NetSpend 2014 Annual Report Download - page 44

Consolidated Statements of Cash Flows
Years Ended December 31,
(in thousands) 2014 2013 2012
Cash flows from operating activities:
Net income ................................................................ $ 329,406 256,597 249,923
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization .............................................. 248,018 205,351 170,610
Provisions for fraud and other losses ......................................... 38,381 11,912 —
Share-based compensation ................................................. 30,790 28,933 18,621
Charges for transaction processing provisions ................................. 9,468 7,458 2,803
Dividends received from equity investments ................................... 9,189 8,595 7,524
Provisions for bad debt expenses and billing adjustments ....................... 2,823 2,000 1,054
Amortization of debt issuance costs .......................................... 1,817 7,269 298
Loss on foreign currency ................................................... 999 1,027 2,012
Amortization of bond discount .............................................. 383 225 —
(Gain) Loss on disposal of equipment, net .................................... (293) (79) 324
Changes in value of private equity investments ................................ (793) (966) (898)
Excess tax benefit from share-based payment arrangements ..................... (7,185) (3,528) (1,259)
Deferred income tax (benefit) expense ....................................... (8,963) 26,945 285
Equity in income of equity investments ....................................... (17,583) (13,047) (10,171)
Gain on disposal of subsidiaries ............................................. (86,961) ——
Changes in operating assets and liabilities:
Accounts receivable ..................................................... (33,406) (8,667) 2,855
Prepaid expenses, other current assets and other long-term assets .............. (10,525) (571) (2,945)
Accrued salaries and employee benefits .................................... 414 (403) (7,083)
Accounts payable ....................................................... 8,765 (52,042) 37,206
Other current liabilities and other long-term liabilities ......................... 45,457 (24,611) (15,406)
Net cash provided by operating activities ................................ 560,201 452,398 455,753
Cash flows from investing activities:
Additions to contract acquisition costs ......................................... (88,871) (55,965) (34,384)
Purchases of property and equipment .......................................... (75,913) (40,598) (31,395)
Additions to internally developed computer software ............................. (41,501) (33,600) (19,285)
Cash used in acquisitions, net of cash acquired .................................. (38,584) (1,314,660) (188,698)
Additions to licensed computer software from vendors ........................... (29,638) (63,635) (33,001)
Purchase of private equity investments ......................................... (3,291) (1,378) (3,031)
Proceeds from insurance recovery for loss on disposal ............................ 6,212 ——
Proceeds from dispositions, net of expenses paid and cash disposed ................ 44,979 ——
Net cash used in investing activities ...................................... (226,607) (1,509,836) (309,794)
Cash flows from financing activities:
Repurchase of common stock under plans and tax withholding ..................... (170,516) (103,857) (74,939)
Dividends paid on common stock ............................................. (74,796) (56,510) (94,035)
Principal payments on long-term borrowings and capital lease obligations ........... (69,939) (166,805) (200,052)
Purchase of noncontrolling interests ........................................... (37,500) ——
Subsidiary dividends paid to noncontrolling shareholders ......................... (7,172) (7,321) (2,797)
Debt issuance costs ......................................................... —(13,573) (2,073)
Proceeds from long-term borrowings .......................................... 1,396 1,395,661 150,000
Excess tax benefit from share-based payment arrangements ....................... 7,185 3,528 1,259
Proceeds from exercise of stock options ........................................ 34,869 40,691 9,672
Net cash (used in) provided by financing activities ......................... (316,473) 1,091,814 (212,965)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents ..................... (6,168) (3,758) (1,719)
Net increase (decrease) in cash and cash equivalents ............................. 10,953 30,618 (68,725)
Cash and cash equivalents at beginning of period ................................ 278,230 247,612 316,337
Cash and cash equivalents at end of period ..................................... 289,183 278,230 247,612
Less cash and cash equivalents of discontinued operations at end of period .......... —(30,530) (23,353)
Cash and cash equivalents of continued operations at end of period ................ $ 289,183 247,700 224,259
Supplemental cash flow information:
Interest paid ............................................................... $ 40,969 23,157 2,952
Income taxes paid, net ...................................................... $ 135,770 80,033 106,778
See accompanying Notes to Consolidated Financial Statements
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