When was the definition of Operating EBITDA updated for Better Homes And Gardens Real Estate?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Operating EBITDA is defined as net income (loss) adjusted for depreciation and amortization, interest expense, net (excluding relocation services interest for securitization assets and securitization obligations), income taxes, and certain noncore items. Non-core items include non-cash stock-based compensation, restructuring charges, impairments, former parent legacy items, legal contingencies unrelated to normal operations which currently includes industry-wide antitrust lawsuits and class action lawsuits, gains or losses on the early extinguishment of debt, and gains or losses on discontinued operations or the sale of businesses, investments, or other assets. Effective December 31, 2024, the definition of Operating EBITDA was updated to include adjustments for non-cash stock-based compensation and legal contingencies unrelated to normal operations which currently includes industry-wide antitrust lawsuits and class action lawsuits to conform with similar adjustments and measures disclosed by industry competitors. These updates primarily impact total company Operating
EBITDA. For consistency and to align with how the CODM evaluates performance, prior periods have been recast to align with the updated definition. The changes have an immaterial impact on segment profitability and do not materially alter trends or comparability across reporting periods.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the definition of Operating EBITDA for Better Homes and Gardens Real Estate was updated effective December 31, 2024. The update includes adjustments for non-cash stock-based compensation and legal contingencies unrelated to normal operations, including industry-wide antitrust lawsuits and class action lawsuits. This change aligns Better Homes and Gardens Real Estate's reporting with industry competitors.
The update to the Operating EBITDA definition primarily impacts the total company's Operating EBITDA. To maintain consistency and align with how the Chief Operating Decision Maker (CODM) evaluates performance, prior periods have been adjusted to reflect the updated definition.
The FDD indicates that these changes have an immaterial impact on segment profitability and do not materially alter trends or comparability across reporting periods. This suggests that while the definition has been updated for overall reporting, the core financial performance metrics of individual segments within Better Homes and Gardens Real Estate remain largely unaffected.