American Express 2007 Annual Report Download - page 114

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
As of December 31, 2007, the total expenses to be incurred
for previously approved restructuring activities that were in-
progress are not expected to be materially different than the
cumulative expenses incurred to date for these programs. Future
decisions to initiate new restructuring activities do not represent
future phases of previously approved programs. The amounts in
the table to the right relate to the restructuring programs in-
progress during 2007 and initiated at various dates between the
fourth quarter of 2004 and fourth quarter of 2007.
Cumulative Restructuring Expense Incurred to Date on
In-progress Restructuring Programs
(Millions) Severance Other Total
USCS $ 24 $ 5 $ 29
ICS 41 6 47
GCS 141 25 166
GNMS 11 1 12
Corporate & Other 98 21 119
Total $315 $58 $373
The following table summarizes the Company’s restructuring charge activity for the years ended December 31, 2007, 2006, and
2005:
(Millions) Severance Other Total
Liability balance at December 31, 2004 $ 35 $ 8 $ 43
Restructuring charges 159 29 188
Payments (108) (29) (137)
Liability balance at December 31, 2005 86 8 94
Restructuring charges, net of reversals(a) 89 11 100
Payments (84) (9) (93)
Other non-cash (2) (6) (8)
Liability balance at December 31, 2006 89 4 93
Restructuring charges, net of reversals(b) 34 15 49
Payments (61) (6) (67)
Other non-cash (2) (4) (6)
Liability balance at December 31, 2007 $ 60 $ 9 $ 69
The following table summarizes the Company’s restructuring charges, net of reversals, and other non-cash items by reportable
operating segment for the years ended December 31, 2007, 2006, and 2005:
(Millions) USCS ICS GCS GNMS
Corporate
& Other Total
2005
Restructuring charges $ 3 $44 $51 $ 3 $ 87 $ 188
2006
Restructuring charges, net of reversals(a) 17 15 41 7 20 $ 100
Other non-cash — (1) — — (7) $ (8)
2007
Restructuring charges, net of reversals(b) 13 12 19 4 1 $ 49
Other non-cash (2) — — — (4) $ (6)
(a) Reversals of $20 million ($3 million in ICS, $1 million in GNMS, and $16 million in Corporate & Other), primarily due to higher redeployment rates.
(b) Reversals of $17 million ($2 million in USCS, $2 million in ICS, $2 million in GNMS, and $11 million in Corporate & Other), primarily due to higher
redeployment rates.
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