American Express 2004 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2004 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

Consolidated Statements of Cash Flows
AMERICAN EXPRESS COMPANY
Years Ended December 31, (Millions) 2004 2003 2002
Cash Flows from Operating Activities
Net income $ 3,445 $ 2,987 $ 2,671
Adjustments to reconcile net income to net cash provided by
operating activities:
Provisions for losses and benefits 2,399 2,451 2,814
Depreciation and amortization 758 676 549
Deferred taxes, acquisition costs and other 574 118 170
Stock-based compensation 217 122 40
Changes in operating assets and liabilities, net of
effects of acquisitions and dispositions:
Accounts receivable and accrued interest (1,023) (692) 484
Other operating assets 778 (815) (295)
Accounts payable and other liabilities 1,159 (2,774) 1,365
Increase in Travelers Cheques outstanding 468 187 431
Increase in insurance reserves 297 265 271
Cumulative effect of accounting change, net of tax (Note 1) 71 13 —
Net cash provided by operating activities 9,143 2,538 8,500
Cash Flows from Investing Activities
Sale of investments 7,086 14,743 13,155
Maturity and redemption of investments 7,111 12,307 6,410
Purchase of investments (18,365) (30,174) (24,961)
Net increase in cardmember loans/receivables (7,656) (7,021) (7,793)
Cardmember receivables sold to trust —— 1,750
Cardmember receivables redeemed from trust (1,050) (2,085) —
Cardmember loans sold to trust 3,888 3,442 4,589
Cardmember loans redeemed from trust (3,000) (1,000) (2,000)
Loan operations and principal collections, net (486) (883) (115)
Purchase of land, buildings and equipment (740) (1,021) (670)
Sale of land, buildings and equipment 255 80 125
Dispositions (acquisitions), net of cash sold/acquired 1,347 (749) (58)
Net cash used in investing activities (11,610) (12,361) (9,568)
Cash Flows from Financing Activities
Net (decrease) increase in customers’ deposits (468) 2,381 3,246
Sale of annuities and investment certificates 11,482 12,109 10,124
Redemption of annuities and investment certificates (8,874) (8,645) (5,782)
Net decrease in debt with maturities of three months or less (3,453) (712) (7,201)
Issuance of debt 20,074 19,220 19,392
Principal payments on debt (9,527) (16,498) (14,167)
Redemption of preferred beneficial interests securities —(500) —
Issuance of American Express common shares 1,055 348 161
Repurchase of American Express common shares (3,578) (1,391) (1,153)
Dividends paid (535) (471) (430)
Net cash provided by financing activities 6,176 5,841 4,190
Effect of exchange rate changes on cash 42 (150) (56)
Net increase (decrease) in cash and cash equivalents 3,751 (4,132) 3,066
Cash and cash equivalents at beginning of year 6,156 10,288 7,222
Cash and cash equivalents at end of year $ 9,907 $ 6,156 $ 10,288
See Notes to Consolidated Financial Statements.
AXP
AR.04
80
Consolidated Statements of Cash Flows