4. NON-GAAP FINANCIAL MEASURES

In addition to the results prepared in accordance with GAAP provided in this release, the Company has presented segment profit. A reconciliation of segment profit to operating income determined in accordance with GAAP for each business segment is as follows:
   

 
           
(in thousands)

Three months ended
Nine months ended
September 30, September 30,
      2012       2011       2012       2011  
   
Operating income $ 222,072 $ 195,817 $ 695,448 $ 653,414

Depreciation and amortization of intangible assets:
Lifestyle Media 26,602 22,226 73,919 64,931
Corporate and other 2,376 510 5,513 1,540
 
Losses (gains) on disposal of property and equipment:
Lifestyle Media 17 (82 ) 103 (63 )
Corporate and other     (1 )           (1 )      
 
Total segment profit   $ 251,066     $ 218,471     $ 774,982     $ 719,822  
 

The Company defines free cash flow as cash provided by operating activities less dividends paid to noncontrolling interests and acquisitions of property and equipment. The Company measures free cash flow as it believes it is an important indicator for management and investors as to the Company’s liquidity, including its ability to reduce debt, make strategic investments and return capital to shareholders. A reconciliation of free cash flow is as follows:
 
           
(in thousands) Three months ended Nine months ended
September 30,     September 30,
      2012       2011         2012       2011  
   
 
Segment profit $ 251,066 $ 218,471 $ 774,982 $ 719,822
Income taxes paid (100,154 ) (54,689 ) (254,746 ) (137,382 )
Interest paid (15,154 ) (16,503 ) (39,599 ) (32,689 )
Working capital and other     51,544       32,618         (47,040 )     (17,559 )
 

Cash provided by continuing operating activities
187,302 179,897 433,597 532,192
Dividends paid to noncontrolling interests (15,341 ) (13,996 ) (148,181 ) (58,676 )
Additions to property and equipment     (14,968 )     (12,480 )       (34,058 )     (37,355 )
 
Free cash flow   $ 156,993     $ 153,421       $ 251,358     $ 436,161  
 

Since segment profit and free cash flow are non-GAAP measures, they should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance reported in accordance with GAAP.

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