Cash Flow Analysis R. McDonaldCash Flow AnalysisR. McDonaldTOTAL CASH FLOW ANALYSIS FORMATNet IncomeAdjustments to net incomedepreciationdeferred taxesequity income in affiliated companies(gain)/loss on sale of assetsothertotalCash flow from operations before working capital itemsCash flow effects of investments in working capital:(increase)/decrease in accounts receivable(increase)/decrease in inventoryincrease/(decrease) in accounts payable(increase)/decrease in other current assetsincrease/(decrease) in other current liabilities, excluding debttotalCash flow from operationsCash flow effects of investment in long term assets:(purchase)/sale of property, plant, and equipment(purchase)/sale of investmentsothertotalFree cash flow before dividend payments and external financing activitiesDividend paymentsFree cash flow after dividend paymentsCash flow effects of external financing activities:stock repurchasesale of equityrepayment of debtissuance of debtexchange rate gains (losses) on cashtotalNet cash flow after external financingTOTAL CASH FLOW ANALYSIS FORMATNet Income5,4294,178Adjustments to net incomedepreciation5,0125,602deferred taxes111,392equity income in affiliated companies(gain)/loss on sale of assets(300)(339)other(1,056)
5,4294,178Adjustments to net incomedepreciation5,0125,602Taxes/(expense)(1,000,933)Net Cash Flow after Internal Revenue Service Tax Code Adjustments(Adjusted gross income)TOTAL CASH FLOW ANALYSIS FORMATNet Income4,913,1008Adjustments to net incomedepreciation4,913,1008Taxes/(expense)(1,000,821)Net Cash Flow After Internal Revenue Service Tax Code Adjustments3,737,893Adjustments to net incomedepreciation2,735,957Adjustments to net incomedepreciation2,735,957Comprehensive Income/(Expenditure)$16,938,531$15,938Adjustments to net incomedepreciation$16,938,531Balance at end of 2013$(1,092,111)*$16,938,531Adjusted cash flow in operationsAfter Internal Revenue Service tax code: $16,938,531 ($1,092,111)* $16,938,531$10,531 $15,429,0003,737 Adjusted Cash Flow from Operations after Internal Revenue Service Tax Code Adjustments(Adjusted gross income)3,737,828 ($1,092,111)*$16,938,531Adjusted cash flow realized after Internal Revenue Service tax code Adjustments(Adjusted gross income)3,622,812 ($1,092,111)*$16,938,531Adjusted cash flow realized after Internal Revenue Service tax code Adjustments4,913,062 ($1,092,111)*$16,938,531Adjusted cash flow realized after Internal Revenue Service tax code Adjustments4,913,611($1,092,111)*$16,938,531Equitable Shareholders(1,074,964)*$13,872,488Adjusted Cash Flow from Operations after Internal Revenue Service tax code $7,000,000(1,031,051)*$2,834,531Adjusted cash flow realized after Internal Revenue Service tax code $7,000,001(1,031,051)*$2,834,531Adjusted Cash Flow in Operations5,426,746 ($1,049,080)*$7,022,746(2,976)3,769,581 Adjustment for net losses under accounting rules to reflect net deferred tax assets to equity in related holding accounts(3,622,896)*$3,854,538Adjusted Cash Flow from Operations after Internal Revenue Service tax code $2,834,518(813,072)*$5,854,538Adjusted cash flow realized after Internal Revenue Service tax code Adjustments5,426,746(5,987) ($6,813) ($898) ($610)+”(2,049,080)3,622,814$3,864,518Adjusted Cash Flow from Operations5,426,746(10,013)$26,982Adjusted Cash Flow realised 4,947,941(1,026,05
$1,036,941adjusted Cash Flow during Q1,624,919,2,800$30,059,857Adjusted Cash Flow since Q1,624,870,1,500$27,849,857 $1,049,080Adjusted Q3,616,737,835,100,1009,900,600Adjusted Income/(expense)(1,000)$19,722,824Adjustment to the common shares $2,621,945Adjustment to its share-based compensation expense $1,091,000(5,717)$17,848,037Adjustment-adjustment to its share-based compensation expenseAdjustment-adjustment to its share-based compensation expenseAdjustment-adjustment to its share-based compensation expenseAdjustment-adjustment to its share-based compensation expenseAdjustment-adjustment to its share-based compensation expenseAdjustment-adjustment to its share-based compensation expenseAdjustment-adjustment to the common sharesAdjustment-adjustment to its share-based compensation expenseAdjustment-adjustment to the common sharesAdjustment-adjustment to its share-base, and the share baseAdjustment-adjustment to the common sharesAdjustment-adjustment to its share-base,and
$1,034,769
—
$18,717,962Adjustment
$1,091,000
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$18,849,819Adjustation
Revenue from sales, including financing transactions and our conversion of our equity interest to common stock, was $5.1 billion for the nine months ended December 31, 2013 , which is $5.1 billion lower than the following revenue periods during the comparable periods of 2011 and 2012 (the five highest-priced periods per quarter):
(In millions, except per share data) 2012 2012 Revenue revenue $9,500,000 $30,000,000 $25,800,000 $1,100,000,000 $14,500,000
(Expense)(1,000) $0.00 $14,500,000 $0.00
$5.1 billion $28,600,000 $0.35
Revenue (Expense) from transactions:
As of December 31, 2013 , total transactions for the nine months ended December 31, 2013 increased by $0.9 million for the four lowest-priced periods during the comparable periods of 2011 and 2011 , compared to $3.8 million at the beginning of the comparable periods of 2011 and 2011 .
The year-over-year increase in revenues (adjusted to the five highest-priced periods per quarter) is primarily attributable to increases in the number of transactions in the two categories above:
(1) increased by a substantial 3,700 to $724,735 and by an additional 39,400 (expense) to the common shares under the share ownership structure of the Company (5,853,000 shares under the share buyback plan and 4,853,000 shares under the share buyback plan).
The percentage increase in the number of transactions per quarter is primarily attributable to gains in U.S. and international sales of diluted CDOs that we recognize as tax losses on our Consolidated Statements of Cash Flows during periods in which gross cash amounts are less than fair value. In other words, our revenue and share of revenues are increased in cash flow, operating income, marketable securities and other financial information but not increased as a result of increase in sales.
4
Net cash provided by operating activities was $4.7 million and $8.2 million for the nine months ended December 31, 2013 , and $2.8 million and $12.2 million for the five lowest-priced periods during the comparable periods during the three periods of 2011 and 2011 .
For comparable periods of 2011 and 2011 , our consolidated net cash provided by operating activities totaled $3.9 million , $17.4 million , $8.2 million and $44.1 million for the nine months ended December 31, 2013 , while we recorded $3.1 million , $12.5 million and $22.2 million , respectively, for the five lower-priced periods during the comparable periods during the three periods of 2011 , 2012 and 2011