American Express 2007 Annual Report Download - page 113

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
NOTE 22 QUARTERLY FINANCIAL DATA (UNAUDITED)
(Millions, except per share amounts) 2007(a) 2006(a)
Quarters Ended 12/31 9/30(b) 6/30 3/31 12/31 9/30 6/30 3/31
Revenues net of interest expense $7,364 $6,945 $6,938 $6,484 $6,675 $6,265 $6,370 $5,844
Pretax income from continuing
operations 1,129 1,417 1,409 1,611 1,187 1,311 1,437 1,204
Income from continuing operations 839 1,074 1,040 1,095 895 934 972 810
(Loss) Income from discontinued
operations, net of tax (8) (7) 17 (38) 27 33 (27) 63
Net income 831 1,067 1,057 1,057 922 967 945 873
Earnings Per Common Share — Basic:
Continuing operations $ 0.72 $ 0.92 $ 0.88 $ 0.92 $ 0.75 $ 0.78 $ 0.80 $ 0.66
Discontinued operations — (0.01) 0.02 (0.03) 0.02 0.02 (0.02) 0.05
Net income $ 0.72 $ 0.91 $ 0.90 $ 0.89 $ 0.77 $ 0.80 $ 0.78 $ 0.71
Earnings Per Common Share —
Diluted:
Continuing operations $ 0.71 $ 0.90 $ 0.86 $ 0.90 $ 0.73 $ 0.76 $ 0.78 $ 0.64
Discontinued operations — — 0.02 (0.03) 0.02 0.03 (0.02) 0.05
Net income $ 0.71 $ 0.90 $ 0.88 $ 0.87 $ 0.75 $ 0.79 $ 0.76 $ 0.69
Cash dividends declared per common
share $ 0.18 $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.12
Common share price:
High $63.63 $65.89 $65.24 $61.90 $62.50 $56.19 $54.91 $55.00
Low $50.37 $55.50 $55.34 $53.91 $55.00 $49.73 $50.92 $51.05
(a) Note 2 provides additional information on discontinued operations.
(b) Diluted EPS from discontinued operations was greater than basic EPS from discontinued operations due to the impact of rounding fractional amounts.
NOTE 23 RESTRUCTURING CHARGES
During 2007, the Company recorded restructuring charges of
$49 million related to the Company’s business travel, prepaid
services, international payments business, and technology areas.
During 2006 and 2005, the Company recorded restructuring
charges of $100 million and $188 million, respectively, related
to the Company’s business travel, operations, finance, and
technology areas. These charges principally related to the
consolidation of business operations, closing of operating sites,
and exiting certain businesses.
Restructuring charges are comprised of severance
obligations and other exit costs. The charges and any subsequent
adjustments related to severance obligations are included in
human resources in the Company’s Consolidated Statements
of Income, while other exit costs are included in occupancy
and equipment, professional services, and other expenses. Cash
payments related to the remaining restructuring liabilities
are expected to be completed in 2009, with the exception of
contractual long-term severance arrangements which are
expected to be completed in 2010 and certain lease obligations
which will continue until their expiration in 2012.
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