Callaway 2003 Annual Report Download - page 44

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CALLAWAY GOLF COMPANY 41
(In thousands) 2003 2002 2001
Cash flows from operating activities:
Net income $ 45,523 $ 69,446 $ 58,375
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 44,496 37,640 37,467
Loss on disposal of long-lived assets 24,163 1,168 1,824
Loss on purchase of leased equipment — 2,318 —
Tax benefit (reversal of benefit) from exercise of stock options (982) 5,479 14,520
Non-cash compensation 15 314 342
Non-cash energy derivative losses — — 19,922
Net non-cash foreign currency hedging (gains) loss 2,619 (4,238) (4,748)
Net (gain) loss from sale of marketable securities 98 (37) —
Deferred taxes (8,320) 11,357 1,732
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable, net 12,698 (9,279) 3,182
Inventories, net 4,897 21,785 (37,147)
Other assets (4,743) 10,202 5,630
Accounts payable and accrued expenses (2,561) 11,579 3,936
Accrued employee compensation and benefits (3,898) (2,383) 2,848
Accrued warranty expense (838) (21,400) (4,499)
Income taxes payable 4,004 6,185 (1,644)
Deferred compensation 1,572 (922) (1,587)
Net cash provided by operating activities 118,743 139,214 100,153
Cash flows from investing activities:
Capital expenditures (7,810) (73,502) (35,274)
Acquisitions, net of cash acquired (160,321) — (5,758)
Investment in marketable securities — — (6,422)
Proceeds from sale of marketable securities 24 6,998 —
Cash paid for investment — (2,000) —
Proceeds from sale of capital assets 178 871 4,629
Net cash used in investing activities (167,929) (67,633) (42,825)
Cash flows from financing activities:
Payments on financing arrangements (8,117) (2,374) (1,168)
Issuance of Common Stock 17,994 18,305 50,651
Acquisition of Treasury Stock (4,755) (46,457) (104,049)
Dividends paid, net (18,536) (18,601) (19,447)
Net cash used in financing activities (13,414) (49,127) (74,013)
Effect of exchange rate changes on cash and cash equivalents 1,488 1,735 (1,648)
Net increase (decrease) in cash and cash equivalents (61,112) 24,189 (18,333)
Cash and cash equivalents at beginning of year 108,452 84,263 102,596
Cash and cash equivalents at end of year $ 47,340 $ 108,452 $ 84,263
Supplemental disclosures (See Note 3 for acquisition related 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
Common Stock issued for acquisition of intangible assets $ — $ — $ 516
Cash paid for interest and fees $ (835) $ (953) $ (977)
Cash paid for income taxes $ (30,925) $ (16,628) $ (25,738)
The accompanying notes are an integral part of these financial statements.
CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,