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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): September 30, 2002
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AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
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New York 1-7657 13-4922250
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation or Identification No.)
organization)
200 Vesey Street, World Financial Center
New York, New York 10285
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 640-2000
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(Former name or former address, if changed since last report)
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Item 5. Other Events
This report describes an event which has no impact on the American Express
Company (the company) consolidated financial statements under generally accepted
accounting principles (GAAP), including net income or provisions for losses,
except for an insignificant impact on GAAP credit reserves at September 30,
2002. The impact of the event on certain managed basis statistics is described
below.
During the third quarter of 2002, the company changed the system it uses to
track past due card accounts sent to outside collection agencies. As a result of
the shift to this new system, there was a delay in capturing data related to
accounts that had entered into bankruptcy. Because of the delay in capturing
data, some accounts were reported as delinquent at September 30, 2002 instead of
being charged-off when they entered into bankruptcy, which is the company's
practice. The effect of this delay was corrected during the fourth quarter of
2002.
The table below represents a revision of managed basis information contained in
the third quarter 2002 Form 10-Q filed on November 13, 2002 and Form 8-K filed
on October 28, 2002. Managed basis information includes both securitized and
non-securitized accounts.
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Quarter Ended September 30, 2002
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As Reported As Revised
(in billions, except percentages and where indicated) ------------------------------------------------
Charge Card Receivables:
Total Receivables $ 24.1 $ 24.1
90 Days Past Due as a % of Total 2.4% 2.4%
Loss Reserves (millions) $939 $934
% of Receivables 3.9% 3.9%
% of 90 Days Past Due 161% 161%
Net Loss Ratio 0.40% 0.40%
U.S. Lending:
Total Loans $ 32.2 $ 32.2
Past Due Loans as a % of Total:
30-89 days 2.0% 2.0%
90+ days 1.2% 1.2%
Loss Reserves (millions):
Beginning Balance $1,121 $1,121
Provision 507 507
Net Charge-Offs/Other (426) (435)
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Ending Balance $1,202 $1,193
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% of Loans 3.7% 3.7%
% of Past Due 117% 118%
Average Loans $ 32.2 $ 32.2
Net Write-Off Rate 5.6% 5.7%
Net Interest Yield 9.7% 9.7%
Subsequent Developments
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For the first two months of the fourth quarter the actual net loss ratio for the
company's charge card portfolio was 0.32%, and the actual accounts over 90 days
past due were 2.4% at November 30, 2002. For the U.S. Lending portfolio, the
actual net write-off rate was 5.8% for the first two months of the fourth
quarter and the actual accounts over 30 days past due were 3.3% at November 30,
2002, reflecting the continued weakness in the economy and unemployment rates.
Other Registrants
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The delay described above also impacted the American Express Master Trust and
the American Express Credit Account Master Trust. The largest impact was to
overstate write-offs for November, while understating them for August, September
and October. The revisions are reported in separate Form 8-K's being filed
today by the Master Trusts.
The delay in capturing data relating to accounts in bankruptcy caused no
adjustment to data reported on the September 30, 2002 Form 10-Q for American
Express Credit Corporation, a wholly-owned subsidiary of the company.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMERICAN EXPRESS COMPANY
(REGISTRANT)
By: /s/ Stephen P. Norman
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Name: Stephen P. Norman
Title: Secretary
DATE: December 16, 2002