Bank of America 2004 Annual Report Download - page 100

BANK OF AMERICA 2004 99
Year Ended December 31
(Dollars in millions) 2004 2003 2002
Operating activities
Net income $ 14,143 $ 10,810 $ 9,249
Reconciliation of net income to net cash provided by (used in) operating activities:
Provision for credit losses 2,769 2,839 3,697
Gains on sales of debt securities (2,123) (941) (630)
Depreciation and premises improvements amortization 972 890 886
Amortization of intangibles 664 217 218
Deferred income tax benefit (402) (263) (444)
Net increase in trading and hedging instruments (13,180) (13,153) (13,133)
Net (increase) decrease in other assets (11,928) 10,647 (2,345)
Net increase (decrease) in accrued expenses and other liabilities 4,583 12,067 (11,019)
Other operating activities, net 547 37 2,837
Net cash provided by (used in) operating activities (3,955) 23,150 (10,684)
Investing activities
Net increase in time deposits placed and other short-term investments (1,147) (1,238) (881)
Net increase in federal funds sold and securities purchased under agreements to resell (3,880) (31,614) (16,770)
Proceeds from sales of available-for-sale securities 107,107 171,711 137,702
Proceeds from maturities of available-for-sale securities 26,973 26,953 26,777
Purchases of available-for-sale securities (232,609) (195,852) (145,962)
Proceeds from maturities of held-to-maturity securities 153 779 43
Proceeds from sales of loans and leases 4,416 32,672 28,068
Other changes in loans and leases, net (32,344) (74,202) (37,184)
Originations and purchases of mortgage servicing rights (1,075) (1,690) (900)
Net purchases of premises and equipment (863) (209) (939)
Proceeds from sales of foreclosed properties 198 247 142
Investment in unconsolidated subsidiary –(1,600) –
Cash equivalents acquired net of purchase acquisitions 4,953 (140) (110)
Other investing activities, net 986 898 2,676
Net cash used in investing activities (127,132) (73,285) (7,338)
Financing activities
Net increase in deposits 64,423 27,655 12,963
Net increase in federal funds purchased and securities sold under agreements to repurchase 35,752 12,967 17,352
Net increase (decrease) in commercial paper and other short-term borrowings 37,437 13,917 (790)
Proceeds from issuance of long-term debt 21,289 16,963 10,850
Retirement of long-term debt (16,904) (9,282) (15,364)
Proceeds from issuance of common stock 3,723 3,970 2,373
Common stock repurchased (6,286) (9,766) (7,466)
Cash dividends paid (6,468) (4,281) (3,709)
Other financing activities, net (91) (72) (66)
Net cash provided by financing activities 132,875 52,071 16,143
Effect of exchange rate changes on cash and cash equivalents 64 175 15
Net increase (decrease) in cash and cash equivalents 1,852 2,111 (1,864)
Cash and cash equivalents at January 1 27,084 24,973 26,837
Cash and cash equivalents at December 31 $ 28,936 $ 27,084 $ 24,973
Supplemental cash flow disclosures
Cash paid for interest $ 13,765 $ 10,214 $ 11,253
Cash paid for income taxes 5,754 3,870 3,999
Assets and liabilities of a certain multi-seller asset-backed commercial paper conduit that was consolidated amounted to $4,350 in 2003.
Net transfers of Loans and Leases from loans held-for-sale (included in Other Assets) to the loan portfolio for Asset and Liability Management (ALM) purposes amounted to $1,106, $9,683 and $8,468 in
2004, 2003 and 2002, respectively.
The fair values of noncash assets acquired and liabilities assumed in the merger with FleetBoston were $224,492 and $182,862, respectively.
Approximately 1.2 billion shares of common stock, valued at approximately $45,622, were issued in connection with the merger with FleetBoston.
See accompanying Notes to Consolidated Financial Statements.
Consolidated Statement of Cash Flows
Bank of America Corporation and Subsidiaries