Name: Yahoo! Inc. (NASDAQ:YHOO) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Yahoo! Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Net income (loss)	(209,463)	(4,351,107)	7,532,142)	1,376,566)	3,950,602)
Depreciation	407,341)	472,894)	475,031)	532,485)	549,235)
Amortization of intangible assets	100,214)	136,719)	131,537)	96,518)	105,366)
Accretion of convertible notes discount	66,461)	63,061)	59,838)	4,846)	—)
Stock-based compensation expense	499,276)	459,858)	420,174)	278,220)	220,936)
Non-cash asset impairment charge	—)	44,381)	—)	—)	—)
Non-cash goodwill impairment charge	394,901)	4,460,837)	88,414)	63,555)	—)
Non-cash intangibles impairment charge	87,335)	15,423)	—)	—)	—)
Non-cash restructuring charges (reversals)	1,227)	3,150)	(3,394)	547)	109,896)
Non-cash accretion on marketable securities	25,280)	47,218)	30,878)	36,985)	—)
Foreign exchange (gain) loss	(27,428)	4,376)	15,978)	(10,852)	—)
Gain on sale of assets and other	(3,316)	(2,878)	(11,383)	(3,736)	(11,840)
Gain from sale of Alibaba Group Shares	—)	—)	—)	—)	(4,603,322)
Gain on sale of Alibaba Group ADSs	—)	—)	(10,319,437)	—)	—)
Gain on sales of patents and land	(121,559)	(11,100)	(97,894)	(79,950)	—)
(Gain) loss on Hortonworks warrants	50,046)	19,199)	(98,062)	—)	—)
Earnings in equity interests	(363,283)	(383,571)	(1,057,863)	(896,675)	(676,438)
Dividend income related to Alibaba Group Preference Shares	—)	—)	—)	(35,726)	(20,000)
Tax benefits (detriments) from stock-based awards	6,256)	41,729)	145,711)	49,061)	(31,440)
Excess tax benefits from stock-based awards	(18,007)	(58,282)	(149,582)	(64,407)	(35,844)
Deferred income taxes	(224,737)	(42,341)	465,873)	(84,302)	(769,320)
Dividends received from equity investees	156,968)	142,045)	83,685)	135,058)	83,648)
Accounts receivable	(43,029)	(39,065)	29,278)	26,199)	34,752)
Prepaid expenses and other	376,351)	21,842)	(78,601)	27,401)	78,529)
Accounts payable	(4,550)	(59,965)	14,165)	(7,764)	12,747)
Accrued expenses and other liabilities	105,677)	109,776)	132,839)	(98,853)	255,799)
Income taxes payable related to sale of Alibaba Group ADSs	—)	(3,282,293)	3,282,293)	—)	—)
Deferred revenue	(13,098)	(195,328)	(194,920)	(149,929)	465,140)
Changes in assets and liabilities, net of effects of acquisitions	421,351)	(3,445,033)	3,185,054)	(202,946)	846,967)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities	1,458,326)	1,967,685)	(6,635,442)	(181,319)	(4,232,156)
Net cash provided by (used in) operating activities	1,248,863)	(2,383,422)	896,700)	1,195,247)	(281,554)
Acquisition of property and equipment	(239,109)	(554,163)	(389,551)	(342,971)	(505,507)
Proceeds from sales of property and equipment	249,787)	11,176)	17,404)	4,840)	—)
Purchases of marketable securities	(7,817,485)	(5,206,245)	(7,890,092)	(3,223,190)	(3,520,327)
Proceeds from sales of marketable securities	387,254)	822,997)	2,269,659)	2,871,834)	741,947)
Proceeds from maturities of marketable securities	5,816,713)	6,691,645)	945,696)	748,915)	381,403)
Proceeds related to sale of Alibaba Group shares, net	—)	—)	—)	—)	6,247,728)
Proceeds from sale of Alibaba Group ADSs, net of underwriting discounts, commissions, and fees	—)	—)	9,404,974)	—)	—)
Proceeds related to the redemption of Alibaba Group Preference Shares	—)	—)	—)	800,000)	—)
Acquisitions, net of cash acquired	—)	(175,693)	(859,036)	(1,247,544)	(5,716)
Proceeds from sales of patents	1,500)	29,100)	86,300)	79,950)	—)
Purchases of intangible assets	(2,045)	(4,811)	(2,658)	(2,500)	(3,799)
Proceeds from settlement of derivative hedge contracts	39,007)	147,179)	254,496)	312,266)	17,898)
Payments for settlement of derivative hedge contracts	(9,717)	(8,817)	(5,454)	(22,708)	(11,141)
Proceeds from the sale of investments	—)	—)	—)	181)	26,132)
Payments for equity investments in privately held companies	(9)	—)	(74,399)	(4,226)	(7,799)
Other investing activities, net	(161)	(256)	4,630)	1,932)	1,225)
Net cash (used in) provided by investing activities	(1,574,265)	1,752,112)	3,761,969)	(23,221)	3,362,044)
Proceeds from issuance of common stock	17,517)	59,130)	308,029)	353,267)	218,371)
Repurchases of common stock	—)	(203,771)	(4,163,227)	(3,344,396)	(2,167,841)
Proceeds from issuance of convertible notes	—)	—)	—)	1,412,344)	—)
Payments for note hedges	—)	—)	—)	(205,706)	—)
Proceeds from issuance of warrants	—)	—)	—)	124,775)	—)
Excess tax benefits from stock-based awards	18,007)	58,282)	149,582)	64,407)	35,844)
Tax withholdings related to net share settlements of restricted stock units	(209,053)	(257,731)	(280,879)	(139,815)	(60,939)
Distributions to noncontrolling interests	(5,948)	(15,847)	(22,344)	—)	—)
Proceeds from credit facility borrowings	—)	—)	—)	150,000)	—)
Repayment of credit facility borrowings	—)	—)	—)	(150,000)	—)
Other financing activities, net	(14,205)	(17,321)	(13,627)	(8,760)	(4,892)
Net cash used in financing activities	(193,682)	(377,258)	(4,022,466)	(1,743,884)	(1,979,457)
Effect of exchange rate changes on cash and cash equivalents	6,642)	(23,619)	(45,877)	(18,330)	4,355)
Net change in cash and cash equivalents	(512,442)	(1,032,187)	590,326)	(590,188)	1,105,388)
Cash and cash equivalents at beginning of period	1,631,911)	2,664,098)	2,077,590)	2,667,778)	1,562,390)
Cash and cash equivalents at end of period	1,119,469)	1,631,911)	2,667,916)	2,077,590)	2,667,778)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

The financial profile from 2012 to 2016 is characterized by significant volatility in net income and cash flows, driven largely by non-operational events and the strategic divestment of equity interests. While the company experienced periods of substantial nominal profitability, these were often offset by massive non-cash impairment charges and aggressive capital return programs.

Operating Cash Flow Dynamics: Net income exhibited extreme fluctuations, peaking in 2014 at 7.5 billion US$ before plunging to a loss of 4.3 billion US$ in 2015. This instability is closely linked to non-cash adjustments, most notably a 4.4 billion US$ non-cash goodwill impairment charge in 2015. Stock-based compensation expense showed a consistent upward trend, increasing from 220.9 million US$ in 2012 to 499.3 million US$ in 2016, serving as a recurring non-cash add-back to operating cash flow. Net cash provided by operating activities remained inconsistent, with a significant deficit of 2.38 billion US$ in 2015, recovering to 1.25 billion US$ by 2016.
Investing Activities and Asset Liquidation: Investing activities were dominated by the liquidation of interests in the Alibaba Group. Major cash inflows occurred in 2012 via the sale of shares (6.2 billion US$) and in 2014 through the sale of ADSs (9.4 billion US$). Outside of these windfalls, the company maintained an active strategy of purchasing and selling marketable securities, with purchases reaching as high as 7.8 billion US$ in both 2014 and 2016. Capital expenditure on property and equipment remained relatively stable, averaging between 239 million US$ and 554 million US$ annually.
Financing Activities and Capital Allocation: The company engaged in an aggressive share repurchase program between 2012 and 2014, with annual outflows increasing from 2.17 billion US$ to 4.16 billion US$. This activity tapered sharply after 2014, with only 203.8 million US$ spent on repurchases in 2015 and no repurchases recorded in 2016. Financing was further supported by the issuance of 1.4 billion US$ in convertible notes in 2013. The overall trend in financing activities shows a shift from aggressive shareholder returns to a more conservative cash preservation stance in the latter two years of the period.
Liquidity and Cash Position: The cash and cash equivalents balance experienced several cycles of expansion and contraction. A peak balance of 2.67 billion US$ was reached in 2012 and again in 2014, supported by the aforementioned asset sales. However, a downward trajectory is observed toward the end of the period, with cash and cash equivalents declining to 1.12 billion US$ by December 31, 2016. This decline is attributable to the cessation of major asset divestments and the impact of operating losses in 2015.

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