Capital Allocation and Digital Strategy Update
EBITDA and Adjusted EBITDA GAAP Reconciliations (cont'd)
The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA.
$ millions
Three Months Ended
December 31,
Year Ended
December 31,
2022
2023
2022
2023
$ 1,414
$ 1,251
$ 4,704
$ 4,433
United Rentals®
Net cash provided by operating activities
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
Gain on sales of rental equipment
Gain on sales of non-rental equipment
Insurance proceeds from damaged equipment
Restructuring charge (1)
(3)
219
(4)
(14)
(13)
241
786
566
5
3
21
9
8
7
38
32
(4)
Stock compensation expense, net (2)
(22)
(32)
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(28)
(94)
(127)
Loss on repurchase/redemption of debt securities (4)
(17)
Changes in assets and liabilities
(80)
40
107
(151)
Cash paid for interest
119
67
614
406
104
31
493
326
$ 1,760
$ 1,604
$ 6,627
$ 5,464
1)
Cash paid for income taxes, net
EBITDA
Add back:
Restructuring charge (1)
Stock compensation expense, net (2)
Impact of the fair value mark-up of acquired fleet (3)
Adjusted EBITDA
4
28
22
32
94
127
23
11
108
27
$ 1,809
$ 1,647
$ 6,857 $
5,618
2)
3)
Primarily reflects severance and branch closure charges associated with our restructuring programs. We only
include such costs that are part of a restructuring program as restructuring charges. The designated restructuring
programs generally involve the closure of a large number of branches over a short period of time, often in periods
following a major acquisition, and result in significant costs that we would not normally incur absent a major
acquisition or other triggering event that results in the initiation of a restructuring program. Since the first such
restructuring program was initiated in 2008, we have completed seven restructuring programs. In the first quarter of
2023, we initiated a restructuring program following the closing of the Ahern Rentals acquisition, and this program
was completed in the fourth quarter of 2023. There are no open restructuring programs as of December 31, 2023.
The increase in 2023 reflects charges associated with the restructuring program initiated following the closing of
the Ahern Rentals acquisition. We have cumulatively incurred total restructuring charges of $380 million under our
restructuring programs.
Work United®
4)
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 certain major acquisitions and subsequently sold. The increase in
2023 primarily reflects the impact of the Ahern Rentals acquisition.
Primarily reflects the difference between the net carrying amount
and the total purchase price of the redeemed notes.
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