GPS » Topics » RECONCILIATION OF EXPECTED NET CASH PROVIDED BY OPERATING ACTIVITIES TO EXPECTED FREE CASH FLOW
This excerpt taken from the GPS 8-K filed Nov 20, 2008.
RECONCILIATION OF EXPECTED NET CASH PROVIDED BY OPERATING ACTIVITIES TO EXPECTED FREE CASH FLOW
($ in millions)
Expected 52 Weeks Ending January 31, 2009
Expected net cash provided by operating activities
Less: expected purchases of property and equipment
Expected free cash flow (a)
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, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash
flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.