Charles Schwab 2010 Annual Report Download - page 65

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THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Cash Flows
(In Millions)
Year Ended December 31, 2010 2009 2008
Cash Flows from Operating Activities
Net income
$ 454
$ 787
$ 1,212
Adjustments to reconcile net income to net cash (used for) provided by operating
activities:
Loss from discontinued o
p
erations, net of tax
—
—
18
Provision for loan losses
2
7
38
17
Net im
p
airment losses on securities
36
6
0
44
Stoc
k
-based com
p
ensation
8
7
75
69
Excess tax benefits from stoc
k
-based com
p
ensation
(3)
(8)
(5
0
)
De
p
reciation and amortization
146
159
152
(Benefit)
p
rovision for deferred income taxes
(51)
16
97
Other
35
(42)
53
Ori
g
inations of loans held for sale
(2,015)
(2,746)
(1,526)
Proceeds from sales of loans held for sale
1,943
2,695
1,522
Net chan
g
e in:
Cash and investments se
g
re
g
ated and on de
p
osit for re
g
ulator
y
p
ur
p
oses
(4,376)
(3,688)
(5,882)
Receivables from brokers, dealers, and clearin
g
or
g
anizations
148
202
(32)
Receivables from brokera
g
e clients
(2,61
2
)
(1,503)
5,171
Other securities owned
581
(29
0
)
48
Other assets
133
(253)
51
Pa
y
ables to brokers, dealers, and clearin
g
or
g
anizations
283
56
(822)
Pa
y
ables to brokera
g
e clients
4,886
5,99
0
(34)
Accrued ex
p
enses and other liabilities
289
(111)
(106)
Net cash (used for)
p
rovided b
y
o
p
eratin
g
activities
(9)
1,437
2
Cash Flows from Investing Activities
Purchases of securities available for sale
(15,69
7
)
(14,342)
(9,839)
Proceeds from sales of securities available for sale
871
107
14
Princi
p
al
p
a
y
ments on securities available for sale
13,261
7,063
2,003
Purchases of securities held to maturit
y
(14,906)
(5,47
0
)
(245)
Princi
p
al
p
a
y
ments on securities held to maturit
y
2,67
2
139
2
Net increase in loans to bankin
g
clients
(1,443)
(1,411)
(2,642)
Purchase of e
q
ui
p
ment, office facilities, and
p
ro
p
ert
y
(129)
(14
0
)
(188)
Cash
p
a
y
ments for business ac
q
uisitions, net of cash ac
q
uired
(44)
—
(5)
Other investin
g
activities
5
(3)
(1)
Net cash used for investin
g
activities
(15,41
0
)
(14,057)
(10,901)
Cash Flows from Financing Activities
Net chan
g
e in de
p
osits from bankin
g
clients
11,328
14,979
10,019
Issuance of lon
g
-term debt
701
747
—
Re
p
a
y
ment of lon
g
-term debt
(205)
(8
0
)
(2
0
)
Net
p
roceeds from common stock offerin
g
543
—
—
Excess tax benefits from stoc
k
-based com
p
ensation
3
8
5
0
Dividends
p
aid
(288)
(279)
(253)
Purchase of treasur
y
stoc
k
—
—
(35
0
)
Proceeds from stock o
p
tions exercised and other
35
53
131
Other financin
g
activities
(8)
(9)
—
Net cash
p
rovided b
y
financin
g
activities
12,109
15,419
9,577
(Decrease) Increase in Cash and Cash Equivalents
(3,31
0
)
2,799
(1,322)
Cash and Cash Equivalents at Beginning of Year
8,241
5,442
6,764
Cash and Cash Equivalents at End of Year
$ 4,931
$ 8,241
$ 5,442
Supplemental Cash Flow Information
Cash
p
aid durin
g
the
y
ear for:
Interest
$178
$173
$232
Income taxes (2008 amount includes discontinued o
p
erations)
$32
7
$ 446
$ 767