American Express 2012 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2012 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OTHER INTANGIBLE ASSETS
Intangible assets, primarily customer relationships, are
amortized over their estimated useful lives of 1 to 22 years on
straight-line basis. The Company reviews intangible assets for
impairment quarterly and whenever events and circumstances
indicate that their carrying amounts may not be recoverable. In
addition, on an annual basis, the Company performs an
impairment evaluation of all intangible assets by assessing the
recoverability of the asset values based on the cash flows
generated by the relevant assets or asset groups. An impairment
is recognized if the carrying amount is not recoverable and
exceeds the asset’s fair value.
The components of other intangible assets were as follows:
2012 2011
(Millions)
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Customer relationships(a) $ 1,238 $ (526) $ 712 $ 1,223 $ (407) $ 816
Other 428 (147) 281 445 (112) 333
Total $ 1,666 $ (673) $ 993 $ 1,668 $ (519) $ 1,149
(a) Includes net intangibles acquired from airline partners of $358 million and $410 million as of December 31, 2012 and 2011, respectively, including approximately
$156 million and $195 million, respectively, from Delta.
Amortization expense for the years ended December 31, 2012, 2011 and 2010 was $198 million, $189 million and $176 million,
respectively. Intangible assets acquired in 2012 and 2011 are being amortized, on average, over 6 years and 13 years, respectively.
Estimated amortization expense for other intangible assets over the next five years is as follows:
(Millions) 2013 2014 2015 2016 2017
Estimated amortization expense $ 200 $ 170 $ 151 $ 126 $ 75
OTHER
The Company had $427 million and $332 million in affordable housing and other tax credit investment partnership interests as of
December 31, 2012 and 2011, respectively, included in other assets in the table above. The Company is a non-controlling partner in the
affordable housing and other tax credit investment partnerships. These partnership interests are accounted for in accordance with GAAP
governing equity method investments and joint ventures.
82