America Online 2010 Annual Report Download - page 74

Table of Contents
AOL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years Ended December 31,
2010 2009 2008
(recast) (recast)
Operations
Net income (loss) $ (782.5) $ 248.5 $ (1,526.6)
Less: Discontinued operations, net of tax 8.2 (2.9) (6.0)
Net income (loss) from continuing operations (790.7) 251.4 (1,520.6)
Adjustments for non-cash and non-operating items:
Depreciation and amortization 341.6 399.0 469.6
Asset impairments 1,426.5 23.1 2,240.0
(Gain) loss on sale of investments and consolidated businesses, net (132.5) 0.2 (0.3)
Equity-based compensation 36.1 12.5 19.6
Amounts related to securities litigation and government investigations, net of recoveries — 27.9 20.8
Other non-cash adjustments 10.6 7.1 (1.7)
Deferred income taxes (183.9) (4.7) (51.0)
Changes in operating assets and liabilities, net of acquisitions
Receivables 129.6 56.7 83.0
Accrued expenses (168.7) 123.6 (287.0)
Deferred revenue (21.5) (28.2) (21.7)
Other balance sheet changes (53.6) 38.1 (13.6)
Cash provided by continuing operations 593.5 906.7 937.1
Cash provided (used) by discontinued operations (1.1) 1.4 (3.5)
Cash provided by operations 592.4 908.1 933.6
Investing Activities
Investments and acquisitions, net of cash acquired (154.0) (18.1) (1,035.4)
Proceeds from disposal of assets and consolidated businesses, net 344.2 2.2 135.3
Capital expenditures and product development costs (95.9) (135.3) (172.2)
Investment activities from discontinued operations 14.8 (0.5) —
Cash provided (used) by investing activities 109.1 (151.7) (1,072.3)
Financing Activities
Debt repayments — — (54.0)
Principal payments on capital leases (37.5) (31.1) (25.1)
Net contribution from (distribution to) Time Warner — (709.3) 210.4
Excess tax benefit on equity-based compensation — — 2.1
Tax withholdings related to net share settlements of restricted stock units (4.3) — —
Other — (9.2) 1.5
Cash provided (used) by financing activities (41.8) (749.6) 134.9
Effect of exchange rate changes on cash and equivalents (4.9) 5.5 (13.4)
Increase (decrease) in cash and equivalents 654.8 12.3 (17.2)
Cash and equivalents at beginning of year 147.0 134.7 151.9
Cash and equivalents at end of year 801.8 147.0 134.7
Less: Cash and equivalents of discontinued operations at end of year — 0.9 (0.1)
Cash and equivalents of continuing operations at end of year $ 801.8 $ 146.1 $ 134.8
Supplemental disclosures of cash flow information
Cash paid for interest $ 9.8 $ 7.3 $ 10.5
Cash paid for taxes (a) $ 9.9 $ 216.8 $ 516.6
(a) The amount of cash paid for taxes includes $210.8 million and $504.2 million for the years ended December 31, 2009 and 2008, respectively, paid to
Time Warner under the tax matters agreement. See "Note 13" for further information on the tax matters agreement.
See accompanying notes.
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