Financial Statements
Consolidated Statement of Cash Flows
Year ended December 31, ($ in millions) |
2006 |
||||||||
Operating activities |
|||||||||
Net income |
$ |
2,125 |
$ |
2,282 |
$ |
2,894 |
|||
Reconciliation of net income to net cash (used in) provided by operating activities: |
|||||||||
Depreciation and amortization |
6,459 |
5,964 |
5,433 |
||||||
Goodwill impairment |
840 |
712 |
– |
||||||
Amortization and valuation adjustments of mortgage servicing rights |
843 |
782 |
1,384 |
||||||
Provision for credit losses |
2,000 |
1,074 |
1,953 |
||||||
Net gains on sales of finance receivables and loans |
(1,470 |
) |
(1,741 |
) |
(1,332 |
) |
|||
Net gains on investment securities |
(1,005 |
) |
(104 |
) |
(52 |
) |
|||
Capitalized interest income |
– |
(23 |
) |
(30 |
) |
||||
Net change in: |
|||||||||
Trading securities |
370 |
(1,155 |
) |
614 |
|||||
Loans held for sale(a) |
(19,346 |
) |
(29,119 |
) |
(2,312 |
) |
|||
Deferred income taxes |
(1,346 |
) |
351 |
(118 |
) |
||||
Interest payable |
(470 |
) |
(290 |
) |
311 |
||||
Other assets |
(2,340 |
) |
(2,446 |
) |
2,426 |
||||
Other liabilities |
(1,067 |
) |
45 |
(2,875 |
) |
||||
Other, net |
(287 |
) |
568 |
1,167 |
|||||
Net cash (used in) provided by operating activities |
(14,694 |
) |
(23,100 |
) |
9,463 |
||||
Investing activities |
|||||||||
Purchases of available for sale securities |
(28,184 |
) |
(19,165 |
) |
(12,783 |
) |
|||
Proceeds from sales of available for sale securities |
6,628 |
5,721 |
3,276 |
||||||
Proceeds from maturities of available for sale securities |
23,147 |
8,887 |
7,250 |
||||||
Net increase in finance receivables and loans |
(94,869 |
) |
(96,028 |
) |
(125,183 |
) |
|||
Proceeds from sales of finance receivables and loans |
117,830 |
125,836 |
108,147 |
||||||
Purchases of operating lease assets |
(18,190 |
) |
(15,496 |
) |
(14,055 |
) |
|||
Disposals of operating lease assets |
7,303 |
5,164 |
7,668 |
||||||
Change in notes receivable from GM |
1,660 |
1,053 |
(1,635 |
) |
|||||
Purchases of mortgage servicing rights, net |
(61 |
) |
(267 |
) |
(326 |
) |
|||
Acquisitions of subsidiaries, net of cash acquired |
(340 |
) |
(2 |
) |
9 |
||||
Proceeds from sale of business units, net |
8,537 |
– |
– |
||||||
Settlement of residual support and risk sharing obligations with GM |
1,357 |
– |
– |
||||||
Other, net |
(21 |
) |
(1,549 |
) |
260 |
||||
Net cash provided by (used in) investing activities |
24,797 |
14,154 |
(27,372 |
) |
|||||
Financing activities |
|||||||||
Net change in short-term debt |
2,665 |
(9,970 |
) |
4,123 |
|||||
Proceeds from issuance of long-term debt |
88,180 |
77,890 |
72,753 |
||||||
Repayments of long-term debt |
(100,840 |
) |
(69,520 |
) |
(57,743 |
) |
|||
Other financing activities |
2,259 |
6,168 |
4,723 |
||||||
Dividends paid |
(4,755 |
) |
(2,500 |
) |
(1,500 |
) |
|||
Proceeds from issuance of preferred interests |
1,900 |
– |
– |
||||||
Net cash (used in) provided by financing activities |
(10,591 |
) |
2,068 |
22,356 |
|||||
Effect of exchange rate changes on cash and cash equivalents |
152 |
(45 |
) |
295 |
|||||
Net (decrease) increase in cash and cash equivalents |
(336 |
) |
(6,923 |
) |
4,742 |
||||
Cash and cash equivalents at beginning of year(d) |
15,795 |
22,718 |
17,976 |
||||||
Cash and cash equivalents at end of year(b) |
$ |
15,459 |
$ |
15,795 |
$ |
22,718 |
|||
Supplemental disclosures |
|||||||||
Cash paid for: |
|||||||||
Interest |
$ |
15,889 |
$ |
13,025 |
$ |
8,887 |
|||
Income taxes |
1,087 |
1,339 |
2,003 |
||||||
Non-cash items: |
|||||||||
Finance receivables and loans held for sale(c) |
– |
– |
6,849 |
||||||
(Decrease) increase in equity(d) |
– |
(195 |
) |
119 |
|||||
Loans held for sale transferred to finance receivables and loans |
14,549 |
20,084 |
4,332 |
||||||
Finance receivables and loans transferred to loans held for sale |
3,889 |
3,904 |
3,506 |
||||||
Finance receivables and loans transferred to other assets |
1,771 |
1,017 |
388 |
||||||
Transfer of investment securities classified as trading to investment securities classified as available for sale |
– |
257 |
561 |
||||||
Various assets and liabilities acquired through consolidation of variable interest entities |
– |
325 |
– |
||||||
Available for sale securities transferred to trading securities |
927 |
– |
– |
||||||
Capital contributions from GM relating to GMAC sale(e) |
951 |
– |
– |
||||||
Non cash dividends paid to GM relating to GMAC sale(e) |
4,984 |
– |
– |
||||||
Proceeds from sales and repayments of mortgage loans held for investment originally designated as held for sale |
7,562 |
2,063 |
1,550 |
||||||
(a) Includes origination of mortgage servicing rights of $1,732, $1,272 and $1,228 for 2006, 2005 and 2004, respectively. |
(b) 2005 includes $371 of cash and cash equivalents classified as assets held for sale. Refer to Note 1 to our Consolidated Financial Statements. |
|
(c) Represents the consolidation of certain assets related to an accounting change under SFAS 140 in 2004. |
(d) 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. |
(e) As further described in Note 18 to our Consolidated Financial Statements. |
The Notes to the Consolidated Financial Statements are an integral part of these statements.