Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities      
Net income $ 76,930 $ 87,257 $ 51,524
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 8,017 6,297 5,363
Amortization of right-of-use assets 21,207 0 0
Provision for bad debt expense 114 291 219
Stock-based compensation 9,278 11,983 9,145
Deferred taxes, net 226 (142) 12,825
Net realized gains on marketable securities, available-for-sale (87) (10) (2)
Other non-cash items (176) (194) 108
Changes in operating assets and liabilities:      
Commissions receivable (55) 4,783 (4,777)
Prepaid expenses (2,740) 1,757 (1,567)
Prepaid rent 0 1,500 (2,107)
Assets held in rabbi trust 0 0 (700)
Other assets, net (45,176) (7,247) (13,665)
Accounts payable and other liabilities (486) 226 (572)
Income tax receivable/payable (9,485) 5,794 (126)
Accrued bonuses and other employee related expenses (5,889) 4,676 1,782
Deferred compensation and commissions (8,975) (438) 8,427
Operating lease liabilities (17,102) 0 0
Deferred rent and other liabilities (314) 781 660
Net cash provided by operating activities 25,287 117,314 66,537
Cash flows from investing activities      
Acquisitions, net of cash received (6,083) (14,926) 0
Purchases of marketable securities, available-for-sale (168,083) (208,460) (65,093)
Proceeds from sales and maturities of marketable securities, available-for-sale 179,693 113,911 44,753
Payments received on employee notes receivable 42 18 27
Issuances of employee notes receivable (200) (451) (481)
Purchase of property and equipment (8,812) (8,072) (6,554)
Proceeds from sale of property and equipment 21 0 10
Net cash used in investing activities (3,422) (117,980) (27,338)
Cash flows from financing activities      
Proceeds from issuance of shares pursuant to employee stock purchase plan 657 621 653
Taxes paid related to net share settlement of stock-based awards (2,735) (5,023) (5,451)
Principal payments on notes payable to former stockholders (1,087) (1,035) (986)
Principal payments on stock appreciation rights liability (185) 0 0
Payments of contingent consideration (528) 0 0
Net cash used in financing activities (3,878) (5,437) (5,784)
Net increase (decrease) in cash and cash equivalents 17,987 (6,103) 33,415
Cash and cash equivalents at beginning of year 214,683 220,786 187,371
Cash and cash equivalents at end of year 232,670 214,683 220,786
Supplemental disclosures of cash flow information      
Interest paid during the period 2,107 2,195 1,912
Income taxes paid, net $ 39,841 $ 24,311 $ 35,002