|CIMPRESS N.V. filed this Form 10-Q on 11/03/2017|
operational currency fluctuations provides further insight into our operating performance in addition to that provided by our GAAP operating income. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
During the first quarter of fiscal 2018, we included unlevered free cash as a non-GAAP financial measure, which management has begun using to assess the cash flow generation of the company. Unlevered free cash flow is defined as net cash provided by operating activities less purchases of property, plant and equipment, purchases of intangible assets not related to acquisitions, and capitalization of software and website development costs, plus payment of contingent consideration in excess of acquisition-date fair value, plus gains on proceeds from insurance, plus the cash paid during the period for interest, minus the interest expense associated with our Waltham, Massachusetts lease.
The table below sets forth operating income and adjusted net operating profit for each of the three months ended September 30, 2017 and 2016:
(1) Includes expense recognized for the change in fair value of contingent consideration and compensation expense related to cash-based earn-out mechanisms dependent upon continued employment.
(2) Includes the impact of the gain on the sale of Albumprinter, as well as a bargain purchase gain as defined by ASC 805-30 for an acquisition in which the identifiable assets acquired and liabilities assumed are greater than the consideration transferred, that was recognized in general and administrative expense in our consolidated statement of operations during the three months ended September 30, 2017.