American Express 2002 Annual Report Download - page 58

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I56 AXP ICONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF CASH FLOWS
American Express Company
Years Ended December 31, (Millions) 2002 2001 2000
Cash Flows from Operating Activities
Net income $ 2,671 $ 1,311 $ 2,810
Adjustments to reconcile net income
to net cash provided by operating activities:
Provisions for losses and benefits 2,988 3,283 2,697
Depreciation, amortization, deferred taxes and other 951 1,049 393
Non-cash portion of restructuring charges (7) 580 —
Non-cash portion of disaster recovery charge (7) 20 —
Changes in operating assets and liabilities, net of
effects of acquisitions and dispositions:
Accounts receivable and accrued interest 484 455 (1,623)
Other assets (473) (69) (426)
Accounts payable and other liabilities 1,365 (1,456) 2,377
Increase (decrease) in Travelers Cheques outstanding 431 (89) (82)
Increase in insurance reserves 271 240 207
Net cash provided by operating activities 8,674 5,324 6,353
Cash Flows from Investing Activities
Sale of investments 13,155 11,049 3,117
Maturity and redemption of investments 6,410 6,182 5,295
Purchase of investments (24,961) (19,912) (9,121)
Net increase in cardmember loans/receivables (7,793) (3,147) (10,661)
Cardmember loans/receivables sold to trust, net 4,339 3,465 3,338
Loan operations and principal collections, net (115) 592 (299)
Purchase of land, buildings and equipment (670) (859) (919)
Sale of land, buildings and equipment 125 22 35
(Acquisitions) dispositions, net of cash acquired/sold (58) (165) 212
Net cash used in investing activities (9,568) (2,773) (9,003)
Cash Flows from Financing Activities
Net increase in customers’ deposits 3,246 988 954
Sale of annuities and investment certificates 9,950 5,506 5,588
Redemption of annuities and investment certificates (5,782) (4,761) (5,641)
Net (decrease) increase in debt with maturities of three months or less (7,201) (4,220) 7,117
Issuance of debt 19,392 15,083 12,559
Principal payments on debt (14,167) (15,318) (15,362)
Issuance of American Express common shares 161 84 226
Repurchase of American Express common shares (1,153) (626) (1,377)
Dividends paid (430) (424) (421)
Net cash provided by (used in) financing activities 4,016 (3,688) 3,643
Effect of exchange rate changes on cash (56) (128) 23
Net increase (decrease) in cash and cash equivalents 3,066 (1,265) 1,016
Cash and cash equivalents at beginning of year 7,222 8,487 7,471
Cash and cash equivalents at end of year $ 10,288 $ 7,222 $ 8,487
See Notes to Consolidated Financial Statements.