United Rentals Earnings Reconciliation and Strategic Vision
Free Cash Flow GAAP Reconciliation
(In millions, except footnotes)
We define "free cash flow" as net cash provided by operating activities less purchases of, and plus proceeds from, equipment and intangible assets. The equipment and intangible asset purchases and proceeds are included in cash flows
from investing activities. Management believes that free cash flow provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements. However, free cash flow is
not a measure of financial performance or liquidity under GAAP. Accordingly, free cash flow should not be considered an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity.
The table below provides a reconciliation between net cash provided by operating activities and free cash flow.
Three Months Ended
Six Months Ended
June 30,
June 30,
Net cash provided by operating activities
Purchases of rental equipment
Purchases of non-rental equipment and intangible assets
Proceeds from sales of rental equipment
Proceeds from sales of non-rental equipment
2023
$ 1,289
2022
2023
2022
$ 1,154
$ 2,228 $ 2,040
(1,251)
(872)
(2,048)
(1,354)
(106)
(68)
(179)
(123)
382
164
770
375
16
4
28
9
Insurance proceeds from damaged equipment
10
10
19
17
Free cash flow (1)
$
340
$ 392 $
818 $
964
1)
Free cash flow included aggregate merger and restructuring related payments of $4 million and $2 million for the three months ended June 30, 2023 and
2022, respectively, and $5 million and $3 million for the six months ended June 30, 2023 and 2022, respectively.
The table below provides a reconciliation between 2023 forecasted net cash provided by operating activities and free cash flow.
Net cash provided by operating activities
Purchases of rental equipment
Proceeds from sales of rental equipment
Purchases of non-rental equipment and intangible assets, net of proceeds from sales and insurance proceeds from
damaged equipment
Free cash flow (excluding the impact of merger and restructuring related payments)
$4,500-$4,800
$(3,350)-$(3,550)
$1,350-$1,550
$(200)-$(300)
$2,300- $2,500
United Rentals®
Work United®
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