American Express 2001 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2001 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 84

  • 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
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

axp_57
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The change in net unrealized securities gains (losses) recognized in other comprehensive loss includes two components: (1) unre-
alized gains (losses) that arose from changes in market value of securities that were held during the period (holding gains (losses)),
and (2) gains (losses) that were previously unrealized, but have been recognized in current period net income due to sales of Avail-
able-for-Sale securities (reclassification for realized gains). This reclassification has no effect on total comprehensive loss or
shareholders’ equity.
The following table presents these components of other comprehensive loss net of tax:
(Millions, net of tax) 2001 2000 1999
Holding gains (losses) $16 $ 231 $ (852)
Reclassification for realized losses (gains) 463 (80) (27)
Increase (decrease) in net unrealized securities gains
recognized in other comprehensive loss $ 479 $ 151 $ (879)
Note 5 ❚LOANS
Loans at December 31 consisted of:
(Millions) 2001 2000
Cardmember and consumer loans $ 23,887 $ 22,486
Commercial loans:
Commercial and industrial 1,286 1,879
Loans to banks and other institutions 1,306 1,591
Mortgage and real estate 140 159
Other, principally policyholders’ loans 814 769
27,433 26,884
Less: Reserves for credit losses 993 796
Total $ 26,440 $ 26,088
Note: American Express Financial Advisors (AEFA) mortgage loans of $4.0 billion and $4.1 billion in 2001 and 2000, respectively, are included in Investment Mortgage Loans and are
presented in Note 4.
The following table presents changes in Reserves for Credit Losses related to loans:
(Millions) 2001 2000
Balance, January 1 $ 796 $ 753
Provision for credit losses 1,415 924
Write-offs (1,296) (1,031)
Recoveries of amounts previously written-off 78 150
Balance, December 31 $ 993 $796