Example : MyObject myObj1 = new MyObject("obj1name", new Long(1), previousVar); When trying to extract a method from this line , Idea just propose the previousVar as parameter of the new method. The elements "obj1name" and new Long(1) are not evaluated has possible parameters. You have to introduce them as loca variables, extract the method and then inline the created variables. Having all that done in "extract method" would be better.