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Segment EBITDA of $150 increased by $13 from 2012, improving EBITDA  margin to 14.6% in 2013 as compared to 13.5% in 2012. Higher sales volumes benefited EBITDA by about $9 and material cost savings contributed another $9. Pricing actions and other items provided a partial of fset. 

## Non-GAAP Financial Measures 

## Adjusted EBITDA 

We have defined adjusted EBITDA as earnings from continuing and discontinued operations before interest, taxes, depreciation, amortization, equity grant expense, restructuring expense and other nonrecurring items (gain/loss on debt extinguishment, pension settlements or divestitures, impairment, etc.). Adjusted EBITDA is a primary driver of cash flows from operations and a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. Adjusted EBITDA should not be considered a substitute for income before income taxes, net income or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. 

The following table provides a reconciliation of segment EBTIDA  and adjusted EBITDA to net income. 

<img src='content_image/170566.jpg'>

* Other includes strategic transaction expenses, stock compensation expense, loss on disposal group held for sale, pension settlement char ges, loss on extinguishment of debt, write-off of deferred financing costs, recognition of unrealized gain on payment-in-kind note receivable, and other items. See Note 19 to our consolidated financial statements in Item 8 for additional details. 

## Free Cash Flow 

We have defined free cash flow as cash provided by operating activities less purchases of property , plant and equipment. We believe this measure is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Free cash flow is neither intended to represent nor be an alternative to the measure of net cash provided by operating activities reported under GAAP . Free cash flow may not be comparable to similarly titled measures reported by other companies. 

