TiVo 2015 Annual Report Download - page 48

Table of Contents
business risks including, but not limited to, the Risk Factors described in Part 1A of this Annual Report on Form 10
- K , which is incorporated herein by
reference.
Net cash provided by investing activities for the year ended
December 31, 2015 decreased $16.2 million due to a decrease in the net use of cash
associated with acquisitions and divestitures compared to the prior period, which was partially offset by a decrease in net proceeds from net sales and
maturities of marketable securities of $77.1 million and lower spending on capital expenditures. The year ended December 31, 2014 includes payments of
$70.3 million for the Veveo and Fanhattan acquisitions and $28.0 million for the purchase of a patent portfolio, offset by the receipt of $50.3 million from the
sale of DivX and MainConcept. We anticipate that capital expenditures to support the growth of our business and strengthen our operations infrastructure
will be between $20 million and $25 million for the full year 2016.
Net cash used in financing activities for the year ended December 31, 2015 included $291.0 million of principal payments on our 2040 Convertible
Notes and the issuance of
$345.0 million of principal of 2020 Convertible Notes. Using the proceeds from the 2020 Convertible Notes issuance, we repaid
$100.0 million which had been borrowed against our Revolving Facility in February 2015, in part, to extinguish a portion of the 2040 Convertible Notes. In
connection with issuing the 2020 Convertible Notes, we purchased a call option to manage the potential dilution to earnings per share from conversion of
the 2020 Convertible Notes and sold a warrant for a net cash payment of $33.5 million . During the year ended December 31, 2015 , we made aggregate
voluntary principal prepayments of
$125.0 million to extinguish our Term Loan Facility A. The year ended December 31, 2015 includes the payment of $6.2
million in continent consideration and the release of deferred purchase price payments related to previous acquisitions. In addition, we used $154.5 million
to repurchase shares of our common stock and received $8.8 million from the exercise of employee stock options and sales of stock through our employee
stock purchase plan. During the year ended December 31, 2014 , we made $917.5 million in debt principal payments, which was partially offset by $812.0
million of additional borrowing under the Senior Secured Credit Facility and used $192.2 million to repurchase shares of our common stock. The year ended
December 31, 2014 also included the receipt of $17.9 million from the exercise of employee stock options and sales of stock through our employee stock
purchase plan.
On April 29, 2015, our Board of Directors authorized the repurchase of up to
$125.0 million of our common stock. The April 2015 authorization
includes any amounts which were outstanding under previously authorized stock repurchase programs. As of December 31, 2015 , our remaining stock
repurchase authorization was $50.5 million .
Cash flows in 2014 compared to the prior year were as follows (in thousands):
Net cash provided by operating activities decreased
$14.3 million for the year ended December 31, 2014 . Operating cash flow in 2014 benefited from
a significant upfront payment in the first quarter of 2014 related to a multi
- year licensing deal signed in the fourth quarter of 2013. Our accounts receivable
also decreased by $20.5 million from year - end due to collecting certain large receivable balances relating to deals signed at the end of 2013. However, the
operating cash flow benefit from collecting these accounts receivable balances was partially offset by a $17.8 million decrease in accounts payable and
accrued expenses and other long - term liabilities and payments of $7.6 million to retire certain interest rate swaps in connection with our 2014 Senior Secured
Credit Facility refinancing.
Net cash provided by investing activities decreased
$60.3 million for the year ended December 31, 2014 . The year ended December 31, 2014
included a decrease in net proceeds from net sales and maturities of marketable securities of $24.8 million and $50.3 million in proceeds from the sale of DivX
and MainConcept, partially offset by $23.4 million in capital expenditures, $70.3 million in payments made for the Veveo and Fanhattan acquisitions and the
acquisition of a $28.0 million patent portfolio. Included in 2013 investing activities was $19.1 million in capital expenditures and $10.0 million paid to acquire
IntegralReach.
46
Year Ended December 31,
2014
2013
Change $
Change %
Continuing Operations:
Net cash provided by operating activities
$
190,701
$
204,990
$
(14,289
)
(7
)%
Net cash provided by investing activities
93,729
154,077
(60,348
)
(39
)%
Net cash used in financing activities
(279,764
)
(475,171
)
195,407
(41
)%
Net cash used in discontinued operations
(5,872
)
(11,025
)
5,153
(47
)%
Effect of exchange rate changes on cash and cash equivalents
(713
)
(1,736
)
1,023
(59
)%
Net decrease in cash and cash equivalents
$
(1,919
)
$
(128,865
)
$
126,946
(99
)%