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## Cash, Cash Equivalents, and Investments ($000 as of Dec. 31) 

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## Cash, Cash Equivalents, and Investments 

As of December 31, 2010, we had cash, cash equivalents, and invest- ments of $365.4 million, an increase of $22.9 million compared with December 31, 2009. This increase mainly reflects cash provided by operating activities and proceeds received from employee stock- option exercises, partially offset by payments for acquisitions and capital expenditures. 

We used a portion of our cash and investments balances in the first quarter of 2011 to make annual bonus payments of approxi- mately $38 million. In 2011, we expect to pay approximately $4.2 million to two former executives as part of previously announced separation agreements. 

## Cash Provided by Operating Activities 

Our main source of capital is cash generated from operating activ- ities. We typically pay bonuses in the first quarter of the year. As a result, cash flow from operations in the first quarter tends to be lower compared with subsequent quarters. 

In 2010, cash provided by operating activities was $123.4 million, an increase of $22.2 million over 2009. The increase primarily reflects lower bonus payments in 2010. We paid $21.4 million in annual bonus payments in the first quarter of 2010, compared with $58.9 million in 2009. The bonuses paid in 2009 included approximately $48.9 million of bonus expense recorded in 2008 and approximately $10.0 million of bonus payments deferred from 2007. In accordance with bonus program revisions adopted in January 2009, we no lon- ger defer payment of a portion of the bonus from prior years. 

In addition, in 2010, we paid $4.9 million to one former and two current executives to adjust the tax treatment of certain stock options originally considered incentive stock options. 

In 2009, cash provided by operating activities was $101.3 million, driven by $115.0 million of net income (adjusted for non-cash items) partially offset by $13.7 million of changes in our net operating assets and liabilities, mainly driven by bonus payments. We paid $58.9 million for bonuses in 2009, including $10.0 million in deferred payments from 2007. The cash flow impact of these payments was partially offset by the cash flow benefit from accrued compensation for the 2009 bonuses. 

In 2008, cash provided by operating activities was $149.3 million, driven by $112.2 million of net income (adjusted for non-cash items) and $37.1 million of changes in our net operating assets and liabil- ities. Changes in our operating assets and liabilities benefited from a $18.9 million increase in deferred rent related to tenant improve- ment allowances received in connection with the build-out of our new headquarters, a $46.9 million increase in accrued compensation, and a $41.9 million increase in income taxes payable. Bonus pay- ments of approximately $49.3 million and tax payments of $19.8 million offset these cash flow benefits. 

## Cash Provided by Operating Activities ($000) 

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