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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following is a detail of Other, net expenses for the years ended December 31:
(Millions) 2014 2013 2012
Professional services $ 3,008 $ 3,102 $ 2,963
Occupancy and equipment 1,807 1,904 1,823
Card-related fraud losses 369 278 278
Communications 383 379 383
Gain on business travel joint venture transaction (630) ——
Other(a) 1,152 1,133 1,404
Total Other, net $6,089$ 6,796 $ 6,851
(a) Other expense includes general operating expenses, gains (losses) on sale of assets or businesses not classified as discontinued operations (other than the
business travel joint venture transaction), litigation, certain internal and regulatory review-related reimbursements and insurance costs or settlements,
investment impairments and certain Loyalty Partner-related expenses.
NOTE 20
RESTRUCTURING
From time to time, the Company initiates restructuring programs to become more efficient and effective, and to support new business
strategies. In connection with these programs, the Company typically will incur severance and other exit costs.
During 2014, the Company recorded $411 million of restructuring charges, net of revisions to prior estimates. The 2014 activity primarily
relates to $313 million and $133 million of restructuring charges recorded in the fourth quarter and second quarter, respectively.
During 2012, the Company recorded $403 million of restructuring charges, net of revisions to prior estimates. The 2012 activity primarily
relates to $400 million of restructuring charges recorded in the fourth quarter.
Restructuring charges related to severance obligations are included in salaries and employee benefits in the Company’s Consolidated
Statements of Income, while charges pertaining to other exit costs are included in occupancy and equipment and other expenses.
The following table summarizes the Company’s restructuring reserves activity for the years ended December 31, 2014, 2013 and 2012:
(Millions) Severance Other(a) Total
Liability balance as of December 31, 2011 $ 170 $ 30 $ 200
Restructuring charges, net of $16 in revisions(b) 366 37 403
Payments (124) (9) (133)
Liability balance as of December 31, 2012 412 58 470
Restructuring charges, net of $4 in revisions(b) (7) 3 (4)
Payments (206) (23) (229)
Other non-cash(c) (3) (1) (4)
Liability balance at December 31, 2013 196 37 233
Restructuring charges, net of $35 in revisions(b) 383 28 411
Payments (93) (22) (115)
Other non-cash(d) (51) (8) (59)
Liability balance as of December 31, 2014(e) $435$ 35$ 470
(a) Other primarily includes facility exit and contract termination costs.
(b) Revisions primarily relate to higher than anticipated redeployments of displaced employees to other positions within the Company, business changes and
modifications to existing initiatives.
(c) Consists primarily of foreign exchange impacts.
(d) Consists of $42 million reserve transferred to the GBT JV in the second quarter of 2014 as part of the GBT sale and $17 million of foreign exchange and other
non-cash charges.
(e) The majority of cash payments related to the remaining restructuring liabilities are expected to be completed in 2015, and to a lesser extent certain contractual
long-term severance arrangements and lease obligations are expected to be completed in 2016 and 2019, respectively.
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