AMN 2017 Annual Report

26 Operating Activities Net cash provided by operating activities for 2017, 2016 and 2015 was $115.3 million, $131.9 million and $56.3 million, respectively. The decrease in net cash provided by operating activities for 2017 from 2016 was primarily attributable to (1) an increase in restricted cash, cash equivalents and investments attributable to cash payments made to our captive insurance entity, which are restricted for use by the captive for future claim payments and, to a lesser extent, its working capital needs, (2) a decrease in accounts payable and accrued expenses between periods due to timing of payments and (3) an increase in income taxes receivable. The overall decrease was partially offset by (1) improved operating results, (2) smaller increase in accounts receivable in 2017 compared to the increase in 2016, and (3) excess tax benefits on the vesting of employee equity awards resulting from the adoption of a new accounting pronouncement discussed in “Item 8. Financial Statements and Supplementary Data—Notes to Consolidated Financial Statements—Note (1), Summary of Significant Accounting Policies.” Our Days Sales Outstanding was 63 and 64 days at December 31, 2017 and December 31, 2016, respectively. Investing Activities Net cash used in investing activities for 2017, 2016 and 2015 was $33.4 million, $257.4 million and $116.1 million, respectively. The year-over-year decrease from 2016 to 2017 in net cash used in investing activities was primarily attributable to (1) no new acquisitions in 2017 as compared to $216.5 million used for the acquisitions of BES and HSG in January 2016 and Peak in June 2016, (2) net proceeds of $5.2 million in 2017, as compared to a net purchase of $11.2 million restricted investment related to our captive insurance entity during 2016. The decrease was partially offset by $3.6 million additional payments made during 2017 as compared to 2016 to fund the deferred compensation plan. Capital expenditures were $26.5 million, $22.0 million and $27.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. Our capital expenditures in recent years were primarily to support the growth of the business and for investments made in conjunction with management initiatives to update our front and back office information technology platforms. We intend to continue our investment in these information technology initiatives, including investments of approximately $17 million in the next year, to standardize our staffing operations on PeopleSoft and Salesforce. We believe these investments will further differentiate our ability to deliver innovative workforce solutions in addition to delivering improved operating efficiency. Financing Activities Net cash (used in) provided by financing activities for 2017, 2016 and 2015 was ($77.2 million), $126.3 million and $56.2 million, respectively. Net cash used in financing activities for 2017 was primarily due to the repayments of $44.1 million under our Term Loans, (2) $20.2 million paid in connection with the repurchase of our common stock, and (3) $9.4 million cash paid for shares withheld for payroll taxes resulting from the vesting of employee equity awards. Credit Agreement Prior to February 9, 2018 We are party to a credit agreement (as amended to date, the “Credit Agreement”) with several lenders to provide for the following credit facilities: (A) a $275 million revolver facility (the “Revolver”), which includes a $40 million sublimit for the issuance of letters of credit and a $20 million sublimit for swingline loans, (B) a $150 million secured term loan credit facility (the “Original Term Loan”) and (C) a $75 million secured term loan facility (the “Second Term Loan,” and together with the Original Term Loan, the “Term Loans”). The Credit Agreement contains various customary affirmative and negative covenants, including restrictions on assumption of additional indebtedness, declaration and payment of dividends, dispositions of assets, consolidation into another entity and allowable investments. The Revolver and the Term Loans are secured by substantially all of our assets, including the common stock or equity interests of our domestic subsidiaries. For more detail regarding the terms of the Credit Agreement, including maturity dates, payment and interest terms, please see “Item 8. Financial Statements and Supplementary Data—Notes to Consolidated Financial Statements—Note (8), Notes Payable and Credit Agreement.” We repaid the entire Original Term Loan in 2016. As of December 31, 2016, the total of our Term Loans outstanding (including both the current and long-term portions), less unamortized fees, was $43.9 million. During 2017, we paid off the remaining balance of the Second Term Loan. There was zero and $82.5 million outstanding under the Revolver at December 31, 2017 and 2016, respectively. New Credit Agreement On February 9, 2018, we entered into a credit agreement (the “New Credit Agreement”) with several lenders to provide for a $400,000 secured revolving credit facility (the “Senior Credit Facility”) to replace our then-existing Credit Agreement. The Senior Credit Facility includes a $50,000 sublimit for the issuance of letters of credit and a $50,000 sublimit for swingline loans. Our obligations under the New Credit Agreement and the Senior Credit Facility are secured by substantially all of our assets. Borrowings under the Senior Credit Facility bear interest at floating rates, at our option, based upon either LIBOR plus a