ADT 2014 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2014 ADT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES AND SELECTED DEFINITIONS—CONTINUED
The limitation associated with using SSFCF is that it adjusts for certain items that are ultimately within management’s and the Board of Directors’
discretion to direct and therefore may imply that there is less or more cash available than the most comparable GAAP measure. This limitation is
best addressed by using SSFCF in combination with other GAAP financial measures.
SSFCF as presented herein may not be comparable to similarly titled measures reported by other companies. This measure should be used in
conjunction with other GAAP financial measures. Investors are urged to read the Company’s financial statements as filed with the SEC, as well
as the accompanying reconciliations below that show the elements of the measure.
The Company has presented its EBITDA, EBITDA Margin, EBITDA (pre-SAC), SSFCF and other measures (such as recurring revenue) before
special items and, when appropriate, excluding the results of recent acquisitions. Special items include charges and gains related to
acquisitions, restructurings, impairments, and other income or charges that may mask the underlying operating results and/or business trends of
the Company. The Company utilizes these measures to assess overall operating performance, as well as to provide insight to management in
evaluating overall operating plan execution and underlying market conditions. These measures may be used as components in the Company’s
incentive compensation plans. These measures are useful for investors because they may permit more meaningful comparisons of the
Company’s underlying operating results and business trends between periods. The difference between the measures before and after special
items and/or the results of recent acquisitions is the impact of those items. The limitation of these measures is that they exclude the impact
(which may be material) of items that increase or decrease the Company’s reported operating income, operating margin, net income and EPS.
This limitation is best addressed by using the non-GAAP measures in combination with the most comparable GAAP measures in order to better
understand the amounts, character and impact of any increase or decrease on reported results.
50 The ADT Corporation 2015 Proxy Statement
PROXY STATEMENT