Callaway 2001 Annual Report Download - page 43

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Callaway Golf Company
41
Consolidated Statements of Cash Flows
(in thousands) Year ended December 31,
2001 2000 1999
Cash flows from operating activities:
Net income $ 58,375 $ 80,999 $ 55,322
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 37,467 40,249 39,877
Non-cash compensation 342 2,157 1,390
Tax benefit from exercise of stock options 14,520 6,806 2,377
Non-cash energy derivative losses 19,922 — —
Net non-cash foreign currency hedging gains (4,748) (1,410) —
Deferred taxes 1,732 4,906 9,971
Non-cash restructuring costs — — (8,609)
Loss on disposal of assets 1,824 342 315
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable, net 3,182 (9,047) 19,690
Inventories, net (37,147) (39,402) 51,092
Other assets 5,630 (3,074) (12,966)
Accounts payable and accrued expenses 3,936 2,638 12,225
Accrued employee compensation and benefits 2,848 1,623 9,875
Accrued warranty expense (4,499) 3,258 286
Income taxes payable (1,644) 4,088 (10,001)
Accrued restructuring costs — (1,379) (8,517)
Deferred compensation (1,587) (1,691) 3,969
Net cash provided by operating activities 100,153 91,063 166,296
Cash flows from investing activities:
Capital expenditures (35,274) (28,386) (56,244)
Acquisitions, net of cash acquired (5,758) (444) (2,389)
Investment in marketable securities (6,422) — —
Proceeds from sale of capital assets 4,629 244 5,095
Net cash used in investing activities (42,825) (28,586) (53,538)
Cash flows from financing activities:
Net payments on line of credit — — (70,919)
(Payments on) proceeds from note payable (1,168) — 35,761
Issuance of Common Stock 50,651 28,233 9,009
Acquisition of Treasury Stock (104,049) (80,469) —
Dividends paid, net (19,447) (19,538) (19,760)
Proceeds from sale-leaseback of equipment — 1,268 —
Net cash used in financing activities (74,013) (70,506) (45,909)
Effect of exchange rate changes on cash and cash equivalents (1,648) (1,977) 135
Net (decrease) increase in cash and cash equivalents (18,333) (10,006) 66,984
Cash and cash equivalents at beginning of year 102,596 112,602 45,618
Cash and cash equivalents at end of year $ 84,263 $ 102,596 $ 112,602
Supplemental disclosures:
Issuance of note payable for acquisition of intangible assets $ 6,702 $ — $ —
Cancellation of restricted Common Stock $ 992 $ 217 $ 684
Common Stock issued for acquisition of intangible assets $ 516 $ — $ —
Non-cash financing $ — $ — $ 48,732
Cash paid for interest and fees $ 977 $ 805 $ 3,637
Cash paid for income taxes $ 25,738 $ 29,245 $ 30,670
The accompanying notes are an integral part of these financial statements.