American Express 2013 Annual Report Download - page 104

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OTHER CONTINGENCIES
The Company also has contingent obligations to make payments
under contractual agreements entered into as part of the ongoing
operation of the Company’s business, primarily with co-brand
partners. The contingent obligations under such arrangements were
approximately $2.8 billion as of December 31, 2013.
RENT EXPENSE AND LEASE COMMITMENTS
The Company leases certain facilities and equipment under
noncancelable and cancelable agreements. The total rental expense
amounted to $281 million in 2013 (including lease termination
penalties of $6 million), $305 million in 2012 (including lease
termination penalties of $13 million) and $280 million in 2011.
As of December 31, 2013, the minimum aggregate rental commitment
under all noncancelable operating leases (net of subleases of $23
million) was as follows:
(Millions)
2014 $ 237
2015 196
2016 157
2017 132
2018 114
Thereafter 922
Total $ 1,758
As of December 31, 2013, the Company’s future minimum lease
payments under capital leases or other similar arrangements is
approximately $11 million in 2014, $4 million in 2015 through 2018,
and $14 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
U.S. 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 U.S., and provides consumer
travel services to Card Members and other consumers.
폷ICS issues proprietary consumer and small business cards outside
the U.S.
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 Enterprise Growth Group (including Global Payment
Options) and other Company operations, are included in Corporate &
Other.
102