AMN 2017 Annual Report

36 AMN HEALTHCARE SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended December 31, 2017 2016 2015 Cash flows from operating activities: Net income $ 132,558 $ 105,838 $ 81,891 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 32,279 29,620 20,953 Non-cash interest expense and other 2,231 2,416 1,934 Change in fair value of contingent consideration 184 (24) (330) Increase in allowances for doubtful accounts and sales credits 10,339 12,008 6,684 Provision for deferred income taxes 5,607 (9,424) 12,677 Share-based compensation 10,237 11,399 10,284 Excess tax benefit from equity awards vested and exercised — (3,351) (7,449) Loss on disposal or sale of fixed assets 227 69 4 Amortization of discount on investments (127) — — Changes in assets and liabilities, net of effects from acquisitions: Accounts receivable (18,858) (58,700) (75,653) Accounts receivable, subcontractor 8,221 1,542 (22,365) Income taxes receivable (15,537) 6,469 7,867 Prepaid expenses (2,316) (455) (2,915) Other current assets (934) (13,938) (5,409) Other assets (5,406) (3,562) (4,785) Accounts payable and accrued expenses (7,862) 17,705 29,611 Accrued compensation and benefits 13,430 19,142 11,888 Other liabilities (8,442) 8,147 (2,103) Deferred revenue (548) 732 1,313 Restricted cash, cash equivalents and investments balance (40,021) 6,218 (7,784) Net cash provided by operating activities 115,262 131,851 56,313 Cash flows from investing activities: Purchase and development of fixed assets (26,529) (21,956) (27,010) Purchase of investments (15,096) (13,152) — Proceeds from maturity of investments 20,301 2,000 — Change in restricted cash, cash equivalents and investments balance 1,915 999 — Equity investment (2,000) — (1,000) Payments to fund deferred compensation plan (10,537) (6,911) (3,004) Cash paid for acquisitions, net of cash received — (216,494) (84,081) Cash paid for other liabilities, working capital adjustments and holdback liability for prior year acquisitions (1,500) (1,848) (990) Net cash used in investing activities (33,446) (257,362) (116,085)