nonoperating unit

(redirected from Non-Operating Units)

Nonoperating Unit

A company or department that does not manage any assets or directly conduct any business whatsoever. Rather, a nonoperating unit collects money and distributes it to the appropriate parties. For example, a nonoperating unit may own an asset but lease it to another company. If this is its only activity, the nonoperating unit does nothing except receive lease payments and distribute profits to stockholders or partners.

nonoperating unit

A firm or a firm's subsidiary that operates no assets on its own but distributes income received from other firms that operate assets leased from the nonoperating company. For example, a railroad may lease its line and equipment to other railroads and merely distribute net income received from the lease payments to the nonoperating railroad's stockholders. Compare operating unit.
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But interestingly, if you factor in the loan portfolios in Bank of America's non-operating units, the size of its aggregate loan portfolio actually declined slightly between the end of last year and the end of the first quarter, dropping $441 million.

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