Other Operating Expense

Category

Income Statement

Units

Currency

US-GAAP elements

OtherCostAndExpenseOperatingOtherGeneralExpense

Reference

Regulation S-X Rules 5-03.3 and 5-03.6 (Other operating costs and expenses; Other general expenses)

Source

Reported in SEC EDGAR filings (US-GAAP XBRL taxonomy)

Other operating expense is the total of operating costs that are part of a company's normal business but do not fall under cost of revenue, selling, general and administrative expense, research and development, or another specific operating line. It is deducted in arriving at operating income.

Its contents vary by company and by period. It can include restructuring and severance costs, asset impairments, losses on disposing of operating assets, and other charges tied to running the business.

Regulation S-X gives these costs two places. Rule 5-03.3, other operating costs and expenses, asks companies to state separately any material costs not included with cost of sales. Rule 5-03.6, other general expenses, covers items not normally reported with selling, general and administrative expense and also calls for any material item to be shown separately. In XBRL the total is usually tagged OtherCostAndExpenseOperating, while OtherGeneralExpense covers general expenses outside the ordinary operating categories.

Because it is a residual, the line can be small and stable at one company and large and volatile at another. Some companies use it for recurring items such as royalties or franchise costs. Others use it mainly for charges that management regards as unusual, such as restructurings, impairments, or legal settlements. Companies with material restructuring or impairment charges often give them their own lines, so the other operating expense line may shrink or disappear in those periods.

Analysts read this line closely because it sits above operating income. Charges placed here lower operating margin even if they are one-time, while non-GAAP presentations often exclude them. When the line grows sharply, the notes and the management's discussion section usually explain what drove it. For comparisons across companies, it is worth checking whether a peer puts similar costs in SG&A or cost of revenue instead.