Parent Company (Tables)

12 Months Ended

Dec. 31, 2011

Parent Company – Condensed Statements of Income

Years Ended December 31 (Millions)			2011		2010		2009
Revenues
	Non-interest revenues
		Gain on sale of securities	$	15	$	―	$	211
		Other		3		8		4
Total non-interest revenues				18		8		215
Interest income				142		136		142
Interest expense				(633)		(638)		(562)
Total revenues net of interest expense				(473)		(494)		(205)
Expenses
	Salaries and employee benefits			173		153		111
	Other			186		117		161
Total				359		270		272
Pretax loss				(832)		(764)		(477)
Income tax benefit				(346)		(292)		(164)
Net loss before equity in net income of
	subsidiaries and affiliates			(486)		(472)		(313)
Equity in net income of subsidiaries and
	affiliates			5,385		4,529		2,450
Income from continuing operations				4,899		4,057		2,137
Income (loss) from discontinued operations,
	net of tax			36		―		(7)
Net income			$	4,935	$	4,057	$	2,130

Condensed Balance Sheets

parent company – condensed balance sheets

As of December 31 (Millions)			2011		2010
Assets
Cash and cash equivalents			$	6,914	$	5,267
Investment securities				360		475
Equity in net assets of subsidiaries and
	affiliates of continuing operations			17,374		15,603
Accounts receivable, less reserves				53		831
Premises and equipment — at cost,
	less accumulated depreciation: 2011, $44;
		2010, $41		96		73
Loans to affiliates				5,132		4,942
Due from subsidiaries				1,363		1,196
Other assets				769		458
Total assets			$	32,061	$	28,845
Liabilities and Shareholders’ Equity
Liabilities
Accounts payable and other liabilities			$	1,466	$	1,366
Due to affiliates				823		911
Short-term affiliate debt				895		―
Long-term debt				10,083		10,338
	Total liabilities			13,267		12,615
Shareholders’ equity
Common shares				232		238
Additional paid-in capital				12,217		11,937
Retained earnings				7,221		4,972
Accumulated other comprehensive loss				(876)		(917)
	Total shareholders’ equity			18,794		16,230
Total liabilities and shareholders’ equity			$	32,061	$	28,845

Condensed Cash Flows

Parent Company – Condensed 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
Adjustments to reconcile net income to cash provided by operating activities:
	Equity in net (income) loss of subsidiaries and affiliates:
	— Continuing operations		(5,385)		(4,530)		(2,450)
	— Discontinued operations		(36)		―		7
	Dividends received from subsidiaries and affiliates		3,773		1,999		1,103
	Gain on sale of securities		(15)		―		(211)
	Other operating activities, primarily with subsidiaries		671		(39)		246
Net cash provided by operating activities			3,943		1,487		825
Cash Flows from Investing Activities
Sale/redemption of investments			20		9		361
Premises and equipment			(35)		(32)		(20)
Loans to affiliates			(189)		(1,064)		2,665
Purchase of investments			(2)		(3)		―
Investments in affiliates			(18)		―		―
Net cash (used in) provided by investing activities			(224)		(1,090)		3,006
Cash Flows from Financing Activities
Issuance of debt			―		―		3,000
Principal payment of debt			(400)		―		(505)
Short-term affiliate debt			895		―		―
Long-term affiliate debt			―		(15)		―
Issuance of American Express Series A preferred shares and warrants			―		―		3,389
Issuance of American Express common shares and other			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 (used in) provided by financing activities			(2,072)		(809)		1,845
Net change in cash and cash equivalents			1,647		(412)		5,676
Cash and cash equivalents at beginning of year			5,267		5,679		3
Cash and cash equivalents at end of year		$	6,914	$	5,267	$	5,679