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Chapter 3 — Disclosures About Non-GAAP Measures

3.5 EBIT and EBITDA, and Adjusted EBIT and EBITDA

3.5 EBIT and EBITDA, and Adjusted EBIT and EBITDA

EBIT and EBITDA are two of the most commonly used non-GAAP measures and may be used to assess a registrant’s performance, its liquidity, or in some cases both. See Section 3.2.2 for further discussion.

Footnotes

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As noted in Section 4.1, Regulation S-K, Item 10(e), prohibits a registrant from excluding “charges or liabilities that required, or will require, cash settlement, or would have required cash settlement absent an ability to settle in another manner, from non-GAAP liquidity measures, other than [EBIT and EBITDA]” (emphasis added), referred to as the “liquidity measure prohibition.”