KeyBank 2014 Annual Report Download - page 230

CONDENSED STATEMENTS OF CASH FLOWS
Year ended December 31,
in millions 2014 2013 2012
OPERATING ACTIVITIES
Net income (loss) attributable to Key $ 900 $ 910 $ 858
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes (benefit) (8) 37 32
Stock-based compensation expense 14 11 17
Equity in net (income) loss less dividends from subsidiaries (a) (634) (374) 877
Net (increase) decrease in other assets (53) 612 (72)
Net increase (decrease) in other liabilities 98 (154) 16
Other operating activities, net 24 (151) (50)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 341 891 1,678
INVESTING ACTIVITIES
Net (increase) decrease in short-term investments 42,096 (2,048)
Purchases of securities available for sale (2) (14) (34)
Cash used in acquisitions (114) ——
Proceeds from sales, prepayments and maturities of securities available for sale —39 1
Net (increase) decrease in loans to subsidiaries 257 (4) 36
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 145 2,117 (2,045)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt —750 —
Payments on long-term debt —(750) (1,149)
Repurchase of Treasury Shares (484) (474) (251)
Net proceeds from the issuance of common shares and preferred stock 27 26 2
Cash dividends paid (240) (217) (191)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (697) (665) (1,589)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS (211) 2,343 (1,956)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR 2,418 75 2,031
CASH AND DUE FROM BANKS AT END OF YEAR $ 2,207 $ 2,418 $ 75
(a) Includes results of discontinued operations described in Note 13 (“Acquisitions and Discontinued Operations”).
KeyCorp paid interest on borrowed funds totaling $64 million in 2014, $76 million in 2013, and $118 million in
2012.
KeyCorp’s condensed Balance Sheet, Statements of Income, and Statements of Cash Flows were adjusted to
reflect the push down of stock-based compensation expense, net of income taxes, to its subsidiaries for the years
ended December 31, 2013, and December 31, 2012. Previously, the stock-based compensation expense and
related tax impact were retained at the parent company level. Net income for the years ended December 31, 2013,
and December 31, 2012, was not impacted by the restatement. There was no adjustment to beginning
shareholders’ equity for the year ended December 31, 2013, to account for the stock-based compensation expense
that would have been pushed down to KeyCorp’s subsidiaries in periods not presented.
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