Callaway 2008 Annual Report Download - page 79

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2008 2007 2006
Cash flows from operating activities:
Net income ................................................. $66,176 $ 54,587 $ 23,290
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization .............................. 37,963 35,326 32,274
Deferred taxes .......................................... 13,977 9,047 673
Compensatory stock and stock options ....................... 6,375 10,851 11,921
Loss (gain) on disposal of long-lived assets ................... 510 (4,731) 1,135
Non-cash change in energy derivative valuation account ......... (19,922) — —
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable, net .................................. (18,133) 12,478 (12,128)
Inventories ............................................. (14,847) 17,292 (16,842)
Other assets ............................................ (13,795) (7,410) (4,475)
Accounts payable and accrued expenses ...................... 20,122 10,341 (4,525)
Accrued employee compensation and benefits ................. (17,925) 25,158 (6,376)
Accrued warranty expense ................................. (772) (978) 98
Income taxes receivable and payable ......................... (10,234) (10,573) (6,936)
Other liabilities .......................................... (7,790) 594 (1,128)
Net cash provided by operating activities ......................... 41,705 151,982 16,981
Cash flows from investing activities:
Capital expenditures .......................................... (51,005) (32,930) (32,453)
Acquisitions, net of cash acquired ............................... (9,797) — 374
Proceeds from sale of capital assets .............................. 45 11,460 469
Investment in golf-related ventures .............................. (763) (3,698) (10,008)
Net cash used in investing activities ............................. (61,520) (25,168) (41,618)
Cash flows from financing activities:
Issuance of Common Stock .................................... 4,708 48,035 9,606
Acquisition of treasury stock ................................... (23,650) (114,795) (52,872)
Dividends paid, net ........................................... (17,794) (18,755) (19,212)
Proceeds from (payments on) credit facilities, net ................... 53,493 (43,493) 80,000
Excess tax benefit from exercise of stock options and compensatory
stock .................................................... 72 6,031 884
Other financing activities ...................................... 235 (9) 1,971
Net cash provided by (used in) financing activities .................. 17,064 (122,986) 20,377
Effect of exchange rate changes on cash and cash equivalents ............. (8,787) (315) 1,141
Net (decrease) increase in cash and cash equivalents .................... (11,538) 3,513 (3,119)
Cash and cash equivalents at beginning of year ......................... 49,875 46,362 49,481
Cash and cash equivalents at end of year .............................. $38,337 $ 49,875 $ 46,362
Supplemental disclosures:
Cash paid for interest and fees .................................. $ (4,346) $ (5,633) $ (4,502)
Cash paid for income taxes .................................... $(27,483) $ (38,292) $(18,859)
The accompanying notes are an integral part of these consolidated financial statements.
F-5