American Express 2011 Annual Report Download - page 59

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AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31 (Millions) 2011 2010 2009
Cash Flows from Operating Activities
Net income $ 4,935 $ 4,057 $ 2,130
(Income) loss from discontinued operations, net of tax (36) –7
Income from continuing operations 4,899 4,057 2,137
Adjustments to reconcile income from continuing operations to net cash provided by operating activities
Provisions for losses 1,112 2,207 5,313
Depreciation and amortization 918 917 1,070
Deferred taxes and other 818 1,135 (1,429)
Stock-based compensation 301 287 230
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other receivables 663 (498) (730)
Other assets (635) (590) 526
Accounts payable and other liabilities 2,893 1,737 (98)
Travelers Cheques outstanding (494) (317) (449)
Net cash used in operating activities attributable to discontinued operations –– (233)
Net cash provided by operating activities 10,475 8,935 6,337
Cash Flows from Investing Activities
Sale of investments 1,176 2,196 2,930
Maturity and redemption of investments 6,074 12,066 2,900
Purchase of investments (1,158) (7,804) (13,719)
Net (increase) decrease in cardmember loans/receivables (8,358) (6,389) 6,154
Proceeds from cardmember loan securitizations –– 2,244
Maturities of cardmember loan securitizations –– (4,800)
Purchase of premises and equipment, net of sales: 2011, $16; 2010, $9; 2009, $50 (1,189) (878) (722)
Acquisitions/Dispositions, net of cash acquired (610) (400) –
Net decrease (increase) in restricted cash 3,574 (20) (1,935)
Net cash provided by investing activities attributable to discontinued operations –– 196
Net cash used in investing activities (491) (1,229) (6,752)
Cash Flows from Financing Activities
Net increase in customer deposits 8,232 3,406 11,037
Net (decrease) increase in short-term borrowings (2) 1,056 (6,574)
Issuance of long-term debt 13,982 5,918 6,697
Principal payments on long-term debt (21,029) (17,670) (15,197)
Issuance of American Express Series A preferred shares and warrants –– 3,389
Issuance of American Express common shares 594 663 614
Repurchase of American Express Series A preferred shares –– (3,389)
Repurchase of American Express stock warrants –– (340)
Repurchase of American Express common shares (2,300) (590) –
Dividends paid (861) (867) (924)
Net cash provided by financing activities attributable to discontinued operations ––40
Net cash used in financing activities (1,384) (8,084) (4,647)
Effect of exchange rate changes on cash (63) 135 7
Net increase (decrease) in cash and cash equivalents 8,537 (243) (5,055)
Cash and cash equivalents at beginning of year includes cash of discontinued operations: 2011, $—; 2010, $—; 2009, $3 16,356 16,599 21,654
Cash and cash equivalents at end of year $ 24,893 $ 16,356 $ 16,599
See Notes to Consolidated Financial Statements.
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