One-Time Gains, Losses, & Expenses.

Typically one-time events that don’t affect the business in its core-operations, and also, typically removed too normalize the operating income. 

1. One-Time Gains

•  Asset Sales: Profits from selling property, equipment, or subsidiaries (e.g., selling a factory or business division) 

• Legal Settlements: Gains from favourable litigation outcomes 

• Debt Restructuring: Gains from renegotiating debt terms or early repayment at a discount 

• Gains from Investments like stocks, bonds, crypto coins etc.

• Government Grants/Subsidies: non-recurring incentives for green energy projects. R&D, or job creation.

• Insurance Recoveries

2. One-Time Losses

• Restructuring Charges: Costs from layoffs, facility closures, or reorganizations 

• Asset Impairment/Write-downs, offs. Reducing asset values due to market declines (e.g., obsolete technology) 

• Natural Disaster Costs: Losses from earthquakes, floods, or fires 

• Litigation Expenses: Fines or settlements from lawsuits 

• Discontinued Operations: Losses from shutting down a business units

• Losses from Investments like stocks, bonds, crypto coins or even option contract.

3. One-Time Expenses

• Inventory Write-Offs: Discarding unsellable inventory 

• Early Debt Retirement Penalties: Fees for paying off debt before maturity 

• Accounting Policy Changes: Costs from adopting new accounting standards

• M&A Costs: Expenses from acquisitions or mergers (e.g., advisory fees, Investment banking fees, etc) 

• Product Recalls

• Cybersecurity Breaches

• Employees Severance

4.  Unrealized Gains & Losses

These reflect changes in the value of unsold assets or liablities. They are not taxed until realized, but can impact financial statements.

•  Equity Investments: Fluctuations in stock prices (e.g., unsold shares).
• Bonds/Fixed Income: Changes in market value due to interest rate shifts.
• Real Estate/Property: Appreciation or depreciation in property values .
• Foreign Exchange Holdings: Currency value fluctuations.
• Derivatives: Unsettled futures or options contracts.
• Changes to fair value, or unrealized gains/loss from holding  stocks and even Crypto.
• Pension Liabilties

Pro Tips For Spotting These Items:

• Footnotes: Look for terms like “non-recurring,” “unusual,” or “special items” in filings.
• MD&A Section: Management often explains outliers in the "Management Discussion & Analysis."
• EBITDA Adjustments: Companies highlight one-time items when reporting adjusted EBITDA.
• Footnotes: Unrealized gains/losses may be deferred for tax purposes.