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AOL INC.
PART II—ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Investing Activities
The following table presents cash (used) provided by investing activities for the periods presented (in
millions):
Years Ended December 31,
2014 2013 2012
Investments and acquisitions, net of cash acquired ...................... $ (248.2) $ (337.9) $ (32.0)
Proceeds from disposal of assets, net ................................ 38.7 1.5 952.3
Capital expenditures and product development costs .................... (73.9) (65.7) (64.9)
Cash (used) provided by investing activities ....................... $ (283.4) $ (402.1) $ 855.4
Cash used by investing activities decreased $118.7 million for the year ended December 31, 2014, as
compared to the year ended December 31, 2013, primarily due to the acquisition of Adap.tv for $329.5 million in
September 2013 and the proceeds of $33.1 million from the sale of a data center property located in Virginia in
July 2014, partially offset by the cash paid for 2014 acquisitions.
Cash used by investing activities was $402.1 million for the year ended December 31, 2013, as compared to
cash provided by investing activities of $855.4 million for the year ended December 31, 2012. The $1,257.5
million decrease in cash used by investing activities was primarily due to approximately $950 million in proceeds
(net of transaction costs paid) from the disposition of the Sold Patents in 2012 and the acquisition payment of
$329.5 million related to Adap.tv in 2013.
Financing Activities
The following table presents cash provided (used) by financing activities for the periods presented (in
millions):
Years Ended December 31,
2014 2013 2012
Borrowings under the credit facility agreement ......................... $ 105.0 $ — $ —
Repayments under the credit facility agreement ......................... (105.0) — —
Repurchases of common stock (see Note 7) ............................ (98.6) (134.8) (698.7)
Proceeds from issuance of convertible notes ........................... 379.5 — —
Payments of issuance costs ......................................... (10.9) (3.1) —
Payments for note hedges .......................................... (70.1) — —
Proceeds from issuance of warrants .................................. 33.5 — —
Principal payments on capital leases .................................. (71.8) (61.1) (55.6)
Tax withholdings related to net share settlements of restricted stock units .... (26.4) (16.5) (7.6)
Proceeds from exercise of stock options ............................... 15.5 35.3 35.2
Cash dividends paid and dividend equivalent payments on restricted stock
units ......................................................... (3.5) (4.4) (434.4)
Other financing activities .......................................... 12.1 9.2 0.3
Cash provided (used) by financing activities ....................... $ 159.3 $ (175.4) $ (1,160.8)
Cash provided by financing activities was $159.3 million for the year ended December 31, 2014, as
compared to cash used by financing activities of $175.4 million for the same period in 2013, primarily due to net
proceeds received from our sale of the Notes of approximately $368.6 million (net of issuance costs), partially
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