Bank of America 2008 Annual Report Download - page 121

Bank of America Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year Ended December 31
(Dollars in millions) 2008 2007 2006
Operating activities
Net income $ 4,008 $ 14,982 $ 21,133
Reconciliation of net income to net cash provided by operating activities:
Provision for credit losses
26,825 8,385 5,010
(Gains) losses on sales of debt securities
(1,124) (180) 443
Depreciation and premises improvements amortization
1,485 1,168 1,114
Amortization of intangibles
1,834 1,676 1,755
Deferred income tax (benefit) expense
(5,801) (753) 1,850
Net increase in trading and derivative instruments
(21,603) (8,108) (3,870)
Net (increase) decrease in other assets
3,803 (15,855) (17,070)
Net increase (decrease) in accrued expenses and other liabilities
(14,449) 4,190 4,517
Other operating activities, net
9,056 5,531 (373)
Net cash provided by operating activities
4,034 11,036 14,509
Investing activities
Net (increase) decrease in time deposits placed and other short-term investments 2,203 2,191 (3,053)
Net decrease in federal funds sold and securities purchased under agreements to resell
53,723 6,294 13,020
Proceeds from sales of available-for-sale debt securities
120,972 28,107 53,446
Proceeds from paydowns and maturities of available-for-sale debt securities
26,068 19,233 22,417
Purchases of available-for-sale debt securities
(184,232) (28,016) (40,905)
Proceeds from maturities of held-to-maturity debt securities
741 630 7
Purchases of held-to-maturity debt securities
(840) (314) –
Proceeds from sales of loans and leases
52,455 57,875 37,812
Other changes in loans and leases, net
(69,574) (177,665) (145,779)
Net purchases of premises and equipment
(2,098) (2,143) (748)
Proceeds from sales of foreclosed properties
1,187 104 93
(Acquisition) divestiture of business activities, net
6,650 (19,816) (2,388)
Other investing activities, net
(10,185) 5,040 (2,226)
Net cash used in investing activities
(2,930) (108,480) (68,304)
Financing activities
Net increase in deposits 14,830 45,368 38,340
Net decrease in federal funds purchased and securities sold under agreements to repurchase
(34,529) (1,448) (22,454)
Net increase (decrease) in commercial paper and other short-term borrowings
(33,033) 32,840 23,709
Proceeds from issuance of long-term debt
43,782 67,370 49,464
Retirement of long-term debt
(35,072) (28,942) (17,768)
Proceeds from issuance of preferred stock
34,742 1,558 2,850
Redemption of preferred stock – – (270)
Proceeds from issuance of common stock
10,127 1,118 3,117
Common stock repurchased – (3,790) (14,359)
Cash dividends paid
(11,528) (10,878) (9,661)
Excess tax benefits of share-based payments
42 254 477
Other financing activities, net
(56) (38) (312)
Net cash provided by (used in) financing activities
(10,695) 103,412 53,133
Effect of exchange rate changes on cash and cash equivalents
(83) 134 92
Net increase (decrease) in cash and cash equivalents
(9,674) 6,102 (570)
Cash and cash equivalents at January 1
42,531 36,429 36,999
Cash and cash equivalents at December 31 $ 32,857 $ 42,531 $ 36,429
Supplemental cash flow disclosures
Cash paid for interest $ 41,951 $ 51,829 $ 42,355
Cash paid for income taxes
4,700 9,196 7,210
During 2008, the Corporation reclassified $10.9 billion of net transfers of AFS debt securities to trading account assets.
The Corporation securitized $26.1 billion of residential mortgage loans into mortgage-backed securities and $4.9 billion of automobile loans into asset-backed securities which were retained by the Corporation during 2008.
The fair values of noncash assets acquired and liabilities assumed in the Countrywide acquisition were $157.4 billion and $157.8 billion.
Approximately 107 million shares of common stock, valued at approximately $4.2 billion were issued in connection with the Countrywide acquisition.
The fair values of noncash assets acquired and liabilities assumed in the LaSalle Bank Corporation merger were $115.8 billion and $97.1 billion at October 1, 2007.
The fair values of noncash assets acquired and liabilities assumed in the U.S. Trust Corporation merger were $12.9 billion and $9.8 billion at July 1, 2007.
During 2007, the Corporation sold its operations in Chile and Uruguay for approximately $750 million in equity in Banco Itaú Holding Financeira S.A., and its assets in BankBoston Argentina for the assumption of its
liabilities. The total assets and liabilities in these divestitures were $6.1 billion and $5.6 billion.
During 2007, the Corporation transferred $1.7 billion of trading account assets to AFS debt securities.
On January 1, 2007, the Corporation transferred $3.7 billion of AFS debt securities to trading account assets following the adoption of SFAS 159.
The fair values of noncash assets acquired and liabilities assumed in the MBNA merger were $83.3 billion and $50.4 billion at January 1, 2006.
Approximately 631 million shares of common stock, valued at approximately $28.9 billion were issued in connection with the MBNA merger.
See accompanying Notes to Consolidated Financial Statements.
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