American Express 2005 Annual Report Download - page 84

As of December 31, 2005, in addition to the hedges of
existing long-term debt, the Company has designated
the interest rate risk associated with cash flows related
to future long-term debt issuances as part of its hedging
program. The notional amount of such designated
derivative financial instruments was $10.7 billion,
reflecting the hedge of future cash flows of anticipated
issuances in 2006 through 2008. See Note 10 for
additional discussion of the Company’s cash flow hedg-
ing strategies.
As of December 31, 2005, the Company had $2 billion
principal outstanding of 1.85 percent Convertible
Senior Debentures due 2033 (the Debentures), which
are unsecured and unsubordinated obligations of the
Company. The Debentures may be put to the Company
at accreted principal amount on December 1, 2006,
2008, 2013, 2018, 2023 or 2028 if the Company’s com-
mon stock is trading (during a specified averaging
period) at or above the base conversion price but below
the contingent conversion threshold. See Note 18 for
additional information regarding conversion terms
of Debentures.
Aggregate annual maturities on long-term debt obligations (based on final maturity dates) at December 31, 2005,
are as follows:
(Millions) 2006 2007 2008 2009 2010 Thereafter Total
American Express Company (Parent Company only) $ 1,000 $ 748 $ — $ 499 $ — $ 2,995 $ 5,242
American Express Travel Related Services
Company, Inc. — — — 500 — — 500
American Express Credit Corporation 2,300 6,300 999 4,900 2,028 402 16,929
American Express Centurion Bank 492 2,500 — 1,350 — — 4,342
American Express Receivables Financing
Corporation V LLC — — — — 600 600 1,200
American Express Bank, FSB 1,550 800 — — — — 2,350
Other 42 83 — — — 93 218
Total $ 5,384 $ 10,431 $ 999 $ 7,249 $ 2,628 $ 4,090 $ 30,781
As of December 31, 2005 and 2004, the Company maintained total bank lines of credit of $13.4 billion and
$13.0 billion, respectively, of which $10.1 billion and $9.7 billion were unutilized as of December 31, 2005 and
2004, respectively.
The Company paid total interest (including amounts related to discontinued operations) primarily related to short-
and long-term debt, corresponding interest rate products and customer deposits (net of amounts capitalized or
refunded) of $2.4 billion, $1.6 billion and $1.7 billion in 2005, 2004 and 2003, respectively.
NOTE 9 Common and Preferred Shares
The Company has in place a share repurchase program
to return equity capital in excess of its business needs
to shareholders. These share repurchases both offset the
issuance of new shares as part of employee compensa-
tion plans and reduce the number of shares outstanding.
Since the inception of repurchase programs in
September 1994, the Company has repurchased
530 million shares pursuant to total authorizations to
repurchase up to 570 million shares, including pur-
chases under past agreements with third parties. At
December 31, 2005, the Company has 40 million shares
remaining under such authorization. Such authoriza-
tion does not have an expiration date, and at present,
there is no intention to modify or otherwise rescind
such authorization.
Of the common shares authorized but unissued at
December 31, 2005, approximately 260 million shares
were reserved for issuance for employee stock, employee
benefit and dividend reinvestment plans, as well as con-
vertible securities.
The following table provides a reconciliation of common
shares outstanding:
Notes to Consolidated
Financial Statements
AXP / AR.2005
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