Capital One 2010 Annual Report Download - page 114

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CAPITAL ONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
(Dollars in millions) 2010 2009 2008
Operating activities:
Income from continuing operations, net of tax .............................................................. $ 3,050 $ 987 $ 85
Loss from discontinued operations, net of tax ............................................................... (307) (103) (131)
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et income (loss) .......................................................................................... 2,743 884 (46)
Adjustments to reconcile net income to cash provided by operating activities:
Provision for loan and lease losses ....................................................................... 3,907 4,230 5,101
Depreciation and amortization, net ....................................................................... 582 683 692
Net gains on sales of securities available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (141) (218) (14)
Goodwill impairment ................................................................................... 0 0 811
Gains on sales of auto loans ............................................................................. (2)
Gains on extinguishment/repurchase of debt/senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 (54)
Net gains on deconsolidation ............................................................................ (177) 0 0
Loans held for sale:
Transfers in and originations .......................................................................... (180) (1,194) (1,949)
(Gains) losses on sales ................................................................................ (1) 0 (31)
Proceeds from sales .................................................................................. 241 1,228 2,211
Stock plan compensation expense ........................................................................ 149 146 112
Changes in assets and liabilities, net of effects from purchase of companies acquired and the effect of new
accounting standards:
(Increase) decrease in interest receivable .............................................................. (137) (108) 11
(Increase) decrease in accounts receivable from securitizations(1) ....................................... (475) (2,015) (1,625)
(Increase) decrease in other assets(1) ................................................................... 1,432 339 (3,108)
Increase (decrease) in interest payable ................................................................. (21) (167) 45
Increase (decrease) in other liabilities(1) ................................................................ (133) (1,709) 1,203
Net cash provided by (used in) operating activities attributable to discontinued operations . . . . . . . . . . . . . . . . . . 353 (17) 126
Net cash provided by operating activities ................................................................. 8,142 2,082 3,483
Investing activities:
Increase in restricted cash for securitization investors(1) ...................................................... 2,897 727 0
Purchases of securities available for sale .................................................................... (26,378) (27,827) (21,698)
Proceeds from paydowns and maturities of securities available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,567 9,541 6,676
Proceeds from sales of securities available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,466 13,410 2,628
Proceeds from securitizations of loans ...................................................................... 0 12,068 10,047
Proceeds from sale of interest-only bonds ................................................................... 57 0 0
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et (increase) decrease in loans held for investmen
t
(1) ....................................................... 2,607 1,934 (13,588)
Principal recoveries of loans previously charged off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,587 774 673
Additions of premises and equipment ....................................................................... (340) (243) (356)
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et cash provided by companies acquired .................................................................. 0 778 0
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et cash provided by investing activities attributable to discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 12
Other decrease in investing activities ....................................................................... 0 0 (3)
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,463 11,162 (15,609)
Financing activities:
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et increase (decrease) in deposits ......................................................................... 6,401 (6,369) 25,860
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et decrease in securitized debt obligations ................................................................. (21,385) (3,557) (5,557)
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et decrease in other borrowings(1) ......................................................................... (293) (2,356) (6,373)
Maturities of senior notes .................................................................................. (666) (1,447) (1,802)
Repurchase of senior notes ................................................................................. 0 0 (1,121)
Redemptions of acquired debt and noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 (464) 0
Issuance of senior and subordinated notes and junior subordinated debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 4,500 0
Purchases of treasury stock ................................................................................. (22) (14) (13)
Dividends paid on common stock .......................................................................... (91) (214) (568)
Dividends paid on preferred stock .......................................................................... 0 (105) 0
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et proceeds from issuances of common stock .............................................................. 30 1,536 772
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et (payments)/proceeds from issuance/(redemption) of preferred stock and warrants . . . . . . . . . . . . . . . . . . . . . . . . 0 (3,555) 3,555
Proceeds from share-based payment activities ............................................................... 3 (6) 59
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et cash provided by (used in) financing activities attributable to discontinued operations . . . . . . . . . . . . . . . . . . . . (18) 1 (16)
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,041) (12,050) 14,796
Increase in cash and cash equivalents .................................................................... (3,436) 1,194 2,670
Cash and cash equivalents at beginning of the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,685 7,491 4,821
Cash and cash equivalents at end of the period .............................................................. $ 5,249 $ 8,685 $ 7,491
Supplemental cash flow information: .....................................................................
Non-cash items:
Cumulative effect from adoption of new consolidation accounting standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,973 $ 0 $ 0
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(1) Excludes the initial impact from the January 1, 2010 adoption of the new consolidation standards.
See Notes to Consolidated Financial Statements.