American Express 1998 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 1998 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 63

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63

54
Income tax provision (benefit) is calculated on a sepa-
rate return basis; however, benefits from operating losses,
loss carrybacks and tax credits (principally foreign tax
credits) recognizable for the Company’s consolidated
reporting purposes are allocated based upon the tax shar-
ing agreement among members of the American Express
Company consolidated U.S. tax group.
Assets are those that are used or generated exclu-
sively by each industry segment. The adjustments and
eliminations required to determine the consolidated
amounts shown above consist principally of the elimi-
nation of intersegment amounts.
Most services of the Company are provided on an inte-
grated worldwide basis. Therefore, it is not practical to
separate precisely the U.S. and international services.
Accordingly, the data in the above table are, in part, based
upon internal allocations, which necessarily involve man-
agement judgments.
American
American Express
Travel Express Bank/ Corporate Adjustments
Related Financial Travelers and and
(millions) Services Advisors Cheque Other Eliminations Consolidated
1996
Revenues $ 11,357 $ 4,110 $ 1,066 $ 129 $ (282) $ 16,380
Interest and dividends, net 438 2,267 657 112 (185) 3,289
Cardmember lending
net finance charge revenue 1,068 ————1,068
Interest expense 1,037 19 33 180 (153) 1,116
Pretax income 1,414 885 214 151 — 2,664
Income tax provision (benefit) 488 291 (33) 17 — 763
Net income 926 594 247 134 — 1,901
Assets $ 36,414 $ 52,670 $ 18,870 $ 3,158 $ (2,600) $ 108,512
Adjustments
United and
(millions) States Europe Asia/Pacific All Other Eliminations Consolidated
1998
Revenues $ 14,535 $ 2,476 $ 1,332 $ 1,444 $ (655) $ 19,132
Pretax income (loss) $ 2,520 $ 340 $ (59) $ 124 — $ 2,925
1997
Revenues $ 13,449 $ 2,209 $ 1,378 $ 1,277 $ (553) $ 17,760
Pretax income $ 2,111 $ 219 $ 256 $ 164 — $ 2,750
1996
Revenues $ 12,107 $ 2,123 $ 1,355 $ 1,129 $ (334) $ 16,380
Pretax income $ 2,083 $ 210 $ 257 $ 114 — $ 2,664
GEOGRAPHIC OPERATIONS
The following table presents the Company’s revenues and
pretax income (loss) in different geographic regions.