US Bank 2005 Annual Report Download - page 102

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Condensed Statement of Cash Flows
Year Ended December 31 (Dollars in Millions) 2005 2004 2003
Operating Activities
Net income ********************************************************************************** $ 4,489 $ 4,167 $ 3,733
Adjustments to reconcile net income to net cash provided by operating activities
(Equity) deficiency in undistributed income of subsidiaries *************************************** (2,014) 779 (3,900)
Other, net ******************************************************************************** 128 43 172
Net cash provided by (used in) operating activities ****************************************** 2,603 4,989 5
Investing Activities
Proceeds from sales and maturities of investment securities **************************************** 13 76 21
Purchases of investment securities ************************************************************** — (76) (73)
Investments in subsidiaries ********************************************************************* (43) — (284)
Equity distributions from subsidiaries ************************************************************ 39 1,916 536
Net (increase) decrease in short-term advances to subsidiaries************************************** (5) 11 35
Principal collected on long-term advances to subsidiaries ****************************************** — — 573
Other, net *********************************************************************************** (18) (12) 131
Net cash provided by (used in) investing activities******************************************* (14) 1,915 939
Financing Activities
Net increase (decrease) in short-term advances from subsidiaries *********************************** — — (117)
Net increase (decrease) in short-term borrowings ************************************************* 99 (16) 319
Principal payments or redemptions of long-term debt********************************************** (1,862) (909) (1,954)
Proceeds from issuance of long-term debt ******************************************************* 5,979 — 1,150
Proceeds from issuance of common stock ******************************************************* 371 581 398
Repurchase of common stock****************************************************************** (1,855) (2,660) (326)
Cash dividends paid ************************************************************************** (2,245) (1,820) (1,557)
Net cash provided by (used in) financing activities******************************************* 487 (4,824) (2,087)
Change in cash and cash equivalents ***************************************************** 3,076 2,080 (1,143)
Cash and cash equivalents at beginning of year ************************************************** 6,806 4,726 5,869
Cash and cash equivalents at end of year ************************************************* $ 9,882 $ 6,806 $ 4,726
Transfer of funds (dividends, loans or advances) from total dividends by a national bank in any calendar year
bank subsidiaries to the Company is restricted. Federal law exceed the bank’s net income for that year combined with
prohibits loans unless they are secured and generally limits its retained net income for the preceding two calendar years
any loan to the Company or individual affiliate to or if the bank’s retained earnings are less than zero.
10 percent of each bank’s unimpaired capital and surplus. Furthermore, dividends are restricted by the Comptroller of
In aggregate, loans to the Company and all affiliates cannot the Currency’s minimum capital constraints for all national
exceed 20 percent of each bank’s unimpaired capital and banks. Within these guidelines, all bank subsidiaries have
surplus. the ability to pay dividends without prior regulatory
Dividend payments to the Company by its subsidiary approval. The amount of dividends available to the parent
banks are subject to regulatory review and statutory company from the bank subsidiaries at December 31, 2005,
limitations and, in some instances, regulatory approval. The was approximately $1.0 billion.
approval of the Comptroller of the Currency is required if
100 U.S. BANCORP