MarketWatch looked at SEC comment letters in the last six months to companies, supported by an initial scan by research firm Audit Analytics, and found that the SEC has warned companies including Live Nation LYV, +0.64% Monsanto Co.
The SEC established a task force in May 2016 to study the use and abuse of non-GAAP metrics after issuing updated guidelines for companies that month.
On May 2 the SEC sent a letter to 3M asking the company to provide a discussion in the future of the reasons it believes the presentation of each of its non-GAAP metrics, including “free cash flows”, provides useful information to investors.
Dunkin Brands defined free cash flow as net cash provided by operating and investing activities, excluding the cash flows related to advertising funds, gift card/certificate programs, and restricted cash.
McKenna had 30 years of experience at banks and professional-services firms, including at PwC and KPMG, before becoming a full-time writer.