Capital One 2005 Annual Report Download - page 74

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CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31 (In Thousands)
2005 2004 2003
Operating Activities:
Net Income $ 1,809,147
$ 1,543,482 $ 1,135,842
Adjustments to reconcile net income to cash provided by operating
activities:
—
Cumulative effect of accounting change — 23,869
Provision for loan losses 1,491,072
1,220,852 1,517,497
Depreciation and amortization, net 425,640
381,852 384,016
Impairment of long-lived assets 13,272
69,769 10,250
Losses on sales of securities available for sale 6,817
23,049 9,366
Gains on sales of auto loans (14,087) (40,342) (66,436)
Losses on repurchase of senior notes 12,444
4,287 —
Stock plan compensation expense 149,496
127,174 49,449
Changes in assets and liabilities, net of effects from purchase of
companies acquired:
(180,867)
(Increase) decrease in interest receivable (38,562) 3,217
(Increase) decrease in accounts receivable from
securitizations (658,805) 664,204 (1,132,630)
(Increase) decrease in other assets (65,030) 307,960 557,347
Increase (decrease) in interest payable 92,906
(18,788) 19,934
Increase (decrease) in other liabilities 550,043
269,373 (477,467)
Net cash provided by operating activities 3,632,048
4,514,310 2,034,254
Investing Activities:
Purchases of securities available for sale (3,688,180) (6,564,370) (4,609,649)
Proceeds from maturities of securities available for sale 2,009,517
1,713,373 1,451,582
Proceeds from sales of securities available for sale 941,512
1,274,862 1,671,025
Proceeds from sale of automobile loans 257,230
931,003 2,007,263
Proceeds from securitizations of loans 9,482,333
10,854,927 11,466,122
Net increase in loans (16,627,879) (18,927,583) (20,946,541)
Principal recoveries of loans previously charged off 448,351
453,705 357,968
Additions of premises and equipment, net (159,823) (208,975) (262,650)
Net receipts from companies acquired 450,562
— —
Net cash used in investing activities (6,886,377) (10,473,058) (8,864,880)
Financing Activities:
Net increase in deposits 2,239,553
3,233,915 5,094,222
Net increase in other borrowings 2,923,270
1,840,148 1,253,025
Issuances of senior notes 1,262,035
998,190 2,489,878
Maturities of senior notes (876,567) (1,031,892) (1,059,940)
Repurchases of senior notes (648,840) (128,747) —
Purchases of treasury stock (40,049) (17,232) (4,069)
Dividends paid (27,504) (25,618) (24,282)
Net proceeds from issuances of common stock 770,311
23,910 25,147
Proceeds from exercise of stock options 312,176
497,003 118,149
Net cash provided by financing activities 5,914,385
5,389,677 7,892,130
Increase (decrease) in cash and cash equivalents 2,660,056
(569,071) 1,061,504
Cash and cash equivalents at beginning of year 1,411,211
1,980,282 918,778
Cash and cash equivalents at end of year $ 4,071,267
$ 1,411,211 $ 1,980,282
See Notes to Consolidated Financial Statements.
65