Avid 2009 Annual Report Download - page 44

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Net cash flow provided by financing activities was $0.1 million in 2009, compared to ($92.4) million and ($15.3)
million used in financing activities in 2008 and 2007, respectively. The cash provided by financing activities in 2009
reflected proceeds of $0.6 million from the issuance of stock related to the exercise of stock options and purchases
under our employee stock purchase plan, partially offset by $0.5 million used to repurchase stock options during the
second quarter of 2009. The cash used in financing activities in 2008 was the result of $93.2 million used for our stock
repurchase program, slightly offset by proceeds of $1.1 million from the exercise of stock options and purchases under
our employee stock purchase plan. The cash used in financing activities in 2007 reflected a $26.6 million repurchase of
our common stock, partially offset by proceeds of $11.1 million from the issuance of stock related to the exercise of
stock options and our employee stock purchase plan.
A stock repurchase program was approved by our board of directors in April 2007, which authorized the repurchase of
up to $100 million of our common stock through transactions on the open market, in block trades or otherwise. In
February 2008, our board of directors approved a $100 million increase in authorized funds for the repurchase of our
common stock under this program. During 2007, we repurchased 809,236 shares of our common stock under the
program for a total purchase price, including commissions, of $26.6 million. During 2008, we repurchased an additional
4,254,397 shares of our common stock for a total purchase price, including commissions, of $93.2 million, leaving
$80.3 million authorized for future repurchases. No shares of our common stock were repurchased under this program
in 2009. The stock repurchase program is being funded through working capital and has no expiration date.
Our cash requirements vary depending on factors such as our growth, capital expenditures, acquisitions of businesses or
technologies and obligations under restructuring programs. We believe that our existing cash, cash equivalents,
marketable securities and funds generated from operations will be sufficient to meet our operating cash requirements for
at least the next twelve months. In the event that we require additional financing, we believe that we will be able to
obtain such financing; however, there can be no assurance that we would be successful in doing so or that we could do
so on favorable terms.
Fair Value Measurements
We value our cash and investment instruments using quoted market prices, broker or dealer quotations, or alternative
pricing sources with reasonable levels of price transparency. See Note B to our Condensed Consolidated Financial
Statements included in Item 8 of this annual report for disclosure of the fair values and the inputs used to determine the
fair values of our financial assets and financial liabilities.
CONTRACTUAL AND COMMERCIAL OBLIGATIONS
The following table sets forth future payments that we were obligated to make at December 31, 2009 under existing
lease agreements and commitments to purchase inventory (in thousands):
Total
Less than
1 Year
1 – 3 Years
3 – 5 Years
After
5 Years
Operating leases
$124,798
$21,303
$35,525
$28,341
$39,629
Unconditional purchase obligations
49,522
49,522
—
—
—
$174,320
$70,825
$35,525
$28,341
$39,629
Other contractual arrangements or unrecognized tax positions that may result in cash payments consisted of the
following at December 31, 2009 (in thousands):
Total(a)
Less than
1 Year
1 – 3 Years
3 – 5 Years
After
5 Years
Transactions with recourse
$2,493
$2,493
—
—
—
Unrecognized tax positions and related interest
2,300
—
—
—
—
Stand-by letters of credit
3,316
—
—
—
$3,316
$8,109
$2,493
—
—
$3,316
(a) At December 31, 2009, liability related to unrecognized tax positions and related interest was $2.3 million, and we were unable to
reasonably estimate the timing of the liability in individual years due to uncertainties in the timing of the effective settlement of
the positions.