Yahoo 2014 Annual Report Download - page 73

Liquidity and Capital Resources
As of and for each of the years ended December 31 (dollars in thousands):
2013 2014
Cash and cash equivalents $2,077,590 $ 2,667,916
Short-term marketable securities 1,330,304 5,327,412
Long-term marketable securities 1,589,500 2,230,892
Total cash, cash equivalents, and marketable securities $4,997,394 $10,226,220
Percentage of total assets 30% 17%
Cash Flow Highlights 2012 2013 2014
Net cash (used in) provided by operating activities $ (281,554) $ 1,195,247 $ 896,700
Net cash provided by (used in) investing activities $ 3,362,044 $ (23,221) $ 3,761,969
Net cash used in financing activities $(1,979,457) $(1,743,884) $(4,022,466)
Our operating activities for 2012, 2013, and 2014 have generated adequate cash to meet our operating
needs.
On September 24, 2014, Alibaba Group closed its IPO. We received cash proceeds of $9.4 billion (net
of underwriting discounts, commissions, and fees of approximately $115 million) from YHK’s sale of
140 million Alibaba Group ADSs. As of February 26, 2015, we have substantially completed our
commitment to return to our stockholders at least half of the after-tax proceeds (approximately $3.1
billion) we received from YHK’s sale of the Alibaba Group ADSs in the IPO. We estimate that we will
pay taxes of approximately $3.3 billion in the three months ended March 31, 2015 related to YHK’s
sale of Alibaba Group ADSs in the IPO.
As of December 31, 2014, we had cash, cash equivalents, and marketable securities (excluding
Alibaba Group and Hortonworks equity securities) totaling $10.2 billion compared to $5.0 billion at
December 31, 2013. The increase was due to the net cash proceeds of $9.4 billion received from the
sale of 140 million Alibaba Group ADSs in the IPO. This was partially offset by the repurchase of
approximately 102 million shares of our outstanding common stock for approximately $4.2 billion and
$859 million used for acquisitions.
As of December 31, 2013, we had cash, cash equivalents, and marketable securities totaling $5 billion,
compared to $6 billion as of December 31, 2012. During the year ended December 31, 2013, we
received net proceeds of $1.4 billion from the issuance of the Notes and net proceeds of $290 million
from the settlement of derivative hedge contracts. This was offset by the repurchase of
approximately 129 million shares of our outstanding common stock for $3.3 billion during the year
ended December 31, 2013.
Our foreign subsidiaries held $524 million of our total $10 billion of cash and cash equivalents and
marketable securities (excluding Alibaba Group and Hortonworks equity securities) as of
December 31, 2014. The cumulative earnings remaining in our consolidated foreign subsidiaries, if
repatriated to the U.S., under current law, would be subject to U.S. income taxes with an adjustment
for foreign tax credits. For the earnings that are considered indefinitely reinvested outside the U.S.,
principally related to our equity method investment in Yahoo Japan, we do not anticipate a need to
repatriate these earnings for use in our U.S. operations.
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