What is the Other Total Stockholders Equity of a Company?

Other Total Stockholders Equity: TL;DR

Other Total Stockholders Equity is an umbrella term that refers to any increases or decreases in shareholders' equity that do not come from net income or direct contributions or withdrawals by shareholders. It might include items such as unrealized gains or losses, foreign currency translation adjustments, or minimum pension liability adjustments.

Other Total Stockholders Equity = Total Stockholders Equity - Common Stock Equity - Retained Earnings

In-Depth Understanding

Going into more depth, Other Total Stockholders Equity, sometimes referred to as 'Other Equity', is a sub-component of a company's total equity or net assets. Equity represents the residual interest in the assets of an entity after deducting liabilities. In other words, equity is equal to assets minus liabilities.

Other Total Stockholders Equity can be seen as a "catch-all" category that includes all other changes in equity not accounted for by the other standard line items. This includes, but is not limited to, unrealized gains and losses on available-for-sale securities, foreign currency translation adjustments, changes in the market value of certain types of derivative contracts, and minimum pension liability adjustments.

Other Total Stockholders Equity can give investors a more comprehensive understanding of a company's financial health and performance. However, because it can include a variety of different items, it is important for investors to delve into the details to understand what specific elements are driving changes in this account.

Real-world Examples

A Retail Company - Target Corporation

For Target Corporation, Other Total Stockholders Equity might include unrealized gains and losses on certain types of investments, adjustments due to changes in the fair value of derivatives used for hedging purposes, and foreign currency translation adjustments related to its international operations.

A Technology Company - Apple Inc.

For Apple Inc., Other Total Stockholders Equity could include unrealized gains and losses on its marketable securities, changes in the fair value of its derivative instruments, and adjustments due to new accounting standards or corrections of prior period errors.

An Energy Company - Chevron Corporation

For Chevron Corporation, Other Total Stockholders Equity might include unrealized gains and losses on its investments, changes in the fair value of its derivative contracts, foreign currency translation adjustments, and adjustments due to minimum pension liabilities.

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