American Express 1998 Annual Report Download - page 57

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55
The Securities and Exchange Commission requires the
disclosure of certain restrictions on the flow of funds to
a parent Company from its subsidiaries in the form of
loans, advances or dividends.
Restrictions on the transfer of funds exist under
debt agreements and regulatory requirements of certain
of the Company’s subsidiaries. These restrictions have
not had any effect on the Company’s shareholder divi-
dend policy and management does not anticipate any
effect in the future.
At December 31, 1998, the aggregate amount of
net assets of subsidiaries that may be transferred to the
parent Company was approximately $6.8 billion. Should
specific additional needs arise, procedures exist to per-
mit immediate transfer of short-term funds between the
Company and its subsidiaries, while complying with the
various contractual and regulatory constraints on the
internal transfer of funds.
NOTE 17 TRANSFER OF FUNDS FROM SUBSIDIARIES
NOTE 18 QUARTERLY FINANCIAL DATA (UNAUDITED)
(millions, except per share amounts) 1998 1997
Quarter Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31
Revenues $ 5,062 $ 4,787 $ 4,761 $ 4,521 $ 4,674 $ 4,500 $ 4,422 $ 4,164
Pretax income 713 799 800 614 690 718 702 640
Net income 530 574 578 460 493 524 520 454
Earnings per common share:
Basic 1.18 1.27 1.27 1.00 1.07 1.13 1.12 .97
Diluted 1.16 1.25 1.24 .98 1.04 1.10 1.08 .94
Cash dividends declared per
common share .225 .225 .225 .225 .225 .225 .225 .225
Common share prices:
High 109.06 118.63 114.00 98.13 91.50 85.25 79.75 70.00
Low 67.00 68.00 91.88 78.38 72.00 73.69 57.50 53.63
The Company leases certain office facilities and operat-
ing equipment under noncancellable and cancellable
agreements. Total rental expense amounted to $388 mil-
lion, $384 million and $397 million in 1998, 1997 and
1996, respectively. At December 31, 1998, the minimum
aggregate rental commitment under all noncancellable
leases (net of subleases) was (millions): 1999, $290;
2000, $236; 2001, $201; 2002, $153; 2003, $113 and
thereafter, $1,216.
The Company is not a party to any pending legal
proceedings that, in the opinion of management, would
have a material adverse effect on the Company’s finan-
cial position.
NOTE 16 LEASE COMMITMENTS AND OTHER CONTINGENT LIABILITIES