Excluding Items


DEFINITION of 'Excluding Items'

The common practice of leaving certain factors out of an overall calculation to remove the volatility that might otherwise impact is comparability or distort long-term forecasting. Excluding items can often refer to items left out of the calculation of some earnings per share numbers. Such items may include one-time items, extraordinary expenses or income.

BREAKING DOWN 'Excluding Items'

Excluding items is also common in the calculation of indices. For example, the Consumer Price Index (CPI) is commonly reported excluding two highly-volatile items - food and energy prices - to obtain the so called "core inflation" index.

  1. Inflation

    The rate at which the general level of prices for goods and services ...
  2. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  3. Diluted Earnings Per Share - Diluted ...

    Diluted Earnings Per Share (or Diluted EPS) is a performance ...
  4. Bureau Of Labor Statistics - BLS

    A government agency that produces economic data that reflects ...
  5. Index

    A statistical measure of change in an economy or a securities ...
  6. Deflation

    A general decline in prices, often caused by a reduction in the ...
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