Income Before Extraordinary Items Definition | Law Insider

Define Income Before Extraordinary Items. means, for any period and any Person in respect of one or more Properties and/or Mortgaged Properties as to which ... IncomeBeforeExtraordinaryItemsdefinitionSearchWithinIncomeBeforeExtraordinaryItemsDefinitionsRelatedDefinitionsQualifyingIncomeOperatingIncomenetearningsnetnon-operatingincomeGrossIncomefromOperationsNetIncomeorNetLossAdjustedNetEarningsAdjustedNetEarningsfromOperationsIncomeyearEarningsfromOperationsNonqualifyingIncomeDepreciationExpenseCashFlowfromOperationsEarningsBeforeInterestandTaxesAdjustedNetOperatingIncomeCoreEarningsAdjustedOperatingIncomeConsolidatedNetEarningsDepreciationNetCashFromOperationsAlternativeminimumtaxableincomeCashfromOperationsNetIncome(Loss)DepreciationandAmortizationExpenseAdjustedgrossincomeDepreciationRecaptureRemoveAdvertisingOpenSplitViewShareCiteIncomeBeforeExtraordinaryItems means,foranyperiodandanyPersoninrespectofoneormorePropertiesand/orMortgagedPropertiesastowhichsuchPersonistheTenantorMortgagorthereof,thenetincome(orloss)ofsuchPersonforsuchperiodattributabletosuchPropertiesand/orMortgagedProperties,excludinganyextraordinaryitems(netoftaxes)andincludingamountspaidorprovidedforincometaxesordeferredincometaxesbyoronbehalfofsuchPersonattributabletosuchPropertiesand/orMortgagedProperties,allasdeterminedinconformitywithGAAP.Sample1Basedon3documents3SaveCopyRemoveAdvertisingRelatedtoIncomeBeforeExtraordinaryItemsQualifyingIncomemeansgrossincomethatisdescribedinSection856(c)(3)oftheCode.OperatingIncomemeanstheCompany’sorabusinessunit’sincomefromoperationsbutexcludinganyunusualitems,determinedinaccordancewithgenerallyacceptedaccountingprinciples.netearningsmeanssuchearningsasarecalculatedinaccordancewithparagraph42or52,asthecasemaybe;netnon-operatingincomemeansthedifferencebetween:GrossIncomefromOperationsmeansallincome,computedinaccordancewithGAAP,derivedfromtheownershipandoperationofthePropertiesfromwhateversource,including,butnotlimitedto,theRents,utilitycharges,escalations,servicefeesorcharges,licensefees,parkingfees,rentconcessionsorcredits,andotherrequiredpass-throughs,butexcludingsales,useandoccupancyorothertaxesonreceiptsrequiredtobeaccountedforbyMortgageBorrowertoanyGovernmentalAuthority,refundsanduncollectibleaccounts,salesoffurniture,fixturesandequipment,InsuranceProceeds(otherthanbusinessinterruptionorotherlossofincomeinsurance),Awards,securitydeposits,interestoncreditaccounts,utilityandothersimilardeposits,paymentsreceivedundertheMortgageInterestRateCapAgreement,interestoncreditaccounts,interestontheMortgageReserveFunds,andanydisbursementstoMortgageBorrowerfromtheMortgageReserveFunds.GrossincomeshallnotbediminishedasaresultoftheSecurityInstrumentsorthecreationofanyinterveningestateorinterestinaPropertyoranypartthereof.NetIncomeorNetLossmeans,foreachfiscalyearorotherapplicableperiod,anamountequaltothePartnership’snetincomeorlossforsuchyearorperiodasdeterminedforfederalincometaxpurposesbytheAccountants,determinedinaccordancewithSection703(a)oftheCode(forthispurpose,allitemsofincome,gain,lossordeductionrequiredtobestatedseparatelypursuanttoSection703(a)oftheCodeshallbeincludedintaxableincomeorloss),withthefollowingadjustments:(a)byincludingasanitemofgrossincomeanytax-exemptincomereceivedbythePartnership(b)bytreatingasadeductibleexpenseanyexpenditureofthePartnershipdescribedinSection705(a)(2)(B)oftheCode(includingamountspaidorincurredtoorganizethePartnership(unlessanelectionismadepursuanttoCodeSection709(b))ortopromotethesaleofinterestsinthePartnershipandbytreatingdeductionsforanylossesincurredinconnectionwiththesaleorexchangeofPartnershippropertydisallowedpursuanttoSection267(a)(1)orSection707(b)oftheCodeasexpendituresdescribedinSection705(a)(2)(B)oftheCode);(c)inlieuofdepreciation,depletion,amortization,andothercostrecoverydeductionstakenintoaccountincomputingtotalincomeorloss,thereshallbetakenintoaccountDepreciation;(d)gainorlossresultingfromanydispositionofPartnershippropertywithrespecttowhichgainorlossisrecognizedforfederalincometaxpurposesshallbecomputedbyreferencetotheGrossAssetValueofsuchpropertyratherthanitsadjustedtaxbasis;and(e)intheeventofanadjustmentoftheGrossAssetValueofanyPartnershipassetwhichrequiresthattheCapitalAccountsofthePartnershipbeadjustedpursuanttoRegulationsSection1.704-1(b)(2)(iv)(e),(f)and(m),theamountofsuchadjustmentistobetakenintoaccountasadditionalNetIncomeorNetLosspursuanttoExhibitB.AdjustedNetEarningsmeansnetearnings(loss)attributabletocommonstockholdersasreportedintheCompany’speriodicreportsfiledwiththeSecuritiesandExchangeCommission,providedthatsuchamountshallbeadjustedbyreversingthefollowing,totheextentsuchadjustmentsweremadeincalculatingsuchnetearnings(loss)attributabletocommonstockholders:AdjustedNetEarningsfromOperationsmeans,withrespecttoanyfiscalperiodonaconsolidatedbasis,theParent’sandeachBorrower’snetincomeafterprovisionforincometaxesforsuchfiscalperiod,asdeterminedinaccordancewithGAAPandreportedontheFinancialStatementsforsuchperiod,excludinganyandallofthefollowingincludedinsuchnetincome:(a)gainorlossarisingfromthesaleofanycapitalassets;(b)gainarisingfromanywrite-upinthebookvalueofanyasset;(c)earningsofanyPersonotherthanaSubsidiaryinwhichanyBorrowerhasanownershipinterestunless(andonlytotheextent)suchearningsshallactuallyhavebeenreceivedbysuchBorrowerintheformofcashdistributions;(d)earningsofanyPersontowhichallorsubstantiallyalloftheassetsofanyBorrowershallhavebeensold,transferredordisposedof,orintowhichanyBorrowershallhavebeenmerged,orwhichhasbeenapartywithanyBorrowertoanyconsolidationorotherformofreorganization,priortothedateofsuchtransaction;(e)gainorlossarisingfromtheacquisitionofdebtorequitysecuritiesoftheParentandtheBorrowersorfromcancellationorforgivenessofDebt;and(f)gainorlossarisingfromextraordinaryitems,asdeterminedinaccordancewithGAAPorfromanyothernon-recurringtransaction.Incomeyearmeansanyyearoraccountingperiodbeginning1Julyofonecalendaryearandending30JuneofthefollowingcalendaryearoranyotherperiodthattheTrusteesbyresolutionadopt;EarningsfromOperationsforanyperiodmeansnetearningsexcludinggainsandlossesonsalesofinvestments,extraordinaryitemsandpropertyvaluationlosses,asreflectedinthefinancialstatementsoftheCompanyanditsSubsidiariesforsuchperiod,determinedonaconsolidatedbasisinaccordancewithGAAP.NonqualifyingIncomemeansanyamountthatistreatedasgrossincomeforpurposesofSection856oftheCodeandwhichisnotQualifyingIncome.DepreciationExpensemeans,foranyperiodwithrespecttoanyPerson,depreciation,amortization,depletionandotherlikereductionstoincomeofsuchPersonforsuchperiodnotinvolvinganyoutlayofcash,determined,withoutduplicationanddeterminedonaconsolidatedbasis,inaccordancewithIFRS.CashFlowfromOperationsmeansnetcashfundsprovidedfromoperations,exclusiveofCashfromSalesorRefinancing,oftheCompanyorinvestmentofanyCompanyfunds,withoutdeductionfordepreciation,butafterdeductingcashfundsusedtopayorestablishareserveforexpenses,debtpayments,capitalimprovements,andreplacementsandforsuchotheritemsastheBoardofDirectorsreasonablydeterminestobenecessaryorappropriateandsubjecttoLoanConditions.EarningsBeforeInterestandTaxesmeansforanyperiodthesumof(i)netincome(orloss)ofBorrowersonaConsolidatedBasisforsuchperiod(excludingextraordinarygainsandlosses),plus(ii)allinterestexpenseofBorrowersonaConsolidatedBasisforsuchperiod,plus(iii)allchargesagainstincomeofBorrowersonaConsolidatedBasisforsuchperiodforfederal,stateandlocaltaxes.AdjustedNetOperatingIncomeor“AdjustedNOI”means,foranyperiod,theNetOperatingIncomeoftheapplicableHotelPropertiesforsuchperiod,subjecttothefollowingadjustments:CoreEarningsmeansthenetincome(loss),computedinaccordancewithGAAP,excluding(i)non-cashequitycompensationexpense,(ii)theIncentiveCompensation,(iii)acquisitionfees,(iv)financingfees,(v)depreciationandamortization,(vi)anyunrealizedgainsorlossesorothernon-cashitemsthatareincludedinnetincomefortheapplicablereportingperiod,regardlessofwhethersuchitemsareincludedinothercomprehensiveincomeorloss,orinnetincome,and(vii)one-timeeventspursuanttochangesinGAAPandcertainnon-cashcharges,ineachcaseafterdiscussionsbetweentheManagerandtheIndependentDirectorsandapprovedbyamajorityoftheIndependentDirectors.AdjustedOperatingIncomemeansforanyperiod(x)theconsolidatedoperatingincomeofHoldingsanditsSubsidiariesforsuchperiodplus(y)thesumoftheconsolidateddepreciationexpenseandconsolidatedamortizationexpenseofHoldingsanditsSubsidiariesforsuchperiod,allasdeterminedinaccordancewithGAAP,itbeingunderstoodthatthedeterminationoftheamountspecifiedinclauses(x)and(y)shallbemadeonaconsistentbasiswiththemethodologyutilizedbyHoldingstodeterminesuchamountontheEffectiveDate,providedthat(i)forthepurposesofSection8.08only,foranyTestPeriodduringwhichanyacquisitionofanyPersonorbusinessoccurs,AdjustedOperatingIncomeshallgiveproformaeffecttosuchacquisitionasifitoccurredonthefirstdayofsuchTestPeriodand(ii)forallpurposes,foranyperiodwhichincludesanyRestructuringChargeQuarterthereshallbeexcludedindeterminingAdjustedOperatingIncomeanyportionofthe1996RestructuringChargewhichreducedtheconsolidatedoperatingincomeofHoldingsanditsSubsidiariesforsuchperiod.ConsolidatedNetEarningsmeans,foranyperiod,thenetincome(loss)ofBorrowerforsuchperiod,asdeterminedonaConsolidatedbasisandinaccordancewithGAAP.Depreciationmeans,foreachfiscalyearorotherperiod,anamountequaltothedepreciation,amortizationorothercostrecoverydeductionallowablewithrespecttoanassetforsuchyearorotherperiod,exceptthatiftheGrossAssetValueofanassetdiffersfromitsadjustedbasisforfederalincometaxpurposesatthebeginningofsuchyearorotherperiod,DepreciationshallbeanamountwhichbearsthesameratiotosuchbeginningGrossAssetValueasthefederalincometaxdepreciation,amortizationorothercostrecoverydeductionforsuchyearorotherperiodbearstosuchbeginningadjustedtaxbasis;provided,however,thatifthefederalincometaxdepreciation,amortizationorothercostrecoverydeductionforsuchyeariszero,DepreciationshallbedeterminedwithreferencetosuchbeginningGrossAssetValueusinganyreasonablemethodselectedbytheGeneralPartner.NetCashFromOperationsmeansthenetcashproceedsfromtheoperationofthePartnership'sbusinesslesstheportionthereofusedtoestablishreasonablereservesforortopayPartnershipexpenses,debtpaymentsandcapitalexpenditures.“NetCashfromOperations”shallnotincludeanycashproceedswhichconstituteNetCashfromSaleorRefinancing,shallnotbereducedbydepreciation,costrecovery,amortizationorsimilarnoncashdeductions,andshallbeincreasedbyanyreductionofreservespreviouslyestablishedbytheGeneralPartner.Alternativeminimumtaxableincomemeansthesumofthefollowingforthetaxableyear:CashfromOperationsmeansthenetcashrealizedbytheCompanyfromanysourceotherthanaCapitalTransaction,afterpaymentofallcashexpendituresoftheCompany,including,butnotlimitedto,alloperatingexpensesincludingallfeespayabletotheManagerorAffiliates,allpaymentsofprincipalandinterestonindebtedness,expensesforrepairsandmaintenance,capitalimprovementsandreplacements,andsuchreservesandretentionsastheManagerreasonablydeterminestobenecessaryanddesirableinconnectionwithCompanyoperationswithitsthenexistingassetsandanyanticipatedacquisitions.NetIncome(Loss)means,foranyPersonforanyperiod,theaggregateofnetincome(orloss)ofsuchPersonanditsSubsidiariesforsuchperiod,determinedonaconsolidatedbasisinconformitywithGAAP.DepreciationandAmortizationExpensemeans(withoutduplication),foranyperiod,thesumforsuchperiodof(i)totaldepreciationandamortizationexpense,whetherpaidoraccrued,oftheConsolidatedEntities,plus(ii)anyConsolidatedEntity’sproratashareofdepreciationandamortizationexpensesofJointVentures.Forpurposesofthisdefinition,MAC’sproratashareofdepreciationandamortizationexpenseofanyJointVentureshallbedeemedequaltotheproductof(i)thedepreciationandamortizationexpenseofsuchJointVenture,multipliedby(ii)thepercentageofthetotaloutstandingCapitalStockofsuchPersonheldbyanyConsolidatedEntity,expressedasadecimal.AdjustedgrossincomemeanstheincomeusedbytheU.S.DepartmentofEducationtoqualifytheapplicantforthefederalincome-drivenrepaymentplan.DepreciationRecapturemeanstheportionofanygainfromthedispositionofanassetoftheCompanywhich,forU.S.federalincometaxpurposes,(1)istreatedasordinaryincomeunderSection1245oftheCode,(2)istreatedasordinaryincomeunderSection1250oftheCode,or(3)is“unrecapturedSection1250gain”assuchtermisdefinedinSection1(h)oftheCode.