Management views Free Cash Flow as an important financial measure of how well GWI is managing its assets. Subject to the limitations discussed below, Free Cash Flow is a useful indicator of cash flow that may be available for discretionary use by GWI. Free Cash Flow is defined as Net Cash Provided by Operating Activities from Continuing Operations less Net Cash Used in Investing Activities from Continuing Operations, excluding net cash paid/(received) for acquisitions/divestitures and the cash paid for acquisition-related expenses. Key limitations of the Free Cash Flow measure include the assumptions that GWI will be able to refinance its existing debt when it matures and meet other cash flow obligations from financing activities, such as principal payments on debt. Free Cash Flow is not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of cash flow determined in accordance with GAAP. Free Cash Flow may be different from similarly-titled non-GAAP financial measures used by other companies.

The following table sets forth a reconciliation of GWI's Net Cash Provided by Operating Activities from Continuing Operations to GWI's Free Cash Flow ($ in millions):
   
 
Six Months Ended

June 30,
2012         2011
Net cash provided by operating activities from continuing operations $ 90.9 $ 52.0
Net cash used in investing activities from continuing operations (a) (81.0 ) (46.3 )
Net cash paid/(received) for acquisitions/divestitures 0.8 (0.9 )
Cash paid for acquisition-related expenses (b)   -     13.0  
Free cash flow $ 10.7   $ 17.8  
 
 
 

(a) The 2012 and 2011 periods include $54.5 million and $22.6 million, respectively, in Australian new business investments.
(b) The 2011 period includes Australian stamp duty expenses accrued as of December 31, 2010, but paid in 2011.
 
 

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