Adjusted Cash from Operations, Adjusted Capital Expenditures, and Free Cash Flow

Reconciliations and computations of adjusted cash from operations, adjusted capital expenditures, and free cash flow:
 
Nine Months Ended

 
December 31,

(In thousands)
2012   2011
 
Net cash provided by operating activities $ 405,058 $ 341,051

 
 
Adjustments to cash provided by operating activities:
Stock issued for Employee Stock Purchase Plan 12,781 11,361

 
Tax benefit realized from the exercise of stock options 33,352 10,914

 
Net cash expenditures related to unsolicited takeover attempt - 35,084

 
Cash expenditures related to multi-employer pension plan withdrawals   -     18,323  

 
Adjusted cash from operations   451,191     416,733  

 
 
Capital expenditures (244,052 ) (263,398 )

 
 
Adjustments to capital expenditures:
Proceeds from sales of plant and equipment 7,718 12,199

 
Operating lease buyouts   3,946     9,218  

 
Adjusted capital expenditures   (232,388 )   (241,981 )

 
 
Free cash flow $ 218,803   $ 174,752  

 
 

The Company believes its adjusted cash from operations, adjusted capital expenditures, and free cash flow financial measures provide investors meaningful insight into its ability to generate cash from operations, excluding the impact of net cash expenditures related to Air Products’ unsolicited takeover attempt and multi-employer pension plan withdrawal charges, which is available for servicing debt obligations and for the execution of its business strategies, including acquisitions, the repayment of debt, the payment of dividends, or to support other investing and financing activities. Non-GAAP financial measures should be read in conjunction with GAAP financial measures, as non-GAAP financial measures are merely a supplement to, and not a replacement for, GAAP financial measures. It should also be noted that the Company’s adjusted cash from operations, adjusted capital expenditures, and free cash flow financial measures may be different from adjusted cash from operations, adjusted capital expenditures, and free cash flow financial measures provided by other companies.

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