American Express 2008 Annual Report Download - page 93

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notes to consolidated financial statements
american express company
91
The gross changes in the carrying values and accumulated amortization related to other intangible assets, which are all definite lived, were as follows:
2008 2007
(Millions)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Balance at January 1 $324 $(120) $204 $ 341 $(185) $156
Acquisitions(a) 604 — 604 93 — 93
Amortization(b) — (83) (83) — (47) (47)
Other(c) (24) 16 (8) (110) 112 2
Balance at December 31 $904 $(187) $717 $ 324 $(120) $204
(a) Includes approximately $218 million and $265 million, related to the acquisition of CPS from General Electric Company as discussed in Note 2 and a corporate
signing bonus payment made in connection with the renegotiated contract with Delta Air Lines, respectively. Intangible assets acquired in 2008 and 2007 are being
amortized, on average, over 8 years and 16 years, respectively.
(b) 2006 amortization expense was $60 million.
(c) Primarily includes the write-off of fully amortized intangible assets and foreign currency translation.
Estimated amortization expense for other intangible assets over the next five years is as follows:
(Millions) 2009 2010 2011 2012 2013
Estimated amortization expense $126 $117 $100 $92 $83
The Company has $141 million and $114 million in affordable
housing partnership interests at December 31, 2008 and 2007,
respectively, included in other assets in the table above. The
Company is a limited partner and typically has a less than 50
percent interest in the affordable housing partnerships. These
partnership interests are accounted for in accordance with the
following accounting pronouncements, (i) FASB Interpretation
No. 46(R), “Consolidation of Variable Interest Entities”, (ii)
EITF No. 94-01, “Accounting for Tax Benefits Resulting from
Investments in Affordable Housing Projects”, and (iii) the
related accounting guidance of Statement of Position No. 78-9,
“Accounting Investments in Real Estate Ventures”, EITF Topic
D-46, “Accounting for Limited Partnership Investments”, and
EITF No. 04-5, “Determining Whether a General Partner, or the
General Partners as a Group, Controls a Limited Partnership or
Similar Entity When the Limited Partners have Certain Rights.”