CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating Activities:
Net income attributable to Sotheby's	$ 49,935	$ 50,760
Adjustments to reconcile net income attributable to Sotheby's to net cash (used) provided by operating activities:
Extinguishment of debt	0	10,855
Write-off of credit facility fees	0	3,982
Depreciation and amortization	15,620	14,443
Amortization of operating lease right-of-use assets	8,419	0
Deferred income tax expense	4,821	2,873
Share-based payments	15,917	14,689
Net pension benefit	(1,341)	(1,626)
Inventory writedowns and bad debt provisions	2,204	8,106
Amortization of debt issuance costs	862	877
Equity in earnings of investees	(2,381)	(2,040)
Other	1,013	947
Changes in assets and liabilities:
Accounts receivable	19,478	(285,172)
Client payables	(94,600)	205,791
Inventory	9,920	33,680
Changes in other operating assets and liabilities (see Note 12)	(37,100)	(41,370)
Net cash (used) provided by operating activities	(7,233)	16,795
Investing Activities:
Funding of notes receivable	(153,528)	(66,608)
Collections of notes receivable	165,348	161,192
Capital expenditures	(43,468)	(19,075)
Acquisitions, net of cash acquired	(759)	(5,702)
Funding of investments	(411)	(64)
Distributions from investees	2,050	2,179
Settlement of net investment hedges	548	(5,921)
Net cash (used) provided by investing activities	(30,220)	66,001
Financing Activities:
Proceeds from credit facility borrowings	725,000	108,000
Repayments of credit facility borrowings	(685,000)	(241,500)
Repayments of York Property Mortgage	(4,154)	(3,978)
Settlement of 2022 Senior Notes, including call premium	0	(307,875)
Debt issuance and other borrowing costs	(71)	(3,457)
Repurchases of common stock (see Note 13)	(10,500)	(62,497)
Settlement of forward contract indexed to Sotheby's common stock (see Note 13)	10,500	0
Funding of employee tax obligations upon the vesting of share-based payments	(11,666)	(9,903)
Net cash provided (used) by financing activities	24,109	(521,210)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(83)	(6,734)
Decrease in cash, cash equivalents, and restricted cash	(13,427)	(445,148)
Cash, cash equivalents, and restricted cash at beginning of period	200,234	923,926
Cash, cash equivalents, and restricted cash at end of period	$ 186,807	$ 478,778

SOTHEBYS 10-Q