Expedia 2011 Annual Report Download - page 63

release improvements to our software code, platform migrations and consolidation and search engine marketing
and optimization efforts. Our future capital requirements may include capital needs for acquisitions, share
repurchases, dividend payments or expenditures in support of our business strategy; thus reducing our cash
balance and/or increasing our debt.
Our cash flows are as follows:
Year ended December 31, $ Change
2011 2010 2009 2011 vs 2010 2010 vs 2009
(In millions)
Cash provided by (used in) continuing operations:
Operating activities $ 826 $ 605 $ 574 $ 221 $ 31
Investing activities (463) (744) 10 281 (754)
Financing activities (353) 128 (661) (481) 789
Net cash provided by discontinued operations 77 41 21 36 20
Effect of foreign exchange rate changes on cash and cash
equivalents (18) (20) 9 2 (29)
In 2011, net cash provided by operating activities from continuing operations increased by $221 million
primarily due to increased benefits from working capital changes as well as a decrease in income tax payments,
partially offset by an increase in interest payments. In 2010, net cash provided by operating activities increased
by $31 million primarily due to higher operating income after adjusting for the impacts of depreciation and
amortization as well as a decrease in income tax payments, partially offset by decreased benefits from working
capital changes.
In 2011, cash used in investing activities from continuing operations represented a positive change of
$281 million primarily due to lower net purchases of investments of $388 million, partially offset by higher
capital expenditures of $71 million. In 2010, cash used in investing activities increased by $754 million primarily
due to increased net purchases of investments of $651 million and an increase in capital expenditures of $58
million.
Cash used in financing activities from continuing operations in 2011 primarily included cash paid to acquire
shares of $294 million, including the repurchased shares under the 2010 authorization discussed below, as well as
$77 million in cash dividend payments, a net $22 million outflow related to the 2011 eLong transactions and our
purchase of additional interests in another subsidiary, partially offset by $34 million of proceeds from the
exercise of equity awards. Cash provided by financing activities in 2010 primarily included the net proceeds of
$742 million from the 5.95% senior notes issued in August 2010 and $51 million of proceeds from the exercise
of equity awards, partially offset by cash paid to acquire shares of $502 million, including the repurchased shares
under the authorizations discussed below, $79 million in cash dividend payments, as well as $78 million paid to
acquire additional interests in certain majority owned subsidiaries.
In 2006, our Board of Directors authorized a share repurchase of up to 20 million outstanding shares of our
common stock. In 2010, the Executive Committee, acting on behalf of the Board of Directors, authorized an
additional repurchase of up to 20 million outstanding shares of our common stock. During 2011 and 2010, we
repurchased, through open market transactions, 10.6 million and 20.6 million shares (5.3 million and 10.3 million
on a reverse split adjusted basis) under these authorizations for a total cost of $283 million and $489 million,
excluding transaction costs, representing an average repurchase price of $26.60 and $23.71 per share ($53.20 and
$47.42 on a reverse split adjusted basis). As of December 31, 2011, 8.8 million shares remain authorized for
repurchase under the 2010 authorization. There is no fixed termination date for the repurchases. No additional
repurchases have been made under this authorization as of February 9, 2012.
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