Sun Life 2010 Annual Report Download - page 84

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Consolidated Statements of Cash Flows
YEARS ENDED DECEMBER 31 (in millions of Canadian dollars) 2010 2009 2008
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
Total net income (loss) $ 1,685 $ 622 $ 857
Items not affecting cash:
Increase (decrease) in actuarial and other policy-related liabilities 2,822 7,707 (4,392)
Unrealized (gains) losses on held-for-trading assets and derivatives (3,041) (4,644) 7,383
Amortization of:
Net deferred realized and unrealized gains on investments (33) (76) (136)
Deferred acquisition costs and intangible assets 93 82 74
(Gain) loss on foreign exchange (Note 5) –10 22
Future income taxes 277 (737) (489)
Provisions for losses (recoveries) on investments 115 117 4
Stock-based compensation (Note 18) 126 96 31
Accrued expenses and taxes 177 86 (424)
Investment income due and accrued 13 26 6
Other changes in other assets and liabilities 457 (276) (560)
Gain on sale of equity investment (Note 3) –– (1,015)
Realized (gains) losses on held-for-trading and available-for-sale assets 256 618 410
New mutual fund business acquisition costs capitalized (96) (99) (56)
Redemption fees of mutual funds 13 16 22
Net cash provided by operating activities 2,864 3,548 1,737
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
Borrowed funds (33) (5) (17)
Issuance of senior financing (Note 12) 76 223 118
Collateral on senior financing (Note 12) 14 231 (258)
Issuance of senior debentures (Note 11) –799 –
Issuance of subordinated debt (Note 13) –496 746
Redemption and maturity of subordinated debt (Note 13) (300) ––
Issuance of preferred shares (Note 15) 280 250 –
Payments to underwriters (Note 15) (9) (6) –
Issuance of common shares on exercise of stock options 15 68
Common shares purchased for cancellation (Note 15) –– (217)
Dividends paid on common shares (543) (864) (809)
Dividends paid on preferred shares (91) (78) (70)
Net cash provided by (used in) financing activities (591) 1,052 (499)
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
Sales, maturities and repayments of:
Bonds 24,803 17,583 15,697
Mortgages and corporate loans 5,629 5,285 5,624
Stocks 1,389 1,535 1,715
Real estate 128 48 109
Purchases of:
Bonds (28,719) (18,548) (15,706)
Mortgages and corporate loans (6,241) (3,738) (5,746)
Stocks (1,096) (1,228) (1,915)
Real estate (202) (164) (320)
Policy loans (59) (153) (162)
Short-term securities 1,047 (2,998) (1,530)
Cash cost of acquisition (Note 3) –(387) –
Cash and cash equivalents acquired on acquisition (Note 3) –402 –
Net cash paid on the sale of reinsurance business (Note 3) (262) ––
Net cash from sale of equity investment (Note 3) –– 1,546
Other investments (861) (1,088) 723
Net cash provided by (used in) investing activities (4,444) (3,451) 35
Changes due to fluctuations in exchange rates (85) (802) 642
Increase (decrease) in cash and cash equivalents (2,256) 347 1,915
Cash and cash equivalents, beginning of year 5,865 5,518 3,603
Cash and cash equivalents, end of year 3,609 5,865 5,518
Short-term securities, end of year 4,878 6,003 3,361
Cash, cash equivalents and short-term securities, end of year $ 8,487 $ 11,868 $ 8,879
Supplementary Information
Cash and cash equivalents:
Cash $ 879 $ 1,191 $ 745
Cash equivalents 2,730 4,674 4,773
$ 3,609 $ 5,865 $ 5,518
Cash disbursements (receipts) for (from):
Interest on borrowed funds, debentures and subordinated debt $ 444 $ 384 $ 381
Income taxes, net of refunds $ (143) $ 212 $ 467
The attached notes form part of these Consolidated Financial Statements.
80 Sun Life Financial Inc. Annual Report 2010 Consolidated Financial Statements