American Express 2008 Annual Report Download - page 114

notes to consolidated financial statements
american express company
112
note 23
details of certain
consolidated statements
of income lines
As a result of converting to a bank holding company, the
Company has made certain additional disclosures in accordance
with the Securities and Exchange Commission requirements
as discussed further in Note 1. The following items represent
1 percent or more of the aggregate of total interest income and
total non-interest revenues.
The following is a detail of other commissions and fees for
the years ended December 31:
(Millions) 2008 2007 2006
Delinquency fees $ 852 $ 879 $ 805
Foreign currency conversion revenue 755 718 591
Other 700 820 837
Total other commissions and fees $2,307 $2,417 $2,233
The following is a detail of other revenues for the years ended
December 31:
(Millions) 2008 2007 2006
Insurance premiums $ 326 $ 349 $ 327
Publishing revenue 327 345 301
Other 1,504 1,057 1,061
Total other revenues $2,157 $1,751 $1,689
The following is a detail of marketing, promotions, rewards and
cardmember services for the years ended December 31:
(Millions) 2008 2007 2006
Marketing and promotion $2,430 $2,562 $2,491
Cardmember rewards 4,389 4,777 3,728
Cardmember services 542 478 285
Total marketing, promotion,
rewards and cardmember services $7,361 $7,817 $6,504
The following is a detail of other, net expenses for the years
ended December 31:
(Millions) 2008 2007 2006
Occupancy and equipment $1,641 $1,436 $1,384
Communications 466 461 434
Travel and entertainment 254 254 284
MasterCard and Visa settlements (571) (1,056) —
Other 1,332 1,132 1,099
Total other, net expense $3,122 $2,227 $3,201
note 24
reportable operating
segments and
geographic operations
reportable operating segments
The Company, a bank holding company, is a leading global
payments and travel company that is principally engaged in two
customer-focused groups, the Global Consumer Group and the
Global Business-to-Business Group. Accordingly, the Company’s
U.S. Card Services (USCS) and International Card Services (ICS)
operating segments are aligned within the Global Consumer
Group and the Global Commercial Services (GCS) and Global
Network & Merchant Services (GNMS) operating segments are
aligned within the Global Business-to-Business Group.
The Company considers a combination of factors when
evaluating the composition of its reportable operating segments,
including the results reviewed by the chief operating decision
maker, economic characteristics, products and services offered,
classes of customers, product distribution channels, geographic
considerations (primarily U.S. versus international), and regulatory
environment considerations. Based on these factors, the Company
has the following five reportable operating segments.
USCS issues a wide range of card products and services to
consumers and small businesses in the United States, and provides
consumer travel services to cardmembers and other consumers.
ICS issues proprietary consumer and small business cards
outside the United States.
GCS offers global corporate payment and travel-related
products and services to large and mid-sized companies.
GNMS segment operates a global general-purpose charge
and credit card network, which includes both proprietary cards
and cards issued under network partnership agreements. It also
manages merchant services globally, which includes signing
merchants to accept cards as well as processing and settling
card transactions for those merchants. This segment also offers
merchants point-of-sale products, servicing and settlements and
marketing programs.
Corporate & Other consists of corporate functions and
auxiliary businesses, including the Company’s publishing business,
Travelers Cheques and other prepaid products, as well as other
company operations.