Depreciation and amortization
Depreciation and amortization expense totaled $5.2 million for the current year quarter as compared to $4.0 million in the prior year quarter. The increase in depreciation and amortization expense derives from our investment in assets to support our efforts to launch a potential network.
Investment and Other (Expense) Income
Investment income, interest and other expense, net, yielded expense of $1.3 million compared to income of $0.5 million in the prior year quarter, reflecting incremental expenses associated with other non-income taxes and realized foreign exchange losses as compared to gains in the prior year quarter.
Effective tax rate
In the current quarter, the effective tax rate was 37% as compared to 7% in the prior year quarter. The 7% rate in the prior year quarter was primarily due to the recognition of a $4.1 million benefit related to previously unrecognized tax benefits.
Net cash used in operating activities was $5.9 million for the three months ended March 31, 2013 as compared to $32.4 million generated by operating activities in the prior year quarter. This $38.3 million decrease was driven by an approximate $12.3 million reduction in operating performance, an $11.0 million increase in the annual payout of management incentive compensation (with the return to a more normalized level of management compensation in 2012), an $8.0 million impact due to the recognition of an advance associated with the termination of our video game license with THQ, and a $5.3 million increase in net tax payments. Additionally, changes in working capital associated with our international live event tours and pay-per-view events contributed to the decline in net cash flow provided by operating activities compared to the prior year quarter.
Purchases of property and equipment and other assets declined by $8.4 million from the prior year period, primarily due to lower investment in assets to support our efforts to create and distribute new content, including through a potential network.
Wrestling INC. Podcast: Hulk Hogan Twitter Stupidity, Raw Review, & UFC 190 Preview
John Cena Injury Update From Last Night's RAW
** SPOILERS ** TNA Impact Wrestling Tapings From 7/27
Photo: John Cena Suffers Broken Nose On RAW
Security Asks Fans To Stop Streaming At RAW, Finn Balor Milestone, Becky Lynch On WWE SmackDown
More Special Guests For This Week's WWE Tough Enough, Lita Wears A GoPro In The Ring (Video)
Ronda Rousey UFC Embedded Episode, UFC Rankings Movement, UFC 190 Countdown (Video)
WWE Monday Night RAW Results: John Cena Defends, Divas Matches, Wyatts, More
WWE Star Fuels Rumors On A Possible Gimmick Change
Big Update On The Rumors Of WWE SummerSlam Being A Four Hour Pay-Per-View This Year
Rey Mysterio On How He Left WWE, If Door Is Open To Go Back, Never Winning WWE IC Title, More
More Racist Comments By Hulk Hogan Released