TripAdvisor 2012 Annual Report Download - page 79

TRIPADVISOR, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(in thousands)
Year ended December 31,
2012 2011 2010
Operating activities:
Net income ........................................................................ $194,588 $ 177,791 $ 138,954
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment, including internal-use software and website
development costs ............................................................. 19,966 18,362 12,871
Stock-based compensation ........................................................ 30,102 17,344 7,183
Amortization of intangible assets ................................................... 6,110 7,523 14,609
Amortization of deferred financing costs ............................................. 889 21 —
Amortization of discounts and premiums on marketable securities, net ..................... 527 — —
Deferred tax benefit ............................................................. (4,960) (931) (653)
Excess tax benefits from stock-based compensation .................................... (2,717) (1,571) (1,813)
(Recovery) provision for doubtful accounts ........................................... (1,050) 909 3,383
Foreign currency transaction (gains) losses, net ........................................ 1,644 209 (541)
Other, net ...................................................................... 187 (131) 164
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable ......................................................... (11,810) (15,910) (14,853)
Related parties .............................................................. (16,921) — —
Taxes receivable ............................................................ (24,243) — —
Prepaid expenses and other assets ............................................... (3,305) (1,821) (328)
Accounts payable ........................................................... 13,977 5,885 1,273
Taxes payable .............................................................. 7,073 3,244 17,359
Accrued expenses and other liabilities ........................................... 17,067 82 9,707
Deferred revenue ............................................................ 11,942 6,876 9,600
Net cash provided by operating activities ............................................... 239,066 217,882 196,915
Investing activities:
Acquisitions, net of cash acquired .................................................. (3,007) (7,894) (34,446)
Capital expenditures, including internal-use software and website development costs .......... (29,282) (21,323) (18,813)
Transfers to Expedia, net ......................................................... — (95,967) (66,421)
Acquisitions, net of cash acquired, from Expedia ...................................... — (28,099) —
Distribution to Expedia related to Spin-Off ........................................... 7,028 (405,516) —
Purchase of marketable securities and other investments ................................. (218,922) — (20,090)
Proceeds from maturities of marketable securities and other investments .................... — 20,090 —
Other ......................................................................... — (153) —
Net cash used in investing activities .................................................... (244,183) (538,862) (139,770)
Financing activities:
Acquisitions funded by Expedia .................................................... — 5,135 —
Payments on acquisition earn-out ................................................... — (9,546) —
Payments to purchase subsidiary shares from noncontrolling interest ....................... (22,304) — —
Proceeds from credit facilities ...................................................... 15,372 18,158 1,733
Payments on credit facilities ....................................................... (10,000) — —
Principal payments on long-term debt ............................................... (20,000) — —
Proceeds from issuance of long-term debt, net of issuance costs ........................... — 396,516 —
Proceeds from exercise of stock options and warrants ................................... 230,711 — —
Payment of minimum withholding taxes on net share settlements of equity awards ............ (6,675) — —
Excess tax benefits from stock-based compensation .................................... 2,717 1,571 1,813
Change in restricted cash ......................................................... — — 475
Net cash provided by financing activities ............................................... 189,821 411,834 4,021
Effect of exchange rate changes on cash and cash equivalents ............................ (721) (455) 603
Net increase in cash and cash equivalents .............................................. 183,983 90,399 61,769
Cash and cash equivalents at beginning of year ............................................ 183,532 93,133 31,364
Cash and cash equivalents at end of year ............................................... $367,515 $ 183,532 $ 93,133
Supplemental disclosure of cash flow information:
Income taxes paid directly to taxing authorities, net ..................................... $107,799 $ 42,220 $ 26,654
Income taxes paid to Expedia, Inc. .................................................. — 49,570 41,333
Total income taxes paid, net ....................................................... $107,799 $ 91,790 $ 67,987
Cash paid during the period for interest .............................................. $ 9,792 $ 313 $ 7
Supplemental disclosure of non-cash investing and financing activities:
Non-cash fair value increase for redeemable noncontrolling interests ....................... $ 14,617 $ 571 $ 1,152
Distribution receivable from Expedia, Inc. ............................................ — (7,028) —
The accompanying notes are an integral part of these consolidated and combined financial statements.
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