KeyBank 2005 Annual Report Download - page 91

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90
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES
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CONDENSED STATEMENTS OF CASH FLOW
Year ended December 31,
in millions 2005 2004 2003
OPERATING ACTIVITIES
Net income $ 1,129 $ 954 $ 903
Adjustments to reconcile net income to net cash provided by operating activities:
Net securities (gains) losses (1) (10) 3
Deferred income taxes 23 —38
Equity in net income less dividends from subsidiaries 327 (229) (684)
Net (increase) decrease in other assets (276) 43 (84)
Net increase (decrease) in other liabilities 25 (4) 52
Net decrease in accrued restructuring charges —(6) (10)
Other operating activities, net 71 (27) 29
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,298 721 247
INVESTING ACTIVITIES
Cash used in acquisitions, net of cash acquired —(195) —
Net (increase) decrease in interest-bearing deposits (641) (294) 407
Purchases of securities available for sale (2) (4) —
Proceeds from prepayments and maturities of securities available for sale 116 56
Net increase in loans and advances to subsidiaries (496) (119) (331)
(Increase) decrease in investments in subsidiaries 105 (101) 577
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (1,033) (697) 709
FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings (66) 11 (46)
Net proceeds from issuance of long-term debt 861 1,330 662
Payments on long-term debt (429) (505) (815)
Purchases of treasury shares (229) (512) (303)
Net proceeds from issuance of common stock 129 160 59
Cash dividends paid (531) (508) (513)
NET CASH USED IN FINANCING ACTIVITIES (265) (24) (956)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS — ——
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR — ——
CASH AND DUE FROM BANKS AT END OF YEAR — ——
KeyCorp paid $159 million in interest on borrowed funds in 2005, $96 million in 2004 and $88 million in 2003.
CONDENSED STATEMENTS OF INCOME
Year ended December 31,
in millions 2005 2004 2003
INCOME
Dividends from subsidiaries:
Banks $ 700 $ 786 $245
Nonbank subsidiaries 929 75 73
Interest income from subsidiaries 87 56 41
Other income 16 105 16
1,732 1,022 375
EXPENSES
Interest on long-term debt with subsidiary trusts 64 36 38
Interest on other borrowed funds 106 64 48
Personnel and other expense 170 223 115
340 323 201
Income before income tax benefit and equity in
net income less dividends from subsidiaries 1,392 699 174
Income tax benefit 64 26 45
1,456 725 219
Equity in net income less dividends from subsidiaries (327) 229 684
NET INCOME $1,129 $ 954 $903