Callaway 2006 Annual Report Download - page 73

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2006 2005 2004
Cash flows from operating activities:
Net income (loss) ............................................. $23,290 $ 13,284 $(10,103)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization ............................... 32,274 38,260 51,154
Noncash compensation ..................................... 11,921 6,527 1,741
Loss on disposal of long-lived assets .......................... 1,135 4,031 7,669
Deferred taxes ........................................... 979 (3,906) 7,707
Tax benefit from exercise of stock options ..................... — 2,408 2,161
Net noncash foreign currency hedging loss ..................... — — 1,811
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable, net ................................... (12,128) 2,296 (1,048)
Inventories, net ........................................... (16,842) (65,595) 10,299
Other assets ............................................. (4,475) 7,583 1,554
Accounts payable and accrued expenses ....................... (4,525) 32,423 (17,122)
Accrued employee compensation and benefits .................. (6,376) 5,121 (5,895)
Accrued warranty expense .................................. 98 1,224 (584)
Income taxes receivable and payable .......................... (6,936) 26,676 (40,711)
Other liabilities ........................................... (1,128) (351) (273)
Net cash provided by operating activities .......................... 17,287 69,981 8,360
Cash flows from investing activities:
Capital expenditures ........................................... (32,453) (33,942) (25,809)
Investment in golf related ventures ............................... (10,008) — —
Proceeds from sale of capital assets ............................... 469 1,363 431
Acquisitions, net of cash acquired ................................ 374 — (9,204)
Net cash used in investing activities .............................. (41,618) (32,579) (34,582)
Cash flows from financing activities:
Issuance of common stock ...................................... 9,606 14,812 20,311
Acquisition of treasury stock .................................... (52,872) (39) (6,298)
Dividends paid, net ............................................ (19,212) (19,557) (19,069)
Proceeds from (payments on) line of credit, net ..................... 80,000 (13,000) 13,000
Minority interest in consolidated subsidiary ........................ 1,987 — —
Tax benefit from exercise of stock options ......................... 578 — —
Other financing activities ....................................... (16) (44) —
Net cash provided by (used in) financing activities ................... 20,071 (17,828) 7,944
Effect of exchange rate changes on cash and cash equivalents .............. 1,141 (1,750) 2,595
Net increase (decrease) in cash and cash equivalents ..................... (3,119) 17,824 (15,683)
Cash and cash equivalents at beginning of year .......................... 49,481 31,657 47,340
Cash and cash equivalents at end of year ............................... $46,362 $ 49,481 $ 31,657
Supplemental disclosures (See Note 4 for acquisition-related disclosures):
Cash paid for interest and fees ................................... $ (4,502) $ (2,096) $ (1,384)
Cash paid for income taxes ..................................... $(18,859) $(24,837) $(17,379)
The accompanying notes are an integral part of these financial statements.
F-5