American Express 2006 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2006 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 116

  • 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

[ 72 ]
consolidated statements of cash flows
american express company
Years Ended December 31, (Millions) 2006 2005 2004
Cash Flows from Operating Activities
Net income $ 3,707 $ 3,734 $ 3,445
Loss (Income) from discontinued operations, net of tax 22 (513) (830)
Add: Cumulative effect of accounting change related to discontinued operations, net of tax ——71
Income from continuing operations 3,729 3,221 2,686
Adjustments to reconcile income from continuing operations to net cash provided by operating
activities:
Provisions for losses and benefits 3,102 2,816 2,399
Depreciation and amortization 645 602 600
Deferred taxes, acquisition costs and other (524) (226) 934
Stock-based compensation 298 256 183
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable and accrued interest (309) (623) (716)
Other operating assets (483) 526 302
Accounts payable and other liabilities 2,520 1,243 854
Increase (decrease) in Travelers Cheques outstanding 35 (111) 468
Net cash (used in) provided by operating activities attributable to discontinued operations (8) 341 1,433
Net cash provided by operating activities 9,005 8,045 9,143
Cash Flows from Investing Activities
Sale of investments 5,964 3,795 4,884
Maturity and redemption of investments 13,224 7,545 3,348
Purchase of investments (18,457) (11,824) (10,623)
Net increase in cardmember loans/receivables (15,096) (13,012) (8,706)
Proceeds from cardmember loan securitizations 3,491 5,386 3,888
Maturities of cardmember loan securitizations (4,435) (4,463) (3,000)
Loan operations and principal collections for international banking, net (134) (399) (489)
Purchase of land, buildings and equipment (861) (608) (616)
Sale of land, buildings and equipment 95 248 252
Dispositions (acquisitions), net of cash sold/acquired 993 (136) 1,347
Cash spun-off to Ameriprise —(3,678) —
Net cash used in investing activities attributable to discontinued operations (1) (113) (1,895)
Net cash used in investing activities (15,217) (17,259) (11,610)
Cash Flows from Financing Activities
Net change in customers’ deposits (338) 5,331 (488)
Sale of investment certificates 4,670 5,728 4,579
Redemption of investment certificates (5,554) (4,296) (3,561)
Net decrease in debt with maturities of three months or less (3,017) (339) (3,453)
Issuance of debt 29,545 14,389 19,791
Principal payments on debt (14,978) (14,426) (9,449)
Issuance of American Express common shares and other 1,203 1,129 1,055
Repurchase of American Express common shares (4,093) (1,853) (3,578)
Dividends paid (661) (597) (535)
Net cash provided by financing activities attributable to discontinued operations 11,377 1,815
Net cash provided by financing activities 6,778 6,443 6,176
Effect of exchange rate changes on cash 264 (10) 42
Net increase (decrease) in cash and cash equivalents 830 (2,781) 3,751
Cash and cash equivalents at beginning of year includes cash of discontinued
operations: 2005, $2,099; 2004, $2,189 7,126 9,907 6,156
Cash and cash equivalents at end of year includes cash of discontinued
operations: 2004, $2,099 $ 7,956 $ 7,126 $ 9,907
See Notes to Consolidated Financial Statements.