KeyBank 2010 Annual Report Download - page 20

18
Consolidated Statements of Cash Flows
18
Year ended December 31 (in millions) 2010 2009 2008
OPERATING ACTIVITIES
Net income (loss) $ 584 $ (1,311) $(1,460)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for loan and lease losses 638 3,159 1,537
Depreciation and amortization expense 330 389 429
FDIC (payments) net of FDIC expense 105 (466) —
Deferred income taxes 80 (878) (1,722)
Net losses (gains) and writedown on OREO 60 86 15
Expense (income) on trading credit default swaps 23 37 (8)
Provision for losses on LIHTC guaranteed funds 8 17 17
Provision for customer derivative losses 4 40 22
Net losses (gains) from loan sales (76) 1 82
Net losses (gains) from principal investing (66) 4 54
Provision (credit) for losses on lending-related commitments (48) 67 (26)
Gains on leased equipment (20) (99) (40)
Net securities losses (gains) (14) (113) 2
Gain from sale/redemption of Visa Inc. shares — (105) (165)
Gain related to exchange of common shares for capital securities — (78) —
Gain from sale of Key’s claim associated with Lehman Brothers’ bankruptcy — (32) —
Intangible assets impairment — 241 469
Liability to Visa Inc. — — (64)
Honsador litigation reserve — — (23)
Net decrease (increase) in loans held for sale excluding transfers from continuing operations 383 295 981
Net decrease (increase) in trading account assets 224 71 (224)
Other operating activities, net 509 995 (436)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,724 2,320 (560)
INVESTING ACTIVITIES
Proceeds from sale/redemption of Visa Inc. shares — 105 165
Cash used in acquisitions, net of cash acquired — — (157)
Net decrease (increase) in short-term investments 399 3,478 (4,632)
Purchases of securities available for sale (9,914) (15,501) (1,663)
Proceeds from sales of securities available for sale 142 2,970 1,001
Proceeds from prepayments and maturities of securities available for sale 4,685 4,275 1,464
Purchases of held-to-maturity securities (2) (6) (6)
Proceeds from prepayments and maturities of held-to-maturity securities 6 7 8
Purchases of other investments (190) (177) (456)
Proceeds from sales of other investments 216 41 161
Proceeds from prepayments and maturities of other investments 133 70 211
Net decrease (increase) in loans, excluding acquisitions, sales and transfers 5,850 11,0 6 6 ( 2,3 58 )
Purchases of loans — — (16)
Proceeds from loan sales 620 380 280
Purchases of premises and equipment (156) (229) (202)
Proceeds from sales of premises and equipment 3 16 8
Proceeds from sales of other real estate owned 182 114 27
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,974 6,609 (6,165)
FINANCING ACTIVITIES
Net increase (decrease) in deposits (4,961) 444 382
Net increase (decrease) in short-term borrowings 1,114 (7,952) (543)
Net proceeds from issuance of long-term debt 797 763 6,465
Payments on long-term debt (1,657) (3,726) (3,884)
Net proceeds from issuance of common shares and preferred stock — 986 4,101
Net proceeds from issuance of common stock warrant — — 87
Net proceeds from reissuance of common shares — — 6
Tax benefits over (under) recognized compensation cost for stock-based awards — (5) (2)
Cash dividends paid (184) (213) (445)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (4,891) (9,703) 6,167
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS (193) (774) (558)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR 471 1,245 1,803
CASH AND DUE FROM BANKS AT END OF YEAR $ 278 $ 471 $ 1,245
Additional disclosures relative to cash flows:
Interest paid $ 879 $1,489 $1,989
Income taxes paid (refunded) (164) (121) 2,152
Noncash items:
Assets acquired — — $2,825
Liabilities assumed — — 2,653
Loans transferred to portfolio from held for sale — $199 411
Loans transferred to held for sale from portfolio $407 311 459
Loans transferred to other real estate owned 210 264 130