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represented by the carrying values. FIN 46 does not
impact the accounting for QSPEs as defined by SFAS
No. 140, such as the Company’s cardmember lending
securitizations, as well as the CDO-related securitiza-
tion trust established in 2001.
Note 6 GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill reported in the Company’s operating segments were as follows:
(Millions)
Travel
Related
Services
American
Express
Financial
Advisors
American
Express
Bank Total
Balance at January 1, 2003 $ 1,105 $ 223 $ 26 $ 1,354
Acquisitions 395 351 — 746
Foreign currency translation 31 — — 31
Balance at December 31, 2003 1,531 574 26 2,131
Acquisitions 11 9 — 20
Dispositions
(a)
(26) — — (26)
Foreign currency translation 17 50 — 67
Balance at December 31, 2004 $ 1,533 $ 633 $ 26 $ 2,192
(a) Reflects the sale of the equipment leasing product line of American Express Business Finance Corporation.
Definite lived intangible assets as of December 31 consisted of:
2004 2003
(Millions)
Gross
carrying
amount
Accumulated
amortization
Net
carrying
amount
Gross
carrying
amount
Accumulated
amortization
Net
carrying
amount
Customer Relationships $ 263 $ 107 $ 156 $ 241 $ 48 $ 193
Contracts 307 95 212 338 82 256
Other 79 21 58 88 15 73
Total $ 649 $ 223 $ 426 $ 667 $ 145 $ 522
The aggregate amortization expense for these intan-
gible assets during 2004, 2003 and 2002 was $78 mil-
lion, $56 million and $42 million, respectively. These
assets have a weighted average remaining useful life of
ten years. Estimated amortization expense associated
with intangible assets for the five years ending
December 31, 2009 is as follows (millions): 2005, $76;
2006, $70; 2007, $40; 2008, $36 and 2009, $31. During
2003, the Company acquired $312 million of intangible
assets primarily related to AEFA’s acquisition of Thread-
needle Asset Management Holdings LTD and TRS’
acquisition of Rosenbluth International. The decline in
contracts during 2004 reflects a reduction of $39 million
recognized in conjunction with the sale of the ATM
business. Additionally, during 2004 the Company rec-
ognized $28 million of intangible asset impairments
primarily related to prior portfolio acquisitions.
AXP
AR.04
100
Notes to Consolidated Financial Statements