eBay 2015 Annual Report Download - page 61

The net cash used in continuing financing activities of $1.0 billion in 2014 was due primarily to cash
outflows of $4.7 billion to repurchase common stock and cash paid for tax withholdings in the amount of $252
million related to net share settlements of restricted stock units and awards. These cash outflows were partially
offset by cash inflows from $3.5 billion from the issuance of senior notes, $300 million from the issuance of
common stock in connection with the exercise of stock options and the effect of $75 million of excess tax
benefits from stock-based compensation.
The net cash used in continuing financing activities of $1.4 billion in 2013 was due primarily to cash
outflows of $1.3 billion in cash paid to repurchase our common stock, $400 million payment of debt upon
maturity and $267 million in cash paid for tax withholdings related to net share settlements of restricted stock
units. These cash outflows were partially offset by cash inflows of $437 million from the issuance of common
stock in connection with the exercise of stock options, and $112 million in excess tax benefits from stock based
compensation.
The negative effect of currency exchange rates on cash and cash equivalents during 2015 was due to the
strengthening of the U.S. dollar against other currencies, primarily the Euro. The negative effect of currency
exchange rates on cash and cash equivalents during 2014 was due to the strengthening of the U.S. dollar against
certain foreign currencies, primarily the Euro and Korean won. 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.
Stock Repurchases
In January 2014, our Board authorized a stock repurchase program that provided for the repurchase of up to
an additional $5 billion of our common stock, with no expiration from the date of authorization. In January 2015,
our Board authorized an additional $2 billion stock repurchase program, with no expiration from the date of
authorization. In June 2015, our Board authorized an additional $1 billion stock repurchase program, with no
expiration from the date of authorization. The stock repurchase programs are intended to programmatically offset
the impact of dilution from our equity compensation programs and, 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 will be funded from our working capital or other
financing alternatives.
During 2015, we repurchased approximately $2.1 billion of our common stock under our stock repurchase
programs. As of December 31, 2015, a total of approximately $1.8 billion remained available for future
repurchases of our common stock under our January 2015 and June 2015 repurchase programs and no amount
remained available under our January 2014 repurchase program.
We expect, subject to market conditions and other uncertainties, to continue making opportunistic
repurchases of our common stock. However, 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 and Long-Term Debt
At December 31, 2015, 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, as well as common stock,
preferred stock, warrants, depositary shares representing fractional interest in shares of preferred stock, purchase
contracts and units from time to time in one or more offerings. Each issuance under the shelf registration
statement will require the filing of a prospectus supplement identifying the amount and terms of the securities to
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