E-Z-GO 2012 Annual Report Download - page 12

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10
1
We use Manufacturing cash flow before pension contributions as our measure of free cash flow. This measure is not a financial measure under
generally accepted accounting principles (GAAP) and should be used in conjunction with GAAP cash measures provided in our Consolidated
Statement of Cash Flows. Free cash flow is a measure generally used by investors, analysts and management to gauge a company’s ability
to generate cash from operations in excess of that necessary to be reinvested to sustain and grow the business and fund its obligations.
Our definition of Manufacturing cash flow before pension contributions adjusts net cash from operating activities of continuing operations for
dividends received from TFC, capital contributions provided under the Support Agreement, capital expenditures, proceeds from the sale of
property, plant and equipment and contributions to our pension plans. We believe that our calculation provides a relevant measure of liquidity
and is a useful basis for assessing our ability to fund operations and obligations. This measure may not be comparable with similarly titled
measures reported by other companies, as there is no definitive accounting standard on how the measure should be calculated. A reconciliation
of net cash from operating activities of continuing operations as presented in our Consolidated Statement of Cash Flows to Manufacturing cash
flow before pension contributions is provided below:
Footnote to Selected Year-Over-Year Financial Data
Business Summary 2
Management’s Discussion and Analysis 19
Segment Analysis 21
Financial Statements 40
Controls and Procedures 84
Corporate Information 92
FORM 10-K TABLE OF CONTENTS
(In millions) 2012 2011
Net cash from operating activities of continuing operations - GAAP $ 958 $761
Less: Capital expenditures (480) (423)
Dividends received from TFC (345) (179)
Plus: Capital contributions paid to TFC 240 182
Proceeds on sale of property, plant and equipment 15 17
Total pension contributions 405 642
Manufacturing cash flow before pension contributions – Non-GAAP $ 793 $1,000