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To provide investors with additional insight into our financial results, we provide a comparison between the change in consolidated net income and the change in cash provided by operating activities: 

In 2010, cash provided by operating activities increased more than consolidated net income. The $37.5 million decrease in bonuses paid in 2010 compared with 2009 was the primary driver behind the difference between net income and cash provided by operations. 

In 2009, cash provided by operating activities declined more than consolidated net income. Deferred rent of $18.9 million, primarily for tenant improvement allowances received in connection with the build-out of our new headquarters in Chicago, benefited cash flow in 2008. The tenant improvement allowance received in 2008 is being amortized as a reduction in office lease expense over the lease term and will be deducted from net income to arrive at cash provided by operating activities. The $18.2 million increase in tax payments, the $9.6 million increase in bonuses paid in 2009, and a lower cash flow benefit from accrued compensation, primarily reflect- ing the reduction in the 2009 bonus expense, also contributed to the difference between net income and cash from operations. 

FASB ASC 718, Compensation—Stock Compensation , requires that we classify excess tax benefits as a financing activity, which con- tributes to the difference between net income and cash from operations. In 2010, 2009, and 2008 we classified $7.5 million, $8.7 million, and $26.6 million of excess tax benefits, respectively, as financing activities. We describe these excess tax benefits in the Liquidity and Capital Resources section. 

Capital expenditures:  We spent $14.8 million for capital expenditures in 2010, primarily for computer hardware and leasehold improve- ments. A significant portion of the capital expenditures in 2010 are for new office space in Shenzhen, China. This new office facility was substantially completed in early 2011. In 2009, capital expen- ditures were $12.4 million, a decrease of $36.1 million from 2008 mainly because of the timing of payments related to our new cor- porate headquarters in Chicago. 

