Virgin Media 2014 Annual Report Download - page 73

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71
Condensed Consolidated Statements of Cash Flows
Summary. Our condensed consolidated statements of cash flows for the six months ended June 30, 2014 and 2013 are
summarized as follows (in millions):
Successor Predecessor Combined
Six months
ended
June 30,
2014
Period
from June
8 to
June 30,
2013
Period
from
January 1
to June 7,
2013
Six months
ended
June 30,
2013 Change
Net cash provided (used) by operating activities................... £ 798.0 £ (50.0) £ 588.1 £ 538.1 £ 259.9
Net cash used by investing activities ..................................... (804.9)(2,328.9)(309.3)(2,638.2) 1,833.3
Net cash provided (used) by financing activities................... (216.5) 2,100.9 (38.9) 2,062.0 (2,278.5)
Effect of exchange rate changes on cash ............................... (2.2)(3.0) 0.9 (2.1)(0.1)
Net increase (decrease) in cash and cash equivalents........ £(225.6) £ (281.0) £ 240.8 £ (40.2) £ (185.4)
Operating Activities. The increase in net cash provided by our operating activities is primarily attributable to an increase in
the cash provided by our operating cash flow and related working capital items offset by a decrease in cash provided due to higher
net cash payments for interest.
Investing Activities. The decrease in net cash used by our investing activities is primarily attributable to (i) a decrease in cash
used to fund loans to subsidiaries of Liberty Global of £1,806.3 million and (ii) a decrease in cash used due to lower capital
expenditures of £37.8 million.
The capital expenditures that we report in our consolidated statements of cash flows do not include amounts that are financed
under vendor financing or capital lease arrangements. Instead, these amounts are reflected as non-cash additions to our property
and equipment when the underlying assets are delivered, and as repayments of debt when the principal is repaid. In the following
discussion, we refer to (i) our capital expenditures as reported in our consolidated statements of cash flows, which exclude amounts
financed under vendor financing or capital lease arrangements, and (ii) our total property and equipment additions, which include
our capital expenditures on an accrual basis and amounts financed under vendor financing or capital lease arrangements. A
reconciliation of our consolidated property and equipment additions to our consolidated capital expenditures as reported in the
condensed consolidated statements of cash flows is set forth below:
Six months ended
June 30,
2014 2013
in millions
Property and equipment additions............................................................................................................... £ 419.3 £ 448.4
Assets acquired under capital leases ........................................................................................................... (27.6)(60.3)
Assets acquired under capital-related vendor financing arrangements....................................................... (61.4) —
Changes in liabilities related to capital expenditures.................................................................................. (16.4)(36.4)
Capital expenditures ................................................................................................................................. £ 313.9 £ 351.7
The decrease in our property and equipment additions is primarily due to a decrease in expenditures for the purchase and
installation of customer premises equipment and scalable infrastructure.
Financing Activities. The change in net cash provided (used) by our financing activities is primarily attributable to the net
effect of (i) a decrease in cash due to the release of restricted cash in connection with the LG/VM Transaction of £2,313.6 million
during the 2013 period, (ii) a decrease in cash from a capital contribution of £2,290.6 million during the 2013 period, (iii) an