PNC Bank 2006 Annual Report Download - page 126

Download and view the complete annual report

Please find page 126 of the 2006 PNC Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 147

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147

Commercial paper and all other debt issued by PNC Funding
Corp, a wholly owned finance subsidiary, is fully and
unconditionally guaranteed by the parent company. In
addition, in connection with certain affiliates’ commercial
mortgage servicing operations, the parent company has
committed to maintain such affiliates’ net worth above
minimum requirements.
The parent company received net income tax refunds of $35
million in 2006 and $19 million in 2005. Such refunds
represent the parent company’s portion of consolidated
income taxes. The parent company made income tax payments
of $9 million in 2004. The parent company paid interest of
$113 million in 2006, $94 million in 2005 and $62 million in
2004.
Statement Of Cash Flows
Year ended December 31 - in millions 2006 2005 2004
O
PERATING
A
CTIVITIES
Net income $2,595 $1,325 $1,197
Adjustments to reconcile net income to
net cash provided (used) by
operating activities:
Equity in undistributed net
(earnings) loss of subsidiaries (1,870) (580) (141)
Other 103 130 (18)
Net cash provided by operating
activities 828 875 1,038
I
NVESTING
A
CTIVITIES
Net capital returned from (contributed
to) subsidiaries 300 (271) 495
Securities available for sale
Sales and maturities 3,440 2,912 1,638
Purchases (3,437) (2,822) (1,991)
Cash paid for acquisitions (447) (290)
Other (311) 239
Net cash used in investing activities (8) (389) (148)
F
INANCING
A
CTIVITIES
Borrowings from non-bank subsidiary 210 150 1,100
Repayments on borrowings from
non-bank subsidiary (210) (150) (1,318)
Acquisition of treasury stock (531) (112) (251)
Cash dividends paid to shareholders (633) (575) (566)
Issuance of treasury stock 343 203 144
Net cash used in financing activities (821) (484) (891)
Increase (decrease) in cash and due
from banks (1) 2 (1)
Cash and due from banks at
beginning of year 312
Cash and due from banks at end of
year $2 $3 $1
116