Popeye's 2015 Annual Report Download - page 46

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The following table reconciles on a historical basis for fiscal years 2015 and 2014, the Company’s free cash flow on a
consolidated basis to the line on its consolidated statement of operations entitled net income, which the Company believes is
the most directly comparable GAAP measure on its consolidated statement of operations.
(Dollars in millions) 2015 2014
Net income $ 44.1 $ 38.0
Depreciation and amortization 9.7 8.7
Stock-based compensation expense 6.7 5.3
Maintenance capital expenditures (1.9)(4.0)
Free cash flow $ 58.6 $ 48.0
Consolidated Total Leverage Ratio: Calculation and Definition
The Company calculates Consolidated Total Leverage Ratio, in accordance with its revolving credit facility, as the ratio of
Consolidated Total Indebtedness divided by Consolidated EBITDA. Consolidated Total Indebtedness is generally defined as
total indebtedness reflected on our balance sheet plus outstanding letters of credit. Consolidated EBITDA is defined as earnings
before interest expense, taxes, depreciation and amortization, other expenses (income), net, and stock-based compensation
expense for the four immediately preceding fiscal quarters.
Set forth below is the calculation of Consolidated Total Leverage Ratio as of December 27, 2015 and December 28, 2014
and the reconciliations of Consolidated Total Indebtedness and Consolidated EBITDA to their most comparable GAAP measures:
current debt maturities and long-term debt, for Consolidated Indebtedness, and net income, for Consolidated EBITDA.
52 weeks ended
(Dollars in millions) 12/27/2015 12/28/2014
Current debt maturities $ 0.3 $ 0.3
Long-term debt 112.3 109.6
Total indebtedness 112.6 109.9
Plus: outstanding letters of credit 0.1 0.1
Consolidated Total Indebtedness $ 112.7 $ 110.0
Net income $ 44.1 $ 38.0
Interest expense, net 3.7 3.0
Income tax expense 26.5 23.8
Depreciation and amortization 9.7 8.7
Other expenses (income), net — 1.2
Stock-based compensation expense 6.7 5.3
Consolidated EBITDA $ 90.7 $ 80.0
Consolidated Total Leverage Ratio 1.2 1.4
30