Orbitz 2012 Annual Report Download - page 43

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43
Cash Flows
Our net cash flows from operating, investing and financing activities were as follows:
Years Ended December 31,
2012 2011 2010
(in thousands)
Beginning cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 136,171 $ 97,222 $ 88,656
Cash provided by/(used in):
Operating activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,059 117,846 98,609
Investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (63,838)(47,530)(40,142)
Financing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50,001)(30,511)(49,075)
Effect of changes in exchange rates on cash and cash equivalents. . . . . . . . . . 871 (856)(826)
Net increase in cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,909) 38,949 8,566
Ending cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 130,262 $ 136,171 $ 97,222
Operating Activities
Cash provided by operating activities consists of our net loss, adjusted for non-cash items such as depreciation,
amortization, impairment of goodwill and intangible assets, and stock-based compensation, and changes in various working
capital accounts, principally accounts receivable, deferred income, accrued merchant payables, accounts payable and accrued
expenses.
We generated cash flow from operations of $107.1 million for the year ended December 31, 2012 compared with $117.8
million for the year ended December 31, 2011. The decrease in cash flow from operations was primarily due to the timing of
cash receipts and payments, primarily lower accounts payable, higher accounts receivable, including amounts due from
Travelport, partially offset by higher merchant payables.
We generated cash flow from operations of $117.8 million for the year ended December 31, 2011 compared with $98.6
million for the year ended December 31, 2010. The increase in operating cash flow was due to changes in our working capital
accounts of $39.9 million, partially offset by a $20.7 million decrease in cash inflows from our net loss, adjusted for non-cash
items described above. The net change in working capital accounts was primarily driven by changes in our current liability
balances and the timing of payments from Travelport. Overall, the $20.7 million decrease in cash flows from our net loss
related to higher spending to support our strategic initiatives as well as increased legal expenses during 2011 as compared with
2010.
Investing Activities
Cash flow used in investing activities increased to $63.8 million for the year ended December 31, 2012 from $47.5
million for the year ended December 31, 2011. This increase in the year ended December 31, 2012 as compared with 2011 was
due primarily to establishing higher restricted cash balances due to requirements under the new letter of credit facility.
Cash flow used in investing activities increased to $47.5 million for the year ended December 31, 2011 from $40.1
million for the year ended December 31, 2010. This increase was due to higher capital spending of $4.0 million to support our
strategic initiatives, including investments in our global platform and private label distribution infrastructure, and an increase in
restricted cash balances.
Financing Activities
Cash flow used in financing activities increased to $50.0 million for the year ended December 31, 2012 from $30.5
million for the year ended December 31, 2011. The increase was due to a higher excess cash flow payment made on the Term
Loan and higher payments on the tax sharing liability during the year ended December 31, 2012 as compared with the prior-
year period.
Cash flow used in financing activities decreased to $30.5 million for the year ended December 31, 2011 from $49.1
million for the year ended December 31, 2010. In 2010, we received cash proceeds, net of issuance costs, from the purchase of
shares of our common stock by Travelport, and we repaid borrowings made under the Revolver, and repaid and also