Memorex 2011 Annual Report Download - page 34

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Cash Flows (used in) provided by Investing Activities:
Years Ended December 31,
2011 2010 2009
(In millions)
Capital expenditures .......................................................... $ (7.3) $ (8.3) $(11.0)
License agreement ........................................................... — (5.0) —
Acquisitions, net of cash acquired ................................................ (47.0) — —
Proceeds from sale of assets .................................................... — 0.2 13.0
Net cash (used in) provided by investing activities .................................. $(54.3) $(13.1) $ 2.0
In 2011, we paid $47.0 million related to the acquisitions of certain assets of MXI Security for $24.5 million, IronKey for
$19.0 million, Nine Technology for $2.0 million, Encryptx for $1.0 million and ProStor for $0.5 million. Cash used in investing
activities was also impacted by $7.3 million of capital expenditures. See Note 4 to the Consolidated Financial Statements for
further information regarding our acquisitions.
In 2010, we paid $5.0 million to extend our license agreement with ProStor Systems related to RDX removable hard disk
systems. The acquisition of certain ProStor assets in 2011 excluded the portion of the business to which this license relates.
In 2010, compared with 2009, capital expenditures decreased due to tenant improvements of $2.9 million in 2009 associated
with certain leased out office space in our Oakdale, Minnesota headquarters.
Proceeds from the sale of assets in 2009 included the sale of our Anaheim, California real estate which netted
$12.2 million of cash.
Cash Flows used in Financing Activities:
Years Ended December 31,
2011 2010 2009
(In millions)
Purchase of treasury stock ...................................................... $(9.7) $ — $ —
Exercise of stock options ....................................................... 0.6 — —
Debt issuance costs .......................................................... — (1.0) (3.2)
Net cash used in financing activities ............................................. $(9.1) $(1.0) $(3.2)
On January 28, 2008, the Board of Directors authorized a share repurchase program increasing the total outstanding
authorization to 3.0 million shares of common stock. During 2011 we repurchased 1.1 million shares. We did not repurchase
shares during 2010 or 2009. Since the inception of the program we have repurchased a total of 1.8 million shares at an
average price of $23.97 per share and 1.2 million shares remain outstanding under the authorization as of
December 31, 2011.
No dividends were declared or paid during 2011, 2010 or 2009. Any future dividends are at the discretion of and subject
to the approval of our Board of Directors.
Cash used in financing activities of $1.0 million and $3.2 million during 2010 and 2009, respectively, were due to cash
payments made to amend and extend our line of credit. These issuance costs were capitalized in our Consolidated Balance
Sheets.
On March 30, 2006, we entered into a credit agreement (the Credit Agreement) with a group of banks that were party to
our prior credit agreement. On August 3, 2010, the Credit Agreement was amended and restated to add Imation Europe B.V.
as a borrower (European Borrower), reduce the borrowing rate 50 basis points and extend the maturity one year, to March 29,
2013. While the amendment did not change the senior revolving credit facility amount of $200 million, it provides for sublimits
of $150 million in the United States and $50 million in Europe.
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