One-time expenses or revenues arise from non-operating activities, that is, those outside a company’s usual activities. An example of a one-time expense would be costs associated with a relocation while an example of one-time revenue would the periodic sale of an asset—such as a building—at a profit.
One-time expenses and revenues are not included in the calculation of operating income (EBIT) to ensure the owner/managers get an accurate picture of the company’s operating potential. They are, however, included in net income before income taxes are calculated.
More about one-time expenses/revenues
The excerpt below shows how the one-time expenses and revenues for the examples above appear on the income statement of a retail or wholesale company.