American Express 2006 Annual Report Download - page 111

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[ 109 ]
notes to consolidated fi nancial statements
american express company
NOTE 20 QUARTERLY FINANCIAL DATA (UNAUDITED)
(Millions, except per share amounts) 2006(a) 2005(a)
Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31
Net revenues $7,208 $6,759 $6,850 $6,319 $6,380 $6,028 $6,020 $5,640
Pretax income from continuing operations 1,223 1,338 1,442 1,325 959 1,080 1,121 1,088
Income from continuing operations 925 956 972 876 751 865 860 745
(Loss) Income from discontinued operations, net of tax (3) 11 (27) (3) (6)165 153 201
Net income 922 967 945 873 745 1,030 1,013 946
Earnings Per Common Share — Basic:
Continuing operations $ 0.77 $ 0.79 $ 0.80 $ 0.71 $0.61$0.70$0.70 $0.60
Discontinued operations — 0.01 (0.02) — (0.01) 0.14 0.12 0.16
Net income $ 0.77 $ 0.80 $ 0.78 $ 0.71 $0.60$0.84$0.82$0.76
Earnings Per Common Share — Diluted:
Continuing operations $ 0.76 $ 0.78 $ 0.78 $ 0.70 $ 0.60 $ 0.69 $ 0.69 $ 0.59
Discontinued operations (0.01) 0.01 (0.02) (0.01) (0.01) 0.13 0.12 0.16
Net income $ 0.75 $ 0.79 $ 0.76 $ 0.69 $ 0.59 $ 0.82 $ 0.81 $ 0.75
Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.12 $0.12$0.12$0.12$0.12
Common share price(b):
High $62.50 $56.19 $54.91 $55.00 $53.06
(b)$59.50 $55.30 $58.03
Low $55.00 $49.73 $50.92 $51.05 $46.59
(b)$ 52.30 $ 49.51 $50.01
(a) The spin-off of Ameriprise and certain dispositions were completed in 2006 and 2005, and the results of these operations are presented as
discontinued operations. Note 2 provides additional information on discontinued operations.
(b) The market price per share beginning with the fourth quarter of 2005 reflects the spin-off of Ameriprise as of September 30, 2005. The
opening share price on the first trading day after the spin-off was $50.75.
NOTE 21 RESTRUCTURING CHARGES
During 2006, the Company recorded restructuring
charges of $100 million relating to the Company’s
business travel, operations, finance, and technology areas.
These charges principally relate to the consolidation of
business operations, closing of operating sites, and exiting
certain businesses, and are comprised of $89 million of
severance and $11 million of other exit costs.
During 2005 and 2004, the Company recorded
restructuring charges of $193 million and $99 million,
respectively, relating to consolidation and site closures
in the Company’s business travel and international
operations, and relocation of certain functions in the
Company’s finance and technologies operations.
Charges related to severance obligations are included
in human resources. Other exit costs are included in
occupancy and equipment, professional services, and other
expenses in the Company’s Consolidated Statements of
Income for the years ended December 31, 2006, 2005,
and 2004.
Cash payments related to remaining restructuring
liabilities at December 31, 2006, are expected to be
completed by the end of the first quarter of 2008, except
for certain lease obligations which will continue until
their expiration in 2010.