5280 Extraordinary and Special Items

Extraordinary items are material events or transactions that are distinguished by their unusual nature and by the infrequency of their occurrence.

Examples of material extraordinary items include capital assets that were impaired by extraordinary events such as Hurricane Sandy or Hurricane Katrina. The agency reports these impaired values as extraordinary items rather than regular operating expenses to highlight their unusual and infrequent nature.

If a material event or transaction is unusual in nature or occurs infrequently but not both, it does not meet criteria for classification as an extraordinary item; instead, the agency classifies it as a special item. Both extraordinary and special items are distinguishable from normal operating items and the agency thus reports them separately.