The amount of adjustments made to net income to account for items that do not affect cash flow during a specific period. Non-cash items are expenses or revenues that are recognized on the income statement but do not result in cash inflows or outflows. Examples of non-cash items include depreciation, amortization, deferred taxes, stock-based compensation, unrealized gains or losses, and provisions for future liabilities. Non-cash items are added back to or subtracted from net income to calculate cash flow from operations on the cash flow statement.