Home Shopping Network 2008 Annual Report Download - page 44

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41
HSN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Cash flows from operating activities attributable to continuing operations:
Net (loss) income $ (2,390,888) $ 164,804 $ 122,817
Less: (Loss) income from discontinued operations, net of tax (3,410) 59,571 (10,715)
(Loss) income from continuing operations (2,387,478) 105,233 133,532
Adjustments to reconcile (loss) income from continuing operations to net cash provided
by operating activities attributable to continuing operations:
Depreciation 37,438 34,363 37,273
Amortization of intangible assets 7,465 12,681 34,224
Asset impairments 3,186,650 - -
Non-cash compensation expense 20,286 12,160 11,746
Amortization of cable and satellite distribution fees 4,028 4,866 29,565
Amortization of non-cash marketing 8,022 4,442 -
Amortization of debt issuance costs 1,124 - -
Loss on disposition of fixed assets 1,354 276 146
Deferred income taxes (742,053) (11,803) (15,282)
Excess tax benefits from stock-based awards (135) (2,401) (2,269)
Bad debt expense 19,775 14,598 10,734
Increase in cable and satellite distribution fees - - (16,876)
Changes in current assets and liabilities:
Accounts receivable 8,787 (53,130) (15,382)
Inventories 13,239 (3,498) (23,415)
Prepaid expenses and other current assets 12,816 (2,212) (1,459)
Accounts payable, accrued expenses and other current liabilities (54,230) 22,009 (14,832)
Net cash provided by operating activities attributable to continuing
operations 137,088 137,584 167,705
Cash flows from investing activities attributable to continuing operations:
Transfers from (to) IAC 16,738 (91,560) (188,269)
Capital expenditures (39,662) (48,714) (35,985)
Other, net - 113 (174)
Net cash used in investing activities attributable to continuing operations (22,924) (140,161) (224,428)
Cash flows from financing activities attributable to continuing operations:
Proceeds from issuance of long-term debt, net of issuance costs 373,833 - -
Borrowings under revolving credit facility 40,000 - -
Repayment under revolving credit facility (20,000) -
Distribution to IAC in connection with the spin-off (333,799) - -
Excess tax benefits from stock-based awards 135 2,401 2,269
Other, net (117) (10) -
Net cash provided by financing activities attributable to continuing
operations 60,052 2,391 2,269
Total cash provided by (used in) continuing operations 174,216 (186) (54,454)
Cash flows from discontinued operations:
Net cash used in operating activities attributable to discontinued operations (501) (8,956) (27,931)
Net cash used in investing activities attributable to discontinued operations
-
(965)
(8,526)
Net cash used in financing activities attributable to discontinued operations - (38,571) (1,748)
Total cash used in discontinued operations (501) (48,492) (38,205)
Effect of exchange rate changes on cash and cash equivalents (2,472) 1,531 7,788
Net increase (decrease) in cash and cash equivalents 171,243 (47,147) (84,871)
Cash and cash equivalents at beginning of period 6,220 53,367 138,238
Cash and cash equivalents at end of period
177,463
$
6,220
$
53,367
$
(In thousands)
Years Ended
December 31,
2008 2007 2006
The accompanying notes are an integral part of these consolidated financial statements.