Callaway 2002 Annual Report Download - page 42

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CALLAWAY GOLF COMPANY 39
Callaw ay Golf Co m pany
Cons o lid a ted Stat e m ents o f Cas h Flow s
Ye ar Ended Decem be r 31,
(In thousands) 2002 2001 2000
Cash flows from operating activities:
Net income $ 69,446 $ 58,375 $ 80,999
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 37,640 37,467 40,249
Loss on disposal of assets 1,168 1,824 342
Loss on purchase of leased equipment 2,318 — —
Tax benefit from exercise of stock options 5,479 14,520 6,806
Non-cash compensation 314 342 2,157
Non-cash energy derivative losses — 19,922 —
Net non-cash foreign currency hedging gains (4,238) (4,748) (1,410)
Net gains from sale of marketable securities (37) — —
Deferred taxes 11,357 1,732 4,906
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable, net (9,279) 3,182 (9,047)
Inventories, net 21,785 (37,147) (39,402)
Other assets 10,202 5,630 (3,074)
Accounts payable and accrued expenses 11,579 3,936 2,638
Accrued employee compensation and benefits (2,383) 2,848 1,623
Accrued warranty expense (21,400) (4,499) 3,258
Income taxes payable 6,185 (1,644) 4,088
Accrued restructuring costs — — (1,379)
Deferred compensation (922) (1,587) (1,691)
Net cash provided by operating activities 139,214 100,153 91,063
Cash flows from investing activities:
Capital expenditures (73,502) (35,274) (28,386)
Acquisitions, net of cash acquired — (5,758) (444)
Investment in marketable securities — (6,422) —
Proceeds from sale of marketable securities 6,998 — —
Cash paid for investment (2,000) — —
Proceeds from sale of capital assets 871 4,629 244
Net cash used in investing activities (67,633) (42,825) (28,586)
Cash flows from financing activities:
Payments on note payable (2,374) (1,168) —
Issuance of Common Stock 18,305 50,651 28,233
Acquisition of Treasury Stock (46,457) (104,049) (80,469)
Dividends paid, net (18,601) (19,447) (19,538)
Proceeds from sale-leaseback of equipment — — 1,268
Net cash used in financing activities (49,127) (74,013) (70,506)
Effect of exchange rate changes on cash and cash equivalents 1,735 (1,648) (1,977)
Net increase (decrease) in cash and cash equivalents 24,189 (18,333) (10,006)
Cash and cash equivalents at beginning of year 84,263 102,596 112,602
Cash and cash equivalents at end of year $ 108,452 $ 84,263 $ 102,596
Supplemental disclosures:
Marketable securities received upon demutualization of insurance provider $ 540 $ — $ —
Unrealized loss on marketable securities $ (92) $ — $ —
Issuance of note payable for acquisition of intangible assets $ — $ 6,702 $ —
Cancellation of restricted Common Stock $ — $ 992 $ 217
Common Stock issued for acquisition of intangible assets $ — $ 516 $ —
Cash paid for interest and fees $ (953) $ (977) $ (805)
Cash paid for income taxes $ (16,628) $ (25,738) $ (29,245)
The accompanying notes are an integral part of these financial statements.