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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
RENT EXPENSE AND LEASE COMMITMENTS
The Company leases certain facilities and equipment under
noncancelable and cancelable agreements. The total rental
expense amounted to $280 million in 2011, $250 million in 2010
and $362 million in 2009 (including lease termination penalties
of $36 million).
As of December 31, 2011, the minimum aggregate rental
commitment under all noncancelable operating leases (net of
subleases of $27 million) was as follows:
(Millions)
2012 $ 255
2013 221
2014 201
2015 160
2016 119
Thereafter 1,048
Total $ 2,004
As of December 31, 2011, the Company’s future minimum lease
payments under capital leases or other similar arrangements is
approximately $11 million per annum from 2012 through 2013,
$12 million in 2014, $5 million in 2015 through 2016, and $29
million thereafter.
NOTE 25
REPORTABLE OPERATING SEGMENTS
AND GEOGRAPHIC OPERATIONS
REPORTABLE OPERATING SEGMENTS
The Company is a leading global payments and travel company
that is principally engaged in businesses comprising four
reportable operating segments: USCS, ICS, GCS and GNMS.
The Company considers a combination of factors when
evaluating the composition of its reportable operating segments,
including the results reviewed by the chief operating decision
maker, economic characteristics, products and services offered,
classes of customers, product distribution channels, geographic
considerations (primarily United States versus non-U.S.), and
regulatory environment considerations. The following is a brief
description of the primary business activities of the Company’s
four reportable operating segments:
폷USCS issues a wide range of card products and services to
consumers and small businesses in the United States, and
provides consumer travel services to cardmembers and other
consumers.
폷ICS issues proprietary consumer and small business cards
outside the United States.
폷GCS offers global corporate payment and travel-related
products and services to large and mid-sized companies.
폷GNMS operates a global payments network which processes
and settles proprietary and non-proprietary card
transactions. GNMS acquires merchants and provides
point-of-sale products, multi-channel marketing programs
and capabilities, services and data, leveraging the Company’s
global closed-loop network. It provides ATM services and
enters into partnership agreements with third-party card
issuers and acquirers, licensing the American Express brand
and extending the reach of the global network.
Corporate functions and auxiliary businesses, including the
Company’s publishing business, the Enterprise Growth Group
(including the Global Prepaid Group), as well as other company
operations are included in Corporate & Other.
Beginning in the first quarter of 2011, the Company changed
its segment allocation methodology to better align segment
reporting with the Company’s previously announced
management reorganization, which had been implemented over
the several prior quarters. The reorganization included the
formation of the Enterprise Growth Group, which is reported in
Corporate & Other. The group consists of three core business
units: Online and Mobile, Fee Based Services and Global
Payment Options (formerly known as Global Prepaid). Starting
in the first quarter of 2011, certain business activities such as
LoyaltyEdge and Foreign Exchange Services (formerly known as
Global Foreign Exchange Services) that were previously managed
andreportedintheUSCSandGCSoperatingsegments,
respectively, are now managed by Enterprise Growth. The
reorganization also included consolidation of certain corporate
support functions into the Global Services organization. Greater
centralization of activities has led to modifications in the costs
being allocated from Corporate & Other to the reportable
operating segments starting in the first quarter of 2011. Prior
period segment results have been revised for these changes.
101