8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Sep 12, 2008)

Filed September 12, 2008For Securities:AXP

Summary

This 8-K filing from American Express Company (AXP) primarily concerns the reclassification of American Express International Deposit Company (AEIDC) as a discontinued operation. This change is effective starting the third quarter of 2008 and follows the earlier sale of American Express Bank Ltd. (AEB) to Standard Chartered PLC. The reclassification aligns with accounting standards as AEIDC is now within one year of its anticipated sale, which was previously agreed upon through a put/call agreement linked to the AEB sale. For investors, this means that AEIDC's financial results will be presented separately from the Company's continuing operations. This will provide a clearer view of the performance of AXP's core businesses. The filing also indicates that updated financial statements, including consolidated income statements and balance sheets, reflecting this change, have been furnished as Exhibit 99.1 and are incorporated by reference.

Key Highlights

  • 1AEIDC reclassified as a discontinued operation effective Q3 2008.
  • 2This reclassification is a result of the prior sale of AEB to Standard Chartered.
  • 3AEIDC's results will be presented separately, distinct from continuing operations.
  • 4The change aligns with accounting rules as AEIDC is nearing its agreed-upon sale date.
  • 5Updated financial statements (income statements, balance sheets) reflecting this change are provided in Exhibit 99.1.
  • 6This move aims to provide investors with a clearer picture of AXP's ongoing business performance.

Frequently Asked Questions

The main purpose is to announce the reclassification of American Express International Deposit Company (AEIDC) as a discontinued operation for financial reporting purposes, effective in the third quarter of 2008. This is due to AEIDC being within one year of its anticipated sale, as per an agreement linked to the earlier sale of American Express Bank Ltd. (AEB).

AEIDC is being treated as a discontinued operation because it is expected to be sold, and it is now within one year of that anticipated sale. This accounting treatment is applied to businesses that are being disposed of.

By reclassifying AEIDC as a discontinued operation, investors will gain a clearer understanding of the performance of American Express's core, continuing businesses. The results of AEIDC will be reported separately, allowing for a more focused analysis of the company's ongoing operations.

Updated financial information, including unaudited consolidated statements of income and balance sheets reflecting AEIDC as a discontinued operation, is provided as Exhibit 99.1 to this 8-K filing and is incorporated by reference.