Digital River 2006 Annual Report Download - page 87

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The following table presents the effects of adjustments made to our previously reported consolidated
statement of cash flows (in thousands):
DIGITAL RIVER, INC.
Consolidated Statements of Cash Flows For the Years Ended December 31,
As Previously
Reported Adjustments As Restated(1)
As Previously
Reported Adjustments As Restated(1)
2005 2004
(In thousands)
OPERATING ACTIVITIES:
Net income . . ................................ $ 54,343 $ 2,169 $ 56,512 $ 35,324 $(817) $ 34,507
Adjustments to reconcile net income to net cash provided by
operating activities:
Amortization of acquisition-related intangibles . ....... 8,730 — 8,730 8,269 — 8,269
Change in accounts receivable allowance, net of
acquisitions . . ........................... (598) — (598) 709 — 709
Depreciation and amortization . ................. 8,833 — 8,833 8,203 — 8,203
Stock-based compensation expense related to stock-based
compensation plans . . ...................... — 293 293 — 817 817
Tax benefit of stock-based compensation ........... 47,879 (2,462) 45,417 — — —
Excess tax benefits from stock-based compensation . . . . — — — — — —
Deferred income taxes and other . . . .............. (34,789) — (34,789) — — —
Litigation and other charges . . . ................. (739) — (739) 1,090 — 1,090
Change in operating assets and liabilities (net of
acquisitions):
Accounts receivable . ...................... (10,304) — (10,304) (8,223) — (8,223)
Prepaid and other assets ..................... (2,417) — (2,417) 1,037 — 1,037
Accounts payable . . . ...................... 34,822 — 34,822 34,433 — 34,433
Deferred revenue . . . ...................... 1,395 — 1,395 (230) — (230)
Income tax payable . . ...................... 2,740 — 2,740 143 — 143
Accrued payroll and other accrued liabilities ....... 9,859 — 9,859 4,380 — 4,380
Net cash provided by operating activities . ....... 119,754 — 119,754 85,135 — 85,135
INVESTING ACTIVITIES:
Purchases of investments . ...................... (190,713) — (190,713) (199,699) — (199,699)
Sales of investments .......................... 127,771 — 127,771 94,059 — 94,059
Cash paid for acquisitions, net of cash received . . ....... (54,177) — (54,177) (126,457) — (126,457)
Purchases of equipment and capitalized software . ....... (8,328) — (8,328) (9,255) — (9,255)
Net cash used in investing activities. . . ............ (125,447) — (125,447) (241,352) — (241,352)
FINANCING ACTIVITIES:
Principal amount on line of credit ................. — — — 45,000 — 45,000
Repayment of principal on line of credit . ............ — — — (45,000) — (45,000)
Proceeds from convertible senior notes . . ............ — — — 188,371 — 188,371
Proceeds from sales of common stock . . . ............ — — — — — —
Exercise of stock options . ...................... 23,199 — 23,199 19,719 — 19,719
Sales of common stock under employee stock purchase
plan . . . ................................ 2,199 — 2,199 904 — 904
Repurchase of common stock . . . ................. (13,145) — (13,145) — — —
Repurchase of restricted stock to satisfy tax witholding
obligation................................ — — — — — —
Excess tax benefits from stock-based compensation ...... — — — — — —
Net cash provided by financing activities ........... 12,253 — 12,253 208,994 — 208,994
EFFECT OF EXCHANGE RATE CHANGES ON CASH . . . (2,524) — (2,524) 2,072 — 2,072
NET INCREASE IN CASH AND CASH EQUIVALENTS . . . 4,036 — 4,036 54,849 — 54,849
CASH AND CASH EQUIVALENTS, beginning of period . . . 127,734 — 127,734 72,885 — 72,885
CASH AND CASH EQUIVALENTS, end of period ....... $131,770 $ — $ 131,770 $ 127,734 $ — $ 127,734
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest on Convertible Senior Notes ...... $ 2,641 $ — $ 2,641 $ — $ — $ —
Cash paid for income taxes ...................... $ 193 $ — $ 193 $ — $ — $ —
Noncash investing and financing activities:
Common stock issued in acquisitions and earn-outs . . . . $ — $ — $ — $ 5,344 $ — $ 5,344
(1) See Note 2, “Restatement of Consolidated Financial Statements,” in Notes to Consolidated Financial Statements.
83
DIGITAL RIVER, INC.
Notes to Consolidated Financial Statements — (Continued)