Callaway 2010 Annual Report Download - page 83

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2010 2009 2008
Cash flows from operating activities:
Net income (loss) ............................................. $(18,804) $ (15,260) $ 66,176
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization .............................. 40,949 40,748 37,963
Impairment charge ........................................ 7,547 — —
Deferred taxes ........................................... (3,788) 3,424 13,977
Compensatory stock and stock options ........................ 9,588 8,756 6,375
Loss (gain) on disposal of long-lived assets .................... 177 (594) 510
Non-cash change in energy derivative valuation account .......... — — (19,922)
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable, net ................................... (2,096) (11,567) (18,133)
Inventories .............................................. (38,824) 47,415 (14,847)
Other assets ............................................. (9,896) 8,380 (13,795)
Accounts payable and accrued expenses ....................... 13,012 (19,713) 20,122
Accrued employee compensation and benefits .................. 2,595 (5,179) (17,925)
Accrued warranty expense .................................. (1,022) (2,165) (772)
Income taxes receivable and payable ......................... 8,356 (6,567) (10,234)
Other liabilities .......................................... 1,838 (4,807) (7,790)
Net cash provided by operating activities .......................... 9,632 42,871 41,705
Cash flows from investing activities:
Capital expenditures .......................................... (22,216) (38,845) (51,005)
Acquisitions, net of cash acquired ................................ — — (9,797)
Other investing activities ....................................... (2,581) 166 (718)
Net cash used in investing activities .............................. (24,797) (38,679) (61,520)
Cash flows from financing activities:
Issuance of common stock ...................................... 2,954 2,562 4,708
Issuance of preferred stock ..................................... — 140,000 —
Equity issuance costs .......................................... (54) (6,031) —
Dividends paid, net ........................................... (13,067) (11,590) (17,794)
Acquisition of treasury stock .................................... — — (23,650)
Proceeds from (payments on) credit facilities, net ................... — (90,000) 53,493
Other financing activities ...................................... (650) 172 307
Net cash provided by (used in) financing activities .................. (10,817) 35,113 17,064
Effect of exchange rate changes on cash and cash equivalents .............. 2,711 672 (8,787)
Net increase (decrease) in cash and cash equivalents ..................... (23,271) 39,977 (11,538)
Cash and cash equivalents at beginning of year ......................... 78,314 38,337 49,875
Cash and cash equivalents at end of year .............................. $55,043 $ 78,314 $ 38,337
Supplemental disclosures:
Cash paid for interest and fees ................................... $ (568) $ (1,563) $ (4,346)
Cash received (paid) for income taxes ............................ $13,849 $ 8,974 $(27,483)
Dividends payable ............................................ $ 438 $ 438 $ —
The accompanying notes are an integral part of these consolidated financial statements.
F-5