American Express 2005 Annual Report Download - page 100

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(Millions)
U.S. Card
Services
International
Card & Global
Commercial
Services
Global
Network &
Merchant
Services
Corporate
& Other Consolidated
2005 Managed Basis
Revenues $ 13,078 $ 9,173 $ 2,842 $ 438 $ 25,531
Cardmember lending net finance charge revenue 3,745 684 67 37 4,533
Pretax income (loss) from continuing operations 2,825 1,149 870 (370) 4,474
Income tax provision (benefit) 991 215 306 (259) 1,253
2004 Managed Basis
Revenues $ 11,539 $ 8,601 $ 2,639 $ 501 $ 23,280
Cardmember lending net finance charge revenue 3,208 640 29 185 4,062
Pretax income (loss) from continuing operations 2,368 1,116 904 (329) 4,059
Income tax provision (benefit) 850 335 330 (142) 1,373
2003 Managed Basis
Revenues $ 10,649 $ 7,566 $ 2,347 $ 319 $ 20,881
Cardmember lending net finance charge revenue 3,126 609 22 140 3,897
Pretax income (loss) from continuing operations 2,184 1,074 766 (381) 3,643
Income tax provision (benefit) 786 359 280 (117) 1,308
Geographic Operations
The following table presents the Company’s revenues and pretax income in different geographic regions:
(Millions) United States Europe(a) Asia/Pacific All Other Consolidated
2005
Revenues $ 16,024 $ 3,376 $ 2,306 $ 2,561 $ 24,267
Pretax income from continuing operations $ 3,337 $ 289 $ 310 $ 312 $ 4,248
2004
Revenues $ 14,551 $ 3,105 $ 2,140 $ 2,168 $ 21,964
Pretax income from continuing operations $ 2,784 $ 293 $ 286 $ 468 $ 3,831
2003
Revenues $ 13,266 $ 2,454 $ 1,855 $ 1,974 $ 19,549
Pretax income from continuing operations $ 2,418 $ 355 $ 218 $ 424 $ 3,415
(a)Results in Europe are impacted by reengineering initiatives in 2005 and 2004.
Most services of the Company are provided on an inte-
grated worldwide basis. Therefore, it is not practicable
to separate precisely the U.S. and international services.
Accordingly, the data in the above table are, in part,
based upon internal allocations, which necessarily
involve management’s judgment.
NOTE 20 Transfer of Net Assets
from Subsidiaries
Restrictions on the transfer of net assets exist under debt
agreements and regulatory requirements of certain of
the Company’s subsidiaries. These restrictions have not
had any effect on the Company’s shareholder dividend
policy and management does not anticipate any impact
in the future.
At December 31, 2005, the aggregate amount of net
assets of subsidiaries that may not be transferred to the
Parent Company was approximately $6 billion. When
needed, procedures exist to transfer net assets between
the Company and its subsidiaries, while complying with
the various contractual and regulatory constraints.
Notes to Consolidated
Financial Statements
AXP / AR.2005
[98 ]