Regulation S-T

Question: May a Commission filing contain graphics (such as .gif or .jpeg image files) that include information that is not text-searchable?

Answer: Rule 304(e) of Regulation S-T specifies that “filers may not present in a graphic or image file information such as text or tables that users must be able to search and/or download into spreadsheet form (e.g., financial statements); filers must present such material as text in an ASCII document or as text or an HTML table in an HTML document.” In our view, “information such as text or tables that users must be able to search and/or download” consists of all information that the filer is required to include in the particular filing, such as disclosures in response to applicable form and Regulation S-K items and any additional information required to be included under Securities Act Rule 408 or Exchange Act Rule 12b-20.

We recognize that registrants may present information in Commission filings in formats such as bar graphs or other graphics that are not text-searchable but that they believe may be more useful to readers than tables or paragraphs that present the same information in searchable form. We welcome the use of graphic and image files to make information more accessible for users, provided that the filing complies with applicable EDGAR size and formatting requirements and the filer’s use of graphics does not interfere with a user’s ability to search required information. Therefore, with regard to required disclosures, a filer may present required information using graphics that are not text-searchable and still comply with Rule 304(e) if the filer also presents the same information as searchable text or in a searchable table within the filing. The searchable information could be included, for example, together with the related graphic in the filing or in an appendix to the filing. Any additional information that the filer chooses to include in the filing and that is not required to be disclosed may be presented graphically without a separate text-searchable presentation. This interpretation also applies to material electronically furnished or submitted to the Commission through EDGAR. [January 23, 2015]

Question: Under Rule 405(a)(2) of Regulation S-T, a filer may submit its first Interactive Data File (or first Interactive Data File containing or required to contain, whichever first occurs, detail-tagged footnotes or schedules) within a 30-day grace period by amending the form to which the interactive data relates — for example, by filing a Form 10-Q amendment. Assuming the sole purpose of such amendment is to include the Interactive Data File as exhibit 101, what should the filer include in the amendment?

Answer: In the case of an amendment to a periodic report, the filer should include the cover page, an explanatory note, the signature page, an exhibit index, and exhibit 101. [May 29, 2009]

Question: A filer submits its first Interactive Data File on a voluntary basis — that is, before it is required to do so pursuant to the phase-in schedule — and uses the 30-day grace period applicable to initial submissions under Rule 405(a)(2) of Regulation S-T. When the filer becomes required to submit Interactive Data Files pursuant to the phase-in schedule, may it avail itself of an initial submission 30-day grace period again for its first required Interactive Data File?

Answer: No. Each filer has only one initial submission 30-day grace period irrespective of whether that initial submission is made voluntarily (i.e., in advance of its scheduled phase-in) or as required (i.e., at its scheduled phase-in). Similarly, each filer has only one 30-day grace period for its initial detail-tagged footnote and schedule submission, whether submitted voluntarily or as required. [May 29, 2009]

Question: If a filer submits its initial interactive data in advance of the phase-in schedule, can it wait to begin submitting its detail-tagged footnotes and schedules until it is required to do so under its scheduled phase-in?

Answer: Yes. Filers can also cease voluntary submissions of Interactive Data Files at any time until they are required to submit them pursuant to the phase-in schedule. [May 29, 2009]

Question: Rule 405(d)(4)(i) of Regulation S-T states that each amount (i.e., monetary value, percentage and number) within each footnote must be tagged separately. Is an amount expressed as text (e.g., seven percent) required to be tagged under this provision?

Answer: Yes. Each amount, whether expressed numerically or textually, must be tagged separately under Rule 405(d)(4)(i). This guidance also applies to tagging each amount within the financial statement schedules under Rule 405(e)(2)(i) of Regulation S-T. Each tagged amount must be mapped to the applicable monetary, decimal, percent, integer or shares data type element. [May 29, 2009]

Question: A filer's footnote states, “The assumed discount rate at December 31, 2008 is 7%.” Can this fact be tagged as a string of text in satisfaction of Rule 405(d)(4)(i) of Regulation S-T?

Answer: No. Rule 405(d)(4)(i) of Regulation S-T requires that each amount be separately tagged. Each tagged amount must be mapped to the applicable monetary, decimal, percent, integer or shares data type element. Guidance on how to associate a specific date with an amount is provided under Chapter 6 of Volume II of the EDGAR Filer Manual. [May 29, 2009]

Question: Rule 405(d)(4)(i) of Regulation S-T states that each amount (i.e., monetary value, percentage, and number) within each footnote must be tagged separately. How does this requirement apply when the numbers relate to periods or years, such as used in the following example? “Annual maturities of debt are: Year 1 (or 2010) is $1,000, Year 2 (or 2011) is $2,000, Year 3 (or 2012) is $3,000, Year 4 (or 2013) is $4,000, and Year 5 (or 2014) is $5,000.”

Answer: In this example, the only amounts that should be tagged are the dollar amounts. The “year” references (i.e., Year 1, 2010, etc.) merely provide context to the dollar amounts. Examples of other disclosures in which this format may be common are future minimum lease payments and unconditional purchase obligations. The filer should carefully review the elements in the standard taxonomy because in some cases, the taxonomy will include separate elements for each specific period, and in other cases, the filer would use the same element from the taxonomy and distinguish each period by creating contextual information (see Section 6.5 of the EDGAR Filer Manual for guidance on defining contexts). [May 29, 2009]

Question: Will the filer be permitted to include in interactive data format the auditor's report on the financial statements, or an assurance report on the interactive data voluntarily obtained from a third party, in its Interactive Data File submitted to the Commission?

Answer: No. Under Rule 405(b) of Regulation S-T, only the filer's financial statements, financial statement footnotes, and financial statement schedules are permitted to be included in the Interactive Data File submitted to the Commission. [May 29, 2009]

Question: Must an Interactive Data File that complies with the requirements of Rule 405 of Regulation S-T appear identical to the traditional format financial statements when displayed by a viewer on the Commission's website?

Answer: No. There is no such requirement. [May 29, 2009]

Question: A filer is required to post an interactive data file on the filer's web site, if it has one. The filer cannot comply with this requirement by providing a hyperlink on its web site to the Commission's web site. See Securities Act Release No. 9002 (Jan. 30, 2009). May the filer comply with this requirement by providing a hyperlink on its web site directly to the interactive data file, which is itself on a non-Commission third-party web site?

Answer: Yes, if the hyperlink goes directly to the interactive data file, the interactive data file is made available in the required time frame, and access to the interactive data file is free of charge to the user. [Sep. 14, 2009]

Question: How does a filer determine when it is required to submit interactive data and to “detail tag” the financial statement footnotes and schedules in its interactive data?

Answer: A filer first assesses its filing status at the end of each fiscal year (by looking to its public float as of the end of the most recently completed second quarter) and then follows the phase-in provisions for that status in the filings it makes during the immediately following fiscal year.

For example, as of December 31, 2009, a calendar-year domestic filer is a large accelerated filer with a public float under $5 billion on the last business day of its second quarter ended June 30, 2009. For purposes of its 2010 filings, the filer will follow the submission requirements of Item 601(b)(101)(i)(B) of Regulation S-K and the detail tagging requirements of Rule 405(f)(2) of Regulation S-T. Accordingly, the filer is required to submit interactive data with its Forms 10-Q for the quarters ended June 30 and September 30, 2010 but need not detail tag the financial statement footnotes and schedules until its Form 10-Q for the quarter ended June 30, 2011, assuming that, as of December 31, 2010, it is a large accelerated filer with a public float under $5 billion on the last business day of its second quarter ended June 30, 2010.

If the filer, as of December 31, 2010, is no longer a large accelerated filer, for purposes of its 2011 filings, it will follow the submission requirements of Item 601(b)(101)(i)(C) of Regulation S-K and the detail tagging requirements of Rule 405(f)(3) of Regulation S-T. Accordingly, the filer would not be required to submit interactive data with its Form 10-K for the year ended December 31, 2010 or Form 10-Q for the quarter ended March 31, 2011, but it would be required to submit interactive data with its Forms 10-Q for the quarters ended June 30 and September 30, 2011. The filer would not be required to detail tag the financial statement footnotes and schedules until its Form 10-Q for the quarter ended June 30, 2012.

Conversely, if the filer, as of December 31, 2010, is a large accelerated filer with a public float over $5 billion on the last business day of its second quarter ended June 30, 2010, it will follow the submission requirements of Item 601(b)(101)(i)(A) of Regulation S-K and the detail tagging requirements of Rule 405(f)(1) of Regulation S T. Accordingly, the filer would be required to submit interactive data with its Form 10 K for the year ended December 31, 2010 and Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2011 and to detail tag the financial statement footnotes and schedules in the interactive data it submits with all of these forms, even though the filer is in its first year of interactive data reporting. A filer that is required to begin detail tagging within its first year of interactive data reporting may apply for a continuing hardship exemption pursuant to Rule 202 of Regulation S-T if it cannot detail tag without undue burden or expense. Such applications will be considered on a case-by-case basis. [Sept. 17, 2010]

Question: If a filer voluntarily submits an interactive data file before it “first was required to submit” such file for purposes of Rule 406T(d) of Regulation S-T, does that voluntary submission start the rule's 24-month modified liability period?

Answer: No. [Sept. 17, 2010]