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Reportable Operating Segment | 12 Months Ended
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Dec. 31, 2015
Disclosure Text Block Abstract |
Reportable Operating Segments | NOTE 25 Reportable Operating Segments and Geographic Operations Reportable Operating Segments The Company is a global services company that is principally engaged in businesses comprising four reportable operating segments: USCS, ICS, GCS and Global Network & Merchant Services (GNMS). The Company considers a combination of factors when evaluating the composition of its reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. T he following is a brief description of t he primary business activities of the Company’s four reportable operating segments: USCS offers a wide range of card products and services to consumers and small businesses in the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business. ICS offers a wide range of card products and services to consumer s and small business es out side the United States, provides travel services to Card Members and other consumers, and operates a coalition loyalty business in various countries. GCS offers global corporate payment services to l arge and mid-sized companies. The Company’s business travel operations, which had been included in GCS, were deconso lidated effective June 30, 2014 in connection with t he formation of the GBT JV, discussed previously. Therefore, there is a lack of comparability against periods p rior to the deconsolidation. The Company’s proportional share of the GBT JV net income or loss is reported within Other revenues. GNMS operates a global payments network that processes and settles proprietary and non-proprietary card transactions. GNMS acquires merchants; leverages the Company’s global closed-loop network to offer multi-channel marketing programs and capabilities, services and repo rting and analytical data to the Company’s merchants around the world; and provides financing products for qualified merchants. It also enters into partnership agreements with third-party card issuers and acquirers to license the American Express brand and broaden the Card Member and merchant base for the Company’s network worldwide. Corporate functions and certain other businesses, including the Company’s EG business, as well as other Company operations are included in Corporate & Other. 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:
|  |  |  |  |  |  |  |  |  |  |  |  |  | Corporate & |  |  |
(Millions, except where indicated) |  | USCS |  | ICS |  | GCS |  | GNMS |  | 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
Corporate & Other includes adjustments and eliminations for intersegment activity. Effective December 1, 2015, in the USCS segment, total provision s does not include credit costs related to Card Member loans and receivables HFS, which are now reported in O ther expenses through a valuation allowance adjustment. As of September 30, 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 attributabl e 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 f unding 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 segment s. Rewards and Card Member services expenses are included in each segment based on actual expenses incurred within each segment. Salaries and employee benefits and other operating expenses includes expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, e xpenses related to support services, such as technology costs, are allocated to each segment primarily based on support service activities directly attributable to the segment. Other overhead expenses, such as staff group support functions, are allocated from Corporate & Other to the other segments based on a mix of each segment’s direct consumption of services and relative level of pretax income. Capital Each business segment is allocated capital based on established business model operating requirements, risk measures and regulatory capital requirements. The busi ness model operating requirements include capital needed to support operations and specific balance sheet items. The risk measures include considerations for credit, market and operational risk. Income Taxes An income tax provision (benefit) is allocated to each business segment based on the effective tax rates applicable to various businesses that comprise the segment. Geographic O perations The following table presents the Company’s total revenues net of interest expense and pretax income (loss) from continuing operations i n different geographic regions:
(Millions) |  | United States |  | EMEA | (a) | JAPA | (a) | LACC | (a) | Other Unallocated | (b) | Consolidated
2015(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total revenues net of interest expense |  | $ | 24,791 |  | $ | 3,161 |  | $ | 2,649 |  | $ | 2,384 |  | $ | (167) |  | $ | 32,818
| Pretax income (loss) from continuing operations |  |  | 8,010 |  |  | 534 |  |  | 456 |  |  | 658 |  |  | (1,720) |  |  | 7,938
2014(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total revenues net of interest expense |  | $ | 24,751 |  | $ | 3,767 |  | $ | 2,934 |  | $ | 2,888 |  | $ | (152) |  | $ | 34,188
| Pretax income (loss) from continuing operations |  |  | 8,869 |  |  | 525 |  |  | 463 |  |  | 683 |  |  | (1,549) |  |  | 8,991
2013(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total revenues net of interest expense |  | $ | 23,641 |  | $ | 3,700 |  | $ | 2,952 |  | $ | 2,900 |  | $ | (323) |  | $ | 32,870
| Pretax income (loss) from continuing operations |  |  | 7,679 |  |  | 524 |  |  | 488 |  |  | 701 |  |  | (1,504) |  |  | 7,888
EMEA represents Europe, the Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and the Caribbean. Other U nallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. The data in the above table is, in part, based upon internal allocations, which necessarily involve management’s judgment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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