Glossary of Financial Measures

Following is a glossary of financial measures which management will often reference when evaluating historical financial performance or providing forward-looking statements. These financial terms are defined using financial statement captions as included within Ingevity's financial statements filed with the Securities and Exchange Commission (SEC) unless otherwise stated.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
  • Adjusted Earnings (Loss)

    Net income (loss) plus, restructuring and other (income) charges, net, acquisition and other related costs, debt refinancing fees, litigation verdict charges, pension and postretirement settlement and curtailment (income) charges and the income tax expense (benefit) on those items, less the provision (benefit) from certain discrete tax items.

  • Adjusted Earnings (Loss) Before Income Taxes

    Adjusted EBITDA less depreciation, amortization, interest expense, net, and debt refinancing fees.

  • Adjusted EBIT

    Net income (loss) plus interest expense, net, provision (benefit) for income taxes, restructuring and other (income) charges, net, acquisition and other related costs, litigation verdict charges, pension and postretirement settlement and curtailment (income) charges, net.

  • Adjusted EBITDA

    Net income (loss) plus interest expense, net, provision (benefit) for income taxes, depreciation, amortization, restructuring and other (income) charges, net, acquisition and other related costs, litigation verdict charges, pension and postretirement settlement and curtailment (income) charges, net.

  • Adjusted EBITDA Margin

    Adjusted EBITDA divided by net sales.

  • Adjusted Gross Margin

    Adjusted Gross Profit divided by Net sales.

  • Adjusted Gross Profit

    Gross profit plus depreciation and amortization, acquisition and other-related costs, pension and postretirement settlement and curtailment (income) charges.

  • Adjusted Other (Income) Expense, Net

    Other (income) expense, net plus litigation verdict charges and depreciation and amortization.

  • Adjusted Other (Income) Expense, Net as a Percent of Sales

    Adjusted other (income) expense, net divided by Net sales.

  • Adjusted SG&A

    Selling, general, and administrative costs plus research and technical expenses less depreciation and amortization.

  • Adjusted SG&A as a Percent of Sales

    Adjusted SG&A divided by Net sales.

  • Adjusted Tax Rate

    Calculated by dividing the Provision (benefit) for income taxes on Adjusted earnings (loss) divided by Adjusted earnings (loss) before income taxes.

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D
  • Diluted Adjusted Earnings (Loss) per Share

    Net income (loss) per diluted share plus restructuring and other (income) charges, net, acquisition and other related costs, debt refinancing fees, litigation verdict charges, pension and postretirement settlement and curtailment (income) charges and the income tax expense (benefit) on those items, less the tax provision (benefit) from certain discrete tax items, in each case on a per share basis.


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E
  • EBIT

    Net income (loss) plus interest expense, net and provision (benefit) for income taxes

  • EBITDA

    Net income (loss) plus interest expense, net, provision (benefit) for income taxes, depreciation and amortization.

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F
  • Free Cash Flow

    Net cash provided by operating activities less capital expenditures.

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N
  • Net Debt

    The sum of notes payable, short-term debt, current maturities of long-term debt and long-term debt less the sum of cash and cash equivalents, restricted cash associated with our New Market Tax Credit financing arrangement, and restricted investment excluding the allowance for credit losses on held-to-maturity debt securities.

  • Net Debt Ratio

    Net Debt divided by last twelve months Adjusted EBITDA, inclusive of acquisition-related pro forma adjustments.

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P
  • Provision for Income Taxes on Adjusted Earnings

    Provision for income taxes plus the tax expense (benefit) on restructuring and other (income) charges, net, acquisition and other related costs, debt refinancing fees, litigation verdict charges, pension and postretirement settlement and curtailment (income) charges, less the provision (benefit) from certain discrete tax items.

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R
  • ROA (Return on Assets)

    Last twelve months Adjusted EBIT divided by total assets less cash and cash equivalents.

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S
  • Segment EBITDA

    Segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses, research and technical expenses, other (income) expense, net, excluding depreciation and amortization). We have excluded the following items from segment EBITDA: interest expense, net, associated with corporate debt facilities, income taxes, depreciation, amortization, restructuring and other (income) charges, net, acquisition and other related costs, litigation verdict charges, pension and postretirement settlement and curtailment (income) charge, net.

  • Segment EBITDA Margin

    Segment EBITDA divided by Net Segment Sales

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