NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOW Year ended December 31, in millions 2003 2002 2001 OPERATING ACTIVITIES Net income $ 903 $ 976 $ 132 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of intangibles GLYPH<209> GLYPH<209> 20 Net securities (gains) losses 3 16 (28) Deferred income taxes 38 (21) (20) Equity in net income less dividends from subsidiaries (684) 63 353 Net decrease in other assets (84) (113) (69) Net increase in other liabilities 52 244 125 Net decrease in accrued restructuring charges (10) (32) (68) Other operating activities, net 29 11 39 NET CASH PROVIDED BY OPERATING ACTIVITIES 247 1,144 484 INVESTING ACTIVITIES Cash used in acquisition, net of cash acquired GLYPH<209> (66) GLYPH<209> Net (increase) decrease in interest-bearing deposits 407 (352) (507) Purchases of securities available for sale GLYPH<209> (8) (50) Proceeds from prepayments and maturities of securities available for sale 56 25 195 Net increase in loans and advances to subsidiaries (331) (1,648) (136) Decrease in investments in subsidiaries 577 1,604 670 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 709 (445) 172 FINANCING ACTIVITIES Net increase (decrease) in short-term borrowings (46) 66 (1,063) Net proceeds from issuance of long-term debt 662 423 1,142 Payments on long-term debt (815) (637) (230) Loan payment received from ESOP trustee GLYPH<209> GLYPH<209> 13 Purchases of treasury shares (303) (77) (50) Net proceeds from issuance of common stock 59 37 33 Cash dividends paid (513) (511) (501) NET CASH USED IN FINANCING ACTIVITIES (956) (699) (656) NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS GLYPH<209> GLYPH<209> GLYPH<209> CASH AND DUE FROM BANKS AT BEGINNING OF YEAR GLYPH<209> GLYPH<209> GLYPH<209> CASH AND DUE FROM BANKS AT END OF YEAR GLYPH<209> GLYPH<209> GLYPH<209> KeyCorp paid $86 million in interest on borrowed funds in 2003, $113 million in 2002 and $224 million in 2001. 84 PREVIOUS PAGE SEARCH BACK TO CONTENTS NEXT PAGE