MoneyGram 2004 Annual Report Download - page 51

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Table of Contents
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2004 2003 2002
(Dollars in thousands)
Cash flows from operating activities
Net income $ 86,412 $ 113,902 $ 57,886
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net earnings in discontinued operations (21,283) (37,027) (16,878)
Depreciation and amortization 29,567 27,295 25,894
Investment impairment charges 15,932 27,917 25,777
Provision for deferred income taxes 6,282 (14,416) (11,050)
Net gain on sale of investments (25,539) (23,039) (16,500)
Debt redemption and retirement costs 20,661 — —
Net amortization of investment premium 19,070 38,242 (4,351)
Asset impairments and adjustments 6,590 4,275 3,100
Provision for uncollectible receivables 6,422 3,987 5,932
Non-cash compensation expense 1,934 1,378 1,103
Other non-cash items, net 2,817 5,695 (30,158)
Changes in foreign currency translation adjustments 1,807 2,848 1,564
Loss on sale of property and equipment 1,603 373 987
Changes in assets and liabilities:
Other assets 27,381 (5,745) 5,917
Accounts payable and other liabilities (5,522) 29,724 52,045
Total adjustments 87,722 61,507 43,382
Change in cash and cash equivalents (substantially restricted) 75,937 286,364 (554,374)
Change in receivables, net (substantially restricted) (22,654) (243,789) 166,439
Change in payment service obligations 219,100 (404,474) 1,176,233
Net cash provided by (used in) continuing operating activities 446,517 (186,490) 889,566
Cash flows from investing activities
Proceeds from sales of investments classified as available-for-sale 1,053,128 1,660,238 1,345,821
Proceeds from maturities of investments classified as available-for-sale 1,798,767 3,410,855 1,148,417
Proceeds from maturities of investment securities classified as held-to-maturity — 283,690 745,387
Purchases of investments classified as available-for-sale (3,098,498) (4,888,918) (3,341,956)
Purchase of investments classified as held-to-maturity — — (775,670)
Purchases of property and equipment (29,589) (27,128) (26,842)
Cash paid for acquisition of MoneyGram International Limited — (105,080) —
Proceeds from the sale of Game Financial Corporation, net of cash sold 15,247 — —
Other investing activities 428 (1,341) (1,420)
Net cash provided by (used in) investing activities (260,517) 332,316 (906,263)
Cash flows from financing activities
Payments on debt (205,182) (105,738) (44,230)
Proceeds from debt 100,000 — —
Net change in revolver 50,000 (5,000) 6,543
Proceeds from exercise of options 1,693 3,745 10,372
Preferred stock redemption (23,895) — —
Purchase of treasury stock (16,181) (976) (28,309)
Cash dividends paid (17,409) (31,603) (32,149)
Net cash used in financing activities (110,974) (139,572) (87,773)
Net cash provided by (used in) discontinued operations (108,858) (11,547) 108,555
Net (decrease) increase in cash and cash equivalents (33,832) (5,293) 4,085
Cash and cash equivalents — beginning of period 33,832 39,125 35,040
Cash and cash equivalents — end of period $ — $ 33,832 $ 39,125
See Notes to Consolidated Financial Statements
F-7