Regulation G.SS.2021

SUPPORTING STATEMENT
FOR THE PAPERWORK REDUCTION ACT INFORMATION COLLECTION
SUBMISSION FOR REGULATION G

A.

JUSTIFICATION

1.

Circumstances Making the Collection of Information Necessary

Regulation G, under the Securities Exchange Act of 1934 (the “Exchange Act”)
requires registrants when publicly disclosing material information that includes nonGAAP financial measures to provide a reconciliation to comparable GAAP figures.
Regulation G implemented the requirements of Section 401 of the Sarbanes-Oxley Act.
Specifically, Regulation G is intended to provide investors with balanced financial
disclosure when non-GAAP financial measures are presented.
2.

Purpose and Use of the Information Collection

Every issuer that is subject to Section 13(a) or 15(d) under the Exchange Act must
file periodic and current reports with the Commission containing information about its
business and financial condition. Regulation G is intended to implement the
requirements of the Sarbanes-Oxley Act of 2002. Specifically, Section 401 of the
Sarbanes Oxley Act of 2002 required the Commission to issue rules providing that pro
forma financial information included in any periodic or other report filed with the
Commission pursuant to the securities laws, or in any public disclosure or press or other
release, shall be presented in a manner that: (1) does not contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the pro forma
financial information, in light of the circumstances under which it is presented not
misleading; and (2) reconciles it with the financial condition and results of operations of
the issuer under generally accepted accounting principles.
3.

Consideration Given to Information Technology

Regulation G information is not required to be filed with the Commission but may
be disclosed in electronic format, such as on an Internet website.
4.

Duplication of Information

Regulation G information does not duplicate, overlap, or conflict with other
federal rules.
5.

Reducing the Burden on Small Entities
Most small businesses do not present non-GAAP financial information.

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6.

Consequences of Not Conducting Collection

Rules providing for less frequent disclosure than Regulation G requires would not
be consistent with the intent of the Sarbanes-Oxley Act.
7.

Special Circumstances
There are no special circumstances.

8.

Consultations with Persons Outside the Agency

No comments were received on this request during the 60-day comment period
prior to OMB’s review of this submission.
9.

Payment or Gift to Respondents
No payment or gift has been provided to any respondents.

10.

Confidentiality
Regulation G is a public document.

11.

Sensitive Questions

No information of a sensitive nature, including social security numbers, will be
required under this collection of information. The information collection does not collect
personally identifiable information (PII). The agency has determined that a system of
records notice (SORN) and privacy impact assessment (PIA) are not required in
connection with the collection of information.
12.

Estimate of Respondent Reporting Burden
Estimated Reporting Burden
Information
Collection
Title
Regulation G

OMB Control
Number

Number of
Responses

Burden
Hours

3235-0576

84,000

42,000

We estimate that approximately 14,000 public companies are required to comply
with Regulation G approximately six times a year for a total of 84,000 filings annually.
We estimate that it takes approximately 0.5 burden hours per response for a total of
42,000 burden hours annually. We derived our burden hour estimates by estimating the
average number of hours it would take an issuer to compile the necessary information and
data, prepare and review disclosure, file documents and retain records. In connection

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with rule amendments to the form, we occasionally receive PRA estimates from public
commenters about incremental burdens that are used in our burden estimates. We believe
that the actual burdens will likely vary among individual issuers based on the nature of
their operations. For administrative convenience, the presentation of the total related to
the paperwork burden hours has been rounded to the nearest whole number. The burden
estimate for the hours is made solely for the purpose of the Paperwork Reduction Act.
13.

Estimate of Total Annualized Cost Burden
Estimated Cost Burden
Information
Collection
Title
Regulation G

OMB Control
Number

Number of
Responses

Cost
Burden

3235-0576

84,000

$1,092,000

We estimate that an outside firm would charge approximately $26 an hour for the
services of a junior accountant ($26.00 hour per response x 0.5 burden hour per response
x 84,000 responses) for a total cost burden of $1,092,000. Our estimates reflect average
burdens, and therefore, some companies may experience costs in excess of our estimates
and some companies may experience costs that are lower than our estimates. For
administrative convenience, the presentation of the total related to the cost burden has
been rounded to the nearest dollar. The cost estimate is made solely for the purpose of
the Paperwork Reduction Act.
14.

Costs to Federal Government

The annual cost of reviewing and processing disclosure documents, including
registration statements, post-effective amendments, proxy statements, annual reports and
other filings of operating companies amounted to approximately $103,479,690 in fiscal
year 2019, based on the Commission’s computation of the value of staff time devoted to
this activity and related overhead.
15.

Reason for Change in Burden
There is no change in burden.

16.

Information Collection Planned for Statistical Purposes
The information collection is not planned for statistical purposes.

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17.

Approval to Omit OMB Expiration Date
The Commission is not seeking approval to omit the expiration date.

18.

Exceptions to Certification for Paperwork Reduction Act Submissions

There are no exceptions to certification for Paperwork Reduction Act
submissions.

B.

STATISTICAL METHODS
The information collection does not employ statistical methods.