Xerox 2014 Annual Report Download - page 64

from the receivables sales. Refer to Note 6 - Finance Receivables, Net in the Consolidated Financial Statements
for additional information regarding the sale of finance receivables.
•$149 million decrease due to lower accounts payable and accrued compensation primarily related to the timing
of accounts payable payments.
•$38 million decrease due higher growth in inventory reflecting the launch of new products.
•$22 million decrease due to the timing of settlements of our foreign currency derivative contracts. These
derivatives primarily relate to hedges of Yen inventory purchases.
•$18 million decrease due to higher net income tax payments.
•$212 million increase from accounts receivable primarily due to lower revenues partially offset by a reduction in
the use of accelerated collection programs such as early pay discounts.
•$134 million increase due to lower contributions to our defined benefit pension plans. This was in line with
expectations.
•$106 million increase from lower spending for product software and up-front costs for outsourcing service
contracts.
Cash flow from operations in 2014 and 2013, include approximately $145 million and $130 million, respectively, of
cash flows from our ITO business which is held for sale and reported as a discontinued operation at December 31,
2014. Refer to Note 4 - Divestitures in the Consolidated Financial Statements for additional information regarding
this pending sale.
Cash Flows from Investing Activities
Net cash used in investing activities was $703 million for the year ended December 31, 2014. The $251 million
increase in the use of cash from 2013 was primarily due to the following:
•$185 million increase in acquisitions. 2014 acquisitions include ISG Holdings, Inc. for $225 million, Invoco
Holding GmbH for $54 million, Consilience Software, Inc. for $25 million and three smaller acquisitions for $36
million. 2013 acquisitions include Zeno Office Solutions, Inc. for $59 million, Impika for $53 million and four
smaller acquisitions totaling $43 million.
•$32 million increase primarily due to lower proceeds from the sale of assets. 2014 includes proceeds from the
sale of surplus facilities in Latin America of $42 million. 2013 includes proceeds from the sale of a U.S. facility of
$38 million and the sale of portions of our Wilsonville, Oregon operation and related assets of $33 million.
•$25 million increase due to higher capital expenditures (including internal use software).
Net cash used in investing activities was $452 million for the year ended December 31, 2013. The $309 million
decrease in the use of cash from 2012 was primarily due to the following:
•$121 million decrease in acquisitions. 2013 acquisitions include Zeno Office Solutions, Inc. for $59 million,
Impika for $53 million and four smaller acquisitions totaling $43 million. 2012 acquisitions include Wireless Data
for $95 million, RK Dixon for $58 million as well as seven smaller acquisitions totaling $123 million.
•$86 million decrease due to lower capital expenditures (including internal use software).
•$77 million decrease primarily due to $38 million of proceeds from the sale of a U.S. facility and $33 million of
proceeds from the sale of portions of our Wilsonville, Oregon operation and related assets.
•$26 million decrease due to proceeds from the sale of the North American and European Paper businesses.
Capital expenditures (including internal use software) in 2014 and 2013, include approximately $100 million in each
year associated with our ITO business which is held for sale and reported as a discontinued operation at December
31, 2014. Refer to Note 4 - Divestitures in the Consolidated Financial Statements for additional information
regarding this pending sale.
Cash Flows from Financing Activities
Net cash used in financing activities was $1,624 million for the year ended December 31, 2014. The $222 million
increase in the use of cash from 2013 was primarily due to the following:
•$375 million increase from share repurchases.
•$69 million increase due to lower proceeds from the issuance of common stock under our incentive stock plans.
•$48 million increase due to higher common stock dividends of $17 million as well as distributions to
noncontrolling interests of $31 million.
•$259 million decrease from net debt activity. 2014 reflects payments of $1,050 million on Senior Notes offset by
net proceeds of $700 million from the issuance of Senior Notes and an increase of $150 million in Commercial
Paper. 2013 reflects payments of $1 billion of Senior Notes offset by net proceeds of $500 million from the
issuance of Senior Notes and $39 million from the sale and capital leaseback of a building in the U.S.
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