American Express 2009 Annual Report Download - page 77

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
expense for facility leases is recognized ratably over the lease
term, and is calculated to include adjustments for rent
concessions, rent escalations and leasehold improvement
allowances. The Company accounts for lease restoration
obligations in accordance with applicable GAAP, which
requires recognition of the fair value of restoration liabilities
when incurred, and amortization of capitalized restoration
costs over the lease term.
Software development costs
The Company capitalizes certain costs associated with the
acquisition or development of internal-use software. Once the
software is ready for its intended use, these costs are
amortized on a straight-line basis over the software’s
estimated useful life, generally 5 years.
SIGNIFICANT ACCOUNTING POLICIES
The following table identifies the Company’s other significant accounting policies, the Note and page where a detailed
description of each policy can be found.
Significant Accounting Policy
Note
Number Note Title Page
Fair Value Measurements Note 3 Fair Values of Financial Instruments Page 77
Accounts Receivable Note 4 Accounts Receivable Page 80
Loans Note 5 Loans Page 82
Investment Securities Note 6 Investment Securities Page 84
Securitization Income, Net; and Asset Securitization Note 7 Asset Securitizations Page 87
Goodwill and Other Intangible Assets Note 8 Other Assets Page 91
Membership Rewards Note 11 Other Liabilities Page 97
Derivative Financial Instruments and Hedging Activities Note 12 Derivative and Hedging Activities Page 98
Income Taxes Note 17 Income Taxes Page 108
Other Non-Interest Revenues Note 19 Details of Certain Consolidated Statements of Income Page 110
Other, Net Expense Note 19 Details of Certain Consolidated Statements of Income Page 110
Stock-based Compensation Note 20 Stock Plans Page 111
Bank Holding Company Note 23 Regulatory Matters and Capital Adequacy Page 119
Reportable Operating Segments Note 25 Reportable Operating Segments and Geographic
Operations
Page 122
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