2.3 Financial and Other Measures That Are Not Subject to the Rules
This section discusses financial and other measures (e.g., metrics)
that do not meet the definition of a non-GAAP measure under
the Rules. As indicated in the Release, such measures include:
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Certain financial, operating, or statistical metrics (operating measures or other measures such as dollar revenue per square foot; same-store sales; system-wide sales; revenues from slot machines for casinos provided that the sales figures were computed under GAAP; or unit sales, numbers of employees, numbers of subscribers, or numbers of advertisers).
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Financial measures required by GAAP, such as segment measures of profit or loss and total assets required by the guidance in ASC 280 on segment reporting.
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“[R]atios or statistical measures that are calculated using exclusively . . . financial measures calculated in accordance with GAAP.”
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“[M]easures required to be disclosed by GAAP, Commission rules, or a system of regulation of a government or governmental authority or self-regulatory organization.”
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Measures used in certain business combination transactions (e.g., a projection or forecast of the results of operations of a proposed business combination disclosed in a filing used for a proposed merger transaction).
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“[D]isclosure of amounts of expected indebtedness, including contracted and anticipated amounts.”
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“[D]isclosure of amounts of repayments that have been planned or decided upon but not yet made.”
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“[D]isclosure of estimated revenues or expenses of a new product line, so long as such amounts were estimated in the same manner as would be computed under GAAP” (e.g., projected revenue using GAAP principles).
Several of these items are discussed in the next sections.