American Express 2006 Annual Report Download - page 72

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[ 70 ]
consolidated statements of income
american express company
Years Ended December 31, (Millions, except per share amounts) 2006 2005 2004
Net revenues
Discount revenue $12,978 $ 11,489 $ 10,126
Cardmember lending finance charge revenue, net of interest 3,457 2,580 2,224
Net card fees 1,994 2,033 1,909
Travel commissions and fees 1,778 1,780 1,795
Other commissions and fees 2,555 2,375 2,200
Securitization income, net 1,489 1,260 1,132
Other investment and interest income, net of interest 1,078 1,055 997
Other 1,807 1,496 1,514
Tota l 27,136 24,068 21,897
Expenses
Marketing, promotion, rewards and cardmember services 6,516 5,841 4,965
Human resources 5,065 4,829 4,538
Provisions for losses and benefits:
Charge card 935 1,038 833
Cardmember lending 1,623 1,349 1,130
Investment certificates and other 529 386 301
Tota l 3,087 2,773 2,264
Professional services 2,710 2,308 2,141
Occupancy and equipment 1,491 1,428 1,353
Interest 1,236 920 814
Communications 449 457 474
Other 1,254 1,264 1,517
Tota l 21,808 19,820 18,066
Pretax income from continuing operations 5,328 4,248 3,831
Income tax provision 1,599 1,027 1,145
Income from continuing operations 3,729 3,221 2,686
(Loss) Income from discontinued operations, net of tax (22) 513 830
Cumulative effect of accounting change related to discontinued operations, net of tax —— (71)
Net income $ 3,707 $ 3,734 $ 3,445
Earnings per Common Share — Basic:
Income from continuing operations $ 3.08 $ 2.61 $ 2.13
(Loss) Income from discontinued operations (0.02) 0.42 0.66
Cumulative effect of accounting change —— (0.05)
Net income $ 3.06 $ 3.03 $ 2.74
Earnings per Common Share — Diluted:
Income from continuing operations $ 3.01 $ 2.56 $ 2.09
(Loss) Income from discontinued operations (0.02) 0.41 0.65
Cumulative effect of accounting change —— (0.06)
Net income $ 2.99 $ 2.97 $ 2.68
Average common shares outstanding for earnings per common share:
Basic 1,212 1,233 1,259
Diluted 1,238 1,258 1,285
See Notes to Consolidated Financial Statements.