Other Assets

12 Months Ended

Dec. 31, 2023

OTHER ASSETS

The following is a summary of Other assets as of December 31:


(Millions)	2023		2022
Goodwill	$	3,851	$	3,786
Other intangible assets, at amortized cost	98		146
Other (a)	15,165		13,757
Total	$	19,114	$	17,689

(a)Primarily includes net deferred tax assets, other receivables net of reserves, investments in non-consolidated entities, prepaid assets, tax credit investments and right-of-use lease assets.

GOODWILL

The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows:


(Millions)	USCS		CS		ICS		GMNS		Total
Balance as of December 31, 2021	$	368	$	2,123	$	753	$	560	$	3,804
Acquisitions	13		—		—		—		13
Dispositions	—		—		—		—		—
Other (a)	(2)		(1)		(28)		—		(31)
Balance as of December 31, 2022	$	379	$	2,122	$	725	$	560	$	3,786
Acquisitions	—		30		—		18		48
Dispositions	—		—		—		—		—
Other (a)	—		(1)		18		—		17
Balance as of December 31, 2023	$	379	$	2,151	$	743	$	578	$	3,851

(a)Primarily includes foreign currency translation.

Accumulated impairment losses were $221 million as of both December 31, 2023 and 2022.

OTHER INTANGIBLE ASSETS

Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value.

The gross carrying amount for other intangible assets as of December 31, 2023 and 2022 was $717 million and $720 million, respectively, with accumulated amortization of $619 million and $574 million, respectively.

Amortization expense was $49 million, $51 million and $57 million for the years ended December 31, 2023, 2022 and 2021, respectively. For other intangible assets on the Consolidated Balance Sheets as of December 31, 2023, amortization expense is expected to be $44 million in 2024, $21 million in 2025, $11 million in 2026, $9 million in 2027, $4 million in 2028 and $8 million thereafter.

TAX CREDIT INVESTMENTS

We hold tax credit investments that promote affordable housing, community development, and small businesses that foster economic growth in underserved areas and support compliance with the Community Reinvestment Act by our U.S. bank subsidiary, American Express National Bank (AENB). These investments generate a return primarily through the realization of income tax credits and other income tax benefits.

As of December 31, 2023 and 2022, we had $1,369 million and $1,207 million in tax credit investments, respectively, included in Other assets on the Consolidated Balance Sheets, comprised of LIHTC investments (previously referred to as Qualified Affordable Housing investments) and other qualifying investments. We account for such tax credit investments using the Proportional Amortization Method, which we elected to implement prospectively on January 1, 2021 for LIHTC investments and in the fourth quarter of 2023 for other qualifying investments.

As of December 31, 2023 and 2022, $1,126 million and $1,042 million of our tax credit investments, respectively, related to investments in unconsolidated VIEs for which we do not have a controlling financial interest.

As of December 31, 2023, we committed to provide funding related to certain of our tax credit investments, which is expected to be paid between 2024 and 2040, resulting in $573 million in unfunded commitments reported in Other liabilities, of which $409 million specifically related to unconsolidated VIEs.

In addition, as of December 31, 2023, we had contractual off-balance sheet obligations to provide additional funding up to $3 million for these tax credit investments, fully related to unconsolidated VIEs. We may be required to fund these amounts between 2024 and 2034.

The following table presents tax credit investment expenses and associated income tax credits and other income tax benefits for the years ended December 31:


(Millions)	2023		2022		2021
Proportional amortization recognized in tax provision	$	185	$	161	$	226
Equity method expenses recognized in Other, net expenses	$	—	$	9	$	13
Income tax credits and Other income tax benefits (a) recognized in tax provision	$	204	$	196	$	182

(a)Other income tax benefits are a result of tax deductible expenses generated by our tax credit investments.

Income tax credits and other income tax benefits associated with our tax credit investments are also recognized in the Consolidated Statements of Cash Flows in the Operating activities section primarily under Accounts payable and other liabilities.