(b) Non-operating expense is the accelerated amortization of deferred financing costs and expensing of the call premium from redeeming $73.5 million in June 2012 and $150 million in February 2011 of the Company’s 6.75% senior subordinated notes.(c) Tax benefit from the release of $5.5 million of reserves primarily for uncertain tax positions as a result of an audit settlement. Management believes that adjusted operating income, adjusted EBITDA, adjusted net income and free cash flow (defined as cash provided by operating activities less cash payments for capital expenditures), which are non-GAAP measurements, are meaningful to investors because they provide a view of Hexcel with respect to ongoing operating results excluding special items. Special items represent significant charges or credits that are important to an understanding of Hexcel’s overall operating results in the periods presented. In addition, management believes that total debt, net of cash, which is also a non-GAAP measure, is an important measure of Hexcel’s liquidity. Such non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.
|Hexcel Corporation and Subsidiaries|
|Schedule of Total Debt, Net of Cash||Table D|
|June 30,||March 31,||December 31,|
|Notes payable and current maturities of capital lease obligations||$||19.2||$||14.5||$||12.6|
|Long-term notes payable and capital lease obligations||280.7||294.8||238.3|
|Less: Cash and cash equivalents||(32.6||)||(48.7||)||(49.5||)|
|Total debt, net of cash||$||267.3||$||260.6||$||201.4|