Earthlink 2008 Annual Report Download - page 66

Table of Contents
EARTHLINK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
The accompanying notes are an integral part of these consolidated financial statements.
62
Year Ended December 31,
2006
2007
2008
(in thousands)
Cash flows from operating activities:
Net income (loss)
$
4,987
$
(135,097
)
$
189,612
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
46,287
54,169
36,333
Impairment of goodwill and intangible assets
—
4,250
78,672
Net losses of equity affiliate
84,782
111,295
—
Loss on disposals and impairments of assets
1,351
60,385
10,078
(Gain) loss on investments in other companies, net
(377
)
5,585
(2,708
)
Stock
-
based compensation
14,285
19,599
20,133
Non
-
cash income taxes
588
(1,516
)
(42,714
)
(Increase) decrease in accounts receivable, net
(3,098
)
9,285
10,929
(Increase) decrease in prepaid expenses and other assets
(3,968
)
4,546
(3,050
)
Decrease in accounts payable and accrued and other liabilities
(24,060
)
(35,727
)
(54,632
)
Decrease in deferred revenue
(5,153
)
(7,934
)
(12,041
)
Other
(375
)
(51
)
—
Net cash provided by operating activities
115,249
88,789
230,612
Cash flows from investing activities:
Purchases of property and equipment
(38,852
)
(53,478
)
(5,681
)
Purchases of subscriber bases
(8,879
)
(7,290
)
(1,232
)
Purchases of investments in marketable securities
(179,165
)
(403,432
)
(53,027
)
Sales and maturities of investments in marketable securities
191,882
525,458
109,929
Investments in and net advances to/from equity affiliate
(79,020
)
(48,915
)
65
Purchase of business, net of cash received
(108,663
)
—
—
Investments in other companies
(60,000
)
—
—
Proceeds received from investments in other companies
377
1,557
57,070
Other investing activities
(744
)
36
Net cash (used in) provided by investing activities
(283,064
)
13,936
107,124
Cash flows from financing activities:
Principal payments under capital lease obligations
(31
)
(372
)
(2,707
)
Proceeds from issuance of convertible senior notes, net
251,568
—
—
Purchase of call options
(47,162
)
—
—
Proceeds from issuance of warrants
32,099
—
—
Proceeds from exercises of stock options and other
4,029
9,462
8,139
Repurchases of common stock
(85,613
)
(94,332
)
(31,856
)
Other financing activities
(2,000
)
(2,025
)
1,425
Net cash provided by (used in) financing activities
152,890
(87,267
)
(24,999
)
Net (decrease) increase in cash and cash equivalents
(14,925
)
15,458
312,737
Cash and cash equivalents, beginning of year
173,294
158,369
173,827
Cash and cash equivalents, end of year
$
158,369
$
173,827
$
486,564