In a recent announcement, consumer goods giant Procter & Gamble Co. revealed that it anticipates booking more than $2 billion in charges due to a limited restructuring and an impairment related to its acquisition of Gillette in 2005. As a result, the company's stock fell by 2.8% on Tuesday.

The company expects to incur after-tax restructuring charges ranging from $1.0 billion to $1.5 billion, primarily in enterprise markets such as Argentina and Nigeria. It aims to address the challenging macroeconomic and fiscal conditions prevailing in these regions. P&G also plans to record a pre-tax noncash impairment charge of approximately $1.3 billion in relation to Gillette.

According to P&G, the impairment charge relates to a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset. This reduction is attributed to several factors, including a higher discount rate, weakening of several currencies relative to the U.S. dollar, and the impact of the restructuring program.

During its recent third-quarter earnings call, P&G emphasized the negative impact of a strong dollar on its performance. It estimated that the currency fluctuations would result in approximately $1 billion after-tax, or an incremental $600 million, affecting the company's full-year guidance since it was initially offered in late July.

A strong currency adversely affects companies like P&G, particularly those that compete globally, as it diminishes the amount they receive when repatriating cash from countries with weaker currencies.

Procter & Gamble's acquisition of Gillette involved an all-stock deal worth $57 billion and took place in January 2005. This acquisition significantly expanded P&G's consumer product portfolio, incorporating Gillette's razor and Duracell battery businesses.

The announcement of the anticipated charges has stirred investor concerns, leading to a decline in P&G's stock value. The company will closely monitor the impact of these charges and the ongoing fluctuations in currency exchange rates as it navigates the current economic landscape.