E-Z-GO 2013 Annual Report Download - page 12

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1
We use Manufacturing cash fl ow before pension contributions as our measure of free cash fl ow. This measure is not a fi nancial measure under
generally accepted accounting principles (GAAP) and should be used in conjunction with GAAP cash measures provided in our Consolidated
Statements of Cash Flows. Free cash fl ow 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 defi nition of Manufacturing cash fl ow before pension contributions adjusts net cash from operating activities of continuing operations for the
Manufacturing group for dividends received from TFC, capital contributions provided under the Support Agreement and debt agreements, 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 defi nitive accounting standard on how the measure
should be calculated. A reconciliation of net cash from operating activities of continuing operations for the Manufacturing group as presented in
our Consolidated Statements of Cash Flows to Manufacturing cash fl ow before pension contributions is provided below:
Footnote to Selected Year-Over-Year Financial Data
(In millions) 2013 2012
Net cash from operating activities of continuing operations for the Manufacturing group - GAAP $ 658 $ 958
Less: Capital expenditures (444) (480)
Dividends received from TFC (175) (345)
Plus: Capital contributions paid to TFC 1240
Proceeds on sale of property, plant and equipment 22 15
Total pension contributions 194 405
Manufacturing cash fl ow before pension contributions – Non-GAAP $ 256 $ 793
Textron Footnotes | 10