JP Morgan Chase 2010 Annual Report Download - page 163

Consolidated statements of cash flows
JPMorgan Chase & Co./2010 Annual Report
163
Note: Effective January 1, 2010, the Firm adopted accounting guidance related to VIEs. Upon adoption of the guidance, the Firm consolidated noncash assets and liabilities
of $87.7 billion and $92.2 billion, respectively.
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) 2010 2009 2008
Operating activities
Net income
$
17,370
$ 11,728 $ 5,605
Adjustments to reconcile net
income to net cash
(used in)/
provided by
operating activities:
Provision for credit losses
16,639
32,015 20,979
Depreciation and amortization
4,029
3,308 3,265
Amortization of intangibles
936
1,050 1,263
Deferred tax benefit
(
968
)
(3,622) (2,637 )
Investment securities gains
(2,965)
(1,110) (1,560 )
Proceeds on sale of investment
—
— (1,540 )
Stock-based compensation
3,251
3,355 2,637
Originations and purchases of loans held-for-sale
(37,085)
(22,417) (34,902 )
Proceeds from sales, securitizations and paydowns of loans held-for-sale
40,155
33,902 38,036
Net change in:
Trading assets
(
72,082
)
133,488 (12,787 )
Securities borrowed
(3,926)
4,452 15,408
Accrued interest and accounts receivable
443
(6,312) 10,221
Other assets
(12,
45
2
)
32,557 (32,919
)
Trading liabilities
19,3
44
(79,314) 24,061
Accounts payable and other liabilities
17,
3
2
5
(26,450) 1,012
Other operating adjustments
6,
234
6,167 (12,212
)
Net cash
(used in)
/
provided by
operating activities
(
3,752
)
122,797 23,930
Investing activities
Net change in:
Deposits with banks
41,625
74,829 (118,929 )
Federal funds sold and securities purchased under resale agreements
(26,957)
7,082 (44,597 )
Held
-
to
-
maturity securities:
Proceeds
7
9 10
Available
-
for
-
sale
securities:
Proceeds from maturities
92,740
87,712 44,414
Proceeds from sales
118,600
114,041 96,806
Purchases
(179,487)
(346,372) (248,599 )
Proceeds from sales and securitizations of loans held-for-investment
8,853
30,434 27,531
Other changes in loans, net
3,645
51,251 (59,123 )
Net cash (used)/received in business acquisitions or dispositions
(4,910)
(97) 2,128
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
(114
)
(762) (934 )
Net cash provided by
/
(used in) investing activities
54,00
2
29,355 (283,671 )
Financing activities
Net change in:
Deposits
(9,637)
(107,700) 177,331
Federal funds purchased and securities loaned or sold under repurchase agreements
15,202
67,785 15,250
Commercial paper and other borrowed funds
(6,869)
(67,198) 9,219
Beneficial interests issued by consolidated variable interest entities
2,426
(4,076) (55)
Proceeds from long-term borrowings and trust preferred capital debt securities
55,181
51,324 72,407
Payments of long-term borrowings and trust preferred capital debt securities
(
99,043
)
(68,441) (65,344 )
Excess tax benefits related to stock-based compensation
26
17
148
Proceeds from issuance of preferred stock and Warrant to the U.S. Treasury
—
— 25,000
Proceeds from issuance of other preferred stock
—
— 7,746
Redemption of preferred stock issued to the U.S. Treasury
—
(25,000) —
Redemption of other preferred stock
(352)
— —
Proceeds from issuance of common stock
—
5,756 11,500
Treasury stock purchased
(2,999)
— —
Dividends paid
(1,486)
(3,422) (5,911 )
All other financing activities, net
(1,666)
(2,124) (292
)
Net cash (used in)
/
provided by financing activities
(
49,217
)
(153,079) 246,999
Effect of exchange rate changes on cash and due from banks
328
238 (507
)
Net increase/(decrease) in cash and due from banks
1,361
(689) (13,249 )
Cash and due from banks at the beginning of the year
26,206
26,895 40,144
Cash and due from banks at the end of the year
$
27,567
$ 26,206 $ 26,895
Cash interest paid
$
12,404
$ 16,875 $ 37,267
Cash income taxes paid, net
9,747
5,434 2,280