Shutterfly 2014 Annual Report Download - page 66

The following table shows total capital expenditures including amounts accrued but not yet paid by
category for the years ended December 31, 2014, 2013 and 2012:
Year Ended December 31,
2014 2013 2012
(in thousands)
Technology equipment and software .................. $ 37,711 $ 31,935 $ 28,386
Percentage of total capital expenditures ............... 42% 42% 47%
Manufacturing equipment and building improvements ..... 26,872 26,880 19,843
Percentage of total capital expenditures ............... 30% 36% 33%
Capitalized software and website development costs ...... 21,748 15,760 12,528
Percentage of total capital expenditures ............... 24% 21% 21%
Rental equipment ............................... 3,912 395 —
Percentage of total capital expenditures ............... 4% 1% —%
Total Capital Expenditures .......................... $ 90,243 $ 74,970 $ 60,757
Percentage of net revenues .......................... 10% 10% 9%
Operating Activities. For 2014, net cash provided by operating activities was $166.5 million, primarily
due to our net loss of $7.9 million and adjustments for non-cash items including $64.9 million of
depreciation and amortization, $61.8 million of stock-based compensation, and $33.9 million of
amortization of intangible assets. Net cash provided by operating activities was also adjusted for
amortization of debt discount and transaction costs of $12.9 million and the net change in operating assets
and liabilities of $4.4 million.
For 2013, net cash provided by operating activities was $147.3 million, primarily due to our net income
of $9.3 million and adjustments for non-cash items including $53.5 million of stock-based compensation,
$43.9 million of depreciation and amortization, and $31.0 million of amortization of intangible assets. Net
cash provided by operating activities was also adjusted for amortization of debt discount and transaction
costs of $7.7 million and the net change in operating assets and liabilities of $2.2 million.
For 2012, net cash provided by operating activities was $151.4 million, primarily due to our net income
of $23.0 million and the net change in operating assets and liabilities of $43.8 million. Net cash provided by
operating activities was adjusted for non-cash items including $50.1 million of depreciation and
amortization expense and $37.3 million of stock-based compensation.
Investing Activities. For 2014, net cash used in investing activities was $197.4 million. We used
$124.1 million to purchase investments. We used $71.2 million for capital expenditures for computer and
network hardware to support our website infrastructure and information technology systems and for
production equipment for our manufacturing and production operations, $21.0 million for capitalized
software and website development, and $12.0 million to acquire certain assets of Groovebook. This was
partially offset from proceeds from the sale of investments, and equipment and rental assets of
$30.0 million and $0.9 million, respectively.
For 2013, net cash used in investing activities was $154.8 million. We used $76.9 million to acquire
MyPublisher, R&R Images, and BorrowLenses, net of cash acquired, and to settle other acquisition
related liabilities. We used $62.6 million for capital expenditures for computer and network hardware and
production equipment for our manufacturing operations, and $15.8 million of capitalized software and
website development. Additionally, we received proceeds of $0.4 million from the sale of equipment.
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