ADOBE INC. (Form: 8-K, Received: 09/15/2022 08:05:22)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported): September 15, 2022 (September 15, 2022)

ADOBE INC.

(Exact name of Registrant as specified in its charter)

Delaware

0-15175

77-0019522

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

345 Park Avenue

San Jose, California 95110-2704

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (408) 536-6000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value per share	ADBE	NASDAQ Global Select Market

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On September 15, 2022, Adobe Inc. (“Adobe”) issued a press release announcing financial results for its third quarter fiscal year 2022 ended September 2, 2022. A copy of this press release is furnished and attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this report and the exhibit attached hereto are being furnished and shall not be deemed filed for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly stated by specific reference in such filing.

The attached press release includes non-GAAP adjusted or constant currency revenue growth rates, non-GAAP operating income, non-GAAP net income, non-GAAP diluted net income per share (earnings per share) and non-GAAP tax rate.

These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.

We use these non-GAAP financial measures in making operating decisions because we believe the measures provide meaningful supplemental information regarding our operational performance and give us a better understanding of how we should invest in research and development and fund infrastructure and go-to-market strategies. We use these measures to help us make budgeting decisions, for example, as between product development expenses and research and development, sales and marketing and general and administrative expenses and to facilitate our internal comparisons to our historical operating results. In addition, we believe these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate our operating results and future prospects in the same manner as management and to compare operating results across accounting periods and to those of our peer companies.

We include adjusted or constant currency revenue growth rates to provide a framework for assessing how our underlying businesses have performed or are expected to perform on a year-over-year basis, excluding the effects of foreign currency rate fluctuations and the impact of our 52/53-week fiscal year, if applicable. Adjusted or constant currency revenue growth rates are calculated in constant currency by converting forecasted non-United States Dollar revenue using comparative period exchange rates and determining the change from prior period reported revenue, adjusted for any hedging effects.

In addition, we use non-GAAP financial measures which exclude:

A. Stock-based and deferred compensation expenses. Stock-based compensation expense consists of charges for employee restricted stock units, performance shares and employee stock purchases in accordance with current GAAP including stock-based compensation expense associated with any unvested options and restricted stock units assumed in connection with our acquisitions. We believe that it is useful to investors to understand the impact of the application of accounting standards pertaining to stock-based compensation to our operational performance, liquidity and our ability to invest in research and development and fund acquisitions and capital expenditures. Deferred compensation expense consists of charges associated with movements in our deferred compensation plan liability. Although stock-based compensation and deferred compensation expenses constitute ongoing and recurring expenses, such expenses are excluded from non-GAAP results because they are not expenses that typically require current cash settlement by us and because such expenses are not used by us to assess the core profitability of our business operations. We further believe these measures are useful to investors in that they allow for greater transparency to certain line items in our financial statements. In addition, excluding these items from various non-GAAP measures facilitates comparisons to our competitors’ operating results.

B. Amortization of intangibles. We recognize amortization expense of intangibles in connection with our acquisitions. Intangibles include (i) purchased technology, (ii) trademarks, (iii) customer contracts and relationships, and (iv) other intangible assets. In accordance with GAAP, we amortize the fair value of the intangibles based on the pattern in which we expect the economic benefits of the intangibles will be consumed as revenue is generated. Although the intangibles generate revenue for us, we exclude this item because the expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance, liquidity and our ability to invest in research and development, fund acquisitions and capital expenditures. In addition, excluding this item from various non-GAAP measures facilitates our internal comparisons to our historical operating results and comparisons to our competitors’ operating results.

C. Investment gains and losses. We recognize investment gains and losses principally from realized gains or losses from the sale and exchange of marketable equity investments, other-than-temporary declines in the value of marketable and non-marketable equity securities, unrealized holding gains and losses associated with our deferred compensation plan assets, gains and losses on the sale of equity securities held indirectly through investment partnerships and gains and losses associated with the recording of equity or cost method investments to fair value upon obtaining control through a business combination, as required by GAAP. We do not actively trade publicly held securities nor do we rely on these securities positions for funding our ongoing operations. We exclude investment gains and losses on these equity securities because these items are unrelated to our ongoing business and operating results.

D. Income tax adjustments. Our income tax expense is based on our GAAP taxable income and actual tax rates in effect, which can differ significantly from the non-GAAP tax rate applied to our non-GAAP financial results. In arriving at our non-GAAP tax rate, certain non-recurring and period-specific income tax adjustments, such as a one-time tax charge in connection with an acquisition, resolution of certain income tax audits and any significant financial impacts and certain indirect effects resulting from tax legislation or changes to our trading structure are made to help us assess the core profitability of our business operations. This non-GAAP tax rate could be subject to change for several reasons, including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate. In addition, excluding this item from various non-GAAP measures facilitates our internal comparisons to our historical operating results.

E. Income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Excluding the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to our ongoing operations.

We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our financial results as determined in accordance with GAAP and that these measures should only be used to evaluate our financial results in conjunction with the corresponding GAAP measures and that is why we qualify the use of non-GAAP financial information in a statement when non-GAAP information is presented.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits


Exhibit Number						Exhibit Description

99.1						Press release issued on September 15, 2022 entitled “Adobe Reports Record Revenue in Q3 Fiscal 2022”

104						Cover Page Interactive Data File (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			ADOBE INC.

			By:			/s/ DANIEL DURN
						Daniel Durn
						Executive Vice President and Chief Financial Officer

Date: September 15, 2022

Exhibit 99.1

Investor Relations Contact

Jonathan Vaas

Adobe

ir@adobe.com

Public Relations Contact

Ashley Levine

Adobe

aslevine@adobe.com

FOR IMMEDIATE RELEASE

Adobe Reports Record Revenue in Q3 Fiscal 2022

Digital Media ARR Exceeds $13 Billion Exiting the Quarter; Adobe Announces Acquisition of Figma

SAN JOSE, Calif. – Sept. 15, 2022 – Adobe (Nasdaq:ADBE) today reported financial results for its third quarter fiscal year 2022 ended Sept. 2, 2022.

“Fueled by our groundbreaking technology, track record of creating and leading categories and consistent execution, Adobe delivered another record quarter,” said Shantanu Narayen, chairman and CEO, Adobe. “With the announcement of our intent to acquire Figma, we believe we have a unique opportunity to usher in a new era of collaborative creativity.”

“Adobe achieved record revenue and strong profitability in the quarter, demonstrating that our products are mission-critical to individuals, small businesses and the world’s largest enterprises,” said Dan Durn, executive vice president and CFO, Adobe. “Our operational rigor combined with our strong engine of innovation are driving growth across our platforms and will fuel future growth as the digital economy continues to expand.”

Third Quarter Fiscal Year 2022 Financial Highlights

•Adobe achieved record revenue of $4.43 billion in its third quarter of fiscal year 2022, which represents 13 percent year-over-year growth or 15 percent in constant currency. Diluted earnings per share was $2.42 on a GAAP basis and $3.40 on a non-GAAP basis.

•GAAP operating income in the third quarter was $1.48 billion, and non-GAAP operating income was $1.96 billion. GAAP net income was $1.14 billion, and non-GAAP net income was $1.60 billion.

•Cash flows from operations were $1.70 billion.

•Remaining Performance Obligations (“RPO”) exiting the quarter were $14.11 billion.

•Adobe repurchased approximately 5.1 million shares during the quarter.

Third Quarter Fiscal Year 2022 Business Segment Highlights

•Digital Media segment revenue was $3.23 billion, which represents 13 percent year-over-year growth or 16 percent in constant currency. Creative revenue grew to $2.63 billion, representing 11 percent year-over-year growth or 14 percent in constant currency. Document Cloud revenue was $607 million, representing 23 percent year-over-year growth or 25 percent in constant currency.

•Net New Digital Media Annualized Recurring Revenue (“ARR”) was $449 million, exiting the quarter with Digital Media ARR of $13.40 billion. Creative ARR grew to $11.15 billion and Document Cloud ARR grew to $2.25 billion.

•Digital Experience segment revenue was $1.12 billion, representing 14 percent year-over-year growth or 15 percent in constant currency. Digital Experience subscription revenue was $981 million, representing 14 percent year-over-year growth or 15 percent in constant currency.

Financial Targets

Adobe is providing fourth quarter targets that factor in the following:

•The overall macroeconomic environment;

•FX headwinds, as the U.S. Dollar has continued to strengthen against foreign currencies; and

•Typical year-end seasonal strength in demand for our offerings.

The following table summarizes Adobe’s fourth quarter fiscal year 2022 targets:


Total revenue	~$4.52 billion
Digital Media annualized recurring revenue (ARR)	~$550 million of net new ARR
Digital Media segment revenue (Y/Y growth)	~10%	~14% (constant currency)
Digital Experience segment revenue (Y/Y growth)	~13%	~15% (constant currency)
Digital Experience subscription revenue (Y/Y growth)	~13%	~15% (constant currency)
Tax rate	GAAP: ~23.0%	Non-GAAP: ~17.5%
Earnings per share1	GAAP: ~$2.44	Non-GAAP: ~$3.50

1 Targets assume share count of ~467 million for the fourth quarter fiscal year 2022.

Adobe to Host Conference Call

Adobe will host its third quarter fiscal year 2022 earnings conference call today at 7:00 a.m. Pacific Time. Earnings documents, including Adobe management’s prepared conference call remarks with slides and an investor datasheet are posted to Adobe’s investor relations website in advance of the conference call for reference. To access the earnings conference call, log on to the investor relations website www.adobe.com/ADBE or call 1 (800) 289-0720; Conference ID 2608470.

Forward-Looking Statements, Non-GAAP and Other Disclosures

This press release contains forward-looking statements, including those related to business momentum, the effects of the COVID-19 pandemic on our business and results of operations, our market opportunity, market trends, current macroeconomic conditions, fluctuations in foreign currency exchange rates, strategic investments, customer success, revenue, operating margin, seasonality, annualized recurring revenue, tax rate on a GAAP and non-GAAP basis, earnings per share on a GAAP and non-GAAP basis, and share count, all of which involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure to compete effectively, failure to develop, acquire, market and offer products and services that meet customer requirements; introduction of new technology, information security and privacy; potential interruptions or delays in hosted services provided by us or third parties; geopolitical and macroeconomic conditions; the Russia-Ukraine war; the economic impact of the COVID-19 pandemic; risks associated with cyber-attacks; complex sales cycles; risks related to the timing of revenue recognition from our subscription offerings; fluctuations in subscription renewal rates; failure to realize the anticipated benefits of past or future acquisitions; failure to effectively manage critical strategic third-party business relationships; changes in accounting principles and tax regulations; uncertainty in the financial markets and economic conditions in the countries where we operate; and other various risks associated with being a multinational corporation. For a discussion of these and other risks and uncertainties, please refer to Adobe’s Annual Report on Form 10-K for our fiscal year 2021 ended Dec. 3, 2021, and Adobe's Quarterly Reports on Form 10-Q issued in fiscal year 2022.

The financial information set forth in this press release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our fiscal quarter ended Sept. 2, 2022, which Adobe expects to file in Sept. 2022. Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.

A reconciliation between GAAP and non-GAAP earnings results and financial targets is provided at the end of this press release and on Adobe’s investor relations website.

About Adobe

Adobe is changing the world through digital experiences. For more information, visit www.adobe.com.

###

©2022 Adobe. All rights reserved. Adobe, Creative Cloud, Document Cloud and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners.

Condensed Consolidated Statements of Income

(In millions, except per share data; unaudited)


	Three Months Ended				Nine Months Ended
	September 2, 2022		September 3, 2021		September 2, 2022		September 3, 2021
Revenue:
Subscription	$	4,128	$	3,657	$	12,156	$	10,761
Product	126		119		417		427
Services and other	179		159		508		487
Total revenue	4,433		3,935		13,081		11,675

Cost of revenue:
Subscription	413		344		1,216		996
Product	8		10		27		29
Services and other	125		113		354		333
Total cost of revenue	546		467		1,597		1,358

Gross profit	3,887		3,468		11,484		10,317

Operating expenses:
Research and development	775		651		2,214		1,883
Sales and marketing	1,266		1,068		3,671		3,190
General and administrative	319		265		879		811

Amortization of intangibles	43		43		127		132
Total operating expenses	2,403		2,027		6,891		6,016

Operating income	1,484		1,441		4,593		4,301

Non-operating income (expense):
Interest expense	(28)		(27)		(84)		(85)
Investment gains (losses), net	(6)		7		(23)		20
Other income (expense), net	6		(3)		5		1
Total non-operating income (expense), net	(28)		(23)		(102)		(64)
Income before income taxes	1,456		1,418		4,491		4,237
Provision for income taxes	320		206		911		648
Net income	$	1,136	$	1,212	$	3,580	$	3,589
Basic net income per share	$	2.42	$	2.54	$	7.60	$	7.51
Shares used to compute basic net income per share	469		477		471		478
Diluted net income per share	$	2.42	$	2.52	$	7.57	$	7.45
Shares used to compute diluted net income per share	469		481		473		481

Condensed Consolidated Balance Sheets

(In millions; unaudited)


	September 2, 2022		December 3, 2021
ASSETS

Current assets:
Cash and cash equivalents	$	3,870	$	3,844
Short-term investments	1,894		1,954
Trade receivables, net of allowances for doubtful accounts of $24 and $16, respectively	1,723		1,878
Prepaid expenses and other current assets	1,002		993
Total current assets	8,489		8,669

Property and equipment, net	1,858		1,673
Operating lease right-of-use assets, net	414		443
Goodwill	12,756		12,668
Other intangibles, net	1,548		1,820

Deferred income taxes	799		1,085
Other assets	880		883
Total assets	$	26,744	$	27,241

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Trade payables	$	316	$	312
Accrued expenses	1,629		1,736
Debt	500		—
Deferred revenue	4,829		4,733
Income taxes payable	76		54
Operating lease liabilities	88		97
Total current liabilities	7,438		6,932

Long-term liabilities:
Debt	3,627		4,123
Deferred revenue	114		145
Income taxes payable	510		534
Deferred income taxes	3		5
Operating lease liabilities	426		453
Other liabilities	253		252
Total liabilities	12,371		12,444

Stockholders’ equity:
Preferred stock	—		—
Common stock	—		—
Additional paid-in-capital	9,548		8,428
Retained earnings	27,158		23,905
Accumulated other comprehensive income (loss)	(224)		(137)
Treasury stock, at cost	(22,109)		(17,399)
Total stockholders’ equity	14,373		14,797
Total liabilities and stockholders’ equity	$	26,744	$	27,241

Condensed Consolidated Statements of Cash Flows

(In millions; unaudited)


	Three Months Ended
	September 2, 2022		September 3, 2021
Cash flows from operating activities:
Net income	$	1,136	$	1,212
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	216		193
Stock-based compensation	378		280

Unrealized investment (gains) losses, net	6		(4)
Other non-cash adjustments	112		(72)
Changes in deferred revenue	67		102
Changes in other operating assets and liabilities	(211)		(296)
Net cash provided by operating activities	1,704		1,415

Cash flows from investing activities:
Purchases, sales and maturities of short-term investments, net	31		(28)
Purchases of property and equipment	(125)		(95)

Purchases and sales of long-term investments, intangibles and other assets, net	(9)		(10)

Net cash used for investing activities	(103)		(133)

Cash flows from financing activities:
Repurchases of common stock	(1,200)		(1,000)
Proceeds from treasury stock re-issuances, net of taxes paid related to net share settlement of equity awards	103		81


Other financing activities, net	37		20


Net cash used for financing activities	(1,060)		(899)
Effect of exchange rate changes on cash and cash equivalents	(36)		(10)
Net change in cash and cash equivalents	505		373
Cash and cash equivalents at beginning of period	3,365		4,250
Cash and cash equivalents at end of period	$	3,870	$	4,623

Non-GAAP Results

The following table shows Adobe’s third quarter fiscal year 2022 GAAP revenue growth rates reconciled to adjusted revenue growth rates included in this release.


Third Quarter Fiscal 2022	Total revenue		Digital Media segment revenue		Creative Cloud revenue		Document Cloud revenue		Digital Experience segment revenue		Digital Experience subscription revenue
	(Y/Y growth)		(Y/Y growth)		(Y/Y growth)		(Y/Y growth)		(Y/Y growth)		(Y/Y growth)
GAAP revenue growth rates	13	%	13	%	11	%	23	%	14	%	14	%

Constant currency impact	2		3		3		2		1		1
Adjusted revenue growth rates	15	%	16	%	14	%	25	%	15	%	15	%

The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.


(In millions, except per share data)	Three Months Ended
	September 2, 2022		September 3, 2021		June 3, 2022
Operating income:

GAAP operating income	$	1,484	$	1,441	$	1,529
Stock-based and deferred compensation expense	371		287		345

Amortization of intangibles	100		83		100

Non-GAAP operating income	$	1,955	$	1,811	$	1,974

Net income:

GAAP net income	$	1,136	$	1,212	$	1,178
Stock-based and deferred compensation expense	371		287		345

Amortization of intangibles	100		83		100
Investment (gains) losses, net	6		(7)		8

Income tax adjustments	(18)		(79)		(46)
Non-GAAP net income	$	1,595	$	1,496	$	1,585

Diluted net income per share:

GAAP diluted net income per share	$	2.42	$	2.52	$	2.49
Stock-based and deferred compensation expense	0.79		0.60		0.73

Amortization of intangibles	0.21		0.17		0.21
Investment (gains) losses, net	0.01		(0.01)		0.02

Income tax adjustments	(0.03)		(0.17)		(0.10)
Non-GAAP diluted net income per share	$	3.40	$	3.11	$	3.35

Shares used to compute diluted net income per share	469		481		473

Non-GAAP Results (continued)

The following table shows Adobe’s third quarter fiscal year 2022 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.


	Third Quarter Fiscal 2022
Effective income tax rate:

GAAP effective income tax rate		22.0	%
Income tax adjustments		(3.0)
Stock-based and deferred compensation expense		(1.2)
Amortization of intangibles		(0.3)
Non-GAAP effective income tax rate		17.5	%

Reconciliation of GAAP to Non-GAAP Financial Targets

The following tables show Adobe's fourth quarter fiscal year 2022 financial targets reconciled to non-GAAP financial targets included in this release.


Fourth Quarter Fiscal 2022	Digital Media segment revenue		Digital Experience segment revenue		Digital Experience subscription revenue
	(Y/Y growth)		(Y/Y growth)		(Y/Y growth)
GAAP target revenue growth rates	10	%	13	%	13	%

Constant currency impact	4		2		2
Constant currency target revenue growth rates	14	%	15	%	15	%


(Shares in millions)	Fourth Quarter Fiscal 2022
Diluted net income per share:

GAAP diluted net income per share	$	2.44
Stock-based and deferred compensation expense		0.86
Amortization of intangibles		0.21
Income tax adjustments		(0.01)
Non-GAAP diluted net income per share	$	3.50

Shares used to compute diluted net income per share	467


	Fourth Quarter Fiscal 2022
Effective income tax rate:

GAAP effective income tax rate		23.0	%
Stock-based and deferred compensation expense		(1.4)
Amortization of intangibles		(0.1)
Income tax adjustments		(4.0)
Non-GAAP effective income tax rate		17.5	%

Use of Non-GAAP Financial Information

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate our operating results and future prospects in the same manner as management.

Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP information as well as non-GAAP measures, which may exclude items such as stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, the related tax impact of all of these items, income tax adjustments, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.