Classmates.com 2006 Annual Report Download - page 70

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UNITED ONLINE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
The accompanying notes are an integral part of these consolidated financial statements.
F- 8
Year Ended December 31,
2006
2005
2004
Cash flows from operating activities:
Net income
$
42,272
$
47,127
$
117,480
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
38,930
37,280
29,151
Stock
-
based compensation
19,168
9,952
2,449
Impairment of goodwill, intangible assets and long
-
lived assets
13,285
—
—
Deferred taxes
(3,609
)
1,577
(61,478
)
Tax benefits from stock options
5,781
15,170
25,156
Excess tax benefits from stock
-
based compensation
(3,863
)
—
—
Cumulative effect of accounting change, net of tax
(1,041
)
—
—
Other
3,023
748
1,005
Changes in operating assets and liabilities (excluding the
effects of acquisitions):
Accounts receivable
(3,296
)
(1,669
)
220
Other assets
844
1,806
(4,122
)
Accounts payable and accrued liabilities
(11,211
)
17,677
11,356
Member redemption liability
2,315
—
—
Deferred revenue
(999
)
5,181
848
Other liabilities
(129
)
2,198
1,895
Net cash provided by operating activities
101,470
137,047
123,960
Cash flows from investing activities:
Purchases of property and equipment
(24,329
)
(21,653
)
(12,510
)
Purchases of rights, patents and trademarks
(509
)
(5,562
)
(926
)
Purchases of short
-
term investments
(324,328
)
(320,869
)
(329,083
)
Proceeds from maturities and sales of short
-
term investments
325,180
353,333
344,519
Cash paid for acquisitions, net of cash acquired
(61,155
)
(8,638
)
(110,102
)
Payment for settlement of pre
-
acquisition liability
(4,800
)
—
—
Proceeds from sales of assets, net
104
—
92
Net cash used for investing activities
(89,837
)
(3,389
)
(108,010
)
Cash flows from financing activities:
Proceeds from term loan and line of credit, net
—
—
107,569
Payments on term loan
(54,209
)
(45,792
)
—
Repayment of line of credit
—
—
(
10,300
)
Payments on capital leases
(668
)
(621
)
(166
)
Proceeds from exercises of stock options
9,452
5,874
6,015
Proceeds from employee stock purchase plan
5,004
3,169
3,045
Repurchases of common stock
(2,684
)
(14,206
)
(74,509
)
Payments for dividends
(53,483
)
(38,067
)
—
Excess tax benefits from stock
-
based compensation
3,863
—
—
Net cash provided by (used for) financing activities
(92,725
)
(89,643
)
31,654
Effect of exchange rate changes on cash and cash equivalents
(53
)
(130
)
—
Change in cash and cash equivalents
(81,145
)
43,885
47,604
Cash and cash equivalents, beginning of period
100,397
56,512
8,908
Cash and cash equivalents, end of period
$
19,252
$
100,397
$
56,512
Supplemental disclosure of cash flows:
Cash paid for interest
$
862
$
4,245
$
9
Cash paid for income taxes
34,352
13,970
2,851
Supplemental disclosure of non
-
cash investing and financing activities:
Reduction in goodwill and intangibles in connection with the release of the
deferred tax valuation allowance
—
—
20,782
Issuance of common stock and options assumed for acquisitions
—
—
2,880