NetSpend 2013 Annual Report Download - page 37

Consolidated Statements of Cash Flows
Years Ended December 31,
(in thousands) 2013 2012 2011
Cash flows from operating activities:
Net income ................................................................ $ 256,597 249,923 222,662
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization .............................................. 205,351 170,610 169,165
Deferred income tax expense ............................................... 26,945 285 1,491
Share-based compensation ................................................ 28,933 18,621 16,477
Dividends received from equity investments .................................. 8,595 7,524 6,835
Charges for transaction processing provisions ................................. 7,458 2,803 4,750
Amortization of debt issuance costs ......................................... 7,269 298 160
Asset impairments ........................................................ —— 799
Provisions for fraud and other losses ......................................... 11,912 ——
Provisions for bad debt expenses and billing adjustments ....................... 2,000 1,054 1,552
(Gain) Loss on disposal of equipment, net .................................... (79) 324 (1,159)
Amortization of bond discount .............................................. 225 ——
Loss on foreign currency ................................................... 1,027 2,012 3,091
Changes in value of private equity investments ................................ (966) (898) —
Excess tax expense (benefit) from share-based compensation .................... (3,528) (1,259) 523
Equity in income of equity investments ....................................... (13,047) (10,171) (8,708)
Changes in operating assets and liabilities:
Accounts payable ....................................................... (52,042) 37,206 (15,512)
Accounts receivable ..................................................... (8,667) 2,855 (7,044)
Prepaid expenses, other current assets and other long-term assets .............. (571) (2,945) 23,099
Accrued salaries and employee benefits .................................... (403) (7,083) 4,492
Other current liabilities and other long-term liabilities ......................... (24,611) (15,406) 13,646
Net cash provided by operating activities ................................... 452,398 455,753 436,319
Cash flows from investing activities:
Cash used in acquisitions, net of cash acquired .................................. (1,314,660) (188,698) (47,909)
Additions to contract acquisition costs ......................................... (55,965) (34,384) (31,623)
Additions to licensed computer software from vendors ........................... (63,635) (33,001) (19,502)
Purchases of property and equipment ......................................... (40,598) (31,395) (26,938)
Additions to internally developed computer software ............................. (33,600) (19,285) (17,882)
Purchase of private equity investments ......................................... (1,378) (3,031) (1,573)
Subsidiary repurchase of noncontrolling interests ................................ —— (493)
Proceeds from sale of trade name ............................................. —— 4,500
Net cash used in investing activities ........................................ (1,509,836) (309,794) (141,420)
Cash flows from financing activities:
Proceeds from long-term borrowings .......................................... 1,395,661 150,000 —
Proceeds from exercise of stock options ........................................ 40,691 9,672 8,065
Excess tax expense (benefit) from share-based compensation ...................... 3,528 1,259 (523)
Subsidiary dividends paid to noncontrolling shareholders ......................... (7,321) (2,797) (433)
Repurchase of common stock ................................................ (103,857) (74,939) (121,271)
Debt issuance costs ......................................................... (13,573) (2,073) —
Dividends paid on common stock ............................................. (56,510) (94,035) (53,949)
Principal payments on long-term borrowings and capital lease obligations ........... (166,805) (200,052) (28,892)
Purchase of noncontrolling interest ............................................ —— (174,050)
Net cash provided by (used in) financing activities ............................ 1,091,814 (212,965) (371,053)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents ..................... (3,758) (1,719) (2,304)
Net increase (decrease) in cash and cash equivalents ............................. 30,618 (68,725) (78,458)
Cash and cash equivalents at beginning of period ............................... 247,612 316,337 394,795
Cash and cash equivalents at end of period ..................................... $ 278,230 247,612 316,337
Supplemental cash flow information:
Interest paid ............................................................... $ 23,157 2,952 3,088
Income taxes paid, net ...................................................... $ 80,033 106,778 82,084
See accompanying Notes to Consolidated Financial Statements
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