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Table of Contents
EARTHLINK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
The accompanying notes are an integral part of these financial statements.
65
Year Ended December 31,
2010
2011
2012
Cash flows from operating activities: (in thousands)
Net income
81,480
$
34,567
$
7,520
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
23,390
160,083
183,304
Impairment of intangible assets
1,711
—
—
Loss on disposals and impairments of fixed assets
579
3,871
1,531
Non-cash income taxes
49,536
16,125
(1,707
)
Stock-based compensation
9,959
13,466
10,462
Amortization of debt discount, premium and issuance costs
14,294
11,136
(1,945
)
Gain on conversion and repayment of debt
(172
)
(2,449
)
(808
)
Other operating activities
(426
)
(1,003
)
(833
)
Decrease (increase) in accounts receivable, net
16
(4,045
)
(386
)
Decrease (increase) in prepaid expenses and other assets
1,490
(17,502
)
2,044
Decrease in accounts payable and accrued and other liabilities
(25,175
)
(78,795
)
(7,040
)
(Decrease) increase in deferred revenue
(2,233
)
10,780
(1,087
)
Net cash provided by operating activities
154,449
146,234
191,055
Cash flows from investing activities:
Purchase of businesses, net of cash acquired
(192,252
)
(43,095
)
—
Purchases of property and equipment
(24,025
)
(101,967
)
(147,360
)
Purchases of marketable securities
(362,127
)
(29,621
)
(73,060
)
Sales and maturities of marketable securities
132,592
319,729
55,816
Payments to settle precombination stock awards
(9,062
)
—
—
Proceeds received from investments in other companies
1,618
—
—
Change in restricted cash
(937
)
489
768
Other investing activities —
(
3,941
)
—
Net cash (used in) provided by investing activities
(454,193
)
141,594
(163,836
)
Cash flows from financing activities:
Proceeds from issuance of debt, net of issuance costs —
278,256
—
Repayment of debt and capital lease obligations
(35
)
(528,550
)
(35,287
)
Repurchases of common stock
(851
)
(46,989
)
(25,415
)
Payment of dividends
(67,474
)
(22,913
)
(21,128
)
Proceeds from exercises of stock options
2,829
619
338
Other financing activities
(2,768
)
580
111
Net cash used in financing activities
(68,299
)
(318,997
)
(81,381
)
Net decrease in cash and cash equivalents
(368,043
)
(31,169
)
(54,162
)
Cash and cash equivalents, beginning of year
610,995
242,952
211,783
Cash and cash equivalents, end of year
242,952
$
211,783
$
157,621