SolarWinds, Inc.
Reclassified Unaudited Condensed Consolidated Statement of Cash Flows
For Quarterly and Annual Periods of 2011 & 2012
Certain immaterial reclassifications have been made to our prior periods' condensed consolidated statement of cash flows to conform to the
current period presentation for the fourth quarter of 2012. These reclassifications impacted the classification of certain items within cash flows
from operations, investing and financing but had no impact on previously reported total cash flows, net income, total assets or stockholders'
equity. The enclosed tables present reconciliations of our condensed consolidated statement of cash flows from our prior quarterly filings for
2011 and 2012 and our 2011 annual filing to the revised presentation and have been provided for comparative reference purposes only.
The reclassifications are being provided to add to, but not replace, the related disclosures in our prior quarterly and annual filings and should
only be relied on in conjunction with such filings. The reclassifications are being provided as of February 4, 2013 and we do not intend, and
undertake no duty, to update this information to reflect subsequent events or circumstances. Further, we do not intend, and undertake no
duty, to provide any similar reclassifications of our consolidated statement of cash flows or other financial statements in the future.
SolarWinds, Inc.
Revised Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
Provision for doubtful accounts
Stock-based compensation expense
Accrued earnout (gain) loss
Deferred taxes
Excess tax benefit from stock-based compensation
Premium on investments
Other non-cash expenses
Changes in operating assets and liabilities, net of assets
acquired and liabilities assumed in business combinations:
Accounts receivable
Income taxes receivable
Prepaid and other current assets
Accounts payable
Accrued liabilities
Income taxes payable
Deferred revenue
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of investments
Maturities of investments
Purchases of property and equipment
Purchases of intangible assets and other
Acquisition of businesses, net of cash acquired
Earnout payments for acquisitions
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repurchase of common stock
Exercise of stock options
Excess tax benefit from stock-based compensation
Earnout payments for acquisitions
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents
Beginning of period
End of period
Supplemental disclosure of cash flow information
Cash paid (received) for income taxes
Noncash financing transactions
Accrued earnout
-
Twelve Months Ended
December 31, 2012
As Filed
Twelve Months Ended
December 31, 2011
As Filed
As Revised
Refer to
Notes
Below
$
62,443
$
62,443
$
81,343
A
-
9,957
97
10,690
(664)
2,123
(6,359)
622
9,957
97
10,690
(664)
2,123
(6,359)
(888)
622
18,359
258
15,264
(570)
(989)
(10,486)
(1,605)
1,432
-
(7,038)
(33)
(189)
56
747
19,886
19,080
111,418
(7,038)
(33)
(189)
56
747
19,886
19,080
110,530
(5,695)
(28)
(1,220)
1,807
4,473
18,565
22,539
143,447
A
B
(34,129)
4,000
(2,945)
(745)
(109,483)
(3,743)
(147,045)
(33,241)
4,000
(2,945)
(745)
(109,483)
(142,414)
(65,929)
33,930
(3,885)
(1,203)
(66,031)
(103,118)
B
(342)
11,919
6,359
17,936
(1,605)
(19,296)
(342)
11,919
6,359
(3,743)
14,193
(1,605)
(19,296)
(1,472)
10,622
10,486
(4,154)
15,482
1,184
56,995
$
142,003
122,707
$
142,003
122,707
$
122,707
179,702
$
1,013
$
1,013
$
15,285
$
3,938
$
3,938
$
1,547
A - Purchased Premiums and Discounts on Investments . We previously reported our purchases of investments net of any purchased premiums and
discounts within the "Purchases of investments" line item included in cash flows from investing activities. We now classify these purchased premium
and discounts within cash flows from operating activities. As such, the purchased premiums and discounts on investments have been reclassified to a
separate line item included in cash flows from operating activities.
B - Earnout Payments for Acquisitions . We previously classified acquisition related earnout payments as cash flows from investing activities as they
related to acquisitions; however, we now believe it is more appropriate to classify earnout payments within cash flows from financing activities as the
delayed payments for acquisitions are more analogous to financing activities.
SolarWinds, Inc.
Revised 2011 Quarterly Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Refer to
Notes
Below
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
Provision for doubtful accounts
Stock-based compensation expense
Accrued earnout (gain) loss
Deferred taxes
Excess tax benefit from stock-based compensation
Premium on investments
Other non-cash expenses
Changes in operating assets and liabilities, net of assets
acquired and liabilities assumed in business combinations:
Accounts receivable
Income taxes receivable
Prepaid and other current assets
Accounts payable
Accrued liabilities
Income taxes payable
Deferred revenue
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of investments
Maturities of investments
Purchases of property and equipment
Purchases of intangible assets and other
Acquisition of businesses, net of cash acquired
Earnout payments for acquisitions
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repurchase of common stock
Exercise of stock options
Excess tax benefit from stock-based compensation
Earnout payments for acquisitions
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents
Beginning of period
End of period
Supplemental disclosure of cash flow information
Cash paid (received) for income taxes
Noncash financing transactions
Accrued earnout
-
As Filed
$
Three Months Ended
June 30, 2011
As Filed *
Three Months Ended
March 31, 2011
As Revised
11,710
$
11,710
$
13,551
As Filed
$
Three Months Ended
September 30, 2011
As Revised
20,888
$
As Filed
20,888
$
Three Months Ended
December 31, 2011
As Revised
16,294
$
16,294
A
-
1,832
(11)
2,669
(472)
(3,565)
110
1,832
(11)
2,669
(472)
(3,565)
110
2,126
79
2,781
765
(874)
103
2,765
18
2,634
(1,600)
(257)
(693)
146
2,765
18
2,634
(1,600)
(257)
(693)
(722)
146
3,234
11
2,606
936
2,087
(1,227)
263
3,234
11
2,606
936
2,087
(1,227)
(166)
263
-
(288)
10
1,420
(278)
(2,885)
5,421
3,193
18,866
(288)
10
1,420
(278)
(2,885)
5,421
3,193
18,866
(1,866)
(119)
(1,672)
741
1,101
4,379
2,542
23,637
(6,108)
84
641
(125)
1,296
4,449
8,332
32,470
(6,108)
84
641
(125)
1,296
4,449
8,332
31,748
1,224
(8)
(578)
(282)
1,235
5,637
5,013
36,445
1,224
(8)
(578)
(282)
1,235
5,637
5,013
36,279
A
B
(598)
(108)
(23,000)
(3,743)
(27,449)
(598)
(108)
(23,000)
(23,706)
(465)
(184)
(649)
(30,179)
(780)
(262)
(35,483)
(66,704)
(29,457)
(780)
(262)
(35,483)
(65,982)
(3,950)
4,000
(1,102)
(191)
(51,000)
(52,243)
(3,784)
4,000
(1,102)
(191)
(51,000)
(52,077)
B
(305)
5,193
3,565
8,453
1,444
1,314
(305)
5,193
3,565
(3,743)
4,710
1,444
1,314
(2)
1,816
874
2,688
520
26,196
1,762
693
2,455
(1,911)
(33,690)
1,762
693
2,455
(1,911)
(33,690)
(35)
3,148
1,227
4,340
(1,658)
(13,116)
(35)
3,148
1,227
4,340
(1,658)
(13,116)
$
142,003
143,317
$
142,003
143,317
$
143,317
169,513
$
169,513
135,823
$
169,513
135,823
$
135,823
122,707
$
135,823
122,707
$
88
$
88
$
376
$
646
$
646
$
(97)
$
(97)
$
3,938
$
3,938
$
-
$
-
$
-
$
-
$
-
A - Purchased Premiums and Discounts on Investments . We previously reported our purchases of investments net of any purchased premiums
and discounts within the "Purchases of investments" line item included in cash flows from investing activities. We now classify these purchased
premium and discounts within cash flows from operating activities. As such, the purchased premiums and discounts on investments have been
reclassified to a separate line item included in cash flows from operating activities.
B - Earnout Payments for Acquisitions . We previously classified acquisition related earnout payments as cash flows from investing activities as
they related to acquisitions; however, we now believe it is more appropriate to classify earnout payments within cash flows from financing
activities as the delayed payments for acquisitions are more analogous to financing activities.
* There were no reclassifications related to this period.
SolarWinds, Inc.
Revised 2012 Quarterly Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2012
As Filed
As Revised
Refer to
Notes
Below
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
Provision for doubtful accounts
Stock-based compensation expense
Accrued earnout (gain) loss
Deferred taxes
Excess tax benefit from stock-based compensation
Premium on investments
Other non-cash expenses
Changes in operating assets and liabilities, net of assets
acquired and liabilities assumed in business combinations:
Accounts receivable
Income taxes receivable
Prepaid and other current assets
Accounts payable
Accrued liabilities
Income taxes payable
Deferred revenue
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of investments
Maturities of investments
Purchases of property and equipment
Purchases of intangible assets and other
Acquisition of businesses, net of cash acquired
Earnout payments for acquisitions
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repurchase of common stock
Exercise of stock options
Excess tax benefit from stock-based compensation
Earnout payments for acquisitions
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents
Beginning of period
End of period
Supplemental disclosure of cash flow information
Cash paid (received) for income taxes
Noncash financing transactions
Accrued earnout
-
$
17,131
$
Three Months Ended
June 30, 2012
As Filed
As Revised
17,131
$
19,427
$
Three Months Ended
December 31, 2012
As Filed
Three Months Ended
September 30, 2012
As Filed
As Revised
19,427
$
22,486
$
22,486
$
22,299
C
A
C
4,296
40
3,865
(495)
(3,309)
382
4,296
40
3,865
(70)
(495)
(3,309)
(168)
452
4,335
(33)
3,671
(1,160)
(1,875)
282
4,335
(33)
3,671
(1,160)
(1,875)
(899)
282
4,535
131
3,832
570
(3,737)
244
4,535
131
3,832
570
(3,737)
(111)
244
5,193
120
3,896
(500)
96
(1,565)
(427)
454
-
(814)
50
73
362
(1,394)
3,216
4,936
28,339
(814)
50
73
362
(1,394)
3,216
4,936
28,171
(1,236)
(14)
(656)
(95)
1,851
5,043
4,556
34,096
(1,236)
(14)
(656)
(95)
1,851
5,043
4,556
33,197
(10,294)
(14)
(618)
1,349
1,932
4,843
9,733
34,992
(10,294)
(14)
(618)
1,349
1,932
4,843
9,733
34,881
6,649
(50)
(19)
191
2,084
5,463
3,314
47,198
A
B
(11,948)
9,540
(771)
(141)
(11,034)
(3,203)
(17,557)
(11,780)
9,540
(771)
(141)
(11,034)
(14,186)
(30,136)
9,460
(789)
(761)
(9,850)
(32,076)
(29,237)
9,460
(789)
(761)
(9,850)
(31,177)
(7,161)
7,750
(1,521)
(166)
(27,439)
(951)
(29,488)
(7,050)
7,750
(1,521)
(166)
(27,439)
(28,426)
(17,862)
7,180
(804)
(135)
(17,708)
(29,329)
B
(1,334)
3,256
3,309
5,231
616
16,629
(1,334)
3,256
3,309
(3,203)
2,028
616
16,629
2,427
1,875
4,302
(1,650)
4,672
2,427
1,875
4,302
(1,650)
4,672
(138)
2,979
3,737
6,578
970
13,052
(138)
2,979
3,737
(951)
5,627
970
13,052
1,960
1,565
3,525
1,248
22,642
$
122,707
139,336
$
122,707
139,336
$
139,336
144,008
$
139,336
144,008
$
144,008
157,060
$
144,008
157,060
$
157,060
179,702
$
3,812
$
3,812
$
3,586
$
3,586
$
3,724
$
3,724
$
4,163
$
951
$
951
$
-
$
-
$
596
$
596
$
-
A - Purchased Premiums and Discounts on Investments . We previously reported our purchases of investments net of any purchased premiums
and discounts within the "Purchases of investments" line item included in cash flows from investing activities. We now classify these purchased
premium and discounts within cash flows from operating activities. As such, the purchased premiums and discounts on investments have been
reclassified to a separate line item included in cash flows from operating activities.
B - Earnout Payments for Acquisitions . We previously classified acquisition related earnout payments as cash flows from investing activities as
they related to acquisitions; however, we now believe it is more appropriate to classify earnout payments within cash flows from financing
activities as the delayed payments for acquisitions are more analogous to financing activities.
C - Q1 2012 Accrued Earnout Gain . Due to immateriality, our Q1 2012 Accrued Earnout Gain was not reported as a separate line item in our
condensed consolidated statement of cash flows and was instead included within the "Other non-cash expenses" line item within cash flows from
operating activities for that period. There have been no changes in the classification of our accrued earnout gain; however, for comparability
purposes we have included the accrued earnout gain as a separate line item in our condensed consolidated statement of cash flows.