Securities Law Blog: Equal Prominence When Giving the Percentage Growth of a Non-GAAP Financial Measure?

October 14, 2016
Firm Publication

For those following recent SEC developments, you know that the SEC has made a concerted effort this year to reign in the use of non-GAAP financial measures made by companies, or at least make sure their usage complies with Regulation G and Item 10(e) of Regulation S-K. Recently, I came across the below comment sent by the Staff of the Division of Corporation Finance to Activision Blizzard, Inc. regarding its first quarter earnings release. It is a friendly reminder to companies that disclose non-GAAP financial measures in earnings releases that the requirement to give equal or greater prominence to GAAP financial measures generally also applies to percentages and ratios calculated using a non-GAAP financial measure.

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