NetFlix 2002 Annual Report Download - page 56

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NETFLIX, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2000 2001 2002
Cash flows from operating activities:
Net loss $ (57,363) $ (38,618) $ (21,947)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation of property and equipment 3,605 5,507 5,919
Amortization of DVD library 15,681 22,127 17,417
Amortization of intangible assets 546 2,163 3,141
Noncash charges for equity instruments granted to non−employees 598 28 40
Stock−based compensation expense 8,803 5,686 9,831
Loss on disposal of property and equipment 145 — —
Gain on disposal of DVDs — — (1,674)
Noncash interest and other expense 497 1,017 11,384
Changes in operating assets and liabilities:
Prepaid expenses and other current assets (2,686) (15) (44)
Accounts payable 2,356 6,025 6,635
Accrued expenses 2,708 (1,375) 4,558
Deferred revenue 2,302 2,164 4,806
Deferred rent 102 138 48
Net cash (used in) provided by operating activities (22,706) 4,847 40,114
Cash flows from investing activities:
Purchases of short−term investments — — (43,022)
Proceeds from sale of short−term investments 6,322 — —
Purchases of property and equipment (6,210) (3,233) (2,751)
Acquisitions of DVD library (23,895) (8,851) (24,070)
Proceeds from sale of DVDs — — 1,988
Deposits and other assets (1,189) (586) 554
Net cash used in investing activities (24,972) (12,670) (67,301)
Cash flows from financing activities:
Proceeds from issuance of redeemable convertible preferred stock 50,011 — —
Proceeds from issuance of common stock 422 125 88,020
Net proceeds from issuance of subordinated notes payable and detachable warrants — 12,831 —
Repurchases of common stock (141) (12) (6)
Principal payments on notes payable and capital lease obligations (1,917) (3,885) (17,144)
Net cash provided by financing activities 48,375 9,059 70,870
Net increase in cash and cash equivalents 697 1,236 43,683
Cash and cash equivalents, beginning of period 14,198 14,895 16,131
Cash and cash equivalents, end of period $ 14,895 $ 16,131 $ 59,814
Supplemental disclosure:
Cash paid for interest $ 948 $ 860 $ 592
Noncash investing and financing activities:
Purchase of assets under capital lease obligations $ 3,000 $ 520 $ 583
Discount on capital lease obligation $ 105 $ 172 $ —
Warrant issued as a deposit on operating lease $ 216 $ — $ —
Exchange of Series F non−voting convertible preferred stock for intangible asset $ 6,128 $ 4,498 $ 1,318
Unrealized gain on short−term investments $ — $ — $ 774
Conversion of redeemable convertible preferred stock to common stock $ — $ — $ 101,830
See accompanying notes to financial statements.
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