ManageMent’s Discussion anD analysis In order to provide additional information, the Company believes it is appropriate to measure free cash flow that is generated  by the operations of the Company. Free cash flow is defined as cash flow from operations excluding changes in non-cash  working capital, mark-to-market and derivative timing adjustments, financial instruments’ non-cash amount, funds received  or paid from the issue or purchase of shares and investment capital expenditures. Free cash flow is a non-GAAP measure.  Free cash flow is as follows: Free cash flow was $15.1 million lower than the previous year. The decrease is due mainly to lower adjusted results from  operating activities of $18.1 million. This was partially offset with an increase in free cash flow of $2.1 million as deferred  financing charges of $0.6 million were paid in fiscal 2013 for the renewal of the revolving credit facility compared to $2.7 million in fiscal 2012 for the issuance of the fifth series convertible debentures. In addition, $0.7 million of additional  investment capital expenditures were made this year versus last. Changes in non-cash operating working capital, income taxes payable and interest payable represent year-over-year movement  in current assets, such as accounts receivable and inventories, and current liabilities, such as accounts payable. Movements  in these accounts are due mainly to timing in the collection of receivables, receipts of raw sugar and payment of liabilities.  Increases or decreases in such accounts are due to timing issues and therefore do not constitute free cash flow. Such increases  or decreases are financed from available cash or from the Company’s available credit facility of $150.0 million. Increases or  decreases in bank indebtedness are also due to timing issues from the above, and therefore do not constitute available free  cash flow. The combined impact of the mark-to-market and financial instruments non-cash amount of $2.0 million does not represent  cash items as these contracts will be settled when the physical transactions occur, which is the reason for the adjustment to  free cash flow. Capital expenditures, net of investment capital, were lower by approximately $0.8 million in fiscal 2013 due to timing.  Every year, the Company targets to invest approximately $7.0 million in maintenance capital expenditures. Rogers Sugar Inc. 22 (In thousands of dollars)  2013 2012 2011 $ $ $ Cash flow from operations  37,653 47,793 22,915 Adjustments: Changes in non-cash working capital  3,452 (14,417) 35,697 Changes in non-cash income taxes payable  1,423 5,113 (8,689) Changes in non-cash interest payable  368 315 350 Mark-to-market and derivative timing adjustments  (4,461) 22,212 (10,247) Financial instruments non-cash amount  6,458 1,699 5,636 Capital expenditures  (9,117) (9,183) (8,128) Investment capital expenditures  1,430 694 175 Issue (buy back) of securities  92 352 275 Deferred financing charges  (569) (2,716) – Free cash flow  36,729 51,862 37,984 Declared dividends  67,751 32,915 32,714