XM Radio 2008 Annual Report Download - page 58

SIRIUS XM RADIO INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
2008 2007 2006
For the Years Ended December 31,
(In thousands)
Cash flows from operating activities:
Net loss ........................................................ $(5,313,288) $(565,252) $(1,104,867)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization ........................................ 203,752 106,780 105,749
Impairment of goodwill . . . ......................................... 4,766,190 — —
Non-cash interest expense, net of amortization of premium ..................... (6,311) 4,269 3,107
Provision for doubtful accounts . . . .................................... 21,589 9,002 9,370
Non-cash loss from redemption of debt . . . ............................... 98,203 — —
Amortization of deferred income related to equity method investment . . . ........... (1,156) — —
Loss on disposal of assets . . ......................................... 4,879 (428) 1,661
Impairment loss . . . .............................................. — — 10,917
Loss on investments, net . . ......................................... 28,999 — 4,445
Share-based payment expense ........................................ 87,405 78,900 437,918
Deferred income taxes ............................................. 2,476 2,435 2,065
Other non-cash purchase price adjustments. ............................... (68,330) — —
Other ........................................................ 1,643 — —
Changes in operating assets and liabilities, net of assets and liabilities acquired:
Accounts receivable .............................................. (32,121) (28,881) (1,871)
Inventory . . ................................................... 8,291 4,965 (20,246)
Receivables from distributors ........................................ 14,401 (13,179) (20,312)
Related party assets . .............................................. (22,249) (1,241) (1,189)
Prepaid expenses and other current assets . ............................... (19,953) 11,118 (42,132)
Other long-term assets ............................................. (5,490) 13,691 (18,377)
Accounts payable and accrued expenses . . ............................... (65,481) 66,169 26,366
Accrued interest . . . .............................................. 23,081 (8,920) 1,239
Deferred revenue . . .............................................. 55,778 169,905 181,003
Related party liabilities . . . ......................................... 34,646 — —
Other long-term liabilities . . ......................................... 30,249 1,901 3,452
Net cash used in operating activities . . . ............................... (152,797) (148,766) (421,702)
Cash flows from investing activities:
Additions to property and equipment ................................... (130,551) (65,264) (92,674)
Sales of property and equipment . . .................................... 105 641 127
Purchases of restricted and other investments .............................. (3,000) (310) (12,339)
Acquisition of acquired entity cash . .................................... 819,521 — —
Merger related costs .............................................. (23,519) (29,444) —
Purchase of available-for-sale securities . . . ............................... — — (123,500)
Sale of restricted and other investments . . . ............................... 65,869 40,191 255,715
Net cash provided by (used in) investing activities ......................... 728,425 (54,186) 27,329
Cash flows from financing activities:
Proceeds from exercise of warrants and stock options and from share borrow
arrangement .................................................. 471 4,097 25,787
Long-term borrowings, net of related costs . ............................... 531,743 244,879 —
Payment of premiums on redemption of debt .............................. (18,693) — —
Payments to minority interest holder .................................... (1,479) — —
Repayment of long term borrowings .................................... (1,146,044) (625) —
Net cash (used in) provided by financing activities ......................... (634,002) 248,351 25,787
Net (decrease) increase in cash and cash equivalents. . . .......................... (58,374) 45,399 (368,586)
Cash and cash equivalents at beginning of period ............................... 438,820 393,421 762,007
Cash and cash equivalents at end of period ................................... $ 380,446 $ 438,820 $ 393,421
Supplemental Disclosure of Cash and Non-Cash Flow Information
Cash paid during the period for:
Interest, net of amounts capitalized ........................................ $ 137,542 $ 66,266 $ 59,929
Income taxes . . . ................................................... — — —
Non-cash operating activities:
Common stock issued in satisfaction of accrued compensation .................... 8,729 7,949 7,243
Non-cash investing and financing activities:
Release of restriction on marketable securities ............................... — — 4,750
Common stock issued in exchange of 3
1
⁄ 2 % Convertible Notes due 2008, including accrued
interest ....................................................... 33,502 3,182 16,001
Common stock issued in exchange of 2
1
⁄ 2 % Convertible Notes due 2009, including accrued
interest ....................................................... 209,113 2 —
Common stock issued to third parties . .................................... — 82,941 224,952
Equity issued in the acquisition of XM .................................... 5,784,976 — —
See accompanying Notes to the consolidated financial statements.
F-8