American Express 1998 Annual Report Download - page 55

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53
INDUSTRY SEGMENTS
In 1998, the Company adopted SFAS No. 131,
“Disclosures about Segments of an Enterprise and
Related Information.” As a result, the Travelers Cheque
operations, which were previously included in the TRS
segment, have been reported in the same segment as
AEB since January 1, 1998, consistent with our man-
agement structure.
The Company is principally engaged in providing
travel related, financial advisory and international bank-
ing services throughout the world. TRS’ products and
services include, among others, Charge Cards, consumer
lending products, and corporate and consumer travel ser-
vices. American Express Financial Advisors’ services and
products include financial planning and advice, invest-
ment advisory services and a variety of products,
including insurance and annuities, investment certificates
and mutual funds. American Express Bank/Travelers
Cheque (AEB/TC) products and services include
Travelers Cheques and providing correspondent, corpo-
rate and private banking, consumer financial services and
global trading. The Company operates on a global basis,
although the principal market for financial advisory
services is the United States.
The following table presents certain information
regarding these industry segments at December 31,
1998, 1997 and 1996 and for each of the years
then ended.
NOTE 15 INDUSTRY SEGMENTS AND GEOGRAPHIC OPERATIONS
American
American Express
Travel Express Bank/ Corporate Adjustments
Related Financial Travelers and and
(millions) Services Advisors Cheque Other Eliminations Consolidated
1998
Revenues $ 13,237 $ 5,095 $ 1,002 $ 112 $ (314) $ 19,132
Interest and dividends, net 283 2,437 620 103 (166) 3,277
Cardmember lending
net finance charge revenue 1,354 ————1,354
Interest expense 959 21 28 149 (158) 999
Pretax income (loss) 2,064 1,192 (129) (202) — 2,925
Income tax provision (benefit) 700 374 (172) (118) — 784
Net income (loss) 1,364 818 43 (84) — 2,141
Assets $ 44,682 $ 64,637 $ 18,496 $ 3,606 $ (4,488) $ 126,933
1997
Revenues $ 12,214 $ 4,599 $ 1,124 $ 123 $ (300) $ 17,760
Interest and dividends, net 295 2,339 649 101 (209) 3,175
Cardmember lending
net finance charge revenue 1,244 ————1,244
Interest expense 921 18 33 129 (177) 924
Pretax income (loss) 1,785 1,022 249 (306) — 2,750
Income tax provision (benefit) 621 315 (23) (154) — 759
Net income (loss) 1,164 707 272 (152) — 1,991
Assets $ 40,700 $ 59,828 $ 19,573 $ 3,374 $ (3,472) $ 120,003