eTrade 2008 Annual Report Download - page 159

STATEMENT OF CASH FLOWS
(In thousands)
Year Ended December 31,
2008 2007 2006
Cash flows from operating activities:
Net income (loss) $(511,790) $(1,441,754) $ 628,859
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 99,420 75,057 54,621
Loss (gain) on sales of investments, net 2,539 (951) —
Equity in undistributed loss (income) of subsidiaries 808,814 1,727,862 (307,623)
Equity in loss (income) of investments and venture funds 4,960 (5,590) 989
Gain on sale of the Canadian brokerage business (428,979) — —
(Gain) loss on early extinguishment of debt (21,517) — 703
Non-cash restructuring costs and other exit activities 9,123 672 20,279
Share-based compensation 20,938 15,084 8,848
Tax benefit related to share-based compensation — (8,214) (12,410)
Other 7,363 3,527 (1,916)
Other changes, net:
Other assets and liabilities, net (451,820) 91,542 (63,350)
Facility restructuring liabilities 1,263 (8,412) (798)
Net cash provided by (used in) operating activities (459,686) 448,823 328,202
Cash flows from investing activities:
Purchases of property and equipment (98,883) (114,838) (87,400)
Cash used in business acquisitions (7,883) (3,813) (15,259)
Cash contributions to subsidiaries (191,831) (1,641,000) (167,978)
Proceeds from sale of Canadian brokerage business, net 469,737
Return of capital from subsidiaries — — 44,014
Other 5,617 (13,405) 5,424
Net cash provided by (used in) investing activities 176,757 (1,773,056) (221,199)
Cash flows from financing activities:
Proceeds from issuance of springing lien notes 150,000 1,193,767 —
Proceeds from issuance of common stock to Citadel(1) — 338,978 —
Proceeds from issuance of common stock from employee stock
transactions 2,420 35,981 52,718
Tax benefit related to share-based compensation — 8,214 12,410
Repurchases of common stock — (148,632) (122,601)
Net cash flow from derivatives hedging liabilities 59,055 — —
Other 3,055 8,046 (3,502)
Net cash provided by (used in) financing activities 214,530 1,436,354 (60,975)
Increase (decrease) in cash and equivalents (68,399) 112,121 46,028
Cash and equivalents, beginning of period 251,663 139,542 93,514
Cash and equivalents, end of period $ 183,264 $ 251,663 $ 139,542
(1) Includes the proceeds received on November 29, 2007 for the 46.7 million shares of common stock that were issued in 2008 in
connection with the Citadel Investment.
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