Enom 2014 Annual Report Download - page 56

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53
Cash Flow from Financing Activities
Years ended December 31, 2014, 2013 and 2012
Net cash provided by (used in) financing activities was $(125.4) million, $89.0 million and $(6.6) million during the years ended
December 31, 2014, 2013 and 2012, respectively. Cash provided by financing activities for the year ended December 31, 2013,
primarily consists of net borrowings of $96.3 million under the credit facility we entered into in August 2013. We also incurred debt
issuance costs of $1.9 million related to the credit facility during the year ended December 31, 2013. Cash used in financing activities
during the year ended December 31, 2014, primarily includes $96.3 million used to repay all remaining amounts outstanding under
our credit facility and $24.1 million used to capitalize Rightside in connection with the Separation. We also used $1.9 million during
the year ended December 31, 2014 to fund acquisition holdbacks related to our acquisitions of Name.com, Creativebug and Society6.
In addition, during the years ended December 31, 2013 and 2012, we repurchased 0.6 million and 1.1 million shares of common stock
under our share repurchase plan at a cost of $4.8 million and $8.9 million, respectively. No shares were repurchased during the year
ended December 31, 2014. During the years ended December 31, 2014, 2013 and 2012, we also received proceeds of $0.5 million,
$4.7 million and $12.5 million, respectively, from the exercise of employee stock options and contributions from participants in our
Employee Stock Purchase Plan, and we incurred $2.9 million, $4.6 million and $9.5 million, respectively, of costs related to net taxes
paid on employee stock options exercises and RSUs vesting.
Off Balance Sheet Arrangements
As of December 31, 2014, we did not have any off balance sheet arrangements.
Capital Expenditures
For the years ended December 31, 2014, 2013 and 2012, we used $8.9 million, $26.7 million and $17.7 million, respectively, in
cash to fund capital expenditures to create internally developed software, fund leasehold improvements and purchase servers, IT
equipment and fixtures and fittings. We currently anticipate making capital expenditures of between $5.0 million and $10.0 million
during the year ending December 31, 2015.
Contractual Obligations
The following table summarizes our outstanding contractual obligations as of December 31, 2014 (in thousands):
Less than 1-3 3-5 More than
1 year years years 5 years Total
Operating lease obligations ........................... $ 2,879
$8,373
$1,490 $ -
$ 12,742
Capital lease obligations ............................... 61 - - - 61
Total contractual obligations ......................... $ 2,940 $ 8,373 $ 1,490 $ - $ 12,803
Included in operating lease obligations are agreements to lease our primary office space in Santa Monica, California and other
locations under various non-cancelable operating leases that expire between March 2015 and February 2020.
At December 31, 2014, we had a cash collateralized standby letter of credit for approximately $1.4 million associated with a
payment arrangement with the landlord of the office space we lease in Santa Monica.
Indemnifications
In the normal course of business, we have made certain indemnities under which we may be required to make payments in
relation to certain transactions. Those indemnities include intellectual property indemnities to our customers, indemnities to our
directors and officers to the maximum extent permitted under the laws of the State of Delaware, indemnifications related to lease
agreements and indemnifications to sellers or buyers in connection with acquisitions and dispositions, respectively. In addition, certain
of our advertiser and distribution partner agreements contain certain indemnification provisions, which are generally consistent with
those prevalent in our industry. We have not incurred significant obligations under indemnification provisions historically, and do not
expect to incur significant obligations in the future. Accordingly, we have not recorded liability for any of these indemnities.
Recent Accounting Pronouncements
See Note 2 of our Notes to Consolidated Financial Statements included in Part III, Item 15, “Exhibits, Financial Statement
Schedules” of this Annual Report on Form 10-K.