American Express 2015 Annual Report Download - page 159

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) 2015 2014 2013
Current income tax expense:
U.S. federal .................................................................. $ 2,107 $2,136 $ 1,730
U.S. state and local ............................................................ 335 264 288
Non-U.S. ..................................................................... 416 412 514
Total current income tax expense ............................................. 2,858 2,812 2,532
Deferred income tax expense (benefit):
U.S. federal .................................................................. (23) 352 113
U.S. state and local ............................................................ (5) 39 4
Non-U.S. ..................................................................... (55) (97) (120)
Total deferred income tax expense ............................................ (83) 294 (3)
Total income tax expense ........................................................ $ 2,775 $3,106 $2,529
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:
2015 2014 2013
U.S. statutory federal income tax rate ............................................... 35.0% 35.0% 35.0%
(Decrease) increase in taxes resulting from:
Tax-exempt income ............................................................ (1.7) (1.5) (1.6)
State and local income taxes, net of federal benefit ................................. 2.8 2.7 3.1
Non-U.S. subsidiaries earnings (a) ................................................. (1.8) (2.2) (2.8)
Tax settlements (b) ............................................................. (0.2) (0.5) (1.9)
Non deductible expenses (c) ..................................................... 0.9 ——
All other ...................................................................... —1.0 0.3
Actual tax rates (a) ............................................................ 35.0% 34.5% 32.1%
(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.
(b) Relates to the resolution of tax matters in various jurisdictions.
(c) Relates to the nondeductible portion of the EG goodwill impairment.
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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