Free cash flow is defined as net cash from operating activities
less net capital expenditures (capital expenditures less cash
proceeds from dispositions of property, plant and equipment) plus
income tax payments attributable to discontinued operations. Free
cash flow represents cash generated after paying for interest on
borrowings, income taxes, pension benefit contributions, capital
expenditures and changes in working capital, but before repaying
principal amount of outstanding debt, paying cash dividends on
common stock, repurchasing shares of our common stock, investing
cash to acquire businesses, and making other strategic
investments. Thus, a key assumption underlying free cash flow is
that the company will be able to refinance its existing debt.
Because of this assumption, free cash flow is not a measure that
should be relied upon to represent the residual cash flow
available for discretionary expenditures.
Reportable Segment Results
|Second Quarter Ended||First Half Ended|
|($ in millions)||
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