Shutterfly 2013 Annual Report Download - page 74

SHUTTERFLY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2013 2012 2011
Cash flows from operating activities:
Net income ........................................... $ 9,285 $ 22,998 $ 14,048
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ............................. 43,887 29,424 22,316
Amortization of intangible assets ............................ 30,969 20,685 12,136
Amortization of debt discount and transaction costs ................ 7,707 — —
Stock-based compensation, net of forfeitures .................... 53,528 37,322 33,870
(Gain) / Loss on disposal of property and equipment ............... 13 (861) (301)
Deferred income taxes .................................. 331 54 (5,766)
Tax benefit from stock-based compensation ..................... 2,957 14,619 8,391
Excess tax benefits from stock-based compensation ................ (3,635) (16,622) (8,380)
Changes in operating assets and liabilities:
Accounts receivable, net ................................ (7,174) (577) (7,205)
Inventories ........................................ (3,681) (1,306) 766
Prepaid expenses and other current assets .................... (4,347) (1,399) (5,667)
Other assets ....................................... (7,669) 212 (1,402)
Accounts payable .................................... 3,583 15,230 (16,458)
Accrued and other liabilities ............................. 16,089 26,610 12,255
Deferred revenue .................................... 5,258 5,739 1,870
Other non-current liabilities ............................. 167 (747) 2,775
Net cash provided by operating activities .................... 147,268 151,381 63,248
Cash flows from investing activities:
Acquisition of business and intangible assets, net of cash acquired ........ (76,893) (57,212) (133,705)
Purchases of property and equipment .......................... (62,582) (40,535) (23,149)
Capitalization of software and website development costs .............. (15,760) (12,528) (10,050)
Proceeds from sale of equipment ............................. 388 986 676
Net cash used in investing activities ....................... (154,847) (109,289) (166,228)
Cash flows from financing activities:
Proceeds from borrowings of convertible senior notes, net of issuance costs . . 291,897 — —
Proceeds from issuance of warrants ............................ 43,560 — —
Purchase of convertible note hedge ............................ (63,510) — —
Proceeds from issuance of common stock upon exercise of stock options .... 19,112 10,211 22,277
Repurchases of common stock ............................... (32,241) (3,752) —
Excess tax benefits from stock-based compensation .................. 3,635 16,622 8,380
Principal payments of capital lease and financing obligations ............ (878) — (6)
Net cash provided by financing activities .................... 261,575 23,081 30,651
Net increase (decrease) in cash and cash equivalents ................. 253,996 65,173 (72,329)
Cash and cash equivalents, beginning of period .................... 245,088 179,915 252,244
Cash and cash equivalents, end of period ........................ $ 499,084 $ 245,088 $ 179,915
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest ............................................ $ 466 $ — $ —
Income taxes ........................................ 2,158 618 140
Supplemental schedule of non-cash investing activities:
Net increase (decrease) in accrued purchases of property and equipment . . $ (3,372) $ 7,694 $ 412
Estimated fair market value of building under build-to-suit leases ....... 10,080 6,372 —
Amount due for acquisition of business ........................ — 963 —
Amount due from adjustment of net working capital from acquired business 10 — —
The accompanying notes are an integral part of these consolidated financial statements.
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