American Express 2004 Annual Report Download - page 120

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(Millions)
Travel
Related
Services(b)
American
Express
Financial
Advisors(e)
American
Express
Bank
Corporate
and Other
Adjustments
and
Eliminations Consolidated
2004
Revenues (GAAP basis) $ 21,578 $ 7,035 $ 825 $ 147 $ (470) $ 29,115
Revenues (managed basis) 22,494 7,035 825 147 (470) 30,031
Net investment income 452 2,375 315 146 (170) 3,118
Cardmember lending net finance
charge revenue:
GAAP basis 2,224 ————2,224
Managed basis 4,062 ————4,062
Interest expense 713 52 — 256 (154) 867
Pretax income (loss) before
accounting change 4,117 1,086 146 (398) — 4,951
Income tax provision (benefit) 1,265 280 50 (160) — 1,435
Income (loss) before accounting change 2,852 806 96 (238) — 3,516
Cumulative effect of accounting
change, net of tax
(a)
— (71) — — — (71)
Net income (loss)
(a)(c)
$ 2,852 $ 735 $ 96 $ (238) $ — $ 3,445
Total Assets $ 87,765 $97,151 $13,373 $17,351 $(23,002) $192,638
Total Equity $ 8,769 $ 6,436 $ 924 $12,803 $(12,912) $ 16,020
2003
Revenues (GAAP basis) $ 19,189 $ 6,142 $ 801 $ 104 $ (400) $ 25,836
Revenues (managed basis) 20,132 6,142 801 104 (400) 26,779
Net investment income 472 2,279 349 101 (138) 3,063
Cardmember lending net finance
charge revenue:
GAAP basis 2,042 ————2,042
Managed basis 3,897 ————3,897
Interest expense 786 45 — 214 (140) 905
Pretax income (loss) before
accounting change 3,571 859 151 (334) — 4,247
Income tax provision (benefit) 1,141 177 49 (120) — 1,247
Income (loss) before accounting change 2,430 682 102 (214) — 3,000
Cumulative effect of accounting
change, net of tax
(d)
— (13) — — — (13)
Net income (loss)
(d)
$ 2,430 $ 669 $ 102 $ (214) $ — $ 2,987
Total Assets $ 79,282 $ 84,569 $ 14,232 $ 19,129 $ (22,665) $ 174,547
Total Equity $ 7,885 $ 7,063 $ 949 $ 12,710 $ (13,284) $ 15,323
(a) Results for 2004 reflect a $109 million non-cash pretax charge ($71 million after-tax) related to the January 1, 2004 adoption of SOP 03-1.
(b) TRS’ 2004 results reflect a reconciliation of securitization-related cardmember loans, which resulted in a charge of $115 million (net of $32 million of reserves
previously provided) for balances accumulated over the prior five-year period as a result of a computational error. The amount of the error was immaterial
to any of the periods in which it occurred.
(c) Results for 2004 reflect aggregate restructuring charges of $102 million ($66 million after-tax) for initiatives executed during 2004. In addition, the Company
recognized a $117 million ($76 million after-tax) net gain on the sale of the leasing product line of the Company’s small business financing unit, American
Express Business Finance Corporation.
(d) Results for 2003 reflect a $20 million non-cash pretax charge ($13 million after-tax) related to the December 31, 2003 adoption of FIN 46, as revised.
(e) AEFA’s most significant subsidiary is IDS Life, which contributed $3.1 billion, $3.0 billion and $2.8 billion in total revenues during 2004, 2003 and 2002, respec-
tively, derived principally from annuity and life and health related products and services.
AXP
AR.04
118
Notes to Consolidated Financial Statements