American Express 2014 Annual Report Download - page 113

AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the Company’s restructuring charges, net of revisions, by reportable operating segment and Corporate &
Other for the year ended December 31, 2014, and the cumulative amounts relating to the restructuring programs that were in progress during
2014 and initiated at various dates between 2009 and 2014.
2014
Cumulative Restructuring Expense Incurred To Date On
In-Progress Restructuring Programs
(Millions)
Total Restructuring
Charges, net
revisions Severance Other Total
USCS $38$ 66$ 6$ 72
ICS 139 220 1 221
GCS 54 249 18 267
GNMS 25 68 — 68
Corporate & Other 155 195 96 291(a)
Total $411$ 798 $ 121 $ 919(b)
(a) Corporate & Other includes certain severance and other charges of $222 million related to Company-wide support functions which were not allocatedtothe
Company’s reportable operating segments, as these were corporate initiatives, which is consistent with how such charges were reported internally.
(b) As of December 31, 2014, the total expenses to be incurred for previously approved restructuring activities that were in progress are not expected to be
materially different than the cumulative expenses incurred to date for these programs.
NOTE 21
INCOME TAXES
The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows:
(Millions) 2014 2013 2012
Current income tax expense:
U.S. federal $2,136$1,730$ 982
U.S. state and local 264 288 189
Non-U.S. 412 514 445
Total current income tax expense 2,812 2,532 1,616
Deferred income tax expense (benefit):
U.S. federal 352 113 359
U.S. state and local 39 439
Non-U.S. (97) (120) (45)
Total deferred income tax expense 294 (3) 353
Total income tax expense $3,106$ 2,529 $ 1,969
A reconciliation of the U.S. federal statutory rate of 35% percent to the Company’s actual income tax rate for the years ended December 31
on continuing operations was as follows:
2014 2013 2012
U.S. statutory federal income tax rate 35.0% 35.0% 35.0 %
(Decrease) increase in taxes resulting from:
Tax-exempt income (1.5) (1.6) (1.6)
State and local income taxes, net of federal benefit 2.7 3.1 2.5
Non-U.S. subsidiaries earnings(a) (2.2) (2.8) (5.2)
Tax settlements(b) (0.5) (1.9) (0.2)
All other 1.0 0.3 —
Actual tax rates(a) 34.5% 32.1% 30.5 %
(a) Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be
reinvested indefinitely. In addition, 2012 included tax benefits of $146 million, which decreased the actual tax rates by 2.3 percent related to the realization of
certain foreign tax credits.
(b) Relates to the resolution of tax matters in various jurisdictions.
The Company records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for
financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years
and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse.
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