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AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31 (Millions) 2010 2009 2008
Cash Flows from Operating Activities
Net income $ 4,057 $ 2,130 $ 2,699
Loss from discontinued operations, net of tax —7 172
Income from continuing operations 4,057 2,137 2,871
Adjustments to reconcile income from continuing operations to net cash provided by operating activities
Provisions for losses 2,207 5,313 5,798
Depreciation and amortization 917 1,070 712
Deferred taxes, acquisition costs and other 1,135 (1,429) 442
Stock-based compensation 287 230 256
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other receivables (498) (730) 101
Other assets (590) 526 (2,256)
Accounts payable and other liabilities 2,090 (98) 490
Travelers Cheques outstanding (317) (449) (770)
Net cash (used in) provided by operating activities attributable to discontinued operations —(233) 129
Net cash provided by operating activities 9,288 6,337 7,773
Cash Flows from Investing Activities
Sale of investments 2,196 2,930 4,657
Maturity and redemption of investments 12,066 2,900 9,620
Purchase of investments (7,804) (13,719) (14,724)
Net (increase) decrease in cardmember loans/receivables (6,389) 6,154 5,940
Proceeds from cardmember loan securitizations —2,244 9,619
Maturities of cardmember loan securitizations —(4,800) (4,670)
Purchase of premises and equipment (887) (772) (977)
Sale of premises and equipment 950 27
Acquisitions/Dispositions, net of cash acquired (400) — (4,589)
Net (increase) decrease in restricted cash (20) (1,935) 33
Net cash provided by investing activities attributable to discontinued operations —196 2,625
Net cash (used in) provided by investing activities (1,229) (6,752) 7,561
Cash Flows from Financing Activities
Net increase in customer deposits 3,406 11,037 358
Net increase (decrease) in short-term borrowings 1,056 (6,574) (8,693)
Issuance of long-term debt 5,918 6,697 19,213
Principal payments on long-term debt (17,670) (15,197) (13,787)
Issuance of American Express Series A preferred shares and warrants —3,389 —
Issuance of American Express common shares 663 614 176
Repurchase of American Express Series A preferred shares —(3,389) —
Repurchase of American Express stock warrants —(340) —
Repurchase of American Express common shares (590) — (218)
Dividends paid (867) (924) (836)
Net cash provided by (used in) financing activities attributable to discontinued operations —40 (6,653)
Net cash used in financing activities (8,084) (4,647) (10,440)
Effect of exchange rate changes on cash 135 720
Net increase (decrease) in cash and cash equivalents 110 (5,055) 4,914
Cash and cash equivalents at beginning of year includes cash of discontinued operations: 2010, $0;
2009, $3; 2008, $6,390 16,599 21,654 16,740
Cash and cash equivalents at end of year includes cash of discontinued operations: 2010, $0; 2009, $0;
2008, $3 $ 16,709 $ 16,599 $ 21,654
See Notes to Consolidated Financial Statements.
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