surplus

noun
sur·plus | \ ˈsər-(ˌ)pləs \

Definition of surplus 

(Entry 1 of 2)

1a : the amount that remains when use or need is satisfied

b : an excess of receipts over disbursements

2 : the excess of a corporation's net worth over the par or stated value of its stock

surplus

adjective

Definition of surplus (Entry 2 of 2)

: more than the amount that is needed : constituting a surplus surplus food/clothing/equipment When the sea captains returned, they would sell their surplus wares on the wharves. —Carol Vogel Long before the comparable worth battles of today, the economic value of women's work was evident to farm women who set prices for the surplus butter, candles, soap, honey, preserves, chickens, and eggs they raised or manufactured. —Mary Kay Blakely

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Examples of surplus in a Sentence

Noun

If there is any surplus, it will be divided equally. There is a surplus of workers and not enough jobs.

Recent Examples on the Web: Noun

In principle, the tournament is an even playing field, where nations—irrespective of population, GDP, history, life expectancy, military budget, trade surplus, space program, film industry, and so on—are reduced to 11 men on the pitch. Kanishk Tharoor, The Atlantic, "The Elusive Underdog Magic of the World Cup," 14 July 2018 When there's a wind energy surplus, like the one that happened in Texas in 2016, wind turbines risk being turned off. David Grossman, Popular Mechanics, "Tesla Is Revving Up to Build the World's Largest Battery Farm in California," 2 July 2018 The goal: to get the public to focus on the budget surplus, not a suit. Amanda Fitzsimons, Glamour, "It’s 2018, and Female Candidates Are Tweeting About Lipstick. Is This Progress?," 1 July 2018 Trade has boosted living standards worldwide, buoying both nations with trade deficits, like the United States, as well as those with surpluses, like China. Mark Trumbull, The Christian Science Monitor, "Is world using US as a 'piggy bank'? The tensions behind a Trump comment.," 12 June 2018 The result has been six consecutive years of budget surpluses that help build capital reserves. Daniel Chang, miamiherald, "Your taxes are paying for this $1.5 billion makeover to Miami's public hospital system | Miami Herald," 9 May 2018 Thanks to a combination of Walker’s spending cuts and good economic times, Wisconsin currently boasts a budget surplus. Eric Levitz, Daily Intelligencer, "Scott Walker Will Give 671,00 Wisconsin Families an Election-Year Check," 3 May 2018 What began as budget surplus in 2015 followed by two years of planning became a contest that would involve more than 100 church members and would equip and fund Houston area social entrepreneurship ventures. Tracy Maness, Houston Chronicle, "Church awards $240,000 to social entrepreneurship ventures," 27 Mar. 2018 Meanwhile, the county is widely considered well run and has had a budget surplus for years. Michael Smolens, sandiegouniontribune.com, "Is the non-existant school board election cause for alarm?," 21 Mar. 2018

Recent Examples on the Web: Adjective

Even as Britain begins its exit, there are at least 12 power-cable projects valued at more than 10 billion euros ($12 billion) in the works to expand the island nation’s connection to the surplus generating capacity on the continent. Mathew Carr, Bloomberg.com, "Britain Will Probably See Higher Risks of Blackouts After Brexit," 29 Jan. 2018 After accounting for certain mandatory spending — including about a half-billion-dollar deposit into the state’s rainy day fund — Baker, a Republican who is up for reelection in November, is proposing $575 million in outlays with the surplus cash. Joshua Miller, BostonGlobe.com, "Governor Baker proposes $72 million for school safety," 13 July 2018 Another is ending a program that allows the Agriculture Department to buy surplus sugar and sell it to ethanol companies at a loss. The Editorial Board, WSJ, "A Chance for Sugar Welfare Reform," 15 May 2018 For example, the credit that Arizona Public Service gives customers for their surplus solar energy will be recalculated and likely reduced based on market prices in the future (also see related tax credit information below). Ryan Randazzo, azcentral, "Should you install solar on your home? 10 key considerations," 4 July 2018 The costs will be paid for from proceeds of a sale of surplus highway equipment, Lopp said, so the money won't come directly from taxpayers' pockets. Grace Schneider, The Courier-Journal, "An Indiana county is paying a steep price for burying toxic coal ash," 18 May 2018 These robots came into the hands of police thanks to the Department of Defense's 1033 program, which funnels surplus military equipment into law enforcement agencies. Sophie Weiner, Popular Mechanics, "There Are Many, Many Ex-Military Police Robots in the U.S.," 8 July 2016 Some housing may be built on 11 surplus property sites the county owns. Gary Warth, sandiegouniontribune.com, "County budget includes plans for homeless housing," 25 June 2018 The property marks the first piece of surplus land the city is selling this year. Erin Hegarty, Naperville Sun, "City council approves selling 8.2 acres of surplus land in west Naperville for $2.2 million," 6 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'surplus.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of surplus

Noun

14th century, in the meaning defined at sense 1a

Adjective

1589, in the meaning defined above

History and Etymology for surplus

Noun

Middle English, from Anglo-French, from Medieval Latin superplus, from Latin super- + plus more — more at plus

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Statistics for surplus

Last Updated

7 Sep 2018

Look-up Popularity

Time Traveler for surplus

The first known use of surplus was in the 14th century

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More Definitions for surplus

earned surplus

noun

Financial Definition of earned surplus

What It Is

Earned surplus is the sum of a company's profits, after dividend payments, since the company's inception. It can also be called retained earnings, retained capital, or accumulated earnings.

How It Works

Let's look at an example to illustrate.

Assume Company XYZ has been in business for five years, and it has reported the following annual net income:

Year 1: $10,000

Year 2: $5,000

Year 3: -$5,000

Year 4: $1,000

Year 5: -$3,000

Assuming Company XYZ paid no dividends during this time, XYZ's earned surplus is the sum of its net profits since inception: $10,000 + $5,000 - $5,000 + $1,000 - $3,000 = $8,000.

In subsequent years, XYZ's earned surplus will change by the amount of each year's net income, less dividends.

The statement of earned surplus summarizes changes in earned surplus for a fiscal period, and total earned surplus appears in the shareholders' equity portion of the balance sheet. This means that every dollar of earned surplus is essentially another dollar of shareholders' equity.

A company's board of directors may "appropriate" some or all of the company's earned surplus when it wants to restrict dividend distributions to shareholders. Appropriations are usually done at the board's discretion, although bondholders may contractually require the board to do so. Appropriations appear as a special account in the earned surplus section. When an appropriation is no longer needed, it is transferred back to earned surplus. Because earned surplus is not cash, a company may fund appropriations by setting aside cash or marketable securities for the projects indicated in the appropriation.

Why It Matters

It is important to understand that earned surplus does not represent extra cash or cash left over after the payment of dividends. Rather, earned surplus demonstrates what a company did with its profits; they are the amount of profit the company has reinvested in the business since its inception. These reinvestments are either asset purchases or liability reductions.

Earned surplus somewhat reflects a company's dividend policy, because it reflects a company's decision to either reinvest profits or pay them out to shareholders. Ultimately, most analyses of earned surplus focuses on evaluating which action generated or would generate the highest return for the shareholders.

Most of these analyses involve comparing earned surplus per share to profit per share over a specific period, or they compare the amount of capital retained to the change in share price during that time. Both of these methods attempt to measure the return management generated on the profits it plowed back into the business. Look-through earnings, a method developed by Warren Buffett that accounts for taxes, is another method in this vein.

Capital-intensive industries and growing industries tend to retain more of their earnings than other industries because they require more asset investment just to operate. Also, because earned surplus represents the sum of profits less dividends since inception, older companies may report significantly higher earned surplus than identical younger ones.

This is why comparison of earned surplus is difficult but generally most meaningful among companies of the same age and within the same industry, and the definition of "high" or "low" earned surplus should be made within this context.

Source: Investing Answers

surplus

noun
sur·plus | \ ˈsər-pləs \

Kids Definition of surplus

 (Entry 1 of 2)

: an amount left over : excess

surplus

adjective

Kids Definition of surplus (Entry 2 of 2)

: left over : extra surplus wheat

surplus

noun
sur·plus | \ ˈsər-ˌpləs \

Legal Definition of surplus 

1a : an amount that remains when a use or need is satisfied

b : an excess of receipts over disbursements

c : the value of assets after subtracting liabilities

2 : an excess of the net worth of a corporation over the par value of its capital stock — compare undivided profits

capital surplus

: all surplus other than earned surplus

earned surplus

: the surplus that remains after deducting losses, distributions to stockholders, and transfers to capital stock accounts

paid-in surplus

: surplus resulting from the sale of stock at amounts above par

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