JP Morgan Chase 2009 Annual Report Download - page 151

Consolidated statements of cash flows
JPMorgan Chase & Co./2009 Annual Report 149
Note: In 2008, the fair values of noncash assets acquired and liabilities assumed in: (1) the merger with Bear Stearns were $288.2 billion and $287.7 billion, respectively
(approximately 26 million shares of common stock valued at approximately $1.2 billion were issued in connection with the Bear Stearns merger); and (2) the Wash-
ington Mutual transaction were $260.3 billion and $260.1 billion, respectively.
The Notes to Consolidated Financial Statements are an integral part of these statements.
Year ended December 31, (in millions) 2009 2008 2007
Operating activities
Net income $ 11,728 $ 5,605 $ 15,365
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses 32,015 20,979 6,864
Depreciation and amortization 2,783 3,143 2,427
Amortization of intangibles 1,050 1,263 1,394
Deferred tax (benefit) expense (3,622) (2,637) 1,307
Investment securities gains (1,110) (1,560) (164 )
Proceeds on sale of investment — (1,540) —
Stock-based compensation 3,355 2,637 2,025
Originations and purchases of loans held-for-sale (22,417) (34,902) (116,471 )
Proceeds from sales, securitizations and paydowns of loans held-for-sale 33,902 38,036 107,350
Net change in:
Trading assets 133,488 (12,787) (121,240 )
Securities borrowed 4,452 15,408 (10,496
)
Accrued interest and accounts receivable (6,312) 10,221 (1,932 )
Other assets 32,182 (33,629) (21,628
)
Trading liabilities (79,314) 24,061 12,681
Accounts payable and other liabilities (26,450) 1,012 4,284
Other operating adjustments 6,167 (12,212) 7,674
Net cash provided by (used in) operating activities 121,897 23,098 (110,560 )
Investing activities
Net change in:
Deposits with banks 74,829 (118,929) 2,081
Federal funds sold and securities purchased under resale agreements 7,082 (44,597) (29,814 )
Held-to-maturity securities:
Proceeds 9 10 14
Available-for-sale securities:
Proceeds from maturities 87,712 44,414 31,143
Proceeds from sales 114,041 96,806 98,450
Purchases (346,372) (248,599) (122,507 )
Proceeds from sales and securitizations of loans held-for-investment 30,434 27,531 34,925
Other changes in loans, net 51,251 (59,123) (83,437
)
Net cash received (used) in business acquisitions or dispositions (97) 2,128 (70 )
Proceeds from assets sale to the FRBNY — 28,850 —
Net maturities (purchases) of asset-backed commercial paper guaranteed by the FRBB 11,228 (11,228) —
All other investing activities, net (762) (934) (4,973 )
Net cash provided by (used in) investing activities 29,355 (283,671) (74,188
)
Financing activities
Net change in:
Deposits (107,700) 177,331 113,512
Federal funds purchased and securities loaned or sold under repurchase agreements 67,785 15,250 (7,833 )
Commercial paper and other borrowed funds (76,727) 9,186 41,412
Beneficial interests issued by consolidated variable interest entities (7,275) (2,675) 1,070
Proceeds from issuance of long-term debt and trust preferred capital debt securities 51,324 72,407 95,141
Repayments of long-term debt and trust preferred capital debt securities (55,713) (62,691) (49,410 )
Proceeds from issuance of common stock 5,756 11,500 —
Excess tax benefits related to stock-based compensation 17 148 365
Proceeds from issuance of preferred stock and Warrant to the U.S. Treasury — 25,000 —
Proceeds from issuance of preferred stock — 7,746 —
Redemption of preferred stock issued to the U.S. Treasury (25,000) — —
Repurchases of treasury stock — — (8,178 )
Dividends paid (3,422) (5,911) (5,051
)
All other financing activities, net (1,224) 540 3,028
Net cash (used in) provided by financing activities (152,179) 247,831 184,056
Effect of exchange rate changes on cash and due from banks 238 (507) 424
Net decrease in cash and due from banks (689) (13,249) (268 )
Cash and due from banks at the beginning of the year 26,895 40,144 40,412
Cash and due from banks at the end of the year $ 26,206 $ 26,895 $ 40,144
Cash interest paid $ 16,875 $ 37,267 $ 43,472
Cash income taxes paid 5,434 2,280 7,472