HR Block 2005 Annual Report Download - page 110

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in 000s)
Restated(1) Restated(1)
Year Ended April 30, 2005 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES ⬎⬎⬎
Net income $ 635,857 $ 709,249 $ 477,615
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 183,867 179,131 169,092
Provision for bad debt 52,221 53,663 49,748
Provision for deferred taxes on income (42,345) (986) (29,944)
Accretion of residual interests in securitizations (137,610) (186,466) (146,343)
Impairment of residual interests in securitizations 12,235 26,063 54,111
Realized gain on sale of previously securitized residual interests (15,396) (40,689) (93,307)
Additions to trading securities – residual interests in securitizations (115,657) (327,996) (542,544)
Proceeds from net interest margin transactions 98,743 310,358 541,791
Additions to mortgage servicing rights (137,510) (84,274) (65,345)
Amortization of mortgage servicing rights 84,191 69,718 47,107
Net change in beneficial interest in Trusts (61,549) (17,222) (84,655)
Impairment of goodwill –– 122,251
Tax benefit from stock option exercises 10,961 23,957 37,304
Stock-based compensation 44,139 25,718 2,079
Cumulative effect of change in accounting principle –6,359 –
Changes in assets and liabilities, net of acquisitions:
Cash and cash equivalents – restricted 28,519 (107,186) (286,069)
Receivables for customers, brokers dealers and clearing organizations 33,892 (108,846) 326,824
Receivables (121,177) 26,294 (72,423)
Mortgage loans held for sale:
Originations and purchases (31,003,456) (23,255,483) (17,827,828)
Sales and principal repayments 30,990,566 23,246,815 17,837,323
Prepaid expenses and other current assets (53,858) 26,978 43,818
Accounts payable to customers, brokers and dealers (115,109) 203,099 (40,507)
Accounts payable, accrued expenses and other 113,419 (104,563) 60,454
Accrued salaries, wages and payroll taxes 38,277 70,521 (42,911)
Accrued income taxes (29,906) 93,770 111,822
Other, net 20,479 14,481 40,272
Net cash provided by operating activities 513,793 852,463 689,735
CASH FLOWS FROM INVESTING ACTIVITIES ⬎⬎⬎
Available-for-sale securities:
Purchases of available-for-sale securities (10,175) (11,434) (14,614)
Cash received from residual interests in securitizations 136,045 193,606 140,795
Cash proceeds from sale of previously securitized residuals 16,485 53,391 142,486
Sales of other available-for-sale securities 9,752 15,410 14,081
Purchases of property and equipment, net (209,458) (123,826) (148,706)
Payments made for business acquisitions, net of cash acquired (37,621) (280,865) (26,408)
Other, net 36,562 26,332 19,895
Net cash provided by (used in) investing activities (58,410) (127,386) 127,529
CASH FLOWS FROM FINANCING ACTIVITIES ⬎⬎⬎
Repayments of commercial paper (5,191,623) (4,618,853) (9,925,516)
Proceeds from issuance of commercial paper 5,191,623 4,618,853 9,925,516
Repayments of Senior Notes (250,000) ––
Proceeds from issuance of Senior Notes 395,221 ––
Payments on acquisition debt (25,664) (59,003) (57,469)
Dividends paid (142,988) (138,397) (125,898)
Acquisition of treasury shares (530,022) (519,862) (317,570)
Proceeds from issuance of common stock 136,102 119,956 126,325
Other, net (10,564) 31,681 (2,572)
Net cash used in financing activities (427,915) (565,625) (377,184)
Net increase in cash and cash equivalents 27,468 159,452 440,080
Cash and cash equivalents at beginning of the year 1,072,745 913,293 473,213
Cash and cash equivalents at end of the year $ 1,100,213 $ 1,072,745 $ 913,293
See accompanying notes to consolidated financial statements.
(1) See note 2.
H&R BLOCK 2005 Form 10K
48