Non-operating income items on an income statement include revenue and expense items that weren't generated as part of a company's regular course of doing business. The expenses added in this final section of the income statement can negate an operating income, while the revenue in this section may turn an operating loss into a net profit.
Investment gains are among the common revenue sources presented in the non-operating section. Companies sometimes invest in other assets to diversify risk. When these assets generate returns, they are recorded as non-operating revenue. Interest on money held in business accounts is also recorded in this section as interest revenue. The sale of assets is another common revenue source. A business might sell several pieces of equipment or a building, for instance. Money received as part of a successful lawsuit is irregular revenue as well.
Legal expenses are among the most common non-operating expenses recorded on income statements. Large companies sometimes pay settlements or judgments related to a lawsuit. While this money doesn't relate to regular business activities, it does impact net income. Therefore, legal expenses or losses from a lawsuit are recorded as non-operating items. Closing down divisions, offices or stores also may have expenses that get recorded in this section.