Charles Schwab 2008 Annual Report Download - page 93

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THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Financial Statements
(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)
- 79 -
Condensed Statements of Cash Flows
Year ended December 31, 2008 2007 2006
Cash Flows from Operating Activities
Net income $ 1,212 $ 2,407 $ 1,227
Adjustments to reconcile net income to net cash provided
by operating activities:
Loss (gain) from discontinued operations, net of tax 19 (1,215) 1
Equity in undistributed earnings of subsidiaries (251) (548) (51)
Equity in undistributed earnings of subsidiaries –
discontinued operations - (32) (107)
Excess tax benefits from stock-based compensation (50) (108) (64)
Provision for deferred income taxes 48 192 (192)
Other 2 (6) (17)
Net change in:
Receivables from brokers, dealers, and clearing organizations (34) - -
Other securities owned (17) - -
Other assets (52) 52 (10)
Accrued expenses and other liabilities (85) (647) 80
Net cash provided by operating activities 792 95 867
Cash Flows from Investing Activities
Due (to) from subsidiaries – net (94) 122 54
Purchase of equipment, office facilities, and property (2) (5) -
(Increase) decrease in investments in subsidiaries (330) 14 22
Cash payments for business combinations
and investments, net of cash received - (116) (8)
Proceeds from sale of subsidiary - 3,237 -
Net cash (used for) provided by investing activities (426) 3,252 68
Cash Flows from Financing Activities
Issuance of long-term debt - 549 -
Repayment of long-term debt (15) (38) (68)
Excess tax benefits from stock-based compensation 50 108 64
Dividends paid (253) (1,500) (173)
Purchase of treasury stock (350) (2,742) (868)
Proceeds from stock options exercised and other 131 414 253
Other financing activities (1) (7) -
Net cash used for financing activities (438) (3,216) (792)
(Decrease) increase in Cash and Cash Equivalents (72) 131 143
Cash and Cash Equivalents at Beginning of Year 827 696 553
Cash and Cash Equivalents at End of Year $ 755 $ 827 $ 696