US Cellular 2015 Annual Report Download - page 65

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HMS 2015 2014 2013
(Dollars in thousands)
Income (loss) before income taxes (GAAP)1................ $ (17,828) $ (110,699) $ (21,664)
Add back:
Interest expense ................................... 2,329 1,602 1,626
Depreciation, amortization and accretion .................... 26,948 26,912 24,262
EBITDA ......................................... 11,449 (82,185) 4,224
Add back:
Loss on impairment of assets .......................... –84,000 –
(Gain) loss on asset disposals, net ....................... 89 181 125
Adjusted EBITDA .................................. 11,538 1,996 4,349
Deduct:
Interest and dividend income ........................... 35 26 63
Other, net ....................................... (98) 12 29
Operating cash flow ................................ 11,601 1,958 4,257
Deduct:
Depreciation, amortization and accretion .................... 26,948 26,912 24,262
Loss on impairment of assets .......................... –84,000 –
(Gain) loss on asset disposals, net ....................... 89 181 125
Operating income (loss) (GAAP) ........................ $ (15,436) $ (109,135) $ (20,130)
1Income tax expense (benefit) is not provided at the individual segment level for Wireline, Cable and HMS. TDS calculates income tax expense for TDS
Telecom in total.
Free Cash Flow and Adjusted Free Cash Flow
The following table presents Free cash flow and Adjusted free cash flow. Free cash flow is defined as Cash flows from
operating activities less Cash used for additions to property, plant and equipment. Adjusted free cash flow is defined as
Cash flows from operating activities (which includes cash outflows related to the Sprint decommissioning), as adjusted
for cash proceeds from the Sprint Cost Reimbursement (which are included in Cash flows from investing activities in the
Consolidated Statement of Cash Flows), less Cash used for additions to property, plant and equipment. Free cash flow
and Adjusted free cash flow are non-GAAP financial measures which TDS believes may be useful to investors and other
users of its financial information in evaluating the amount of cash generated by business operations (including cash
proceeds from the Sprint Cost Reimbursement), after Cash used for additions to property, plant and equipment.
2015 2014 2013
(Dollars in thousands)
Cash flows from operating activities ........................ $ 789,694 $ 394,812 $ 494,610
Less: Cash used for additions to property, plant and equipment ...... 800,628 799,496 883,797
Free cash flow .................................... $ (10,934) $ (404,684) $ (389,187)
Add: Sprint Cost Reimbursement1......................... 29,974 71,097 10,560
Adjusted free cash flow .............................. $ 19,040 $ (333,587) $ (378,627)
1See Note 6 — Acquisitions, Divestitures and Exchanges in the Notes to Consolidated Financial Statements for additional information related to the
Sprint Cost Reimbursement.
57
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS