# Why does the difference between two year's retained earnings not add up?

I am looking at a company's 10-k filing history for my valuation. I have collected figures for retained earnings, net income and dividend payments.

I would expect:

retained earnings(y2) = retained earnings(y1) + Net income(y2) - Dividends(y2)


However this is off by a about a million (or 5%). Does anyone have any accounting insights on why this might be off??

• If RE(y2) lower than expected there could have been an "impairment", i.e reduction in asset value. – Alex C Nov 24 '16 at 21:18
• Acquisitions can also mess things up. – Alex C Nov 24 '16 at 22:27
• Thanks for this. I'm thinking it might also be stock buybacks, that brings the number a lot closer. Close enough for now – Matthias Nov 24 '16 at 23:00