restricted retained earnings

Restricted Retained Earnings

The earnings of a publicly-traded company that it is legally or contractually obligated not to pay as dividends. The most common reason for earnings to become restricted is the existence of dividends in arrears. That is, if a company has not made legally promised dividend payments to preferred stockholders, it must make these payments before it can pay any other dividends. Thus, the earnings become known as restricted retained earnings. Restricted retained earnings are also called the restricted surplus.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

restricted retained earnings

The retained earnings that are unavailable for the payment of dividends to common stockholders. For example, dividend arrearages on cumulative preferred stock must be paid before any dividend payments can be made to common stockholders. Therefore, the arrearages will result in restricted retained earnings. Also called restricted surplus.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The FHLBNY's retained earnings increased during the quarter by $53.2 million to $1.7 billion as of September 30, 2018, of which $1.1 billion was unrestricted retained earnings and $0.6 billion was restricted retained earnings. At September 30, 2018, the FHLBNY met its regulatory capital ratios and liquidity requirements.
Its retained earnings increased during 2017 by USD134.3m to USD1.5bn as of December 31, 2017, of which nearly USD1.067bn was unrestricted retained earnings and USD479m was restricted retained earnings.
The FHLBNY's retained earnings increased during the quarter by USD30.4 million to USD1.3 billion as of June 30, 2016, of which USD984.5 million was unrestricted retained earnings and USD338.1 million was restricted retained earnings.
Total retained earnings at June 30, 2018, included $316.6 million of restricted retained earnings, compared with $282.5 million of restricted retained earnings at December 31, 2017.
The FHLBNY's retained earnings increased during the quarter by USD22 million to USD1.3 billion as of March 31, 2016, of which USD972.5 million was unrestricted retained earnings and USD319.7 million was restricted retained earnings.
At December 31, 2013, the FHLBNY's level of restricted retained earnings was USD157.1m.
The FHLBNY's retained earnings increased during the quarter by $29.0 million to $1.6 billion as of March 31, 2018, of which $1.1 billion was unrestricted retained earnings and $504.4 million was restricted retained earnings. At March 31, 2017, the FHLBNY met its regulatory capital ratios and liquidity requirements.
The FHLBNY's retained earnings increased during 2015 by USD187.4 million to USD1.3 billion as of December 31, 2015, of which approximately USD1.0 billion is unrestricted retained earnings and approximately USD300 million is restricted retained earnings.
At September 30, 2013, FHLBNY's level of restricted retained earnings was USD139.5m.
Total retained earnings at March 31, 2016, included $173.8 million of restricted retained earnings compared with $162.5 million of restricted retained earnings at December 31, 2015.
The FHLBNY's level of restricted retained earnings as of the same date was USD 204.7m.
The FHLBNY's retained earnings increased during the quarter by $22 million to $1.3 billion as of March 31, 2016, of which $972.5 million was unrestricted retained earnings and $319.7 million was restricted retained earnings. At March 31, 2016, the FHLBNY met its regulatory capital ratios and liquidity requirements.

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