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32
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended December 31,
2003 2002 2001
Cash flows from operating activities:
Net income $ 175,186
$ 185,249 $ 168,686
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 15,135 15,564 15,383
Accretion of marketable securities 1,031 699 (181)
Stock-based compensation expense 568 1,072 4,673
Allowance for doubtful accounts (789) 1,000 2,500
Deferred income taxes 1,773 (1,446) (3,438)
Tax benefit from stock option and restricted stock transactions 36,479 69,543 58,126
Changes in assets and liabilities, net of assets acquired:
Accounts receivable
(105,723) (15,679) 16,519
Miscellaneous receivables and other assets (12,180) (5,391) 3,360
Merchandise inventory (17,025) (31,668) (8,915)
Prepaid expenses 218
(757) (495)
Accounts payable 13,185 (4,022) 50,727
Accrued compensation 5,476 4,944 1,468
Accrued income taxes and other expenses 12,983 12,664 (5,734)
Accrued exit costs (899) (364) (275)
Net cash provided by operating activities 125,418 231,408 302,404
Cash flows from investing activities:
Purchases of available-for-sale securities
(1,846,161)
(1,542,447) (1,895,807)
Redemptions of available-for-sale securities
1,870,230
1,609,622 1,790,862
Purchases of held-to-maturity securities
(533,873)
(346,586) (94,249)
Redemptions of held-to-maturity securities 516,309 179,645 109,928
Investment in and advances to joint venture (118) (8,956) (23,579)
Repayment of advances from joint venture 3,500 9,510 24,323
Purchase of property and equipment (11,380) (10,579) (22,490)
Purchase of selected U.S. assets of Micro Warehouse (20,000) - -
Purchase of Canadian operations of Micro Warehouse (2,744) - -
Consolidation of joint venture 2,254 - -
Net cash used in investing activities (21,983)
(109,791) (111,012)
Cash flows from financing activities:
Purchase of treasury shares (76,324)
(128,291) (98,215)
Proceeds from exercise of stock options 22,879 17,837 9,136
Issuance of common stock in connection with Employee Stock
Purchase Plan 3,013 - -
Dividends paid (24,867) - -
Change in book overdrafts 36,966 - -
Net cash used in financing activities (38,333)
(110,454) (89,079)
Effect of exchange rate changes on cash and cash equivalents 183 - -
Net increase in cash 65,285 11,163 102,313
Cash and cash equivalents – beginning of period 157,140 145,977 43,664
Cash and cash equivalents – end of period $ 222,425
$ 157,140 $ 145,977
Supplementary disclosure of cash flow information:
Taxes paid $ 80,614
$ 42,684 $ 66,763
The accompanying notes are an integral part of the consolidated financial statements.