TripAdvisor 2014 Annual Report Download - page 72

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TRIPADVISOR, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year ended December 31,
2014 2013 2012
Operating activities:
N
et inco
m
e ............................................................................................................................ $ 226 $ 205 $ 195
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 ............................................................................... 47 30 20
Stock-based compensation expense ................................................................................. 63 49 30
Amortization of intangible assets .................................................................................... 18 6 6
Amortization of deferred financing costs ........................................................................ 1 1 1
Amortization of discounts and premiums on marketable securities, net .......................... 3 5 1
Deferred tax (benefit) expense ......................................................................................... (17 ) 5 (5)
Excess tax benefits from stock-based compensation ....................................................... (20 ) (12) (3)
Provision (recovery) for doubtful accounts ..................................................................... 3 1 (1)
Other, net ......................................................................................................................... 11 1 1
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, prepaid expenses and other assets (Note 2) .............................. (26 ) (12) (32)
Accounts payable, accrued expenses and other liabilities .......................................... 18 17 32
Deferred merchant payables ....................................................................................... (9 ) 17 (1)
Income taxes, net ........................................................................................................ 60 27 (17)
Deferred revenue ........................................................................................................ 9 9 12
Net cash provided by operating activities ......................................................................... 387 349 239
Investing activities:
Acquisitions, net of cash acquired ................................................................................... (331 ) (35) (3)
Capital expenditures, including internal-use software and website development ............ (81 ) (55) (29)
Purchases of marketable securities .................................................................................. (251 ) (432) (219)
Sales of marketable securities .......................................................................................... 336 175 —
Maturities of marketable securities .................................................................................. 93 151 —
Distributions proceeds from Expedia related to Spin-Off ............................................... — — 7
Net cash used in investing activities ................................................................................... (234 ) (196) (244)
Financing activities:
Repurchase of common stock .......................................................................................... — (145) —
Proceeds from credit facilities ......................................................................................... 13 10 15
Payments to credit facilities ............................................................................................. (3 ) (15) (10)
Principal payments on long-term debt ............................................................................. (40 ) (40) (20)
Proceeds from exercise of stock options and warrants .................................................... 3 24 231
Payment of minimum withholding taxes on net share settlements of equity awards ....... (33 ) (14) (7)
Excess tax benefits from stock-based compensation ....................................................... 20 12 3
Payments to purchase subsidiary shares from noncontrolling interest ............................ — — (22)
Payments on construction in-process related to build to suit lease obligation, net .......... (1 ) (2) —
Net cash (used in) provided by financing activities .......................................................... (41 ) (170) 190
Effect of exchange rate changes on cash and cash equivalents ....................................... (8 ) 1 (1)
Net increase (decrease) in cash and cash equivalents....................................................... 104 (16) 184
Cash and cash equivalents at beginning of period ................................................................ 351 367 183
Cash and cash equivalents at end of period ...................................................................... $ 455 $ 351 $ 367
Supplemental disclosure of cash flow information...........................................................
Cash paid during the period for income taxes, net of refunds ......................................... $ 54 $ 50 $ 108
Cash paid during the period for interest ........................................................................... $ 7 $ 8 $ 10
Supplemental disclosure of non-cash investing and financing activities:
Capitalization of construction in-process related to build to suit lease obligation ........... $ 52 $ 8 $ —
Capital expenditures incurred but not yet paid primarily related to build to suit lease .... $ 10 $ — $ —
Non-cash fair value increase for redeemable noncontrolling interests ............................ $ — $ — $ 15
The accompanying notes are an integral part of these consolidated financial statements.