Shutterfly 2014 Annual Report Download - page 65

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For information about our repurchases of shares of our common stock during the years ended
December 31, 2014 and 2013, see Part II, Item 8 of this annual report on Form 10-K ‘‘Financial Statements
and Supplementary Data — Notes to Consolidated Financial Statements — Note 11 — Share Repurchase
program.’’
Below is our cash flow activity for the years ended December 31, 2014, 2013 and 2012:
Year Ended December 31,
2014 2013 2012
(in thousands)
Consolidated Statements of Cash Flows Data:
Purchases of property and equipment .................. $ 71,169 $ 62,582 $ 40,535
Capitalization of software and website development costs .... 21,032 15,760 12,528
Depreciation and amortization ....................... 98,752 74,856 50,109
Acquisition of business and intangible assets, net of cash
acquired ...................................... 12,000 76,893 57,212
Cash flows provided by operating activities ............... 166,488 147,268 151,381
Cash flows used in investing activities .................. (197,428) (154,847) (109,289)
Cash flows provided by/(used in) financing activities ........ (87,601) 261,575 23,081
We anticipate that our current cash balance and cash generated from operations will be sufficient to
meet our strategic and working capital requirements, lease obligations, share repurchase program,
technology development projects, and coupon payments for our 0.25% convertible senior notes for at least
the next twelve months. Whether these resources are adequate to meet our liquidity needs beyond that
period will depend on our growth, operating results and the capital expenditures required to meet possible
increased demand for our products. If we require additional capital resources to grow our business
internally or to acquire complementary technologies and businesses at any time in the future, we may seek
to sell additional debt or additional equity. The sale of additional equity or convertible debt could result in
significant dilution to our stockholders. Financing arrangements may not be available to us, or may not be
in amounts or on terms acceptable to us.
We anticipate that total 2015 capital expenditures will range from 8.6% to 9.2% of our expected net
revenues in 2015, which includes additional investments related to our Tempe, Arizona production facility,
which we expect will be operational in 2015. These expenditures will be used to purchase technology and
equipment to support the growth in our business, to increase our production capacity, and help enable us
to respond more quickly and efficiently to customer demand. A smaller but significant component of these
expenditures includes costs associated with capitalized software and website development, as we continue
to support our innovative engineering and product development strategies. This range of capital
expenditures is not outside the ordinary course of our business or materially different from how we have
expanded our business in the past.
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