American Express 2007 Annual Report Download - page 72

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CONSOLIDATED STATEMENTS OF CASH FLOWS
AMERICAN EXPRESS COMPANY
Years Ended December 31, (Millions) 2007 2006 2005
Cash Flows from Operating Activities
Net income $ 4,012 $ 3,707 $ 3,734
Loss (Income) from discontinued operations, net of tax 36 (96) (672)
Income from continuing operations 4,048 3,611 3,062
Adjustments to reconcile income from continuing operations to net cash provided by operating
activities
Provisions for losses and benefits 4,527 3,021 2,771
Depreciation and amortization 648 608 567
Deferred taxes, acquisition costs and other (738) (378) (266)
Stock-based compensation 276 275 232
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable (912) (296) (682)
Other operating assets (139) (511) 533
Accounts payable and other liabilities 1,005 2,507 1,190
(Decrease) increase in Travelers Cheques outstanding (22) 47 (79)
Net cash (used in) provided by operating activities attributable to discontinued operations (209) 121 717
Net cash provided by operating activities 8,484 9,005 8,045
Cash Flows from Investing Activities
Sale of investments 4,901 5,416 3,374
Maturity and redemption of investments 7,100 11,067 6,479
Purchase of investments (10,332) (15,850) (10,539)
Net increase in cardmember loans/receivables (18,903) (15,096) (13,012)
Proceeds from cardmember loan securitizations 5,909 3,491 5,386
Maturities of cardmember loan securitizations (3,500) (4,435) (4,463)
Loan operations and principal collections, net 25 107 100
Purchase of land, buildings and equipment (938) (832) (584)
Sale of land, buildings and equipment 55 78 239
(Acquisitions) dispositions, net of cash sold/acquired (124) 779 (136)
Cash spun-off to Ameriprise —— (3,678)
Net cash (used in) provided by investing activities attributable to discontinued operations (1,287) 70 (427)
Net cash used in investing activities (17,094) (15,205) (17,261)
Cash Flows from Financing Activities
Net change in customers’ deposits 3,361 (1,876) 4,309
Sale of investment certificates 3,427 4,670 5,728
Redemption of investment certificates (4,219) (5,554) (4,296)
Net increase (decrease) in debt with maturities of three months or less 5,338 (3,054) (345)
Issuance of debt 27,353 29,339 14,195
Principal payments on debt (18,390) (14,741) (14,280)
Issuance of American Express common shares and other 852 1,203 1,129
Repurchase of American Express common shares (3,572) (4,093) (1,853)
Dividends paid (712) (661) (597)
Net cash provided by financing activities attributable to discontinued operations 2,028 1,345 2,473
Net cash provided by financing activities 15,466 6,578 6,463
Effect of exchange rate changes on cash 166 264 (10)
Net increase (decrease) in cash and cash equivalents 7,022 642 (2,763)
Cash and cash equivalents at beginning of year includes cash of discontinued
operations: 2007, $2,940; 2006, $1,464; 2005, $2,728 8,246 7,604 10,367
Cash and cash equivalents at end of year includes cash of discontinued
operations: 2007, $3,531; 2006, $2,940; 2005, $1,464 $ 15,268 $ 8,246 $ 7,604
See Notes to Consolidated Financial Statements.
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