Windstream 2014 Annual Report Download - page 68
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Appendix A
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
In addition to financial results reported in accordance with generally accepted accounting principles (“GAAP”),
we utilize certain unaudited results of operations in this Proxy Statement which are not calculated in accordance with
GAAP. A “non-GAAP measure” is defined as a numerical measure of a company’s financial performance, financial
position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly
comparable measure calculated and presented in accordance with GAAP in a company’s financial statements.
Adjusted operating income before depreciation and amortization (“OIBDA”), which is a non-GAAP measure, adjusts
OIBDA by excluding merger and integration costs related to strategic transactions. We also utilize adjusted OIBDA
to provide investors with useful information about our operating performance before the impacts of certain non-cash
items and to enhance the comparability of operating results, and adjusted free cash flow which provides investors
with useful information about the ability of our core operations to generate cash flow. These non-GAAP measures
may not be comparable to similarly titled measures used by other companies and should not be considered in isolation
or as a substitute for measures of performance or liquidity prepared in accordance with GAAP.
UNAUDITED ADJUSTED CONSOLIDATED RESULTS (NON-GAAP)
(In millions)
2014 2013
Reconciliation of Operating Income under GAAP to adjusted OIBDA
and adjusted free cash flow:
Operating income under GAAP $ 507.1 $ 1,009.0
Depreciation and amortization 1,386.4 1,340.9
OIBDA (A) 1,893.5 2,349.9
Merger and integration costs 40.4 30.2
Pension expense (benefit) 128.3 (115.3)
Restructuring charges 35.9 8.6
Share-based compensation 41.8 44.7
Adjusted OIBDA (B) 2,139.9 2,318.1
Adjustments:
Adjusted capital expenditures (786.5) (811.7)
Cash paid for interest (568.1) (609.4)
Cash refunded (paid) for taxes 8.8 (5.7)
Adjusted free cash flow $ 794.1 $ 891.3
Dividends paid $ 602.2
Payout ratio 76%
(A) OIBDA is operating income before depreciation and amortization.
(B) Adjusted OIBDA adjusts pro forma OIBDA for the impact of merger and integration costs, restructuring
charges, pension expense (benefit) and share-based compensation.