American Express 2008 Annual Report Download - page 120

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notes to consolidated financial statements
american express company
118
note 28
quarterly financial data (unaudited)
(Millions, except per share amounts) 2008(a) 2007(a)
Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30(b) 6/30 3/31
Total revenues net of interest expense $6,506 $7,164 $7,455 $7,240 $7,324 $6,956 $ 6,867 $6,412
Pretax income from continuing operations 268 1,078 774 1,461 1,158 1,505 1,415 1,616
Income from continuing operations 306 861 660 1,044 858 1,122 1,046 1,100
(Loss) Income from discontinued operations, net of tax (66) (46) (7) (53) (27) (55) 11 (43)
Net income 240 815 653 991 831 1,067 1,057 1,057
Earnings Per Common Share — Basic:
Continuing operations $ 0.27 $ 0.75 $ 0.57 $ 0.91 $ 0.74 $ 0.96 $ 0.89 $ 0.93
Discontinued operations (0.06) (0.04) — (0.05) (0.02) (0.05) 0.01 (0.04)
Net income $ 0.21 $ 0.71 $ 0.57 $ 0.86 $ 0.72 $ 0.91 $ 0.90 $ 0.89
Earnings Per Common Share — Diluted:
Continuing operations $ 0.27 $ 0.74 $ 0.57 $ 0.90 $ 0.73 $ 0.94 $ 0.87 $ 0.91
Discontinued operations (0.06) (0.04) (0.01) (0.05) (0.02) (0.04) 0.01 (0.04)
Net income $ 0.21 $ 0.70 $ 0.56 $ 0.85 $ 0.71 $ 0.90 $ 0.88 $ 0.87
Cash dividends declared per common share $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.15 $ 0.15 $ 0.15
Common share price:
High $35.80 $42.50 $52.63 $52.32 $63.63 $65.89 $65.24 $61.90
Low $16.55 $31.68 $37.61 $39.50 $50.37 $55.50 $55.34 $53.91
(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 rounded fractional amounts.
note 27
subsequent event
In October 2008, the United States Department of the Treasury
(Treasury Department) announced its Capital Purchase
Program (CPP) under the Emergency Economic Stabilization
Act of 2008 (EESA).
Subsequent to year-end 2008, the Company participated in
the CPP by issuing to the Treasury Department 3,388,890 shares
of the Company’s Series A Fixed Rate Cumulative Perpetual
Preferred Stock, along with a ten-year warrant (Warrant) to
purchase up to 24,264,129 shares of common stock at an initial
per share exercise price of $20.95 per share. The aggregate gross
proceeds received by the Company on January 9, 2009 for the
Series A Preferred Stock and Warrant totaled $3.39 billion.
As of January 9, 2009, both the Series A Preferred Stock
and Warrant are accounted for as permanent equity and are
components of Tier 1 capital, thus enhancing the Company’s
Tier 1 and Total Capital ratios.