Mercury Insurance 2013 Annual Report Download - page 71

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See accompanying notes to consolidated financial statements.
56
MERCURY GENERAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2013 2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 112,143 $ 116,911 $ 191,164
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 30,587 36,974 40,657
Net realized investment losses (gains) 11,422 (66,380) (58,397)
Bond amortization, net 12,529 6,757 4,615
Excess tax benefit from exercise of stock options (202) (86) (56)
Increase in premiums receivable (20,688) (56,588) (7,819)
Changes in current and deferred income taxes 3,451 (83) 45,431
Increase in deferred policy acquisition costs (8,556) (14,480) (851)
Increase (decrease) in unpaid losses and loss adjustment expenses 2,861 50,844 (48,926)
Increase in unearned premiums 33,098 77,002 10,048
Increase (decrease) in accounts payable and accrued expenses 30,367 1,197 (9,985)
Share-based compensation 974 (370) 899
Increase (decrease) in other payables 12,135 2,545 (4,142)
Other, net (10,317) (6,181) (4,113)
Net cash provided by operating activities 209,804 148,062 158,525
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed maturity securities available for sale in nature:
Purchases (831,796) (590,562) (379,963)
Sales 228,116 139,860 217,535
Calls or maturities 343,628 528,886 418,616
Equity securities available for sale in nature:
Purchases (596,883) (358,216) (351,198)
Sales 872,997 277,272 325,562
Calls 0 923 0
Changes in securities payable and receivable 1,702 1,919 (9,137)
Net increase in short-term investments (20,005) (58,949) (93,737)
Purchase of fixed assets (18,671) (15,177) (18,079)
Sale of fixed assets 820 2,044 2,990
Other, net 1,741 2,255 12,026
Net cash (used in) provided by investing activities (18,351) (69,745) 124,615
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to shareholders (134,776) (134,105) (132,142)
Excess tax benefit from exercise of stock options 202 86 56
Payment to retire senior notes 0 0 (125,000)
Payoff bank loan 0 0 (18,000)
Proceeds from stock options exercised 1,446 2,492 1,951
Proceeds from bank loan 50,000 0 20,000
Net cash used in financing activities (83,128) (131,527) (253,135)
Net increase (decrease) in cash 108,325 (53,210) 30,005
Cash:
Beginning of year 158,183 211,393 181,388
End of year $ 266,508 $ 158,183 $ 211,393
SUPPLEMENTAL CASH FLOW DISCLOSURE
Interest paid $ 998 $ 1,690 $ 6,193
Income taxes paid $ 16,503 $ 18,481 $ 8,503