American Express 2005 Annual Report Download - page 64

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CONSOLIDATED STATEMENTS OF INCOME
American Express Company
Years Ended December 31, (Millions, except per share amounts) 2005 2004 2003
Revenues
Discount revenue $ 11,730 $ 10,249 $ 8,781
Cardmember lending net finance charge revenue 2,580 2,224 2,042
Net card fees 2,033 1,909 1,835
Travel commissions and fees 1,780 1,795 1,507
Other commissions and fees 2,456 2,284 1,960
Securitization income, net 1,260 1,132 1,105
Other investment and interest income, net 1,055 997 1,005
Other 1,373 1,374 1,314
Total 24,267 21,964 19,549
Expenses
Marketing, promotion, rewards and cardmember services 5,841 4,965 3,820
Human resources 4,829 4,538 3,917
Provisions for losses and benefits:
Charge card 1,038 833 853
Cardmember lending 1,349 1,130 1,218
Investment certificates and other 386 301 283
Total 2,773 2,264 2,354
Professional services 2,308 2,141 1,972
Occupancy and equipment 1,428 1,353 1,258
Interest 920 814 860
Communications 457 474 462
Other 1,463 1,584 1,491
Total 20,019 18,133 16,134
Pretax income from continuing operations 4,248 3,831 3,415
Income tax provision 1,027 1,145 1,080
Income from continuing operations 3,221 2,686 2,335
Income from discontinued operations, net of tax 513 830 665
Cumulative effect of accounting change related to discontinued
operations, net of tax (Note 1) —(71) (13)
Net income $ 3,734 $ 3,445 $ 2,987
Earnings Per Common Share — Basic:
Continuing operations $ 2.61 $ 2.13 $ 1.82
Discontinued operations 0.42 0.66 0.52
Cumulative effect of accounting change —(0.05) (0.01)
Net income $ 3.03 $ 2.74 $ 2.33
Earnings Per Common Share — Diluted:
Continuing operations $ 2.56 $ 2.09 $ 1.80
Discontinued operations 0.41 0.65 0.51
Cumulative effect of accounting change —(0.06) (0.01)
Net income $ 2.97 $ 2.68 $ 2.30
Average common shares outstanding for earnings
per common share:
Basic 1,233 1,259 1,284
Diluted 1,258 1,285 1,298
See Notes to Consolidated Financial Statements.
Consolidated
Statements of Income
AXP / AR.2005
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