Rosetta Stone 2010 Annual Report Download - page 80
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Table of Contents
ROSETTA STONE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2010 2009 2008
Cash Flows From Operating Activities:
Net income $ 13,284 $ 13,363 $ 13,892
Adjustments to reconcile net income to cash provided by operating activities, net of business acquisitions
Stock-based compensation expense 4,387 22,150 1,590
Bad debt expense 1,750 911 1,611
Depreciation and amortization 6,615 5,428 7,075
Amortization of deferred financing costs — 209 104
Gain on embedded derivative — — (4)
Deferred income tax benefit (6,057) (2,475) (2,177)
Loss on disposal of equipment 37 42 17
Net change in:
Restricted cash (30) (16) 359
Accounts receivable (12,260) (11,779) (16,494)
Inventory (935) (3,916) (1,092)
Prepaid expenses and other current assets (236) (1,006) (1,041)
Other assets (761) (429) (91)
Accounts payable 5,987 (1,604) (1,430)
Accrued compensation (16) 1,905 3,933
Other current liabilities 6,106 5,678 7,393
Income tax payable (5,028) 3,188 925
Excess tax benefit from stock options exercised (1,377) (336) (246)
Other long-term liabilities (789) (463) 963
Deferred revenue 21,029 10,300 3,051
Net cash provided by operating activities 31,706 41,150 18,338
Cash Flows From Investing Activities:
Purchases of property and equipment (8,256) (8,455) (7,019)
Purchases of available-for-sale securities (6,410) — —
Acquisition, net of cash acquired (225) (100) —
Net cash used in investing activities (14,891) (8,555) (7,019)
Cash Flows From Financing Activities:
Proceeds from common stock issuance, net of issuance costs — 49,037 —
Proceeds from the exercise of stock options 2,387 473 365
Tax benefit of stock options exercised 1,377 336 246
Costs incurred for intended initial public offering — — (1,801)
Payment of payroll taxes on net common stock issuance — (7,887) —
Payment of payroll taxes on stock options exercised — (89) —
Proceeds from long-term debt — 9,929 —
Principal payments under long-term debt — (19,839) (3,402)
Payments under capital lease obligations and acquisition liabilities (367) (3) (12)
Net cash provided by (used in) financing activities 3,397 31,957 (4,604)
Increase in cash and cash equivalents 20,212 64,552 6,715
Effect of exchange rate changes in cash and cash equivalents 356 10 2,220
Net increase in cash and cash equivalents 20,568 64,562 8,935
Cash and cash equivalents—beginning of year 95,188 30,626 21,691
Cash and cash equivalents—end of year $ 115,756 $ 95,188 $ 30,626
Supplemental Cash Flow Disclosure:
Cash paid during the periods for:
Interest $ 66 $ 104 $ 936
Income taxes, net $ 9,989 $ 6,364 $ 14,642
Noncash financing and investing activities:
Accrued liability for purchase of property , equipment and intangibles $ 1,567 $ 546 $ 1,076