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notes to consolidated financial statements
american express company
90
note 8
other assets
The following is a summary of other assets at December 31:
(Millions) 2008 2007
Deferred tax assets, net $ 3,470 $2,411
Goodwill 2,301 1,508
Derivative assets 1,743 247
Prepaid expenses(a) 1,712 618
Subordinated accrued interest receivable(b) 807 —
Other intangible assets, at amortized cost 717 204
Restricted cash 238 276
Other 1,619 2,084
Total $12,607 $7,348
(a) Includes $890 million of Delta Miles purchased in connection with the renegotiated contract with Delta Air Lines. The Delta Miles are subject to certain
restrictions and will be expensed as used in the future.
(b) Subordinated accrued interest receivable was reclassified from cardmember loans prospectively beginning in the first quarter 2008. The balance included in cardmember loans
at December 31, 2007 was $630 million.
goodwill
The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments were as follows. During
2007 and 2008, no goodwill was written off due to impairment.
(Millions) USCS ICS GCS GNMS
Corporate
& Other Total
Balance at January 1, 2007 $168 $518 $ 740 $ 27 $16 $1,469
Acquisitions 7 — 19 — — 26
Other, including foreign currency translation
and reclassifications — 1 12 — — 13
Balance at December 31, 2007 175 519 771 27 16 1,508
Acquisitions(a) — — 828 — — 828
Dispositions — — (1) — — (1)
Other, including foreign currency translation — (10) (25) 1 — (34)
Balance at December 31, 2008 $175 $509 $1,573 $28 $16 $2,301
(a) Includes approximately $818 million related to the acquisition of General Electric Company’s commercial card and corporate purchasing business. Refer to Note
2 for further discussion.
other intangible assets
The components of other intangible assets were as follows:
(Millions) 2008 2007
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Customer relationships $744 $(135) $609 $187 $ (78) $109
Other 160 (52) 108 137 (42)95
Total $904 $(187) $717 $324 $(120) $204