Consolidated Statement of Cash Flows

 

($ in millions) Year ended December 31,   2005     2004     2003  
Operating activities                  
Net income $ 2,394   $ 2,913   $ 2,793  
Reconciliation of net income to net cash (used in) provided by operating activities:                  
Depreciation and amortization   5,964     5,433     5,340  
Goodwill impairment   712     –     -  
Amortization and valuation adjustments of mortgage servicing rights   782     1,384     1,602  
Provision for credit losses   1,085     1,953     1,721  
Net gains on sales of finance receivables and loans   (1,695 )   (1,312 )   (2,462 )
Net (gains) losses on investment securities   (104 )   (52 )   71  
Capitalized interest income   (23 )   (30 )   (44 )
Net change in:                  
Trading securities   (1,155 )   614     233  
Loans held for sale  (d)   (29,119 )   (2,312 )   (4,124 )
Deferred income taxes   351     (118 )   (463 )
Interest payable   (290 )   311     358  
Other assets   (2,366 )   2,468     (555 )
Other liabilities   49     (2,800 )   (790 )
Other, net   315     1,011     1,040  
Net cash (used in) provided by operating activities   (23,100 )   9,463     4,720  
Investing activities                  
Purchases of available for sale securities   (19,165 )   (12,783 )   (15,529 )
Proceeds from sales of available for sale securities   5,721     3,276     7,615  
Proceeds from maturities of available for sale securities   8,887     7,250     9,413  
Net increase in finance receivables and loans   (96,028 )   (125,183 )   (145,187 )
Proceeds from sales of finance receivables and loans   125,836     108,147     107,505  
Purchases of operating lease assets   (15,496 )   (14,055 )   (10,728 )
Disposals of operating lease assets   5,164     7,668     9,179  
Change in notes receivable from General Motors   1,053     (1,635 )   299  
Purchases of mortgage servicing rights, net   (267 )   (326 )   (513 )
Acquisitions of subsidiaries, net of cash acquired   (2 )   9     (144 )
Other, net   (1,549 )   260     (1,664 )
Net cash provided by (used in) investing activities   14,154     (27,372 )   (39,754 )
Financing activities                  
Net change in short-term debt   (9,970 )   4,123     658  
Proceeds from issuance of long-term debt   77,890     72,753     82,606  
Repayments of long-term debt   (69,520 )   (57,743 )   (38,944 )
Other financing activities   6,168     4,723     1,319  
Dividends paid   (2,500 )   (1,500 )   (1,000 )
Net cash provided by financing activities   2,068     22,356     44,639  
Effect of exchange rate changes on cash and cash equivalents   (45 )   295     268  
Net (decrease) increase in cash and cash equivalents   (6,923 )   4,742     9,873  
Cash and cash equivalents at beginning of year   22,718     17,976     8,103  
Cash and cash equivalents at end of year  (a) $ 15,795   $ 22,718   $ 17,976  
Supplemental disclosures                  
Cash paid for:                  
Interest $ 13,025   $ 8,887   $ 6,965  
Income taxes   1,339     2,003     3,479  
Non-cash items:                  
Finance receivables and loans held for sale  (b)   –     6,849     3,487  
(Decrease) increase in stockholder's equity  (c)   (195 )   119     -  
Loans held for sale transferred to finance receivables and loans   20,084     4,332     4,546  
Finance receivables and loans transferred to loans held for sale   3,904     3,506     932  
Finance receivables and loans transferred to other assets   1,017     388     327  
Transfer of investment securities classified as trading to investment securities classified as available for sale   257     561     7  
Various assets and liabilities acquired through consolidation of variable interest entities   325     –     -  
Increase in other assets and liabilities relating to syndication activities   –     –     259  
(a)  2005 includes $371 of cash and cash equivalents classified as reporting segment held for sale (refer to Note 1 to our Consolidated Financial Statements).
(b)  Represents the consolidation of certain assets related to an accounting change under SFAS 140 in 2004 (refer to Note 1 to our Consolidated Financial Statements) and the adoption of FIN 46 in 2003; there was a corresponding increase in secured debt.
(c)  For 2005 represents the repurchase of operating lease assets and related deferred tax liabilities from GM. For 2004 represents the consolidation of Banco GM under FIN 46R beginning January 1, 2004; in the fourth quarter, we purchased Banco GM (refer to Note 19 to our Consolidated Financial Statements).
(d)  Includes origination of mortgage servicing rights of $1,272, $1,228 and $2,044 for 2005, 2004 and 2003, respectively.
Reference should be made to the Notes to Consolidated Financial Statements in the GMAC Annual Report on Form 10-K for the period ended December 31, 2005, filed separately with the SEC.