carveout

[ kahrv-out ]

noun

1. a process of reorganizing a corporation by creating a subsidiary and offering the public a minority of its stock, while the parent company remains in charge of the company; a partial spin-off. Compare spin-off ( def 1 ), split-off ( def 3 ), split-up ( def 3 ).
2. exemption from a provision of the law.

Word History and Origins

Origin of carveout¹

First recorded in 1965–70; noun use of verb phrase carve out