REG-American Exp.Co American Express Reports Fourth Quarter EPS of $0.89 or $1.23 When Adjusted for Impairment and Restructuring Charges1 <Origin Href="QuoteRef">AXP.N</Origin> - Part 4

American Express CoAnnouncement

01/04/2016 13:17

- Part 4: For the preceding part double click  ID:nBw3nh8C4c 

                                                                            
 (Q)     Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 (R)     Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 (S)     Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements (non-proprietary billed business), and certain insurance fees charged on proprietary cards. In-store spend activity within retail co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business.                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 (T)     Return on average equity and return on average common equity are calculated by dividing one year period net income/net income attributable to common shareholders by one year average total shareholders` equity/average common shareholders' equity, respectively.                                                                                                                                                                                                                                                                                                                                                                                
 (U)     Return on average tangible common equity, a non-GAAP measure, is computed in the same manner as return on average common equity except the computation of average tangible common shareholders' equity, a non-GAAP measure, excludes from average common shareholders' equity, average goodwill and other intangibles. The Company believes that return on average tangible common equity is a useful measure of the profitability of its business.                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 (V)     Return on average segment capital is calculated by dividing one year period segment income by one year average segment capital. 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 of average tangible segment capital, a non-GAAP measure, excludes average goodwill and other intangibles. The Company believes that return on average tangible segment capital is a useful measure of the profitability of its business.                                                                                                                
 (W)     Adjusted net interest income, a non-GAAP measure, represents net interest income allocated to the Company's Card Member loan portfolio excluding the impact of interest expense and interest income not attributable to the Company's Card Member loan portfolio. The Company believes adjusted net interest income is useful to investors because it is a component of net interest yield on Card Member loans.                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 (X)     Adjusted average loans, a non-GAAP measure, represents average Card Member loans (including loans related to the Costco and JetBlue portfolio which are classified as held for sale on the Consolidated Balance Sheets), excluding the impact of deferred card fees, net of deferred direct acquisition costs of Card Member loans, and other. The Company believes adjusted average loans is useful to investors because it is a component of net interest yield on Card Member loans.                                                                                                                                                            
 (Y)     This calculation includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on Card Member loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to Card Member loans, and interest expense attributable to other activities, including Card Member receivables.                                                                                                                                                  
 (Z)     Net interest yield on Card Member loans, a non-GAAP measure, is computed by dividing adjusted net interest income by adjusted average loans, computed on an annualized basis. The calculation of net interest yield on Card Member loans includes interest that is deemed uncollectible. For all presentations of net interest yield on Card Member loans, reserves and net write-offs related to uncollectible interest are recorded through provisions for losses - Card Member loans; therefore, such reserves and net write-offs are not included in the net interest yield calculation. The Company believes net interest yield on Card Member 
         loans is useful to investors because it provides a measure of profitability of the Company's Card Member loan portfolio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 (AA)    Primarily includes the impairment of goodwill and technology costs, together with some restructuring costs within Enterprise Growth.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 (AB)    FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for the three months ended December 31, 2015 apply to the period(s) against which such results are being compared). Certain amounts included in the calculations of FX-adjusted revenues and expenses, which constitute non-GAAP measures, are subject to management allocations. The Company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the   
         Company's performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 
 
American Express Company
Media:
Marina H. Norville, +1-212-640-2832
marina.h.norville@aexp.com
or
Investors/Analysts:
Ken Paukowits, +1-212-640-6348
ken.f.paukowits@aexp.com
or
Toby Willard, +1-212-640-5574
sherwood.s.willardjr@aexp.com 
 
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