A company's share of
an unconsolidated subsidiary's earnings.
2016.01.22 Royal Bank of Canada announces redemption of Trust Preferred Securities issued by Business Bancorp Capital Trust I Royal Bank of Canada (RY on TSX and NYSE) today announced that Business Bancorp Capital Trust I (the «Trust»), a Delaware trust and an indirect,
unconsolidated subsidiary of Royal Bank of Canada...
If we did not make this adjustment, we would be holding companies accountable for
unconsolidated subsidiary assets without measuring the income from those assets in our calculation of ROIC.
Sometimes, companies bundle
their unconsolidated subsidiary income into a non-operating line item.
IBM bundles the income from
these unconsolidated subsidiaries into «other income», so we have no way of knowing the amount of money IBM made from their equity method investments.
Assets such as excess cash, discontinued operations, and
unconsolidated subsidiaries are added to our DCF value as they represent cash that can be returned to shareholders in the future.
Fiat defines trading profit as income before restructuring, net financial expenses, income taxes, minority interests and equity in income, or losses, of
unconsolidated subsidiaries and affiliates.