Discover 2011 Annual Report Download - page 166

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154
Discover Financial Services
(Parent Company Only)
Condensed Statements of Cash Flows
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
Non-cash charges included in net income:
Equity in undistributed net income of subsidiaries
Stock-based compensation expense
Deferred income taxes
Depreciation and amortization
Changes in assets and liabilities:
(Increase) decrease in other assets
(Decrease) increase in other liabilities and accrued expenses
Net cash provided by operating activities
Cash flows from investing activities
Increase in investment in subsidiaries
(Increase) decrease in loans to subsidiaries
Maturities of investment securities
Decrease (increase) in restricted cash - special dividend escrow
Net cash (used for) provided by investing activities
Cash flows from financing activities
Proceeds from issuance of long-term borrowings and bank notes
Maturity of long-term borrowings
Proceeds from issuance of preferred stock and warrants
Redemption of preferred stock
Repurchase of stock warrant
Proceeds from issuance of common stock
Purchases of treasury stock
Net increase (decrease) in deposits
Dividend paid to Morgan Stanley
Dividends paid on common and preferred stock
Net cash (used for) provided by financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents, at beginning of year
Cash and cash equivalents, at end of year
Supplemental Disclosures:
Cash paid during the year for:
Interest expense
Income taxes, net of income tax refunds
Non-cash transactions
Special dividend - Morgan Stanley
For the Years Ended November 30,
2011
(dollars in thousands)
$ 2,226,708
(874,935)
43,777
18,490
82
(8,065)
(16,088)
1,389,969
(8,151)
(877,252)
—
—
(885,403)
—
—
—
—
—
22,646
(434,796)
17,365
—
(109,573)
(504,358)
208
367
$ 575
$ 76,597
$ 11,195
$—
2010
$ 764,788
(635,842)
37,081
12,032
82
(6,644)
(7,575)
163,922
(275,000)
1,080,576
—
643,311
1,448,887
—
(400,000)
—
(1,224,558)
(172,000)
1,323
(8,241)
859
(775,000)
(70,431)
(2,648,048)
(1,035,239)
1,035,606
$ 367
$ 70,207
$ (64,044)
$ 33,757
2009
$ 1,276,185
(609,780)
44,249
(31,699)
85
1,864
65,287
746,191
(1,233,958)
(463,591)
4,032
(643,311)
(2,336,828)
400,000
—
1,224,558
—
—
533,822
(11,385)
(6,319)
—
(101,034)
2,039,642
449,005
586,601
$ 1,035,606
$ 36,056
$ 438,098
$ (335,757)
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