NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 30. PARENT COMPANY FINANCIAL STATEMENTS ($ in millions)  Condensed Statements of Income (Parent Company Only)  For the years ended December 31  2010  2009 2008 Income Interest on loans to subsidiaries  $33  39 80 Expenses Interest  188  222 293 Goodwill impairment -  - 57 Other  26  20 24 Total expenses  214  242 374 Loss Before Income Taxes and Change in Undistributed Earnings of Subsidiaries  (181)  (203) (294) Applicable income tax benefit  64  71 84 Loss Before Change in Undistributed  Earnings of Subsidiaries  (117)  (132) (210) Undistributed earnings (loss) of subsidiaries  870  869 (1,903) Net Income (Loss)  $753  737 (2,113) Condensed Balance Sheets (Parent Company Only)  As of December 31  2010 2009 Assets Cash  $60 2 Short-term investments  2,953 2,350 Loans to subsidiaries  1,521 1,360 Investment in subsidiaries  15,622 16,105 Goodwill  80 80 Other assets  545 381 Total Assets $20,781 20,278 Liabilities  Other short-term borrowings  $414 280 Accrued expenses and other liabilities  356 695 Long-term debt  5,960 5,806 Total Liabilities 6,730 6,781 Shareholders’ Equity  14,051 13,497 Total Liabilities and Shareholders’ Equity  $20,781 20,278 ($ in millions)  Condensed Statements of Cash Flows (Parent Company Only)  For the years ended December 31  2010 2009 2008 Operating Activities Net income (loss)  $753 737 (2,113) Adjustments to reconcile net income (loss)  to net cash provided by operating  activities:  Provision (benefit) for deferred income  taxes  (2) 2 11 Goodwill impairment  - - 57 Dividend from subsidiary  1,400 - - Undistributed earnings of subsidiaries  (870) (869) 1,903 Net change in:  Other assets  (6) 83 (85) Accrued expenses and other liabilities  (339) 591 40 Other, net  (11) (6) (5) Net Cash Provided by (Used in) Operating Activities 925 538 (192) Investing Activities Capital contribution to subsidiaries  - (1,600) (2,000) Net cash paid in business combinations  - - (328) Net change in:  Other short-term investments  (603) 1,158 (2,423) Loans to subsidiaries  (161) (117) (42) Net Cash Used in Investing Activities (764) (559) (4,793) Financing Activities Net change in other short-term borrowings  134 (503) 763 Proceeds from issuance of long-term debt  - - 2,126 Repayment of long-term debt  (31) (1,714) Dividends paid on common shares  (32) (27) (639) Dividends paid on preferred shares  (205) (220) (48) Issuance of preferred shares, series F, G  - - 4,480 Issuance of common shares  987 - Exercise of stock-based awards  - - 4 Exchange of preferred shares, Series G  (269) - Dividends on exchange of preferred shares,  Series G  - 35 - Retirement of preferred shares, series D, E  - (9) Dividends on redemption of preferred  shares, series D, E  - - (19) Other, net  (10) (13) Net Cash (Used in) Provided by  Financing Activities (103) (38) 4,931 Net Increase (Decrease) in Cash  58 (59) (54) Cash at Beginning of Year 2 61 115 Cash at End of Year $60 2 61 Fifth Third Bancorp 125