Virgin Media 2011 Annual Report Download - page 94

VIRGIN MEDIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year ended December 31,
2011 2010 2009
Operating activities:
Net income (loss) ..................................................................... £ 75.9 £ (141.4) £ (357.8)
Loss (income) from discontinued operations ................................................ 1.2 (27.8) 7.5
Income (loss) from continuing operations .................................................. 77.1 (169.2) (350.3)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by
operating activities:
Depreciation and amortization ....................................................... 1,041.6 1,135.3 1,171.8
Goodwill and intangible asset impairments ............................................. 0.0 0.0 4.7
Non-cash interest ................................................................. 10.5 40.1 51.3
Non-cash compensation ............................................................ 22.5 29.4 19.4
Loss on extinguishment of debt, net of prepayment premiums .............................. 31.7 70.1 53.6
Income from equity accounted investments, net of dividends received ....................... (0.6) (9.3) (12.4)
Unrealized losses on derivative instruments ............................................ 12.8 133.8 133.4
Foreign currency losses (gains) ...................................................... 0.9 (89.3) (158.8)
Loss on disposal of equity investments ................................................ 7.2 0.0 0.0
Income taxes .................................................................... 19.6 (101.1) 2.8
Other .......................................................................... 7.0 0.5 1.2
Changes in operating assets and liabilities, net of effect from business disposals:
Accounts receivable ............................................................... (4.4) (28.4) 27.5
Inventory ....................................................................... 13.3 (13.5) (0.3)
Prepaid expenses and other current assets .............................................. 12.0 6.3 (2.7)
Other assets ..................................................................... 2.0 (2.0) (14.9)
Accounts payable ................................................................. 8.3 4.5 (15.0)
Deferred revenue (current) .......................................................... 10.1 18.9 17.8
Accrued expenses and other current liabilities .......................................... (82.5) 18.9 (30.1)
Deferred revenue and other long term liabilities ......................................... (40.0) (7.4) (5.5)
Net cash provided by operating activities .......................................... 1,149.1 1,037.6 893.5
Investing activities:
Purchase of fixed and intangible assets ................................................ (656.7) (628.4) (568.0)
Proceeds from sale of fixed assets .................................................... 2.2 36.0 4.2
Principal repayments on loans to equity investments ..................................... 108.2 8.4 12.5
Acquisitions, net of cash acquired .................................................... (14.6) 0.0 0.0
Disposal of equity investments, net ................................................... 243.4 0.0 0.0
Disposal of businesses, net .......................................................... 0.0 167.4 (17.5)
Other .......................................................................... 2.8 5.2 (2.5)
Net cash used in investing activities .............................................. (314.7) (411.4) (571.3)
Financing activities:
New borrowings, net of financing fees ................................................ 977.0 3,072.0 1,610.2
Repurchase of common stock ....................................................... (635.0) (161.5) 0.0
Purchase of conversion hedges ...................................................... 0.0 (205.4) 0.0
Proceeds from employee stock option exercises ......................................... 17.5 17.0 2.5
Principal payments on long term debt ................................................. (1,315.8) (3,186.6) (1,695.0)
Principal payments on capital leases .................................................. (79.2) (53.2) (42.4)
Proceeds from settlement of cross currency interest rate swaps ............................. 65.5 0.0 0.0
Realized gain on derivatives ........................................................ 0.0 0.0 88.3
Dividends paid ................................................................... (31.1) (34.1) (33.3)
Net cash used in financing activities .............................................. (1,001.1) (551.8) (69.7)
Cash flow from discontinued operations:
Net cash used in operating activities .................................................. (10.4) (30.1) (0.8)
Net cash used in investing activities .................................................. 0.0 0.0 (1.0)
Net cash used in discontinued operations .......................................... (10.4) (30.1) (1.8)
Effect of exchange rate changes on cash and cash equivalents .................................. (2.0) 4.7 (1.8)
(Decrease) increase in cash and cash equivalents ............................................ (179.1) 49.0 248.9
Cash and cash equivalents, beginning of period ............................................. 479.5 430.5 181.6
Cash and cash equivalents, end of period .................................................. £ 300.4 £ 479.5 £ 430.5
Supplemental disclosure of cash flow information
Cash paid during the period for interest exclusive of amounts capitalized ......................... £ 435.2 £ 438.8 £ 404.2
Income taxes paid .................................................................... 2.3 1.2 0.1
See accompanying notes.
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