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Non-GAAP Financial Measures
Practical Law Glossary Item 1-382-3650 (Approx. 2 pages)
Glossary
Non-GAAP Financial Measures
A numerical measure of a company’s historical or future financial performance, financial position, or cash flows that does one of the following:
- Excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with US GAAP in the company’s income statement, balance sheet or statement of cash flows (or equivalent statements).
- Includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure calculated and presented in accordance with US GAAP in the company’s income statement, balance sheet or statement of cash flows (or equivalent statements).
(Rule 101(a), Regulation G and Item 10(e)(2), Regulation S-K.)
Non-GAAP financial measures do not include financial information that does not have the effect of providing numerical measures that are different from the comparable GAAP measure. The SEC has regulated the use of non-GAAP financial measures in SEC filings and other public disclosures in Regulation G and Item 10(e) of Regulation S-K.
For more information, see Practice Note, Using Non-GAAP Financial Information.