F-7
ISISPHARMACEUTICALS, INC.
CONSOLIDATEDSTATEMENTSOFCASHFLOWS
(In thousands)
YearsEndedDecember 31,
2013
2012
2011
Operating activities:
Net loss ......................................................................................................... $
(60,644) $
(65,478) $
(84,801)
Adjustments to reconcile net loss tonet cashprovidedby (used in)
operating activities:
Depreciation ..............................................................................................
6,591
7,074
6,594
Amortization of patents .............................................................................
1,184
1,224
1,938
Amortization of licenses ...........................................................................
2,007
2,457
3,252
Amortization of premiumon investments, net ..........................................
5,572
4,193
5,410
Amortization of debt issuance costs ..........................................................
415
619
507
Amortization of 2
5
8
percent convertible subordinatednotes discount ......
—
6,169
8,553
Amortization of 2
3
4
percent convertible senior notes discount .................
6,344
2,268
—
Amortization of long-term financing liability for leased facility ..............
6,567
6,503
2,872
Share-based compensation expense ..........................................................
11,418
8,571
9,845
Equity in net loss ofRegulusTherapeutics Inc. ........................................
—
1,406
3,554
Gainon investment inRegulus Therapeutics Inc. .....................................
—
(18,356)
—
Loss on early retirement of debt ...............................................................
—
4,770
—
Gainon investments, net ...........................................................................
(2,378)
(1,465)
(4,182)
Non-cash losses related topatents, licensing andproperty, plant and
equipment ..............................................................................................
6,306
825
1,924
Taxbenefit fromother unrealizedgains on securities ..............................
(5,914)
(9,111)
—
Changes inoperating assets and liabilities:
Contracts receivable ..............................................................................
(10,580)
6,399
(5,679)
Inventories ............................................................................................
(1,912)
(1,982)
(1,655)
Other current and long-term assets .......................................................
(1,091)
279
914
Accounts payable ..................................................................................
66
1,292
875
Accrued compensation ..........................................................................
4,290
(1,305)
2,352
Deferred rent .........................................................................................
217
255
382
Accrued liabilities .................................................................................
6,691
(3,254)
6,273
Deferred contract revenue .....................................................................
88,344
48,523
(70,857)
Net cashprovided by (used in) operating activities ..........................
63,493
1,876
(111,929)
Investing activities:
Purchases of short-term investments .....................................................
(425,554)
(217,877)
(371,108)
Proceeds from the sale of short-term investments ................................
172,762
242,659
488,918
Purchases of property, plant and equipment .........................................
(1,552)
(1,479)
(10,203)
Acquisition of licenses andother assets, net .........................................
(3,810)
(3,691)
(3,667)
Investment inRegulus Therapeutics Inc. ..............................................
—
(3,000)
—
Purchases of strategic investments ........................................................
—
(790)
(359)
Proceeds from the sale of strategic investments ....................................
2,428
2,177
4,445
Net cash (used in) providedby investing activities ...........................
(255,726)
17,999
108,026
Financing activities:
Proceeds from equity awards ................................................................
62,958
9,470
3,567
Proceeds from issuance of 2
3
4
percent convertible senior notes,
net of issuance costs ..........................................................................
—
194,697
—
Principal andpremiumpayment on redemptionof the 2
5
8
percent
convertible subordinatednotes ..........................................................
—
(163,718)
—
Proceeds frompublic common stock offering ......................................
173,292
—
—
Proceeds from equipment financing arrangement .................................
2,513
9,100
1,625
Principal payments on debt and capital lease obligations .....................
(11,039)
(10,419)
(5,864)
Net cashprovided by (used in) financing activities ..........................
227,724
39,130
(672)
Net increase (decrease) in cash and cash equivalents ...................................
35,491
59,005
(4,575)
Cash and cash equivalents at beginningof year ....................................
124,482
65,477
70,052
Cash and cash equivalents at end of year .............................................. $ 159,973 $
124,482 $
65,477
