American Express 1998 Annual Report Download - page 36

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34
Years Ended December 31, (millions) 1998 1997 1996
Cash Flows from Operating Activities
Net income $ 2,141 $ 1,991 $ 1,901
Adjustments to reconcile net income
to net cash provided by operating activities:
Provisions for losses and benefits 2,491 2,307 2,009
Depreciation, amortization, deferred taxes and other (212) 187 266
Changes in operating assets and liabilities, net of effects of
acquisitions and dispositions:
Accounts receivable and accrued interest (665) (227) 290
Other assets 92 334 567
Accounts payable and other liabilities 131 517 (297)
Increase (decrease) in Travelers Cheques outstanding 253 (111) 141
Increase in insurance reserves 182 172 224
FDC gain —— (162)
Net cash provided by operating activities 4,413 5,170 4,939
Cash Flows from Investing Activities
Sale of investments 1,656 1,778 4,634
Maturity and redemption of investments 7,331 4,827 6,573
Purchase of investments (10,176) (7,898) (10,896)
Net increase in Cardmember receivables (1,510) (2,575) (2,770)
Cardmember loans/receivables sold to Trust, net 1,683 516 2,242
Proceeds from repayment of loans 24,791 25,591 22,696
Issuance of loans (27,587) (29,304) (27,277)
Purchase of land, buildings and equipment (391) (343) (438)
Sale of land, buildings and equipment 26 164 238
(Acquisitions) dispositions, net of cash acquired/sold (471) 23 (4)
Net cash used by investing activities (4,648) (7,221) (5,002)
Cash Flows from Financing Activities
Net increase (decrease) in customers’ deposits 1,039 733 (133)
Sale of annuities and investment certificates 5,337 5,888 5,411
Redemption of annuities and investment certificates (5,690) (4,965) (5,508)
Net increase in debt with maturities of 3 months or less 1,239 3,823 4,885
Issuance of debt 7,373 11,439 13,578
Principal payments on debt (7,426) (11,604) (17,384)
Issuance of Trust preferred securities 500 ——
Issuance of American Express common shares 137 168 176
Repurchase of American Express common shares (1,890) (1,259) (1,041)
Dividends paid (414) (423) (436)
Net cash provided (used) by financing activities 205 3,800 (452)
Effect of exchange rate changes on cash (57) (247) (8)
Net (decrease) increase in cash and cash equivalents (87) 1,502 (523)
Cash and cash equivalents at beginning of year 4,179 2,677 3,200
Cash and cash equivalents at end of year $ 4,092 $ 4,179 $ 2,677
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
AMERICAN EXPRESS COMPANY