American Express 2015 Annual Report Download - page 166

The following table presents certain selected financial information for the Company’s reportable operating
segments and Corporate & Other as of or for the years ended December 31, 2015, 2014 and 2013:
(Millions, except where indicated) USCS ICS GCS GNMS Corporate &
Other (a) Consolidated
2015
Non-interest revenues .................................. $13,180 $4,321 $ 3,513 $5,236 $ 646 $26,896
Interest income ........................................ 6,267 939 14 98 227 7,545
Interest expense ....................................... 654 242 185 (194) 736 1,623
Total revenues net of interest expense .................... 18,793 5,018 3,342 5,528 137 32,818
Total provisions (b) ..................................... 1,453 329 148 54 4 1,988
Pretax income (loss) from continuing operations ........... 5,355 508 1,073 2,775 (1,773) 7,938
Income tax provision (benefit) ........................... 1,942 87 407 1,004 (665) 2,775
Net income (loss) ...................................... 3,413 421 666 1,771 (1,108) 5,163
Total assets (billions) (c) ................................. 117 35 18 24 (33) 161
Total equity (billions) ................................... 10.3 2.9 3.7 2.4 1.4 20.7
2014
Non-interest revenues .................................. 12,628 4,737 5,173 5,426 752 28,716
Interest income ........................................ 5,786 1,085 15 52 241 7,179
Interest expense ....................................... 604 330 240 (269) 802 1,707
Total revenues net of interest expense .................... 17,810 5,492 4,948 5,747 191 34,188
Total provisions ....................................... 1,396 370 180 93 5 2,044
Pretax income (loss) from continuing operations ........... 5,100 449 2,408 2,620 (1,586) 8,991
Income tax provision (benefit) ........................... 1,900 38 865 960 (657) 3,106
Net income (loss) ...................................... 3,200 411 1,543 1,660 (929) 5,885
Total assets (billions) (c) ................................. 113 31 19 18 (22) 159
Total equity (billions) ................................... 10.4 3.0 3.8 2.0 1.5 20.7
2013
Non-interest revenues .................................. 12,019 4,644 5,085 5,229 846 27,823
Interest income ........................................ 5,565 1,118 13 32 277 7,005
Interest expense ....................................... 693 361 245 (252) 911 1,958
Total revenues net of interest expense .................... 16,891 5,401 4,853 5,513 212 32,870
Total provisions ....................................... 1,250 388 129 67 (2) 1,832
Pretax income (loss) from continuing operations ........... 4,994 643 1,244 2,469 (1,462) 7,888
Income tax provision (benefit) ........................... 1,801 12 384 894 (562) 2,529
Net income (loss) ...................................... 3,193 631 860 1,575 (900) 5,359
Total assets (billions) (c) ................................. $ 104 $ 31 $ 19 $ 17 $ (18) $ 153
Total equity (billions) ................................... $ 9.3 $ 3.1 $ 3.7 $ 2.0 $ 1.4 $ 19.5
(a) Corporate & Other includes adjustments and eliminations for intersegment activity.
(b) Effective December 1, 2015, in the USCS segment, total provisions does not include credit costs related to Card Member loans and receivables
HFS, which are now reported in Other expenses through a valuation allowance adjustment.
(c) As of September 30, 2015, and prospectively, certain intercompany balances have been reclassified between operating segments, as a result of
systems enhancements.
Total Revenues Net of Interest Expense
The Company allocates discount revenue and certain other revenues among segments using a transfer pricing
methodology. Within the USCS, ICS and GCS segments, discount revenue reflects the issuer component of the overall
discount revenue generated by each segment’s Card Members; within the GNMS segment, discount revenue reflects
the network and acquirer component of the overall discount revenue. Net card fees and travel commissions and fees
are directly attributable to the segment in which they are reported.
Interest and fees on loans and certain investment income is directly attributable to the segment in which it is
reported. Interest expense represents an allocated funding cost based on a combination of segment funding
requirements and internal funding rates.
Provisions for Losses
The provisions for losses are directly attributable to the segment in which they are reported.
Expenses
Marketing and promotion expenses are included in each segment based on actual expenses incurred, with the
exception of brand advertising, which is primarily reflected in the GNMS and USCS segments. Rewards and Card
Member services expenses are included in each segment based on actual expenses incurred within each segment.
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