United Rentals M&A and 4Q Results Presentation
Free Cash Flow GAAP Reconciliation
We define "free cash flow" as net cash provided by operating activities less purchases of, and plus proceeds from, equipment. The equipment 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.
$ Millions
Net cash provided by operating activities
Purchases of rental equipment
Purchases of non-rental equipment
Proceeds from sales of rental equipment
Proceeds from sales of non-rental equipment
Insurance proceeds from damaged equipment
Free cash flow (1)
(1)
Three Months Ended
December 31,
Year Ended
December 31,
2020
2019
2020
2019
$
370
$ 442
$ 2,658
$ 3,024
(176)
(158)
(961)
(2,132)
(52)
(61)
(197)
(218)
275
244
858
831
11
11
42
37
6
6
40
24
$
434
$ 484
$ 2,440 $ 1,566
Free cash flow included aggregate merger and restructuring related payments of $5 million and $4 million for the three months ended
December 31, 2020 and 2019, respectively, and $14 million and $26 million for the years ended December 31, 2020 and 2019, respectively.
The table below provides a reconciliation between 2021 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, net of proceeds from sales
Free cash flow (excluding the impact of merger and restructuring related payments)
United Rentals®
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2021 United Rentals, Inc. All rights reserved.
$2,950-$3,450
$(2,000)-$(2,300)
$800-$900
$(100)-$(200)
$1,650-$1,850
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