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AMERICAN EXPRESS COMPANY
2014 FINANCIAL REVIEW
FINANCIAL REVIEW
The financial section of American Express Company’s Annual Report consists of this Financial Review, the Consolidated Financial
Statements and the Notes to the Consolidated Financial Statements. The following discussion is designed to provide perspective and
understanding regarding the consolidated financial condition and results of operations. Certain key terms are defined in the “Glossary of
Selected Terminology”.
When we use the terms “American Express,” “the Company,” “we,” “our” or “us,” we mean American Express Company and its
subsidiaries on a consolidated basis, unless we state or the context implies otherwise.
EXECUTIVE OVERVIEW
BUSINESS INTRODUCTION
We are a global services company with four reportable operating segments:U.S.CardServices(USCS),InternationalCardServices(ICS),
Global Commercial Services (GCS) and Global Network and Merchant Services (GNMS). We provide our customers with access to products,
insights and experiences that enrich lives and build business success. Our principal products and services are charge and credit payment card
products and travel-related services offered to consumers and businesses around the world. After June 30, 2014, business travel-related
services are offered through the non-consolidated joint venture, American Express Global Business Travel (GBT JV). Until June 30, 2014, the
business travel operations were wholly owned. Our range of products and services includes:
폷charge and credit card products;
폷expense management products and services;
폷travel-related services;
폷stored-value/prepaid products;
폷network services;
폷merchant acquisition and processing, servicing and settlement, and point-of-sale, marketing and information products and services for
merchants; and
폷fee services, including fraud prevention services and the design of customized customer loyalty and rewards programs.
Our products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and
large corporations. These products and services are sold through various channels, including direct mail, online applications, in-house and
third-party sales forces and direct response advertising.
We compete in the global payments industry with charge, credit and debit card networks, issuers and acquirers, as well as evolving
alternative payment providers. As the payments industry continues to evolve, we face increasing competition from non-traditional players
that leverage new technologies and customers’ existing accounts and relationships to create payment or other fee-based solutions. We are
transforming our existing businesses and creating new products and services for the digital marketplace as we seek to enhance our customers’
digital experiences and develop platforms for online and mobile commerce.
Our products and services generate the following types of revenue for the Company:
폷Discount revenue, our largest revenue source, which represents fees generally charged to merchants when Card Members use their cards to
purchase goods and services at merchants on our network;
폷Net card fees, which represent revenue earned from annual card membership fees;
폷Travel commissions and fees, which are earned by charging a transaction or management fee to both customers and suppliers for travel-
related transactions (business travel commissions and fees included through June 30, 2014);
폷Other commissions and fees, which are earned on foreign exchange conversions, card-related fees and assessments, Loyalty Partner-related
fees and other service fees;
폷Other revenue, which represents revenues arising from contracts with partners of our Global Network Services (GNS) business (including
commissions and signing fees), insurance premiums earned from Card Member travel and other insurance programs, prepaid card-related
revenues, revenues related to the GBT JV transition services agreement, earnings from equity method investments (including the GBT JV)
and other miscellaneous revenue and fees; and
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