Non-operating income is the complement of non-operating expenses, and are special items and one-time earnings that are not reported on the face of the income statement, and are instead hidden in other line items. The most common types of hidden non-operating expenses are gains on the sale of assets, some pension income, and income from legal settlements.
An example of non-operating income is the unusually large gain on property sale, $600 million, that Alexander’s Inc., a real estate investment trust (REIT), received in 2012, which was 89% of its $674 million GAAP income, as reported in the REIT’s 2012 10-K:
