Financial information  continued Free cash flow Constant exchange rates (CER) EBITDA Net debt reconciliation Restructuring and impairment before taxes Cash flow return on investment 52 Syngenta Annual Review 2011 The incidence of these business changes may be periodic and the  effect on reported performance of initiating them will vary from  period to period. Because each such business change is different  in nature and scope, there will be little continuity in the detailed  composition and size of the reported amounts which affect  performance in successive periods. Separate disclosure of these  amounts facilitates the understanding of performance including  and excluding items affecting comparability. Syngenta’s definition  of restructuring and impairment may not be comparable to similarly  titled line items in financial statements of other companies. Impairment includes impairment losses associated with major  restructuring as well as impairment losses and reversals of  impairment losses resulting from major changes in the markets  in which a reported segment operates.  Cash flow return on investment is a measure used by Syngenta  to compare cash returns to average invested capital. Gross cash  flow used in the calculation comprises cash flow before change in  net working capital, excluding interest and other financial receipts  and payments. In 2011 and 2010, accelerated contributions to the  defined benefit pension plans were also excluded. Invested capital  comprises: total current assets, excluding cash and derivative and  other financial assets; total non-current assets, excluding non- current derivative and other financial assets and defined benefit  pension assets, and adjusted to reflect the gross book values of  property, plant and equipment and intangible assets; total current  liabilities, excluding derivative financial liabilities and current  financial debt; and deferred tax liabilities. Restructuring represents the effect on reported performance of  initiating and enabling business changes that are considered major  and that, in the opinion of management, will have a material effect  on the nature and focus of Syngenta’s operations, and therefore  require separate disclosure to provide a more thorough  understanding of business performance. Restructuring includes  the incremental costs of closing, restructuring or relocating existing  operations, and gains or losses from related asset disposals.  Restructuring also includes the effects of completing and  integrating significant business combinations and divestments,  including related transaction costs, gains and losses. Recurring  costs of normal business operations and routine asset disposal  gains and losses are excluded. Net debt comprises total debt net of related hedging derivatives, cash  and cash equivalents and marketable securities. Net debt is not a  measure of financial position under generally accepted accounting  principles and the net debt measure used by Syngenta may not be  comparable to the similarly titled measure of other companies. Net  debt has been included as it is used by many investors as a useful  measure of financial position and risk. The following table presents  the derivation of the debt/equity gearing ratio: Free cash flow is not a measure of financial performance under  generally accepted accounting principles and the free cash flow  measure used by Syngenta may not be identical to similarly titled  measures of other companies. Free cash flow has been included  as it is used by many investors as a useful supplementary measure  of cash generation. Free cash flow comprises cash flow from operating and investing  activities: excluding investments in and proceeds from marketable  securities, which are included in investing activities; excluding cash  flows from and used for foreign exchange movements and  settlement of related hedges on inter-company loans, which are  included in operating activities; and including cash flows from  acquisitions of non-controlling interests, which are included in  financing activities.  Results in this report from one period to another period are, where  appropriate, compared using constant exchange rates (CER).  To present that information, current period results for entities  reporting in currencies other than US dollars are converted into  US dollars at the prior period’s exchange rates, rather than at  the exchange rates for the current year. CER margin percentages  for gross profit and EBITDA are calculated by the ratio of these  measures to sales after restating the measures and sales at prior  period exchange rates. The CER presentation indicates the  underlying business performance before taking into account  currency exchange fluctuations. EBITDA is defined as earnings before interest, tax, non-controlling  interests, depreciation, amortization, restructuring and impairment.  Information concerning EBITDA has been included as it is used by  management and by investors as a supplementary measure of  operating performance. Management excludes restructuring from  EBITDA in order to focus on results excluding items affecting  comparability from one period to the next. EBITDA is not a  measure of cash liquidity or financial performance under generally  accepted accounting principles and the EBITDA measures used  by Syngenta may not be comparable to other similarly titled  measures of other companies. EBITDA should not be construed  as an alternative to operating income or cash flow as determined  in accordance with generally accepted accounting principles. (US$m) 2011 2010 Net debt 1,135 1,473 Shareholders’ equity 7,494 7,439 Debt/equity gearing ratio (%) 15% 20%