Expedia 2013 Annual Report Download - page 69

We continue to invest in the development and expansion of our operations. Ongoing investments include but
are not limited to improvements in infrastructure, which include our servers, networking equipment and software,
release improvements to our software code, platform migrations and consolidation and search engine marketing
and optimization efforts. Our future capital requirements may include capital needs for acquisitions (including
purchases of non-controlling interest), share repurchases, dividend payments or expenditures in support of our
business strategy; thus reducing our cash balance and/or increasing our debt. Our capital expenditures for 2014
are expected to be broadly in line to below 2013 spending levels.
Our cash flows are as follows:
Year ended December 31, $ Change
2013 2012 2011 2013 vs 2012 2012 vs 2011
(In millions)
Cash provided by (used in) continuing operations:
Operating activities $ 763 $1,237 $ 826 $(474) $411
Investing activities (526) (368) (463) (158) 95
Financing activities (493) (273) (353) (220) 80
Net cash provided by (used in) discontinued operations 14 (8) 77 21 (85)
Effect of foreign exchange rate changes on cash and cash
equivalents (31) 15 (18) (46) 33
In 2013, net cash provided by operating activities from continuing operations decreased by $474 million
primarily due to lower benefits from working capital resulting from a decrease in the rate of growth in our
merchant hotel business compared to the prior year, a working capital detriment due to changes in non-merchant
accounts payable as well as an increase in general excise tax assessments and income tax payments. In 2012, net
cash provided by operating activities from continuing operations increased by $411 million primarily due to
increased benefits from working capital changes.
In 2013, cash used in investing activities from continuing operations increased $158 million primarily due to
an increase of cash used for acquisitions of $342 million, an increase in capital expenditures of $73 million,
which includes a 50% ownership interest in an aircraft for which we paid $25 million, partially offset by $286
million of cash provided by net sales of investments in 2013 compared to $82 million in 2012 as well as higher
cash provided by the net settlement of currency forwards of $54 million. In 2012, cash used in investing activities
from continuing operations represented a positive change of $95 million primarily due to $82 million of cash
provided by net sales of investments in 2012 compared to $216 million of cash used in the net purchases of
investment in 2011, partially offset by an increase of cash used for acquisitions of $164 million and higher
capital expenditures of $28 million in 2012.
Cash used in financing activities from continuing operations in 2013 primarily included cash paid to acquire
shares of $523 million, including the repurchased shares under the 2012 authorization discussed below, as well as
$76 million cash dividend payments, partially offset by $82 million of proceeds from the exercise of options and
employee stock purchase plans as well as the issuance of treasury stock. Cash used in financing activities from
continuing operations in 2012 primarily included cash paid to acquire shares of $418 million, including the
repurchased shares under the authorizations discussed below, as well as $130 million cash dividend payments,
partially offset by $241 million of proceeds from the exercise of equity awards, including the warrants discussed
below. Cash used in financing activities from continuing operations in 2011 primarily included cash paid to
acquire shares of $294 million, as well as $77 million in cash dividend payments, a net $22 million outflow
related to the 2011 eLong transactions and our purchase of additional interests in another subsidiary, partially
offset by $34 million of proceeds from the exercise of equity awards.
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