LinkedIn 2014 Annual Report Download - page 72

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funds outside the U.S. and our current plans do not demonstrate a need to repatriate them to fund our
domestic operations. We do not provide for federal income taxes on the undistributed earnings of our
foreign subsidiaries. However, we believe the income tax liability would be insignificant if these
earnings were to be repatriated. We believe that our existing cash and cash equivalents and
marketable securities balances, together with cash generated from operations, will be sufficient to meet
our working capital expenditure requirements for at least the next 12 months.
Operating Activities
Operating activities provided $569.0 million of cash in 2014. The cash flow from operating activities
consisted primarily of the changes in our operating assets and liabilities, with deferred revenue
increasing $129.3 million and accounts payable and other liabilities increasing $150.0 million, partially
offset by an increase in accounts receivable of $137.6 million, and an increase in excess tax benefit
from stock-based compensation of $99.2 million, which is reclassified as a financing activity. The
increase in our deferred revenue and accounts payable and other liabilities was primarily due to
increases in transaction volumes in 2014 compared to 2013. We had a net loss in 2014 of
$15.3 million, which included non-cash stock-based compensation of $319.1 million and non-cash
depreciation and amortization of $236.9 million.
Operating activities provided $436.5 million of cash in 2013. The cash flow from operating activities
consisted primarily of the changes in our operating assets and liabilities, with deferred revenue
increasing $134.5 million and accounts payable and other liabilities increasing $114.7 million, partially
offset by an increase in accounts receivable of $102.6 million, and an increase in excess tax benefit
from stock-based compensation of $43.8 million, which is reclassified as a financing activity. The
increases in our deferred revenue and accounts payable and other liabilities were primarily due to
increases in transaction volumes in 2013 compared to 2012. We had net income in 2013 of
$26.8 million, which included non-cash stock-based compensation of $193.9 million and non-cash
depreciation and amortization of $134.5 million.
Operating activities provided $267.1 million of cash in 2012. The cash flow from operating activities
consisted primarily of the changes in our operating assets and liabilities, with deferred revenue
increasing $117.9 million and accounts payable and other liabilities increasing $85.6 million, partially
offset by an increase in accounts receivable of $91.3 million, an increase in excess tax benefit from the
exercise of stock options of $35.8 million, which is reclassified as a financing activity, and an increase
in prepaid expenses and other assets of $13.0 million. The increases in our deferred revenue and
accounts receivable were primarily due to increases in transaction volumes in 2012 compared to 2011.
We had net income in 2012 of $21.6 million, which included non-cash depreciation and amortization of
$79.8 million and non-cash stock-based compensation of $86.3 million.
Investing Activities
Our primary investing activities consisted of purchases of investments, purchases of property and
equipment, as well as payments for acquisitions and intangible assets. We continued to invest in
technology hardware to support our growth, software to support website functionality development,
website operations and our corporate infrastructure. Purchases of property and equipment may vary
from period to period due to the timing of the expansion of our operations. Our planned purchases of
property and equipment for 2015 are expected to be in the range of $525.0 million and $550.0 million.
In 2014, we had net purchases of investments of $1,472.3 million, purchases of property and
equipment of $547.6 million, which includes $178.7 million in purchases of land, and payments for
intangible assets and acquisitions, net of cash acquired, of $253.5 million. In 2013, we had net
purchases of investments of $1,055.4 million, purchases of property and equipment of $278.0 million,
and payments for intangible assets and acquisitions, net of cash acquired, of $19.2 million. In 2012, we
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