Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities    
Net income $ 61,032 $ 43,044
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 4,529 3,975
Provision for bad debt expense 52 33
Stock-based compensation 8,919 6,173
Deferred taxes, net (735) 1,541
Net realized (gains) losses on marketable securities, available-for-sale (12) (2)
Other non-cash items (148) (46)
Changes in operating assets and liabilities:    
Commissions receivable 4,183 594
Prepaid expenses 3,145 2,266
Prepaid rent 875 (1,831)
Asset held in rabbi trust 0 (700)
Other assets (9,066) (12,780)
Accounts payable and other liabilities (1,552) (1,359)
Income tax receivable/payable 7,271 2,477
Accrued bonuses and other employee related expenses (558) (1,763)
Deferred compensation and commissions (23,739) (16,760)
Deferred rent and other liabilities 817 476
Net cash provided by operating activities 55,013 25,338
Cash flows from investing activities    
Acquisitions, net of cash received (6,990) 0
Purchases of marketable securities, available-for-sale (168,672) (37,561)
Proceeds from sales and maturities of marketable securities, available-for-sale 88,027 14,950
Issuances of employee notes receivable (126) (432)
Payments received on employee notes receivable 12 9
Proceeds from sale of property and equipment 0 10
Purchase of property and equipment (4,574) (4,987)
Net cash used in investing activities (92,323) (28,011)
Cash flows from financing activities    
Taxes paid related to net share settlement of stock-based awards (1,777) (1,442)
Proceeds from issuance of shares pursuant to employee stock purchase plan 356 392
Principal payments on notes payable to former stockholders (1,035) (986)
Net cash used in financing activities (2,456) (2,036)
Net decrease in cash and cash equivalents (39,766) (4,709)
Cash and cash equivalents at beginning of period 220,786 187,371
Cash and cash equivalents at end of period 181,020 182,662
Supplemental disclosures of cash flow information    
Interest paid during the period 2,180 1,896
Income taxes paid, net 16,237 23,546
Supplemental disclosures of noncash investing and financing activities    
Reduction of accrued bonuses and other employee related expenses in settlement of employee notes receivable 192 243
Change in property and equipment included in accounts payable and other liabilities $ 708 $ (203)