eBay 2013 Annual Report Download - page 78

Financing Activities
The net cash used in financing activities of $1.4 billion in 2013 was due primarily to cash outflows of $1.3 billion to repurchase our
common stock, $400 million for the net repayment of debt and $267 million paid for tax withholdings related to net share settlements of
restricted stock units. These cash outflows were partially offset by inflows of $437 million from the issuance of common stock in connection
with the exercise of stock options and our employee stock purchase plan, and $201 million in excess tax benefits from stock-based
compensation.
The net cash provided by financing activities of $2.0 billion in 2012 was due primarily to cash inflows of approximately $3.0 billion from
the issuance of senior notes, $483 million from the issuance of common stock in connection with the exercise of stock options and our employee
stock purchase plan, and $130 million in excess tax benefits from stock-based compensation. These cash inflows were partially offset by
outflows of $898 million in cash paid to repurchase our common stock, $550 million for the net repayment of commercial paper, and $186
million in cash paid for tax withholdings related to net share settlements of restricted stock units. We used a portion of the net proceeds from the
issuance of our senior notes to repay the commercial paper referred to above.
The positive effect of currency exchange rates on cash and cash equivalents during 2013 was due to the weakening of the U.S. dollar
against certain foreign currencies, primarily the Euro. The positive effect of currency exchange rates on cash and cash equivalents during 2012
was due to the weakening of the U.S. dollar against certain foreign currencies, primarily the British pound and the Euro. The negative effect of
currency exchange rates on cash and cash equivalents during 2011 was due to the strengthening of the U.S. dollar against certain foreign
currencies, primarily the Euro.
Stock Repurchases
In June 2012, our Board of Directors authorized a stock repurchase program that provides for the repurchase of up to $2 billion of our
common stock, with no expiration from the date of authorization. The stock repurchase program is intended to offset the impact of dilution from
our equity compensation programs. During 2013 , we repurchased approximately $1.3 billion of our common stock under this stock repurchase
program. As of December 31, 2013 , approximately $640 million remained for further repurchases of our common stock under the 2012 stock
repurchase program.
In addition, in January 2014, our board of directors authorized an additional $5 billion stock repurchase program. This new stock
repurchase program, together with $640 million remaining under our prior stock repurchase program authorized in June 2012, brings the total
repurchase authorization, as of January 2014, to $5.6 billion . In addition to continuing to repurchase shares to offset dilution from our equity
compensation programs, we expect, subject to market conditions and other factors, to make opportunistic repurchases of our common stock to
reduce outstanding share count. Any share repurchases under our stock repurchase programs may be made through open market transactions,
block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts
as management deems appropriate and may be funded from our working capital or other financing alternatives. Our stock repurchase programs
may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of
factors including corporate and regulatory requirements, price and other market conditions and management's determination as to the appropriate
use of our cash.
Shelf Registration Statement
At December 31, 2013 , we had an effective shelf registration statement on file with the Securities and Exchange Commission that allows
us to issue various types of debt securities, such as fixed or floating rate notes, U.S. dollar or foreign currency denominated notes, redeemable
notes, global notes, and dual currency or other indexed notes. Issuances under the shelf registration statement will require the filing of a
prospectus supplement identifying the amount and terms of the securities to be issued. The registration statement does not limit the amount of
debt securities that may be issued thereunder. Our ability to issue debt securities is subject to market conditions and other factors impacting our
borrowing capacity, including our credit ratings and compliance with the covenants in our credit agreement.
We issued $3 billion of senior notes in an underwritten public offering in July 2012. These senior notes remain outstanding and consist of
$250 million aggregate principal amount of 0.70% notes due 2015, $1 billion aggregate principal amount of 1.35% notes due 2017, $1 billion
aggregate principal amount of 2.60% notes due 2022 and $750 million aggregate principal amount of 4.00% notes due 2042. In addition, we
have an additional $1.1 billion of senior notes outstanding that were issued under a prior shelf registration statement consisting of $600 million
aggregate principal amount of 1.625% notes due 2015 and $500 million aggregate principal amount of 3.250% notes due 2020.
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