Facebook 2014 Annual Report Download - page 53

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We currently anticipate that our available funds, credit facilities, and cash flow from operations will be sufficient to meet our operational cash
needs for the foreseeable future.
Cash Provided by Operating Activities
Cash flow from operating activities during 2014 primarily consisted of net income, adjusted for certain non-cash items, including share-
based
compensation expense of $1.79 billion and total depreciation and amortization of $1.24 billion . The cash flow from operating activities during
2014
compared to 2013 increased mainly due to an increase in net income of $1.44 billion , as adjusted for certain non-
cash items described above, partially
offset by a decrease in income tax refunds of $415 million .
Cash flow from operating activities during 2013 primarily consisted of net income, adjusted for certain non-
cash items, including depreciation and
amortization of $1.01 billion and share-
based compensation expense of $906 million, and an increase in other liabilities related to uncertain tax
positions. The cash flow from operating activities during 2013 compared to 2012 increased mainly due to an increase in net income of $1.45 billion and
uncertain tax position of $786 million. In addition, we received income tax refunds of $421 million in 2013.
Cash flow from operating activities during 2012 primarily consisted of adjustments to net income for certain non-cash items such as share-
based
compensation expense of $1.57 billion and depreciation and amortization of $649 million, partially offset by income tax refundable of $451 million. The
cash flow from operating activities during 2012 compared to 2011 increased modestly as the increases in adjustments for non-
cash items as described
above were offset by a reduction in net income of $947 million and an increase in income tax refundable.
Cash Used in Investing Activities
Cash used in investing activities during 2014 primarily resulted from $4.98 billion for the acquisition of businesses and $1.83 billion
for capital
expenditures related to network infrastructure and the construction of data centers and office buildings, partially offset by $1.24 billion
for the net sales
and maturities of marketable securities. The increase in cash used in investing activities during 2014 compared to 2013
was mainly due to increases in
acquisitions of businesses and capital expenditures, partially offset by net sales of marketable securities.
Cash used in investing activities during 2013 primarily resulted from $1.36 billion for capital expenditures related to the purchase of servers,
network infrastructure, and the construction of data centers, as well as $882 million for the net purchase of marketable securities and $368 million for
the acquisition of businesses and other assets, such as patents. The decrease in cash used in investing activities during 2013 compared to 2012 was
mainly due to decreases in the purchase of marketable securities and the acquisition of businesses and other assets.
Cash used in investing activities during 2012 primarily resulted from $4.87 billion for the net purchase of marketable securities, $1.24 billion for
capital expenditures related to the purchase of servers, network infrastructure, and the construction of data centers, as well as $911 million for the
acquisition of businesses and other assets, such as patents. The increase in cash used in investing activities during 2012 compared to 2011 was mainly
due to increases in the purchase of marketable securities, the acquisition of businesses and other assets, and capital expenditures.
We anticipate making capital expenditures in 2015 of approximately $2.8 billion to $3.2 billion.
Cash Provided by (Used in) Financing Activities
Cash provided by financing activities during 2014 was $1.57 billion , which primarily resulted from $1.87 billion of excess tax benefit from share-
based award activity, partially offset by $243 million of payments related to our capital lease transactions, and $73 million
of tax payments related to net
share settlement resulting mainly from the vested merger consideration of an acquisition.
Cash used in financing activities during 2013 was $667 million, which primarily resulted from $1.50 billion for repayment of debt and $889
million of tax payments related to the net share settlement, partially offset by $1.48 billion in net proceeds from the completion of our follow-
on equity
offering in December 2013.
Cash provided by financing activities during 2012 was $6.28 billion, which primarily resulted from $6.76 billion in net proceeds from the
completion of our initial public offering, $1.50 billion draw down from our unsecured term loan facility and $1.03 billion of excess tax benefits from
share-based award activity, partially offset by $2.86 billion of taxes paid related to the net share settlement.
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements as of December 31, 2014 .
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