United Parcel Service, Inc. offers a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Organic revenue growth, Non-GAAP measure (a) 14 % 4 % 18 % (a) A financial measure that is not in accordance with GAAP. To help audit committees with that role, the report offers a "roadmap" with three central components: (1) identify key discussion topics, (2) understand the role of the external auditor regarding non-GAAP measures, (3) and adopt leading practices. Reconciliation of GAAP Measures to Non-GAAP Measures (in thousands, except percentages and per share amounts) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021.

EBIT (a non-GAAP measure) represents earnings before net finance costs, For example, GE referred to one of these measures as industrial operating plus verticals earnings per share rather than simply adjusted, core, or non-GAAP earnings per share as As discussed in Section 1.4, NGFMs/ APMs are defined as financial mea-sures derived from adjusted GAAP/ IFRS measures and do not include other A common example of Non-GAAP earnings is EBITDA -- earnings before interest, tax, depreciation and amortization. Organic revenue and core constant currency results are non-GAAP financial measures. Non-GAAP measures have to be presented in proximity to the GAAP measure with an appropriate balance of discussion. Current Investor Presentation; Glossary of Financial Terms; Investor FAQs; Email Alerts; E-Delivery Sign-Up; IR Contacts; Careers. Healthcare is one of the industries (along with the IT, materials and utilities sectors) where non-GAAP reporting is most common. Reconciliations of the non-GAAP financial measures to the nearest excess tax benefits and tax deficiencies generated in the future, which may be favorable or unfavorable, is dependent upon the Companys future grants of share- Management included this non-GAAP measure to provide investors and prospective investors with an alternative method for assessing the Companys operating International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). AISC and AIC are non-GAAP metrics. defi ne each nonGAAP fi nancial measure and provide a clear expectation of the basis of calculation and the reason for presenting it, with a clear and meaningful label; use the measures with unbiased purpose i.e. Second, Non-GAAP measures can help provide a clearer long term view of the business and make it easier for investors to forecast future business performance. Public companies often use non-GAAP financial measures to help investors and other users of the financial statements understand a companys performance and/or financial See pages 1-2 for further discussion on non-GAAP measures. Non-GAAP metrics provide investors with additional disaggregation of income and expenses reported in profit and loss. A company has a loan with non-vanilla terms in an unconnected company which is due to be repaid in 5 years.

The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting 1 GAAP financial results are adjusted to exclude the effects of a non-cash charge. The Real Problem: Owner-Agent Conflict and the Integrity of the Capital Markets. Non-GAAP. Forward-looking statements are important because valuations are largely based on anticipated cash flows. However, non-GAAP figures are developed by the reporting company, so they may be subject to situations in which the incentives of shareholders and corporate management are not aligned.

87 % 92 % PepsiCo, Inc. and Subsidiaries Reconciliation of GAAP and Non-GAAP Information (unaudited) Note Certain amounts above may not sum due to rounding. The SEC issued warnings about the misleading nature of registrants presentation of non-GAAP financial measures as early as 2001. We believe that disclosing diluted earnings per share excluding the impact from acquisition integration expenses, acquisition inventory fair value adjustment, China investigation expenses and restructuring expenses is useful to investors as a measure of operating performance. Reconciliation of GAAP and Non-GAAP Information (unaudited) In discussing financial results and guidance, the Company refers to the following measures which are not in accordance with Though non-GAAP reporting rules havent changed, new pandemic-induced considerations and financial reporting challenges related to the presentation of non-GAAP measures have come to light. At the basic level, non-GAAP earnings are reported because management may find it to be a more suitable way to depict the companys earnings. 2021. Please revise your reconciliation for this non-GAAP measure to the most directly comparable GAAP This is usually an easy way to see a summary of the differences between GAAP and non-GAAP on a top line, bottom line, margin and per share basis. ~19% of cases where non-GAAP was less than GAAP. The use of non-GAAP measures in the S&P 500 increased from 59 percent to 96 percent of SEC filers between 1996 The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies.

Reconciliation of non-GAAP gross profit: GAAP gross profit $ 108,035 $ 119,303 $ 323,093 $ 301,685.

Discovery strives to be a company that gives back and benefits our people, communities, value chain, and planet, while prioritizing good corporate governance to build a more sustainable future. They provide In recent years, the use of non-GAAP measures such as earnings before interest, taxes, depreciation, and amortization (EBITDA) has grown. They've been around since the 1990s, yet they've become a hot topic recently with nearly 90% percent of the S&P 500 now using at least one type of non-GAAP measure. ~35% of cases where non-GAAP was greater than GAAP. VMware, from time to time, may incur charges or benefits that are outside of the ordinary course of VMwares business related to litigation and other contingencies. Reconciliation of GAAP and Non-GAAP Information (unaudited) In discussing financial results and guidance, the Company refers to the following measures which are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP): organic revenue growth, division operating profit, core results and core constant currency results. 722. following non-GAAP measures are relevant to the understanding of the Group financial performance: EBITDA (a non-GAAP measure) represents earnings before net finance costs, income tax, depreciation, amortisation, share of net profit or loss from associates and impairments.

Here is a sample approach for controls over non-GAAP measures. NON-GAAP FINANCIAL MEASURES We believe that revenues, net income and net income attributable to common stockholders ("NICS"), as defined by U.S. generally accepted accounting principles ("U.S. GAAP"), are the most appropriate earnings measurements. The new guidance reflects the SEC staff's recent focus on non-GAAP financial measures that calculate non-GAAP revenue in a manner perceived to be inconsistent with a While GAAP reporting guidelines are considered the industry standard, there is a place for non-GAAP financial reports. These practices together are called non-GAAP measures, and they present a number of challenges to businesses. The Company recorded a $385 million loss on asset disposal related to the sale of 703 locomotives. GAAP to Non-GAAP. 2020. VMware, from time to time, may incur charges or benefits that are outside of the ordinary course of VMwares business related to litigation and other contingencies. Non-GAAP measures can sometimes mislead investors Some investors and executives argue that unaudited performance figures, such as earnings before interest, taxes, depreciation and 720. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies. And perhaps more strikingly, in 2015, just 5.7 percent of companies in the S&P 500 Index closed their books exclusively using GAAP measures, compared to 25 percent in 2006. First, measures should have a demonstrable We spend lots of time explaining how GAAP earnings are not reliable measures of corporate profits, and non-GAAP earnings are worse. These unaudited figures can provide added insight when theyre used to supplement GAAP performance measures. The above explanation clears that the biggest difference between GAAP and Non-GAAP is that the former is industry standard. A non-GAAP measure is a supplemental figure that adjusts the most directly comparable measure determined in accordance with generally accepted accounting principles (GAAP). Please see the Companys Q2 2022 Earnings Release for a reconciliation to the most comparable GAAP measure. Pros and Cons of Using Non-GAAP Metrics for Executive Compensati Here are some EPS stats: (some of the releases were only guidance updates) 1694 reported just GAAP. The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2022 expected GAAP results for the Company.

Non-GAAP measures can be The application of and guidance to non-GAAP financial measures is hardly a new concept. And that its objective is to provide a clear picture of how business is operating from a financial point of view. VMware believes it is useful Offshore/Manufactured Products. They constitute a standardised way of describing the company's financial performance and position so that company financial statements are understandable and comparable across international In 2002, the Sarbanes-Oxley Act included provisions that prohibited improper presentation of such non-GAAP measures. Non-GAAP measures cannot present segment-level profit Generally Accepted Accounting Principles "GAAP" moved away from both. Non-GAAP earnings can sometimes provide a more accurate measure of a companys financial performance from direct business operations. Investors should be wary of possible misleading reporting by companies who exclude items that have a negative effect on GAAP earnings. When non-GAAP earnings push the focus further away from actual economic profits, they In this proxy statement, HP discloses the following non-GAAP financial measures: Non-GAAP operating profit: Non-GAAP operating profit is a non-GAAP measure that is defined as GAAP operating profit, exclusive of costs related to restructuring and other charges, acquisition-related charges, and amortization of intangible assets.Management uses non As mentioned in the introduction above, non-GAAP measures have both their supporters and critics. performance measures (APMs)1. A non-GAAP financial measure adjusts the most directly comparable GAAP measure reported on the audited financial statements by excluding items the company Non-GAAP financial measures such as consolidated adjusted operating income, adjusted earnings per share (EPS), baseline adjusted earnings per share (Baseline Adjusted EPS),

Alternative metrics, once used A non-GAAP financial measure adjusts the most directly comparable GAAP measure reported on the audited financial statements by excluding items the company believes are not good indicators of its performance. One such measure is non-GAAP earnings. Certain prior period amounts in the Non-GAAP Financial Measures Reconciliation below for AFFO have been reclassified to conform to the current period presentation. When used appropriately, these non-GAAP financial measures can help companies provide a more meaningful picture of the company's performance and value. EBITDA provides a way to evaluate a company's operating Flowers Foods produces and markets a wide variety of fresh and frozen bakery foods-from breads, buns and rolls to snack cakes and pastries. The Recurring EBITDA (earnings before interest, tax, depreciation and amortization) is an indicator to measure the performance of the Group excluding the impacts of non-recurring items. Accounting value. 718. When it comes to non-GAAP earnings, SEC

Third, investors can gain a 69.3 (4.9) 64.4 5 1 Third quarter 2020 GAAP financial results are adjusted to exclude the effects of an other-than-temporary impairment to the carrying value of an equity method investment. Non-GAAP Financial Measures and Other Supplemental Data. Despite the concerns, non-GAAP measures are more popular than ever. These non-GAAP measures exclude certain amounts that are included in the most directly comparable U.S. GAAP measures, do not have standard meanings and may vary from the non-GAAP financial measures used by other companies. We note your presentation of the non-GAAP measure total gross margin. Control testing related to the preparation and disclosure of non-GAAP measures. Supporters believe that non-GAAP measures provide: more predictive Identify Key Discussion Topics. In their public interest role, public company auditors play a role in the flow of comparable and reliable information for decision-making, CAQ Executive Director Julie Bell Lindsay said in a news release.

The procedure of internal audit Internal Audit Internal audit refers to the inspection conducted to assess and enhance the company's risk management efficacy, evaluate the different internal controls, and ensure that the company adheres to all the a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. not to avoid presenting adverse information to the market; present nonGAAP fi nancial measures with GAAP Concerns around misleading non-GAAP financial measures are nothing new, but the COVID-19 pandemic has sparked a renewed interest. A: In one sense, compensation committees have the same set of concerns with non-GAAP measures that they do with GAAP measures.

performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures and product introduction or expansion, the benefits of acquisitions and divestitures or other matters, as well as financings and debt reduction, are subject to known and unknown risks, uncertainties and contingencies. Companies may supplement GAAP earnings with non-GAAP measures. A non-GAAP measure that precedes the most directly comparable GAAP measure (including in an earnings release headline or caption) Describing a non-GAAP measure as, for example, record performance or exceptional without at Employee compensation and benefits arising from the COVID-19 pandemic Answer: Yes. If the company uses non-GAAP figures, they will generally include a table or some other easily comparable reconciliation review either in the quarterly or annual report or in a supplemental press release. Under Old UK GAAP it measures the loan on a historic cost basis. The possibility of using non-GAAP measures to obscure financial performance represents a very different motivation for their use. Acquisition costs for software includes those development costs capitalized in accordance with generally accepted accounting principles (GAAP).