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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net income $ 24,874 $ 21,768
Adjustments to reconcile net income to net cash provided by operating activities:    
Loss from discontinued operations, net of tax 152 30
Gain on sale of operations, net (22) (101)
Depreciation and amortization expense 5,641 5,245
Amortization of deferred financing costs 131 131
Amortization of discount on contingent earnout liability 131 36
Bad debt expense, net of recoveries 734 1,170
Adjustment to contingent earnout liability 485 (1,263)
Deferred income taxes (796) 434
Employee stock awards 1,374 1,409
Excess tax benefits from share based payment arrangements [1] (644) (102)
Changes in assets and liabilities, net of acquisitions and divestitures:    
Restricted cash 1,229 (1,235)
Accounts receivable, net (46,077) (44,485)
Other assets 1,088 (833)
Accounts payable 1,285 995
Income taxes payable 17,837 13,516
Accrued personnel costs (18,800) (15,510)
Other liabilities (1,767) 1,127
Operating cash flows used in continuing operations (13,145) (17,668)
Operating cash flows (used in) provided by discontinued operations (118) 506
Net cash used in operating activities (13,263) (17,162)
Cash flows from investing activities:    
Business acquisitions and purchases of client lists, net of cash acquired (4,344) (2,043)
Purchases of client fund investments (10,418) (3,560)
Proceeds from the sales and maturities of client fund investments 3,425 3,577
Proceeds from sales of divested operations 22 42
Decrease in funds held for clients 61,922 20,746
Additions to property and equipment, net (1,760) (880)
Collection of notes receivable   34
Net provided by investing activities 48,847 17,916
Cash flows from financing activities:    
Proceeds from bank debt 139,700 145,200
Payment of bank debt (118,400) (117,100)
Payment for acquisition of treasury stock (2,271) (6,137)
Decrease in client funds obligations (54,802) (20,805)
Proceeds from exercise of stock options 2,453 796
Payment of contingent consideration of acquisitions (3,231) (2,035)
Excess tax benefit from exercise of stock awards [1]   102
Payment of notes payable (103) (58)
Deferred financing costs   (6)
Net cash used in financing activities (36,654) (43)
Net (decrease) increase in cash and cash equivalents (1,070) 711
Cash and cash equivalents at beginning of year 3,494 850
Cash and cash equivalents at end of period $ 2,424 $ 1,561
[1] (1) See Note 15 to the consolidated financial statements for discussion of our adoption of ASU 2016-09 (as defined in Note 15).