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The following is an excerpt from a 10-K SEC Filing, filed by BEAR STEARNS COMPANIES INC on 1/29/2008.
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BEAR STEARNS COMPANIES INC - 10-K - 20080129 - AUDITORS_OPINION

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of The Bear Stearns Companies Inc.

We have audited the consolidated financial statements of The Bear Stearns Companies Inc. and subsidiaries (the "Company") as of November 30, 2007 and 2006, and for each of the three years in the period ended November 30, 2007, and the Company's internal control over financial reporting as of November 30, 2007, and have issued our reports thereon dated January 28, 2008 (such report on the consolidated financial statements expresses an unqualified opinion and includes an explanatory paragraph relating to the adoption of Statement of Financial Accounting Standards ("SFAS") No. 155, "Accounting for Certain Hybrid Instruments, an amendment of FASB Statements No. 133 and 140" and SFAS No. 157, "Fair Value Measurements"); such consolidated financial statements and reports are included in your 2007 Annual Report to Stockholders and are incorporated herein by reference. Our audits also included the financial statement schedule (Schedule I) of The Bear Stearns Companies Inc. (Parent Company Only), listed in Item 15. This financial statement schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits. In our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

Effective December 1, 2006, the Company adopted SFAS No. 155, "Accounting for Certain Hybrid Instruments, an amendment of FASB Statements No. 133 and 140" and SFAS No. 157, "Fair Value Measurements."

/s/ Deloitte & Touche LLP

New York, New York
January 28, 2008

F-2

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
THE BEAR STEARNS COMPANIES INC.
(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF INCOME
(in millions)

Fiscal Years Ended November 30,                   2007        2006        2005

REVENUES

Interest....................................     $4,102      $3,157      $1,233

Other.......................................        534         195         248
                                                 ------      ------      ------
                                                  4,636       3,352       1,481
                                                 ======      ======      ======
EXPENSES

Interest....................................      4,235       3,387       1,582

Other.......................................        198         206         196
                                                 ------      ------      ------
                                                  4,433       3,593       1,778
                                                 ------      ------      ------
Income (loss) before benefit from income
   taxes and equity in earnings of                  203        (241)       (297)
   subsidiaries.............................

(Provision for) benefit from income taxes...       (160)         20          96
                                                 ------      ------      ------
Income (loss) before equity in earnings of           43        (221)       (201)
   subsidiaries

Equity in earnings of subsidiaries, net of tax      190       2,275       1,663
                                                 ------      ------      ------
Net income..................................     $  233      $2,054      $1,462
                                                 ======      ======      ======

See Notes to Condensed Financial Information.

F-3

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
THE BEAR STEARNS COMPANIES INC.
(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF FINANCIAL CONDITION
(in millions, except share data)

As of November 30,                                          2007         2006
                                                          --------     --------

ASSETS
Cash and cash equivalents.............................    $ 17,401     $  2,007
Securities purchased under agreements to resell.......       1,409           97
Receivables from subsidiaries.........................      47,985       67,185
Subordinated loans receivable from subsidiaries.......      12,948        9,963
Investments in subsidiaries, at equity................       8,097        7,975
Assets of variable interest entities..................         650          575
Other assets..........................................       7,587        3,580
                                                          --------     --------
Total Assets..........................................    $ 96,077     $ 91,382
                                                          ========     ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Unsecured short-term borrowings.......................    $  8,723     $ 19,467
Collateralized financings.............................         122           --
Payables to subsidiaries..............................       6,961        6,573
Liabilities of variable interest entities.............         205          220
Other liabilities and accrued expenses................       2,345        1,102
                                                          --------     --------
                                                            18,356       27,362
                                                          --------     --------
Commitments and contingencies (Note 1)
Long-term borrowings..................................      65,665       51,628
Long-term borrowings from subsidiaries................         263          263

STOCKHOLDERS' EQUITY

Preferred stock.......................................         352          359
Common stock, $1.00 par value; 500,000,000 shares
   authorized as of November 30, 2007 and 2006;
   184,805,847 shares issued as of November 30, 2007
   and 2006...........................................         185          185
Paid-in capital.......................................       4,986        4,579
Retained earnings.....................................       9,441        9,385
Employee stock compensation plans.....................       2,478        2,066
Accumulated other comprehensive loss..................          (8)          --
Treasury stock, at cost:
   Common stock: 71,807,227and 67,396,876 shares as of
     November 30, 2007 and 2006, respectively.........      (5,641)      (4,445)
                                                          --------     --------
Total Stockholders' Equity............................      11,793       12,129
                                                          --------     --------
Total Liabilities and Stockholders' Equity............    $ 96,077     $ 91,382
                                                          ========     ========

See Notes to Condensed Financial Information.

F-4

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
THE BEAR STEARNS COMPANIES INC.
(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF CASH FLOWS
(in millions)

Fiscal Years Ended November 30,                     2007        2006        2005
                                                  --------    --------    -------
CASH FLOWS FROM OPERATING ACTIVITIES

Net income ....................................   $    233    $  2,054    $ 1,462

Adjustments to reconcile net income to cash
  provided by operating activities:
   Non-cash items included in net income:
     Employee stock compensation plans ........         31       1,010        801
     Equity in earnings of subsidiaries, net
        of dividends received .................     (1,292)       (493)      (876)
     Other ....................................         14          10         10
Decreases (increases) in assets:
   Securities purchased under agreements to
   resell .....................................     (1,312)         77         99
   Other assets ...............................     (2,397)      1,007        (34)
Increases (decreases) in liabilities:
   Payables to subsidiaries ...................        388       1,566      1,276
   Other liabilities and accrued expenses .....      2,071         (50)       306
                                                  --------    --------    -------
Cash (used in) provided by operating
  activities ..................................     (2,264)      5,181      3,044
                                                  --------    --------    -------
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings, net ....................    (10,744)      9,898      4,524
Collateralized financings .....................        122          --         --
Proceeds from issuance of long-term borrowings      21,193      16,503     14,112
Issuance of common stock ......................        162         289        202
Cash retained resulting from tax deductibility
   under share-based payment arrangements .....        254         363        426
Redemption of preferred stock .................         (7)        (13)       (76)
Payments for:
   Retirement of long-term borrowings .........     (8,865)     (7,143)    (5,966)
   Treasury stock purchases ...................     (1,670)     (1,374)      (870)
Cash dividends paid ...........................       (172)       (155)      (139)
                                                  --------    --------    -------
Cash provided by financing activities .........        273      18,368     12,213
                                                  --------    --------    -------
CASH FLOWS FROM INVESTING ACTIVITIES

Receivables from subsidiaries .................     19,200     (23,691)   (11,313)
Subordinated loans receivable from subsidiaries     (2,985)        223     (1,469)
Investments in subsidiaries, net ..............      1,170        (228)      (321)
                                                  --------    --------    -------
Cash provided by (used in) investing
   activities .................................     17,385     (23,696)   (13,103)
                                                  --------    --------    -------
Net increase (decrease) in cash and cash
equivalents....................................     15,394        (147)     2,154
Cash and cash equivalents, beginning of fiscal
year ..........................................      2,007       2,154         --
                                                  --------    --------    -------
Cash and cash equivalents, end of fiscal year..   $ 17,401    $  2,007    $ 2,154
                                                  ========    ========    =======

See Notes to Condensed Financial Information.

F-5

SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
THE BEAR STEARNS COMPANIES INC.
(PARENT COMPANY ONLY)

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