Key takeaways

• On May 17, 2016, the SEC issued 12 new Compliance and Disclosure Interpretations ("C&DIs") on the use and presentation of non-GAAP financial measures. 
• We surveyed the impact that the C&DIs had on earnings releases issued by a sample of Fortune 500 companies. Of the 100 companies included in our survey sample, a significant majority modified their non-GAAP disclosures as compared with their disclosures from the prior fiscal period’s earnings releases. 
• Since the publication of the C&DIs, the SEC has also issued comment letters focused on non-GAAP disclosures.
• Registrants should expect continued focus by the SEC on the use of non-GAAP financial measures and should further review their presentation and disclosure of non-GAAP measures against the C&DIs and specific issues raised in SEC comment letters.