Shutterfly 2013 Annual Report Download - page 63

The following table shows total capital expenditures including amounts accrued but not yet paid by
category for the years ended December 31, 2013, 2012 and 2011:
Year Ended December 31,
2013 2012 2011
(in thousands)
Technology equipment and software .................... $ 32,330 $ 28,386 $ 13,956
Percentage of total capital expenditures ................. 43% 47% 42%
Manufacturing equipment, rental equipment, and building
improvements .................................. 26,880 19,843 9,605
Percentage of total capital expenditures ................. 36% 33% 29%
Capitalized technology and development costs ............ 15,760 12,528 10,050
Percentage of total capital expenditures ................. 21% 21% 30%
Total Capital Expenditures .......................... $ 74,970 $ 60,757 $ 33,611
Percentage of net revenues .......................... 10% 9% 7%
Operating Activities. For 2013, net cash provided by operating activities was $147.3 million, primarily
due to our net income of $9.3 million and adjustments for non-cash items including $53.5 million of stock-
based compensation, $43.9 million of depreciation and amortization, and $31.0 million of amortization of
intangible assets. Net cash provided by operating activities was also adjusted for amortization of debt
discount and transaction costs of $7.7 million and the net change in operating assets and liabilities of
$2.2 million.
For 2012, net cash provided by operating activities was $151.4 million, primarily due to our net income
of $23.0 million and the net change in operating assets and liabilities of $43.8 million. Net cash provided by
operating activities was adjusted for non-cash items including $50.1 million of depreciation and
amortization expense and $37.3 million of stock-based compensation.
For 2011, net cash provided by operating activities was $63.2 million, primarily due to our net income
of $14.0 million and the net change in operating assets and liabilities of $13.1 million, adjusted for
non-cash items including $34.5 million of depreciation and amortization expense, $33.9 million of stock-
based compensation, and $5.8 million provision from deferred income taxes.
Investing Activities. For 2013, net cash used in investing activities was $154.8 million. We used
$76.9 million to acquire MyPublisher, R&R Images, and BorrowLenses, net of cash acquired, and to settle
other acquisition related liabilities. We used $62.6 million for capital expenditures for computer and
network hardware and production equipment for our manufacturing operations, and $15.8 million of
capitalized software and website development. Additionally, we received proceeds of $0.4 million from the
sale of equipment.
For 2012, net cash used in investing activities was $109.3 million. We used $24.4 million in the
acquisition of Kodak Gallery’s customer accounts and images and $32.8 million in the acquisitions of
Photoccino Ltd, Penguin Digital, Inc., and ThisLife, Inc., net of cash acquired. We used $40.5 million for
capital expenditures for computer and network hardware and production equipment for our
manufacturing operations, and $12.5 million of capitalized software and website development.
Additionally, we received proceeds of $1.0 million from the sale of equipment.
For 2011, net cash used in investing activities was $166.2 million. We used $133.1 million in the
acquisition of Tiny Prints net of cash acquired, $23.1 million for capital expenditures for computer and
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