EX-10.86 3 d527946dex1086.htm EX-10.86 EX-10.86

EXHIBIT 10.86

 

     (Unaudited)  
     Year ended  

(in thousands)

    Dec. 31,
2012		      Dec. 31,
2011		      Dec. 31,
2010		  

EBITDA(1)

    $ 216,963       $ 229,558       $ 209,567   
  

 

 

     

 

 

     

 

 

  

Reconciliation of EBITDA:

         

Net Income

      109,408         126,105         98,847   

Add: Income taxes

      58,963         71,286         52,409   

Add: Interest expense and other, net, the Ed Hardy gain and loss on marketable securities

      41,826         24,194         49,552   

Add: Depreciation and amortization of certain intangibles

      6,766         7,973         8,759   
  

 

 

     

 

 

     

 

 

  

EBITDA

    $ 216,963       $ 229,558       $ 209,567   
  

 

 

     

 

 

     

 

 

  

 

(1) EBITDA, a non-GAAP financial measure, represents net income before income taxes, interest, other non-operating gains and losses, depreciation and amortization expenses. The Company believes EBITDA provides additional information for determining its ability to meet future debt service requirements, investing and capital expenditures.

 

     (Unaudited)  
     Year ended  

(in thousands)

    Dec. 31,
2012		     Dec. 31,
2011		     Dec. 31,
2010		  

Free Cash Flow(2)

    $ 180,485      $ 179,213      $ 166,571   
  

 

 

    

 

 

    

 

 

  

Reconciliation of Free Cash Flow:

       

Net Income

      109,408        126,105        98,847   

Add: Non-cash income taxes, non-cash interest related to convertible debt, depreciation, amortization of certain intangibles and finance fees, non-cash compensation expense, bad debt expense, net equity earnings from certain joint ventures, non-cash gain/loss from sale of trademarks, re-measurement of investments and loss on marketable securities

      72,675        56,350        70,914   

Less: Capital expenditures

      (1,598 )      (3,242 )      (3,190 ) 
  

 

 

    

 

 

    

 

 

  

Free Cash Flow

    $ 180,485      $ 179,213      $ 166,571   
  

 

 

    

 

 

    

 

 

  

 

(2) Free Cash Flow, a non-GAAP financial measure, represents net income before depreciation, amortization, non-cash compensation expense, bad debt expense, net equity earnings from certain joint ventures, non-cash income taxes, non-cash interest related to convertible debt, non-cash non-recurring gains and charges, less capital expenditures. The Free Cash Flow also excludes any changes in Balance Sheet items. The Company believes Free Cash Flow is useful in evaluating its financial condition because it is representative of cash flow from operations that is available for repaying debt, investing and capital expenditures.