Virgin Media 2008 Annual Report Download - page 99

VIRGIN MEDIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year ended December 31,
2008 2007 2006
Operating activities
Net loss ....................................................... £(913.8) £ (463.5) £ (533.9)
Cumulative effect of changes in accounting principle .......................... — — 32.6
Income from discontinued operations .................................... — — (7.9)
Loss from continuing operations ....................................... (913.8) (463.5) (509.2)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization ....................................... 1,202.0 1,238.2 1,045.7
Goodwill and intangible asset impairments ............................... 417.0 — —
Non-cash interest ............................................... (52.7) 2.7 99.1
Non-cash compensation ........................................... 16.8 17.5 36.7
Loss (income) from equity accounted investments, net of dividends received .......... 10.7 (10.8) (9.5)
Income taxes .................................................. (2.3) 14.3 (14.8)
Amortization of original issue discount and deferred financing costs ............... 24.4 23.1 32.4
Unrealized foreign currency losses (gains) ................................ 371.6 (2.7) 46.5
Loss on extinguishment of debt ...................................... 9.6 3.2 32.8
Unrealized (gains) losses on derivative instruments .......................... (278.1) 2.5 (1.3)
Gain on disposal of investments ...................................... — (8.1) —
(Gain) loss on disposal of assets ...................................... (0.1) 18.8 (1.7)
Minority interest ................................................ 0.7 — (1.0)
Changes in operating assets and liabilities, net of effect from business acquisitions and
dispositions:
Marketable securities ............................................. — — 96.9
Accounts receivable .............................................. (1.2) 4.6 (69.7)
Inventory .................................................... (12.8) (10.2) (22.0)
Prepaid expenses and other current assets ................................ (13.0) 8.6 (22.4)
Other assets ................................................... (11.0) 4.2 (3.6)
Accounts payable ............................................... (0.9) (0.8) 27.6
Deferred revenue (current) ......................................... 17.8 (17.4) 11.0
Accrued expenses and other current liabilities ............................. (34.3) (103.9) 35.6
Deferred revenue and other long term liabilities ............................ 5.2 (4.3) (23.0)
Net cash provided by operating activities ............................... 755.6 716.0 786.1
Investing activities
Purchase of fixed and intangible assets .................................. (479.7) (536.2) (554.8)
Principal repayments on loans to equity investments ......................... 8.6 16.4 15.7
Proceeds from the sale of fixed assets .................................. 2.1 3.3 2.4
Proceeds from sale of investments ..................................... — 9.8 —
Purchase of investments ........................................... (1.5) (2.0) —
Acquisitions, net of cash acquired ..................................... — (1.0) (2,423.1)
(Increase) decrease in restricted cash ................................... — (0.1) 5.8
Net cash used in investing activities .................................. (470.5) (509.8) (2,954.0)
Financing activities
New borrowings, net of financing fees .................................. 447.7 874.5 8,935.6
Proceeds from employee stock option exercises ............................ 0.6 15.0 38.7
Principal payments on long term debt and capital leases ....................... (846.3) (1,170.8) (7,100.6)
Dividends paid ................................................. (29.3) (21.2) (8.5)
Net cash (used in) provided by financing activities ......................... (427.3) (302.5) 1,865.2
Effect of exchange rate changes on cash and cash equivalents ..................... 2.4 (0.8) (14.0)
Decrease in cash and cash equivalents .................................... (139.8) (97.1) (316.7)
Cash and cash equivalents at beginning of year .............................. 321.4 418.5 735.2
Cash and cash equivalents at end of year .................................. £ 181.6 £ 321.4 £ 418.5
Supplemental disclosure of cash flow information
Cash paid during the year for interest exclusive of amounts capitalized ............... £ 515.8 £ 486.9 £ 327.1
Income taxes paid ................................................ 0.1 0.6 7.7
See accompanying notes.
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