American Express 2015 Annual Report Download - page 78

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Salaries and employee benefits and other operating expenses decreased $275 million or 11 percent in 2015
compared to 2014, primarily due to restructuring charges in 2014.
Total expenses increased $303 million or 7 percent in 2014 compared to 2013, primarily driven by higher
marketing and promotion expenses, higher Loyalty Partner expenses and higher restructuring charges in 2014.
INCOME TAXES
The effective tax rate in all periods reflects the recurring permanent tax benefit related to the segment’s ongoing
funding activities outside the United States, in relation to the levels of pretax income. The benefit is allocated to ICS
under our internal tax allocation process. The effective tax rates for 2015 and 2013 also include the allocated share of
tax benefits related to the resolution of certain prior-years’ items. In addition, the effective tax rate in each of the
periods reflects the impact of recurring permanent tax benefits on varying levels of pretax income.
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