Comerica 2008 Annual Report Download - page 75

CONSOLIDATED STATEMENTS OF CASH FLOWS
Comerica Incorporated and Subsidiaries
Years Ended December 31,
2008 2007 2006
(in millions)
OPERATING ACTIVITIES
Net income ...................................................... $ 213 $ 686 $ 893
Income from discontinued operations, net of tax ............................ 14 111
Income from continuing operations, net of tax .............................. 212 682 782
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses ........................................... 686 212 37
Provision for credit losses on lending-related commitments ...................... 18 (1) 5
Provision (benefit) for deferred income taxes ............................... (99) (53) 12
Depreciation and software amortization .................................. 114 96 84
Auction-rate securities charge ........................................ 88 ——
Lease income charge .............................................. 38 ——
Share-based compensation expense ..................................... 51 59 57
Net amortization of securities ........................................ (11) (3) (2)
Net securities gains .............................................. (67) (7) —
Net (gain) loss on sales of businesses .................................... —(3) 12
Contribution to qualified pension plan ................................... (175) ——
Excess tax benefits from share-based compensation arrangements .................. —(9) (9)
Net (increase) decrease in trading securities ................................ (6) 61 (50)
Net decrease in loans held-for-sale ..................................... 99 14 78
Net decrease (increase) in accrued income receivable .......................... 82 1 (65)
Net (decrease) increase in accrued expenses ............................... (306) 36 25
Other, net .................................................... 137 (75) (66)
Discontinued operations, net ......................................... 1475
Net cash provided by operating activities .............................. 862 1,014 975
INVESTING ACTIVITIES
Proceeds from sales of investment securities available-for-sale ........................ 156 71
Proceeds from maturities of investment securities available-for-sale .................... 1,667 882 1,337
Purchases of investment securities available-for-sale .............................. (4,496) (3,519) (747)
Purchases of Federal Home Loan Bank stock ................................. (353) ——
Net increase in loans ................................................ (259) (3,561) (4,324)
Net increase in fixed assets ............................................ (166) (189) (163)
Net decrease in customers’ liability on acceptances outstanding ...................... 34 83
Proceeds from sales of businesses ......................................... —343
Discontinued operations, net ............................................ —— 221
Net cash used in investing activities ................................... (3,417) (6,369) (3,629)
FINANCING ACTIVITIES
Net (decrease) increase in deposits ........................................ (2,299) (1,295) 2,496
Net (decrease) increase in short-term borrowings ............................... (1,058) 2,172 333
Net decrease in acceptances outstanding .................................... (34) (8) (3)
Proceeds from issuance of medium- and long-term debt ........................... 8,000 4,335 3,326
Repayments of medium- and long-term debt .................................. (2,000) (1,529) (1,303)
Proceeds from issuance of preferred stock and related warrants ...................... 2,250 ——
Proceeds from issuance of common stock under employee stock plans .................. 189 45
Excess tax benefits from share-based compensation arrangements ..................... —99
Purchase of common stock for treasury ..................................... (1) (580) (384)
Dividends paid .................................................... (395) (390) (377)
Discontinued operations, net ............................................ ———
Net cash provided by financing activities ................................ 4,464 2,803 4,142
Net increase (decrease) in cash and cash equivalents ............................... 1,909 (2,552) 1,488
Cash and cash equivalents at beginning of year .................................. 1,514 4,066 2,578
Cash and cash equivalents at end of year ...................................... $ 3,423 $ 1,514 $ 4,066
Interest paid ....................................................... $ 1,266 $ 1,703 $ 1,385
Income taxes paid ................................................... $ 241 $ 402 $ 299
Noncash investing and financing activities:
Loans transferred to other real estate ...................................... $65$20$13
Loans transferred from held-for-sale to portfolio ................................ 84 ——
Loans transferred from portfolio to held-for-sale ................................ —83 74
See notes to consolidated financial statements.
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