US Bank 2011 Annual Report Download - page 129

Condensed Statement of Cash Flows
Year Ended December 31 (Dollars in Millions) 2011 2010 2009
Operating Activities
Net income attributable to U.S. Bancorp ................................................................ $ 4,872 $ 3,317 $ 2,205
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed income of subsidiaries ....................................................... (3,551) (3,477) (1,885)
Other, net ............................................................................................. 12 130 703
Net cash provided by (used in) operating activities ................................................ 1,333 (30) 1,023
Investing Activities
Proceeds from sales and maturities of investment securities ........................................... 297 298 395
Purchases of investment securities ..................................................................... (36) (63) (52)
Investments in subsidiaries ............................................................................. – (1,750) (186)
Equity distributions from subsidiaries ................................................................... 77 58 58
Net increase in short-term advances to subsidiaries .................................................... (4,613) (253) (173)
Long-term advances to subsidiaries .................................................................... – (300) (800)
Principal collected on long-term advances to subsidiaries .............................................. – 300 –
Other, net ............................................................................................... (3) 33 (29)
Net cash used in investing activities ............................................................... (4,278) (1,677) (787)
Financing Activities
Net decrease in short-term borrowings ................................................................. (31) (782) (392)
Proceeds from issuance of long-term debt ............................................................. 2,426 4,250 5,031
Principal payments or redemption of long-term debt ................................................... (851) (5,250) (1,054)
Fees paid on exchange of income trust securities for perpetual preferred stock ........................ – (4) –
Proceeds from issuance of preferred stock ............................................................. 676 – –
Proceeds from issuance of common stock ............................................................. 180 119 2,703
Redemption of preferred stock .......................................................................... – – (6,599)
Repurchase of common stock .......................................................................... (514) – –
Repurchase of common stock warrant .................................................................. – – (139)
Cash dividends paid on preferred stock ................................................................ (118) (89) (275)
Cash dividends paid on common stock ................................................................. (817) (383) (1,025)
Net cash provided by (used in) financing activities ................................................. 951 (2,139) (1,750)
Change in cash and due from banks............................................................... (1,994) (3,846) (1,514)
Cash and due from banks at beginning of year ......................................................... 6,722 10,568 12,082
Cash and due from banks at end of year .......................................................... $4,728 $ 6,722 $10,568
Transfer of funds (dividends, loans or advances) from
bank subsidiaries to the Company is restricted. Federal law
requires loans to the Company or its affiliates to be secured
and generally limits loans to the Company or an individual
affiliate to 10 percent of each bank’s unimpaired capital and
surplus. In the aggregate, loans to the Company and all
affiliates cannot exceed 20 percent of each bank’s unimpaired
capital and surplus.
Dividend payments to the Company by its subsidiary
banks are subject to regulatory review and statutory
limitations and, in some instances, regulatory approval. The
approval of the Office of the Comptroller of the Currency is
required if total dividends by a national bank in any calendar
year exceed the bank’s net income for that year combined
with its retained net income for the preceding two calendar
years, or if the bank’s retained earnings are less than zero.
Furthermore, dividends are restricted by the Comptroller of
the Currency’s minimum capital constraints for all national
banks. Within these guidelines, all bank subsidiaries have the
ability to pay dividends without prior regulatory approval.
The amount of dividends available to the parent company
from the bank subsidiaries at December 31, 2011, was
approximately $6.6 billion.
NOTE 24 Subsequent Events
The Company has evaluated the impact of events that have
occurred subsequent to December 31, 2011 through the date
the consolidated financial statements were filed with the
United States Securities and Exchange Commission. Based on
this evaluation, other than as recorded or disclosed within
these consolidated financial statements and related notes, the
Company has determined none of these events were required
to be recognized or disclosed.
U.S. BANCORP 127