Zynga 2014 Annual Report Download - page 68

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Table of Contents
Investing Activities
Investing activities used $344.2 million during the twelve months ended December 31, 2014. The primary outflows of cash associated with
investing activities was the business acquisition of NaturalMotion for which $391.0 was paid in cash. The primary cash inflows were $47.7
million for the sales and maturities of marketable securities, net of purchases. Capital expenditures were $9.2 million for the twelve months
ended December 31, 2014, which mainly related to the investment in hardware and software to support business operations. We expect capital
expenditures of approximately $10 million in 2015.
Investing activities resulted in a cash inflow of $147.5 million during the twelve months ended December 31, 2013. The primary inflows of
cash associated with investing activities were $169.9 million for the sales and maturities of marketable securities, net of purchases. Capital
expenditures were $7.8 million for the twelve months ended December 31, 2013, which mainly related to the investment in our data centers and
other hardware and software to maintain our datacenter infrastructure.
Investing activities resulted in a cash outflow of $1.5 billion during the twelve months ended December 31, 2012. The primary uses of cash
associated with investing activities were $954 million for the purchase of marketable securities, net of sales and maturities; $233.7 million for
the purchase of our corporate headquarters building and $205.5 million, net of cash acquired, for business acquisitions. Excluding the purchase
of our corporate headquarters building, capital expenditures were $98.1 million for the twelve months ended December 31, 2012, which mainly
related to the continued investment in our data centers and other hardware and software to support our growth.
Financing Activities
Financing activities provided approximately $15.1 million during the twelve months ended December 31, 2014, the primary inflow of cash
was $16.4 million of cash receipts from exercises of employee stock options and employee stock purchase plan.
For the twelve months ended December 31, 2013, the primary outflow of cash associated with financing activities was $100.0 million for
the repayment of debt and $11.2 million of excess tax costs from stock-based awards. We also had a cash inflow of $18.2 million for cash
received from the exercise of employee stock options and warrants.
For the twelve months ended December 31, 2012, our primary financing activity was $99.8 million in proceeds from a term loan, net of
issuance costs, entered into on June 29, 2012. We also had cash out flows of $26.3 million for tax payments made in connection with the vesting
of stock awards and cash received from the exercise of employee stock options and warrants of $17.0 million.
Credit Facility
In June 2013, we amended and restated our existing revolving credit agreement which we originally executed in July 2011, reducing our
maximum available credit from $1.0 billion to $200 million, and extending the term of our amended agreement to expire in June of 2018. The
interest rate for the credit facility is determined based on a formula using certain market rates, as described in the amended credit agreement.
Additionally, our minimum quarterly commitment fee was reduced from $0.6 million per quarter to $0.1 million per quarter based on the portion
of the credit facility that is not drawn down. The agreement requires us to comply with certain covenants, including maintaining a minimum
capitalization ratio, and maintaining a minimum cash balance. As of December 31, 2014, we have not drawn down any amounts under the credit
facility and are in compliance with these covenants.
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