50 Understanding the Numbers
EXHIBIT 2.11 Frequency and nature of extraordinary items.
1996 1997 1998 1999Debt extinguishments 60 62 73 56
Other 5 3 2 6
Total extraordinary items 65 65 75 62
Companies presenting extraordinary items 63 64 74 61
Companies not presenting extraordinary items 537 536 526 539
Total companies 600 600 600 600
SOURCE: American Institute of Certified Public Accountants, Accounting Trends and Techniques(New
York: AICPA, 1999), 392.
EXHIBIT 2.12 Discretionary extraordinary items.
Company Item or EventAmerican Building Maintenance Gain on an insurance settlement for damage to a
Inc. (1989) building from a San Francisco earthquake
Avoca Inc. (1995) Insurance proceeds from the destruction of a
building by a fire
BLC Financial Services Inc. (1998) Settlement of a lawsuit
KeyCorp Ohio (1999) Gain on the sale of residential mortgage loan-servicing
operations
Noble Drilling Corporation (1991) Insurance settlement due to deprivation of use of
logistics and drilling equipment abandoned in
Somalia due to civil unrest
NACCO Industries Inc. (1995) Gain on a downward revision of an obligation to the
United Mine Workers of America Combined Benefit
Fund
NS Group Inc. (1992) Loss from an accidental melting of radioactive
substance in the steel-making operation
Phillips Petroleum Company (1990) Gain from a settlement with the government of Iran
over the expropriation of Phillips’ oil production
interests
SunTrust Banks Inc. (1999) Gain on the sale of the Company’s consumer credit
portfolio
Weyerhaeuser Company (1980) Losses from Mount St. Helens eruption
SOURCES: Companies’ annual reports. The year following each company name designates the annual re-
port from which each example was drawn.