Chegg 2013 Annual Report Download - page 104

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expenses and other current assets related to the cash escrow balance associated with the Cramster acquisition
becoming due within a year and an advanced payment related to eTextbook publisher fees, partially offset by a
$5.6 million increase in deferred revenues from the growth of our print textbook, enrollment marketing services
and Chegg Study businesses.
Cash Flows from Investing Activities
Cash flows from investing activities have been primarily related to the purchase of textbooks and property
and equipment, offset by proceeds from the liquidation of textbooks. Net cash used in investing activities in 2013
was $153.1 million and was primarily used for purchases of textbooks of $122.2 million, purchases of
investments of $61.4 million and purchases of property and equipment and other assets of $7.4 million, partially
offset by proceeds from liquidation of textbooks of $38.0 million.
Net cash used in investing activities in 2012 was $88.1 million and was primarily used for purchases of
textbooks of $104.5 million and purchases of property and equipment of $15.1 million, partially offset by
proceeds from liquidation of textbooks of $34.1 million.
Net cash used in investing activities in 2011 was $59.9 million and was used for purchases of textbooks of
$74.1 million, partially offset by proceeds from liquidation of textbooks of $30.9 million. In 2011, we narrowed
our rental catalog to include only those titles that we believe have sufficient demand to profitably enable the
repeat rentals necessary to support renting textbooks at a per rental price below our acquisition cost. In addition,
we used $14.0 million in the acquisition of businesses, net of cash acquired.
Cash Flows from Financing Activities
Cash flows from financing activities have been related to proceeds from, and payments on, our debt
obligations and proceeds from the issuance of convertible preferred stock. Net cash provided by financing
activities in 2013 was $145.2 million and was related to net proceeds received from our IPO and the exercise of
stock options, partially offset by the pay-off of our revolving credit facility.
Net cash provided by financing activities in 2012 was $19.8 million and was primarily related to proceeds
from the issuance of convertible preferred stock of $25.0 million, partially offset by the repurchase of common
stock and vested stock options of $5.2 million associated with a put option granted in connection with prior
acquisitions.
Net cash used in financing activities in 2011 was $8.8 million and was primarily related to payments of debt
obligations of $42.8 million, partially offset by proceeds from debt obligations of $33.3 million.
Contractual Obligations and Other Commitments
The following is a summary of the contractual commitments associated with our debt and lease obligations
(which include the related interest) as of December 31, 2013 (in thousands):
Total
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
Commitment fee on unused portion of revolving credit
facility ........................................ $ 327 $ 125 $ 202 $ — $—
Operating lease obligations(1) ........................ 11,323 3,694 5,874 1,615 140
Total contractual obligations .................... $11,650 $3,819 $6,076 $1,615 $140
(1) Our office and warehouse facilities are leased under operating leases, which expire at various dates through 2019.
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