Expedia 2009 Annual Report Download - page 78

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EXPEDIA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended December 31,
2009 2008 2007
(In thousands)
Operating activities:
Net income (loss) .................................................... $303,623 $(2,520,670) $ 293,870
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment, including internal-use software and
website development .............................................. 102,782 76,800 59,526
Amortization of intangible assets and stock-based compensation ............. 99,342 130,727 140,418
Deferred income taxes ............................................... (12,620) (209,042) (1,583)
(Gain) loss on derivative instruments assumed at Spin-Off .................. 38 (4,600) 5,748
Equity in (income) loss of unconsolidated affiliates ........................ (1,185) 979 2,614
Impairment of goodwill .............................................. — 2,762,100 —
Impairment of intangible and other long-lived assets ....................... — 233,900 —
Foreign exchange (gain) loss on cash and cash equivalents, net .............. (4,679) 77,958 (12,524)
Realized (gain) loss on foreign currency forwards ......................... (29,982) 55,175 —
Other ............................................................ 11,415 2,967 3,801
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable .............................................. (36,360) 32,208 (44,363)
Prepaid merchant bookings and prepaid expenses ....................... (19,477) (15,072) (32,378)
Accounts payable, merchant ........................................ 26,466 (75,443) 101,068
Accounts payable, other, accrued expenses and other current liabilities ...... 79,552 54,400 51,702
Deferred merchant bookings ........................................ 155,665 (85,443) 142,608
Deferred revenue ................................................. 1,424 3,744 1,562
Net cash provided by operating activities ................................ 676,004 520,688 712,069
Investing activities:
Capital expenditures, including internal-use software and website
development .................................................... (92,017) (159,827) (86,658)
Acquisitions, net of cash acquired ...................................... (45,007) (538,439) (59,622)
Purchase of short-term investments .................................... (45,903) (92,923) —
Maturities of short-term investments ................................... 93,092 — —
Net settlement of foreign currency forwards .............................. 29,982 (55,175) —
Reclassification of Reserve Primary Fund holdings ........................ — (80,360) —
Distributions from Reserve Primary Fund ............................... 10,677 64,387 —
Changes in long-term investments, deposits and other ...................... 1,357 2,779 (33,226)
Net cash used in investing activities ..................................... (47,819) (859,558) (179,506)
Financing activities:
Credit facility borrowings ............................................ — 740,000 755,000
Credit facility repayments ............................................ (650,000) (675,000) (170,000)
Proceeds from issuance of long-term debt, net of issuance costs .............. — 392,348 —
Changes in restricted cash and cash equivalents ........................... (10,716) 11,753 (6,494)
Proceeds from exercise of equity awards ................................ 15,794 6,353 55,038
Excess tax benefit on equity awards .................................... 1,544 3,191 95,702
Withholding taxes for stock option exercises ............................. — — (121,208)
Treasury stock activity .............................................. (7,963) (12,865) (1,397,173)
Other, net ......................................................... (8,991) (979) (844)
Net cash provided by (used in) financing activities ........................ (660,332) 464,801 (789,979)
Effect of exchange rate changes on cash and cash equivalents ................ 9,279 (77,905) 21,528
Net increase (decrease) in cash and cash equivalents ...................... (22,868) 48,026 (235,888)
Cash and cash equivalents at beginning of year ............................. 665,412 617,386 853,274
Cash and cash equivalents at end of year ................................ $642,544 $ 665,412 $ 617,386
Supplemental cash flow information
Cash paid for interest ................................................ $ 78,629 $ 53,459 $ 49,266
Income tax payments, net ............................................ 198,368 179,273 78,345
See notes to consolidated financial statements.
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