US Bank 2003 Annual Report Download - page 105

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Condensed Statement of Cash Flows
Year Ended December 31 (Dollars in Millions) 2003 2002 2001
Operating Activities
Net income****************************************************************************** $ 3,732.6 $ 3,168.1 $ 1,478.8
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed income of subsidiaries ******************************************** (3,899.7) (209.4) (418.0)
Other, net**************************************************************************** 172.2 43.8 88.4
Net cash provided by (used in) operating activities ************************************ 5.1 3,002.5 1,149.2
Investing Activities
Proceeds from sales and maturities of investment securities ********************************** 20.9 113.1 254.9
Purchases of investment securities ******************************************************** (73.0) (52.9) (73.5)
Investments in subsidiaries *************************************************************** (283.9) (536.4) (1,941.0)
Equity distributions from subsidiaries ******************************************************* 536.5 1,200.0 600.0
Net (increase) decrease in short-term advances to subsidiaries ******************************* 35.5 415.1 190.4
Long-term advances to subsidiaries ******************************************************** — (410.0) (1,144.0)
Principal collected on long-term advances to subsidiaries ************************************ 572.6 1,770.0 2,713.2
Other, net******************************************************************************* 130.7 44.5 34.7
Net cash provided by (used in) investing activities************************************* 939.3 2,543.4 634.7
Financing Activities
Net increase (decrease) in short-term advances from subsidiaries***************************** (117.2) 48.4 (10.6)
Net increase (decrease) in short-term borrowings ******************************************* 318.5 (72.3) 228.9
Principal payments on long-term debt ****************************************************** (1,593.5) (2,537.5) (1,612.8)
Proceeds from issuance of long-term debt ************************************************** 1,150.0 2,075.0 1,100.0
Proceeds from issuance of junior subordinated debentures to subsidiary trusts ***************** — — 1,546.4
Redemption of junior subordinated debentures from subsidiary trusts ************************** (360.8) — —
Proceeds from issuance of common stock ************************************************** 398.4 147.0 136.4
Repurchase of common stock ************************************************************* (326.3) (1,040.4) (467.9)
Cash dividends paid ********************************************************************* (1,556.8) (1,480.7) (1,235.1)
Net cash provided by (used in) financing activities************************************* (2,087.7) (2,860.5) (314.7)
Change in cash and cash equivalents *********************************************** (1,143.3) 2,685.4 1,469.2
Cash and cash equivalents at beginning of year ********************************************* 5,869.0 3,183.6 1,714.4
Cash and cash equivalents at end of year******************************************** $ 4,725.7 $ 5,869.0 $ 3,183.6
Transfer of funds (dividends, loans or advances) from total dividends by a national bank in any calendar year
bank subsidiaries to the Company is restricted. Federal law exceed the bank’s net income for that year combined with
prohibits loans unless they are secured and generally limits its retained net income for the preceding two calendar years
any loan to the Company or individual affiliate to or if the bank’s retained earnings are less than zero.
10 percent of the bank’s equity. In aggregate, loans to the Furthermore, dividends are restricted by the Comptroller of
Company and all affiliates cannot exceed 20 percent of the the Currency’s minimum capital constraints for all national
bank’s equity. banks. Within these guidelines, all bank subsidiaries have
Dividend payments to the Company by its subsidiary the ability to pay dividends without prior regulatory
banks are subject to regulatory review and statutory approval. The amount of dividends available to the parent
limitations and, in some instances, regulatory approval. The company from the bank subsidiaries at December 31, 2003,
approval of the Comptroller of the Currency is required if was approximately $828.5 million.
U.S. Bancorp 103