American Express 2008 Annual Report Download - page 69

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consolidated statements of cash flows
american express company
67
Years Ended December 31, (Millions) 2008 2007 2006
Cash Flows from Operating Activities
Net income $ 2,699 $ 4,012 $ 3,707
Loss (Income) from discontinued operations, net of tax 172 114 (82)
Income from continuing operations 2,871 4,126 3,625
Adjustments to reconcile income from continuing operations to net cash provided by
operating activities
Provisions for losses 6,290 4,527 3,021
Depreciation and amortization 712 648 608
Deferred taxes, acquisition costs and other 442 (851) (378)
Stock-based compensation 229 276 275
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other receivables 101 (927) (295)
Other assets (2,223) (170) (491)
Accounts payable and other liabilities 885 1,013 2,608
Travelers Cheques outstanding (770) (22) 47
Net cash provided by (used in) operating activities attributable to discontinued operations 129 (129) 92
Net cash provided by operating activities 8,666 8,491 9,112
Cash Flows from Investing Activities
Sale of investments 4,657 3,034 5,394
Maturity and redemption of investments 9,620 6,154 9,348
Purchase of investments (14,724) (9,592) (14,596)
Net decrease (increase) in cardmember loans/receivables 5,448 (20,801) (15,096)
Proceeds from cardmember loan securitizations 9,619 7,825 3,491
Maturities of cardmember loan securitizations (4,670) (3,500) (4,435)
Purchase of premises and equipment (977) (938) (832)
Sale of premises and equipment 27 55 78
(Acquisitions) dispositions, net of cash acquired/sold (4,589) (124) 779
Net cash provided by investing activities attributable to discontinued operations 2,625 786 557
Net cash provided by (used in) investing activities 7,036 (17,101) (15,312)
Cash Flows from Financing Activities
Net change in customer deposits 358 3,361 (1,876)
Net (decrease) increase in short-term borrowings (8,693) 2,682 119
Issuance of long-term debt 19,213 20,833 19,180
Principal payments on long-term debt (13,787) (9,214) (7,755)
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 (used in) provided by financing activities attributable to discontinued operations (6,653) 1,236 461
Net cash (used in) provided by financing activities (10,440) 15,466 6,578
Effect of exchange rate changes on cash 20 166 264
Net increase in cash and cash equivalents 5,282 7,022 642
Cash and cash equivalents at beginning of year includes cash of discontinued
operations: 2008, $6,390; 2007, $4,445; 2006, $3,332 15,268 8,246 7,604
Cash and cash equivalents at end of year includes cash of discontinued
operations: 2008, $3; 2007, $6,390; 2006, $4,445 $ 20,550 $ 15,268 $ 8,246
See Notes to Consolidated Financial Statements.