In order to reconcile OIBDA to FCF you first need to adjust OIBDA for non-cash items, which means you need to:
- add back amortization of program rights (as investments in programming are considered below); and
- add back stock-based compensation.
Then you need to adjust OIBDA for changes in working capital.
Finally, you need to add or deduct cash items that were not included in OIBDA. This means you will lower OIBDA for the following outgoing payments:
- programming payments
- capex payments
- interest payments; and
- tax payments.
Please note that when using publically available data you may not be able to reconcile OIBDA to FCF with zero difference due to certain items that are not disclosed separately.
Unlevered free cash flow is defined as FCF before payments for interest and Guarantee Fees, which better illustrates the cash generated by our operations when comparing periods.
Reconciliations of OIBDA, FCF and unlevered free cash flow to the most comparable GAAP measures can be found in our latest filings (Form 10-Q or Form 10-K) in the Segment Note to the Consolidated Financial Statements, as well as in the Interactive Analyst Center section of our website.
(1) OIBDA includes amortization and impairment of program rights and is calculated as operating income / loss before depreciation,
amortization of intangible assets and impairments of assets and certain unusual or infrequent items that are not considered by our coCEOs
when evaluating our performance. Stock-based compensation and certain other items are not allocated to our segments for
purposes of evaluating their performance and therefore are not included in their respective OIBDA.