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AMERICAN EXPRESS COMPANY
2012 FINANCIAL REVIEW
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED INCOME STATEMENT DATA
Years Ended December 31,
(Millions, except percentages) 2012 2011 2010
Change
2012 vs. 2011
Change
2011 vs. 2010
Revenues
Discount revenue, net card fees and other $ 5,005 $ 4,713 $ 4,101 $ 292 6 % $ 612 15%
Interest income 23 5 4 18 # 1 25
Interest expense (243) (224) (200) (19) 8 (24) 12
Net interest income 266 229 204 37 16 25 12
Total revenues net of interest expense 5,271 4,942 4,305 329 7 637 15
Provisions for losses 74 75 61 (1) (1) 14 23
Total revenues net of interest expense after
provisions for losses 5,197 4,867 4,244 330 7 623 15
Expenses
Marketing, promotion, rewards and
cardmember services 744 755 755 (11) (1) — —
Salaries and employee benefits and other
operating expenses 2,234 2,133 1,900 101 5 233 12
Total 2,978 2,888 2,655 90 3 233 9
Pretax segment income 2,219 1,979 1,589 240 12 390 25
Income tax provision 776 686 564 90 13 122 22
Segment income $ 1,443 $ 1,293 $ 1,025 $ 150 12 % $ 268 26%
Effective tax rate 35.0% 34.7% 35.5%
# denotes a variance greater than 100 percent.
SELECTED STATISTICAL INFORMATION
As of or for the Years Ended December 31,
(Billions, except percentages and where indicated) 2012 2011 2010
Change
2012 vs. 2011
Change
2011 vs. 2010
Global Card billed business $ 888.4 $ 822.2 $ 713.3 8 % 15%
Global Network & Merchant Services:
Total segment assets $ 16.5 $ 17.8 $ 13.6 (7)% 31%
Segment capital (millions) $ 2,048 $ 2,037 $ 1,922 1 % 6%
Return on average segment capital(a) 68.6% 66.3% 61.6%
Return on average tangible segment capital(a) 75.9% 74.3% 64.3%
Global Network Services:(b)
Card billed business $ 128.8 $ 116.8 $ 91.7 10 % 27%
Total cards-in-force (millions) 37.6 34.2 29.0 10 % 18%
(a) Return on average segment capital is calculated by dividing (i) one-year period segment income ($1.4 billion, $1.3 billion and $1.0 billion for 2012, 2011 and 2010,
respectively) by (ii) one-year average segment capital ($2.1 billion, $1.9 billion and $1.7 billion for 2012, 2011 and 2010, respectively). Return on average tangible
segment capital, a non-GAAP measure, is computed in the same manner as return on average segment capital except the computation of average tangible segment
capital, a non-GAAP measure, excludes from average segment capital average goodwill and other intangibles of $203 million, $209 million and $70 million as of
December 31, 2012, 2011 and 2010, respectively. The Company believes return on average tangible segment capital is a useful measure of the profitability of its
business.
(b) Since the third quarter of 2010, for non-proprietary retail co-brand partners, Global Network Services metrics exclude cardmember accounts which have no out-of-
store spend activity during the prior 12-month period.
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