HR Block 2006 Annual Report Download - page 114

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in 000s)
Year Ended April 30, 2006 2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES –
Net income $ 490,408 $ 623,910 $ 694,093
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 191,703 183,867 179,131
Provision for bad debt 39,746 52,221 53,663
Provision for deferred taxes on income (43,409) (40,023) (2,081)
Accretion of residual interests in securitizations (114,346) (137,610) (186,466)
Impairment of available-for-sale residual interests in securitizations 34,107 12,235 26,063
Realized gain on sale of previously securitized residual interests (31,463) (15,396) (40,689)
Additions to trading residual interests in securitizations, net (350,861) (115,657) (327,996)
Proceeds from net interest margin transactions 295,159 98,743 310,358
Additions to mortgage servicing rights (250,537) (137,510) (84,274)
Amortization and impairment of mortgage servicing rights 144,679 84,717 69,718
Stock-based compensation 57,020 44,139 25,718
Cumulative effect of change in accounting principle –– 6,359
Changes in assets and liabilities, net of acquisitions:
Cash and cash equivalents – restricted 122,840 28,519 (107,186)
Receivables from customers, brokers, dealers and clearing organizations 88,954 33,892 (108,846)
Receivables (136,121) (121,177) 26,294
Mortgage loans held for sale:
Originations and purchases (40,358,579) (31,003,456) (23,255,483)
Sales and principal repayments 40,256,802 30,990,566 23,246,815
Prepaid expenses and other current assets (61,948) (53,858) 26,978
Beneficial interest in Trusts 47,015 (61,549) (17,222)
Accounts payable to customers, brokers and dealers (169,381) (115,109) 203,099
Accounts payable, accrued expenses and other current liabilities 130,274 113,419 (104,563)
Accrued salaries, wages and payroll taxes (5,643) 38,277 70,521
Accrued income taxes 101,093 (20,281) 110,021
Other non-current liabilities 125,482 26,527 35,965
Other, net (17,308) 4,387 2,473
Net cash provided by operating activities 585,686 513,793 852,463
CASH FLOWS FROM INVESTING ACTIVITIES –
Available-for-sale securities:
Purchases of available-for-sale securities (9,216) (10,175) (11,434)
Cash received from residual interests in securitizations 80,539 136,045 193,606
Cash proceeds from sale of previously securitized residuals 62,396 16,485 53,391
Sales of other available-for-sale securities 11,218 9,752 15,410
Mortgage loans originated and held for investment, net (407,538) ––
Purchases of property and equipment, net (250,510) (209,458) (123,826)
Payments made for business acquisitions, net of cash acquired (212,543) (37,621) (280,865)
Other, net 37,149 36,562 26,332
Net cash used in investing activities (688,505) (58,410) (127,386)
CASH FLOWS FROM FINANCING ACTIVITIES –
Repayments of commercial paper and other short-term borrowings (7,048,881) (5,941,623) (4,618,853)
Proceeds from issuance of commercial paper and other short-term borrowings 7,048,881 5,941,623 4,618,853
Repayments of Senior Notes –(250,000) –
Proceeds from issuance of Senior Notes –395,221 –
Payments on acquisition debt (26,819) (25,664) (59,003)
Dividends paid (160,031) (142,988) (138,397)
Acquisition of treasury shares (260,312) (530,022) (519,862)
Proceeds from issuance of common stock 108,507 136,102 119,956
Other, net 35,619 (10,564) 31,681
Net cash used in financing activities (303,036) (427,915) (565,625)
Net increase (decrease) in cash and cash equivalents (405,855) 27,468 159,452
Cash and cash equivalents at beginning of the year 1,100,213 1,072,745 913,293
Cash and cash equivalents at end of the year $ 694,358 $ 1,100,213 $ 1,072,745
See accompanying notes to consolidated financial statements.
44
H&R BLOCK 2006 Form 10K