Avid 2014 Annual Report Download - page 54

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48
Cash Flows
The following table summarizes our cash flows for the years ended December 31, 2014, 2013 and 2012 (in thousands):
Year Ended December 31,
2014 2013 2012
Net cash (used in) provided by operating activities $(9,897) $ (9,145) $ 34,709
Net cash (used in) provided by investing activities (11,800)(11,536) 1,697
Net cash (used in) provided by financing activities (436)(96) 354
Effect of foreign currency exchange rates on cash and cash equivalents (1,014)(1,410) 775
Net (decrease) increase in cash and cash equivalents $ (23,147) $ (22,187) $ 37,535
Cash Flows from Operating Activities
Cash used in operating activities aggregated $9.9 million for the year ended December 31, 2014. The cash usage during 2014 was
attributable to costs associated with restatement-related activities, and to a lesser extent, restructuring activities. The use of cash
associated with the restatement and restructuring activities was materially abated at the end of 2014, however, we do expect
residual payments into 2015.
Working capital items, excluding cash, decreased by $47.5 million in the aggregate for the year ended December 31, 2014,
reflecting primarily the non-cash amortization of pre-2011 deferred revenues, partially offset by improvements in cash collections
of accounts receivable and lower cash investments in inventory.
Accounts receivable decreased $2.1 million for the year ended December 31, 2014, largely reflecting improved cash collections.
Accounts receivable balances are net of allowances for sales returns, bad debts and customer rebates, all of which we estimate and
record based primarily on historical experience.
Inventory decreased $12.1 million for the year ended December 31, 2014, reflecting our efforts to further optimize working
capital investments through improved supply chain discipline. Inventory includes component parts, finished goods as well as
inventory at customer sites related to shipments for which we have not yet recognized revenue. Inventory is sourced from third
party suppliers, located primarily in Asia.
Cash Flows from Investing Activities
For the year ended December 31, 2014, net cash used in investing activities primarily reflected $13.3 million used for the
purchase of property and equipment. Our purchases of property and equipment typically consist of computer hardware and
software to support our R&D activities and information systems. We expect our 2015 capital expenditures to be materially
consistent with those for 2014.
Cash Flows from Financing Activities
For the year ended December 31, 2014, net cash used in financing activities primarily reflected costs associated with tax
withholding obligations related to the issuance of common stock upon vesting of restricted stock awards. At December 31, 2014,
we had no outstanding borrowings under the credit facilities.