# Non-Operating Income Hidden in Operating Earnings, a NOPAT Adjustment

By Joseph Noko · 2024-04-30 · Source: https://josephnoko.com/non-operating-income-hidden-in-operating-earnings/

Non-operating income is the complement of [non-operating expenses](https://josephnoko.com/non-operating-expenses-hidden-in-operating-earnings/), 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](https://www.alx-inc.com/static-files/a292f265-5d55-4496-b6cd-84bb8b6e8d09):

![](https://lh7-us.googleusercontent.com/AzBEzEq5Zt8r6JQKJk9uZhuMWjcARdIGYdAe2MdtbSJ0jI6lDh_ipGIRY9AEWm6wNGdeArPz0fmZW3i23pVp5_0xuwRr43SMBl7BW9zGBbtcwqEWxRwLuDi8V4lNILkU_kRoIeyXkRWN6GeJeEpAklI)