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 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 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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C
  • Core SG&A

    Selling, general, and administrative costs less depreciation and amortization.

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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.

  • 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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