TripAdvisor 2015 Annual Report Download - page 50

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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,2015,wehad$798millionofborrowingcapacityavailableunderour2015CreditFacility.Inaddition,wehadapproximately$49
millionofavailableborrowingcapacityunderourChineseCreditFacilities,whichcurrentlybearinterestataratebasedon100%ofthePeople’sBankofChina’s
baserate,or4.35%asofDecember31,2015.
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obligations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andbusinessgrowthinitiatives;meetourlongtermdebtobligationsandotherfinancialcommitments;andfundournew
corporateleaseobligations,sharerepurchasesand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.
2015 vs. 2014
Operating Activities
FortheyearendedDecember31,2015,netcashprovidedbyoperatingactivitiesdecreasedby$5millionor1%whencomparedtothesameperiodin2014,
primarilyduetoadecreaseinnetincomeof$28millionandworkingcapitalmovementsof$16million,offsetbyanincreaseinnon-cashitemsaffectingcash
flowsof$39million,whichisprimarilyduetoanincreaseinthefollowingitems;stock-basedcompensation;depreciation;amortizationofintangibles;and
charitablecontributions,partiallyoffsetbyadecreaseinexcesstaxbenefitsfromstock-basedawards;deferredtaxbenefits;fluctuationofforeignexchangerates;
andthegainonsaleofabusiness.Thedecreaseinworkingcapitalmovementsof$16millionwasprimarilyrelatedtoanoveralllowerincometaxprovisionfor
2015,partiallyoffsetbyanincreaseinoperatingcashflowfromdeferredmerchantpayables.
Investing Activities
FortheyearendedDecember31,2015,netcashusedininvestingactivitiesdecreasedby$174millionwhencomparedtothesameperiodin2014,primarily
duetoanetdecreaseincashpaidforbusinessacquisitionsof$302millionandnetproceedsfromthesaleofoneofourChinesesubsidiariesof$25millionin
2015,partiallyoffsetbyanetincreaseincashusedforthepurchases,salesandmaturitiesofourmarketablesecuritiesof$125million,andanincreaseincapital
expendituresof$28million,primarilydrivenbyexpendituresonourcorporateheadquarters.
Financing Activities
FortheyearendedDecember31,2015,netcashusedinfinancingactivitiesincreasedby$112millionwhencomparedtothesameperiodin2014,
primarilyduetotherepaymentofourTermLoanof$300millionin2015,oranincrementaloutflowof$260million,partialrepaymentofouroutstanding
borrowingsrelatedtoour2015CreditFacilityof$90million,incrementalrepaymentsofouroutstandingborrowingsrelatedtoourChineseCreditFacilitiesof$38
million,andanincreaseintaxwithholdingspaymentsof$40millionprimarilyrelatedtotheexerciseofourstockoptions,partiallyoffsetbynetborrowingsonour
2015CreditFacilityof$287million,incrementalexcesstaxbenefitsrelatedtostock-basedcompensationof$16million,andreceiptsof$12millioninlease
incentivepaymentsrelatedtoourcorporateheadquartersbuildingfinancingobligation.
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.
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