American Express 2005 Annual Report Download - page 103

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CONSOLIDATED FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA
(Millions, except per share amounts and where indicated) 2005
(a)
2004
(b)
2003 2002 2001
(c)
Operating Results
Revenues $ 24,267 $ 21,964 $ 19,549 $ 18,079 $ 17,710
Expenses 20,019 18,133 16,134 15,058 15,973
Income from continuing operations 3,221 2,686 2,335 2,142 1,337
Income (loss) from discontinued operations 513 830 665 529 (26)
Income before cumulative effect of accounting change 3,734 3,516 3,000 2,671 1,311
Net income 3,734 3,445 2,987 2,671 1,311
Return on average shareholders’ equity
(d)
25.4% 22.0% 20.6% 20.2% 10.8%
Balance Sheet
Cash and cash equivalents $ 7,126 $ 7,808 $ 3,967 $ 3,939 $ 4,542
Accounts receivable and accrued interest, net 35,497 32,398 29,394 27,677 27,997
Investments 21,334 21,675 19,305 20,272 17,354
Loans, net 40,801 34,256 31,706 27,212 25,799
Assets of discontinued operations —87,141 80,207 69,242 66,921
Total assets 113,960 194,216 175,861 158,299 151,617
Customers’ deposits 24,579 20,107 20,252 17,252 13,471
Travelers Cheques outstanding 7,175 7,287 6,819 6,623 6,190
Short-term debt 15,633 14,316 18,983 21,272 31,554
Long-term debt 30,781 32,676 20,209 16,188 7,668
Liabilities of discontinued operations —80,675 73,193 63,112 61,575
Shareholders’ equity 10,549 16,020 15,323 13,861 12,037
Common Share Statistics
Earnings per share:
Income from continuing operations:
Basic $ 2.61 $ 2.13 $ 1.82 $ 1.62 $ 1.01
Diluted $ 2.56 $ 2.09 $ 1.80 $ 1.61 $ 1.00
Income from discontinued operations:
Basic $ 0.42 $ 0.66 $ 0.52 $ 0.40 $ (0.02)
Diluted $ 0.41 $ 0.65 $ 0.51 $ 0.40 $ (0.02)
Cumulative effect of accounting change, net of tax
Basic —$ (0.05) $ (0.01) — —
Diluted —$ (0.06) $ (0.01) — —
Net income:
Basic $ 3.03 $ 2.74 $ 2.33 $ 2.02 $ 0.99
Diluted $ 2.97 $ 2.68 $ 2.30 $ 2.01 $ 0.98
Cash dividends declared per share $ 0.48 $ 0.44 $ 0.38 $ 0.32 $ 0.32
Book value per share:
Actual $ 8.50 $ 12.83 $ 11.93 $ 10.63 $ 9.05
Market price per share
(e)
:
High $ 59.50 $ 57.05 $ 49.11 $ 44.91 $ 57.06
Low $ 47.01 $ 47.32 $ 30.90 $ 26.55 $ 24.20
Close $ 51.46 $ 56.37 $ 48.23 $ 35.35 $ 35.69
Average common shares outstanding for earnings per share:
Basic 1,233 1,259 1,284 1,320 1,324
Diluted 1,258 1,285 1,298 1,330 1,336
Shares outstanding at period end 1,241 1,249 1,284 1,305 1,331
Other Statistics
Number of employees at period end (thousands):
United States 29 41 42 41 49
Outside United States 37 37 36 35 35
Total
(f)
66 78 78 76 84
Number of shareholders of record 55,409 50,394 47,967 51,061 52,041
(a)In 2005, the spin-off of Ameriprise and certain dispositions (including the sale of TBS) were completed and the results of these operations are presented
as discontinued operations. Results for 2005 reflect reengineering charges of $286 million ($186 million after-tax) for initiatives executed during 2005,
$242 million of tax benefits, a $123 million ($80 million after-tax) increase in the provision for losses recorded in the fourth quarter 2005, reflecting
substantially higher losses related to increased bankruptcy filings resulting from the October 17, 2005 change in bankruptcy legislation, a $113 million
($73 million after-tax) benefit from the recovery of September 11th related insurance claims and a $49 million ($32 million after-tax) provision to reflect
the estimated costs related to Hurricane Katrina.
(b)Results for 2004 reflect restructuring charges of $99 million ($64 million after-tax) for initiatives executed during 2004. In addition, the Company rec-
ognized 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, a charge of $115 million (net of $32 million of reserves previously provided) related to a reconciliation of
securitization-related cardmember loans and a reduction in merchant-related reserves of approximately $60 million that reflect changes made to mitigate
loss exposure and ongoing favorable credit experience with merchants.
(c)Results for 2001 include restructuring charges of $524 million pretax ($341 million after-tax) and the one-time adverse impact from the September11
th
terrorist attacks of $98 million pretax ($65 million after-tax).
(d)Computed on a trailing 12-month basis using total shareholders’ equity as included in the Consolidated Financial Statements prepared in accordance with GAAP.
(e)The market price per share for the fourth quarter 2005 reflects the spin-off of Ameriprise as of September 30, 2005. The opening share price on the
first trading day subsequent to the spin-off was $50.75. See Note 2 for additional information on results of discontinued operations.
(f)Years prior to 2005 include employees from discontinued operations.
Consolidated
Five-Year Summary
of Selected
Financial Data
AXP / AR.2005
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