ServiceMagic 2014 Annual Report Download - page 48

Table of Contents
Net cash provided by operating activities attributable to continuing operations in 2013 consists of earnings from continuing operations of
$281.8 million , adjustments for non-cash items and gains on sales of long-term investments and assets totaling $110.8 million , and an increase
from working capital activities of $18.4 million . Adjustments for non-cash items and gains on sales of long-term investments and assets primarily
consist of $59.8 million of amortization of intangibles, $58.9 million of depreciation and $53.0 million of non-
cash compensation expense, partially
offset by a $50.6 million adjustment related to gains on sales of long-term investments and assets and $32.9 million of excess tax benefits from
stock-based awards. The changes from working capital activities consist of an increase in income taxes payable of $49.2 million and a decrease in
accounts receivable of $10.4 million , partially offset by an increase of $34.6 million in other assets. The increase in income taxes payable is due to
current year income tax accruals in excess of current year income tax payments. The decrease in accounts receivable is primarily due to a $14.8
million decrease in accounts receivable related to Newsweek's transition to a digital only publication and our services agreement with Google; the
related receivable from Google declined from $125.3 million at December 31, 2012 to $112.3 million at December 31, 2013, mainly due to lower
year-over-
year December revenue. These decreases were partially offset by an increase in accounts receivable at Electus due to higher revenue. The
increase in other assets is primarily due to an increase in short-term and long-term production costs at certain of our media businesses that are
capitalized as the television program, video or film is being produced.
Net cash used in investing activities attributable to continuing operations in 2013 includes acquisitions of $40.4 million, which include Twoo,
capital expenditures of $80.3 million , which include $23.6 million related to the purchase of a 50% ownership interest in an aircraft and
investments of $51.1 million, partially offset by net maturities and sales of marketable debt securities and sales of long-term investments and assets
of $95.6 million .
Net cash provided by financing activities attributable to continuing operations in 2013 includes $500.0 million in proceeds from the issuance
of our 2013 Senior Notes and excess tax benefits from stock-based awards of $32.9 million , partially offset by $264.2 million for the repurchase of
4.5 million shares of common stock at an average price of $50.63 per share, $79.2 million related to the payment of cash dividends to IAC
shareholders, $71.5 million held in escrow related to the Meetic tender offer, $67.9 million for the purchase of noncontrolling interests in Meetic
and a subsidiary of HomeAdvisor, $15.8 million for the payment of our 2002 Senior Notes, which were due January 15, 2013, and $7.4 million of
debt issuance costs associated with our 2013 Senior Notes.
Net cash provided by operating activities attributable to continuing operations in 2012 consists of earnings from continuing operations of
$169.8 million , adjustments for non-cash items of $204.2 million , partially offset by a decrease from working capital activities of $19.5 million .
Adjustments for non-cash items primarily consists of $85.6 million of non-cash compensation expense, $52.5 million of depreciation, $37.1
million of deferred income taxes, $35.8 million of amortization of intangibles and $25.3 million of equity in losses of unconsolidated affiliates,
which includes a non-cash charge of $18.6 million to re-
measure the carrying value of our investment in The Daily Beast to fair value in connection
with our acquisition of a controlling interest, partially offset by $57.1 million of excess tax benefits from stock-based awards. The deferred income
tax provision primarily relates to the vesting of restricted stock units, the exercise of stock options and the accelerated payment of 2012 bonuses.
The changes from working capital activities primarily consist of an increase of $31.0 million in accounts receivable, an increase of $23.0 million
in other assets, a decrease in accounts payable and other current liabilities of $14.4 million , partially offset by an increase in income taxes payable
of $47.0 million . The increase in accounts receivable is primarily due to the growth in revenue at Search & Applications earned from our services
agreement with Google; the related receivable from Google was $125.3 million and $105.7 million at December 31, 2012 and 2011, respectively.
While The Match Group and HomeAdvisor businesses experienced growth, the accounts receivable at these businesses are principally credit card
receivables and, accordingly, are not significant in relation to the revenue of these businesses. The increase in other assets is primarily related to a
receivable for insurance claims related to Hurricane Sandy, an increase in capitalized downloadable search toolbar costs and an increase in short-
term production costs at certain of our Media businesses that are capitalized as the television program, video or film is being produced. The
decrease in accounts payable and other current liabilities is primarily due to a decrease in accrued employee compensation and benefits, partially
offset by an increase in accrued advertising expense. The decrease in accrued employee compensation and benefits is due to the payment of the
2012 and 2011 bonuses in 2012. The increase in accrued advertising expense is primarily due to an increase in advertising expenditures at Search &
Applications. The increase in income taxes payable is due to current year income tax accruals in excess of current year income tax payments.
Net cash used in investing activities attributable to continuing operations in 2012 includes acquisitions of $400.3 million, primarily related to
The About Group, capital expenditures of $51.2 million primarily related to the internal development of software to support our products and
services and investments of $36.1 million , partially offset by net maturities and sales of marketable debt securities and sales of long-term
investments and assets of $156.2 million .
Net cash provided by financing activities attributable to continuing operations in 2012 includes $500.0 million in proceeds from the issuance
of our 2012 Senior Notes, proceeds related to the issuance of common stock, net of withholding taxes, of $262.8 million , and excess tax benefits
from stock-based awards of $57.1 million , partially offset by $691.8 million
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