American Express 2012 Annual Report Download - page 113

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 26
PARENT COMPANY
Parent Company — Condensed Statements of Income
Years Ended December 31 (Millions) 2012 2011 2010
Revenues
Non-interest revenues
Gain on sale of securities $ 121 $15$—
Other (12) 38
Total non-interest revenues 109 18 8
Interest income 137 142 136
Interest expense (609) (633) (638)
Total revenues net of interest expense (363) (473) (494)
Expenses
Salaries and employee benefits 165 173 153
Other 214 186 117
Total 379 359 270
Pretax loss (742) (832) (764)
Income tax benefit (258) (346) (292)
Net loss before equity in net income of
subsidiaries and affiliates (484) (486) (472)
Equity in net income of subsidiaries and
affiliates 4,966 5,385 4,529
Income from continuing operations 4,482 4,899 4,057
Income from discontinued operations, net
of tax —36 —
Net income $ 4,482 $ 4,935 $ 4,057
Parent Company — Condensed Balance Sheets
As of December 31 (Millions) 2012 2011
Assets
Cash and cash equivalents $ 4,797 $ 6,914
Investment securities 296 360
Equity in net assets of subsidiaries and affiliates of
continuing operations 19,087 17,374
Accounts receivable, less reserves 655 53
Premises and equipment, less accumulated depreciation:
2012, $59; 2011, $44 117 96
Loans to subsidiaries and affiliates 6,733 5,132
Due from subsidiaries and affiliates 1,189 1,363
Other assets 441 769
Total assets $ 33,315 $ 32,061
Liabilities and Shareholders’ Equity
Liabilities
Accounts payable and other liabilities $ 1,474 $ 1,466
Due to subsidiaries and affiliates 1,069 823
Short-term debt of subsidiaries and affiliates 2,316 895
Long-term debt 9,570 10,083
Total liabilities 14,429 13,267
Shareholders’ equity
Common shares 221 232
Additional paid-in capital 12,067 12,217
Retained earnings 7,525 7,221
Accumulated other comprehensive loss (927) (876)
Total shareholders’ equity 18,886 18,794
Total liabilities and shareholders’ equity $ 33,315 $ 32,061
SUPPLEMENTAL DISCLOSURE
The Parent Company guarantees up to $40 million of
indebtedness under a line of credit that its subsidiary has with a
bank. As of December 31, 2012, there were no draw downs
against this line.
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