4Q 06 ER Tables Final

Transcrição

All information in the following tables is presented on a basis prepared in accordance with U.S. generally accepted accounting
principles (GAAP), unless otherwise indicated. Amounts herein reflect certain reclassifications as noted in the Company's Form 8-K
dated April 5, 2006 filed with the Securities and Exchange Commission.
(Preliminary)
American Express Company
Consolidated Statements of Income
(Millions)
Quarters Ended
December 31,
2006
2005
Net revenues
Discount revenue
Cardmember lending finance charge revenue, net of interest
Net card fees
Travel commissions and fees
Other commissions and fees
Securitization income, net
Other investment and interest income, net of interest
Other
Total
Expenses
Marketing, promotion, rewards
and cardmember services
Human resources
Provision for losses and benefits:
Charge card
Cardmember lending
Investment certificates and other
Total
Professional services
Occupancy and equipment
Interest
Communications
Other
Total
Pretax income from continuing operations
Income tax provision
Income from continuing operations
(Loss)/Income from discontinued operations, net of tax
Net income
$
$
3,458
990
479
450
654
347
265
565
7,208
$
Years Ended
December 31,
Percentage
Inc/(Dec)
2006
12 %
41
(8)
3
4
18
(5)
33
13
1,734
1,336
1,581
1,177
10
14
6,516
5,065
5,841
4,829
12
5
277
484
130
891
807
405
338
116
358
5,985
1,223
298
925
(3)
922
290
415
108
813
714
390
249
115
382
5,421
959
208
751
(6)
745
(4)
17
20
10
13
4
36
1
(6)
10
28
43
23
(50)
24
935
1,623
529
3,087
2,710
1,491
1,236
449
1,254
21,808
5,328
1,599
3,729
(22)
3,707
1,038
1,349
386
2,773
2,308
1,428
920
457
1,264
19,820
4,248
1,027
3,221
513
3,734
(10)
20
37
11
17
4
34
(2)
(1)
10
25
56
16
#
(1)
$
12,978
3,457
1,994
1,778
2,555
1,489
1,078
1,807
27,136
$
$
11,489
2,580
2,033
1,780
2,375
1,260
1,055
1,496
24,068
Percentage
Inc/(Dec)
3,096
703
518
435
630
295
279
424
6,380
$
$
2005
13 %
34
(2)
8
18
2
21
13
# - Denotes a variance of more than 100%.
8
(Preliminary)
Condensed Consolidated Balance Sheets
(Billions)
Assets
Cash and cash equivalents
Accounts receivable
Investments
Loans
Other assets
Total assets
Liabilities and Shareholders' Equity
Short-term debt
Long-term debt
Other liabilities
Total liabilities
Shareholders' equity
Total liabilities and shareholders' equity
December 31,
2006
December 31,
2005
$
8
39
21
50
10
128
$
15
43
59
117
$
$
$
$
11
128
$
$
7
35
21
41
10
114
16
31
56
103
11
114
9
(Preliminary)
Financial Summary
(Millions)
Quarters Ended
December 31,
2006
2005
Net Revenues
U.S. Card Services
International Card & Global Commercial Services
Global Network & Merchant Services
$
Corporate & Other,
including adjustments and eliminations
CONSOLIDATED NET REVENUES
Pretax Income (Loss) From Continuing Operations
U.S. Card Services
Net Income (Loss)
U.S. Card Services
3,181
2,299
725
6,205
175
18
6
20
14
2006
%
$
(14)
Percentage
Inc/(Dec)
2005
13,955
9,464
3,161
26,580
$
556
27,136
$
11,978
8,905
2,747
23,630
17
6
15
12
438
27
24,068
13
$
7,208
$
6,380
13
$
$
770
262
297
1,329
(106)
$
538
290
252
1,080
(121)
43
(10)
18
23
(12)
$
3,305
1,148
1,188
5,641
(313)
$
2,571
1,093
882
4,546
(298)
29
5
35
24
5
$
1,223
$
959
28
$
5,328
$
4,248
25
$
535
231
201
967
(42)
925
(3)
$
414
233
166
813
(62)
751
(6)
29
(1)
21
19
(32)
23
(50)
$
2,277
885
779
3,941
(212)
3,729
(22)
$
1,816
899
573
3,288
(67)
3,221
513
25
(2)
36
20
#
16
#
$
922
$
745
24
$
3,707
$
3,734
(1)
Corporate & Other
NET INCOME
$
150
Corporate & Other
PRETAX INCOME FROM CONTINUING OPERATIONS
3,756
2,433
869
7,058
Years Ended
December 31,
Percentage
Inc/(Dec)
%
10
(Preliminary)
Financial Summary (continued)
Quarters Ended
December 31,
2006
2005
Years Ended
December 31,
Percentage
Inc/(Dec)
2006
2005
Percentage
Inc/(Dec)
EARNINGS PER COMMON SHARE
BASIC
(Loss)/Income from discontinued operations
Net income
$
$
Average common shares outstanding (millions)
DILUTED
Net income
$
$
1,196
$
$
Cash dividends declared per common share
0.77
0.77
0.76
(0.01)
0.75
$
$
1,224
$
0.15
$
%
$
%
$
0.61
(0.01)
0.60
26
#
28
1,232
(3) %
0.60
(0.01)
0.59
27
27
1,258
(3) %
0.12
25
$
$
1,212
%
$
%
$
%
3.08
(0.02)
3.06
3.01
(0.02)
2.99
1,233
$
$
1,238
$
0.57
2.61
0.42
3.03
2.56
0.41
2.97
1,258
$
0.48
18
#
1
%
%
(2) %
18
#
1
%
%
(2) %
19
%
Selected Statistical Information
Quarters Ended
December 31,
2006
2005
Return on average total shareholders' equity (A)
Common shares outstanding (millions)
Book value per common share
Shareholders' equity (billions)
$
$
34.7%
1,199
8.76
10.5
$
$
25.4%
1,241
8.50
10.5
Years Ended
December 31,
Percentage
Inc/(Dec)
(3) %
3 %
- %
2006
$
$
34.7%
1,199
8.76
10.5
2005
$
$
25.4%
1,241
8.50
10.5
Percentage
Inc/(Dec)
(3) %
3 %
- %
(A) Computed on a trailing 12-month basis using net income over average total shareholders' equity (including discontinued
operations) as included in the Consolidated Financial Statements prepared in accordance with GAAP.
11
(Preliminary)
(Billions, except percentages and where indicated)
Quarters Ended
December 31,
2006
2005
Card billed business (A):
United States
Outside the United States
Total
$
$
109.7
43.8
153.5
$
$
Years Ended
December 31,
Percentage
Inc/(Dec)
96.9
35.7
132.6
13 %
23
16
2006
$
$
406.8
154.7
561.5
2005
$
$
Percentage
Inc/(Dec)
354.6
129.8
484.4
15 %
19
16
Total cards-in-force (millions) (A):
United States
Total
48.1
29.9
78.0
43.0
28.0
71.0
12 %
7
10
48.1
29.9
78.0
43.0
28.0
71.0
12 %
7
10
Basic cards-in-force (millions) (A):
United States
Total
37.1
25.4
62.5
32.8
23.2
56.0
13 %
9
12
37.1
25.4
62.5
32.8
23.2
56.0
13 %
9
12
2.55%
2,778
35
5.2
8.4%
7 %
- %
6 %
$
$
$
- %
- %
- %
$
$
$
19.7
7.0
7.7
4.9%
7.6%
$
$
$
19.7
7.1
7.8
5.1%
7.9%
- %
(1) %
(1) %
1 %
11 %
$
$
7.2
22.5
$
$
7.1
20.3
1 %
11 %
Average discount rate (B)
Average basic cardmember spending (dollars) (A)
Average fee per card (dollars) (A) (C)
Travel sales
Travel commissions and fees/sales
Worldwide Travelers Cheque and prepaid products:
Sales
Average outstanding
Average investments
Investment yield (D)
Tax equivalent yield - managed (D)
International banking:
Total loans
Private banking holdings
$
$
$
2.55%
2,985
35
5.5
8.2%
$
$
$
$
$
$
4.8
6.9
7.6
4.9%
7.5%
$
$
$
4.8
6.9
7.6
5.1%
7.9%
$
$
7.2
22.5
$
$
7.1
20.3
2.57%
11,201
35
21.8
8.2%
$
$
$
2.58%
10,445
35
20.6
8.6%
7 %
- %
6 %
(A) Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements and certain
insurance fees charged on proprietary cards. Cards-in-force include proprietary cards and cards issued under network partnership agreements. Average basic
cardmember spending and average fee per card are computed from proprietary card activities only.
(B) Computed as follows: Discount Revenue from all card spending (proprietary and Global Network Services) at merchants divided by all billed business (proprietary
and Global Network Services) generating discount revenue at such merchants. Only merchants acquired by the Company are included in the computation.
(C) Average fee per card are computed based on net card fees excluding the amortization of deferred acquisition costs.
(D) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents earnings on such tax-exempt securities as if it
had been earned on a taxable basis and assumes an income tax-rate of 35 percent.
12
(Preliminary)
Selected Statistical Information (continued)
Quarters Ended
December 31,
2006
Worldwide cardmember receivables:
Total receivables
90 days past due as a % of total
Loss reserves (millions):
% of receivables
% of 90 days past due
Net loss ratio as a % of charge volume
Worldwide cardmember lending - owned basis (A):
Total loans
30 days past due loans as a % of total
Beginning balance
Provision
Net write-offs
Other
Ending balance
% of loans
% of past due
Average loans
Net write-off rate
Net finance charge revenue(B)/average loans
Worldwide cardmember lending - managed basis (C):
Total loans
Beginning balance
Provision
Net write-offs
Other
Ending balance
% of loans
% of past due
Average loans
Net write-off rate
$
2005
37.4
1.8%
981
2.6%
147%
0.26%
$
$
43.3
2.7%
$
33.1
2.5%
$
1,126
451
(405)
(1)
1,171
$
952
374
(323)
(7)
996
$
$
$
2.7%
98%
40.2
4.0%
9.8%
$
$
$
34.2
1.6%
942
2.8%
177%
0.29%
3.0%
122%
31.0
4.2%
9.0%
$
63.5
2.6%
$
54.3
2.4%
$
1,571
608
(557)
1,622
$
1,401
671
(596)
(7)
1,469
$
$
2.6%
97%
60.4
3.7%
9.5%
$
$
2.7%
114%
51.9
4.6%
9.4%
Years Ended
December 31,
Percentage
Inc/(Dec)
2006
9
%
$
4
%
$
31
%
18 %
21
25
(86)
18
2005
37.4
1.8%
981
2.6%
147%
0.24%
$
$
43.3
2.7%
$
996
1,507
(1,359)
27
1,171
$
2.7%
98%
36.5
3.7%
9.5%
34.2
1.6%
942
2.8%
177%
0.26%
9
%
4
%
$
33.1
2.5%
31
%
$
972
1,227
(1,155)
(48)
996
2
23
18
#
18
%
3.0%
122%
28.3
4.1%
9.1%
29
%
17
%
$
$
30
%
$
17
%
$
63.5
2.6%
$
54.3
2.4%
12 %
(9)
(7)
#
10
$
1,469
1,991
(1,933)
95
1,622
$
1,475
2,097
(2,055)
(48)
1,469
16
%
$
$
2.6%
97%
56.9
3.4%
9.4%
Percentage
Inc/(Dec)
$
$
$
2.7%
114%
48.9
4.2%
9.3%
- %
(5)
(6)
#
10
16
%
(A) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets.
(B) Computed on an annualized basis.
(C) Includes on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans. The difference between
the "owned basis" (GAAP) information and "managed basis" information is attributable to the effects of securitization
activities. Refer to the information set forth under U.S. Card Services Selected Financial Information on page 20 for further
discussion of the managed basis presentation.
13
(Preliminary)
Consolidated Statements of Income
(Millions)
December 31,
2006
Net revenues
Discount revenue
Cardmember lending finance charge revenue, net of interest
Net card fees
Travel commissions and fees
Other commissions and fees
Other investment and interest income, net of interest
Other
Total
Expenses
Human resources
Provision for losses and benefits:
Charge card
Cardmember lending
Investment certificates and other
Total
Professional services
Occupancy and equipment
Interest
Communications
Other
Total
Pretax income from continuing operations
Net income
$
$
3,458
990
479
450
654
347
265
565
7,208
September 30,
2006
Quarters Ended
June 30,
2006
$
$
3,259
912
462
427
620
384
264
431
6,759
3,292
839
533
483
642
372
274
415
6,850
March 31,
2006
$
2,969
716
520
418
639
386
275
396
6,319
December 31,
2005
$
3,096
703
518
435
630
295
279
424
6,380
1,734
1,336
1,589
1,213
1,671
1,276
1,522
1,240
1,581
1,177
277
484
130
891
807
405
338
116
358
5,985
1,223
298
925
(3)
922
257
412
129
798
684
375
324
107
331
5,421
1,338
382
956
11
967
192
406
132
730
658
365
308
113
287
5,408
1,442
470
972
(27)
945
209
321
138
668
561
346
266
113
278
4,994
1,325
449
876
(3)
873
290
415
108
813
714
390
249
115
382
5,421
959
208
751
(6)
745
$
$
$
$
14
(Preliminary)
Financial Summary
(Millions)
December 31,
2006
Net Revenues
U.S. Card Services
$
Corporate & Other,
including adjustments and eliminations
CONSOLIDATED NET REVENUES
Pretax Income (Loss) From Continuing Operations
U.S. Card Services
Net Income (Loss)
U.S. Card Services
$
$
3,534
2,287
798
6,619
140
3,485
2,441
789
6,715
March 31,
2006
$
135
3,180
2,303
705
6,188
December 31,
2005
$
131
3,181
2,299
725
6,205
175
$
7,208
$
6,759
$
6,850
$
6,319
$
6,380
$
770
262
297
1,329
(106)
$
819
281
314
1,414
(76)
$
920
294
315
1,529
(87)
$
796
311
262
1,369
(44)
$
538
290
252
1,080
(121)
$
1,223
$
1,338
$
1,442
$
1,325
$
959
$
535
231
201
967
(42)
925
(3)
$
580
216
212
1,008
(52)
956
11
$
616
225
200
1,041
(69)
972
(27)
$
546
213
166
925
(49)
876
(3)
$
414
233
166
813
(62)
751
(6)
$
922
$
967
$
945
$
873
$
745
Corporate & Other
NET INCOME
Quarters Ended
June 30,
2006
150
Corporate & Other
PRETAX INCOME FROM CONTINUING OPERATIONS
3,756
2,433
869
7,058
September 30,
2006
15
(Preliminary)
Financial Summary (continued)
December 31,
2006
September 30,
2006
Quarters Ended
June 30,
2006
$
$
March 31,
2006
December 31,
2005
EARNINGS PER COMMON SHARE
BASIC
Net income
$
$
DILUTED
Net income
$
1,196
$
$
Cash dividends declared per common share
0.77
0.77
0.76
(0.01)
0.75
0.15
$
1,202
$
$
1,224
$
0.79
0.01
0.80
0.78
0.01
0.79
0.15
$
$
1,217
$
$
1,227
$
0.80
(0.02)
0.78
0.78
(0.02)
0.76
0.15
$
$
1,232
$
$
1,242
$
0.71
0.71
0.70
(0.01)
0.69
1,232
$
$
1,258
$
0.12
0.61
(0.01)
0.60
0.60
(0.01)
0.59
1,258
$
0.12
December 31,
2006
Return on average total shareholders' equity (A)
Common shares outstanding (millions)
Book value per common share
Shareholders' equity (billions)
$
$
34.7%
1,199
8.76
10.5
September 30,
2006
$
$
33.6%
1,204
8.93
10.8
Quarters Ended
June 30,
2006
$
$
29.8%
1,216
8.62
10.5
March 31,
2006
$
$
27.3%
1,233
8.60
10.6
December 31,
2005
$
$
25.4%
1,241
8.50
10.5
(A) Computed on a trailing 12-month basis using net income over average total shareholders' equity (including discontinued operations) as included in the Consolidated Financial
Statements prepared in accordance with GAAP.
16
(Preliminary)
December 31,
2006
Card billed business (A):
United States
Total
$
$
Total cards-in-force (millions) (A):
United States
Total
Basic cards-in-force (millions) (A):
United States
Total
Average discount rate (B)
Average quarterly basic cardmember spending (dollars) (A)
Average fee per card (dollars) (A) (C)
Travel sales
Sales
Average outstanding
Average investments
Investment yield (D)
Tax equivalent yield - managed (D)
Total loans
$
$
$
109.7
43.8
153.5
September 30,
2006
Quarters Ended
June 30,
2006
$
$
$
101.7
38.6
140.3
$
102.5
38.0
140.5
March 31,
2006
$
$
92.9
34.3
127.2
December 31,
2005
$
$
96.9
35.7
132.6
48.1
29.9
78.0
46.8
29.7
76.5
45.4
29.0
74.4
44.0
28.5
72.5
43.0
28.0
71.0
37.1
25.4
62.5
36.0
25.2
61.2
34.8
24.1
58.9
33.7
23.6
57.3
32.8
23.2
56.0
2.55%
2,985
35
5.5
8.2%
$
$
$
2.57%
2,770
34
5.1
8.4%
$
$
$
2.57%
2,821
34
5.9
8.2%
$
$
$
2.58%
2,612
34
5.3
7.9%
$
$
$
2.55%
2,778
35
5.2
8.4%
$
$
$
4.8
6.9
7.6
4.9%
7.5%
$
$
$
5.6
7.2
7.9
4.9%
7.5%
$
$
$
5.1
7.0
7.6
5.0%
7.7%
$
$
$
4.2
6.9
7.7
5.0%
7.7%
$
$
$
4.8
6.9
7.6
5.1%
7.9%
$
$
7.2
22.5
$
$
7.2
22.0
$
$
7.2
21.2
$
$
7.2
20.8
$
$
7.1
20.3
(A) Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements and certain insurance fees
charged on proprietary cards. Cards-in-force include proprietary cards and cards issued under network partnership agreements. Average basic cardmember spending and average fee
per card are computed from proprietary card activities only.
(B) Computed as follows: Discount Revenue from all card spending (proprietary and Global Network Services) at merchants divided by all billed business (proprietary and Global
Network Services) generating discount revenue at such merchants. Only merchants acquired by the Company are included in the computation.
(C) Average fee per card are computed based on net card fees excluding the amortization of deferred acquisition costs.
(D) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents earnings on such tax-exempt securities as if it had been earned
on a taxable basis and assumes an income tax-rate of 35 percent.
17
(Preliminary)
Selected Statistical Information (continued)
December 31,
2006
Worldwide cardmember receivables:
Total receivables
% of receivables
% of 90 days past due
Worldwide cardmember lending - owned basis (A):
Total loans
Beginning balance
Provision
Net write-offs
Other
Ending balance
% of loans
% of past due
Average loans
Net write-off rate
Worldwide cardmember lending - managed basis (C):
Total loans
Beginning balance
Provision
Net write-offs
Other
Ending balance
% of loans
% of past due
Average loans
Net write-off rate
$
September 30,
2006
37.4
1.8%
981
2.6%
147%
0.26%
$
$
43.3
2.7%
$
1,126
451
(405)
(1)
1,171
2.7%
98%
40.2
4.0%
9.8%
$
$
$
Quarters Ended
June 30,
2006
35.0
1.8%
947
2.7%
149%
0.26%
$
$
38.3
2.8%
$
1,086
381
(353)
12
1,126
2.9%
106%
37.5
3.8%
9.6%
$
$
$
March 31,
2006
34.7
1.8%
948
2.7%
150%
0.24%
$
$
36.3
2.7%
$
1,053
376
(331)
(12)
1,086
3.0%
113%
35.2
3.8%
9.6%
$
$
$
December 31,
2005
33.2
1.8%
978
2.9%
163%
0.19%
$
$
32.7
2.6%
$
33.1
2.5%
$
996
299
(270)
28
1,053
3.2%
123%
32.4
3.3%
8.9%
$
952
374
(323)
(7)
996
3.0%
122%
31.0
4.2%
9.0%
$
$
$
$
$
$
34.2
1.6%
942
2.8%
177%
0.29%
$
63.5
2.6%
$
58.5
2.7%
$
56.5
2.5%
$
53.5
2.5%
$
54.3
2.4%
$
1,571
608
(557)
1,622
2.6%
97%
60.4
3.7%
9.5%
$
1,546
512
(498)
11
1,571
2.7%
101%
57.6
3.5%
9.6%
$
1,554
478
(474)
(12)
1,546
2.7%
110%
55.3
3.4%
9.5%
$
1,469
393
(404)
96
1,554
2.9%
116%
53.7
3.0%
9.1%
$
1,401
671
(596)
(7)
1,469
2.7%
114%
51.9
4.6%
9.4%
$
$
$
$
$
$
$
$
$
$
(A) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets
(C) Includes on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans. The difference between the "owned basis"
(GAAP) information and "managed basis" information is attributable to the effects of securitization activities. Refer to the information set forth
under U.S. Card Services Selected Financial Information on page 20 for further discussion of the managed basis presentation.
18
(Preliminary)
U.S. Card Services
Selected Income Statement Data
(Millions)
Quarters Ended
December 31,
2006
Net revenues:
Discount revenue, net card fees and other
Cardmember lending:
Finance charge revenue
Interest expense
Net finance charge revenue
Total net revenues
Expenses:
Provision for losses
Human resources and other operating expenses
Total expenses
Pretax segment income
Segment income
$
$
2,679
2005
$
Years Ended
December 31,
Percentage
Inc/(Dec)
2006
12 %
1,018
288
730
347
3,756
685
200
485
295
3,181
49
44
51
18
18
3,434
957
2,477
1,489
13,955
2,408
616
1,792
1,260
11,978
43
55
38
18
17
1,242
526
1,218
2,986
770
235
535
1,097
509
1,037
2,643
538
124
414
13
3
17
13
43
90
29
4,509
1,630
4,511
10,650
3,305
1,028
2,277
3,911
1,676
3,820
9,407
2,571
755
1,816
15
(3)
18
13
29
36
25
$
9,989
$
$
8,926
Percentage
Inc/(Dec)
2,401
$
$
2005
12 %
19
(Preliminary)
U.S. Card Services
Selected Financial Information
Managed Basis Presentation
(Millions)
Quarters Ended
December 31,
2006
2005
Income Statement Data
Reported for the period (GAAP)
Securitization adjustments
Tax adjustments
Managed discount revenue, net card fees and other
Managed net finance charge revenue
Managed securitization income, net
Managed provision for losses
$
$
$
$
$
$
$
$
2,679
56
53
2,788
730
450
1,180
347
(347)
-
526
153
679
$
$
$
$
$
$
$
$
Years Ended
December 31,
2006
2005
Percentage
Inc/(Dec)
2,401
53
56
2,510
485
518
1,003
12 %
6
(5)
11
51
(13)
18
295
(295)
-
18
18
-
509
287
796
3
(47)
(15)
$
$
$
$
$
$
$
$
9,989
199
217
10,405
2,477
1,880
4,357
1,489
(1,489)
-
1,630
550
2,180
$
$
$
$
8,926
210
226
9,362
12 %
(5)
(4)
11
1,792
1,953
3,745
38
(4)
16
$
1,260
(1,260)
$
-
$
$
Percentage
Inc/(Dec)
1,676
924
2,600
18
18
-
(3)
(40)
(16)
For U.S. Card Services, the managed basis presentation reflects an increase to interest income recorded to enable management to evaluate tax exempt investments
on a basis consistent with taxable investment securities. On a GAAP basis, interest income associated with tax exempt investments is recorded based on amounts
earned. Accordingly, information presented on a managed basis assumes that tax exempt securities earned income at rates as if the securities produced taxable
income with a corresponding increase in the provision for income taxes.
The managed basis presentation also assumes that there have been no off balance sheet securitization transactions, i.e., all securitized cardmember loans and
related income effects are reflected as if they were in the Company's balance sheets and income statements, respectively. For the managed basis presentation,
revenue and expenses related to securitized cardmember loans are reflected in net card fees and other, net finance charge revenue, and credit provision. On a
managed basis, there is no securitization income, net, as the managed basis presentation assumes no securitization transactions have occurred.
The Company presents U.S. Card Services information on a managed basis because that is the way the Company's management views and manages the business.
Management believes that a full picture of trends in the Company's cardmember lending business can only be derived by evaluating the performance of both
securitized and non-securitized cardmember loans. Management also believes that use of a managed basis presentation presents a more accurate picture of the key
dynamics of the cardmember lending business. Irrespective of the on and off-balance sheet funding mix, it is important for management and investors to see
metrics for the entire cardmember lending portfolio because they are more representative of the economics of the aggregate cardmember relationships and
ongoing business performance and trends over time. It is also important for investors to see the overall growth of cardmember loans and related revenue in order
to evaluate market share. These metrics are significant in evaluating the Company's performance and can only be properly assessed when all non-securitized and
securitized cardmember loans are viewed together on a managed basis. The Company does not currently securitize international loans.
20
(Preliminary)
U.S. Card Services
Selected Financial Information
Managed Basis Presentation
(Millions)
December 31,
2006
Income Statement Data
Tax adjustments
Managed discount revenue, net card fees and other
Managed net finance charge revenue
Managed securitization income, net
Managed provision for losses
$
$
$
$
$
$
$
$
2,679
56
53
2,788
730
450
1,180
347
(347)
-
526
153
679
September 30,
2006
Quarters Ended
June 30,
2006
$
$
$
$
$
$
$
$
$
2,482
51
55
2,588
668
475
1,143
384
(384)
-
446
144
590
$
$
$
$
$
$
$
2,514
44
54
2,612
599
469
1,068
372
(372)
-
351
127
478
March 31,
2006
$
$
$
$
$
$
$
$
2,314
48
55
2,417
480
486
966
386
(386)
-
307
126
433
December 31,
2005
$
$
$
$
$
$
$
$
2,401
53
56
2,510
485
518
1,003
295
(295)
-
509
287
796
See prior page for discussion of managed basis presentation.
21
(Preliminary)
U.S. Card Services
Quarters Ended
December 31,
2006
2005
Card billed business
Total cards-in-force (millions)
Basic cards-in-force (millions)
Average basic cardmember spending (dollars)
U.S. Consumer Travel
Travel sales (millions)
Sales
Average outstanding
Average investments
Investment yield (A)
Tax equivalent yield - managed (A)
Total segment assets
Segment capital
Return on segment capital (B)
Cardmember receivables:
Total receivables
Cardmember lending - owned basis (C):
Total loans
Average loans
Net write-off rate
Net finance charge revenue(D)/average loans
Cardmember lending - managed basis (E):
Total loans
Average loans
Net write-off rate
$
$
90.8
40.7
30.1
3,044
$
$
Years Ended
December 31,
Percentage
Inc/(Dec)
80.8
37.5
27.7
2,945
2006
12
9
9
3
%
$
%
$
333.4
40.7
30.1
11,521
2005
$
$
292.8
37.5
27.7
10,996
Percentage
Inc/(Dec)
14
9
9
5
%
%
27
%
$
597
8.2%
$
475
8.4%
26
%
$
2,357
8.4%
$
1,853
8.7%
$
$
$
4.8
6.9
7.6
4.9%
7.5%
$
$
$
4.8
6.9
7.6
5.1%
7.9%
-
%
%
%
$
$
$
19.7
7.0
7.7
4.9%
7.6%
$
$
$
19.7
7.1
7.8
5.1%
7.9%
- %
(1) %
(1) %
$
$
79.7
5.0
46.2%
$
$
70.3
5.1
38.9%
13 %
(2) %
$
$
79.7
5.0
46.2%
$
$
70.3
5.1
38.9%
13 %
(2) %
$
20.6
2.1%
0.32%
$
19.2
1.8%
0.38%
7
%
$
20.6
2.1%
0.28%
$
19.2
1.8%
0.30%
7
%
$
33.6
2.7%
30.9
3.5%
9.4%
$
24.8
2.3%
23.2
4.1%
8.4%
35
%
$
$
%
%
$
24.8
2.3%
21.0
3.9%
8.5%
35
33
33.6
2.7%
27.6
3.0%
9.0%
31
%
17
%
$
17
%
16
%
$
16
%
$
$
$
53.8
2.6%
51.1
3.3%
9.2%
$
$
$
46.0
2.3%
44.1
4.6%
9.1%
53.8
2.6%
48.0
2.9%
9.1%
$
$
$
46.0
2.3%
41.5
4.1%
9.0%
(A) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents
earnings on such tax-exempt securities as if it had been earned on a taxable basis and assumes an income tax-rate of 35 percent.
(B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific
business operational needs, risk measures and regulatory capital requirements.
(C) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets.
(D) Computed on an annualized basis.
(E) Includes on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans. The difference between the "owned basis" (GAAP) information and
"managed basis" information is attributable to the effects of securitization activities. Refer to the information set forth under U.S. Card Services Selected Financial Information on
page 20 for further discussion of the managed basis presentation.
22
(Preliminary)
U.S. Card Services
(Millions)
December 31,
2006
Net revenues:
Cardmember lending:
Interest expense
Total net revenues
Expenses:
Total expenses
Segment income
$
$
2,679
September 30,
2006
Quarters Ended
June 30,
2006
$
$
2,482
2,514
March 31,
2006
$
2,314
December 31,
2005
$
2,401
1,018
288
730
347
3,756
928
260
668
384
3,534
814
215
599
372
3,485
674
194
480
386
3,180
685
200
485
295
3,181
1,242
526
1,218
2,986
770
235
535
1,127
446
1,142
2,715
819
239
580
1,106
351
1,108
2,565
920
304
616
1,034
307
1,043
2,384
796
250
546
1,097
509
1,037
2,643
538
124
414
$
$
$
$
23
(Preliminary)
U.S. Card Services
December 31,
2006
Average quarterly basic cardmember spending (dollars)
U.S. Consumer Travel
Travel sales
Sales
Average outstanding
Average investments
Investment yield (A)
Tax equivalent yield - managed (A)
Segment capital
Total receivables
Cardmember lending - owned basis (C):
Total loans
Average loans
Net write-off rate
Cardmember lending - managed basis (E):
Total loans
Average loans
Net write-off rate
$
$
90.8
40.7
30.1
3,044
September 30,
2006
Quarters Ended
June 30,
2006
$
$
$
83.4
39.9
29.5
2,852
$
83.9
39.1
28.9
2,925
March 31,
2006
$
$
75.3
38.3
28.4
2,690
December 31,
2005
$
$
80.8
37.5
27.7
2,945
$
0.6
8.2%
$
0.6
8.5%
$
0.7
8.5%
$
0.5
8.1%
$
0.5
8.4%
$
$
$
4.8
6.9
7.6
4.9%
7.5%
$
$
$
5.6
7.2
7.9
4.9%
7.5%
$
$
$
5.1
7.0
7.6
5.0%
7.7%
$
$
$
4.2
6.9
7.7
5.0%
7.7%
$
$
$
4.8
6.9
7.6
5.1%
7.9%
$
$
79.7
5.0
46.2%
$
$
75.1
4.9
44.0%
$
$
70.8
4.7
41.8%
$
$
66.6
5.0
39.4%
$
$
70.3
5.1
38.9%
$
20.6
2.1%
0.32%
$
18.2
2.3%
0.33%
$
18.5
2.3%
0.28%
$
17.2
2.3%
0.20%
$
19.2
1.8%
0.38%
$
33.6
2.7%
30.9
3.5%
9.4%
$
29.3
2.7%
28.6
3.1%
9.2%
$
27.6
2.5%
26.4
2.9%
9.1%
$
24.3
2.4%
24.0
2.6%
8.1%
$
24.8
2.3%
23.2
4.1%
8.4%
53.8
2.6%
51.1
3.3%
9.2%
$
49.5
2.6%
48.7
3.0%
9.3%
$
47.8
2.4%
46.5
2.9%
9.2%
$
45.1
2.4%
45.3
2.6%
8.7%
$
$
$
$
$
$
$
$
$
$
$
$
46.0
2.3%
44.1
4.6%
9.1%
(A) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents earnings on such tax-exempt securities as if it
had been earned on a taxable basis and assumes an income tax-rate of 35 percent.
(B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures
and regulatory capital requirements.
(C) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets.
(D) Computed on an annualized basis.
(E) Includes on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans. The difference between the "owned basis" (GAAP) information and
"managed basis" information is attributable to the effects of securitization activities. Refer to the information set forth under U.S. Card Services Selected Financial Information on
page 20 for further discussion of the managed basis presentation.
24
(Preliminary)
(Millions)
Quarters Ended
December 31,
2006
Net revenues:
Cardmember lending:
Interest expense
Total net revenues
Expenses:
Provision for losses and benefits
Total expenses
Segment income
$
$
2,220
2005
$
2,115
Years Ended
December 31,
Percentage
Inc/(Dec)
2006
5 %
$
8,656
2005
$
8,221
Percentage
Inc/(Dec)
5 %
329
116
213
2,433
278
94
184
2,299
18
23
16
6
1,240
432
808
9,464
1,035
351
684
8,905
20
23
18
6
346
316
1,509
2,171
262
31
231
321
286
1,402
2,009
290
57
233
8
10
8
8
(10)
(46)
(1)
1,429
1,358
5,529
8,316
1,148
263
885
1,269
1,023
5,520
7,812
1,093
194
899
13
33
6
5
36
(2)
$
$
$
25
(Preliminary)
Quarters Ended
December 31,
2006
2005
Average basic cardmember spending (dollars)
Global Corporate & International Consumer Travel
Travel sales
Total loans
Segment capital
Return on segment capital (A)
Total receivables
Cardmember lending:
Total loans
Average loans
Net write-off rate
$
$
51.2
22.3
17.9
2,874
$
$
45.1
22.7
18.0
2,534
Years Ended
December 31,
Percentage
Inc/(Dec)
2006
14 %
(2)
(1)
13 %
$
$
193.1
22.3
17.9
10,681
2005
$
$
168.5
22.7
18.0
9,641
Percentage
Inc/(Dec)
15 %
(2)
(1)
11 %
$
4.9
8.1%
$
4.7
8.4%
4 %
$
19.4
8.1%
$
18.8
8.6%
3 %
$
$
7.2
22.5
$
$
7.1
20.3
1 %
11 %
$
$
7.2
22.5
$
$
7.1
20.3
1 %
11 %
$
$
57.7
4.1
20.9%
$
$
51.7
4.1
23.2%
12 %
- %
$
$
57.7
4.1
20.9%
$
$
51.7
4.1
23.2%
12 %
- %
$
16.3
1.4%
0.19%
$
14.5
1.3%
0.18%
12 %
$
16.3
1.4%
0.18%
$
14.5
1.3%
0.21%
12 %
$
9.7
2.9%
9.3
5.7%
9.1%
$
8.3
2.8%
7.8
4.4%
9.4%
17 %
$
$
$
8.3
2.8%
7.4
4.7%
9.3%
17 %
19 %
9.7
2.9%
8.9
5.9%
9.1%
$
$
$
20 %
(A) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based
upon specific business operational needs, risk measures and regulatory capital requirements.
26
(Preliminary)
(Millions)
December 31,
2006
Net revenues:
Cardmember lending:
Interest expense
Total net revenues
Expenses:
Provision for losses and benefits
Total expenses
Segment income
$
$
2,220
September 30,
2006
Quarters Ended
June 30,
2006
$
$
2,086
2,241
March 31,
2006
$
2,109
December 31,
2005
$
2,115
329
116
213
2,433
310
109
201
2,287
308
108
200
2,441
293
99
194
2,303
278
94
184
2,299
346
316
1,509
2,171
262
31
231
330
329
1,347
2,006
281
65
216
410
364
1,373
2,147
294
69
225
343
349
1,300
1,992
311
98
213
321
286
1,402
2,009
290
57
233
$
$
$
$
27
(Preliminary)
December 31,
2006
Average quarterly basic cardmember spending (dollars)
Global Corporate & International Consumer Travel
Travel sales
Total loans
Segment capital
Return on segment capital (A)
Total receivables
Cardmember lending:
Total loans
Average loans
Net write-off rate
$
$
51.2
22.3
17.9
2,874
September 30,
2006
Quarters Ended
June 30,
2006
$
$
$
47.5
22.1
17.7
2,642
$
49.2
22.2
17.8
2,654
March 31,
2006
$
$
45.2
23.2
18.4
2,494
December 31,
2005
$
$
45.1
22.7
18.0
2,534
$
4.9
8.1%
$
4.5
8.3%
$
5.2
8.1%
$
4.8
7.8%
$
4.7
8.4%
$
$
7.2
22.5
$
$
7.2
22.0
$
$
7.2
21.2
$
$
7.2
20.8
$
$
7.1
20.3
$
$
57.7
4.1
20.9%
$
$
57.3
4.4
21.2%
$
$
55.3
4.3
22.6%
$
$
53.0
4.3
23.2%
$
$
51.7
4.1
23.2%
$
16.3
1.4%
0.19%
$
16.4
1.3%
0.18%
$
15.8
1.3%
0.18%
$
15.6
1.3%
0.17%
$
14.5
1.3%
0.18%
$
9.7
2.9%
9.3
5.7%
9.1%
$
9.0
3.1%
8.9
5.9%
8.9%
$
8.7
3.2%
8.8
6.4%
9.1%
$
8.4
3.2%
8.4
5.5%
9.4%
$
8.3
2.8%
7.8
4.4%
9.4%
$
$
$
$
$
(A) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures and
regulatory capital requirements.
28
(Preliminary)
(Millions)
Quarters Ended
December 31,
2006
Net revenues:
Discount revenue, fees and other
Expenses:
Marketing and promotion
Total expenses
Segment income
2005
$
869
$
125
46
401
572
297
96
201
Years Ended
December 31,
2006
2005
Percentage
Inc/(Dec)
$
725
$
141
13
319
473
252
86
166
20 %
(11)
#
26
21
18
12
21
$
3,161
$
518
89
1,366
1,973
1,188
409
779
$
2,747
$
604
66
1,195
1,865
882
309
573
Percentage
Inc/(Dec)
15 %
(14)
35
14
6
35
32
36
29
(Preliminary)
Quarters Ended
December 31,
2006
2005
Years Ended
December 31,
2006
2005
Percentage
Inc/(Dec)
Percentage
Inc/(Dec)
Global Card billed business (A)
$
153.5
$
132.6
16 %
$
561.5
$
484.4
16 %
Global Network & Merchant Services:
Segment capital (millions)
$
$
4.4
1,272
60.3%
$
$
4.5
1,316
49.2%
(2) %
(3) %
$
$
4.4
1,272
60.3%
$
$
4.5
1,316
49.2%
(2) %
(3) %
Global Network Services:
$
11.5
15.0
$
6.9
10.8
67 %
39 %
$
35.4
15.0
$
24.0
10.8
48 %
39 %
(A) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards
issued under network partnership agreements and certain insurance fees charged on proprietary cards.
(B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based
upon specific business operational needs, risk measures and regulatory capital requirements.
30
(Preliminary)
(Millions)
December 31,
2006
Net revenues:
Discount revenue, fees and other
Expenses:
Marketing and promotion
Total expenses
Segment income
$
869
$
125
46
401
572
297
96
201
September 30,
2006
$
798
$
118
19
347
484
314
102
212
Quarters Ended
June 30,
2006
$
789
$
140
14
320
474
315
115
200
March 31,
2006
$
705
$
135
10
298
443
262
96
166
December 31,
2005
$
725
$
141
13
319
473
252
86
166
31
(Preliminary)
December 31,
2006
September 30,
2006
Quarters Ended
June 30,
2006
March 31,
2006
December 31,
2005
Global Card billed business (A)
$
153.5
$
140.3
$
140.5
$
127.2
$
132.6
Global Network & Merchant Services:
Segment capital
$
$
4.4
1.3
60.3%
$
$
5.1
1.3
57.9%
$
$
6.2
1.3
53.8%
$
$
5.7
1.3
51.7%
$
$
4.5
1.3
49.2%
Global Network Services:
$
11.5
15.0
$
9.7
14.5
$
7.6
13.1
$
6.6
11.0
$
6.9
10.8
(A) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under
network partnership agreements and certain insurance fees charged on proprietary cards.
(B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon
specific business operational needs, risk measures and regulatory capital requirements.
32

4Q 06 ER Tables Final

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