TripAdvisor 2013 Annual Report Download - page 82

TRIPADVISOR, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2013 2012 2011
Operating activities:
Net income ................................................................................... $205,443 $ 194,588 $ 177,791
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment, including amortization of internal-use software and website
development ............................................................................ 29,495 19,966 18,362
Stock-based compensation ................................................................... 48,953 30,102 17,344
Amortization of intangible assets .............................................................. 5,731 6,110 7,523
Amortization of deferred financing costs ........................................................ 779 889 21
Amortization of discounts and premiums on marketable securities, net ................................ 4,905 527 —
Deferred tax (benefit) expense ................................................................ 5,473 (4,960) (931)
Excess tax benefits from stock-based compensation ............................................... (12,425) (2,717) (1,571)
Provision (recovery) for doubtful accounts ...................................................... 1,485 (1,050) 909
Foreign currency transaction (gains) losses, net .................................................. (154) 1,644 209
Other, net ................................................................................ 1,691 187 (131)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable .................................................................... (16,184) (11,810) (15,910)
Receivable from Expedia,net ............................................................. 8,099 (16,921) —
Taxes receivable ....................................................................... 9,952 (24,243) —
Prepaid expenses and other assets ......................................................... (3,655) (3,305) (1,821)
Accounts payable ...................................................................... (5,884) 15,322 4,133
Deferred merchant payable .............................................................. 16,767 (1,345) 1,752
Taxes payable ......................................................................... 16,852 7,073 3,244
Accrued expenses and other liabilities ...................................................... 23,404 17,067 82
Deferred revenue ...................................................................... 8,796 11,942 6,876
Net cash provided by operating activities ......................................................... 349,523 239,066 217,882
Investing activities:
Acquisitions, net of cash acquired ............................................................. (34,819) (3,007) (7,894)
Capital expenditures, including internal-use software and website development costs .................... (55,455) (29,282) (21,323)
Purchases of marketable securities ............................................................ (432,373) (218,922) —
Sales of marketable securities ................................................................ 174,723 — —
Maturities of marketable securities ............................................................ 150,780 — 20,090
Distribution to Expedia related to Spin-Off ...................................................... — 7,028 (405,516)
Acquisitions, net of cash acquired, from Expedia ................................................. — — (28,099)
Transfers to Expedia, net .................................................................... — — (95,967)
Other, net ................................................................................ 350 — (153)
Net cash used in investing activities .............................................................. (196,794) (244,183) (538,862)
Financing activities:
Repurchase of common stock ................................................................ (145,221) — —
Proceeds from credit facilities ................................................................ 10,201 15,372 18,158
Payments on credit facilities ................................................................. (14,728) (10,000) —
Principal payments on long-term debt .......................................................... (40,000) (20,000) —
Proceeds from issuance of long-term debt, net of issuance costs ..................................... — — 396,516
Proceeds from exercise of stock options and warrants ............................................. 23,703 230,711 —
Payment of minimum withholding taxes on net share settlements of equity awards ...................... (13,907) (6,675) —
Excess tax benefits from stock-based compensation ............................................... 12,425 2,717 1,571
Payments on construction in process related to build to suit lease obligations ........................... (2,148) — —
Payments to purchase subsidiary shares from noncontrolling interest ................................. — (22,304) —
Acquisitions funded by Expedia .............................................................. — — 5,135
Payments on acquisition earn-out ............................................................. — — (9,546)
Net cash (used) provided by financing activities .................................................... (169,675) 189,821 411,834
Effect of exchange rate changes on cash and cash equivalents ....................................... 579 (721) (455)
Net (decrease) increase in cash and cash equivalents ................................................ (16,367) 183,983 90,399
Cash and cash equivalents at beginning of year ...................................................... 367,515 183,532 93,133
Cash and cash equivalents at end of year ......................................................... $351,148 $ 367,515 $ 183,532
Supplemental disclosure of cash flow information:
Income taxes paid directly to taxing authorities, net of refunds ...................................... $ 49,989 $ 107,799 $ 42,220
Income taxes paid to Expedia ................................................................ — — 49,570
Total income taxes paid, net of refunds ......................................................... $ 49,989 $ 107,799 $ 91,790
Cash paid during the period for interest ......................................................... $ 8,291 $ 9,792 $ 313
Supplemental disclosure of non-cash investing and financing activities:
Capitalization of construction in-process related to build to suit lease obligation ......................... $ 7,877 — —
Non-cash fair value increase for redeemable noncontrolling interests ................................. — $ 14,617 $ 571
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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