Executing for Growth and Returns
Reconciliation of Net Cash Provided
by Operating Activities to EBITDA and
Adjusted EBITDA
Three Months Ended
June 30,
Six Months Ended
June 30,
$ Millions
Net cash provided by operating activities
2017
2016
2017
2016
$
714 $ 643
$ 1,337 $ 1,247
Adjustments for items included in net cash provided by operating
activities but excluded from the calculation of EBITDA:
Amortization of deferred financing costs and original issue discounts
(2)
Gain on sales of rental equipment
52
Gain on sales of non-rental equipment
2
Merger related costs (1)
(14)
Restructuring charge (2)
(19)
Stock compensation expense, net (3)
(24)
(13)
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(4)
(4)
98
102
3
(16)
(2)
(19)
(40)
Loss on repurchase/redemption of debt securities and amendment of ABL
facility
སྟྲ 7 | $8
(4)
(22)
(12)
(26)
(12)
(26)
Excess tax benefits from share-based payment arrangements
26
Changes in assets and liabilities
(170)
(232)
(346)
(350)
Cash paid for interest
Cash paid for income taxes, net
EBITDA
Add back:
87
150
177
219
58
56
59
3
$
672
$
655
$ 1,237 $ 1,219
Merger related costs (1)
14
16
Restructuring charge (2)
19
2
19
4
Stock compensation expense, net (3)
24
13
40
22
Impact of the fair value mark-up of acquired RSC and NES fleet (4)
Adjusted EBITDA
18
9
26
18
$
747 $
679 $ 1,338 $
1,263
(1)
Reflects transaction costs associated with the NES acquisition discussed above. We have made a
number of acquisitions in the past and may continue to make acquisitions in the future. Merger
related costs only include costs associated with major acquisitions that significantly impact our
operations. The historic acquisitions that have included merger related costs are RSC, which had
annual revenues of approximately $1.5 billion prior to the acquisition, and National Pump, which had
annual revenues of over $200 million prior to the acquisition. NES had annual revenues of
approximately $369 million.
United Rentals
(2) Primarily reflects severance and branch closure charges associated with our closed restructuring
programs and our current restructuring program. We only include such costs that are part of a
restructuring program as restructuring charges. Since the first such restructuring program was
initiated in 2008, we have completed three restructuring programs. We have cumulatively
incurred total restructuring charges of $253 million under our restructuring programs.
Represents non-cash, share-based payments associated with the granting of equity instruments.
Reflects additional costs recorded in cost of rental equipment sales associated with the fair value
mark-up of rental equipment acquired in the RSC and NES acquisitions and subsequently spld.
Executing for Growth and Returns
(3)
(4)
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