eTrade 2012 Annual Report Download - page 111

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E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
Year Ended December 31,
2012 2011 2010
Cash flows from operating activities:
Net income (loss) $ (112,583) $ 156,701 $ (28,472)
Adjustments to reconcile net income (loss) to net cash (used in)
provided by operating activities:
Provision for loan losses 354,637 440,614 779,412
Depreciation and amortization (including discount
amortization and accretion) 409,561 340,691 339,085
Net impairment, gains on loans and securities, net and gains
on sales of investments, net (183,459) (105,370) (131,197)
Equity in (income) loss of investments and venture funds (1,292) 1,759 740
(Gains) losses on early extinguishment of debt 134,548 (3,091) —
Share-based compensation 20,764 14,456 25,361
Deferred taxes (137,076) 7,895 (86,199)
Other (497) 4,806 (8,600)
Net effect of changes in assets and liabilities:
Decrease (increase) in cash required to be segregated under
federal or other regulations 898,689 (666,077) 823,626
(Increase) decrease in margin receivables (977,785) 294,319 (1,366,093)
(Decrease) increase in customer payables (625,936) 570,772 136,525
Proceeds from sales of loans held-for-sale 342,696 123,441 154,603
Originations of loans held-for-sale (331,538) (129,654) (138,043)
Net (increase) decrease in trading securities (46,822) 16,874 (24,887)
Decrease in other assets 265,082 32,787 369,720
(Decrease) increase in other liabilities (167,748) (4,968) 203,714
Net cash (used in) provided by operating activities (158,759) 1,095,955 1,049,295
Cash flows from investing activities:
Purchases of available-for-sale securities (10,049,145) (10,251,611) (16,981,702)
Proceeds from sales, maturities of and principal payments on
available-for-sale securities 12,445,566 9,929,506 15,681,935
Purchases of held-to-maturity securities (4,814,251) (4,040,208) (2,626,409)
Proceeds from maturities of and principal payments on held-
to-maturity securities 1,308,212 408,674 160,590
Net decrease in loans receivable 1,765,847 2,201,838 2,745,200
Capital expenditures for property and equipment (79,840) (89,410) (82,076)
Proceeds from sale of REO and repossessed assets 102,471 156,991 213,926
Net cash flow from derivatives hedging assets (85,224) 14,899 (53,604)
Other 70,784 39,147 (130,714)
Net cash provided by (used in) investing activities $ 664,420 $ (1,630,174) $ (1,072,854)
See accompanying notes to the consolidated financial statements
108