Callaway 2014 Annual Report Download - page 74

F-6
CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2014 2013 2012
Cash flows from operating activities:
Net income (loss) ............................................................................................................................. $ 16,008 $ (18,921) $ (122,946)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization ................................................................................................. 21,236 25,543 34,411
Impairment charges ................................................................................................................. — — 21,933
Deferred taxes ......................................................................................................................... 604 (2,309) (1,925)
Share-based compensation ...................................................................................................... 5,740 3,533 3,142
(Gain) loss on disposal of long-lived assets and deferred gain amortization ........................... (1,331) 2,242 (1,261)
Gain on sale of intangible assets .............................................................................................. — — (6,602)
Discount amortization on convertible notes ............................................................................ 739 702 235
Changes in assets and liabilities:
Accounts receivable, net .......................................................................................................... (23,314) (6,690) 23,701
Inventories ............................................................................................................................... 47,334 (60,966) 20,216
Other assets ............................................................................................................................. 2,884 (190) 1,044
Accounts payable and accrued expenses ................................................................................. (30,578) 34,663 1,042
Accrued employee compensation and benefits ........................................................................ 6,328 11,523 (4,057)
Income taxes receivable and payable ...................................................................................... (4,125) 2,761 2,563
Accrued warranty expense ...................................................................................................... (799) (1,133) (601)
Other liabilities ........................................................................................................................ (3,846) 293 297
Net cash provided by (used in) operating activities ......................................................................... 36,880 (8,949) (28,808)
Cash flows from investing activities:
Capital expenditures ........................................................................................................................ (10,753) (13,038) (18,403)
Proceeds from sale of intangible assets ............................................................................................ — — 26,861
Proceeds from sale of property, plant and equipment ...................................................................... 458 4,148 355
Investment in golf-related ventures .................................................................................................. (14,771) (13,637) (3,268)
Net cash (used in) provided by investing activities .......................................................................... (25,066) (22,527) 5,545
Cash flows from financing activities:
(Repayment of) proceeds from asset-based credit facility, net ......................................................... (10,425) 25,660 —
Exercise of stock options ................................................................................................................. 2,291 1,652 19
Dividends paid, net .......................................................................................................................... (3,105) (5,599) (11,019)
Acquisition of treasury stock ........................................................................................................... (1,006) — —
Credit facility amendment costs ....................................................................................................... (608)— —
Equity issuance costs ....................................................................................................................... (7)(341)—
Proceeds from issuance of convertible notes ................................................................................... — — 46,819
Debt issuance costs .......................................................................................................................... — — (3,534)
Other financing activities ................................................................................................................. (26)(32)(159)
Net cash (used in) provided by financing activities ......................................................................... (12,886) 21,340 32,126
Effect of exchange rate changes on cash and cash equivalents ................................................................ 1,914 (5,074) 117
Net increase (decrease) in cash and cash equivalents ............................................................................... 842 (15,210) 8,980
Cash and cash equivalents at beginning of year ....................................................................................... 36,793 52,003 43,023
Cash and cash equivalents at end of year ................................................................................................. $ 37,635 $ 36,793 $ 52,003
Supplemental disclosures:
Cash paid for interest and fees ......................................................................................................... $ (8,124) $ (6,741) $ (7,544)
Cash paid for income taxes, net ....................................................................................................... $ (8,098) $ (4,986) $ (4,234)
Noncash investing and financing activities:
Dividends payable ........................................................................................................................... $ — $ — $ 131
Issuance of common stock in exchange for preferred stock ............................................................. $ — $ 42,278 $ —
Issuance of convertible notes in exchange for preferred stock ......................................................... $ — $ — $ 60,078
Issuance of treasury stock from the settlement of compensatory stock awards ............................... $ 86 $ 1,649 $ 3,735
Acquisition of treasury stock for minimum statutory withholding taxes ......................................... $ (7)$ (364)$ (783)
Accrued capital expenditures at period end ..................................................................................... $ 466 $ 1,467 $ 92
The accompanying notes are an integral part of these consolidated financial statements.