XM Radio 2014 Annual Report Download - page 95

As of December 31, 2014 and December 31, 2013, we had $147,724 and $134,805,
respectively, of cash and cash equivalents. The following table presents a summary of our cash
flow activity for the periods set forth below:
(in thousands) 2014 2013 2012 2014 vs. 2013 2013 vs. 2012
For the Years Ended December 31,
Net cash provided by operating
activities . . . . . . . . . . . . . . . . . . . . . $ 1,253,244 $1,102,832 $ 806,765 $ 150,412 $ 296,067
Net cash used in investing
activities . . . . . . . . . . . . . . . . . . . . . (96,324) (700,688) (97,319) 604,364 (603,369)
Net cash used in financing
activities . . . . . . . . . . . . . . . . . . . . . (1,144,001) (788,284) (962,491) (355,717) 174,207
Net increase (decrease) in cash
and cash equivalents . . . . . . . . . 12,919 (386,140) (253,045) 399,059 (133,095)
Cash and cash equivalents at
beginning of period . . . . . . . . . . . 134,805 520,945 773,990 (386,140) (253,045)
Cash and cash equivalents at
end of period . . . . . . . . . . . . . . . . $ 147,724 $ 134,805 $ 520,945 $ 12,919 $(386,140)
Cash Flows Provided by Operating Activities
Cash flows provided by operating activities increased by $150,412 to $1,253,244 for the year
ended December 31, 2014 from $1,102,832 for the year ended December 31, 2013. Cash flows
provided by operating activities increased by $296,067 to $1,102,832 for the year ended December
31, 2013 from $806,765 for the year ended December 31, 2012.
Our largest source of cash provided by operating activities is generated by subscription and
subscription-related revenues. We also generate cash from the sale of advertising on certain non-
music channels and the sale of satellite radios, components and accessories. Our primary uses of
cash from operating activities include revenue share and royalty payments to distributors and
content providers, and payments to radio manufacturers, distributors and automakers. In addition,
uses of cash from operating activities include payments to vendors to service, maintain and acquire
subscribers, general corporate expenditures, and compensation and related costs.
Cash Flows Used in Investing Activities
Cash flows used in investing activities are primarily due to additional spending to improve our
terrestrial repeater network and for capitalized software, partially offset by the special one-time
dividend received from Sirius XM Canada of $24,178. We expect to continue to incur significant
costs to improve our terrestrial repeater network and broadcast and administrative infrastructure. In
2013, our cash flows used in investing activities included $525,352 related to our acquisition of the
connected vehicle business of Agero, Inc. In 2012, our cash flows used in investing activities
primarily related to capital expenditures for property and equipment.
Cash Flows Used in Financing Activities
Cash flows used in financing activities consists of the issuance and repayment of long-term
debt, cash used in our stock option program and the purchase of common stock under our share
repurchase program. Proceeds from long-term debt, related party debt and equity issuances have
been used to fund our operations, acquire the connected vehicle business of Agero, Inc., construct
and launch new satellites and invest in other infrastructure improvements.
Cash flows used in financing activities in 2014 were primarily due to the purchase of shares of
our common stock under our repurchase program for $2,496,799 and repayments under the Credit
Facility. In 2014, we issued $1,500,000 aggregate principal amount of 6.00% Senior Notes due
2024. Cash flows used in financing activities in 2013 were primarily due to the purchase of shares
of our common stock under our share repurchase program for $1,762,360, and the extinguishment
of $800,000 of our then outstanding 8.75% Senior Notes due 2015 and $700,000 of our then
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