eTrade 2008 Annual Report Download - page 97

E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS—(Continued)
(In thousands)
Year Ended December 31,
2008 2007 2006
Cash flows from financing activities:
Net increase in deposits $ 246,556 $ 1,806,961 $ 8,095,971
Net decrease in securities sold under agreements to repurchase (1,535,174) (855,054) (1,317,025)
Net increase (decrease) in other borrowed funds 7,379 (23,034) 26,469
Advances from other long-term borrowings 2,350,507 21,422,913 5,978,100
Payments on advances from other long-term borrowings (5,462,459) (19,327,723) (4,969,100)
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 trust preferred securities — 41,000 79,900
Proceeds from issuance of common stock from employee stock
transactions 2,420 35,981 52,718
Tax benefit related to share-based compensation — 19,910 30,166
Repurchases of common stock — (148,632) (122,601)
Net cash flow from derivative hedging liabilities (179,559) (28,927) 56,062
Other 4,458 10,036 (1,754)
Net cash (used in) provided by financing activities (4,415,872) 4,486,176 7,908,906
Effect of exchange rates on cash (44,645) 69,365 20,523
Increase in cash and equivalents 2,075,605 566,010 368,046
Cash and equivalents, beginning of period 1,778,244 1,212,234 844,188
Cash and equivalents, end of period $ 3,853,849 $ 1,778,244 $ 1,212,234
Supplemental disclosures:
Cash paid for interest $ 1,612,976 $ 2,204,505 $ 1,348,636
(Refund received) cash paid for income taxes $ (415,258) $ 123,005 $ 151,851
Non-cash investing and financing activities:
Transfers from loans to other real estate owned and
repossessed assets $ 267,243 $ 114,124 $ 56,476
Reclassification of loans held-for-sale to loans
held-for-investment $ 4,049 $ 35,672 $ 202,269
Issuance of common stock to retire debentures $ 555,177 $ — $ 183,411
Capitalized interest in the form of springing lien notes $ 121,000 $ — $ —
Exchange of senior notes for springing lien notes $ — $ 139,745 $ —
Issuance of common stock upon acquisition(2) $ 9,432 $ — $ 19,750
(1) Includes the proceeds received on November 29, 2007 for the 46.7 million shares of common stock that were issued in the first quarter of
2008 in connections with the Citadel Investment.
(2) For December 31, 2008, amounts related to additional contingent consideration issued in connection with prior acquisitions.
See accompanying notes to consolidated financial statements
94