Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:      
Net income $ 1,175,893 $ 647,908 $ 745,933
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 300,720 298,602 268,979
Non-cash interest expense, net of amortization of premium 9,297 9,050 8,608
Provision for doubtful accounts 50,824 55,715 55,941
Amortization of deferred income related to equity method investment (2,776) (2,776) (2,772)
Loss on extinguishment of debt 0 43,679 24,229
Loss (gain) on unconsolidated entity investments, net 10,479 (4,561) (12,529)
Gain on fair value instrument (42,617) (472) 0
Dividend received from unconsolidated entity investment 2,128 3,606 7,160
Loss on disposal of assets 0 0 (12,912)
Share-based payment expense 133,175 124,069 108,604
Deferred income taxes 256,575 583,520 323,562
Changes in operating assets and liabilities:      
Receivables (42,083) (73,777) (44,188)
Inventory (1,999) 1,874 1,932
Related party, net 1,046 (1,738) (3,485)
Prepaid expenses and other current assets (20,189) 50,194 7,156
Other long-term assets 10,385 7,333 38,835
Accounts payable and accrued expenses (20,086) 41,367 78,920
Accrued interest (9,224) 22,795 22,978
Deferred revenue 70,002 41,894 79,404
Other long-term liabilities (1,132) 7,307 (2,942)
Net cash provided by operating activities 1,880,418 1,855,589 1,719,237
Cash flows from investing activities:      
Additions to property and equipment (355,703) (287,970) (205,829)
Purchases of other investments (7,605) (7,847) (4,295)
Acquisitions, net of cash acquired (2,377) (107,273) 0
Investments in related parties and other equity investees (16,833) (612,465) 0
Repayment from (loan to) related party 3,242    
Repayment from (loan to) related party   (130,794) 0
Net cash used in investing activities (379,276) (1,146,349) (210,124)
Cash flows from financing activities:      
Proceeds from exercise of stock options 7 774 348
Taxes paid in lieu of shares issued for stock-based compensation (119,625) (92,619) (42,824)
Revolving credit facility, net of deferred financing costs 136,190 (90,000) 50,000
Proceeds from long-term borrowings, net of costs 0 2,473,071 987,143
Principal payments of long-term borrowings (15,998) (1,512,578) (660,985)
Payment of premiums on redemption of debt 0 (33,065) (19,097)
Common stock repurchased and retired (1,314,286) (1,409,035) (1,673,518)
Dividends paid (201,434) (190,242) (48,079)
Net cash used in financing activities (1,515,146) (853,694) (1,407,012)
Net decrease in cash, cash equivalents and restricted cash (14,004) (144,454) 102,101
Cash, cash equivalents and restricted cash at beginning of period 79,374 [1] 223,828 [1] 121,727
Cash, cash equivalents and restricted cash at end of period [1] 65,370 79,374 223,828
Cash paid during the period for:      
Interest, net of amounts capitalized 344,906 310,492 292,556
Income taxes paid 6,072 28,045 20,639
Non-cash investing and financing activities:      
Capital lease obligations incurred to acquire assets 499 2,577 6,647
Treasury stock not yet settled 17,154 5,752 821
Accumulated other comprehensive loss (income), net of tax 28,613 (18,546) (363)
Issuance of common stock as part of recapitalization of Sirius XM Canada $ 0 $ 178,850 $ 0
[1] The following table reconciles cash, cash equivalents and restricted cash per the statement of cash flows to the balance sheet. The restricted cash balances are primarily due to letters of credit which have been issued to the landlords of leased office space. The terms of the letters of credit primarily extend beyond one year.Cash and cash equivalents : December 31, 2018: $54,431, December 31, 2017: $69,022, December 31, 2016: $213,939, December 31, 2015: $111,838 Restricted cash included in Prepaid expenses and other current assets : December 31, 2018: $150, December 31, 2017: $244, December 31, 2016 : $0, December 31, 2015: $0 Restricted cash included in Other long-term assets: December 31, 2018: $10,789, December 31, 2017: $10,108, December 31, 2016 : $9,889, December 31, 2015: $9,889 Total cash, cash equivalents and restricted cash at end of period: December 31, 2018: $65,370, December 31, 2017: $79,374, December 31, 2016 : $223,828, December 31, 2015: $121,727