American Express 2008 Annual Report Download - page 119

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notes to consolidated financial statements
american express company
117
Parent Company – Condensed Statements of Cash Flows
Years Ended December 31
(Millions) 2008 2007 2006
Cash Flows from Operating Activities
Net income $ 2,699 $ 4,012 $ 3,707
Adjustments to reconcile net income to cash
provided by operating activities:
Equity in net (income) loss of subsidiaries and affiliates:
– Continuing operations (3,113) (4,350) (3,818)
– Discontinued operations 172 114 (82)
Dividends received from subsidiaries and affiliates 2,340 3,708 3,479
Loan to affiliate in discontinued operations (238) — —
Other operating activities, primarily with subsidiaries (1,915) (242) (255)
Net cash (used by) provided by operating activities (55) 3,242 3,031
Cash Flows from Investing Activities
Purchase of investments —— (20)
Premises and equipment (14) (10) (10)
Acquisition —— (200)
Investments in subsidiaries and affiliates (58) (550) —
Net cash used in investing activities (72) (560) (230)
Cash Flows from Financing Activities
Issuance of debt 3,000 1,500 1,750
Principal payment of debt (1,995) (750) (1,000)
Issuance of American Express common shares 176 852 1,203
Repurchase of American Express common shares (218) (3,572) (4,093)
Dividends paid (836) (712) (661)
Net cash provided by (used in) financing activities 127 (2,682) (2,801)
Net change in cash and cash equivalents —— —
Cash and cash equivalents at beginning of year 33 3
Cash and cash equivalents at end of year $ 3 $ 3 $ 3
supplemental disclosures
Cash paid for interest (net of amounts capitalized) in 2008, 2007, and 2006 was $509 million, $319 million, and $190 million,
respectively. Net cash received for income taxes in 2008, 2007, and 2006 was $21 million, $75 million, and $216 million,
respectively.
The Parent Company guarantees up to $102 million of indebtedness under lines of credit that subsidiaries have with various
banks. As of December 31, 2008, $30 million in lines of credit have been drawn down.