Income Before Extraordinary Items Less Minority and Preferred Dvd
IncomeLossBeforeExtraordinaryItemsAndCumulativeEffectOfChangeInAccountingPrincipleNetIncomeLossAttributableToNoncontrollingInterestPreferredStockDividendsIncomeStatementImpactIncome before extraordinary items less minority interest and preferred dividends is the portion of a company's earnings that belongs to its common shareholders, measured before any extraordinary gains or losses and before the cumulative effect of accounting changes. It starts from income before those items and subtracts the share owed to noncontrolling (minority) owners of subsidiaries and the dividends owed to preferred shareholders.
It is the numerator for earnings per share before extraordinary items, a measure that let investors see common-shareholder earnings without rare events and accounting catch-up adjustments.
The figure is calculated from components reported in SEC filings rather than tagged as a single element. The starting point was historically tagged IncomeLossBeforeExtraordinaryItemsAndCumulativeEffectOfChangeInAccountingPrinciple, an element the taxonomy has since deprecated. The SEC's documentation for it describes income from continuing operations after tax plus the results of discontinued operations, but before extraordinary items. From that, the noncontrolling share, tagged NetIncomeLossAttributableToNoncontrollingInterest, and preferred dividends, tagged PreferredStockDividendsIncomeStatementImpact, are subtracted.
Extraordinary items were removed from US GAAP by ASU 2015-01, effective for fiscal years beginning after December 15, 2015, and cumulative-effect accounting changes were largely replaced by retrospective restatement under ASC 250. For recent periods, therefore, this measure normally equals net income available to common shareholders. It differs mainly in older periods, or where a company makes adjustments to common earnings other than preferred dividends, such as earnings allocated to participating securities under the two-class method.
The measure is most useful in long historical series. It gives a consistent common-shareholder earnings figure across periods before and after the rule changes, so growth rates and price-to-earnings histories are not distorted by one-time extraordinary gains or losses in older years. Note that under the SEC's element definition it still includes discontinued operations, so it is broader than income from continuing operations.
A: For periods after extraordinary items were eliminated, it usually is. The two diverge only in older years that had extraordinary items or cumulative-effect accounting changes, or where other common-earnings adjustments apply.
A: Neither belongs to common shareholders. The minority share goes to outside owners of subsidiaries, and preferred dividends must be paid before common shareholders receive anything.
A: No. Based on the SEC element it starts from, the measure is taken before extraordinary items but after discontinued operations. Use income from continuing operations to remove discontinued results.
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