Disaster Expenses
Also called Casualty Losses · Natural Disaster Expenses
Disaster expenses on an income statement are costs incurred due to natural or man-made disasters, such as hurricanes, earthquakes, floods, fires, or accidents.
Typically, these are removed from forecasts as they’re not expected to continue on a go-forward basis.
Why Disaster Expenses matters in investment banking interviews
Another standard add-back. The useful instinct to demonstrate is skepticism: buyers scrutinize whether a "one-time" expense keeps appearing year after year, because sellers have every incentive to classify it that way.