Consolidated Statement of Cash Flows
Bank of America Corporation and Subsidiaries
| Year Ended December 31 | |||
|---|---|---|---|
| (Dollars in millions) | 2006 | 2005 | 2004 |
| Operating activities | |||
| Net income |
$ |
$ |
$ |
| Reconciliation of net income to net cash provided by (used in) operating activities: | |||
|
Provision for credit losses
|
5,010 | 4,014 | 2,769 |
|
(Gains) losses on sales of debt securities
|
443 | (1,084) | (1,724) |
|
Depreciation and premises improvements amortization
|
1,114 | 959 | 972 |
|
Amortization of intangibles
|
1,755 | 809 | 664 |
|
Deferred income tax expense (benefit)
|
1,850 | 1,695 | (519) |
|
Net increase in trading and derivative instruments
|
(3,870) | (18,911) | (13,944) |
|
Net increase in other assets
|
(17,070) | (104) | (11,928) |
|
Net increase (decrease) in accrued expenses and other liabilities
|
4,517 | (8,205) | 4,594 |
|
Other operating activities, net
|
(373) | (7,861) | 1,647 |
|
Net cash provided by (used in) operating activities
|
14,509 | (12,223) | (3,522) |
| Investing activities | |||
| Net increase in time deposits placed and other short-term investments | (3,053) | (439) | (1,147) |
| Net (increase) decrease in federal funds sold and securities purchased under agreements to resell | 13,020 | (58,425) | (3,880) |
| Proceeds from sales of available-for-sale securities | 53,446 | 134,490 | 117,672 |
| Proceeds from paydowns and maturities of available-for-sale securities | 22,417 | 39,519 | 26,973 |
| Purchases of available-for-sale securities | (40,905) | (204,476) | (243,573) |
| Proceeds from maturities of held-to-maturity securities | 7 | 283 | 153 |
| Proceeds from sales of loans and leases | 37,812 | 14,458 | 4,416 |
| Other changes in loans and leases, net | (145,779) | (71,078) | (32,350) |
| Net purchases of premises and equipment | (748) | (1,228) | (863) |
| Proceeds from sales of foreclosed properties | 93 | 132 | 198 |
| Investment in China Construction Bank | — | (3,000) | — |
| (Acquisition) divestiture of business activities, net | (2,388) | (49) | 4,936 |
| Other investing activities, net | (2,226) | (632) | (89) |
|
Net cash used in investing activities
|
(68,304) | (150,445) | (127,554) |
| Financing activities | |||
| Net increase in deposits | 38,340 | 16,100 | 64,423 |
| Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | (22,454) | 120,914 | 35,752 |
| Net increase in commercial paper and other short-term borrowings | 23,709 | 37,671 | 37,437 |
| Proceeds from issuance of long-term debt | 49,464 | 21,958 | 21,289 |
| Retirement of long-term debt | (17,768) | (15,107) | (16,904) |
| Proceeds from issuance of preferred stock | 2,850 | — | — |
| Redemption of preferred stock | (270) | — | — |
| Proceeds from issuance of common stock | 3,117 | 2,846 | 3,712 |
| Common stock repurchased | (14,359) | (5,765) | (6,286) |
| Cash dividends paid | (9,661) | (7,683) | (6,468) |
| Excess tax benefits of share-based payments | 477 | — | — |
| Other financing activities, net | (312) | (117) | (91) |
|
Net cash provided by financing activities
|
53,133 | 170,817 | 132,864 |
| Effect of exchange rate changes on cash and cash equivalents | 92 | (86) | 64 |
| Net increase (decrease) in cash and cash equivalents | (570) | 8,063 | 1,852 |
| Cash and cash equivalents at January 1 | 36,999 | 28,936 | 27,084 |
|
Cash and cash equivalents at December 31
|
$ |
$ |
$ |
| Supplemental cash flow disclosures | |||
| Cash paid for interest |
$ |
$ |
$ |
| Cash paid for income taxes | 7,210 | 7,049 | 6,088 |
The fair values of noncash assets acquired and liabilities assumed in the MBNA merger were $83.3 billion and $50.4 billion.
Approximately 631 million shares of common stock, valued at approximately $28.9 billion were issued in connection with the MBNA merger.
Net transfers of Loans and Leases to loans held-for-sale (included in Other Assets) from the loan portfolio for Asset and Liability Management purposes amounted to $73 million in 2005.
Net transfers of Loans and Leases from loans held-for-sale to the loan portfolio for Asset and Liability Management purposes amounted to $1.1 billion in 2004.
In 2004, the fair values of noncash assets acquired and liabilities assumed in the merger with FleetBoston were $224.5 billion and $182.9 billion.
In 2004, approximately 1.2 billion shares of common stock, valued at approximately $45.6 billion, were issued in connection with the merger with FleetBoston.
See accompanying Notes to Consolidated Financial Statements.