Classmates.com 2008 Annual Report Download - page 103

Table of Contents
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,
2008 2007 2006
Cash flows from operating activities:
Net income (loss)
$
(94,657
)
$
57,777
$
42,272
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
39,773
32,950
38,930
Stock
-
based compensation
36,527
19,549
19,168
Provision for (benefit from) doubtful accounts receivable
2,322
1,323
(81
)
Impairment of goodwill, intangible assets and long
-
lived assets
176,150
—
13,285
Accretion of discounts and amortization of debt issue costs
1,470
—
—
Deferred taxes, net
(16,557
)
7,248
(3,609
)
Tax benefits from equity awards
(467
)
4,622
5,781
Excess tax benefits from equity awards
(295
)
(3,168
)
(3,863
)
Cumulative effect of accounting change, net of tax
—
—
(
1,041
)
Other
15
929
3,023
Changes in operating assets and liabilities (net of effects of acquisitions):
Accounts receivable
1,242
2,138
(3,215
)
Other assets
4,194
(9,018
)
844
Accounts payable and accrued liabilities
(2,688
)
(9,025
)
(11,211
)
Member redemption liability
1,415
4,572
2,315
Deferred revenue
12,201
11,430
(999
)
Other liabilities
3,404
5,898
(129
)
Net cash provided by operating activities
164,049
127,225
101,470
Cash flows from investing activities:
Purchases of property and equipment
(19,886
)
(25,509
)
(24,329
)
Purchases of rights, patents and trademarks
—
—
(
509
)
Purchases of short
-
term investments
(120,378
)
(228,920
)
(324,328
)
Proceeds from maturities of short
-
term investments
82,765
72,890
115,581
Proceeds from sales of short
-
term investments
106,364
229,994
209,599
Cash paid for acquisitions, net of cash acquired
(307,496
)
—
(
61,155
)
Payment for settlement of pre
-
acquisition liability
—
—
(
4,800
)
Proceeds from sales of assets, net
45
71
104
Net cash provided by (used for) investing activities
(258,586
)
48,526
(89,837
)
Cash flows from financing activities:
Proceeds from term loans and revolver
421,988
—
—
Payments on term loan and revolver
(313,718
)
—
(
54,209
)
Payments on capital leases
(13
)
(16
)
(668
)
Payments for debt issue costs
(249
)
—
—
Proceeds from exercises of stock options
1,668
8,605
9,452
Proceeds from employee stock purchase plan
3,754
5,413
5,004
Repurchases of common stock
(8,841
)
(5,601
)
(2,684
)
Payments for dividends
(53,060
)
(57,130
)
(53,483
)
Excess tax benefits from equity awards
295
3,168
3,863
Net cash provided by (used for) financing activities
51,824
(45,561
)
(92,725
)
Effect of foreign currency exchange rate changes on cash and cash equivalents
(2,280
)
65
(53
)
Change in cash and cash equivalents
(44,993
)
130,255
(81,145
)
Cash and cash equivalents, beginning of period
149,507
19,252
100,397
Cash and cash equivalents, end of period
$
104,514
$
149,507
$
19,252
Supplemental disclosure of cash flows:
Cash paid for interest
$
9,587
$
2
$
862
Cash paid for income taxes
$
36,350
$
34,855
$
34,352
Supplemental disclosure of non
-
cash investing and financing activities:
Reduction in goodwill in connection with a release of a portion of the valuation allowance for deferred tax assets
$
128
$
375
$
—
Issuance of common stock in connection with the acquisition of FTD (see Note 2)
$
126,151
$
—
$
—
Dividends payable on restricted stock units
$
385
$
—
$
—