American Express 2014 Annual Report Download - page 90

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OTHER INTANGIBLE ASSETS
Intangible assets, primarily customer relationships, are amortized over their estimated useful lives of 3 to 22 years on a straight-line basis.
The Company reviews intangible assets for impairment quarterly and whenever events and circumstances indicate their carrying amounts
may not be recoverable. In addition, on an annual basis, the Company performs an impairment evaluation of all intangible assets by assessing
the recoverability of the asset values based on the cash flows generated by the relevant assets or asset groups. An impairment is recognized if
the carrying amount is not recoverable and exceeds the asset’s fair value.
The components of other intangible assets were as follows:
2014 2013
(Millions)
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Customer relationships(a) $1,455$(754)$ 701$ 1,297 $ (660) $ 637
Other 255 (102) 153 269 (89) 180
Total $ 1,710 $ (856) $ 854 $ 1,566 $ (749) $ 817
(a) Includes net intangibles acquired from airline partners of $340 million and $290 million as of December 31, 2014 and 2013, respectively, including
approximately $206 million and $117 million, respectively, from Delta.
Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $174 million, $193 million and $198 million, respectively.
Intangible assets acquired in 2014 and 2013 are being amortized, on average, over 7 and 6 years, respectively.
Estimated amortization expense for other intangible assets over the next five years is as follows:
(Millions) 2015 2016 2017 2018 2019
Estimated amortization expense $ 158 $ 134 $ 117 $ 109 $ 87
OTHER
The Company had $622 million and $541 million in affordable housing and other tax credit investment partnership interests as of
December 31, 2014 and 2013, respectively, included in other assets in the table above. The Company is a non-controlling partner in these tax
credit investment partnerships, and therefore accounts for its ownership interests as equity method investment joint ventures. In 2014, the
Company received $990 million in net cash proceeds for the sale of its equity method investment in Concur Technologies (Concur) with a
carrying amount of $246 million and recognized a gain of $744 million in Other revenues.
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