American Express 2012 Annual Report Download - page 65

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AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31 (Millions) 2012 2011 2010
Cash Flows from Operating Activities
Net income $ 4,482 $ 4,935 $ 4,057
Income from discontinued operations, net of tax —(36) —
Income from continuing operations 4,482 4,899 4,057
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Provisions for losses 1,990 1,112 2,207
Depreciation and amortization 991 918 917
Deferred taxes and other 218 818 1,135
Stock-based compensation 297 301 287
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other receivables 153 663 (498)
Other assets 390 (635) (590)
Accounts payable and other liabilities (358) 2,186 1,531
Travelers Cheques and other prepaid products (540) (494) (317)
Premium paid on debt exchange (541) ——
Net cash provided by operating activities 7,082 9,768 8,729
Cash Flows from Investing Activities
Sale of investments 525 1,176 2,196
Maturity and redemption of investments 1,562 6,074 12,066
Purchase of investments (473) (1,158) (7,804)
Net increase in cardmember loans/receivables (6,671) (8,358) (6,389)
Purchase of premises and equipment, net of sales: 2012, $3; 2011, $16; 2010, $9 (1,053) (1,189) (878)
Acquisitions/dispositions, net of cash acquired/sold (466) (610) (400)
Net decrease (increase) in restricted cash 31 3,574 (20)
Net cash used in investing activities (6,545) (491) (1,229)
Cash Flows from Financing Activities
Net increase in customer deposits 2,300 8,232 3,406
Net (decrease) increase in short-term borrowings (1,015) 705 1,262
Issuance of long-term debt 13,934 13,982 5,918
Principal payments on long-term debt (14,076) (21,029) (17,670)
Issuance of American Express common shares 443 594 663
Repurchase of American Express common shares (3,952) (2,300) (590)
Dividends paid (902) (861) (867)
Net cash used in financing activities (3,268) (677) (7,878)
Effect of exchange rate changes on cash 88 (63) 135
Net (decrease) increase in cash and cash equivalents (2,643) 8,537 (243)
Cash and cash equivalents at beginning of year 24,893 16,356 16,599
Cash and cash equivalents at end of year $ 22,250 $ 24,893 $ 16,356
Supplemental cash flow information
Non-cash financing activities
Impact of the debt exchange on long-term debt $ 439 $—$—
See Notes to Consolidated Financial Statements.
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