eTrade 2006 Annual Report Download - page 146

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STATEMENT OF CASH FLOWS
(In thousands)
Year Ended December 31,
2006 2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 628,859 $ 430,412 $ 380,483
Adjustments to reconcile net income to net cash provided by
operating activities:
Cumulative effect of accounting change — (1,646) —
Equity in undistributed income of other subsidiaries (307,623) (55,210) (316,385)
Equity in income of investments and venture funds 989 (6,247) (4,858)
Depreciation and amortization 54,621 50,528 54,664
Gain on sales and impairment of investments — (946) (1,427)
Non-cash restructuring costs and other exit activities 20,279 2,991 14,478
Stock-based compensation 8,848 6,916 —
Tax benefit from tax deductions in excess of compensation
expense (12,410) (10,352) (17,913)
Other (1,213) 1,459 4,645
Other changes, net:
Other assets and liabilities, net (63,350) (73,131) 95,684
Facility restructuring liabilities (798) (4,581) (9,301)
Net cash provided by operating activities 328,202 340,193 200,070
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (87,400) (66,191) (70,206)
Purchase of investments — (9,785) (10,566)
Proceeds from sales/maturities of investments 2,162 18,803 16,409
Return of capital from other subsidiaries 44,014 — —
Cash used in business acquisitions (15,259) (2,312,879) —
Cash contribution to subsidiaries (167,978) (80,000) —
Other 3,262 1,021 —
Net cash used in investing activities (221,199) (2,449,031) (64,363)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for redemption of convertible notes (1,754) — (428,902)
Proceeds from issuance of senior notes — 992,064 394,000
Proceeds from issuance of mandatory convertible notes — 436,500 —
Repurchases of common stock (122,601) (58,215) (175,776)
Proceeds from issuance of common stock from employee stock
transactions 52,720 753,134 43,974
Tax benefit from tax deductions in excess of compensation expense
recognition 12,410 10,352 17,913
Payment of capital leases — (157) (734)
Other (1,750) (333) 260
Net cash provided by (used in) financing activities (60,975) 2,133,345 (149,265)
INCREASE (DECREASE) IN CASH AND EQUIVALENTS 46,028 24,507 (13,558)
CASH AND EQUIVALENTS, Beginning of period 93,514 69,007 82,565
CASH AND EQUIVALENTS, End of period $ 139,542 $ 93,514 $ 69,007
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