Sun Life 2012 Annual Report Download - page 93

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CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, (in millions of Canadian dollars) 2012 2011(1)
Cash flows provided by (used in) operating activities
Total income (loss) before income taxes $ 1,958 $ (742)
Add: interest expense related to financing activities 367 434
Operating items not affecting cash:
Increase (decrease) in contract liabilities 2,859 6,686
(Increase) decrease in reinsurance assets 4401
Unrealized (gains) losses on investments (1,176) (3,926)(2)
Impairment of goodwill and intangible in assets (Note 10) –307
Other non-cash items 239 (117)
Operating cash items:
Deferred acquisition costs (48) (43)
Realized (gains) losses on investments (471) (763)(2)
Sales, maturities and repayments of investments 86,197 97,572(2)
Purchases of investments (89,310) (97,666)(2)
Change in policy loans 732
Income taxes received (paid) (36) (166)
Other cash items 158 705(2)
Net cash provided by (used in) operating activities 748 2,714
Cash flows provided by (used in) investing activities
(Purchase) sale of property and equipment (181) (120)
Transactions with associates and joint ventures (Note 26) 34 (87)
Purchase of shares from non-controlling interests (Note 17) –(51)
Dividends received from associates and joint ventures 14 –
Other investing activities (43) (64)
Net cash provided by (used in) investing activities (176) (322)
Cash flows provided by (used in) financing activities
Borrowed funds 36 35
Issuance of senior financing, senior debentures and subordinated debt (Notes 13, 14, and 15) 796 297
Collateral on senior financing (Note 13) (2) (25)
Redemption of senior financing, senior debentures, subordinated debt and innovative capital
instruments (Notes 13, 14 and 15) (800) (1,250)
Issuance of preferred shares (Note 16) –485
Issuance of common shares on exercise of stock options (Note 16) 10 42
Dividends paid on common and preferred shares (699) (679)
Interest expense paid (401) (355)
Net cash provided by (used in) financing activities (1,060) (1,450)
Changes due to fluctuations in exchange rates (31) 10
Increase (decrease) in cash and cash equivalents (519) 952
Net cash and cash equivalents, beginning of year 4,353 3,401
Net cash and cash equivalents, end of year 3,834 4,353
Short-term securities, end of year 3,771 4,378
Net cash and cash equivalents and short-term securities, end of year $ 7,605 $ 8,731
Less: Net cash and cash equivalents and short-term securities, classified as held for sale,
as at December 31, 2012 (Note 3) $ 574
Net cash and cash equivalents and short-term securities, continuing operations,
as at December 31, 2012 $ 7,031
(1) Balances have been restated. Refer to Note 2.
(2) Certain derivative cash flows within operating activities have been reclassified to be consistent with the 2012 presentation of these cash flows.
The attached notes form part of these Consolidated Financial Statements.
Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2012 91