The $7MM expense for amounts to retired executives is a normal, ordinary and recurring expense and thus, not to be adjusted out. Even though we don't want execs to be retiring every year, you cannot simply adjust out everything => this is indeed a normal part of business and not non-recurring. It is part of regular SG&A and compensation expense.
To illustrate - an old JCP 10K has a "senior mgmt transition charge" and this is specifically related to some sr mgmt getting forced out (as opposed to retirement) => in such a case, we would make an adjustment b/c you don't want mgmt to be forced out all the time. but if normal part of business (execs retiring) then you shouldn't adjust.
More importantly, the specific note you address is related to pensions. You will always have adjustments to pension related expenses that is definitely ongoing and recurring. We have an entire class related to pension adjustments => changes in actuarial assumptions can easily manipulate GAAP pension expenses, so we consider them to be recurring, unless it's an industry like car manufacturers and airlines where the magnitude is so large, it warrants a full-day discussion.