American Express 2015 Annual Report Download - page 79

TABLE 12: ICS SELECTED STATISTICAL INFORMATION
As of or for the Years Ended December 31,
(Millions, except percentages and where indicated) 2015 2014 2013 Change 2015 vs. 2014 Change 2014 vs. 2013
Card billed business (billions) .......................... $ 120.2 $ 133.8 $ 131.7 (10)% 2%
Total cards-in-force .................................. 15.2 15.7 15.7 (3) —
Basic cards-in-force .................................. 10.5 11.0 10.7 (5) 3
Average basic Card Member spending (dollars)*......... $11,459 $12,297 $12,429 (7) (1)
International Consumer Travel:
Travel sales ....................................... $ 1,304 $ 1,422 $ 1,420 (8) —
Travel commissions and fees/sales .................. 6.7% 6.8% 6.9%
Total segment assets (billions) (a) ...................... $ 35.4 $ 30.7 $ 31.1 15 (1)
Segment capital ..................................... $ 2,906 $ 2,948 $ 3,132 (1) (6)
Return on average segment capital (b) ................... 13.2% 13.6% 20.9%
Return on average tangible segment capital (b) ........... 21.3% 24.6% 38.8%
Card Member receivables:
Total receivables (billions) ........................... $ 7.0 $ 7.7 $ 7.8 (9) (1)
Net write-off rate — principal only (d) .................. 2.0% 1.9% (c)
Net write-off rate — principal and fees (d) .............. 2.2% 2.1% (c)
30+ days past due as a % of total .................... 1.4% 1.3% (c)
90+ days past billing as a % of total .................. (c) (c) 1.1%
Net loss ratio as a % of charge volume ................ (c) (c) 0.20%
Card Member loans:
Total loans (billions) ................................ $ 7.1 $ 7.7 $ 8.8 (8)% (13)%
Net write-off rate — principal only (d) .................. 1.9% 2.0% 1.9%
Net write-off rate — principal, interest and fees (d) ...... 2.4% 2.4% 2.3%
30+ days past due loans as a % of total ............... 1.6% 1.6% 1.4%
Calculation of Net Interest Yield on Card Member Loans:
Net interest income ................................ $ 697 $ 755 $ 757
Exclude:
Interest expense not attributable to the Company’s
Card Member loan portfolio ..................... 68 89 93
Interest income not attributable to the Company’s
Card Member loan portfolio ..................... (32) (39) (29)
Adjusted net interest income (e) ........................ $ 733 $ 805 $ 821
Average loans (billions) ............................... $ 7.0 $ 8.2 $ 8.5
Exclude certain non-traditional Card Member loans and
other fees (billions) ................................. (0.1) (0.2) (0.2)
Adjusted average loans (billions) (e) ..................... $ 6.9 $ 8.0 $ 8.3
Net interest income divided by average loans ............ 10.0% 9.2% 8.9%
Net interest yield on Card Member loans (e) .............. 10.6% 10.0% 9.9%
* Proprietary cards only.
(a) As of September 30, 2015, and prospectively, certain intercompany balances have been reclassified between operating segments, as a result of
systems enhancements.
(b) Return on average segment capital is calculated by dividing (i) one-year period segment income ($421 million, $411 million and $631 million for
2015, 2014 and 2013, respectively) by (ii) one-year average segment capital ($3.2 billion for 2015 and $3.0 billion for both 2014 and 2013).
Return on average tangible segment capital, a non-GAAP measure, is computed in the same manner as return on average segment capital
except the computation excludes from average segment capital average goodwill and other intangibles of $1.2 billion at December 31, 2015 and
$1.4 billion at December 31, 2014 and 2013. We believe return on average tangible segment capital is a useful measure of the profitability of our
business.
(c) Historically, due to system constraints, net loss ratio as a % of charge volume and 90 days past billing as a % of receivables were presented.
Beginning in the first quarter of 2014, as a result of system enhancements, net write-off rate — principal only, net write-off rate — principal and
fees and 30 days past due as a % of total are presented.
(d) Refer to Table 7 footnote (f).
(e) Adjusted net interest income, adjusted average loans and net interest yield on Card Member loans are non-GAAP measures. Refer to “Glossary
of Selected Terminology” for the definitions of these terms. We believe adjusted net interest income and adjusted average loans are useful to
investors because they are components of net interest yield on Card Member loans, which provides a measure of profitability of our Card
Member loan portfolio.
68