CHIPOTLE MEXICAN GRILL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year ended December 31, 2020 2019 2018 Operating activities Net income $ 355,766 $ 350,158 $ 176,553 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 238,534 212,778 201,979 Amortization of operating lease assets 184,538 163,952 Deferred income tax provision 108,350 29,962 10,585 Impairment, closure costs, and asset disposals 28.874 15,402 61.987 Provision for credit losses 164 33 125 Stock-based compensation expense 82.626 91,396 69,164 Other 3.643 (10,592) (2,918) Changes in operating assets and liabilities: Accounts receivable 3,010 (2,630) (8,298) Inventory (394) (4,530) (1,722) Prepaid expenses and other current assets (11,442) (23,066) (3,811) Other assets (26,577) 2,818 (2,005) Accounts payable (3,859) (973) 32,080 Accrued payroll and benefits 76,683 11,759 29,568 Accrued liabilities 5.596 36,543 14.831 Unearned revenue 36,958 30,400 6,829 Income tax payable/receivable (255,251) (32,083) 14,439 Deferred rent 21,297 Operating lease liabilities (165,154) (151,557) Other long-term liabilities 1,782 1,862 869 Net cash provided by operating activities 563,847 721,632 621,552 Investing activities Purchases of leasehold improvements, property and equipment (373,352) (333 912) 287,390) Purchases of investments (468,418) (448,754) 485,188) Maturities of investments 419.078 476,723 385,000 Proceeds from sale of equipment 13,969 Acquisitions of equity method investments (10,025) Net cash used in investing activities (432,717) (291,974) 387,578) Financing activities Acquisition of treasury stock (54,401) (190,617) (160,937) Tax withholding on stock-based compensation awards (48,555) (10,420) (5,411) Other financing activities (1,895) 698) (187) Net cash used in financing activities (104,851) (201,735) (166,535) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1.076 406 (1,457) Net change in cash, cash equivalents, and restricted cash 127,355 228,329 65,982 Cash, cash equivalents, and restricted cash at beginning of year 508.481 280,152 214,170 Cash, cash equivalents, and restricted cash at end of year 635,836 508,481 280,152 Supplemental disclosures of cash flow information Income taxes paid 85,010 $ 109,571 $ 67,053 Purchases of leasehold improvements, property, and equipment accrued in accounts payable and accrued liabilities 46,975 36,886 30,870 Acquisition of treasury stock accrued in accounts payable and accrued liabilities 2,474