normalized earnings - Investment & Finance Definition
Earnings that have been adjusted by a company to omit irregular expenses against earnings. Generally, when a company adjusts earnings statements for this reason, it’s because the expenses aren’t representative of its true business. For example, expenses that are deducted often include the cost of stock options for employees. Other omitted items include extraordinary items, charges for discontinued operations, and one-time charges. Normalized earnings are in contrast to GAAP earnings (Generally Accepted Accounting Principles), which follow set rules developed by accountants. Also called pro-forma earnings. See also GAAP.