Zynga 2013 Annual Report Download - page 62

Table of Contents
December 31, 2013, the remaining authorized amount of stock repurchases that may be made under the program was $178.9 million. The timing
and amount of any stock repurchases will be determined based on market conditions, share price and other factors.
Operating Activities
Operating activities provided $28.7 million of cash during the twelve months ended December 31, 2013, as our net loss of $37.0 million in
the twelve months ended December 31, 2012 is adjusted to exclude non-cash items. Significant non-cash items included depreciation and
amortization of $129.0 million, stock-based expense of $84.4 million, accretion and amortization on marketable securities of $17.6 million and
impairment of intangible assets of $10.2 million. Depreciation and amortization decreased by $12.5 million as compared to the twelve months
ended December 31, 2012 as a result of fixed assets that were fully depreciated and disposed of and intangible assets that were fully amortized or
impaired in 2013. Stock-based expense decreased by $197.6 million in the twelve months ended December 31, 2013 as compared to the same
period of the prior year primarily due to increased forfeiture credits resulting from employee attrition in 2013. Net cash provided by operating
activities declined $165.0 million primarily due to changes in our operating assets and liabilities in the twelve months ended December 31, 2013,
including a $157.1 million decline in deferred revenue offset by increases in accounts receivable and other assets.
Operating activities provided $195.8 million of cash during the twelve months ended December 31, 2012 as our loss of $209.5 million in
the twelve months ended December 31, 2011 is adjusted to exclude non-cash items. Significant non-cash items included stock-based expense of
$282.0 million, depreciation and amortization of $141.5 million and impairment of intangible assets of $95.5 million. Stock-based expense was
composed primarily of employee ZSU and stock option expense and decreased by $318.2 million in the twelve months ended December 31,
2012 as compared to the same period of the prior year due to expense related to ZSU’s in 2011 as a result of our IPO. Depreciation and
amortization increased by $46.1 million as compared to the twelve months ended December 31, 2011 as a result of our continued investment in
property and equipment, including the purchase of our corporate headquarters building, and business acquisitions. Changes in our operating
assets and liabilities used $67.8 million of cash in the twelve months ended December 31, 2012 , primarily due to a decrease in deferred revenue
offset by increases in accounts receivable, other assets and other liabilities. Changes in operating assets and liabilities provided $77.4 million of
cash during the twelve months ended December 31, 2011, primarily due to increases in other liabilities, deferred revenue and accounts payable
offset by a decrease in income tax receivable.
Operating activities provided $389.2 million of cash in the year ended December 31, 2011. The cash flow from operating activities
primarily resulted from our net income, adjusted for non-cash items, and changes in our operating assets and liabilities. We had a net loss in the
year ended December 31, 2011 of $404.3 million, which included non
-cash stock-based compensation expense of $600.2 million, composed
primarily of expense associated with ZSUs that vested upon our IPO, stock awards issued in connection with business acquisitions and expense
associated with stock warrants and employee stock options. Non-cash depreciation and amortization expense was $95.4 million during 2011, an
increase from prior years due to our continued investment in property and equipment and business acquisitions. Changes in our operating assets
and liabilities provided $77.4 million of cash during 2011, primarily due to increases in other liabilities, deferred revenue and accounts payable
and a decrease in income tax receivable. The increase in other liabilities was mainly due to an increase of $44.5 million in customer deposits
which includes advance payments from certain customers and unredeemed game cards. The favorable components of cash provided by operating
activities were partially offset by increases in accounts receivable and other assets. The increases in accounts payable were the result of increased
spending due to the growth of our business. The increase in our deferred revenue and accounts receivable was primarily due to our bookings
growth in 2011, which increased by $316.6 million from 2010. Additionally, our accounts receivable balance increased as we completed the
transition of our primary in-game payment method to Facebook from other payment processors, who generally remitted payments faster. Our
income tax receivable balance decreased during 2011 as we received federal and state tax refunds. Our other assets balance increased primarily
due to an increase in prepaid expenses, which was driven by the growth of our business during the year.
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