TripAdvisor 2014 Annual Report Download - page 56

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Letters of Credit
As of December 31, 2014, we have issued unused letters of credit totaling $1 million, related to our property leases.
Sources and Uses of Cash
Our cash flows from operating, investing and financing activities, as reflected in the consolidated statements of cash flows, are
summarized in the following table:
Year ended December 31,
2014 2013 2013
(in millions)
N
et cash provided by (used in):
Operating activities ........................................................... $ 387 $ 349 $ 239
Investing activities ............................................................ (234) (196 ) (244)
Financing activities ........................................................... (41) (170 ) 190
Our principal source of liquidity is cash flows generated from operations, although liquidity needs can also be met through
drawdowns under our credit facilities discussed above. As of December 31, 2014 and 2013, we had $594 million and $670 million of
cash, cash equivalents and short and long-term available-for-sale marketable securities. As of December 31, 2014 approximately $435
million of our cash, cash equivalents and short and long-term marketable securities are held by our international subsidiaries, primarily
in the United Kingdom, and are related to earnings we intend to reinvest permanently outside the United States. Cumulative
undistributed earnings of foreign subsidiaries that we intend to indefinitely reinvest outside of the United States totaled approximately
$630 million as of December 31, 2014. Should we distribute, or be treated under certain U.S. tax rules as having distributed, the
earnings of foreign subsidiaries in the form of dividends or otherwise, we may be subject to U.S. income taxes. Determination of the
amount of any unrecognized deferred income tax liability on this temporary difference is not practicable because of the complexities
of the hypothetical calculation. Cash held is primarily denominated in U.S. dollars.
As of December 31, 2014, $199 million was available under our Revolving Credit Facility representing the total $200 million
facility less $1 million of outstanding letters of credit. There are currently no outstanding borrowings under the Revolving Credit
Facility. The Revolving Credit Facility bears interest at LIBOR plus 150 basis points, or the Eurocurrency Spread, or the alternate
base rate (“ABR”) plus 50 basis points, and undrawn amounts are currently subject to a commitment fee of 22.5 basis points, as of
December 31, 2014. In addition we have approximately $12 million available under our Chinese Credit Facilities, which currently
bear interest at a 100% of the People’s Bank of China’s base rate, which was 5.6% as of December 31, 2014.
Historically, the cash we generate from operations has been sufficient to fund our working capital requirements, capital
expenditures and to meet our long term debt obligations and other financial commitments. Management believes that our cash, cash
equivalents and available for sale marketable securities, combined with expected cash flows generated by operating activities and
available cash from our credit facilities will be sufficient to fund our ongoing working capital requirements, capital expenditures,
business growth initiatives, meet our long term debt obligations and other financial commitments, fund our new corporate lease
obligations, share repurchases and fund any potential acquisitions for at least the next twelve months. However, if during that period
or thereafter, we are not successful in generating sufficient cash flow from operations or in raising additional capital, including
refinancing or incurring additional debt, when required in sufficient amounts and on terms acceptable to us, we may be required to
reduce our planned capital expenditures and scale back the scope of our business growth initiatives, either of which could have a
material adverse effect on our future financial condition or results of operations.
2014 vs. 2013
Operating Activities
For the year ended December 31, 2014, net cash provided by operating activities increased by $38 million or 11% when
compared to the same period in 2013, primarily due to an increase in net income of $21 million and an increase in non-cash items
affecting cash flows of $23 million, which is primarily due to an increase in the following items; stock-based compensation;
depreciation; amortization of intangibles; fluctuation of foreign exchange rates, offset by an increase in excess tax benefits from stock-
based awards and deferred tax benefits. Working capital movements decreased $6 million mainly related to the timing of customer
receipts, income tax payments, vendor and merchant payments, partially offset by growth in our business.