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Here's How Snap's Spectacles Charge Was Broken Down

TheMotleyFool

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Here's How Snap's Spectacles Charge Was Broken Down

Snapchat operator Snap (NYSE: SNAP) ate a $39.9 million charge related to Spectacles last quarter, due to the company grossly overestimating demand and ordering way too many units. Many of those units were reportedly collecting dust in warehouses, making a writedown all but inevitable. It was initially unclear how that $39.9 million charge was split between inventory impairments and fees associated with canceling purchase commitments.

Thanks to the subsequent 10-Q, investors now know how this charge was broken down.

Image source: Snap.

Source: Fool.com

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