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103
CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2013
(in thousands) Outerwall Inc.
Combined
Guarantor
Subsidiaries
Combined Non-
Guarantor
Subsidiaries
Eliminations
and
Consolidation
Reclassifications Total
Operating Activities:
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 174,792 $ 109,682 $ (11,037) $ (98,645) $ 174,792
Adjustments to reconcile net income to net cash flows
from operating activities:
Depreciation and other . . . . . . . . . . . . . . . . . . . . . 29,640 158,801 5,259 — 193,700
Amortization of intangible assets . . . . . . . . . . . . . 2,245 8,688 — — 10,933
Share-based payments expense . . . . . . . . . . . . . . 9,903 6,928 — — 16,831
Windfall excess tax benefits related to share-
based payments. . . . . . . . . . . . . . . . . . . . . . . . . . . (3,698) — — — (3,698)
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . 9,228 (15,727) (4,434) — (10,933)
Impairment Expense. . . . . . . . . . . . . . . . . . . . . . . 32,444 288 — — 32,732
Loss (income) from equity method investments,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (65,063) 45,135 — — (19,928)
Amortization of deferred financing fees and debt
discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,394———6,394
Loss from early extinguishment of debt. . . . . . . . 6,013———6,013
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 827 (2,951) 31 54 (2,039)
Equity in (income) losses of subsidiaries . . . . . . . (109,682) 11,037 — 98,645 —
Cash flows from changes in operating assets and
liabilities:
Accounts receivable, net. . . . . . . . . . . . . . . . . . . . (1,144) 10,639 (1,517) — 7,978
Content library . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,093 (23,357) (195) — (22,459)
Prepaid expenses and other current assets . . . . . . (43,762) (6,280) (500) — (50,542)
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 400 (371) — 230
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . 1,319 (408) 226 354 1,491
Accrued payable to retailers . . . . . . . . . . . . . . . . . (6,181) 1,633 460 — (4,088)
Other accrued liabilities . . . . . . . . . . . . . . . . . . . . 13,184 (22,751) (6) — (9,573)
Net cash flows from (used in) operating
activities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,753 281,757 (12,084) 408 327,834
Investing Activities:
Purchases of property and equipment . . . . . . . . . . . . . . (58,763) (88,431) (14,218) — (161,412)
Proceeds from sale of property and equipment . . . . . . . 12,147 1,189 8 — 13,344
Acquisition of ecoATM, net of cash acquired. . . . . . . . (244,036) — — — (244,036)
Receipt of note receivable principal . . . . . . . . . . . . . . . 22,913———22,913
Cash paid for equity investments . . . . . . . . . . . . . . . . . — (28,000) — — (28,000)
Investments in and advances to affiliates . . . . . . . . . . . 125,856 (156,659) 30,857 (54) —
Net cash flows from (used in) investing
activities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (141,883) (271,901) 16,647 (54) (397,191)
Financing Activities:
Proceeds from issuance of senior unsecured notes . . . . 343,769———343,769
Proceeds from new borrowing on Credit Facility . . . . . 400,000———400,000
Principal payments on Credit Facility . . . . . . . . . . . . . . (215,313) — — — (215,313)
Financing costs associated with Credit Facility and
senior unsecured notes. . . . . . . . . . . . . . . . . . . . . . . . . . (2,203) — — — (2,203)
Conversion of convertible debt . . . . . . . . . . . . . . . . . . . (172,211) — — — (172,211)
Repurchases of common stock . . . . . . . . . . . . . . . . . . . (195,004) — — — (195,004)
Principal payments on capital lease obligations and
other debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,200) (217) (417) — (14,834)
Windfall excess tax benefits related to share-based
payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,698———3,698
Withholding tax paid on vesting of restricted stock net
of proceeds from exercise of stock options . . . . . . . . . . 8,460———8,460
Net cash flows from (used in) financing
activities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,996 (217) (417) — 156,362