Classmates.com 2003 Annual Report Download - page 47

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The accompanying notes are an integral part of these consolidated financial statements.
F-7
1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENT
ACCOUNTING PRONOUNCEMENTS
Description of Business
United Online, Inc. ("United Online" or the "Company") is the nation's leading provider of value-priced Internet access services. The
Company's access services, currently offered through the NetZero, Juno and BlueLight Internet brands, are available in more than 6,500 cities
across the United States and Canada. In addition, the Company offers marketers numerous online advertising products as well as online market
Impairment of goodwill and intangible assets — — —
48,622
Other
621
866
275
151
Changes in operating assets and liabilities (excluding the effects of
acquisitions):
Restricted cash
811
5,374
9,592
(5,861
)
Accounts receivable
(1,645
)
(2,832
)
3,730
5,671
Other assets
(3,991
)
(1,324
)
6,948
(4,555
)
Accounts payable and accrued liabilities
5,302
6,678
(20,103
)
6,460
Deferred revenue
1,023
3,757
3,885
3,534
Net cash provided by (used for) operating activities
47,892
65,106
(4,553
)
(98,217
)
Cash flows from investing activities:
Purchases of property and equipment
(5,075
)
(5,983
)
(1,465
)
(5,276
)
Purchases of patent rights — — (
18
)
(486
)
Purchases of short-term investments
(74,982
)
(45,522
)
(97,026
)
(163,229
)
Proceeds from maturities of short
-
term investments
46,947
38,600
58,491
141,353
Proceeds from sales of assets, net
—
—
1,011
—
Proceeds from sale of cost-basis investment —
750
— —
Cash paid for acquisitions, net of cash acquired — (
8,388
)
32,496
(7,721
)
Net cash used for investing activities
(33,110
)
(20,543
)
(6,511
)
(35,359
)
Cash flows from financing activities:
Payments on capital leases
(34
)
(2,968
)
(5,197
)
(6,662
)
Payments on notes payable — — (
2,143
)
(1,641
)
Repayment of notes receivable from stockholders —
1,653
6
—
Proceeds from exercises of stock options
8,971
6,962
2,930
84
Proceeds from employee stock purchase plan
1,679
1,862
516
431
Repurchases of common stock and option shares exercised
(40,002
)
(7,777
)
(3,592
)
(61
)
Net cash used for financing activities
(29,386
)
(268
)
(7,480
)
(7,849
)
Change in cash and cash equivalents
(14,604
)
44,295
(18,544
)
(141,425
)
Cash and cash equivalents, beginning of period
85,838
41,543
60,087
201,512
Cash and cash equivalents, end of period $
71,234
$
85,838
$
41,543
$
60,087
Supplemental disclosure of cash flows:
Cash paid for interest $
1
$
86
$
547
$
1,416
Cash paid for income taxes
250
225
— —
Supplemental disclosure of non
-
cash investing and financing activities:
Stock option tax benefits recognized in connection with the release of the
deferred tax valuation allowance $
15,006
$
3,720
$ — $ —
Reduction in goodwill in connection with the release of the deferred tax
valuation allowance
1,399
— — —
Notes receivable from stockholders in connection with the exercise of stock
options
—
—
700
—
Issuance of common stock and options assumed for acquisitions
—
—
81,266
49,802