Adjusted EBITDA is not a recognized term under U.S. GAAP and does not purport to be a substitute for net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and is not intended to be a measure of cash flow available for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. In addition, the Company uses Adjusted EBITDA (i) as a factor in incentive compensation decisions, (ii) to evaluate the effectiveness of the Company's business strategies, and (iii) because the Company's credit agreements use similar measures for compliance with certain covenants.
Free Cash Flow and Adjusted Free Cash Flow: Free cash flow and Adjusted free cash flow are presented as supplemental measures of the Company's liquidity that management believes are useful to investors in analyzing the Company's ability to service and repay its debt. The Company defines Free cash flow as cash flow provided from operating activities less capital expenditures. The Company defines Adjusted free cash flow as cash flow provided from operating activities less capital expenditures, as further adjusted for restructuring and transformation-related payments. Free cash flow and Adjusted free cash flow include amounts associated with discontinued operations. Because not all companies use identical calculations, this presentation of Free cash flow and Adjusted free cash flow may not be comparable to other similarly titled measures of other companies.
|
Three Months Ended |
|
Twelve Months Ended | ||||||||
|
December 31 |
|
December 31 | ||||||||
Total Visteon |
2016 |
|
2015 |
|
2016 |
|
2015 | ||||
Cash provided from operating activities - Electronics and corporate |
$ |
86 |
|
$ |
89 |
|
$ |
198 |
|
$ |
251 |
Cash (used by) provided from operating activities - discontinued operations and other |
(4) |
|
(25) |
|
(78) |
|
87 | ||||
Cash provided from operating activities total Visteon |
$ |
82 |
|
$ |
64 |
|
$ |
120 |
|
$ |
338 |
Capital expenditures |
(19) |
|
(36) |
|
(75) |
|
(187) | ||||
Free cash flow |
$ |
63 |
|
$ |
28 |
|
$ |
45 |
|
$ |
151 |
Restructuring/transformation-related payments |
19 |
|
34 |
|
113 |
|
160 | ||||
Adjusted free cash flow |
$ |
82 |
|
$ |
62 |
|
$ |
158 |
|
$ |
311 |
|
Three Months Ended |
|
Twelve Months Ended |
|
| ||||||||
|
December 31 |
|
December 31 |
|
Estimated | ||||||||
Electronics and corporate |
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Full Year 2017 * | ||||
Cash provided from operating activities |
$ |
86 |
|
$ |
89 |
|
$ |
198 |
|
$ |
251 |
|
$175 - $190 |
Capital expenditures |
(20) |
|
(39) |
|
(74) |
|
(102) |
|
80 | ||||
Free cash flow |
$ |
66 |
|
$ |
50 |
|
$ |
124 |
|
$ |
149 |
|
$95 - $110 |
Restructuring/transformation-related payments |
13 |
|
16 |
|
43 |
|
63 |
|
70 | ||||
Adjusted free cash flow |
$ |
79 |
|
$ |
66 |
|
$ |
167 |
|
$ |
212 |
|
$165 - $180 |