Shutterfly 2012 Annual Report Download - page 65

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SHUTTERFLY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2012 2011 2010
Cash flows from operating activities:
Net income ....................................... $ 22,998 $ 14,048 $ 17,127
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization ......................... 29,424 22,316 23,429
Amortization of intangible assets ....................... 20,685 12,136 2,543
Stock-based compensation, net of forfeitures ............... 37,322 33,870 16,366
Gain on disposal of property and equipment ............... (861) (301) (345)
Deferred income taxes .............................. 54 (5,766) 2,021
Tax benefit from stock-based compensation ................ 14,619 8,391 5,973
Excess tax benefits from stock-based compensation ........... (16,622) (8,380) (5,967)
Gain on auction rate securities Rights ................... — — (6,266)
Loss on auction rate securities ......................... — — 6,266
Changes in operating assets and liabilities:
Accounts receivable, net ........................... (577) (7,205) 688
Inventories ..................................... (1,306) 766 (558)
Prepaid expenses and other current assets ............... (1,399) (5,667) (2,402)
Other assets .................................... 212 (1,402) 2
Accounts payable ................................ 15,230 (16,458) 8,652
Accrued and other liabilities ......................... 26,610 12,255 5,817
Deferred revenue ................................ 5,739 1,870 1,128
Other non-current liabilities ......................... (747) 2,775 1,687
Net cash provided by operating activities .............. 151,381 63,248 76,161
Cash flows from investing activities:
Acquisition of business and intangibles, net of cash acquired ...... (57,212) (133,705) (5,981)
Purchases of property and equipment ..................... (40,535) (23,149) (14,405)
Capitalization of software and website development costs ........ (12,528) (10,050) (7,405)
Proceeds from sale of equipment ........................ 986 676 2,476
Proceeds from the sale of auction rate securities .............. — — 47,925
Net cash provided by (used in) investing activities ........ (109,289) (166,228) 22,610
Cash flows from financing activities:
Proceeds from issuance of common stock upon exercise of stock
options ......................................... 10,211 22,277 14,703
Repurchases of common stock .......................... (3,752) — —
Excess tax benefits from stock-based compensation ............ 16,622 8,380 5,967
Principal payments of capital lease obligations ............... — (6) (9)
Net cash provided by financing activities ............... 23,081 30,651 20,661
Net increase (decrease) in cash and cash equivalents ........... 65,173 (72,329) 119,432
Cash and cash equivalents, beginning of period ............... 179,915 252,244 132,812
Cash and cash equivalents, end of period ................... $ 245,088 $ 179,915 $ 252,244
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest ......................................... $ — $ — $ 1
Income taxes ..................................... 618 140 663
Supplemental schedule of non-cash investing activities:
Net increase in accrued purchases of property and equipment . . . $ 7,694 $ 412 $ 556
Estimated fair market value of building under build-to-suit lease . 6,372 — —
Amount due for acquisition of business .................. 963 — —
The accompanying notes are an integral part of these consolidated financial statements.
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