American Express 2011 Annual Report Download - page 105

AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
GEOGRAPHIC OPERATIONS
The following table presents the Company’s total revenues net of interest expense and pretax income (loss) from continuing operations
in different geographic regions:
(Millions) United States EMEA(a) JAPA(a) LACC(a)
Other
Unallocated(b) Consolidated
2011(c)
Total revenues net of interest expense $ 21,254 $ 3,551 $ 3,071 $ 2,706 $ (620) $ 29,962
Pretax income (loss) from continuing operations $ 6,971 $ 620 $ 430 $ 583 $ (1,648) $ 6,956
2010(c)
Total revenues net of interest expense $ 19,976 $ 3,132 $ 2,630 $ 2,451 $ (607) $ 27,582
Pretax income (loss) from continuing operations $ 6,137 $ 444 $ 273 $ 469 $ (1,359) $ 5,964
2009(c)
Total revenues net of interest expense $ 17,328 $ 3,152 $ 2,229 $ 2,314 $ (687) $ 24,336
Pretax income (loss) from continuing operations $ 3,194 $ 319 $ 187 $ 276 $ (1,135) $ 2,841
(a) EMEA represents Europe, Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and Caribbean.
(b) Other Unallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on
excess liquidity funding and executive office operations expenses.
(c) The data in the above table is, in part, based upon internal allocations, which necessarily involve management’s judgment. Certain revisions and reclassifications have
been made to prior years’ amounts to conform to 2011 presentation and internal allocation methodology.
NOTE 26
PARENT COMPANY
Parent Company — Condensed Statements of Income
Years Ended December 31 (Millions) 2011 2010 2009
Revenues
Non-interest revenues
Gain on sale of securities $15$ – $ 211
Other 384
Total non-interest revenues 18 8 215
Interest income 142 136 142
Interest expense (633) (638) (562)
Total revenues net of interest expense (473) (494) (205)
Expenses
Salaries and employee benefits 173 153 111
Other 186 117 161
Total 359 270 272
Pretax loss (832) (764) (477)
Income tax benefit (346) (292) (164)
Net loss before equity in net income of
subsidiaries and affiliates (486) (472) (313)
Equity in net income of subsidiaries and
affiliates 5,385 4,529 2,450
Income from continuing operations 4,899 4,057 2,137
Income (loss) from discontinued
operations, net of tax 36 –(7)
Net income $ 4,935 $ 4,057 $ 2,130
Parent Company — Condensed Balance Sheets
As of December 31 (Millions) 2011 2010
Assets
Cash and cash equivalents $ 6,914 $ 5,267
Investment securities 360 475
Equity in net assets of subsidiaries and affiliates of
continuing operations 17,374 15,603
Accounts receivable, less reserves 53 831
Premises and equipment – at cost, less accumulated
depreciation: 2011, $44; 2010, $41 96 73
Loans to affiliates 5,132 4,942
Due from subsidiaries 1,363 1,196
Other assets 769 458
Total assets $ 32,061 $ 28,845
Liabilities and Shareholders’ Equity
Liabilities
Accounts payable and other liabilities $ 1,466 $ 1,366
Due to affiliates 823 911
Short-term affiliate debt 895 –
Long-term debt 10,083 10,338
Total liabilities 13,267 12,615
Shareholders’ equity
Common shares 232 238
Additional paid-in capital 12,217 11,937
Retained earnings 7,221 4,972
Accumulated other comprehensive loss (876) (917)
Total shareholders’ equity 18,794 16,230
Total liabilities and shareholders’ equity $ 32,061 $ 28,845
SUPPLEMENTAL DISCLOSURE
The Parent Company guarantees up to $40 million of
indebtedness under a line of credit that its subsidiary has with a
bank. As of December 31, 2011, there were no draw downs
against this line.
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