Home Shopping Network 2012 Annual Report Download - page 41

Table of Contents
HSN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
The accompanying notes are an integral part of these consolidated financial statements.
Years Ended
December 31,
2012 2011 2010
(In thousands)
Cash flows from operating activities attributable to continuing operations:
Net income
$
130,675
$
123,070
$
98,523
Loss from discounted operations, net of tax
(5,822
)
(4,582
)
(1,918
)
Income from continuing operations
136,497
127,652
100,441
Adjustments to reconcile income from continuing operations to net cash provided by operating activities
attributable to continuing operations:
Depreciation and amortization
38,005
35,822
37,546
Stock-based compensation expense
19,056
26,401
21,232
Loss on debt extinguishment
18,627
—
—
Amortization of cable and satellite distribution fees
— —
3,358
Amortization of debt issuance costs
1,777
2,941
2,571
Deferred income taxes
(2,146
)
2,238
(2,809
)
Bad debt expense
24,186
19,758
19,827
Excess tax benefits from stock-based awards
(19,004
)
(9,835
)
(3,112
)
Other
764
2,343
1,526
Changes in current assets and liabilities:
Accounts receivable
(51,995
)
(46,201
)
(32,593
)
Inventories
(36,117
)
(1,385
)
(35,096
)
Prepaid expenses and other assets
(3,724
)
(3,213
)
3,388
Accounts payable, accrued expenses and other current liabilities
21,487
8,834
18,693
Net cash provided by operating activities attributable to continuing operations
147,413
165,355
134,972
Cash flows from investing activities attributable to continuing operations:
Capital expenditures
(45,803
)
(42,069
)
(37,006
)
Acquisition of business, net of cash received
(22,875
) —
—
Proceeds from sale of discontinued operations
6,580
—
—
Net cash used in investing activities attributable to continuing operations
(62,098
)
(42,069
)
(37,006
)
Cash flows from financing activities attributable to continuing operations:
Redemption of Senior Notes
(253,500
)
(69,841
)
(30,159
)
Borrowing under term loan
250,000
—
—
Payments of debt issuance costs
(4,607
) —
—
Repurchase of common stock
(221,835
)
(26,821
)
—
Cash dividends paid
(31,049
)
(7,384
)
—
Proceeds from issuance of common stock
20,688
8,845
18,021
Tax withholdings related to stock-based awards
(18,209
)
(11,430
)
(2,744
)
Excess tax benefits from stock-based awards
19,004
9,835
3,112
Net cash used in financing activities attributable to continuing operations
(239,508
)
(96,796
)
(11,770
)
Total cash (used in) provided by continuing operations
(154,193
)
26,490
86,196
Cash flows from discontinued operations:
Net cash (used in) provided by operating activities attributable to discontinued operations
(5,361
)
1,309
(1,356
)
Net cash used in investing activities attributable to discontinued operations
(162
)
(250
)
(502
)
Total cash (used in) provided by discontinued operations
(5,523
)
1,059
(1,858
)
Net (decrease) increase in cash and cash equivalents
(159,716
)
27,549
84,338
Cash and cash equivalents at beginning of period
381,808
354,259
269,921
Cash and cash equivalents at end of period
$
222,092
$
381,808
$
354,259