TD Ameritrade 2018 Annual Report

56 TD AMERITRADE HOLDING CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2018, 2017 and 2016 2018 2017 2016 (In millions) Cash flows from operating activities: Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,473 $ 872 $ 842 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 102 92 Amortization of acquired intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 79 86 Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24) (11) (8) Loss on sale of investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 — — Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 36 34 Provision for doubtful accounts on client and other receivables. . . . . . . . . . . . . . . . . . . . . . . . 69 6 5 Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 12 16 Changes in operating assets and liabilities: Cash and investments segregated and on deposit for regulatory purposes . . . . . . . . . . . . . 7,261 1,818 (2,424) Receivable from brokers, dealers and clearing organizations. . . . . . . . . . . . . . . . . . . . . . . (40) 23 (328) Receivable from clients, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,536) (2,079) 824 Receivable from/payable to affiliates, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (79) (5) (11) Other receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (129) 41 (16) Securities owned, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 (135) 94 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39) (5) (17) Payable to brokers, dealers and clearing organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 476 110 (667) Payable to clients. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,223) (196) 3,020 Accounts payable and other liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20) 31 (58) Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,908 699 1,484 Cash flows from investing activities: Purchase of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (229) (197) (105) Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 — — Cash paid in business acquisition, net of cash and cash equivalents acquired . . . . . . . . . . . . . . . . (4) (1,288) — Purchase of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (66) (605) Proceeds from sale and maturity of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 4 604 Purchase of investments available-for-sale, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (392) — (757) Proceeds from sale of investments available-for-sale, at fair value . . . . . . . . . . . . . . . . . . . . . . . . 643 — — Purchase of other investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) — — Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 (1,547) (863) Cash flows from financing activities: Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 798 — Payment of debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) (8) — Principal payments on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (385) — Reimbursement (payment) of prepayment premium on long-term debt . . . . . . . . . . . . . . . . . . . 2 (54) — Proceeds from senior revolving credit facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,225 — — Principal payments on senior revolving credit facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,225) — — Net Proceeds from (payments on) securities sold under agreements to repurchase . . . . . . . . . . (1) 97 — Payment of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (477) (379) (362) Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 400 — Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 23 — Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (255) — (352) Purchase of treasury stock for income tax withholding on stock-based compensation . . . . . . . . (17) (27) (30) Payment for future treasury stock purchases under accelerated stock repurchase agreement . . . (31) — — Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . (782) 465 (744) Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,218 (383) (123) Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,472 1,855 1,978 Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,690 $ 1,472 $ 1,855 Supplemental cash flow information: Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 118 $ 59 $ 54 Income taxes paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 352 $ 483 $ 519 Noncash investing activities: Issuance of common stock in acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 1,261 $ — See notes to consolidated financial statements.