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Table of Contents
OperatingActivities
Cash flows from operating activities are as follows:
Years Ended December 31,
(in millions) 2015
2014
Dollar Change
Net income $ 403.1
$ 244.9
$ 158.2
Adjustments for the impact of non-cash items (1) 150.3
231.9
(81.6)
Net income adjusted for the impact of non-cash items (2) 553.4
476.8
76.6
Changes in assets and liabilities:
Accounts receivable (3) (342.6)
(117.6)
(225.0)
Merchandise inventory (4) (31.5)
44.2
(75.7)
Accounts payable-trade (5) 100.5
43.7
56.8
Other (2.3)
(12.1)
9.8
Net cash provided by operating activities $ 277.5
$ 435.0
$ (157.5)
(1) Includes items such as Deferred income taxes, Depreciation and amortization, Equity-based compensation expense, Gain on remeasurement of equity method
investment, Loss (income) from equity method investment and net loss on extinguishments of long-term debt.
(2) The increase in cash flows reflected stronger operating results driven by organic sales growth and the impact of consolidating five months of Kelway financial
results. A decrease in the net loss on extinguishments of long-term debt, as a result of fewer debt refinancing activities in 2015 as compared to 2014, and lower
interest expense, partially offset by higher income tax expense, also contributed to the strong operating results.
(3) The decrease in cash flows was driven by a higher accounts receivable balance at December 31, 2015 driven by higher sales in our Public segment where customers
generally take longer to pay than customers in our Corporate segment, slower government payments in certain states due to budget issues and the lower accounts
receivable balance at December 31, 2014 driven by early payments from certain customers.
(4) The decrease in cash flows was primarily due to the lower inventory balance as of December 31, 2014 as a result of the timing of inventory receipts and earlier than
expected inventory shipments at the end of 2014 due to accelerated customer roll-outs and an increase in inventory on-hand as of December 31, 2015 to support the
growth in the business.
(5) The increase in cash flows was primarily due to the timing of inventory purchases, longer payment terms with certain vendors and growth in the business.
Years Ended December 31,
(in millions) 2014
2013
Dollar Change
Net income $ 244.9
$ 132.8
$ 112.1
Adjustments for the impact of non-cash items (1) 231.9
280.6
(48.7)
Net income adjusted for the impact of non-cash items (2) 476.8
413.4
63.4
Changes in assets and liabilities:
Accounts receivable (117.6)
(170.8)
53.2
Merchandise inventory (3) 44.2
(67.5)
111.7
Accounts payable-trade (4) 43.7
146.1
(102.4)
Other (12.1)
45.1
(57.2)
Net cash provided by operating activities $ 435.0
$ 366.3
$ 68.7
(1) Includes items such as depreciation and amortization, equity-based compensation expense and net loss on extinguishments of long-term debt.
(2) The increase in cash flows reflected stronger operating results in 2014 compared to 2013.
(3) The increase in cash flows was primarily due to the timing of inventory receipts and earlier than expected inventory shipments at the end of 2014 due to accelerated
customer rollouts.
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