eTrade 2010 Annual Report Download - page 103

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E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
Year Ended December 31,
2010 2009 2008
Cash flows from operating activities:
Net loss $ (28,472) $ (1,297,762) $ (511,790)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Provision for loan losses 779,412 1,498,112 1,583,666
Depreciation and amortization (including discount
amortization and accretion) 339,085 345,969 292,828
Net impairment, (gains) losses on loans and securities, net and
(gains) losses on sales of investments, net (131,197) (78,297) 201,475
Equity in (income) loss of investments and venture funds 740 8,616 (18,462)
Share-based compensation 25,361 46,184 42,426
Deferred taxes (86,199) (488,689) (446,758)
(Gains) losses on early extinguishment of debt — 1,018,848 (10,084)
Gain on sale of international brokerage business — — (428,979)
Gain on sale of corporate aircraft related assets — — (23,715)
Other (8,600) (4,480) (11,545)
Net effect of changes in assets and liabilities:
Decrease (increase) in cash and investments required to be
segregated under federal or other regulations 823,626 (394,523) (1,065,756)
(Increase) decrease in margin receivables (1,366,093) (1,023,373) 4,114,180
Increase (decrease) in customer payables 136,525 1,346,736 (638,884)
Proceeds from sales of loans held-for-sale 154,603 118,100 232,214
Originations of loans held-for-sale (138,043) (125,650) (135,411)
Proceeds from sales, repayments and maturities of trading
securities 998,202 1,229,635 1,364,194
Purchases of trading securities (1,023,089) (1,207,151) (1,260,333)
Decrease (increase) in other assets 369,720 (265,797) 840,918
Increase (decrease) in other liabilities 203,714 245,479 (1,872,899)
Net cash provided by operating activities 1,049,295 971,957 2,247,285
Cash flows from investing activities:
Purchases of available-for-sale securities (16,981,702) (22,370,041) (6,745,582)
Proceeds from sales, maturities of and principal payments on
available-for-sale securities 15,681,935 19,945,842 7,540,966
Purchases of held-to-maturity securities (2,626,409) — —
Proceeds from maturities of and principal payments on
held-to-maturity securities 160,590 — —
Net decrease in loans receivable 2,745,200 3,555,843 3,449,898
Capital expenditures for property and equipment (82,076) (86,195) (110,237)
Proceeds from sale of REO and repossessed assets 213,926 156,783 91,453
Net cash flow from derivatives hedging assets (53,604) 991 11,267
Proceeds from sale of international brokerage businesses, net — — 469,737
Cash transferred on the sale of international brokerage
businesses — — (502,919)
Proceeds from sale of corporate aircraft related assets — — 69,250
Net cash transferred from sale of businesses and other (130,714) (5,000) 15,004
Net cash (used in) provided by investing activities $ (1,072,854) $ 1,198,223 $ 4,288,837
See accompanying notes to the consolidated financial statements
100