1. Planet Fitness, SEC comment letters and non-GAAP measures continued

A) What are thetwo non-GAAP measures that Planet Fitness reports in their 10-Q document for the second quarter of 2022? Describe the reasons that Planet Fitness believes each of these are useful measures to help investors understand their business and performance beyond what the GAAP numbers are able to do. Do you agree with Planet Fitness assessment be specific about why and discuss each of the two non-GAAP measures separately.

B) In the SEC comment letter dated September 20, the SEC questioned two of the items in the reconciliation of Planet Fitness GAAP measures to its non-GAAP measures. Describe these two items and why you think the SEC is concerned about including both of them in the reconciliation. You should address the two reconciling items separately. The document called SEC Non-GAAP Interpretations (included on Blackboard) will be useful here as insight on the Questions 100.01 and 100.04 that the SEC refers to in the comment letter.

C) Describe the responses by Planet Fitness to 1) the SECs September letter and 2) the second SEC comment letter dated October 7, 2022. Did Planet Fitness provide further justification of the reconciling items or did they revise the non-GAAP measures to remove these adjustments. Do you agree with Planet Fitness ultimate response to the SECs concerns? Why or why not?