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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Operating activities      
Net income $ 98,812 $ 77,747 $ 174,613
Adjustment to reconcile net income to net cash provided by operating activities:      
Depreciation 21,465 16,742 13,706
Amortization of Intangible Assets 32,953 23,591 21,024
Amortization of original issue discount and deferred financing costs 3,940 5,429 6,615
Tradename and goodwill impairment 0 40,687 [1] 0
Loss on extinguishment of debt [2] 574 4,795 2,084
(Gain) loss on change in contractual interest rate [3] 2,957 2,381 (16,014)
Gain on remeasurement of contingent consideration (4,877)
Deferred income taxes 39,347 26,955 37,878
Share-based compensation expense [4] 9,493 8,241 12,612
Other 127 540 1,248
Net changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable (9,082) 9,610 (2,988)
Inventories 15,514 9,084 3,508
Other assets 406 5,063 2,456
Accounts payable 32,908 (27,771) 15,269
Accrued wages and employee benefits 5,196 (5,361) (9,405)
Other accrued liabilities 6,719 445 6,229
Excess tax benefits from equity awards (7,920) (9,559) (10,972)
Net cash provided by operating activities 253,409 188,619 252,986
Investing activities      
Proceeds from sale of property and equipment 1,360 105 394
Expenditures for property and equipment (30,467) (30,651) (34,689)
Acquisition of business, net of cash acquired (61,386) (73,782) (61,196)
Deposit paid related to acquisition (15,329)
Net cash used in investing activities (105,822) (104,328) (95,491)
Financing activities      
Proceeds from short-term borrowings 28,712 26,384 6,550
Proceeds from long-term borrowings 100,000
Repayments of short-term borrowings (27,755) (23,149) (26,444)
Repayments of long-term borrowings and capital lease obligations (37,627) (150,826) (94,035)
Stock repurchases (149,937) (99,942)
Payment of debt issuance costs (4,557) (2,117) (4)
Cash dividends paid (76) (1,436) (902)
Taxes paid related to the net share settlement of equity awards (14,008) (12,956) (12,160)
Proceeds from the exercise of stock options 1,623
Excess tax benefits from equity awards 7,920 9,559 10,972
Net cash used in financing activities (195,705) (154,483) (116,023)
Effect of exchange rate changes on cash and cash equivalents (467) (3,712) (1,858)
Net increase (decrease) in cash and cash equivalents (48,585) (73,904) 39,614
Cash and cash equivalents at beginning of period 115,857 189,761 150,147
Cash and cash equivalents at end of period 67,272 115,857 189,761
Supplemental disclosure of cash flow information      
Interest 42,456 39,524 42,592
Income taxes $ 8,889 $ 6,087 $ 34,283
[1] Represents the 2015 impairment of certain tradenames due to a change in brand strategy to transition and consolidate various brands to the Generac tradename ($36,076) and the impairment of goodwill related to the Ottomotores reporting unit ($4,611)
[2] Represents the write-off of original issue discount and capitalized debt issuance costs due to voluntary debt prepayments.
[3] For the year ended December 31, 2016, represents a non-cash loss in the third quarter 2016 relating to the continued 25 basis point increase in borrowing costs as a result of the credit agreement leverage ratio remaining above 3.0 times and expected to remain above 3.0 based on current projections. For the year ended December 31, 2015, represents a non-cash loss relating to a 25 basis point increase in borrowing costs as a result of the credit agreement leverage ratio rising above 3.0 times effective third quarter 2015 and expected to remain above 3.0 times based on projections at the time. For the year ended December 31, 2014 represents a non-cash gain relating to a 25 basis point reduction in borrowing costs as a result of the credit agreement leverage ratio falling below 3.0 times effective second quarter 2014 and expected to remain below 3.0 times based on projections at the time.
[4] Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods.