Earthlink 2001 Annual Report Download - page 37

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The accompanying notes are an integral part of these consolidated financial statements
F-8
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Increase (decrease) in deferred revenue
12,458
13,042
(12,533
)
Net cash provided by (used in) operating activities
44,211
(127,162
)
47,388
Cash flows from investing activities:
Purchase of property and equipment
(109,819
)
(139,414
)
(69,450
)
Investments in marketable securities:
Purchases — — (
192,621
)
Maturities
—
—
22,626
Sale of property and equipment
1,416
— —
Purchase of intangible assets
(227,494
)
(37,304
)
(40,688
)
Cash acquired from acquisition —
2,125
240
Acquistion of business
—
(
155,561
)
(5,832
)
Transaction costs — (
12,477
)
(261
)
Investments in other companies
(4,000
)
(9,100
)
(2,000
)
Other
148
— —
Net cash used in investing activities
(339,749
)
(351,731
)
(287,986
)
Cash flows from financing activities:
Proceeds from issuance of notes payable
174,082
— —
Repayment of notes payable — (
179,975
) —
Proceeds from line of credit
77,987
— —
Repayment of line of credit
(80,000
)
—
—
Proceeds from sale and leaseback transactions
13,456
5,619
873
Principal payments under capital lease obligations
(14,501
)
(16,277
)
(18,980
)
Net proceeds from public stock offerings
489,260
— —
Proceeds from sale of common stock
—
118,462
—
Proceeds from issuance of preferred stock
—
589,305
—
Proceeds from exercise of stock options and warrants
11,359
7,443
7,988
Proceeds from liquidation of stock subscription receivable
1,041
— —
Repurchase of common stock — (
56,691
) —
Net cash provided by (used in) financing activities
672,684
467,886
(10,119
)
Net increase (decrease) in cash and cash equivalents
377,146
(11,007
)
(250,717
)
Cash and cash equivalents, beginning of year
308,607
685,753
674,746
Cash and cash equivalents, end of year
$
685,753
$
674,746
$
424,029
Acquisition, net of cash acquired (Note 2):
Issuance of common stock
$
106,698
$
—
Acquistion of business
155,561
5,832
Transaction costs
12,477
261
Other non-cash costs
16,362
—
Net liabilities assumed
26,025
12,583
Intangible assets
(314,998
)
(18,436
)
Cash acquired from acquisition
$
2,125
$
240