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, 2019
Sep. 30, 2018
Cash flows from operating activities    
Net income $ 56,209 $ 61,032
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Depreciation and amortization expense 5,674 4,529
Amortization of right-of-use assets 15,433 0
Provision of bad debt expense 75 52
Stock-based compensation 7,040 8,919
Deferred taxes, net 3,829 (735)
Net realized gains on marketable securities, available-for-sale (70) (12)
Other non-cash items 489 (148)
Changes in operating assets and liabilities:    
Commissions receivable (1,368) 4,183
Prepaid expenses (1,426) 3,145
Prepaid rent 0 875
Other assets, net (31,302) (9,066)
Accounts payable and other liabilities 103 (1,552)
Income tax receivable/payable (12,272) 7,271
Accrued bonuses and other employee related expenses (11,314) (558)
Deferred compensation and commissions (24,409) (23,739)
Operating lease liabilities (12,725) 0
Deferred rent and other liabilities (19) 817
Net cash (used in) provided by operating activities (6,053) 55,013
Cash flows from investing activities    
Acquisition, net of cash received 0 (6,990)
Purchases of marketable securities, available-for-sale (115,744) (168,672)
Proceeds from sales and maturities of marketable securities, available-for-sale 143,638 88,027
Issuances of employee notes receivable (200) (126)
Payments received on employee notes receivable 28 12
Purchase of property and equipment (6,643) (4,574)
Net cash provided by (used in) investing activities 21,079 (92,323)
Cash flows from financing activities    
Taxes paid related to net share settlement of stock-based awards (2,694) (1,777)
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 (3,628) (2,456)
Net increase (decrease) in cash and cash equivalents 11,398 (39,766)
Cash and cash equivalents at beginning of period 214,683 220,786
Cash and cash equivalents at end of period 226,081 181,020
Supplemental disclosures of cash flow information    
Interest paid during the period 2,092 2,180
Income taxes paid, net $ 29,602 $ 16,237