American Express 2009 Annual Report Download - page 59

2009 FINANCIAL REVIEW
AMERICAN EXPRESS COMPANY
GLOBAL COMMERCIAL SERVICES
SELECTED INCOME STATEMENT DATA
Years Ended December 31,
(Millions) 2009 2008 2007
Revenues
Discount revenue, net card fees and
other $4,157 $5,081 $4,697
Interest income 61 168 187
Interest expense 172 553 615
Net interest income (111) (385) (428)
Total revenues net of interest expense 4,046 4,696 4,269
Provisions for losses 177 231 163
Total revenues net of interest expense
after provisions for losses 3,869 4,465 4,106
Expenses
Marketing, promotion, rewards and
cardmember services 332 377 387
Salaries and employee benefits and
other operating expenses 2,969 3,395 2,975
Total 3,301 3,772 3,362
Pretax segment income 568 693 744
Income tax provision 178 188 208
Segment income $ 390 $ 505 $ 536
SELECTED STATISTICAL INFORMATION(a)
As of or for the Years Ended December 31,
(Billions, except percentages
and where indicated) 2009 2008 2007
Card billed business $ 111.2 $ 129.2 $ 122.1
Total cards-in-force (millions) 7.1 7.1 6.8
Basic cards-in-force (millions) 7.1 7.1 6.8
Average basic cardmember spending
(dollars) $15,544 $18,527 $18,017
Global Corporate Travel:
Travel sales $ 14.6 $ 21.0 $ 20.5
Travel commissions and fees/sales 8.8% 7.8% 7.7%
Total segment assets $ 22.9 $ 25.1 $ 21.1
Segment capital (millions)(b) $ 3,445 $ 3,550 $ 2,239
Return on average segment capital(c) 11.3% 15.8% 25.3%
Return on average tangible segment
capital(c) 25.9% 34.3% 43.3%
Cardmember receivables:
Total receivables $ 9.8 $ 9.4 $ 11.4
90 days past billing as a % of total(d) 1.4% 2.7% 2.1%
Net loss ratio as a % of charge
volume 0.19% 0.13% 0.10%
(a) See Glossary of Selected Terminology for the definitions of certain
key terms and related information.
(b) Segment capital at the end of each respective period represents
capital allocated to a segment based upon specific business
operational needs, risk measures, and regulatory capital
requirements.
(c) Return on average segment capital is calculated by dividing
(i) segment income ($390 million, $505 million and $536 million
for 2009, 2008 and 2007, respectively) by (ii) average segment
capital ($3.4 billion, $3.2 billion and $2.1 billion for 2009, 2008
and 2007, respectively). Return on average tangible segment
capital is computed in the same manner as return on average
segment capital except the computation of average tangible
segment capital excludes average goodwill and other intangibles
of $1.9 billion, $1.7 billion and $881 million at December 31,
2009, 2008 and 2007, respectively. The Company believes the
return on average tangible segment capital is a useful measure of
the profitability of its business.
(d) A cardmember account is considered 90 days past billing if
payment has not been received within 90 days of the
cardmember’s billing statement date. In addition, if the Company
initiates collection procedures on an account prior to the account
becoming 90 days past billing, the associated cardmember
receivable balance is considered as 90 days past billing. A
cardmember account becomes past due if payment is not received
within 30 days after the billing statement date.
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