Bank of America 2012 Annual Report Download - page 29

Bank of America 2012 27
Cash Flows Overview
The Corporation’s operating assets and liabilities support our
global markets and lending activities. We believe that cash flows
from operations, available cash balances and our ability to
generate cash through short- and long-term debt are sufficient to
fund our operating liquidity needs. Our investing activities primarily
include the AFS securities portfolio and other short-term
investments. Our financing activities reflect cash flows primarily
related to increased customer deposits and net long-term debt
reductions.
Cash and cash equivalents decreased $9.4 billion during 2012
due to net purchases of debt securities and planned reductions
in long-term debt partially offset by higher federal funds purchased
and securities loaned or sold under agreements to repurchase
and growth in our deposits. Cash and cash equivalents increased
$11.7 billion during 2011 due to sales of non-core assets and net
sales of debt securities partially offset by repayment and
maturities of certain long-term debt.
During 2012, net cash used in operating activities was $13.9
billion. The more significant adjustments to net income to arrive
at cash used in operating activities included the net increase in
trading and derivative instruments and the provision for credit
losses. During 2011, net cash provided by operating activities was
$64.4 billion. The more significant adjustments to net income to
arrive at cash provided by operating activities included the net
decrease in trading and derivative instruments and the provision
for credit losses.
During 2012, net cash used in investing activities was $37.2
billion primarily driven by net purchases of debt securities. During
2011, net cash provided by investing activities was $52.4 billion
primarily driven by net sales of debt securities.
During 2012, net cash provided by financing activities of $42.4
billion primarily reflected an increase in federal funds purchased
and securities loaned or sold under agreements to repurchase
and growth in deposits partially offset by planned reductions in
long-term debt as maturities outpaced new issuances. During
2011, the net cash used in financing activities of $104.7 billion
primarily reflected planned reductions in long-term debt as
maturities outpaced new issuances as well as the decrease in
federal funds purchased and securities loaned or sold under
agreements to repurchase partially offset by growth in deposits.