An SEC Comment Challenge: Find the Non-GAAP Measure Issue – Post Two
By George Wilson
In this series of posts we are focusing on non-GAAP measure problems and related SEC comments in earnings releases. As the first post in this series did, this post gives you an opportunity to see if you can spot the issue, and then provides the background and SEC guidance about the issue.
As a brief reminder, the SEC’s guidance about the use of non-GAAP measures is primarily in three places:
Regulation G for non-GAAP measures used anywhere,
S-K Item 10(e), for non-GAAP measures in filed documents, and
The related Compliance and Disclosure Interpretations
Just like the first post in this series, you can read the excerpt of the release behind the comment and try to spot the issue. If you prefer, you can read straight through to the comment and explanation that follow.
This excerpt is from an 8-K filed by The Interpublic Group of Companies on April 22, 2020. Can you spot the non-GAAP issue?