American Express 2003 Annual Report Download - page 78

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(p.76_axp_ consolidated financial statements)
Consolidated Statements of Cash Flows
AMERICAN EXPRESS COMPANY
Years Ended December 31, (Millions) 2003 2002 2001
Cash Flows from Operating Activities
Net income $2,987 $2,671 $ 1,311
Adjustments to reconcile net income
to net cash provided by operating activities:
Provisions for losses and benefits 2,451 2,814 2,955
Depreciation and amortization 676 549 617
Deferred taxes, acquisition costs and other 120 184 70
Non-cash portion of restructuring charges (2) (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 (692) 484 455
Other assets (693) (255) 293
Accounts payable and other liabilities (2,774) 1,365 (1,456)
Increase (decrease) in Travelers Cheques outstanding 187 431 (89)
Increase in insurance reserves 265 271 240
Cumulative effect of accounting change, net of tax (Note 1) 13 ——
Net cash provided by operating activities 2,538 8,500 4,996
Cash Flows from Investing Activities
Sale of investments 14,743 13,155 11,049
Maturity and redemption of investments 11,877 6,410 6,182
Purchase of investments (30,174) (24,961) (19,912)
Net increase in cardmember loans/receivables (7,021) (7,793) (3,147)
Cardmember receivables sold to trust —1,750 750
Cardmember receivables redeemed from trust (2,085) —(600)
Cardmember loans sold to trust 3,442 4,589 4,315
Cardmember loans redeemed from trust (1,000) (2,000) (1,000)
Loan operations and principal collections, net (883) (115) 592
Purchase of land, buildings and equipment (1,021) (670) (859)
Sale of land, buildings and equipment 80 125 22
Acquisitions, net of cash acquired (749) (58) (165)
Net cash used in investing activities (12,791) (9,568) (2,773)
Cash Flows from Financing Activities
Net increase in customers’ deposits 2,381 3,246 988
Sale of annuities and investment certificates 12,109 10,124 5,834
Redemption of annuities and investment certificates (8,645) (5,782) (4,761)
Net decrease in debt with maturities of three months or less (712) (7,201) (4,220)
Issuance of debt 19,220 19,392 15,083
Principal payments on debt (16,498)(14,167) (15,318)
Redemption of preferred beneficial interests securities (500) ——
Issuance of American Express common shares 348 161 84
Repurchase of American Express common shares (1,391) (1,153) (626)
Dividends paid (471) (430) (424)
Net cash provided by (used in) financing activities 5,841 4,190 (3,360)
Effect of exchange rate changes on cash (150) (56) (128)
Net (decrease) increase in cash and cash equivalents (4,562) 3,066 (1,265)
Cash and cash equivalents at beginning of year 10,288 7,222 8,487
Cash and cash equivalents at end of year $5,726 $10,288 $ 7,222
See Notes to Consolidated Financial Statements.