XML 53 R35.htm IDEA: XBRL DOCUMENT v3.22.0.1
Reportable Operating Segments and Geographic Operations
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Reportable Operating Segments and Geographic Operations
REPORTABLE OPERATING SEGMENTS AND GEOGRAPHIC OPERATIONS
REPORTABLE OPERATING SEGMENTS
We consider a combination of factors when evaluating the composition of our 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.
The following is a brief description of the primary business activities of our three reportable operating segments:
•Global Consumer Services Group (GCSG) primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel and lifestyle services and non-card financing products, and manages certain international joint ventures, our partnership agreements in China and our loyalty coalition businesses operated in certain countries.
•Global Commercial Services (GCS) primarily issues a wide range of proprietary corporate and small business cards globally. GCS also provides payment, expense management and financing solutions to businesses.
•Global Merchant and Network Services (GMNS) operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.
Corporate functions and certain other businesses and operations are included in Corporate & Other.
As a result of organizational changes announced during the second quarter of 2021, our loyalty coalition businesses results, which were previously reported within the GMNS segment, are now reported within the GCSG segment. Prior period segment results have been revised to conform with current period presentation.
The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the years ended December 31, 2021, 2020 and 2019:
(Millions, except where indicated)GCSGGCSGMNS
Corporate & Other (a)
Consolidated
2021
Total non-interest revenues$18,157 $11,489 $4,964 $20 $34,630 
Revenue from contracts with customers (b)
13,047 9,863 4,635 171 27,716 
Interest income7,391 1,460 16 166 9,033 
Interest expense717 449 (92)209 1,283 
Total revenues net of interest expense24,831 12,500 5,072 (23)42,380 
Pretax income (loss)6,826 2,928 1,949 (1,014)10,689 
Total assets (billions)
$102 $53 $15 $19 $189 
2020
Total non-interest revenues$14,632 $9,652 $4,143 $(325)$28,102 
Revenue from contracts with customers (b)
9,974 8,145 3,882 (27)21,974 
Interest income8,199 1,586 18 280 10,083 
Interest expense1,054 619 (82)507 2,098 
Total revenues net of interest expense21,777 10,619 4,243 (552)36,087 
Pretax income (loss)3,687 936 1,315 (1,642)4,296 
Total assets (billions)
$87 $42 $14 $48 $191 
2019
Total non-interest revenues$17,178 $12,242 $5,428 $88 $34,936 
Revenue from contracts with customers (b)
12,555 10,633 4,965 6 28,159 
Interest income9,414 1,900 27 743 12,084 
Interest expense1,731 1,034 (303)1,002 3,464 
Total revenues net of interest expense24,861 13,108 5,758 (171)43,556 
Pretax income (loss)4,845 2,692 2,685 (1,793)8,429 
Total assets (billions)
$107 $53 $17 $21 $198 
(a)Corporate & Other includes adjustments and eliminations for intersegment activity.
(b)Includes discount revenue, certain other fees and commissions and other revenues from customers.
Total Revenues Net of Interest Expense
We allocate discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the GCSG and GCS segments, discount revenue generally reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue.
Net card fees and other fees and commissions are directly attributable 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 funding requirements and internal funding rates.
Provisions for Credit Losses
The provisions for credit losses are directly attributable to the segment in which they are reported.
Expenses
Marketing and business development expense is included in each segment based on the actual expenses incurred. Global brand advertising is primarily allocated to the segments based on the relative levels of revenue. Rewards and Card Member services expenses are included in each segment based on the actual expenses incurred.
Salaries and employee benefits and other operating expenses reflect both costs incurred directly within each segment, as well as allocated expenses. The allocated expenses include service costs allocated based on activities directly attributable to the segment, and overhead expenses allocated based on the relative levels of revenue and Card Member loans and receivables.
GEOGRAPHIC OPERATIONS
The following table presents our total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment:
(Millions)United States
EMEA(a)
APAC(a)
LACC(a)
Other Unallocated(b)
Consolidated
2021
Total revenues net of interest expense$33,103 $3,643 $3,418 $2,238 $(22)$42,380 
Pretax income (loss) from continuing operations9,512 705 707 782 (1,017)10,689 
2020
Total revenues net of interest expense$28,263 $3,087 $3,271 $2,019 $(553)$36,087 
Pretax income (loss) from continuing operations4,418 398 665 452 (1,638)4,296 
2019
Total revenues net of interest expense$32,629 $4,388 $3,934 $2,776 $(171)$43,556 
Pretax income (loss) from continuing operations7,302 1,177 853 884 (1,787)8,429 
(a)EMEA represents Europe, the Middle East and Africa; APAC represents Asia Pacific, Australia and New Zealand; and LACC represents Latin America, Canada and the Caribbean.
(b)Other Unallocated includes net costs which are not directly allocated to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses.