Virgin Media 2008 Annual Report Download - page 166

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year ended December 31,
2008 2007 2006
Operating activities
Net loss ....................................................... £(972.7) £ (467.3) £ (372.3)
Cumulative effect of changes in accounting principles .......................... — — 31.7
Loss before cumulative effect of changes in accounting principles .................. (972.7) (467.3) (340.6)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization ....................................... 1,179.2 1,208.5 869.3
Goodwill and intangible asset impairments ............................... 417.0 — —
Non-cash interest ............................................... (58.6) 4.1 115.9
Non-cash compensation ........................................... 13.2 14.0 14.3
Loss on extinguishment of debt ...................................... 9.6 3.2 32.8
Loss (income) from equity accounted investments, net of dividends received .......... 10.7 (10.8) (5.8)
Income taxes .................................................. (2.2) 14.9 (3.0)
(Gain) loss on disposal of assets ...................................... (0.3) 18.7 (1.7)
Amortization of original issue discount and deferred financing costs ............... 23.5 23.1 17.2
Unrealized foreign currency losses ..................................... 414.0 10.2 30.4
Unrealized (gains) losses on derivative instruments .......................... (278.1) 2.5 (1.7)
Gain on disposal of investments ...................................... — (8.1) —
Minority interest ................................................ 0.7 — (1.0)
Changes in operating assets and liabilities, net of effect from business acquisitions and
dispositions:
Accounts receivable .............................................. (5.8) 2.9 (78.3)
Inventory .................................................... (12.8) (10.2) (4.6)
Prepaid expenses and other current assets ................................ (13.2) 10.0 (13.4)
Other assets ................................................... (11.0) 4.2 3.3
Accounts payable ............................................... (1.0) (0.8) 6.3
Accrued expenses and other current liabilities ............................. (38.8) (107.2) 89.3
Deferred revenue (current) ......................................... 19.2 (17.4) (1.0)
Deferred revenue and other long term liabilities ............................ 4.0 5.2 (14.7)
Net cash provided by operating activities .................................. 696.6 699.7 713.0
Investing activities
Purchase of fixed and intangible assets .................................. (472.3) (530.3) (494.2)
Investments in and loans to parent and subsidiary companies .................... 522.1 26.6 (20.7)
(Increase) decrease in restricted cash ................................... — (0.2) 1.7
Principal repayments on loans to equity investments ......................... 8.6 16.4 15.7
Proceeds from sale of fixed assets ..................................... 2.1 3.3 1.5
Proceeds from sale of investments ..................................... — 9.8 —
Purchase of investments ........................................... (1.5) (2.0) —
Acquisitions, net of cash acquired ..................................... — (1.0) (4,410.9)
Net cash provided by (used in) investing activities ........................... 59.0 (477.4) (4,906.9)
Financing activities
New borrowings, net of financing fees .................................. (49.0) 874.5 5,168.3
Principal payments on long term debt and capital leases ....................... (846.3) (1,170.8) (3,299.1)
Issuance of shares ............................................... — — 2,420.6
Net cash (used in) provided by financing activities .......................... (895.3) (296.3) 4,289.8
Effect of exchange rate changes on cash and cash equivalents ..................... 0.4 — —
(Decrease) increase in cash and cash equivalents ............................. (139.3) (74.0) 95.9
Cash and cash equivalents at beginning of year .............................. 310.0 384.0 288.1
Cash and cash equivalents at end of year .................................. £ 170.7 £ 310.0 £ 384.0
Supplemental disclosure of cash flow information
Cash paid during the year for interest exclusive of amounts capitalized ............... £ 391.8 £ 391.4 £ 192.9
Income taxes paid ................................................ £ — £ — £ 4.6
See accompanying notes.
F-72