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Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Operating Activities:        
Net income $ 37,336 $ 17,890 $ 27,319 $ 62,818
Adjustments to reconcile net income to net cash flows from operating activities:        
Depreciation and other 39,880 47,898 133,598 146,156
Amortization of intangible assets 3,308 3,671 9,970 11,366
Share-based payments expense 4,829 3,249 12,021 10,093
Windfall excess tax benefits related to share-based payments (29) (35) (715) (1,988)
Deferred income taxes (21,741) (2,404) (25,680) (17,408)
Restructuring and lease termination costs [1] 0 0 1,680 0
Loss from equity method investments, net 328 11,352 593 31,261
Amortization of deferred financing fees and debt discount 693 901 2,078 3,423
Loss from early extinguishment of debt 0 55 0 2,018
Goodwill impairment (Note 6) 0 0 85,890 0
Other 315 (313) (501) (1,477)
Cash flows from changes in operating assets and liabilities:        
Accounts receivable, net 9,655 12,133 24,732 17,464
Content library 18,546 1,314 53,205 48,800
Prepaid expenses and other current assets 17,188 1,044 (4,894) 23,047
Other assets 84 611 406 1,647
Accounts payable (28,383) (26,011) (46,080) (97,006)
Accrued payable to retailers (12,777) (21,099) (24,287) (27,822)
Other accrued liabilities 16,327 (629) 17,439 (5,345)
Net cash flows from (used in) operating activities [2] 85,559 49,627 266,774 [3] 207,047 [4]
Investing Activities:        
Purchases of property and equipment (19,947) (19,295) (60,164) (72,311)
Proceeds from sale of property and equipment 128 42 3,068 1,835
Cash paid for equity investments 0 (14,000) 0 (24,500)
Net cash flows from (used in) investing activities [2] (19,819) (33,253) (57,096) [3] (94,976) [4]
Financing Activities:        
Proceeds from issuance of senior unsecured notes 0 0 0 295,500
Proceeds from new borrowing on Credit Facility 35,000 130,000 147,000 635,000
Principal payments on Credit Facility (72,813) (86,875) (258,563) (621,250)
Financing costs associated with Credit Facility and senior unsecured notes (9) [1] (824) (9) [1] (2,906)
Settlement and conversion of convertible debt 0 (33,425) 0 (51,149)
Repurchases of common stock (60,758) (70,598) (123,489) (545,078)
Dividends paid (Note 19) (5,139) 0 (16,158) 0
Principal payments on capital lease obligations and other debt (2,660) (3,516) (8,938) (10,597)
Windfall excess tax benefits related to share-based payments 29 35 715 1,988
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options (45) (59) (1,246) (1,084)
Net cash flows from (used in) financing activities [2] (106,395) (65,262) (260,688) (299,576) [4]
Effect of exchange rate changes on cash (1,450) 563 3,917 969
Change in cash and cash equivalents (42,105) (48,325) (47,093) (186,536)
Cash and cash equivalents:        
Beginning of period 237,708 233,226 242,696 371,437
End of period 195,603 184,901 195,603 184,901
Supplemental disclosure of cash flow information:        
Cash paid during the period for interest 12,151 12,614 34,997 29,824
Cash paid during the period for income taxes, net 17,551 14,594 84,447 23,783
Supplemental disclosure of non-cash investing and financing activities:        
Purchases of property and equipment financed by capital lease obligations 994 1,901 1,971 7,414
Purchases of property and equipment included in ending accounts payable 3,422 5,869 3,422 5,869
Common stock issued on conversion of callable convertible debt 0 14,057 0 24,255
Non-cash debt issue costs 0 0 0 4,500
Additional cash flow information        
Restructuring and lease termination costs [1] $ 0 $ 0 1,680 0
Impairment of lease related assets     6,940 $ 0
Benefit from lease termination     $ 5,200  
[1] The non-cash restructuring and lease termination costs in the nine months ended September 30, 2015 of $1.7 million is composed of $6.9 million in impairments of lease related assets partially offset by a $5.2 million benefit resulting from the lease termination.
[2] During the first quarter of 2015 we discontinued our Redbox operations in Canada. 2014 also includes the wind-down process of certain new ventures that were discontinued during 2013. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada.
[3] During the first quarter of 2015 we discontinued our Redbox operations in Canada. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada.
[4] 2014 includes the wind-down process of certain new ventures that were discontinued during 2013. Cash flows from these discontinued operations were not significant and are not segregated from cash flows from continuing operations in all periods presented.