eTrade 2003 Annual Report Download - page 61

Table of Contents
Index to Financial Statements
E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS—(Continued)
(in thousands)
See accompanying notes to consolidated financial statements
50
Year Ended December 31,
2003
2002 2001
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in banking deposits, net of deposits received in acquisitions
$
4,113,280
$
317,474
$
2,332,650
Advances from the Federal Home Loan Bank
1,634,700
2,068,945
2,296,476
Payments on advances from the Federal Home Loan Bank
(2,025,000
)
(1,664,945
)
(3,127,176
)
Net increase (decrease) in securities sold under agreements to repurchase
(343,324
)
2,608,477
368,634
Net decrease in other borrowed funds
(208,479
)
—
—
Proceeds from bank loans and lines of credit, net of transaction costs —
18,500
4,381
Payments on bank loans and lines of credit
(5,090
)
(23,283
)
(34,813
)
Net proceeds from convertible subordinated notes
—
—
315,250
Repurchase of convertible subordinated notes — — (
15,283
)
Proceeds from issuance of common stock from employee stock transactions
51,740
13,746
29,663
Repayment of capital lease obligations
(6,031
)
(14,431
)
(14,086
)
Issuance of loans to related parties
(1,507
)
(11,299
)
(7,152
)
Proceeds from repayments of principal and prepayments of interest on loans to related parties
15,719
14,013
13,195
Purchases of treasury stock
—
(
43,481
)
(239,080
)
Collection on shareholders’ notes receivable —
3,073
1,048
Issuance of shareholders’ notes receivable — — (
12,500
)
Proceeds from issuance of subordinated debentures and trust preferred securities
58,210
73,836
38,856
Net cash flow from derivatives in a cash flow hedge relationship
(30,916
)
(89,799
)
(76,426
)
Other — (
4,760
)
4,881
Net cash provided by financing activities
3,253,302
3,266,066
1,878,518
INCREASE (DECREASE) IN CASH AND EQUIVALENTS
147,834
(62,596
)
379,323
CASH AND EQUIVALENTS, Beginning of year
773,605
836,201
456,878
CASH AND EQUIVALENTS, End of year
$
921,439
$
773,605
$
836,201
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest
$
430,855
$
621,140
$
847,989
Cash paid for income taxes
$
42,555
$
6,111
$
1,457
Non-cash investing and financing activities:
Tax benefit on exercise of stock options and warrants
$
13,186
$
3,145
$
9,002
Transfers from loans to other real estate owned and repossessed assets
$
48,947
$
38,897
$
3,567
Reclassification of loans held-for-sale to loans held-for-investment
$
289,592
$
104,348
$
—
Deconsolidation of trust preferreds to other borrowings
$
201,665
$
—
$
—
Reclassification of loans held
-
for
-
investment to loans held
-
for
-
sale
$
—
$
2,622,126
$
—
Issuance of shares in exchange for increased ownership in E*TRADE Japan K.K.
$
—
$
30,698
$
—
Notes receivable repaid with common stock
$
—
$
28,790
$
—
Issuance of common stock to retire debentures
$
—
$
55,348
$
137,095
Acquisitions, net of cash acquired:
Common stock issued and stock options assumed
$
—
$
91,943
$
271,620
Cash paid, less acquired
3,466
1,854,910
14,978
Net deferred tax (asset) liability
(4,956
)
36,200
—
Net liabilities assumed —
56,346
97,880
Reduction in payable for purchase of international subsidiary — — (
20,894
)
Carrying value of joint venture investments
—
—
1,258
Fair value of assets acquired including goodwill
$
(1,490
)
$
2,039,399
$
364,842