Generally speaking this would happen when a company has a large gain that doesnu2019t come from operating their business. For example an accounting tax benefit could result in net income despite a loss from operations. This might happen when a company loses money for an extended period of time and can use those losses to offset future income for tax purposes. In this scenario the amount that they can deduct shows up as an asset on their balance sheet but only once a company establishes that they are likely to start making a profit and can use those past losses to reduce taxes on current income.So letu2019s say you have a start up and it loses 10 million dollars over its first 5 years in business. In year 6 the company might decide they are going to start making a profit soon and that 2 million of those previous lossses can be used to reduce their tax bill. In that scenario the company would record a 2 million dollar gain from the u201ctax benefitu201d that would show up as income but not operating income. If the company lost a million dollars from running their business they could still have a 1 million dollar profit since the act of adding a 2 million dollar tax asset to the balance sheet adds 2 million in income during the quarter. Itu2019s of course not real income. Itu2019s income derived from accounting rules,