduction in the cash on hand. A non-cash charge reduces a company's earnings.