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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
NOTE 8 OTHER ASSETS
The following is a summary of other assets at December 31:
(Millions) 2007 2006
Deferred tax assets, net $2,411 $1,640
Goodwill 1,508 1,469
Prepaid expenses 618 662
Other intangible assets, at cost 204 156
Other investments 314 320
Restricted cash 276 332
Other(a) 2,018 1,947
Total $7,349 $6,526
(a) Includes the interest-only strip assets, pension plan assets, derivative assets, and other miscellaneous assets.
GOODWILL
The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments were as follows:
(Millions)
U.S. Card
Services
International
Card Services
Global
Commercial
Services
Global Network
& Merchant
Services
Corporate &
Other Total
Balance at January 1, 2006 $168 $542 $ 631 $ 104 $17 $1,462
Acquisitions(a) — — 104 2 — 106
Dispositions(b) — (27) (5) (1) — (33)
Other, including foreign currency translation
and reclassifications — 3 10 (78) (1) (66 )
Balance at December 31, 2006 168 518 740 27 16 1,469
Acquisitions(c) 7 — 19 — — 26
Other, including foreign currency translation — 1 12 — — 13
Balance at December 31, 2007 $175 $519 $ 771 $ 27 $16 $1,508
(a) Approximately $100 million related to Harbor Payments. See Note 1 for further discussion.
(b) Relates to the disposition of the card and merchant-related activities in Brazil, effective June 30, 2006.
(c) Includes approximately $18 million related to the acquisition of a travel services business.
OTHER INTANGIBLE ASSETS
The gross changes in the carrying values and accumulated amortization related to other intangible assets, which are all definite-lived
and primarily represent customer relationships, were as follows:
2007 2006
(Millions)
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Balance at January 1 $ 341 $ (185) $156 $ 267 $(158) $ 109
Acquisitions(a) 93 — 93 108 — 108
Amortization(b) — (47) (47) — (60) (60)
Other(c) (110) 112 2 (34) 33 (1)
Balance at December 31 $ 324 $ (120) $204 $ 341 $(185) $ 156
(a) Intangible assets acquired in 2007 and 2006 are being amortized, on average, over 16 years and 6 years, respectively.
(b) 2005 amortization expense was $49 million.
(c) Primarily includes the write-off of fully amortized intangible assets.
Estimated intangible amortization expense for the next five years is as follows:
(Millions) 2008 2009 2010 2011 2012
Estimated amortization expense $51 $41 $33 $22 $16
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