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Share-based compensation expense included in costs and expenses:
Three Months Ended
Dec 31,
2012
Sep 30,
2012
Jun 30,
2012
Mar 31,
2012
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
(as a percentage of total revenue)
Cost of revenue . . . . . . . . . . . . . . . . . . . . . .
1%
1%
6%
--%
--%
--%
--%
--%
Research and development . . . . . . . . . . . . .
8
9
46
6
4
3
4
1
Marketing and sales . . . . . . . . . . . . . . . . . . .
2
2
20
2
1
1
1
--
General and administrative . . . . . . . . . . . . .
2
2
22
2
2
2
2
--
Total share-based compensation
expense . . . . . . . . . . . . . . . . . . . . . .
12%
14%
93%
10%
7%
7%
7%
1%
Liquidity and Capital Resources
Year Ended December 31,
2012
2011
2010
(in millions)
Consolidated Statements of Cash Flows Data:
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 1,612
$ 1,549
$ 698
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7,024)
(3,023)
(324)
Net cash provided by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,283
1,198
781
Purchases of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,235)
(606)
(293)
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
649
323
139
Share-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,572
217
20
Our principal sources of liquidity are our cash and cash equivalents, marketable securities, and cash
generated from operations. Cash and cash equivalents and marketable securities consist primarily of cash on
deposit with banks and investments in money market funds and U.S. government and U.S. government agency
securities. Cash and cash equivalents and marketable securities totaled $9.63 billion as of December 31, 2012, an
increase of $5.72 billion from December 31, 2011. The most significant cash flow activities consisted of $6.8
billion of net proceeds from our IPO, which was completed in May 2012, $1.61 billion of cash generated from
operations, $1.5 billion of loan draw down and $1.03 billion in excess tax benefit from share-based award
activity, offset by $2.86 billion of taxes paid related to the net share settlement of RSUs when the Pre-2011 RSUs
vested and settled in the fourth quarter of 2012, $1.24 billion used for capital expenditures and $911 million used
for acquisitions of businesses and other assets. If we continue to net settle RSUs, we will use additional cash to
pay employees' tax withholding obligations in connection with such settlements. We currently anticipate that our
available funds, credit facilities, and cash flow from operations will be sufficient to meet our operational cash
needs for the foreseeable future.
In February 2012, we entered into an agreement for an unsecured five-year revolving credit facility that
allows us to borrow up to $5 billion for general corporate purposes, with interest payable on the borrowed
amounts set at London Interbank Offered Rate (LIBOR) plus 1.0%. Under the terms of the agreement, we are
obligated to pay a commitment fee of 0.10% per annum on the daily undrawn balance. No amounts were drawn
down under this credit facility as of December 31, 2012.
Concurrent with our entering into the revolving credit facility, we also entered into a bridge credit facility
agreement that allowed us to borrow up to $3 billion to fund tax withholding and remittance obligations related
to the settlement of RSUs in connection with our IPO.
In October 2012, we amended and restated our bridge credit facility, converting it to an unsecured term loan
facility (Amended and Restated Term Loan) that allowed us to borrow up to $1.5 billion to fund tax withholding
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