eTrade 2005 Annual Report Download - page 112

Table of Contents
E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December31,
2005
2004
2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
430,412
$
380,483
$
203,027
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of accounting change, net of tax
(1,646
)
—
—
Provision for loan losses
54,016
38,121
38,523
Depreciation, amortization and discount accretion
362,965
398,297
443,746
Realized gain and impairment of investments
(174,798
)
(257,465
)
(435,146
)
Loss (gain) on disposition of assets
1,342
(57,451
)
—
Gain on sale of Consumer Finance Corporation
(46,099
)
—
—
Minority interest and equity in income of subsidiaries and investments
(6,517
)
(9,882
)
(14,834
)
Unrealized loss on venture funds
228
5,413
5,640
Noncash restructuring costs and other exit activities
6,528
15,029
70,811
Stock-based compensation
18,253
4,654
2,287
Deferred income taxes
49,018
66,920
7,015
Other
(8,474
)
11,503
16,033
Net effect of changes in assets and liabilities:
Decrease (increase) in cash and investments required to be segregated under Federal or other regulations
518,021
936,492
(171,287
)
Increase in brokerage receivables
(953,391
)
(713,656
)
(856,359
)
Increase (decrease) in brokerage payables
339,132
(117,567
)
924,051
Proceeds from sales, repayments and maturities of loans held-for-sale
7,182,775
6,857,431
13,662,209
Purchases of loans held-for-sale
(3,717,745
)
(6,063,974
)
(12,951,831
)
Proceeds from sales, repayments and maturities of trading securities
3,779,503
9,354,027
14,749,315
Purchases of trading securities
(6,751,698
)
(9,122,071
)
(15,204,220
)
Other assets
28,047
(69,810
)
75,329
Accrued interest receivable and payable, net
(38,315
)
(13,207
)
12,814
Accounts payable, accrued and other liabilities
(209,768
)
(36,757
)
127,666
Restructuring liabilities
(5,053
)
(11,564
)
(30,626
)
Net cash provided by operating activities
856,736
1,594,966
674,163
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of mortgage-backed and investment securities, available-for-sale
(13,761,461
)
(20,701,412
)
(21,516,669
)
Proceeds from sales, maturities of and principal payments on mortgage-backed and investment securities,
available-for-sale
13,606,932
17,995,471
20,271,822
Net increase in loans receivable
(7,887,040
)
(3,487,941
)
(2,426,789
)
Purchase of Federal Home Loans Bank stock
(106,695
)
(12,769
)
—
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