Non-operating expense

A non-operating expense is an expense incurred by an organization that does not relate to its main activity. These expenses are usually stated on the income statement after the results from continuing operations. When analyzing the results of a business, one can subtract these expenses from income, to estimate the maximum potential earnings of the firm. Examples of non-operating expenses are:

  • Interest expense
  • Derivatives expense
  • Lawsuit settlement expense
  • Loss on disposition of assets
  • Obsolete inventory charges
  • Restructuring expense