90 2010 10-K: Part II 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. 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. 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. Cash Provided by Operating Activities ($000) Cash Provided by Operating Activities Cash, Cash Equivalents, and Investments Cash, Cash Equivalents, and Investments ($000 as of Dec. 31) $163,751 $258,588 $297,577 $342,553  $365,416 2006  2007  2008  2009  2010 % change  6.9%  57.9%  15.1%  15.1%  6.7% $98,245 $112,037 $149,339 $101,256 $123,416 2006  2007  2008  2009  2010 % change  102.8%  13.0%  34.5%  (32.2%)  21.9%