Annual Report - CoBank

Consolidated Statements of Cash FlowsCoBank, ACB($ in Thousands)Year Ended December 31, 2011 2010 2009Cash Flows Provided by Operating ActivitiesNet Income $ 706,587 $ 613,767 $565,416Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:Provision for Loan Losses 58,000 60,000 80,000Deferred Income Taxes 101,674 27,237 61,409Depreciation and Amortization/Accretion, Net 10,520 3,568 (7,009)Losses on Impairments of Investments Available-for-Sale 10,000 44,000 15,000Net Gain on Sale of Investment Securities (4,451) - (913)Decrease (Increase) in Accrued Interest Receivable 108,873 20,299 (56,566)(Decrease) Increase in Other Assets 20,376 (67,906) (6,419)Decrease in Accrued Interest Payable (96,214) (43,063) (52,226)Increase (Decrease) in Other Liabilities 17,284 (50,495) 15,811Net Gains on Interest Rate Swaps and Other Financial Instruments (9,943) (1,448) (10,002)Proceeds from Termination of Interest Rate Swaps 31,788 - 7,222Other (1,758) (7,896) (405)Net Cash Provided by Operating Activities 952,736 598,063 611,318Cash Flows Provided by (Used in) Investing ActivitiesNet Decrease (Increase) in Loans 3,688,075 (5,871,365) 302,797Investment Securities:Purchases (6,128,705) (14,332,036) (9,875,713)Proceeds from Maturities and Prepayments 5,841,874 13,547,385 9,760,110Proceeds from Sales 41,345 - 3,396Net Cash Provided by (Used in) Investing Activities 3,442,589 (6,656,016) 190,590Cash Flows (Used in) Provided by Financing ActivitiesBonds and Notes Proceeds 35,881,933 40,122,110 21,260,036Bonds and Notes Retired (40,119,400) (32,487,178) (23,530,769)Net Increase (Decrease) in Notes Payable and Other Interest-bearing Liabilities 974,492 (286,222) (497,484)Preferred Stock Exchange Costs - - (2,176)Preferred Stock Dividends Paid (63,799) (63,799) (59,866)Common Stock Issued 5,324 2,465 41,321Common Stock Retired (29,899) (43,980) (7,526)Cash Patronage Distribution Paid (194,720) (185,940) (209,565)Net Cash (Used In) Provided by Financing Activities (3,546,069) 7,057,456 (3,006,029)Net Increase (Decrease) in Cash 849,256 999,503 (2,204,121)Cash at Beginning of Year 1,922,586 923,083 3,127,204Cash at End of Year $ 2,771,842 $ 1,922,586 $923,083Supplemental Noncash Investing and Financing ActivitiesNet Change in Accrued Purchases of Securities $ - $ 6,002 $(6,002)Change in Unrealized Gains/Losses on Investment Securities, Before Taxes 138,817 69,608 170,418Patronage in Common Stock 109,900 90,450 85,067Supplemental Noncash Fair Value Changes Related to Hedging Activities(Increase) Decrease in Interest Rate Swaps and Other Financial Instrument Assets $ (47,264) $ (17,291) $690,679(Decrease) Increase in Bonds and Notes Related to Hedging Activities (10,878) 49,182 (691,663)Increase (Decrease) in Interest Rate Swaps and Other Financial Instrument Liabilities 44,365 (30,799) (17,569)Supplemental Disclosure of Cash Flow InformationInterest Paid $ 815,746 $ 755,518 $886,875Income Taxes Paid 95,225 213,793 85,591The accompanying notes are an integral part of the consolidated financial statements.CoBank 2011 Annual Report66