XM Radio 2015 Annual Report Download - page 78

As of December 31, 2015 and 2014, we had $111,838 and $147,724, respectively, of cash and
cash equivalents. The following table presents a summary of our cash flow activity for the periods
set forth below:
2015 2014 2013 2015 vs 2014 2014 vs 2013
For the Years Ended December 31,
Net cash provided by operating
activities . . . . . . . . . . . . . . . . . . . . $ 1,244,051 $ 1,253,244 $1,102,832 $ (9,193) $ 150,412
Net cash used in investing
activities . . . . . . . . . . . . . . . . . . . . (138,858) (96,324) (700,688) (42,534) 604,364
Net cash used in financing
activities . . . . . . . . . . . . . . . . . . . . (1,141,079) (1,144,001) (788,284) 2,922 (355,717)
Net (decrease) increase in
cash and cash equivalents . . . (35,886) 12,919 (386,140) (48,805) 399,059
Cash and cash equivalents at
beginning of period . . . . . . . . . . 147,724 134,805 520,945 12,919 (386,140)
Cash and cash equivalents at
end of period. . . . . . . . . . . . . . . . $ 111,838 $ 147,724 $ 134,805 $(35,886) $ 12,919
Cash Flows Provided by Operating Activities
Cash flows provided by operating activities decreased by $9,193 to $1,244,051 for the year
ended December 31, 2015 from $1,253,244 for the year ended December 31, 2014. Cash flows
provided by operating activities increased by $150,412 to $1,253,244 for the year ended December
31, 2014 from $1,102,832 for the year ended December 31, 2013.
Our largest source of cash provided by operating activities is generated by subscription and
subscription-related revenues. We also generate cash from the sale of advertising on certain non-
music channels and the sale of satellite radios, components and accessories. Our primary uses of
cash from operating activities include revenue share and royalty payments to distributors,
programming and content providers, and payments to radio manufacturers, distributors and
automakers. In addition, uses of cash from operating activities include payments to vendors to
service, maintain and acquire subscribers, general corporate expenditures, and compensation and
related costs.
Cash Flows Used in Investing Activities
Cash flows used in investing activities are primarily due to additional spending to improve our
terrestrial repeater network and for capitalized software. In 2015, our cash flows used in investing
activities also included an increase to our letters of credit issued for the benefit of lessors of certain
of our office space. In 2014, our cash flows used in investing activities were primarily due to
additional spending to improve our terrestrial repeater network and for capitalized software, partially
offset by a special one-time dividend received from our investment in Sirius XM Canada of $24,178.
We expect to continue to incur significant costs to improve our terrestrial repeater network and
broadcast and administrative infrastructure. In 2013, our cash flows used in investing activities
included $525,352 related to our acquisition of the connected vehicle business of Agero, Inc.
Cash Flows Used in Financing Activities
Cash flows used in financing activities consists of the issuance and repayment of long-term
debt, cash used in our stock option program and the purchase of common stock under our share
repurchase program. Proceeds from long-term debt, related party debt and equity issuances have
been used to fund our operations, construct and launch new satellites and invest in other
infrastructure improvements.
Cash flows provided by financing activities in 2015 were due to the issuance of $1,000,000
aggregate principal amount of 5.375% Senior Notes due 2025 and borrowings under the Credit
Facility. Cash flows used in financing activities in 2015 were primarily due to the purchase and
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