American Express 2005 Annual Report Download - page 50

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The following table reconciles the GAAP basis for certain U.S. Card Services income statement line items to the
managed basis information, where different.
Years Ended December 31, GAAP Basis
(Millions) 2005 2004 2003
Revenues:
Discount revenue,
net card fees
and other $ 8,897 $ 7,893 $ 7,102
Cardmember
lending:
Finance charge
revenue 2,408 1,776 1,574
Interest expense 616 406 303
Net finance
charge
revenue 1,792 1,370 1,271
Securitization
income, net 1,260 1,132 1,105
Total revenues 11,949 10,395 9,478
Expenses:
Marketing,
promotion,
rewards and
cardmember
services 3,911 3,325 2,644
Provision for losses 1,676 1,508 1,481
Human resources
and other
operating
expenses 3,763 3,422 3,397
Total expenses 9,350 8,255 7,522
Pretax segment
income 2,599 2,140 1,956
Income tax provision 765 622 558
Segment income $ 1,834 $ 1,518 $ 1,398
Securitization Effect
Tax Equivalent
Effect Managed Basis
2005 2004 2003 2005 2004 2003 2005 2004 2003
$ 210 $ 210 $ 193 $ 226 $228 $228 $ 9,333 $ 8,331 $ 7,523
2,692 2,222 2,172 5,100 3,998 3,746
739 384 317 1,355 790 620
1,953 1,838 1,855 3,745 3,208 3,126
(1,260) (1,132) (1,105) ———
903 916 943 226 228 228 13,078 11,539 10,649
(13) (16) (74) 3,898 3,309 2,570
924 942 1,067 2,600 2,450 2,548
(8) (10) (50) 3,755 3,412 3,347
$ 903 $ 916 $ 943 10,253 9,171 8,465
226 228 228 2,825 2,368 2,184
$ 226 $228 $228 $991$850$786
Financial Review
AXP / AR.2005
[48 ]