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Table of Contents
EARTHLINK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
The accompanying notes are an integral part of these consolidated financial statements.
85
Year Ended December 31,
2008
2009
2010
(in thousands)
Cash flows from operating activities:
Net income
$
178,584
$
287,118
$
81,480
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization
36,333
23,962
23,390
Impairment of goodwill and intangible assets
78,672
24,145
1,711
Non
-
cash income taxes
(42,714
)
(135,359
)
49,536
Stock
-
based compensation
20,133
13,231
9,959
Amortization of debt discount, premium and issuance
costs
12,513
13,644
14,294
Loss on disposals and impairments of assets
10,078
345
725
(Gain) loss on investments in other companies, net
(2,708
)
1,321
(572
)
Gain on conversion of debt
—
—
(
172
)
Decrease in accounts receivable, net
10,929
10,009
16
(Increase) decrease in prepaid expenses and other assets
(4,535
)
8,193
1,490
Decrease in accounts payable and accrued and other
liabilities
(54,632
)
(29,839
)
(25,175
)
Decrease in deferred revenue
(12,041
)
(8,148
)
(2,233
)
Net cash provided by operating activities
230,612
208,622
154,449
Cash flows from investing activities:
Purchase of business, net of cash acquired
—
—
(
192,252
)
Purchases of property and equipment
(5,681
)
(13,119
)
(24,025
)
Purchases of investments in marketable securities
(53,027
)
(56,702
)
(362,127
)
Sales and maturities of investments in marketable
securities
109,929
24,259
132,592
Payments to settle precombination stock awards
—
—
(
9,062
)
Purchases of subscriber bases
(1,232
)
—
—
Proceeds received from investments in other companies
57,070
8,441
1,618
Other
65
—
(
937
)
Net cash provided by (used in) investing activities
107,124
(37,121
)
(454,193
)
Cash flows from financing activities:
Repurchases of common stock
(31,856
)
(22,340
)
(851
)
Payment of dividends
—
(
30,006
)
(67,474
)
Proceeds from exercises of stock options
8,139
5,312
2,829
Principal payments under capital lease obligations
(2,707
)
(36
)
(35
)
Other financing activities
1,425
—
(
2,768
)
Net cash used in financing activities
(24,999
)
(47,070
)
(68,299
)
Net increase (decrease) in cash and cash equivalents
312,737
124,431
(368,043
)
Cash and cash equivalents, beginning of year
173,827
486,564
610,995
Cash and cash equivalents, end of year
$
486,564
$
610,995
$
242,952