2010 10-K: Part II ($000) 2010 2009  2008  2010 Change 2009 Change Consolidated net income  $ 86,457 $ 81,997  $ 90,026  $ 4,460 $ (8,029) Adjustments to reconcile consolidated net income to net cash flows from operating activities:  Holding gain upon acquisition of additional (4,564) (352)  —  (4,212) (352) ownership of equity method investments Deferred income tax (benefit) expense  211 (2,207)  11,901  2,418 (14,108) Excess tax benefits from stock-option exercises (7,507) (8,693)   (26,638)  1,186 17,945 and vesting of restricted stock units Depreciation and amortization expense  39,664 31,961  25,996  7,703 5,965 Stock-based compensation expense  13,793 11,593  11,281  2,200 312 All other non-cash items included in net income  (1,099) 702  (352)  (1,801) 1,054 Changes in operating assets and liabilities, net of effects of acquisitions:  Cash paid for bonuses  (21,360)  (58,867)   (49,253)  37,507 (9,614) Cash paid for income taxes  (37,624)  (38,009)  (19,782)  385  (18,227) Accounts receivable  (23,652) 12,364  (658)  (36,016) 13,022 Deferred revenue  5,752 (8,704)  (1,595)  14,456 (7,109) Income taxes–current  42,193  49,685  41,860  (7,492) 7,825 Accrued compensation  33,526 32,138  46,920  1,388  (14,782) Deferred rent  1,364 5,679  18,906  (4,315)  (13,227) Other assets  (2,341) 2,521  1,573  (4,862) 948 Accounts payable and accrued liabilities  (759) (9,476)  691  8,717 (10,167) All other  (638) (1,076)  (1,537)  438 461 Cash provided by operating activities  $ 123,416 $101,256  $ 149,339  $ 22,160 $ (48,083) 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. 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. 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. 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. 80