American Express 2004 Annual Report Download - page 80

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Consolidated Statements of Income
AMERICAN EXPRESS COMPANY
Years Ended December 31, (Millions, except per share amounts) 2004 2003 2002
Revenues
Discount revenue $ 10,249 $ 8,781 $ 7,931
Net investment income 3,118 3,063 2,991
Management and distribution fees 3,023 2,420 2,285
Cardmember lending net finance charge revenue 2,224 2,042 1,828
Net card fees 1,909 1,835 1,726
Travel commissions and fees 1,795 1,507 1,408
Other commissions and fees 2,284 1,960 1,867
Insurance and annuity revenues 1,525 1,366 1,218
Securitization income, net 1,132 1,105 1,049
Other 1,856 1,757 1,504
Total 29,115 25,836 23,807
Expenses
Human resources 7,359 6,303 5,725
Marketing, promotion, rewards and cardmember services 5,083 3,901 3,119
Provisions for losses and benefits:
Annuities and investment certificates 1,261 1,306 1,217
Life insurance, international banking and other 1,094 1,052 1,040
Charge card 833 853 960
Cardmember lending 1,130 1,218 1,369
Professional services 2,507 2,248 2,021
Occupancy and equipment 1,641 1,529 1,458
Interest 867 905 1,082
Communications 519 517 514
Other 1,870 1,757 1,575
Total 24,164 21,589 20,080
Pretax income before accounting change 4,951 4,247 3,727
Income tax provision 1,435 1,247 1,056
Income before accounting change 3,516 3,000 2,671
Cumulative effect of accounting change, net of tax (Note 1) (71) (13) —
Net income $ 3,445 $ 2,987 $ 2,671
Earnings Per Common Share — Basic:
Income before accounting change $ 2.79 $ 2.34 $ 2.02
Net income $ 2.74 $ 2.33 $ 2.02
Earnings Per Common Share — Diluted:
Income before accounting change $ 2.74 $ 2.31 $ 2.01
Net income $ 2.68 $ 2.30 $ 2.01
Average common shares outstanding for earnings per
common share:
Basic 1,259 1,284 1,320
Diluted 1,285 1,298 1,330
See Notes to Consolidated Financial Statements.
AXP
AR.04
78
Consolidated Statements of Income