American Express 2010 Annual Report Download - page 119

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NOTE 26
PARENT COMPANY
Parent Company — Condensed Statements of Income
Years Ended December 31 (Millions) 2010 2009 2008
Revenues
Non-interest revenues
Gain on sale of securities $— $ 211 $ —
Other 846
Total non-interest revenues 8215 6
Interest income 136 142 286
Interest expense (638) (562) (462)
Total revenues net of interest
expense (494) (205) (170)
Expenses
Salaries and employee benefits 153 111 129
Other 117 161 119
Total 270 272 248
Pretax loss (764) (477) (418)
Income tax benefit (292) (164) (176)
Net loss before equity in net income
of subsidiaries and affiliates (472) (313) (242)
Equity in net income of subsidiaries
and affiliates 4,529 2,450 3,113
Income from continuing operations 4,057 2,137 2,871
Loss from discontinued operations,
net of tax —(7) (172)
Net income $ 4,057 $ 2,130 $ 2,699
Parent Company — Condensed Balance Sheets
As of December 31 (Millions) 2010 2009
Assets
Cash and cash equivalents $ 5,267 $ 5,679
Investment securities 475 530
Equity in net assets of subsidiaries and affiliates
of continuing operations 15,603 14,677
Accounts receivable, less reserves 831 523
Premises and equipment — at cost, less
accumulated depreciation: 2010, $41; 2009, $34 73 52
Loans to affiliates 4,942 3,879
Due from subsidiaries 1,196 402
Other assets 458 389
Total assets $ 28,845 $ 26,131
Liabilities and Shareholders’ Equity
Liabilities
Accounts payable and other liabilities $ 1,366 $ 1,398
Due to affiliates 911 69
Long-term affiliate debt —15
Long-term debt 10,338 10,243
Total liabilities 12,615 11,725
Shareholders’ equity
Common shares 238 237
Additional paid-in capital 11,937 11,144
Retained earnings 4,972 3,737
Accumulated other comprehensive loss (917) (712)
Total shareholders’ equity 16,230 14,406
Total liabilities and shareholders’ equity $ 28,845 $ 26,131
SUPPLEMENTAL DISCLOSURE
The Parent Company guarantees up to $107 million of
indebtedness under lines of credit that subsidiaries have with
various banks. As of December 31, 2010, there were no draw
downs against these lines.
117
AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS