KeyBank 2007 Annual Report Download - page 106

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104
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
Year ended December 31,
in millions 2007 2006 2005
OPERATING ACTIVITIES
Net income $ 919 $ 1,055 $ 1,129
Adjustments to reconcile net income to net cash provided by operating activities:
Net securities gains —— (1)
Deferred income taxes (9) 27 23
Equity in net income less dividends from subsidiaries
a
(24) 18 327
Net increase in other assets (148) (281) (276)
Net (decrease) increase in other liabilities (72) 361 25
Other operating activities, net 6113 71
NET CASH PROVIDED BY OPERATING ACTIVITIES 672 1,293 1,298
INVESTING ACTIVITIES
Net decrease (increase) in interest-bearing deposits 1,698 (535) (641)
Purchases of securities available for sale (15) (11) (2)
Proceeds from sales, prepayments and maturities of securities available for sale 15 11
Net (increase) decrease in loans and advances to subsidiaries (219) 80 (496)
(Increase) decrease in investments in subsidiaries (100) (28) 105
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,379 (493) (1,033)
FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings 29 (3) (66)
Net proceeds from issuance of long-term debt —1,500 861
Payments on long-term debt (1,040) (1,368) (429)
Purchases of treasury shares (595) (644) (229)
Net proceeds from issuance of common stock 112 244 129
Tax benefits in excess of recognized compensation cost for stock-based awards 13 28 —
Cash dividends paid (570) (557) (531)
NET CASH USED IN FINANCING ACTIVITIES (2,051) (800) (265)
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 — ——
a
Includes results of discontinued operations described in Note 3 (“Acquisitions and Divestitures”), which begins on page 74.
KeyCorp paid interest on borrowed funds equal to $255 million in 2007, $252 million in 2006 and $159 million in 2005.