Bank of Montreal 2010 Annual Report Download - page 115

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Consolidated Financial Statements
BMO Financial Group 193rd Annual Report 2010 113
Consolidated Statement of Cash Flows
For the Year Ended October 31 (Canadian $ in millions) 2010 2009 2008
Cash Flows from Operating Activities
Net income $ 2,810 $ 1,787 $ 1,978
Adjustments to determine net cash flows provided by (used in) operating activities
Impairment write-down of securities, other than trading (Note 3) 40 301 324
Net (gain) loss on securities, other than trading (Note 3) (190) 53 (9)
Net (increase) decrease in trading securities (13,707) 7,207 8,275
Provision for credit losses 1,049 1,603 1,330
(Gain) on sale of securitized loans (Note 8) (496) (700) (420)
Change in derivative instruments – (Increase) decrease in derivative asset (2,803) 14,010 (29,370)
– Increase (decrease) in derivative liability 4,775 (9,510) 20,645
Amortization of premises and equipment (Note 11) 267 269 252
(Gain) on sales of land and buildings (4) (10) (13)
Amortization of intangible assets 203 203 183
Net (increase) decrease in future income taxes (62) 186 (157)
Net (increase) decrease in current income taxes (229) 296 (314)
Change in accrued interest – (Increase) decrease in interest receivable (75) 387 303
– (Decrease) in interest payable (119) (492) (351)
Changes in other items and accruals, net 1,957 (2,796) 1,590
Net Cash Provided by (Used in) Operating Activities (6,584) 12,794 4,246
Cash Flows from Financing Activities
Net increase (decrease) in deposits 16,762 (11,149) (1,412)
Net increase (decrease) in securities sold but not yet purchased 4,662 (6,446) (7,251)
Net increase (decrease) in securities lent or sold under repurchase agreements 2,043 17,467 (3,731)
Net increase (decrease) in liabilities of subsidiaries (10) (113) 2,045
Repayment of subordinated debt (Note 17) (500) (140) (150)
Proceeds from issuance of subordinated debt (Note 17) – – 900
Redemption of preferred share liability (Note 20) – (250) –
Proceeds from issuance of preferred shares (Note 20) – 825 550
Proceeds from issuance of common shares (Note 20) 197 1,087 60
Redemption of Capital Trust Securities (Note 18) (350) – –
Share issue expense (3) (32) (10)
Cash dividends paid (1,175) (1,312) (1,361)
Net Cash Provided by (Used in) Financing Activities 21,626 (63) (10,360)
Cash Flows from Investing Activities
Net decrease in interest bearing deposits with banks 383 8,656 10,077
Purchases of securities, other than trading (28,587) (41,041) (21,303)
Maturities of securities, other than trading 13,879 10,800 16,984
Proceeds from sales of securities, other than trading 15,329 18,917 8,268
Net (increase) in loans (17,531) (3,107) (28,507)
Proceeds from securitization of loans (Note 8) 4,279 6,796 11,448
Net (increase) decrease in securities borrowed or purchased under resale agreements 6,725 (10,985) 14,665
Proceeds from sales of land and buildings 5 17 19
Premises and equipment – net purchases (207) (204) (285)
Purchased and developed software – net purchases (274) (176) (164)
Acquisitions (Note 12) (1,029) (328) (155)
Net Cash Provided by (Used in) Investing Activities (7,028) (10,655) 11,047
Effect of Exchange Rate Changes on Cash and Cash Equivalents (601) (1,255) 551
Net Increase in Cash and Cash Equivalents 7,413 821 5,484
Cash and Cash Equivalents at Beginning of Year 9,955 9,134 3,650
Cash and Cash Equivalents at End of Year $ 17,368 $ 9,955 $ 9,134
Represented by:
Cash and non-interest bearing deposits with Bank of Canada and other banks $ 16,693 $ 8,656 $ 6,936
Cheques and other items in transit, net 675 1,299 2,198
$ 17,368 $ 9,955 $ 9,134
Supplemental Disclosure of Cash Flow Information
Amount of interest paid in the year $ 3,371 $ 5,507 $ 9,900
Amount of income taxes paid (refunded) in the year $ 897 $ (232) $ 456
The accompanying notes are an integral part of these consolidated financial statements.