American Express 2007 Annual Report Download - page 95

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
Aggregate annual maturities on long-term debt obligations (based on final maturity dates) at December 31, 2007, were
as follows:
(Millions) 2008 2009 2010 2011 2012 Thereafter Total
American Express Company (Parent Company only) $ — $ 500 $ — $ 400 $ — $5,846 $ 6,746
American Express Travel Related Services
Company, Inc. — 800 — 1,200 — — 2,000
American Express Credit Corporation 7,411 5,634 2,515 1,554 4,738 412 22,264
American Express Centurion Bank 1,645 4,777 2,204 — 1,177 1,296 11,099
American Express Bank, FSB 2,715 3,265 1,055 — 1,577 1,297 9,909
American Express Receivables Financing
Corporation V LLC — — 1,560 — 1,560 — 3,120
Other 44 13 — — — 90 147
Total $11,815 $14,989 $ 7,334 $ 3,154 $ 9,052 $ 8,941 $ 55,285
As of December 31, 2007 and 2006, the Company maintained
total bank lines of credit, including lines supporting commercial
paper borrowings, of $12.4 billion and $11.6 billion, respectively,
of which $9.0 billion and $8.9 billion were unutilized as of
December 31, 2007 and 2006, respectively.
The Company paid total interest primarily related to short-
and long-term debt, corresponding interest rate products and
customer deposits of $4.3 billion, $3.2 billion, and $2.4 billion
in 2007, 2006, and 2005, respectively (including amounts related
to discontinued operations of $0.6 billion, $0.4 billion, and $0.4
billion in 2007, 2006, and 2005, respectively).
NOTE 10 OTHER LIABILITIES
The following is a summary of other liabilities at December 31:
(Millions) 2007 2006
Membership Rewards liabilities $ 4,785 $ 3,760
Employee-related liabilities(a) 1,887 1,893
Deferred card fees, net 1,126 987
Other(b) 6,161 5,291
Total $ 13,959 $ 11,931
(a) Employee-related liabilities comprised principally of employee benefit plan
obligations and incentive compensation.
(b) Other consists principally of rebate accruals, advertising and promotion,
minority interest in subsidiaries, client incentive accruals, and dividends
payable.
DEFERRED CARD FEES
The carrying amount of deferred card and other fees, net of direct
acquisition costs and reserves for membership cancellations as
of December 31 were as follows:
(Millions) 2007 2006
Deferred card and other fees $1,410 $1,252
Deferred direct acquisition costs (159) (145)
Reserves for membership cancellations (125) (120)
Deferred card fees and other, net of direct
acquisition costs and reserves $1,126 $ 987
NOTE 11 COMMON AND PREFERRED SHARES
The Company has a share repurchase program to return
equity capital in excess of business needs to shareholders. The
share repurchases both offset the issuance of new shares as
part of employee compensation plans and reduce the number
of shares outstanding. At December 31, 2007, the Company
has 105 million shares remaining under the share repurchase
authorizations. Such authorizations do not have an expiration
date, and at present, there is no intention to modify or otherwise
rescind the current authorizations. The Company retires shares
upon being repurchased (except for approximately 500,000 shares
held as treasury shares at December 31, 2007), and are excluded
from the shares outstanding in the table below. There were no
shares held in treasury as of December 31, 2006 and 2005.
The following table shows authorized shares and provides a
reconciliation of common shares issued and outstanding:
(Millions, except where indicated) 2007 2006 2005
Common shares authorized
(billions)(a) 3.6 3.6 3.6
Shares issued and outstanding at
beginning of year 1,199 1,241 1,249
Repurchases of common shares (60) (75) (34)
Acquisition of Harbor Payments —2 —
Other, primarily stock option exercises 19 31 26
Shares issued and outstanding at
end of year 1,158 1,199 1,241
(a) Of the common shares authorized but unissued at December 31, 2007,
approximately 151 million shares were reserved for issuance for employee
stock, employee benefit and dividend reinvestment plans.
The Board of Directors is authorized to permit the Company
to issue up to 20 million preferred shares at a par value of $1.67
without further shareholder approval.
At December 31, 2007 and 2006, no preferred shares had
been issued.
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