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U Video chat with an Expert and advice in minutes Select a virtual Expert 6 x Cett mess than 1 minute Common video chat topics Shopk frontdoor Second - Quarter 2026 Earnings Webcast August 6th , 2026
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Today’s Presenters Bill Cobb Matt Davis Vice President, Investor Relations and Treasurer Jason Bailey Senior Vice President & Chief Financial Officer 2 Chairman & Chief Executive Officer
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Forward Looking Statements Non-GAAP Financial Measures To supplement Frontdoor’s results presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), Frontdoor has disclosed the non-GAAP financial measures of Adjusted EBITDA, Free Cash Flow, and Unrestricted Cash. We define "Adjusted EBITDA" as net income before depreciation and amortization expense; goodwill and intangibles impairment; restructuring charges; acquisition and integration related costs; provision for income taxes; non-cash stock-based compensation expense; interest expense; loss on extinguishment of debt; and other non-operating expenses. We define “Adjusted EBITDA margin” as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful for investors, analysts and other interested parties as they facilitate company-to-company operating performance comparisons by excluding potential differences caused by variations in capital structures, taxation, the age and book depreciation of facilities and equipment, restructuring and acquisition initiatives and equity-based, long-term incentive plans. We define “Free Cash Flow” as net cash provided from operating activities less property additions. Free Cash Flow is not a measurement of our financial performance or liquidity under U.S. GAAP and does not purport to be an alternative to net cash provided from operating activities or any other performance or liquidity measures derived in accordance with U.S. GAAP. We define “Adjusted Net Income” as net income before: amortization expense; acquisition and integration related costs; restructuring charges; loss on extinguishment of debt; other non-operating expenses; and the tax impact of the aforementioned adjustments. We believe Adjusted Net Income is useful for investors, analysts and other interested parties as it facilitates company-to-company operating performance comparisons by excluding potential differences caused by items listed in this definition. We define “Adjusted Diluted Earnings per Share” as Adjusted Net Income divided by the weighted-average diluted common shares outstanding. We define “Unrestricted Cash” as cash not subject to third-party restrictions. For additional information related to our third-party restrictions, see “Liquidity and Capital Resources — Liquidity” under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report on Form 10-K filed with the SEC. See the Appendix attached hereto for additional information and reconciliations of such non-GAAP financial measures. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors’ evaluation of Frontdoor’s business performance and are useful for period-over-period comparisons of the performance of Frontdoor’s business. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, these non-GAAP financial measures may not be the same as similarly entitled measures reported by other companies. Reconciliations of the forward-looking Non-GAAP Financial Measures to the most comparable GAAP financial measures cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. © 2026 Frontdoor, Inc. All rights reserved. The following terms, which may be used in this presentation, are trademarks of Frontdoor, Inc. and its subsidiaries: Frontdoor®, American Home Shield®, HSATM, 2-10 HBW®, OneGuard®, Landmark Home Warranty® and related logos and designs. All other trademarks used herein are the property of their respective owners. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements about Frontdoor’s plans, strategies and prospects. Forward-looking statements can be identified by the use of forward-looking terms such as “believe,” “expect,” “estimate,” “could,” “should,” “intend,” “may,” “plan,” “seek,” “anticipate,” “project,” “will,” “shall,” “would,” “aim,” or other comparable terms. These forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Such risks and uncertainties include, but are not limited to: changes in macroeconomic conditions, including inflation, tariffs and global supply chain challenges and changing interest rates, especially as they may affect existing or new home sales, consumer confidence, demand for our services, labor availability or our costs; our ability to successfully implement our business strategies; the ability of our marketing efforts to be successful and cost-effective; our dependence on our first-year direct-to-consumer and real estate acquisition channels and our renewal channel for home warranty sales; our dependence on our existing warranty customer base and strategic partners for non-warranty sales; changes in the source and intensity of competition in our market; our ability to attract, retain and maintain positive relations with third-party contractors and vendors; increases in parts, appliance and home system prices, and other operating costs; changes in U.S. tariffs or import/export regulations; our ability to attract and retain qualified key employees and labor availability in our customer service operations; our dependence on third-party vendors, including business process outsourcers, and third-party component suppliers; weather, including adverse conditions, seasonality, along with related environmental regulations; compliance with, or violation of, laws and regulations, including consumer protection laws, or lawsuits or other claims by third parties, increasing our legal and regulatory expenses; cybersecurity breaches, disruptions or failures in our technology systems; our ability to protect the security of personal information about our customers; technological developments in artificial intelligence; negative reputational and financial impacts resulting from acquisitions or strategic transactions; a requirement to recognize impairment charges on goodwill and intangible assets; our ability to underwrite risks accurately and to charge adequate prices to builder members, as well as our ability to effectively re-insure a large portion of those risks; the availability of reinsurance to manage a substantial portion of our potential loss exposure for our new home builder warranty business; evolving corporate governance and disclosure regulations and expectations; inappropriate use of social media by us or other parties to harm our reputation; our ability to protect our intellectual property and other material proprietary rights; third-party use of our trademarks as search engine keywords to direct our potential customers to their own websites; special risks applicable to operations outside the United States by us or our business process outsource providers; the acquisition of 2-10 Home Buyers Warranty may not achieve its intended results; any liabilities, losses, or other exposures for which we do not have adequate insurance coverage, indemnification, or other protection; a return on investment in our common stock is dependent on appreciation in the price; inclusion in our certificate of incorporation a forum selection clause that could discourage an acquisition of our company or litigation against us and our directors and officers; the effects of our significant indebtedness, our ability to incur additional debt and the limitations contained in the agreements governing such indebtedness; increases in interest rates increasing the cost of servicing our indebtedness and counterparty credit risk due to instruments designed to minimize exposure to market risks; increased borrowing costs due to lowering or withdrawal of the credit ratings, outlook or watch assigned to us or our Credit Facilities; our ability to generate the significant amount of cash needed to fund our operations and service our debt obligations. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. For a discussion of other important factors that could cause Frontdoor’s results to differ materially from those expressed in, or implied by, the forward-looking statements included in this document, refer to the risks and uncertainties detailed from time to time in Frontdoor’s periodic reports filed with the SEC, including the disclosure contained in Item 1A. Risk Factors in our 2025 Annual Report on Form 10-K filed with the SEC, as such factors may be updated from time to time in Frontdoor’s periodic filings with the SEC. Except as required by law, Frontdoor does not undertake any obligation to update or revise the forward-looking statements to reflect new information or events or circumstances that occur after the date of this presentation or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review Frontdoor’s filings with the SEC, which are available from the SEC’s EDGAR database at sec.gov, and via Frontdoor’s website at frontdoorhome.com. 3
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Delivering Across Strategic Priorities 1 2 3 4 Drive Member Growth Scale Non-Warranty Revenue Deliver Structurally Higher Margins Maintain Capital Allocation Discipline 4
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Q2 2026 Highlights *This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a descr iption of this measure and the Appendix for a reconciliation to the nearest GAAP financial measure. +13% +10% +100 bps Net Income Adjusted EBITDA* Gross Profit Margin ($ millions) Revenue $645M +5% 59% $125M $220M 5 $181M of shares repurchased through July 31 Returned to Shareholders $1.93 +19% Adjusted EPS Note: all comparisons are versus the prior year comparable period. Adjusted EPS is presented on a diluted basis
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Total Ending Member Count Increased 1% 6 Renewal Home Warranty Count Stable vs. Prior Year Period Strong Retention Rates Real Estate Home Warranty Count +7% vs. Prior Year Period Improving Capture Rates Direct-To-Consumer Home Warranty Count +5% vs. Prior Year Period Growing Momentum First Total Ending Member Growth Since 2021
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Delivering Consistent DTC Ending Member Growth 7 Ending Member Count Growth of 5% vs the PY Period 2 Improving Conversion o Optimized content strategies improving search outcomes o AI-enabled sales tools driving higher conversion rates o Promotional pricing as strategic acquisition tool o +5% ending member growth versus prior year period o Seven straight quarters of channel ending member count growth o Strong renewal trends o Strong long-term economics Executing against a proven playbook… ...to drive continued growth 1 Growing Demand o Warrantina campaign resonating o Increasing marketing investment, improving mix, and pacing o Multi-brand strategy powering DTC growth
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Real Estate Delivering Strong Growth 8 Q2 2026 Ending Member Count +7% year-over-year improvement Attach Rate Momentum >5% of Existing Homes Sales in Q2 2.6 3.1 3.8 4.6 4.5 5.0 4.1 4.1 4.1 4.1 0 2 4 6 8 10 12 14 16 18 20 0 1 2 3 4 5 6 2022 2023 2024 2025 Q2 2026 Average Months of Supply on Hand Existing Home Sales (in millions) Avg Months of Supply vs. Existing Home Sales Source: National Association of Realtors Target supply is 5+ months Note: Average months of supply on hand is show as a Q2 average for each respective period
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The Renewal Journey 9 [XX]% Retention Rate up [XX] bps YoY — near all-time high 1 2 3 4 Onboarding Engagement Renewal Moment Post-Renewal
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Winning The Renewal Moment 10 o Stronger save program execution o Simplified autopay enrollment o 2-10 system migration improving renewals 1 Elevating the Member Experience 2 Operational Improvements o Differentiated technology features o Strong usage of preferred contractors o Record high 5-star and record low 1-star ratings Retention Rate 79.2% 79.3% 79.6% Q4 2025 Q1 2026 Q2 2026
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HVAC Upgrades Expanding Share of Wallet 11 New HVAC Upgrade Revenue Significantly scaled business since program inception $13M $51M $87M $128M 2022 2023 2024 2025 2026 Fcst ➢ Expanded contractor participation ➢ Improving quote and win rates ➢ Implementing dynamic pricing Significant Opportunity Ahead Low penetration program to date ~3% of member base has purchased new HVAC system through Frontdoor ➢ ~2M member base = built-in demand funnel with no CAC ➢ Aging HVAC systems ➢ Cross-sell from warranty claim to upgrade conversation $165M - $175M Proven Growth Engine With Significant Runway Ahead Across Multiple Trades
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Second Quarter 2026 Financial Results 12
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Delivering Value Through a Durable Model 13 Renewal-Driven Revenue Structurally Higher Margins Excellent Cash Generation Returning Cash to Shareholders Predictable subscription-based Operational excellence >60% of Adj EBITDA* to FCF* ~$900M repurchased since 2021 * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a descri ption of this measure and the Appendix for a reconciliation to the nearest GAAP financial measure
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Strong First Half Financial Results * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a descri ption of this measure and the Appendix for a reconciliation to the nearest GAAP financial measure. 14Note: all comparisons are versus the prior year comparable period. Adjusted EPS is presented on a diluted basis Revenue $645M +5% Q2 2026 1H 2026 Revenue $1,096M +5% Adj EBITDA* $220M +10% Adj EBITDA* $324M +8% Net Income $167M +13% Net Income $125M +13% Adj EPS* $1.93 +19% Adj EPS* $2.66 +17%
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Q2 2025 Q2 2026 Continued Revenue Growth in Q2 +5% 15 $645M$617M Total: 5% growth comprised of over 3% price and over 1% volume Renewals: up 4% due to higher price RE1: up 3% due to higher volume partially offset by lower price DTC1: down (2)% as lower price was partially offset by higher volume Non warranty & other: up 19% primarily driven by the New HVAC upgrade program
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$356 $378 Q2 2025 Q2 2026 Delivered Record Gross Margins in Q2 ($ millions) +5% Gross Profit 16 Gross Profit Margin 58% 59%+100 bps Q2 2025 Q2 2026 + + + _ _ Pricing Actions Lower Incidence Rate Operational Excellence Normal Cost Inflation Revenue Mix Shift o Dynamic pricing o Favorable weather o New HVAC upgrade program o Improved cost control and planning o Supply chain optimization o 2-10 cost synergies o Labor o Parts and equipment o New HVAC upgrade program growth
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$111 $125 Q2 2025 Q2 2026 Q2 2026 Net Income & Adjusted EBITDA* ($ millions) $199 $220 Q2 2025 Q2 2026 Net Income Adjusted EBITDA* +13% +10% * This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a descri ption of this measure and the Appendix for a reconciliation to the nearest GAAP financial measure 17 32% Adj EBITDA Margin* 34% Adj EBITDA Margin*
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13% 19% 24% 26% 27% 2022 2023 2024 2025 2026 Fcst* Fundamentally Stronger Business Model 18 Pricing Actions Operational Excellence Operating Leverage Dynamic pricing model and trade service fee optimizing price and member risk profile Improved contractor network + scaled supply chain driving cost efficiency Scaling SG&A efficiently as revenue grows Adj EBITDA Margin* 2026 forecast reflects Adj EBITDA margin based off the midpoint of updated 2026 financial guidance on page 22 *This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a descri ption of this measure and the Appendix for a reconciliation to the nearest GAAP financial measure +1,400 bps of margin expansion in four years Operating at the high end of our mid 20% long-term target updated in early 2026
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Strong Free Cash Flow & Financial Position *This financial measure is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures" in this presentation for a descri ption of this measure and the Appendix for a reconciliation to the nearest GAAP financial measure 19 Total Liquidity21H Free Cash Flow* FCF1 Conversion $722M$233M >60% Durable cash generation & strong liquidity position provide ample flexibility to create value through our capital allocation strategy Unrestricted Cash $472M 1Target free cash flow conversion of Adjusted EBITDA 2Available liquidity includes $472M of Unrestricted Cash and $250M of borrowing capacity on our committed line of credit
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Disciplined Capital Allocation Creating Long-Term Value 20 1 2 3 Invest For Growth Preserve Financial Flexibility Return Excess Cash to Shareholders o Organic investments o Selective M&A o Maintain ample liquidity o Prudent leverage ratio o Programmatic and opportunistic share repurchases
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Expect to Complete Repurchase Authorization in 2026 21 $148M Remaining authorization $181M Repurchased YTD through July 2026 $502M Repurchased since Sept 2024 authorization Current Authorization Share Repurchases Since 2021 EPS Accretion >20% EPS benefit from buybacks Capital Deployed Deployed ~$900M to share repurchases Share Count Reduction Reduced share count by ~24% through July 2026
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Increasing FY 2026 Outlook Metric Actual FY 2025 Prior FY 2026 Outlook Revised FY 2026 Outlook Revenue $2.1 billion $2.155 - $2.195 billion $2.19 - $2.21 billion Gross Profit Margin 55% 54% - 55% ~55% SG&A $669 million $660 - $680 million $685 - $695 million Adjusted EBITDA* $553 million $565 - $580 million $585 - $600 million Capital Expenditures $26 million $30 - $35 million ~$30 million Annual Effective Tax Rate 25% ~25% ~25% 22 *Refer to “Non-GAAP Financial Measures" in this presentation for a description of this measure. A reconciliation of our forward -looking Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such re conciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the company is unable to assess the probable significance of the unavailable information, which could have a material impact on i ts future GAAP financial results.
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Q3 2026 Financial Guidance Revenue Adjusted EBITDA* $642M to $652M $197M to $207M DriversDrivers 23 o Renewal increase low-single to mid-single digits o Real Estate increase low-single digit o Direct-to-Consumer decrease low-single digit o Non-warranty & Other increase over 20% o Higher revenue conversion o Slightly lower gross margin driven by cost inflation and mix shift o Incremental SG&A to drive growth *Refer to “Non-GAAP Financial Measures" in this presentation for a description of this measure. A reconciliation of our forward -looking Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such re conciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the company is unable to assess the probable significance of the unavailable information, which could have a material impact on i ts future GAAP financial results.
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2424 Three Key Takeaways: Ending Member Count Past Inflection Point Delivering Margins In-Line With Long Term Targets Expect to Complete Repurchase Authorization Early
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Questions? 25
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Appendix 26
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Q2 & YTD 2026 Consolidated Results *This financial measure is a non-GAAP financial measure. Refer to "Non -GAAP Financial Measures" in this presentation for a descr iption of this measure 27 Three Months Ended June 30, Six Months Ended June 30, $ millions, except per share amounts 2026 2025 Change 2026 2025 Change Revenue $645 $617 $29 $1,096 $1,043 $54 YoY Growth 5% 5% Gross Profit $378 $356 $23 $626 $591 $35 % of revenue 59% 58% 100 bps 57% 57% 40 bps Selling and administrative expenses $176 $172 $4 $338 $323 $15 % of revenue 27% 28% -70 bps 31% 31% -20 bps Depreciation and amortization expense 20 21 (1) 40 44 (4) Restructuring charges 2 (0) 2 3 0 2 Interest expense 19 20 1 38 39 (1) Interest and net investment income (5) (4) (1) (11) (10) (0) Income before taxes $167 $146 $20 $218 $194 $24 Provision for income taxes 41 36 6 51 46 5 Net income $125 $111 $15 $167 $148 $19 Net Income Margin 19% 18% 150 bps 15% 14% 100 bps Other comprehensive income, net of tax 4 (5) 9 8 (12) 20 Total Comprehensive Income $130 $106 $24 $175 $136 $39 Earnings Per Share: Basic $1.80 $1.51 $0.29 $2.37 $2.00 $0.38 Diluted $1.76 $1.48 $0.28 $2.33 $1.96 $0.37 Weighted average common shares outstanding: Basic 69.9 73.5 3.6 70.2 74.1 3.8 Diluted 71.1 74.7 3.6 71.6 75.3 3.8 Adjusted EBITDA* $220 $199 $21 $324 $300 $24 Adjusted EBITDA Margin* 34% 32% 200 bps 30% 29% 100 bps
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Adjusted EBITDA* Reconciliation *This financial measure is a non-GAAP financial measure. Refer to "Non -GAAP Financial Measures" in this presentation for a descr iption of this measure 28 Three Months Ended Six Months Ended Year Ended June 30, June 30, Dec 31, ($ millions) 2026 2025 2026 2025 2025 2024 2023 2022 Net Income $125 $111 $167 $148 $255 $235 $171 $71 Depreciation and amortization expense 20 21 40 44 89 39 37 34 Restructuring charges 2 0 3 0 4 8 16 20 Acquisition and integration related costs 1 2 4 4 8 17 0 0 Provision for income taxes 41 36 51 46 84 74 57 22 Non-cash stock-based compensation expense 11 9 21 17 34 26 26 22 Interest expense 19 20 38 39 79 40 40 31 Loss on extinguishment of debt 0 0 0 0 0 3 0 0 Other non-operating expenses 0 1 0 1 1 0 0 0 Goodwill and intangible impairment 0 0 0 0 0 0 0 14 Adjusted EBITDA $220 $199 $324 $300 $553 $443 $346 $214
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Adjusted Net Income* Reconciliation *This financial measure is a non-GAAP financial measure. Refer to "Non -GAAP Financial Measures" in this presentation for a descr iption of this measure 29 Three Months Ended Six Months Ended June 30, June 30, ($ millions) 2026 2025 2026 2025 Net Income $125 $111 $167 $148 Amortization expense 12 12 24 25 Restructuring charges 2 0 3 0 Acquisition and integration related costs 1 2 4 4 Tax Impact of adjustments (4) (3) (7) (7) Adjusted Net Income* $137 $122 $190 $171 Adjusted Earnings per Share* Diluted $1.93 $1.63 $2.66 $2.27 Weighted-average Common Shares outstanding Diluted 71.1 74.7 71.6 75.4
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Free Cash Flow* Reconciliation *This financial measure is a non-GAAP financial measure. Refer to "Non -GAAP Financial Measures" in this presentation for a descr iption of this measure 30 Six Months Ended June 30, ($ millions) 2026 2025 Net Cash Provided from Operating Activities $245 $251 Property additions (12) (14) Free Cash Flow* $233 $237