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
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities    
Net income $ 36,917 $ 40,178
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Depreciation and amortization expense 3,764 2,878
Amortization of right-of-use assets 10,242 0
Recovery of bad debt expense (13) (29)
Stock-based compensation 4,926 5,772
Deferred taxes, net 3,863 1,489
Net realized gains on marketable securities, available-for-sale (12) (12)
Other non-cash items (228) 151
Changes in operating assets and liabilities:    
Commissions receivable (820) 2,861
Prepaid expenses (1,689) 2,006
Prepaid rent 0 482
Other assets, net (21,367) (3,588)
Accounts payable and other liabilities 14 (1,525)
Income tax receivable/payable (9,248) 1,525
Accrued bonuses and other employee related expenses (14,228) (6,751)
Deferred compensation and commissions (28,291) (23,066)
Operating lease liabilities (8,169) 0
Deferred rent and other liabilities (24) 675
Net cash (used in) provided by operating activities (24,363) 23,046
Cash flows from investing activities    
Acquisition, net of cash received 0 (6,216)
Purchases of marketable securities, available-for-sale (79,357) (57,411)
Proceeds from sales and maturities of marketable securities, available-for-sale 103,108 64,969
Issuances of employee notes receivable 0 (125)
Payments received on employee notes receivable 1 6
Purchase of property and equipment (4,126) (2,643)
Net cash provided by (used in) investing activities 19,626 (1,420)
Cash flows from financing activities    
Taxes paid related to net share settlement of stock-based awards (2,624) (1,714)
Proceeds from issuance of shares pursuant to employee stock purchase plan 338 356
Principal payments on notes payable to former stockholders (1,087) (1,035)
Principal payments on stock appreciation rights liability 185 0
Net cash used in financing activities (3,188) (2,393)
Net (decrease) increase in cash and cash equivalents (7,925) 19,233
Cash and cash equivalents at beginning of period 214,683 220,786
Cash and cash equivalents at end of period 206,758 240,019
Supplemental disclosures of cash flow information    
Interest paid during the period 1,967 2,005
Income taxes paid, net $ 19,520 $ 11,443