Yahoo 2014 Annual Report Download - page 75

For the year ended December 31, 2014, operating activities provided $897 million in cash. Net income
for the year ended December 31, 2014 was $7.5 billion, which was adjusted for the following increases
related to non-cash items: depreciation, amortization of intangibles and accretion of Notes discount
of $666 million, stock-based compensation expense of $420 million, tax benefits from stock-based
awards of $146 million, deferred income tax expense of $466 million, goodwill impairment charge of
$88 million and losses from sales of investments, assets and other of $35 million, offset by the gain on
sale of Alibaba Group ADSs of $10.3 billion and other reductions for non-cash items including:
earnings in equity interests of $1.1 billion, excess tax benefits from stock-based awards of $150 million,
gains on sales of patents of $98 million, gain on Hortonworks warrants of $98 million, and
restructuring reversals of $3 million. Additionally, we received dividends of $84 million from Yahoo
Japan and working capital sources of cash of $3.5 billion, which were partially offset by working
capital uses of cash of $274 million.
For the year ended December 31, 2013, operating activities provided $1.2 billion in cash. Net income
for the year ended December 31, 2013 was $1.4 billion, which was adjusted for the following increases
related to non-cash items: depreciation, amortization of intangibles and accretion of Notes discount
of $634 million, stock-based compensation expense of $278 million, goodwill impairment charge of
$64 million, tax benefits from stock-based awards of $49 million, and losses from sales of
investments, assets and other of $22 million, offset by the following reductions for non-cash items
including: earnings in equity interests of $897 million, excess tax benefits from stock-based awards of
$64 million, deferred income tax benefit of $84 million, dividend income related to Alibaba Group
Preference Shares of $36 million, and gains on sales of patents of $80 million. Additionally, we
received dividends of $135 million from equity investees and working capital sources of cash of
$54 million, which were offset by working capital uses of cash of $257 million.
For the year ended December 31, 2012, operating activities resulted in a net use of cash of $282
million. Net income for the year ended December 31, 2012 was $4 billion, which was adjusted for the
following increases related to non-cash items: depreciation and amortization of intangibles of $655
million, stock-based compensation expense of $221 million, and restructuring charges of $110 million,
offset by the gain on our sale of Alibaba Group shares in the Initial Repurchase of $4.6 billion and
other reductions for non-cash items including: earnings in equity interests of $676 million, excess tax
benefits from stock-based awards of $36 million, deferred income tax benefit of $769 million,
dividend income related to Alibaba Group Preference Shares of $20 million, tax detriments from
stock-based awards of $31 million, and gains from sales of investments, assets and other of $12
million. Additionally, we received dividends of $84 million from Yahoo Japan and working capital
sources of cash of $847 million.
Net cash provided by (used in) investing activities.
Cash provided by (used in) investing activities is primarily attributable to sales and maturities of
marketable securities, sales of our strategic investments or settlement of derivative hedge contracts,
acquisitions, purchases of marketable securities, capital expenditures, and purchases of intangible
assets.
During the year ended December 31, 2014, the $3.8 billion provided by investing activities was due to
$9.4 billion in cash proceeds from the sale of Alibaba Group ADSs, net of underwriting discounts, fees
and commissions, proceeds from sales and maturities of marketable securities of $3.2 billion, $254
million in proceeds received from settlement of derivative hedge contracts, and $86 million in
proceeds from sales of patents, partially offset by $7.9 billion in purchases of marketable securities,
$372 million used for capital expenditures, $859 million used for acquisitions, and $74 million used for
additional equity investments.
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