American Express 2014 Annual Report Download - page 99

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other matters have progressed sufficiently through discovery and/or development of important factual information and legal issues so
that the Company is able to estimate a range of possible loss. Accordingly, for those legal proceedings and governmental examinations
disclosed or referred to in Legal Proceedings where a loss is reasonably possible in future periods, whether in excess of a related accrued
liability or where there is no accrued liability, and for which the Company is able to estimate a range of possible loss, the current estimated
range is zero to $360 million in excess of any accrued liability related to these matters. This aggregate range represents management’s
estimate of possible loss with respect to these matters and is based on currently available information. This estimated range of possible loss
does not represent the Company’s maximum loss exposure. The legal proceedings and governmental examinations underlying the estimated
rangewillchangefromtimetotimeandactualresults may vary significantly from current estimates.
Based on its current knowledge, and taking into consideration its litigation-related liabilities, the Company believes it is not a party to,
nor are any of its properties the subject of, any pending legal proceeding or governmental examination that would have a material adverse
effect on the Company’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, the
ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among
other factors, the size of the loss or liability imposed and the level of the Company’s earnings for that period.
OTHER COMMITMENTS
The Company also has obligations to make payments under contractual agreements with certain co-brand partners. The Company expects to
fully satisfy these obligations over the remaining term of these agreements, which range from 2015 to 2022, as part of the ongoing operations
of its business. The obligations under such arrangements were approximately $1.0 billion as of December 31, 2014.
RENT EXPENSE AND LEASE COMMITMENTS
The Company leases certain facilities and equipment under non-cancelable and cancelable agreements. The total rental expense amounted to
$237 million in 2014, $281 million in 2013 and $305 million in 2012.
As of December 31, 2014, the minimum aggregate rental commitment under all non-cancelable operating leases (net of subleases of $34
million) was as follows:
(Millions)
2015 $189
2016 161
2017 144
2018 126
2019 94
Thereafter 921
Total $1,635
As of December 31, 2014, the Company’s future minimum lease payments under capital leases or other similar arrangements is
approximately $4 million in 2015 through 2019, and $19 million thereafter.
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