Priceline 2015 Annual Report Download - page 68

Liquidity and Capital Resources
As of December 31, 2015 , we had $10.6 billion in cash, cash equivalents, short-term investments and long-term investments. Approximately $9.8 billion
is held by our international subsidiaries and is denominated primarily in U.S. Dollars, Euros and, to a lesser extent, British Pounds Sterling and other currencies.
We currently intend to indefinitely reinvest these funds outside of the United States. If we repatriate cash to the United States, we would utilize our net operating
loss carryforwards and beyond that amount incur additional tax payments in the United States. Cash equivalents, short-term investments and long-term investments
are comprised of U.S. and foreign corporate bonds, U.S. and foreign government securities, high-grade commercial paper, U.S. government agency securities,
Ctrip American Depositary Shares ("ADSs") and bank deposits.
On May 26, 2015, we invested $250 million in five -year senior convertible notes issued at par by Ctrip.com International Ltd. ("Ctrip"). On December
11, 2015, we invested $500 million in a ten-year senior convertible note issued at par value by Ctrip. During 2015, we invested an additional $208.4 million in
Ctrip ADSs.
In June 2015, we entered into a $2.0 billion five-year unsecured revolving credit facility with a group of lenders. Borrowings under the revolving credit
facility will bear interest, at our option, at a rate per annum equal to either (i) the adjusted LIBOR for the interest period in effect for such borrowing plus an
applicable margin ranging from 0.875% to 1.50% ; or the greatest of (a) Bank of America, N.A.'s prime lending rate, (b) the federal funds rate plus 0.5% , and (c)
an adjusted LIBOR for an interest period of one month plus 1.00% , plus an applicable margin ranging from 0.00% to 0.50% . Undrawn balances available under
the revolving credit facility are subject to commitment fees at the applicable rate ranging from 0.085% to 0.20% .
The revolving credit facility provides for the issuance of up to $70.0 million of letters of credit as well as borrowings of up to $50.0 million on same-day
notice, referred to as swingline loans. Borrowings under the revolving credit facility may be made in U.S. Dollars, Euros, British Pounds Sterling and any other
foreign currency agreed to by the lenders. The proceeds of loans made under the facility will be used for working capital and general corporate purposes. As of
December 31, 2015 , there were no borrowings outstanding and approximately $2.5 million of letters of credit issued under the facility.
During the year ended December 31, 2015 , we repurchased 2,539,921 shares of our common stock for an aggregate cost of $3.1 billion . As of December
31, 2015, there was no remaining authorization from our Board of Directors to purchase our common stock.
In the first quarter of 2016, the Board of Directors authorized a program allowing us to purchase of up to $3.0 billion of our common stock. We may from
time to time make repurchases of our common stock, depending on prevailing market conditions, alternate uses of capital and other factors. We expect to use cash
on hand and generated by our operations in the United States to fund our share repurchases. We may also utilize our revolving credit facility or raise funds through
the debt capital markets to fund share repurchases.
In September 2015, we paid $18.4 million to settle a contingent liability related to an acquisition. The portion of the payment related to the acquisition-
date estimated fair value of $10.7 million is shown as a financing activity and the remaining portion of the payment for $7.7 million , which was charged to general
and administrative expenses as a fair value adjustment, is included as an operating activity in the Consolidated Statement of Cash Flows for the year ended
December 31, 2015 .
In March 2015, we issued Senior Notes due 2027 for an aggregate principal amount of 1.0 billion Euros, with an interest rate of 1.8% . Interest on the
notes is payable annually on March 3, beginning March 3, 2016. In addition, in March 2015, we issued $500 million aggregate principal amount of Senior Notes
due 2025, with an interest rate of 3.65% . Interest on the 2025 Notes is payable semi-annually on March 15 and September 15, beginning September 15, 2015. In
November 2015, we issued Senior Notes due 2022 for an aggregate principal amount of 750 million Euros, with an interest rate of 2.15% . Interest on the 2022
Notes is payable annually on November 25, beginning November 25, 2016. The net proceeds of these notes were used for general corporate purposes. See Note 10
to the Consolidated Financial Statements for further details on these notes.
In March 2015, in connection with the maturity or conversion prior to maturity of the remaining outstanding 1.25% Convertible Senior Notes due March
15, 2015, we paid $37.5 million to satisfy the aggregate principal amount due and paid an additional $110.1 million in satisfaction of the conversion value in
excess of the principal amount.
Our merchant transactions are structured such that we collect cash up front from consumers and then we pay most of our travel service providers at a
subsequent date. We therefore tend to experience significant swings in accounts receivable,
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