US Bank 2006 Annual Report Download - page 104

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CONDENSED STATEMENT OF CASH FLOWS
Year Ended December 31 (Dollars in Millions) 2006 2005 2004
OPERATING ACTIVITIES
Net income *********************************************************************************** $ 4,751 $ 4,489 $ 4,167
Adjustments to reconcile net income to net cash provided by operating activities
(Equity) deficiency in undistributed income of subsidiaries ****************************************** (650) (2,014) 779
Other, net ********************************************************************************* (77) 128 43
Net cash provided by operating activities ***************************************************** 4,024 2,603 4,989
INVESTING ACTIVITIES
Proceeds from sales and maturities of investment securities ******************************************** 11 13 76
Purchases of investment securities **************************************************************** (154) – (76)
Investments in subsidiaries*********************************************************************** (7) (43) –
Equity distributions from subsidiaries ************************************************************** 107 39 1,916
Net (increase) decrease in short-term advances to subsidiaries ****************************************** (486) (5) 11
Long-term advances to subsidiaries **************************************************************** (1,000) – –
Other, net************************************************************************************* (18) (18) (12)
Net cash provided by (used in) investing activities********************************************** (1,547) (14) 1,915
FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings***************************************************** 273 99 (16)
Proceeds from issuance of long-term debt ********************************************************** 6,550 5,979 –
Principal payments or redemption of long-term debt ************************************************** (5,947) (1,862) (909)
Proceeds from issuance of preferred stock ********************************************************** 948––
Proceeds from issuance of common stock ********************************************************** 910 371 581
Repurchase of common stock ******************************************************************** (2,798) (1,855) (2,660)
Cash dividends paid on preferred stock ************************************************************* (33) – –
Cash dividends paid on common stock ************************************************************* (2,359) (2,245) (1,820)
Net cash provided by (used in) financing activities ********************************************* (2,456) 487 (4,824)
Change in cash and cash equivalents ******************************************************** 21 3,076 2,080
Cash and cash equivalents at beginning of year ****************************************************** 9,882 6,806 4,726
Cash and cash equivalents at end of year***************************************************** $ 9,903 $ 9,882 $ 6,806
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
requires loans to the Company or its affiliates to be secured its retained net income for the preceding two calendar years
and generally limits loans to the Company or an individual or if the bank’s retained earnings are less than zero.
affiliate to 10 percent of each bank’s unimpaired capital and Furthermore, dividends are restricted by the Comptroller of
surplus. In aggregate, loans to the Company and all the Currency’s minimum capital constraints for all national
affiliates cannot exceed 20 percent of each bank’s banks. Within these guidelines, all bank subsidiaries have
unimpaired capital and surplus. the ability to pay dividends without prior regulatory
Dividend payments to the Company by its subsidiary approval. The amount of dividends available to the parent
banks are subject to regulatory review and statutory company from the bank subsidiaries at December 31, 2006,
limitations and, in some instances, regulatory approval. The was approximately $1.1 billion.
approval of the Comptroller of the Currency is required if
102 U.S. BANCORP