Parent Company (Tables)

12 Months Ended

Dec. 31, 2014

PARENT COMPANY – CONDENSED STATEMENTS OF INCOME

Years Ended December 31 (Millions)			2014		2013		2012
Revenues
	Non-interest revenues
		Gain on sale of securities	$	99	$	135	$	121
		Other		270		5		(12)
Total non-interest revenues				369		140		109
Interest income				141		134		137
Interest expense				(543)		(583)		(609)
Total revenues net of interest expense				(33)		(309)		(363)
Expenses
	Salaries and employee benefits			275		206		165
	Other			357		261		214
Total				632		467		379
Pretax loss				(665)		(776)		(742)
Income tax benefit				(249)		(297)		(258)
Net loss before equity in net income of subsidiaries and affiliates				(416)		(479)		(484)
Equity in net income of subsidiaries and affiliates				6,301		5,838		4,966
Net income			$	5,885	$	5,359	$	4,482

Condensed Balance Sheets

PARENT COMPANY – CONDENSED BALANCE SHEETS

As of December 31 (Millions)		2014		2013
Assets
Cash and cash equivalents		$	8,824	$	6,076
Investment securities			1		123
Equity in net assets of subsidiaries and affiliates			20,123		19,571
Accounts receivable, less reserves			134		378
Premises and equipment, less accumulated depreciation: 2014, $106; 2013, $76			139		136
Loans to subsidiaries and affiliates			7,809		5,236
Due from subsidiaries and affiliates			1,477		1,126
Other assets			365		335
Total assets			38,872		32,981
Liabilities and Shareholders’ Equity
Liabilities
Accounts payable and other liabilities			1,590		1,386
Due to subsidiaries and affiliates			964		926
Short-term debt of subsidiaries and affiliates			5,937		819
Long-term debt			9,708		10,354
	Total liabilities		18,199		13,485
Shareholders’ equity
Preferred Shares			―		―
Common shares			205		213
Additional paid-in capital			12,874		12,202
Retained earnings			9,513		8,507
Accumulated other comprehensive loss			(1,919)		(1,426)
	Total shareholders’ equity		20,673		19,496
Total liabilities and shareholders’ equity		$	38,872	$	32,981

Condensed Cash Flows

PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS

Years Ended December 31 (Millions)			2014		2013		2012
Cash Flows from Operating Activities
Net income		$	5,885	$	5,359	$	4,482
Adjustments to reconcile net income to cash provided by operating activities:
	Equity in net income of subsidiaries and affiliates		(6,301)		(5,838)		(4,966)
	Dividends received from subsidiaries and affiliates		5,455		4,768		3,355
	Gain on sale of securities		(99)		(135)		(121)
	Other operating activities, primarily with subsidiaries and affiliates		173		324		196
	Premium paid on debt exchange		―		―		(541)
Net cash provided by operating activities			5,113		4,478		2,405
Cash Flows from Investing Activities
Sales of available-for-sale investment securities			111		157		118
Purchase of premises and equipment			(39)		(39)		(38)
Loans to subsidiaries and affiliates			(2,574)		1,498		(1,601)
Investments in subsidiaries and affiliates			―		―		(11)
Net cash (used in) provided by investing activities			(2,502)		1,616		(1,532)
Cash Flows from Financing Activities
(Principal payments on) / issuance of long-term debt			(655)		843		―
Short-term debt of subsidiaries and affiliates			5,118		(1,497)		1,421
Issuance of American Express preferred shares			742		―		―
Issuance of American Express common shares and other			362		721		443
Repurchase of American Express common shares			(4,389)		(3,943)		(3,952)
Dividends paid			(1,041)		(939)		(902)
Net cash provided by (used in) financing activities			137		(4,815)		(2,990)
Net increase (decrease) in cash and cash equivalents			2,748		1,279		(2,117)
Cash and cash equivalents at beginning of year			6,076		4,797		6,914
Cash and cash equivalents at end of year		$	8,824	$	6,076	$	4,797

Supplemental cash flow information
Non-cash financing activities
	Charge related to impact of debt exchange on long-term debt	$	―	$	―	$	439
	Gain on business travel joint venture transaction	$	630	$	―	$	―