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101
CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2014
(in thousands) Outerwall Inc.
Combined
Guarantor
Subsidiaries
Combined Non-
Guarantor
Subsidiaries
Eliminations
and
Consolidation
Reclassifications Total
Operating Activities:
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 106,618 $ 104,829 $ (14,378) $ (90,451) $ 106,618
Adjustments to reconcile net income to net cash flows
from operating activities:
Depreciation and other . . . . . . . . . . . . . . . . . . . . . 35,139 150,904 9,119 — 195,162
Amortization of intangible assets . . . . . . . . . . . . . 1,433 13,259 — — 14,692
Share-based payments expense . . . . . . . . . . . . . . 9,693 3,691 — — 13,384
Windfall excess tax benefits related to share-
based payments. . . . . . . . . . . . . . . . . . . . . . . . . . . (1,964) — — — (1,964)
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . 304 (17,232) (5,683) — (22,611)
Loss from equity method investments, net. . . . . . 530 28,204 — — 28,734
Amortization of deferred financing fees and debt
discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,116———4,116
Loss from early extinguishment of debt. . . . . . . . 2,018———2,018
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,250) (548) 48 — (1,750)
Equity in (income) losses of subsidiaries . . . . . . . (104,829) 14,378 — 90,451 —
Cash flows from changes in operating assets and
liabilities:
Accounts receivable, net. . . . . . . . . . . . . . . . . . . . (1,130) 8,787 1,014 — 8,671
Content library . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 20,206 (495) — 19,747
Prepaid expenses and other current assets . . . . . . 40,826 3,753 (297) — 44,282
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 1,558 69 — 1,702
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . (3,017) (65,737) (158) — (68,912)
Accrued payable to retailers . . . . . . . . . . . . . . . . . (1,896) (5,149) 198 — (6,847)
Other accrued liabilities . . . . . . . . . . . . . . . . . . . . (840) 1,988 161 — 1,309
Net cash flows from (used in) operating
activities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,862 262,891 (10,402) — 338,351
Investing Activities:
Purchases of property and equipment . . . . . . . . . . . . . . (33,602) (57,909) (6,413) — (97,924)
Proceeds from sale of property and equipment . . . . . . . 750 1,227 — — 1,977
Cash paid for equity investments . . . . . . . . . . . . . . . . . — (24,500) — — (24,500)
Extinguishment payment received from equity
investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5,000 — — 5,000
Investments in and advances to affiliates . . . . . . . . . . . 166,145 (178,406) 12,261 — —
Net cash flows from (used in) investing
activities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133,293 (254,588) 5,848 — (115,447)
Financing Activities:
Proceeds from issuance of senior unsecured notes . . . . 295,500———295,500
Proceeds from new borrowing of Credit Facility . . . . . 642,000———642,000
Principal payments on Credit Facility . . . . . . . . . . . . . . (680,125) — — — (680,125)
Financing costs associated with Credit Facility and
senior unsecured notes. . . . . . . . . . . . . . . . . . . . . . . . . . (2,911) — — — (2,911)
Settlement and conversion of convertible debt . . . . . . . (51,149) — — — (51,149)
Repurchases of common stock . . . . . . . . . . . . . . . . . . . (545,091) — — — (545,091)
Principal payments on capital lease obligations and
other debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,552) (3) (441) — (13,996)
Windfall excess tax benefits related to share-based
payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,964———1,964
Withholding tax paid on vesting of restricted stock net
of proceeds from exercise of stock options . . . . . . . . . . (520) — — — (520)
Net cash flows from (used in) financing
activities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (353,884) (3) (441) — (354,328)