Comprehensive Income

In accounting, not all income is the same. There's net income, which is what you probably think of when you think of income. Then there's a kind of miscellaneous category referred to as "other comprehensive income." Add net income to other comprehensive income...and you get comprehensive income.

So...what's this other comprehensive income? For lack of a better description, it's the fuzzier forms of income that aren't just someone paying you money for the product or service you provide. These are items that don't show up on the income statement.

It includes various unrealized gains or losses ("unrealized" meaning the company hasn't cashed it in yet). Like, if the company holds hedges or derivative instruments. Or if it has an unrealized gain or loss from the sale of stock. All this stuff gets thrown into the "comprehensive income" pile, along with the more straightforward net income.