American Express 2014 Annual Report Download - page 118

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2014 and 2013, the Company’s most significant concentration of credit risk was with individuals, including Card
Member receivables and loans. These amounts are generally advanced onanunsecuredbasis.However,theCompanyreviewseachpotential
customer’s credit application and evaluates the applicant’s financial history and ability and willingness to repay. The Company also considers
credit performance by customer tenure, industry and geographic location in managing credit exposure.
The following table details the Company’s Card Member loans and receivables exposure (including unused lines-of-credit on Card Member
loans) in the U.S. and outside the U.S. as of December 31:
(Billions) 2014 2013
On-balance sheet:
U.S. $94$89
Non-U.S. 21 22
On-balance sheet(a)(b) 115 111
Unused lines-of-credit – individuals:
U.S. 234 219
Non-U.S. 44 46
Total unused lines-of-credit – individuals $278$265
(a) Represents Card Member loans to individuals as well as receivables from individuals and corporate institutions as discussed in footnotes (a) and (d) from the
previous table.
(b) The remainder of the Company’s on-balance sheet exposure includes cash, investments, other loans, other receivables and other assets including derivative
financial instruments. These balances are primarily within the U.S.
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. and operates coalition loyalty business in various countries.
폷GCS offers global corporate payment services to large and mid-sizedcompanies.TheCompany’sbusinesstraveloperations,whichhad
been included in GCS, were deconsolidated effective June 30, 2014 in connection with the GBT JV transaction.
폷GNMS operates a global payments network that 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 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 certain other businesses, including the Company’s Enterprise Growth Group and other operations, are included in
Corporate & Other.
118