American Express 2014 Annual Report Download - page 48

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AMERICAN EXPRESS COMPANY
2014 FINANCIAL REVIEW
For the year ended December 31, 2012, net cash provided by operating activities was $7.1 billion as a result of net income of $4.5 billion
adjusted for non-cash items such as certain changes in provisions for losses, depreciation and amortization, deferred taxes and other, stock-
based compensation. This was partially offset by the cash outflow due to the premium paid on the debt exchange of $0.5 billion.
Cash Flows from Investing Activities
Our investing activities primarily include changes in Card Member loans and receivables and our available-for-sale investment portfolio.
For the year ended December 31, 2014, net cash used in investing activities was $(8.0) billion consisting of a net increase in Card Member
receivablesandloansaswellaspurchasesofpremisesandequipment,net of sales. This was partially offset by the sales and maturities of
investments, including the $1.0 billion of proceeds from the sale of our investment in Concur.
For the year ended December 31, 2013, net cash used in investing activities was $(7.2) billion consisting of a net increase in Card Member
receivables and loans as well as purchases of premises and equipment, net of sales.
For the year ended December 31, 2012, net cash used in investing activities was $(6.5) billion consisting of a net increase in Card Member
receivables and loans as well as purchases of premises and equipment, net of sales, partially offset by the sales and maturities of investments.
Cash Flows from Financing Activities
Our financing activities primarily include issuing and repaying debt, changes in customer deposits, issuing and repurchasing our common
shares, and paying dividends.
For the year ended December 31, 2014, net cash provided by financing activities was $11 million, primarily driven by net increases in
customer deposits and short- and long-term debt, partially offset by repurchases of American Express common shares.
For the year ended December 31, 2013, net cash used in financing activities was $(3.9) billion, primarily driven by repurchases of
American Express common shares.
For the year ended December 31, 2012, net cash used in financing activities was $(3.3) billion, primarily driven by repurchases of
American Express common shares and a net reduction in short- and long-term debt, partially offset by a net increase in customer deposits.
OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS
We have identified both on- and off-balance sheet transactions, arrangements, obligations and other relationships that may have a material
current or future effect on our financial condition, changes in financial condition, results of operations, or liquidity and capital resources.
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