More specifically, earnings for the most recent quarter include a $919 million gain on the August 2005 sale of A&P Canada to Metro Inc., partially offset by charges amounting to $152 million for various nonoperating
items, as well as a $296,000 loss from discontinued operations.
The book value of the company's total assets, which includes nonoperating
assets, is also presented.
* Cost structure." To calculate true earnings, normalize income and expenses for unusual and/or nonrecurring items mad remove income and expenses associated with nonoperating
assets and liabilities.
said Wednesday it swung back into the black for the business year ended March 31 from year-earlier losses caused by a hefty nonoperating
charge associated with its troubled affiliate.
Other assets in the deal include a nonoperating
mill at Memphis, assets of Port Everglades Steel Corp., assets of the Klean Steel division, Birmingham's ownership in Richmond Steel Recycling Limited and all inventory and receivables related to the acquired assets.
Under the general rule for contributing long-term capital gain property (other than qualified appreciated stock) to a private nonoperating
foundation, a donee must reduce the deduction by the amount that would have been long-term capital gain had the property been sold instead of donated.
In addition to the impairment charge, that result encompasses several items factored into SG&A costs that management considers nonoperating
in nature, including a $16.2 million self-insurance reserve.
The accounting profession has had a long and unsuccessful history of trying to determine how to treat nonoperating
and nonrecurring items on a financial statement.
-- With earnings before interest, taxes, depreciation and amortization, LIFO charges, gains from asset disposals and nonoperating
charges (EBITDA) rising better than 25% and interest costs down, Rite Aid Corp.
Consolidated pretax profit plunged 49.9% to 16.13 billion yen partly because there were less nonoperating
revenues, such as interest revenues and investment returns, than the previous year.
These charities include veterans' organizations, domestic fraternal societies, nonprofit cemeteries and certain nonoperating
However, the deduction is limited to the basis of the property if the property is donated to certain private nonoperating
foundations or the gift is tangible personal property used for purposes that are unrelated to the organization's tax-exempt purpose.