CLB 2018 Annual Report

F-7 CORE LABORATORIES N.V. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2018, 2017 and 2016 (In thousands) 2018 2017 2016 CASH FLOWS FROM OPERATINGACTIVITIES: Income from continuing operations $ 79,847 $ 80,985 $ 65,024 Income (loss) from discontinued operations, net of tax (58) 2,111 (1,165) Net income 79,789 83,096 63,859 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 34,194 22,942 22,079 Depreciation and amortization 23,087 24,524 26,872 Changes to value of life insurance policies (874) (6,112) (824) Deferred income taxes 1,832 9,015 (14,385) Realization of pension obligation 2,257 (724) (1,243) Net (recovery) provision for doubtful accounts 692 (202) (18) Other non-cash items (159) 217 345 Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable 2,265 (18,565) 31,584 Inventories (10,403) 446 6,219 Prepaid expenses and other current assets (9,048) (4,549) 2,657 Other assets 6,264 545 340 Accounts payable (1,752) 8,721 (1,036) Accrued expenses (6,903) (6,775) (6,738) Other long-term liabilities (11,239) 10,313 587 Unearned revenue 1,825 1,379 1,589 Net cash provided by operating activities 111,827 124,271 131,887 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (21,741) (18,775) (11,356) Patents and other intangibles (1,190) (379) (348) Acquisitions, net of cash acquired (47,314) — (1,242) Proceeds from sale of assets 882 702 740 Premiums on life insurance (1,276) (2,105) (2,515) Net cash used in investing activities (70,639) (20,557) (14,721) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of debt borrowings (114,000) (130,000) (316,244) Proceeds from debt borrowings 178,000 140,000 99,000 Excess tax benefits from stock-based payments — — (1,162) Debt financing costs (1,760) — — Non-controlling interest - dividend (10) (26) (1,386) Dividends paid (97,251) (97,143) (95,145) Repurchase of common shares (7,451) (16,909) (7,161) Issuance of common shares — — 197,202 Net cash used in financing activities (42,472) (104,078) (124,896) NET CHANGE IN CASH AND CASH EQUIVALENTS (1,284) (364) (7,730) CASH AND CASH EQUIVALENTS, beginning of year 14,400 14,764 22,494 CASH AND CASH EQUIVALENTS, end of year $ 13,116 $ 14,400 $ 14,764 The accompanying notes are an integral part of these Consolidated Financial Statements.