eTrade 2009 Annual Report Download - page 105

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E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
Year Ended December 31,
2009 2008 2007
Cash flows from operating activities:
Net loss $ (1,297,762) $ (511,790) $ (1,441,754)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Provision for loan losses 1,498,112 1,583,666 640,078
Depreciation and amortization (including discount
amortization and accretion) 345,969 292,828 282,491
Net impairment, (gains) losses on loans and securities, net and
(gains) losses on sales of investments, net (78,297) 201,475 2,419,065
Impairment of goodwill — — 101,208
Equity in (income) loss of investments and venture funds 8,616 (18,462) (7,665)
Gain on sale of the Canadian brokerage business — (428,979) —
Gain on sale of corporate aircraft related assets — (23,715) —
(Gains) losses on early extinguishment of debt 1,018,848 (10,084) 19
Share-based compensation 46,184 42,426 34,982
Deferred taxes (488,689) (446,758) (425,355)
Other (4,480) (11,545) 17,270
Net effect of changes in assets and liabilities:
Increase in cash and investments required to be segregated
under federal or other regulations (394,523) (1,065,756) (22,045)
(Increase) decrease in margin receivables (1,023,373) 4,114,180 (284,267)
Increase (decrease) in customer payables 1,346,736 (638,884) (987,620)
Proceeds from sales, repayments and maturities of loans
held-for-sale 118,100 232,214 1,418,313
Purchases and originations of loans held-for-sale (125,650) (135,411) (1,261,980)
Proceeds from sales, repayments and maturities of trading
securities 1,229,635 1,364,194 2,831,736
Purchases of trading securities (1,207,151) (1,260,333) (2,777,449)
(Increase) decrease in other assets (265,797) 840,918 422,413
Increase (decrease) in accounts payable, accrued and other
liabilities 245,479 (1,872,899) (159,190)
Net cash provided by operating activities 971,957 2,247,285 800,250
Cash flows from investing activities:
Purchases of available-for-sale mortgage-backed and investment
securities (22,370,041) (6,745,582) (13,113,671)
Proceeds from sales, maturities of and principal payments on
available-for-sale mortgage-backed and investment securities 19,945,842 7,540,966 13,805,661
Net decrease (increase) in loans receivable 3,555,843 3,449,898 (5,341,116)
Purchases of property and equipment (86,195) (110,237) (129,295)
Proceeds from sale of the Canadian brokerage business, net — 469,737 —
Cash transferred to Scotiabank on sale of the Canadian
brokerage business — (502,919) —
Proceeds from sale of corporate aircraft related assets — 69,250 —
Proceeds from sale of RAA — 22,844 —
Net cash flow from derivatives hedging assets 991 11,267 2,176
Proceeds from sales of REO and repossessed assets 156,783 91,453 32,260
Other (5,000) (7,840) (45,796)
Net cash provided by (used in) investing activities $ 1,198,223 $ 4,288,837 $ (4,789,781)
102