TripAdvisor 2014 Annual Report Download - page 57

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47
Investing Activities
For the year ended December 31, 2014, net cash used in investing activities increased by $38 million when compared to the
same period in 2013, primarily due to an increase in cash paid for acquisitions of businesses in 2014 of $296 million and an increase
in capital expenditures of $26 million in 2014, when compared against 2013, partially offset by a net decrease in cash used for the
purchases, sales and maturities of marketable securities of $284 million.
Financing Activities
For the year ended December 31, 2014, net cash used in financing activities decreased by $129 million when compared to the
same period in 2013, primarily due to an increase of $8 million in excess tax benefits related to stock compensation, a decrease of $12
million in repayments of our outstanding borrowings on our Chinese Credit Facilities in 2014, and payments of $145 million for
common stock share repurchases under our authorized share repurchase program in 2013, which did not reoccur in 2014. This was
offset by a reduction in proceeds from the exercise of our stock options of $21 million in 2014, due to the introduction in the third
quarter of 2013 of the net share settlement of the majority of our stock options and an increase in payments of minimum withholding
taxes related to net share settlement of equity awards of $19 million in 2014.
2013 vs. 2012
Operating Activities
For the year ended December 31, 2013, net cash provided by operating activities increased by $110 million or 46% when
compared to the same period in 2012, primarily due to an increase in net income of $10 million and an increase in non-cash items not
affecting cash flows of $35 million, which is primarily related to increased stock based compensation and depreciation. Working
capital movements increased $64 million for the year ended December 31, 2013 when compared to the same period in 2012, primarily
due to an increase in operating cash flow from deferred merchant payables of $18 million and lower income tax payments primarily
due to a lower effective tax rate with the remaining increase related to the timing of customer receipts, cash receipts from Expedia,
income tax payments, and vendor payments.
Investing Activities
For the year ended December 31, 2013, net cash used in investing activities decreased by $48 million when compared to the
same period in 2012, primarily due to the sale and maturity of marketable securities of $326 million in 2013. This was primarily offset
by an increase in the purchases of marketable securities by $213 million, cash paid for 2013 business acquisitions of $35 million, net
of cash acquired, and an increase in capital expenditures of $26 million. In addition, we received $7 million during 2012 from Expedia
related to Spin-Off, which did not reoccur in 2013.
Financing Activities
For the year ended December 31, 2013, net cash provided by financing activities decreased by $360 million when compared to
the same period in 2012 primarily due to an increase of $20 million in principal payments on our Term Loan, payments of $145
million for common stock share repurchases under our authorized share repurchase program, a reduction of $207 million in proceeds
related to the exercise of our stock options and warrants, primarily due to one-time warrant proceeds of $215 million during 2012 and
the introduction in Q3 2013 of the net share settlement of the majority of our stock option exercises, and a $15 million repayment of
our outstanding borrowings on our Chinese Credit Facilities in 2013. This was offset by a $10 million repayment of our outstanding
borrowing on our Revolving Credit Facility in 2012 that did not reoccur in 2013 and $22 million paid to purchase the remaining shares
of our non-controlling interest in 2012 that did not reoccur in 2013.
Off-Balance Sheet Arrangements
As of December 31, 2014, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-
K of the SEC, that have, or are reasonably likely to have, a current or future effect on our financial condition, results of operations,
liquidity, capital expenditures or capital resources.