2.2 Common Non-GAAP Measures
The following are examples of common non-GAAP financial measures:
-
Operating income that excludes one or more expense items (see Section 4.3).
-
Adjusted revenues, adjusted earnings, and adjusted earnings per share (see Section 4.3).
-
EBIT and EBITDA, and adjusted EBIT and EBITDA (see Sections 3.5 and 4.6).
-
Core earnings (see Section 4.3.4).
-
Free cash flow (see Section 4.11).
-
Funds from operations (see Section 4.12).
-
Net debt, which could be calculated as borrowings less cash and cash equivalents or borrowings less derivative assets used to hedge the borrowings.
-
Measures presented on a constant-currency basis, such as revenues and operating expenses (see Section 4.13).
Certain measures not listed above may be common in specific
industries, such as broadcast cash flows used in the radio, television, and cable
industries; net operating income used in the real estate industry; EBITDAX used in
the oil and gas industry; and ROIC used in the retail and the travel and hospitality
industries.1
Footnotes
1
For more information about the use of non-GAAP measures in
various industries, see Chapter 6 of Deloitte’s Roadmap SEC Comment Letter Considerations, Including
Industry Insights.