GPS » Topics » RECONCILIATION OF FISCAL YEAR 2007 EXPECTED NET CASH PROVIDED BY OPERATING ACTIVITIES TO EXPECTED FREE CASH FLOW
This excerpt taken from the GPS 8-K filed May 24, 2007.
RECONCILIATION OF FISCAL YEAR 2007 EXPECTED NET CASH PROVIDED BY OPERATING ACTIVITIES TO EXPECTED FREE CASH
($ in millions)
Expected 52 Weeks Ending February 2, 2008
Expected net cash provided by operating activities
Less: Expected purchase of property and equipment
Expected free cash flow (b)
Free cash flow is a non-GAAP financial measure. We believe free cash flow is an important metric as it represents a measure of how much cash a company has available after the
deduction of capital expenditures and we require regular capital expenditures to build and maintain stores and purchase new equipment to keep the business growing. We use this metric internally, as we believe our sustained ability to increase free
cash flow is an important driver of value creation.