Huntington National Bank 2015 Annual Report Download - page 197

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Statements of Cash Flows Year Ended December 31,
(dollar amounts in thousands) 2015 2014 2013
Operating activities
Net income $ 692,957 $ 632,392 $ 641,282
Adjustments to reconcile net income to net cash provided by
operating activities:
Equity in undistributed net income of subsidiaries 175,660 (411,261) (718,144)
Depreciation and amortization 609 548 513
Loss on sales of securities available-for-sale 540——
Other, net (44,197) 26,685 15,965
Net cash (used for) provided by operating activities 825,569 248,364 (60,384)
Investing activities
Repayments from subsidiaries 494,905 9,250 285,792
Advances to subsidiaries (612,610)(32,350) (249,050)
Proceeds from sale of securities available-for-sale 449——
Cash paid for acquisitions, net of cash received —(13,452)—
Proceeds from business divestitures 9,029 — —
Net cash (used for) provided by investing activities (108,227)(36,552) 36,742
Financing activities
Proceeds from issuance of long-term borrowings — — 400,000
Payment of borrowings — — (50,000)
Dividends paid on stock (224,390)(198,789) (182,476)
Net proceeds from issuance of common stock — 2,597 —
Repurchases of common stock (251,844)(334,429) (124,995)
Other, net 13,492 15,512 25,707
Net cash provided by (used for) financing activities (462,742)(515,109) 68,236
Change in cash and cash equivalents 254,600 (303,297) 44,594
Cash and cash equivalents at beginning of year 662,768 966,065 921,471
Cash and cash equivalents at end of year $ 917,368 $ 662,768 $ 966,065
Supplemental disclosure:
Interest paid $ 17,384 $ 21,321 $ 20,739
23. BUSINESS COMBINATIONS
MACQUARIE EQUIPMENT FINANCE
On March 31, 2015, Huntington completed its acquisition of Macquarie, subsequently rebranded Huntington Technology
Finance, in a cash transaction valued at $458 million. The acquisition gives us the ability to drive added growth to our national
equipment finance business as well as additional small business finance capabilities.
As a result of the acquisition, Huntington recorded approximately $1.1 billion of assets and assumed $617 million of debt,
securitizations, and other liabilities. Assets acquired and liabilities assumed were recorded at fair value in accordance with ASC 805,
“Business Combinations”. The fair values for assets were estimated using discounted cash flow analyses using interest rates currently
being offered for leases with similar terms (Level 3). This value was reduced by an estimate of probable losses and the credit risk
associated with leased assets. The fair values of debt, securitizations, and other liabilities were estimated by discounting cash flows
using interest rates currently being offered with similar maturities (Level 3). As part of the acquisition, Huntington recorded $156
million of goodwill, all of which is deductible for tax purposes.
Pro forma results have not been disclosed, as those amounts are not significant to the audited consolidated financial statements.