American Express 2009 Annual Report Download - page 94

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN EXPRESS COMPANY
OTHER INTANGIBLE ASSETS
Intangible assets are amortized over their estimated useful
lives of 1 to 22 years. The Company reviews intangible assets
for impairment quarterly and whenever events and
circumstances indicate that their carrying amounts may not
be recoverable. In addition, on an annual basis, the Company
performs an impairment evaluation of all intangible assets by
assessing the recoverability of the asset values based on the
cash flows generated by the relevant assets or asset groups. An
impairment is recognized if the carrying amount is not
recoverable and exceeds the asset’s fair value.
The components of other intangible assets were as follows:
(Millions) 2009 2008
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Customer relationships(a) $ 873 $(240) $633 $744 $(135) $609
Other 145 (61) 84 160 (52) 108
Total $1,018 $(301) $717 $904 $(187) $717
(a) Includes approximately $265 million related to a customer intangible payment made in connection with the renegotiated contract with Delta
Air Lines.
Amortization expense for the years ended December 31, 2009, 2008 and 2007 was $140 million, $83 million and $47 million,
respectively. Intangible assets acquired in 2009 and 2008 are being amortized, on average, over 5 years and 8 years, respectively.
Estimated amortization expense for other intangible assets over the next five years is as follows:
(Millions) 2010 2011 2012 2013 2014
Estimated amortization expense $141 $125 $115 $105 $81
OTHER
The Company has $168 million and $141 million in
affordable housing partnership interests as of December 31,
2009 and 2008, respectively, included in other assets in the
table above. The Company is a limited partner and typically
has a less than 50 percent interest in the affordable housing
partnerships. These partnership interests are accounted for in
accordance with GAAP governing equity method investments
and joint ventures.
92