American Express 2003 Annual Report Download - page 49

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GAAP Basis to Managed Basis Reconciliation — Effect of Securitizations
Years Ended December 31, (Millions)
Effect of Securitizations
GAAP Basis Securitization Effect Managed Basis
2003 2002 2001 2003 2002 2001 2003 2002 2001
Net revenues:
Discount revenue $8,781 $7,931 $ 7,714
Net card fees 1,835 1,726 1,675 $—$—$16$1,835 $1,726 $ 1,691
Lending:
Finance charge revenue 2,525 2,338 2,643 2,172 2,166 1,979 4,697 4,504 4,622
Interest expense 483 510 939 272 340 545 755 850 1,484
Net finance
charge revenue 2,042 1,828 1,704 1,900 1,826 1,434 3,942 3,654 3,138
Travel commissions
and fees 1,507 1,408 1,537
Other commissions
and fees 1,901 1,833 1,861 193 185 153 2,094 2,018 2,014
Travelers Cheque
investment income 367 375 394
Securitization income, net 1,150 1,049 846 (1,150) (1,049) (846) ———
Other revenues 1,606 1,571 1,628 —(14) (14) 1,606 1,557 1,614
Total net revenues 19,189 17,721 17,359 943 948 743 20,132 18,669 18,102
Expenses:
Marketing, promotion,
rewards and
cardmember services 3,814 3,027 2,654 (74) (81) (92) 3,740 2,946 2,562
Provision for losses
and claims:
Charge card 853 960 1,195 ——36853 960 1,231
Lending 1,218 1,369 1,318 1,067 1,098 925 2,285 2,467 2,243
Other 127 149 164
Total 2,198 2,478 2,677 1,067 1,098 961 3,265 3,576 3,638
Charge card
interest expense 786 1,001 1,443 —(14) 33 786 987 1,476
Net discount expense ——96 ——(96) ———
Human resources 3,822 3,503 3,992
Other operating
expenses 4,998 4,636 4,025 (50) (55) (63) 4,948 4,581 3,962
Restructuring charges —(4) 414
Disaster recovery charge ——79
Total expenses 15,618 14,641 15,380 $943 $948 $ 743 $16,561 $15,589 $16,123
Pretax income 3,571 3,080 1,979
Income tax provision 1,141 945 520
Net income $2,430 $2,135 $ 1,459
(p.47_axp_ financial review)