Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 21, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN EXPRESS COMPANY | |
Trading Symbol | AXP | |
Entity Central Index Key | 4,962 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 893,779,186 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Non-interest revenues | |||
Discount revenue | $ 4,519 | $ 4,643 | |
Net card fees | 748 | 699 | |
Other fees and commissions | 713 | 680 | |
Other | 409 | 486 | |
Total non-interest revenues | 6,389 | 6,508 | |
Interest income | |||
Interest on loans | 1,860 | 1,938 | |
Interest and dividends on investment securities | 23 | 36 | |
Deposits with banks and other | 60 | 31 | |
Total interest income | 1,943 | 2,005 | |
Interest expense | |||
Deposits | 149 | 150 | |
Long-term debt and other | 294 | 275 | |
Total interest expense | 443 | 425 | |
Net interest income | 1,500 | 1,580 | |
Total revenues net of interest expense | 7,889 | 8,088 | |
Provisions for losses | |||
Charge card | 213 | 169 | |
Card Member loans | 337 | 227 | |
Other | 23 | 38 | |
Total provisions for losses | 573 | 434 | |
Total revenues net of interest expense after provisions for losses | 7,316 | 7,654 | |
Expenses | |||
Marketing and promotion | 700 | 727 | |
Card Member Rewards | 1,807 | 1,703 | |
Card Member services and other | 321 | 282 | |
Salaries and employee benefits | 1,264 | 1,338 | |
Other, net | 1,407 | 1,420 | |
Total expenses | 5,499 | 5,470 | |
Pretax income | 1,817 | 2,184 | |
Income tax provision | 580 | 758 | |
Income from continuing operations | 1,237 | 1,426 | |
Net income | $ 1,237 | $ 1,426 | |
Earnings Per Common Share, Basic (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [1] | $ 1.34 | $ 1.45 |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [2] | $ 1.34 | $ 1.45 |
Average common shares outstanding for earnings per common share: | |||
Basic | 899 | 961 | |
Diluted | 903 | 963 | |
Cash dividends declared per common share | $ 0.32 | $ 0.29 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 10 million and $ 11 million for the three months ended March 31 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 21 million for both the three months ended March 31 , 2017 and 2016 . | ||
[2] | Represents net income less (i) earnings allocated to participating share awards of $ 10 million and $ 11 million for the three months ended March 31 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 21 million for both the three months ended March 31 , 2017 and 2016 . |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statements of Income [Abstract] | ||
Earnings allocated to participating share awards | $ 10 | $ 11 |
Dividends Preferred Stock | $ 21 | $ 21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 1,237 | $ 1,426 |
Other comprehensive income (loss): | ||
Net unrealized securities gains, net of tax | 6 | 2 |
Foreign currency translation adjustments, net of tax | 316 | 4 |
Pension and other postretirement benefit gains | (8) | 26 |
Other comprehensive income (loss) | 314 | 32 |
Comprehensive income | $ 1,551 | $ 1,458 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Cash and due from banks | $ 2,459 | $ 3,278 |
Interest-bearing deposits in banks | 25,497 | 20,779 |
Short-term investment securities | 1,410 | 1,151 |
Total cash and cash equivalents | 29,366 | 25,208 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entity), less reserves | 47,154 | 46,841 |
Other receivables, less reserves | 2,812 | 3,232 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entity), less reserves | 62,320 | 64,042 |
Other loans, net | 1,635 | 1,419 |
Investment securities | 3,561 | 3,157 |
Premises and equipment, less accumulated depreciation and amortization | 4,433 | 4,433 |
Other assets (includes restricted cash of consolidated variable interest entities) | 10,104 | 10,561 |
Total assets | 161,385 | 158,893 |
Liabilities | ||
Customer deposits | 53,790 | 53,042 |
Travelers Cheques and other prepaid products | 2,706 | 2,812 |
Accounts payable | 11,700 | 11,190 |
Short-term borrowings (includes debt issued by consolidated variable interest entity) | 3,600 | 5,581 |
Long-term debt (includes debt issued by consolidated variable interest entities) | 51,647 | 46,990 |
Other liabilities | 17,007 | 18,777 |
Total liabilities | 140,450 | 138,392 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 179 | 181 |
Additional paid-in capital | 12,593 | 12,733 |
Retained earnings | 10,633 | 10,371 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax | 13 | 7 |
Foreign currency translation adjustments, net of tax | (1,946) | (2,262) |
Net unrealized pension and other postretirement benefit losses, net of tax | (537) | (529) |
Total accumulated other comprehensive loss | (2,470) | (2,784) |
Total shareholders' equity | 20,935 | 20,501 |
Total liabilities and shareholders' equity | $ 161,385 | $ 158,893 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Card Member receivables, gross | $ 47,645 | $ 47,308 |
Card Member loans, gross | 63,568 | 65,265 |
Other assets | 10,104 | 10,561 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 74 | 115 |
Accounts receivable | ||
Card Member receivables, reserves | 491 | 467 |
Other receivables, reserves | 40 | 45 |
Loans | ||
Card Member loans, reserves | 1,248 | 1,223 |
Other loans, reserves | 51 | 42 |
Accumulated depreciation and amortization | 5,405 | 5,145 |
Restricted cash | 55 | 38 |
Short Term Borrowings | 3,600 | 5,581 |
Long-term Debt | $ 51,647 | $ 46,990 |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 895,000,000 | 904,000,000 |
Common shares, outstanding | 895,000,000 | 904,000,000 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock Shares Issued | 1,600 | 1,600 |
Preferred Stock, Shares Outstanding | 1,600 | 1,600 |
Preferred shares, par value | $ 1.667 | $ 1.667 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, tax | $ 8 | $ 5 |
Foreign currency translation adjustments, tax | (307) | 24 |
Net unrealized pension and other postretirement benefit losses, tax | (195) | (186) |
Variable Interest Enterprise [Member] | ||
Card Member receivables, gross | 7,810 | 8,874 |
Card Member loans, gross | 24,438 | 26,129 |
Loans | ||
Restricted cash | 55 | 38 |
Short Term Borrowings | 0 | 0 |
Long-term Debt | $ 16,757 | $ 15,113 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,237 | $ 1,426 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Provisions for losses | 573 | 434 |
Depreciation and amortization | 296 | 261 |
Deferred taxes and other | 8 | 218 |
Stock-based compensation | 89 | 70 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||
Other receivables | 795 | 427 |
Other assets | 349 | 232 |
Accounts payable and other liabilities | (2,069) | (296) |
Travelers Cheques and other prepaid products | (118) | (243) |
Net cash provided by operating activities | 1,160 | 2,529 |
Cash Flows from Investing Activities | ||
Sales of available-for-sale investment securities | 0 | 45 |
Maturities and redemptions of available-for-sale investment securities | 860 | 226 |
Sales of other investments | 0 | 0 |
Purchase of investments | (1,294) | (345) |
Net decrease in Card Member receivables and loans, including held for sale | 1,450 | 4,039 |
Purchase of premises and equipment, net of sales | (277) | (302) |
Acquisitions/Dispositions, net of cash acquired | (28) | (155) |
Net (inrease) decrease in restricted cash | (11) | 132 |
Net cash provided by investing activities | 700 | 3,640 |
Cash Flows from Financing Activities | ||
Net increase in customer deposits | 735 | 773 |
Net decrease in short-term borrowings | (1,941) | (2,217) |
Issuance of long-term debt | 8,420 | 35 |
Principal payments on long-term debt | (3,801) | (1,036) |
Issuance of American Express preferred shares | 0 | 0 |
Issuance of American Express common shares | 31 | 11 |
Repurchase of American Express common shares | (926) | (1,188) |
Dividends paid | (313) | (302) |
Net cash provided by (used in) financing activities | 2,205 | (3,924) |
Effect of foreign currency exchange rates on cash and cash equivalents | 93 | 38 |
Net increase in cash and cash equivalents | 4,158 | 2,283 |
Cash and cash equivalents at beginning of period | 25,208 | 22,762 |
Cash and cash equivalents at end of period | $ 29,366 | $ 25,045 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Increase decrease in debt exchange [Line Items] | ||
Sale of premises and equipment | $ 0 | $ 1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The Company American Express Company (the Company) is a global services company that provides customers with access to products, insights and experiences that enrich lives and build business success. The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Business Travel (the GBT JV). The Company’s various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold t hrough various channels, including direct mail, online applications, in-house and third-party sales forces and direct response advertising . The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial St atements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the Annual Report). If not materially different, certain footnote disclosures included therein have been omitted from this Quarterly Report on Form 10-Q. The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial i nformation, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimate s reflect the best judgment of management, but actual results could differ. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance on revenue recognition. The accounting standard est ablishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues an d related cash flows. The guidance, as amended, supersedes most of the current revenue recognition requirements, and is effective January 1, 2018 . Upon adoption of the new revenue recognition guidance, t he Company anticipates using the full retrospective method, which applies the new standard to each prior reporting period presented. The Company has been working on the implementation of the standard since its issuance in 2014 and has made significant progress in evaluating the potential impact on its Cons o lidated Financial Statements. There will be changes to the recognition timing and classification of revenues and expenses; however, the Company does not expect a significant impact to pretax income upon adoption. The Company is also in the process of imple menting changes to its accounting policies, business processes, systems and internal controls to support the recognition and disclosure requirements under the new standard. In January 2016, the FASB issued new accounting guidance on the recognition and me asurement of financial assets and financial liabilities. The guidance, which is effective January 1, 2018, makes targeted changes to current GAAP, specifically to the classification and measurement of equity securities, and to certain disclosure requiremen ts associated with the fair value of financial instruments. The Company continues to evaluate the impact this guidance will have on its financial position, results of operations and cash flows, and i n preparation for the implementation, is evaluating the i mpact the guidance will have on its cost method investments, as well as the impact the standard will have on its accounting policies, business processes, systems and internal controls. In February 2016, the FASB issued new accounting guidance on leases. Th e guidance, which is effective January 1, 2019, with early adoption permitted, requires virtually all leases to be recognized on the Consolidated Balance Sheets. The Company currently anticipates adopting the standard effective January 1, 2019, using the m odified retrospective approach, which requires recording existing operating leases on the Consolidated Balance Sheets upon adoption and in the comparative period. The Company is in the process of identifying changes to its accounting policies, business pro cesses, systems, and internal controls in preparation for the implementation. Specifically, the Company is currentl y reviewing its lease portfolio and is evaluating and interpreting the requirements under the guidance, including the available accounting po licy elections , in order to determine the impacts to the Company’s financial position, results of operations and cash flows upon adoption. In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, whi ch is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which is based on expected losses, and differs significantly fro m the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information and will likely result in earlier recognition of credit reserves. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; howev er, it is expected that the CECL model will alter the assumptions used in estimating credit losses on Card Member loans and receivables, among other financial instruments (e.g., investments in available-for-sale debt securities), and may result in material changes to the Company’s credit reserves. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2017 | |
Business Combination Disclosure [Abstract] | |
Divestitures | 2 . Business Events During the fourth quarter of 2015, it was determined the Company would sell the Card Member loans and receivables related to its cobrand partnerships with JetBlue Airways Corporation (JetBlue) and Costco Wholesale Corporation (Costco) in the United States (the HFS portfolios). As a result, the HFS portfolios were presented as held for sale (HFS) on the Consolidated Balance Sheets within Ca rd Member loans and receivables HFS as of December 31, 2015. During the first quarter of 2016, the Company compl eted the sale of its JetBlue HFS portfolio and recognized a gain of $127 million as an expense reduction in Other expenses. The impact of the sale is reported within the investing section of the Consolidated Statements of Cash Flows as a net decrease in Card Member receivables and loans, including held for sale. As of March 31, 2016, the Company continued to reflect the Costco HFS portfolio wi thin Card Member loans and receivables held for sale on the Consolidated Balance Sheets. The Company sold substantially all of the Costco HFS portfolio in the second quarter of 2016. From the point of classification as HFS through the sale completion dat es, the Company continued to recognize discount revenue, interest income and other revenues and expenses related to the HFS portfolios in the respective line items on the Consolidated Statements of Income, with changes in the valuation of the HFS portfolio s recognized in Other expenses. |
Loans and Accounts Receivable
Loans and Accounts Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Loans Notes Trade And Other Receivables Disclosure [Abstract] | |
Loans and Accounts Receivable | 3. Loans and Accounts Receivable The Company’s lending and charge payment card products result in the generation of Card Member loans and Card Member receivables, respectively. This Note is presented excluding amounts associated with the Card Member loans and receivables HFS as of March 31, 201 6 ; the Company did not have any Card Member loans and receivab les HFS as of March 31 , 2017 and December 31, 2016. Card Member loans by segment and Other loans as of March 31 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 46,714 $ 48,758 International Consumer and Network Services 6,814 6,971 Global Commercial Services 10,040 9,536 Card Member loans 63,568 65,265 Less: Reserve for losses 1,248 1,223 Card Member loans, net $ 62,320 $ 64,042 Other loans, net (b) $ 1,635 $ 1,419 Includes approximately $ 24.4 billion and $ 26.1 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31 , 2017 and December 31, 2016 , respectively. Other loans primarily represent personal and commercial financing products . Other loans are presented net of reserves for losses of $ 51 million and $ 42 million as of March 31 , 2017 and December 31, 2016 , respectively. Card Member accounts receivable by segment and Other receivables as of March 31 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 10,918 $ 12,302 International Consumer and Network Services 5,543 5,966 Global Commercial Services 31,184 29,040 Card Member receivables 47,645 47,308 Less: Reserve for losses 491 467 Card Member receivables, net $ 47,154 $ 46,841 Other receivables, net (b) $ 2,812 $ 3,232 Includes $ 7.8 billion and $ 8.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31 , 2017 and December 31, 2016 , respectively. Other receivables primarily r epresent amounts related to (i) Global Network Services ( GNS ) partner banks for items such as royalty and franchise fees, (ii) certain merchants for billed discount revenue, and ( iii) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are pres ented net of r eserves for losses of $ 40 million and $ 45 million as of March 31 , 2017 and December 31, 2016 , respectively. Card Member Loans and Card Member Receivables Aging Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of March 31 , 2017 and December 31, 2016 : 2017 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 46,158 $ 160 $ 120 $ 276 $ 46,714 International Consumer and Network Services 6,698 37 25 54 6,814 Global Commercial Services Global Small Business Services $ 9,850 $ 37 $ 28 $ 56 $ 9,971 Global Corporate Payments (a) (b) (b) (b) $ 1 $ 69 Card Member Receivables: U.S. Consumer Services $ 10,778 $ 48 $ 32 $ 60 $ 10,918 International Consumer and Network Services 5,462 25 17 39 5,543 Global Commercial Services Global Small Business Services $ 14,351 $ 84 $ 52 $ 104 $ 14,591 Global Corporate Payments (a) (b) (b) (b) $ 122 $ 16,593 2016 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 48,216 $ 156 $ 119 $ 267 $ 48,758 International Consumer and Network Services 6,863 32 24 52 6,971 Global Commercial Services Global Small Business Services $ 9,378 $ 34 $ 23 $ 49 $ 9,484 Global Corporate Payments (a) (b) (b) (b) $ ― $ 52 Card Member Receivables: U.S. Consumer Services $ 12,158 $ 45 $ 30 $ 69 $ 12,302 International Consumer and Network Services 5,888 22 15 41 5,966 Global Commercial Services Global Small Business Services $ 14,047 $ 77 $ 47 $ 102 $ 14,273 Global Corporate Payments (a) (b) (b) (b) $ 135 $ 14,767 For Global Corporate Payments ( GCP ) Card Member loans and receivables in Global Commercial Services ( GCS ) , delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 9 0 days past billing, the associated Card Member loan and receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. Delinquency data for periods other than 90 days past billing i s not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. C redit Quality Indicators for Card Member Loans and Receivables The following tables present the key credit quality indicators as of or for the three months ended March 31 : 2017 2016 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: U.S. Consumer Services 1.7 % 2.0 % 1.2 % 1.5 % 1.7 % 1.0 % International Consumer and Network Services 2.0 % 2.5 % 1.7 % 1.9 % 2.4 % 1.8 % Global Small Business Services 1.6 % 1.8 % 1.2 % 1.4 % 1.6 % 1.0 % Card Member Receivables: U.S. Consumer Services 1.5 % 1.7 % 1.3 % 1.8 % 2.0 % 1.4 % International Consumer and Network Services 2.1 % 2.3 % 1.5 % 2.2 % 2.4 % 1.5 % Global Small Business Services 1.8 % 2.0 % 1.6 % 1.8 % 2.1 % 1.6 % 2017 2016 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.11 % 0.7 % 0.08 % 0.7 % The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. Impaired Card Member Loans and Receivables Impaired Card Member loans and receivables are individual larger balance or homogeneous pools of smal ler balance loans and receivables for which it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement. In certain cases, these Card Member loans and receivables are in cluded in one of the Company’s various Troubled Debt Restructuring (TDR) modification programs. The following tables provide additional information with respect to the Company’s impaired Card Member loans and receivables. Impaired Card Member receivables are not significant for International Consumer and Network Services ( ICNS ) as of March 31 , 2017 and December 31, 2016 ; therefore, th is segment’s receivables are not included in the following tables . As of March 31, 2017 Accounts Classified as a TDR (c) 2017 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 179 $ 150 $ 160 $ 132 $ 621 $ 565 $ 50 International Consumer and Network Services 54 ― ― ― 54 53 ― Global Commercial Services 33 34 26 27 120 111 10 Card Member Receivables: U.S. Consumer Services ― ― 11 7 18 18 8 Global Commercial Services ― ― 29 13 42 42 20 Total $ 266 $ 184 $ 226 $ 179 $ 855 $ 789 $ 88 As of December 31, 2016 Accounts Classified as a TDR (c) 2016 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 178 $ 139 $ 165 $ 129 $ 611 $ 558 $ 51 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 30 30 26 26 112 103 9 Card Member Receivables: U.S. Consumer Services ― ― 11 6 17 17 7 Global Commercial Services ― ― 28 10 38 38 21 Total $ 260 $ 169 $ 230 $ 171 $ 830 $ 767 $ 88 The Company’s policy is generally to accrue interest through the date of write-off (typically 180 days past due). The Company establishes reserves for interest that it believes will not be collected. Amounts presented exclude Card Member loans classified as a TDR. Non-accrual loans not in modification programs primarily include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR . Accounts classified as a TDR include $ 20 million and $ 20 million that are over 90 days past due and accruing interest and $ 9 million and $ 11 million that are non-accruals as of March 31 , 2017 and December 31, 2016 , respectively. In Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program TDRs include $139 million and $ 132 million of Card Member accounts that have successfully completed a modification prog r am and $40 million and $39 million of Card Member accounts that were not in compliance with the terms of the modification programs as of March 31 , 2017 and December 31, 2016 , respectively . The following table provides information with respect t o the Company’s average balances of, and interest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the three months ended March 31 : 2017 2016 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 616 $ 16 $ 505 $ 12 International Consumer and Network Services 53 4 53 4 Global Commercial Services 116 4 92 3 Card Member Receivables: U.S. Consumer Services 18 ― 14 ― Global Commercial Services 40 ― 22 ― Total $ 843 $ 24 $ 686 $ 19 Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the U.S. Consumer Services ( USCS ) and GCS Card Member loans and receivables mo dified as TDRs for the three months ended March 31 , 2017 and 2016 . The ICNS Card Member loans and receivables modifications were not significant; therefore, this segment is not included in the following TDR disclosures. Three Months Ended March 31, 2017 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 57 13 (b) Card Member Receivables 2 28 (c) 22 Total 10 $ 85 Three Months Ended March 31, 2016 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 57 13 (b) Card Member Receivables 3 38 (c) 16 Total 11 $ 95 Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. For Card Member loans, there have been no payment term extensions. The Company does not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months o f modification, for the three months ended March 31 , 2017 and 2016 . A Card Member is considered in default of a modification program after one and up to two consecutive missed payments , depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. 2017 2016 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (thousands) (millions) (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 11 1 $ 9 Card Member Receivables 1 1 1 1 Total 3 $ 12 2 $ 10 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves for Losses
Reserves for Losses | 3 Months Ended |
Mar. 31, 2017 | |
Reserves For Losses Card Member Loans and Receivables Disclosure [Abstract] | |
Reserve for Losses | 4. Reserves for Losses Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in the Company’s outstanding por tfolio of loans and receivables as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. This Note is presented excluding amounts associated with the Card Member loans an d receivables HFS as of March 31, 2016 ; the Company did not have a ny Card Member loans and receivables HFS as of March 31 , 2017 and December 31, 2016. Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31 : (Millions) 2017 2016 Balance, January 1 $ 1,223 $ 1,028 Provisions (a) 337 227 Net write-offs (b) Principal (272) (214) Interest and fees (51) (40) Other (c) 11 11 Balance, March 31 $ 1,248 $ 1,012 Provisions for principal, interest and fee reserve components. Principal write-offs are presented less recoveries of $ 100 million and $ 88 million, and include net write-offs from TDRs of $ 12 million and $ 13 million, for the three months ended March 31 , 2017 and 2016 , respectively. Recoveries of interest and fees were de minimis. Includes foreign currency translation adjustments of $ 7 million and $ 2 million and other adjustments of $ 4 million and $ 2 million for the three months ended March 31 , 2017 and 2016 , respectively. The three months ended March 31, 2016 also includes reserves of $7 million associated wi th $20 million of retained Card Member loans reclassified from HFS to held for investment. Card Member Loans Evaluated Individually and Collectively for Impairment The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of March 31 , 2017 and December 31, 2016 : (Millions) 2017 2016 Card Member loans evaluated individually for impairment (a) $ 345 $ 346 Related reserves (a) $ 60 $ 60 Card Member loans evaluated collectively for impairment (b) $ 63,223 $ 64,919 Related reserves (b) $ 1,188 $ 1,163 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. Changes in Card Member Receivables Reserve for Losses The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31: (Millions) 2017 2016 Balance, January 1 $ 467 $ 462 Provisions (a) 213 169 Net write-offs (b) (194) (186) Other (c) 5 1 Balance, March 31 $ 491 $ 446 Provisions for principal and fee reserve components. P rincipal and fee components are presented less recoveries of $ 93 million and $ 101 million, including net write-offs from TDRs of $ 6 million and $ 10 million, for the three months ended March 31 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ 9 and $ 2 million and other adjustments of $ (4) million and $ (1) million for the three months ended March 31 , 2017 and 2016 , respectively. Card Member Receivables Evaluated Individually and Collectively for Impairment The following table presents Card Member receivables evaluated individually and col lectively for impairment, and related reserves, as of March 31 , 2017 and December 31, 2016 : (Millions) 2017 2016 Card Member receivables evaluated individually for impairment (a) $ 60 $ 55 Related reserves (a) $ 28 $ 28 Card Member receivables evaluated collectively for impairment $ 47,585 $ 47,253 Related reserves (b) $ 463 $ 439 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 5. Investment Securities Investment securities principally include debt securities the Company classifies as available-for-sale and carries at fair value on the Consolidated Balance Sheets, with unrealize d gains and losses recorded in accumulated o ther comprehensive income (l oss ) (AOCI), net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. The following is a summary of investment securities as of March 31 , 2017 an d December 31, 2016 : 2017 2016 Gross Gross Estimated Gross Gross Estimated Unrealized Unrealized Fair Unrealized Unrealized Fair Description of Securities (Millions) Cost Gains Losses Value Cost Gains Losses Value State and municipal obligations $ 1,686 $ 24 $ (4) $ 1,706 $ 2,019 $ 28 $ (11) $ 2,036 U.S. Government agency obligations 12 ― ― 12 12 ― ― 12 U.S. Government treasury obligations 1,135 7 (6) 1,136 465 3 (8) 460 Corporate debt securities 19 ― ― 19 19 ― ― 19 Mortgage-backed securities (a) 87 3 ― 90 92 3 ― 95 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 549 1 (1) 549 486 1 (1) 486 Other (b) 50 ― (2) 48 50 ― (2) 48 Total $ 3,539 $ 35 $ (13) $ 3,561 $ 3,144 $ 35 $ (22) $ 3,157 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Other comprises investments in various mutual funds. The following table provides information about the Company’s investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31 , 2017 and December 31, 2016 : 2017 2016 Less than 12 months 12 months or more Less than 12 months 12 months or more Gross Gross Gross Gross Description of Securities (Millions) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and municipal obligations $ 98 $ (4) $ ― $ ― $ 153 $ (11) $ ― $ ― U.S. Government treasury obligations 299 (6) ― ― 298 (8) ― ― Other ― ― 32 (2) ― ― 32 (2) Total $ 397 $ (10) $ 32 $ (2) $ 451 $ (19) $ 32 $ (2) The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31 , 2017 and December 31, 2016 : Less than 12 months 12 months or more Total Ratio of Fair Value to Gross Gross Gross Amortized Cost Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2017: 90%–100% 21 $ 397 $ (10) 6 $ 32 $ (2) 27 $ 429 $ (12) Total as of March 31, 2017 21 $ 397 $ (10) 6 $ 32 $ (2) 27 $ 429 $ (12) 2016: 90%–100% 33 $ 411 $ (13) 6 $ 32 $ (2) 39 $ 443 $ (15) Less than 90% 4 40 (6) ― ― ― 4 40 (6) Total as of December 31, 2016 37 $ 451 $ (19) 6 $ 32 $ (2) 43 $ 483 $ (21) The gross unrealized losses are attributed to overall wider credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were acquired. Overall, for the investment securities in gross unrealized loss positions , (i) the Company does not intend to sell the investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-t han-temporary impairment during the periods presented. Contractual maturities for investment securities with stated maturities as of March 31 , 2017 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 689 $ 690 Due after 1 year but within 5 years 990 992 Due after 5 years but within 10 years 365 369 Due after 10 years 1,446 1,462 Total $ 3,490 $ 3,513 The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. |
Asset Securitizations
Asset Securitizations | 3 Months Ended |
Mar. 31, 2017 | |
Asset Securitizations [Abstract] | |
Asset Securitizations | 6. Asset Securitizations The Company periodically securitizes Card Member loans and receivables arising from its card businesse s through the transfer of those assets to securitization trusts. The trusts then issue debt securities collateralized by the transferred assets to third-party investors . The following table provides information on the restricted cash held by the American Express Credit Account M aster Trust (the Lending Trust) and the American Express Issuance Trust II (the Charge Trust, collectively the Trusts) as of March 31 , 2017 and December 31, 2016 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2017 2016 Lending Trust $ 52 $ 35 Charge Trust 3 3 Total $ 55 $ 38 These amounts relate to collections of Card Member loans and receivables to be used by the Trusts to fund future expenses and obligations, including interest on debt securities, credit losses and upcoming debt maturities. American Express Travel Related Services Company, Inc. (TRS), in its role as servicer of the Trusts, has the power to direct the most significant activity of the Trusts, which is the collection of the underlying Card Member loans and receivables. In addition, TRS directly and indirectly (through its consolidated subsidiaries) holds all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of March 31 , 2017 , TRS’ direct and indirect ownership of variable interests was $ 10.5 billion for the Lending Trust and $ 4.8 billion for the Charge Trust. These variable interests held by TRS provide it with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Tru st and the Charge Trust. Based on these considerations, TRS is the primary beneficiary of both Trusts and therefore consolidates both Trusts. Under the respective terms of the Lending Trust and the Charge Trust agreements, the occurrence of certain trigge ring events associated with the performance of the assets of each Trust could result in payment of trust expenses, establishment of reserve funds, or, in a worst-case scenario, early amortization of debt securities. During the three months ended March 31 , 2017 a nd the year ended December 31, 2016 , no such triggering events occurred. |
Customer Deposits
Customer Deposits | 3 Months Ended |
Mar. 31, 2017 | |
Deposit Liabilities Disclosures [Abstract] | |
Customer Deposits | 7. Customer Deposits As of March 31 , 2017 and December 31, 2016 , customer deposits were categorized as interest bearing or non-interest bearing as follows: (Millions) 2017 2016 U.S.: Interest bearing $ 53,123 $ 52,316 Non-interest bearing (includes Card Member credit balances of: 2017, $286 million; 2016, $331 million) 322 367 Non-U.S.: Interest bearing 34 58 Non-interest bearing (includes Card Member credit balances of: 2017, $299 million; 2016, $285 million) 311 301 Total customer deposits $ 53,790 $ 53,042 Customer deposits by deposit type as of March 31 , 2017 and December 31, 2016 were as follows: (Millions) 2017 2016 U.S. retail deposits: Savings accounts – Direct $ 31,420 $ 30,980 Certificates of deposit: (a) Direct 284 291 Third-party (brokered) 11,617 11,925 Sweep accounts – Third-party (brokered) 9,802 9,120 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 82 110 Card Member credit balances ― U.S. and non-U.S. 585 616 Total customer deposits $ 53,790 $ 53,042 The weighted average remaining maturity and weighted average interest rate at issuance on the to tal portfolio of U.S. retail certificates of deposit issued through direct an d third-party programs were 47 months and 1.96 perce nt, respectively, as of March 31, 2017 . The scheduled maturities of certificates of deposit as of March 31 , 2017 were as follows: (Millions) U.S. Non-U.S. Total 2017 $ 3,401 $ 8 $ 3,409 2018 3,445 8 3,453 2019 2,398 ― 2,398 2020 2,543 ― 2,543 2021 107 ― 107 After 5 years 7 ― 7 Total $ 11,901 $ 16 $ 11,917 As of March 31 , 2017 and December 31, 2016 , certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2017 2016 U.S. $ 106 $ 117 Non-U.S. 7 7 Total $ 113 $ 124 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 8. Contingencies In the ordinary course of business, the Company and its subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings). The Company discloses its material legal proceedings under Part II, Item 1. “Legal Proceedings” in this Qua rterly Report on Form 10-Q and Part I, Item 3. “Legal Proceedings” in the Annual Report. In addition to the matters disclosed under “Legal Proceedings,” the Company is being challenged in a number of countries regarding its application of value-added taxes (VAT) to certain of its international transactions, which are in various stages of audit, or are being contested in legal actions (collectively, VAT matters). While the Company believes it has complied with all applicable tax laws, rules and regulations i n the relevant jurisdictions, the tax authorities may determine that the Company owes additional VAT. In certain jurisdictions where the Company is contesting the assessments, it was required to pay the VAT assessments prior to contesting. The Company’s le gal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members. These legal proceedings involve various lines of business of the Company and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against the Company specify the damages claimed by the plainti ff or class, many seek an unspecified amount of damages or are at very early stages of the legal process. Even when the amount of damages claimed against the Company are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some ma tters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable the Company to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficien tly such that the Company is able to estimate an amount of loss or a range of possible loss. The Company has recorded reserves for certain of its outstanding legal proceedings. A reserve is recorded when it is both (a) probable that a loss has occurred an d (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. For those disclosed material legal proceedings and VAT matters where a loss is reasonably possible in future periods, whether in excess of a related reserve for legal or tax contingencies or where there is no such reserve, and for which the Company is able to estimate a range of possible loss, the current estimated range is zero to $ 440 million in excess of any r eserves related to those matters. This range represents management’s estimate based on currently available information and does not represent the Company’s maximum loss exposure; actual results may vary significantly. As such legal proceedings evolve, the Company may need to increase its range of possible loss or reserves. Based on its current knowledge, and taking into consideration its litigation-related liabilities, the Company believes it is not a party to, nor are any of its properties the subject of, any legal proceeding that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, it is possible that the outcome of legal proceedings, including the possible resolution of merchant claims, could have a material impact on the Company’s results of operations. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 9. Derivatives and Hedging Activities The Company uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates, foreign exchange rates, and equity index or price, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of the Company’s market risk management. The Company does not transact in derivatives for trading purposes. In relation to the Company’s credit risk, under the terms of the derivative agreements it has with its various counterpartie s, the Company is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on its assessment of the credit risk of the Company’s derivative counterpa rties as of March 31 , 2017 and December 31, 2016 , no adjustment to the derivative portfolio was required. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31 , 2017 and December 31, 2016 : Other Assets Fair Value Other Liabilities Fair Value (Millions) 2017 2016 2017 2016 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 57 $ 111 $ ― $ 69 Net investment hedges - Foreign exchange contracts 53 347 196 35 Total derivatives designated as hedging instruments 110 458 196 104 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 120 308 216 176 Total derivatives, gross 230 766 412 280 Less: Cash collateral netting (c)(d) (30) (54) ― (68) Derivative asset and derivative liability netting (e) (94) (157) (94) (157) Total derivatives, net (f) $ 106 $ 555 $ 318 $ 55 Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as oppos ed to collateral. A s of March 31, 2017 centrally cleared derivatives are fully collateralized. The Company also maintained several bilateral interest rate contracts that are not subject to the CCP’s rule change and amounts related to such contracts are shown gross of any collateral exchanged . Includes f oreign currency derivatives embedded in certain operating agreements. Primarily represents the offsetting of bilateral interest rate contracts and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) a rising from derivatives executed with the same counterparty under an enforceable master netting arrangement. The Company held no non-cash collateral as of March 31, 2017. As of December 31, 2016, t he Company received non-cash collateral from a counterpart y in the form of security interests in U.S. Treasury securities, with a fair value of $18 million , none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $537 million as of December 31, 2016, but did not reduce the net exposure on the Company’s Consolidated Balance Sheets. Additionally, the Company posted $173 million and $169 million as of March 31, 2017 and December 31, 2016, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net d erivative liabilities are presented within Other assets and Other liabilities, respectively, on the Consolidated Balance Sheets. A majority of the Company’s derivative assets and liabilities as of March 31 , 2017 and December 31, 2016 are subject to m aster netting agreements with its derivative counterparties. The Company has no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. Fair Value Hedges The Company is exposed to intere st rate risk associated with its fixed-rate long-term debt obligations. At the time of issuance, certain fixed-rate debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest r ate to a floating interest rat e. The Company has $19.9 billion and $17.7 billion of fixed-rate debt obligations designated as fair value hedges as of March 31 , 2017 and December 31, 2016 , respectively. The following table summarizes the gains (losses) recognized in Other expenses associated with the Company’s fair value hedges for the three months ended March 31 : Three Months Ended March 31, (Millions) 2017 2016 Interest rate derivative contracts $ 75 $ 165 Hedged items (50) (171) Net hedge ineffectiveness gains (losses) $ 25 $ (6) The Company also recognized a net reduction in interest expense on l ong-term debt of $44 million and $59 million for the three months ended March 31 , 2017 and 2016 , respectively, primarily related to the net settlements (interest accruals) on the Company’s interest rate derivatives designated as fair value hedges. Net Investment Hedges The e ffective portion of the loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation ad justment, was $229 million and $92 million for the three months ended March 31 , 2017 and 2016 , respectively . T he net hedge ineffectiveness recognized was nil for the three months ended March 31, 2017 and 2016, thu s n o amounts related to foreign exchange contracts were reclassified from AOCI into Other expenses for the three months ended March 31, 2017 and 2016. Derivatives Not Designated as Hedges The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. The changes in the fair value of the derivatives and the related underlying foreign currency exposu res resulted in net losses of $17 million and $ 14 million for the three months ended March 31 , 2017 and 2016 , respectively , and are recognized in Other expenses . The changes in the fair value of an em bedded derivative resulted in gains of $1 million and $8 million for the three months ended March 31 , 2017 and 2016 , respectively , which are recognized in Card Member services and other expense. |
Fair Values
Fair Values | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value (Disclosures) [Abstract] | |
Fair Values | 10 . Fair Values Financial Assets and Financial Liabilities Carried at Fair Value The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31 , 2017 and December 31, 2016 : 2017 2016 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities and other $ 49 $ 1 $ 48 $ ― $ 49 $ 1 $ 48 $ ― Debt securities 3,512 1,136 2,376 ― 3,108 460 2,648 ― Derivatives (a) 230 ― 230 ― 765 ― 765 ― Total Assets 3,791 1,137 2,654 ― 3,922 461 3,461 ― Liabilities: Derivatives (a) 412 ― 412 ― 280 ― 280 ― Total Liabilities $ 412 $ ― $ 412 $ ― $ 280 $ ― $ 280 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of derivative assets and liabilities, on a further disaggregated basis. Financial Assets and Financial Liabilities Carried at Other Than Fair Value The following table summarizes the estimated fair values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of March 31 , 2017 and December 31, 2016 . The fair values o f these financial instruments are estimates based upon the market conditions and perceived risks as of March 31 , 2017 and December 31, 2016 , and require management’s judgment. These figures may not be indicative of future fair values, nor can the fai r value of the Company be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2017 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 29 $ 29 $ 27 $ 2 $ ― Other financial assets (b) 50 50 ― 50 ― Financial assets carried at other than fair value Loans, net (c) 64 65 ― ― 65 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 65 65 ― 65 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 12 12 ― 12 ― Long-term debt (c) $ 52 $ 53 $ ― $ 53 $ ― Carrying Corresponding Fair Value Amount 2016 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 25 $ 25 $ 22 $ 3 $ ― Other financial assets (b) 51 51 ― 51 ― Financial assets carried at other than fair value Loans, net (c) 65 66 ― ― 66 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 67 67 ― 67 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 12 12 ― 12 ― Long-term debt (c) $ 47 $ 48 $ ― $ 48 $ ― Level 2 amounts reflect time deposits and short-term investments. Includes Card Member receivables (including fair values of Card Member receivables of $ 7.8 billion and $ 8.8 billion held by a consolidated VIE as of March 31 , 2017 and December 31, 2016 , respectively), Other receivables, restricted cash and other miscellaneous assets. Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $ 24.3 billion and $ 26.0 billi on as of March 31 , 2017 and December 31, 2016 , respectively, and the fair values of long-term debt were $ 16.8 billion and $ 15.2 billion as of March 31 , 2017 and December 31, 2016 , respectively. Presented as a component of custom er deposits on the Consolidated Balance Sheets. Nonrecurring Fair Value Measurements The Company has certain assets that ar e subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if determined to be impaired. During t he three months ended March 31 , 2017 and during th e year ended December 31, 2016 , the Company did not have any material assets that were measured at fair value due to impairment. |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
Guarantees | 11. Guarantees The Company provides Card Member protection plans that cover losses associated with purchased products, as well as certain other guarantees and indemnifications in the ordinary course of business. In relation to its maximum potential undiscounted future payments as shown in the table that follows, to date the Company has not experienced any significant losses related to guarantees or indemnifications. The Company’s initial recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. The following table provides information related to such guarantees and indemnifications as of March 31 , 2017 and December 31, 2016 : Maximum potential undiscounted future payments (a) Related liability (b) (Billions) (Millions) Type of Guarantee 2017 2016 2017 2016 Return and Merchant Protection $ 45 $ 42 $ 37 $ 37 Other (c) 6 6 49 49 Total $ 51 $ 48 $ 86 $ 86 Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed or indemnified parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of the maximum exposure, which is based on all eligible claims in relation to annual billed business volumes. Included in Other liabilities on the Consolidated Balance Sheets. Primarily includes guarantees related to the Company’s purchase protection, real estate and business dispositions. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Changes In Accumulated Other Comprehensive (Loss) Income | 12. Changes In Accumulated Other Comprehensive Income AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three months ended March 31 , 2017 and 2016 were as follows: 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2016 $ 7 $ (2,262) $ (529) $ (2,784) Net unrealized gains 6 ― ― 6 Decrease due to amounts reclassified into earnings ― ― ― ― Net translation gain of investments in foreign operations (a) ― 545 ― 545 Net losses related to hedges of investments in foreign operations ― (229) ― (229) Pension and other postretirement benefit costs ― ― (8) (8) Net change in accumulated other comprehensive loss 6 316 (8) 314 Balances as of March 31, 2017 $ 13 $ (1,946) $ (537) $ (2,470) (a) Includes $289 million of tax benefits recognized in the three months ended March 31, 2017 (Refer to Note 14). 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized gains 4 ― ― 4 Decrease due to amounts reclassified into earnings (2) ― ― (2) Net translation gain of investments in foreign operations ― 96 ― 96 Net losses related to hedges of investments in foreign operations ― (92) ― (92) Pension and other postretirement benefit gains ― ― 26 26 Net change in accumulated other comprehensive loss 2 4 26 32 Balances as of March 31, 2016 $ 60 $ (2,040) $ (522) $ (2,502) The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2017 2016 Investment securities $ 3 $ (1) Foreign currency translation adjustments (a) (191) 15 Net investment hedges (140) (53) Pension and other postretirement benefits (9) 19 Total tax impact $ (337) $ (20) Includes $289 million of tax benefits recognized in the three months ended March 31, 2017 (Refer to Note 14). The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31 , 2017 and 2016 : Gains (losses) recognized in earnings Amount Description ( Millions ) Income Statement Line Item 2017 2016 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ ― $ 4 Related income tax expense Income tax provision ― (2) Reclassification to net income related to available-for-sale securities ― 2 Total $ ― $ 2 |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 3 Months Ended |
Mar. 31, 2017 | |
Other Income And Other Expense Disclosure [Abstract] | |
Non-Interest Revenue and Expense Detail | 13. Non-Interest Revenue and Expense Detail The following is a detail of Other fees and commissions for the three months ended March 31 : (Millions) 2017 2016 Delinquency fees $ 214 $ 200 Foreign currency conversion fee revenue 199 196 Loyalty coalition-related fees 102 94 Travel commissions and fees 84 80 Other (a) 114 110 Total Other fees and commissions $ 713 $ 680 Other primarily includes s ervice fees and fees related to Membership Rewards programs. The following is a detail of Other revenues for the three months ended March 31: (Millions) 2017 2016 Global Network Services partner revenues $ 156 $ 145 Other (a) 253 341 Total Other revenues $ 409 $ 486 Other includes revenues arising from net revenue earned on cross-border Card Member spending, insurance premiums earned from Card Member travel and other insurance programs, merchant-related fees, revenues related to the GBT JV transition services agreement, p repaid card and Travelers Cheque-related revenues, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. The following is a detail of Other expenses for the three months ended March 31: (Millions) 2017 2016 Professional services $ 512 $ 604 Occupancy and equipment 475 465 Communications 63 83 Gain on sale of JetBlue HFS portfolio (a) ― (127) Other (b) 357 395 Total Other expenses $ 1,407 $ 1,420 Refer to Note 2 for additional information. Other expense primarily includes general operating expenses, Card and merchant-related fraud losses, foreign currency-related gains and losses , certain loyalty coalition-related expenses and insurance costs . In addition, f or the three months ended March 31, 2016, Other expenses includes the valuation allowance adjustment associated with loans and receivables HFS. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The effective tax rate was 31.9 percent and 34.7 percent for the three months ended March 31 , 2017 and 2016 , respectively . The changes in tax rates primarily reflected the geographic mix of business and the level of pretax income in relation to recu rring permanent tax benefits . In addition, the effective tax rate in the current year reflected the resolution of certain prior years’ tax items. The Company is under continuous examination by the Internal Rev enue Service (IRS) and tax authorities in other countries and states in which the Company has significant business operations. The tax years under examination and open for examination vary by jurisdiction. In February 2017, the Company received notificati o n that all matters outstanding with the IRS for tax years 1997-2007 were resolved. The resolution of such matters did not have a material impact on th e Company’s effective tax rate. The Company is currently under examination with the IRS for tax years 2 008 through 2014. The Company believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $ 104 million , principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $104 million of unrec ognized tax benefits, approximately $71 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. During the three months ended March 31, 2017, the Company’s unrecognized tax benefits decreased by $331 million. The decrease was primarily due to the resolution with the IRS of an uncertain tax position in January, 2017, and resulted in the recognition of $289 million in shareholders’ equity, specifically within AOCI. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | 15. Earnings Per Common Share (EPS) The computations of basic and diluted EPS for the three months ended March 31 were as follows: (Millions, except per share amounts) 2017 2016 Numerator: Basic and diluted: Net income $ 1,237 $ 1,426 Preferred dividends (21) (21) Net income available to common shareholders $ 1,216 $ 1,405 Earnings allocated to participating share awards (a) (10) (11) Net income attributable to common shareholders $ 1,206 $ 1,394 Denominator: (a) Basic: Weighted-average common stock 899 961 Add: Weighted-average stock options (b) 4 2 Diluted 903 963 Basic EPS $ 1.34 $ 1.45 Diluted EPS $ 1.34 $ 1.45 The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. The dilutive effect of unex ercised stock options excludes from the computation of EPS 1.2 million and 1.5 million of options for the three months ended March 31 , 2017 and 2016 , respectively, because inclusion of the options would have been anti-dilutive . |
Reportable Operating Segment
Reportable Operating Segment | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | 16. Reportable Operating Segments The Company is a global services company that is principally engaged in businesses comprising four reportable operating segments: USCS, ICNS, GCS and GMS. Corporate functions and certain other businesses and operations are included in Corporate & Other. The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other as of or for the three months ended March 31, 2017 and 2016: Corporate & (Millions, except where indicated) USCS ICNS GCS GMS Other (a) Consolidated 2017 Non-interest revenues $ 1,857 $ 1,195 $ 2,271 $ 1,017 $ 49 $ 6,389 Interest income 1,308 235 319 ― 81 1,943 Interest expense 146 53 109 (58) 193 443 Total revenues net of interest expense 3,019 1,377 2,481 1,075 (63) 7,889 Net income (loss) $ 469 $ 218 $ 418 $ 363 $ (231) $ 1,237 Total assets (billions) $ 81 $ 36 $ 48 $ 25 $ (29) $ 161 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 2016 Non-interest revenues $ 2,029 1,140 2,190 1,041 108 6,508 Interest income 1,391 227 321 ― 66 2,005 Interest expense 140 54 95 (59) 195 425 Total revenues net of interest expense 3,280 1,313 2,416 1,100 (21) 8,088 Net income (loss) $ 694 $ 188 $ 485 $ 357 $ (298) $ 1,426 Total assets (billions) $ 86 $ 34 $ 47 $ 24 $ (32) $ 159 Total equity (billions) $ 7 $ 3 $ 7 $ 2 $ 2 $ 21 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Policy (Text Block) [Abstract] | |
Basis of Presentation | The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimate s reflect the best judgment of management, but actual results could differ. |
Investments | Investment securities principally include debt securities the Company classifies as available-for-sale and carries at fair value on the Consolidated Balance Sheets, with unrealize d gains and losses recorded in accumulated o ther comprehensive income (l oss ) (AOCI), net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. |
Contingencies | The Company has recorded reserves for certain of its outstanding legal proceedings. A reserve is recorded when it is both (a) probable that a loss has occurred an d (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. |
Derivatives | The Company uses derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates, foreign exchange rates, and equity index or price, and are carried at fair value on the Consolidated Balance Sheets. The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. |
Guarantees | The Company’s initial recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. |
Loans and Accounts Receivable (
Loans and Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Accounts Receivable (Tables) [Abstract] | |
Card Member loans segment detail | Card Member loans by segment and Other loans as of March 31 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 46,714 $ 48,758 International Consumer and Network Services 6,814 6,971 Global Commercial Services 10,040 9,536 Card Member loans 63,568 65,265 Less: Reserve for losses 1,248 1,223 Card Member loans, net $ 62,320 $ 64,042 Other loans, net (b) $ 1,635 $ 1,419 Includes approximately $ 24.4 billion and $ 26.1 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31 , 2017 and December 31, 2016 , respectively. Other loans primarily represent personal and commercial financing products . Other loans are presented net of reserves for losses of $ 51 million and $ 42 million as of March 31 , 2017 and December 31, 2016 , respectively. |
Card Member receivables segment detail | Card Member accounts receivable by segment and Other receivables as of March 31 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 10,918 $ 12,302 International Consumer and Network Services 5,543 5,966 Global Commercial Services 31,184 29,040 Card Member receivables 47,645 47,308 Less: Reserve for losses 491 467 Card Member receivables, net $ 47,154 $ 46,841 Other receivables, net (b) $ 2,812 $ 3,232 Includes $ 7.8 billion and $ 8.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31 , 2017 and December 31, 2016 , respectively. Other receivables primarily r epresent amounts related to (i) Global Network Services ( GNS ) partner banks for items such as royalty and franchise fees, (ii) certain merchants for billed discount revenue, and ( iii) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are pres ented net of r eserves for losses of $ 40 million and $ 45 million as of March 31 , 2017 and December 31, 2016 , respectively. |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of March 31 , 2017 and December 31, 2016 : 2017 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 46,158 $ 160 $ 120 $ 276 $ 46,714 International Consumer and Network Services 6,698 37 25 54 6,814 Global Commercial Services Global Small Business Services $ 9,850 $ 37 $ 28 $ 56 $ 9,971 Global Corporate Payments (a) (b) (b) (b) $ 1 $ 69 Card Member Receivables: U.S. Consumer Services $ 10,778 $ 48 $ 32 $ 60 $ 10,918 International Consumer and Network Services 5,462 25 17 39 5,543 Global Commercial Services Global Small Business Services $ 14,351 $ 84 $ 52 $ 104 $ 14,591 Global Corporate Payments (a) (b) (b) (b) $ 122 $ 16,593 2016 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 48,216 $ 156 $ 119 $ 267 $ 48,758 International Consumer and Network Services 6,863 32 24 52 6,971 Global Commercial Services Global Small Business Services $ 9,378 $ 34 $ 23 $ 49 $ 9,484 Global Corporate Payments (a) (b) (b) (b) $ ― $ 52 Card Member Receivables: U.S. Consumer Services $ 12,158 $ 45 $ 30 $ 69 $ 12,302 International Consumer and Network Services 5,888 22 15 41 5,966 Global Commercial Services Global Small Business Services $ 14,047 $ 77 $ 47 $ 102 $ 14,273 Global Corporate Payments (a) (b) (b) (b) $ 135 $ 14,767 For Global Corporate Payments ( GCP ) Card Member loans and receivables in Global Commercial Services ( GCS ) , delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if the Company initiates collection procedures on an account prior to the account becoming 9 0 days past billing, the associated Card Member loan and receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. Delinquency data for periods other than 90 days past billing i s not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. |
Credit quality indicators for loans and receivables | The following tables present the key credit quality indicators as of or for the three months ended March 31 : 2017 2016 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: U.S. Consumer Services 1.7 % 2.0 % 1.2 % 1.5 % 1.7 % 1.0 % International Consumer and Network Services 2.0 % 2.5 % 1.7 % 1.9 % 2.4 % 1.8 % Global Small Business Services 1.6 % 1.8 % 1.2 % 1.4 % 1.6 % 1.0 % Card Member Receivables: U.S. Consumer Services 1.5 % 1.7 % 1.3 % 1.8 % 2.0 % 1.4 % International Consumer and Network Services 2.1 % 2.3 % 1.5 % 2.2 % 2.4 % 1.5 % Global Small Business Services 1.8 % 2.0 % 1.6 % 1.8 % 2.1 % 1.6 % 2017 2016 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.11 % 0.7 % 0.08 % 0.7 % The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company considers uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. |
Impaired Card Member loans and receivables | The following tables provide additional information with respect to the Company’s impaired Card Member loans and receivables. Impaired Card Member receivables are not significant for International Consumer and Network Services ( ICNS ) as of March 31 , 2017 and December 31, 2016 ; therefore, th is segment’s receivables are not included in the following tables . As of March 31, 2017 Accounts Classified as a TDR (c) 2017 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 179 $ 150 $ 160 $ 132 $ 621 $ 565 $ 50 International Consumer and Network Services 54 ― ― ― 54 53 ― Global Commercial Services 33 34 26 27 120 111 10 Card Member Receivables: U.S. Consumer Services ― ― 11 7 18 18 8 Global Commercial Services ― ― 29 13 42 42 20 Total $ 266 $ 184 $ 226 $ 179 $ 855 $ 789 $ 88 As of December 31, 2016 Accounts Classified as a TDR (c) 2016 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 178 $ 139 $ 165 $ 129 $ 611 $ 558 $ 51 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 30 30 26 26 112 103 9 Card Member Receivables: U.S. Consumer Services ― ― 11 6 17 17 7 Global Commercial Services ― ― 28 10 38 38 21 Total $ 260 $ 169 $ 230 $ 171 $ 830 $ 767 $ 88 The Company’s policy is generally to accrue interest through the date of write-off (typically 180 days past due). The Company establishes reserves for interest that it believes will not be collected. Amounts presented exclude Card Member loans classified as a TDR. Non-accrual loans not in modification programs primarily include certain Card Member loans placed with outside collection agencies for which the Company has ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR . Accounts classified as a TDR include $ 20 million and $ 20 million that are over 90 days past due and accruing interest and $ 9 million and $ 11 million that are non-accruals as of March 31 , 2017 and December 31, 2016 , respectively. In Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program TDRs include $139 million and $ 132 million of Card Member accounts that have successfully completed a modification prog r am and $40 million and $39 million of Card Member accounts that were not in compliance with the terms of the modification programs as of March 31 , 2017 and December 31, 2016 , respectively . |
Interest income recognized and average balance of impaired Card Member loans and receivables | The following table provides information with respect t o the Company’s average balances of, and interest income recognized from, impaired Card Member loans and the average balances of impaired Card Member receivables for the three months ended March 31 : 2017 2016 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 616 $ 16 $ 505 $ 12 International Consumer and Network Services 53 4 53 4 Global Commercial Services 116 4 92 3 Card Member Receivables: U.S. Consumer Services 18 ― 14 ― Global Commercial Services 40 ― 22 ― Total $ 843 $ 24 $ 686 $ 19 |
Troubled debt restructurings | The following table provides additional information with respect to the U.S. Consumer Services ( USCS ) and GCS Card Member loans and receivables mo dified as TDRs for the three months ended March 31 , 2017 and 2016 . The ICNS Card Member loans and receivables modifications were not significant; therefore, this segment is not included in the following TDR disclosures. Three Months Ended March 31, 2017 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 57 13 (b) Card Member Receivables 2 28 (c) 22 Total 10 $ 85 Three Months Ended March 31, 2016 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 57 13 (b) Card Member Receivables 3 38 (c) 16 Total 11 $ 95 Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on Card Member loans and principal and fees on Card Member receivables. For Card Member loans, there have been no payment term extensions. The Company does not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. |
Troubled debt restructurings that subsequently defaulted | The following table provides information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months o f modification, for the three months ended March 31 , 2017 and 2016 . A Card Member is considered in default of a modification program after one and up to two consecutive missed payments , depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. 2017 2016 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (thousands) (millions) (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 11 1 $ 9 Card Member Receivables 1 1 1 1 Total 3 $ 12 2 $ 10 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves For Losses (Tables)
Reserves For Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reserves For Losses Tables [Abstract] | |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31 : (Millions) 2017 2016 Balance, January 1 $ 1,223 $ 1,028 Provisions (a) 337 227 Net write-offs (b) Principal (272) (214) Interest and fees (51) (40) Other (c) 11 11 Balance, March 31 $ 1,248 $ 1,012 Provisions for principal, interest and fee reserve components. Principal write-offs are presented less recoveries of $ 100 million and $ 88 million, and include net write-offs from TDRs of $ 12 million and $ 13 million, for the three months ended March 31 , 2017 and 2016 , respectively. Recoveries of interest and fees were de minimis. Includes foreign currency translation adjustments of $ 7 million and $ 2 million and other adjustments of $ 4 million and $ 2 million for the three months ended March 31 , 2017 and 2016 , respectively. The three months ended March 31, 2016 also includes reserves of $7 million associated wi th $20 million of retained Card Member loans reclassified from HFS to held for investment. |
Card Member loans and related reserves evaluated separately and collectively for impairment | The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of March 31 , 2017 and December 31, 2016 : (Millions) 2017 2016 Card Member loans evaluated individually for impairment (a) $ 345 $ 346 Related reserves (a) $ 60 $ 60 Card Member loans evaluated collectively for impairment (b) $ 63,223 $ 64,919 Related reserves (b) $ 1,188 $ 1,163 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31: (Millions) 2017 2016 Balance, January 1 $ 467 $ 462 Provisions (a) 213 169 Net write-offs (b) (194) (186) Other (c) 5 1 Balance, March 31 $ 491 $ 446 Provisions for principal and fee reserve components. P rincipal and fee components are presented less recoveries of $ 93 million and $ 101 million, including net write-offs from TDRs of $ 6 million and $ 10 million, for the three months ended March 31 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ 9 and $ 2 million and other adjustments of $ (4) million and $ (1) million for the three months ended March 31 , 2017 and 2016 , respectively. |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and col lectively for impairment, and related reserves, as of March 31 , 2017 and December 31, 2016 : (Millions) 2017 2016 Card Member receivables evaluated individually for impairment (a) $ 60 $ 55 Related reserves (a) $ 28 $ 28 Card Member receivables evaluated collectively for impairment $ 47,585 $ 47,253 Related reserves (b) $ 463 $ 439 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investment Securities (Tables) [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of March 31 , 2017 an d December 31, 2016 : 2017 2016 Gross Gross Estimated Gross Gross Estimated Unrealized Unrealized Fair Unrealized Unrealized Fair Description of Securities (Millions) Cost Gains Losses Value Cost Gains Losses Value State and municipal obligations $ 1,686 $ 24 $ (4) $ 1,706 $ 2,019 $ 28 $ (11) $ 2,036 U.S. Government agency obligations 12 ― ― 12 12 ― ― 12 U.S. Government treasury obligations 1,135 7 (6) 1,136 465 3 (8) 460 Corporate debt securities 19 ― ― 19 19 ― ― 19 Mortgage-backed securities (a) 87 3 ― 90 92 3 ― 95 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 549 1 (1) 549 486 1 (1) 486 Other (b) 50 ― (2) 48 50 ― (2) 48 Total $ 3,539 $ 35 $ (13) $ 3,561 $ 3,144 $ 35 $ (22) $ 3,157 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Other comprises investments in various mutual funds. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table provides information about the Company’s investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31 , 2017 and December 31, 2016 : 2017 2016 Less than 12 months 12 months or more Less than 12 months 12 months or more Gross Gross Gross Gross Description of Securities (Millions) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and municipal obligations $ 98 $ (4) $ ― $ ― $ 153 $ (11) $ ― $ ― U.S. Government treasury obligations 299 (6) ― ― 298 (8) ― ― Other ― ― 32 (2) ― ― 32 (2) Total $ 397 $ (10) $ 32 $ (2) $ 451 $ (19) $ 32 $ (2) |
Available for Sale Securities Ratio of Fair Value to Amortized Cost | The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31 , 2017 and December 31, 2016 : Less than 12 months 12 months or more Total Ratio of Fair Value to Gross Gross Gross Amortized Cost Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2017: 90%–100% 21 $ 397 $ (10) 6 $ 32 $ (2) 27 $ 429 $ (12) Total as of March 31, 2017 21 $ 397 $ (10) 6 $ 32 $ (2) 27 $ 429 $ (12) 2016: 90%–100% 33 $ 411 $ (13) 6 $ 32 $ (2) 39 $ 443 $ (15) Less than 90% 4 40 (6) ― ― ― 4 40 (6) Total as of December 31, 2016 37 $ 451 $ (19) 6 $ 32 $ (2) 43 $ 483 $ (21) |
Contractual maturities of investment securities | Contractual maturities for investment securities with stated maturities as of March 31 , 2017 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 689 $ 690 Due after 1 year but within 5 years 990 992 Due after 5 years but within 10 years 365 369 Due after 10 years 1,446 1,462 Total $ 3,490 $ 3,513 |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Restricted cash held by trusts | The following table provides information on the restricted cash held by the American Express Credit Account M aster Trust (the Lending Trust) and the American Express Issuance Trust II (the Charge Trust, collectively the Trusts) as of March 31 , 2017 and December 31, 2016 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2017 2016 Lending Trust $ 52 $ 35 Charge Trust 3 3 Total $ 55 $ 38 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Customer Deposits (Tables) [Abstract] | |
Deposits By Component Alternative | As of March 31 , 2017 and December 31, 2016 , customer deposits were categorized as interest bearing or non-interest bearing as follows: (Millions) 2017 2016 U.S.: Interest bearing $ 53,123 $ 52,316 Non-interest bearing (includes Card Member credit balances of: 2017, $286 million; 2016, $331 million) 322 367 Non-U.S.: Interest bearing 34 58 Non-interest bearing (includes Card Member credit balances of: 2017, $299 million; 2016, $285 million) 311 301 Total customer deposits $ 53,790 $ 53,042 |
Deposits By Type | Customer deposits by deposit type as of March 31 , 2017 and December 31, 2016 were as follows: (Millions) 2017 2016 U.S. retail deposits: Savings accounts – Direct $ 31,420 $ 30,980 Certificates of deposit: (a) Direct 284 291 Third-party (brokered) 11,617 11,925 Sweep accounts – Third-party (brokered) 9,802 9,120 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 82 110 Card Member credit balances ― U.S. and non-U.S. 585 616 Total customer deposits $ 53,790 $ 53,042 The weighted average remaining maturity and weighted average interest rate at issuance on the to tal portfolio of U.S. retail certificates of deposit issued through direct an d third-party programs were 47 months and 1.96 perce nt, respectively, as of March 31, 2017 . |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of March 31 , 2017 were as follows: (Millions) U.S. Non-U.S. Total 2017 $ 3,401 $ 8 $ 3,409 2018 3,445 8 3,453 2019 2,398 ― 2,398 2020 2,543 ― 2,543 2021 107 ― 107 After 5 years 7 ― 7 Total $ 11,901 $ 16 $ 11,917 |
Time Deposits $250,000 Or More | As of March 31 , 2017 and December 31, 2016 , certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2017 2016 U.S. $ 106 $ 117 Non-U.S. 7 7 Total $ 113 $ 124 |
Derivatives and Hedging Activ31
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivatives and Hedging Activities (Tables) [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31 , 2017 and December 31, 2016 : Other Assets Fair Value Other Liabilities Fair Value (Millions) 2017 2016 2017 2016 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 57 $ 111 $ ― $ 69 Net investment hedges - Foreign exchange contracts 53 347 196 35 Total derivatives designated as hedging instruments 110 458 196 104 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 120 308 216 176 Total derivatives, gross 230 766 412 280 Less: Cash collateral netting (c)(d) (30) (54) ― (68) Derivative asset and derivative liability netting (e) (94) (157) (94) (157) Total derivatives, net (f) $ 106 $ 555 $ 318 $ 55 Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement payments, as oppos ed to collateral. A s of March 31, 2017 centrally cleared derivatives are fully collateralized. The Company also maintained several bilateral interest rate contracts that are not subject to the CCP’s rule change and amounts related to such contracts are shown gross of any collateral exchanged . Includes f oreign currency derivatives embedded in certain operating agreements. Primarily represents the offsetting of bilateral interest rate contracts and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) a rising from derivatives executed with the same counterparty under an enforceable master netting arrangement. The Company held no non-cash collateral as of March 31, 2017. As of December 31, 2016, t he Company received non-cash collateral from a counterpart y in the form of security interests in U.S. Treasury securities, with a fair value of $18 million , none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $537 million as of December 31, 2016, but did not reduce the net exposure on the Company’s Consolidated Balance Sheets. Additionally, the Company posted $173 million and $169 million as of March 31, 2017 and December 31, 2016, respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net d erivative liabilities are presented within Other assets and Other liabilities, respectively, on the Consolidated Balance Sheets. |
Effect of fair value hedges on results of operations | The following table summarizes the gains (losses) recognized in Other expenses associated with the Company’s fair value hedges for the three months ended March 31 : Three Months Ended March 31, (Millions) 2017 2016 Interest rate derivative contracts $ 75 $ 165 Hedged items (50) (171) Net hedge ineffectiveness gains (losses) $ 25 $ (6) |
Fair Values (Tables)
Fair Values (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Values (Tables) [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31 , 2017 and December 31, 2016 : 2017 2016 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities and other $ 49 $ 1 $ 48 $ ― $ 49 $ 1 $ 48 $ ― Debt securities 3,512 1,136 2,376 ― 3,108 460 2,648 ― Derivatives (a) 230 ― 230 ― 765 ― 765 ― Total Assets 3,791 1,137 2,654 ― 3,922 461 3,461 ― Liabilities: Derivatives (a) 412 ― 412 ― 280 ― 280 ― Total Liabilities $ 412 $ ― $ 412 $ ― $ 280 $ ― $ 280 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of derivative assets and liabilities, on a further disaggregated basis. |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fair values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of March 31 , 2017 and December 31, 2016 . The fair values of th ese financial instruments are estimates based upon the market conditions and perceived risks as of March 31 , 2017 and December 31, 2016 , and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair va lue of the Company be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2017 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 29 $ 29 $ 27 $ 2 $ ― Other financial assets (b) 50 50 ― 50 ― Financial assets carried at other than fair value Loans, net (c) 64 65 ― ― 65 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 65 65 ― 65 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 12 12 ― 12 ― Long-term debt (c) $ 52 $ 53 $ ― $ 53 $ ― Carrying Corresponding Fair Value Amount 2016 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 25 $ 25 $ 22 $ 3 $ ― Other financial assets (b) 51 51 ― 51 ― Financial assets carried at other than fair value Loans, net (c) 65 66 ― ― 66 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 67 67 ― 67 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 12 12 ― 12 ― Long-term debt (c) $ 47 $ 48 $ ― $ 48 $ ― Level 2 amounts reflect time deposits and short-term investments. Includes Card Member receivables (including fair values of Card Member receivables of $ 7.8 billion and $ 8.8 billion held by a consolidated VIE as of March 31 , 2017 and December 31, 2016 , respectively), Other receivables, restricted cash and other miscellaneous assets. Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $ 24.3 billion and $ 26.0 billi on as of March 31 , 2017 and December 31, 2016 , respectively, and the fair values of long-term debt were $ 16.8 billion and $ 15.2 billion as of March 31 , 2017 and December 31, 2016 , respectively. Presented as a component of custom er deposits on the Consolidated Balance Sheets. |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees (Tables) [Abstract] | |
Information related to guarantees | The following table provides information related to such guarantees and indemnifications as of March 31 , 2017 and December 31, 2016 : Maximum potential undiscounted future payments (a) Related liability (b) (Billions) (Millions) Type of Guarantee 2017 2016 2017 2016 Return and Merchant Protection $ 45 $ 42 $ 37 $ 37 Other (c) 6 6 49 49 Total $ 51 $ 48 $ 86 $ 86 Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed or indemnified parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of the maximum exposure, which is based on all eligible claims in relation to annual billed business volumes. Included in Other liabilities on the Consolidated Balance Sheets. Primarily includes guarantees related to the Company’s purchase protection, real estate and business dispositions. |
Changes in Accumulated Other 34
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Components of Comprehensive Income, net of tax [Abstract] | |
Components of comprehensive income (loss), net of tax | AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three months ended March 31 , 2017 and 2016 were as follows: 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2016 $ 7 $ (2,262) $ (529) $ (2,784) Net unrealized gains 6 ― ― 6 Decrease due to amounts reclassified into earnings ― ― ― ― Net translation gain of investments in foreign operations (a) ― 545 ― 545 Net losses related to hedges of investments in foreign operations ― (229) ― (229) Pension and other postretirement benefit costs ― ― (8) (8) Net change in accumulated other comprehensive loss 6 316 (8) 314 Balances as of March 31, 2017 $ 13 $ (1,946) $ (537) $ (2,470) (a) Includes $289 million of tax benefits recognized in the three months ended March 31, 2017 (Refer to Note 14). 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized gains 4 ― ― 4 Decrease due to amounts reclassified into earnings (2) ― ― (2) Net translation gain of investments in foreign operations ― 96 ― 96 Net losses related to hedges of investments in foreign operations ― (92) ― (92) Pension and other postretirement benefit gains ― ― 26 26 Net change in accumulated other comprehensive loss 2 4 26 32 Balances as of March 31, 2016 $ 60 $ (2,040) $ (522) $ (2,502) |
Accumulated Other Comprehensive Loss Income - Tax Effect | The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2017 2016 Investment securities $ 3 $ (1) Foreign currency translation adjustments (a) (191) 15 Net investment hedges (140) (53) Pension and other postretirement benefits (9) 19 Total tax impact $ (337) $ (20) Includes $289 million of tax benefits recognized in the three months ended March 31, 2017 (Refer to Note 14). |
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31 , 2017 and 2016 : Gains (losses) recognized in earnings Amount Description ( Millions ) Income Statement Line Item 2017 2016 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ ― $ 4 Related income tax expense Income tax provision ― (2) Reclassification to net income related to available-for-sale securities ― 2 Total $ ― $ 2 |
Non-Interest Revenue and Expe35
Non-Interest Revenue and Expense Detail (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Cost And Expense Disclosure Operating (Tables) [Abstract] | |
Details of other commissions and fees | The following is a detail of Other fees and commissions for the three months ended March 31 : (Millions) 2017 2016 Delinquency fees $ 214 $ 200 Foreign currency conversion fee revenue 199 196 Loyalty coalition-related fees 102 94 Travel commissions and fees 84 80 Other (a) 114 110 Total Other fees and commissions $ 713 $ 680 Other primarily includes s ervice fees and fees related to Membership Rewards programs. |
Details of other revenues | The following is a detail of Other revenues for the three months ended March 31: (Millions) 2017 2016 Global Network Services partner revenues $ 156 $ 145 Other (a) 253 341 Total Other revenues $ 409 $ 486 Other includes revenues arising from net revenue earned on cross-border Card Member spending, insurance premiums earned from Card Member travel and other insurance programs, merchant-related fees, revenues related to the GBT JV transition services agreement, p repaid card and Travelers Cheque-related revenues, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. |
Detail of other, net expense | The following is a detail of Other expenses for the three months ended March 31: (Millions) 2017 2016 Professional services $ 512 $ 604 Occupancy and equipment 475 465 Communications 63 83 Gain on sale of JetBlue HFS portfolio (a) ― (127) Other (b) 357 395 Total Other expenses $ 1,407 $ 1,420 Refer to Note 2 for additional information. Other expense primarily includes general operating expenses, Card and merchant-related fraud losses, foreign currency-related gains and losses , certain loyalty coalition-related expenses and insurance costs . In addition, f or the three months ended March 31, 2016, Other expenses includes the valuation allowance adjustment associated with loans and receivables HFS. |
Earnings Per Common Share (EP36
Earnings Per Common Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the three months ended March 31 were as follows: (Millions, except per share amounts) 2017 2016 Numerator: Basic and diluted: Net income $ 1,237 $ 1,426 Preferred dividends (21) (21) Net income available to common shareholders $ 1,216 $ 1,405 Earnings allocated to participating share awards (a) (10) (11) Net income attributable to common shareholders $ 1,206 $ 1,394 Denominator: (a) Basic: Weighted-average common stock 899 961 Add: Weighted-average stock options (b) 4 2 Diluted 903 963 Basic EPS $ 1.34 $ 1.45 Diluted EPS $ 1.34 $ 1.45 The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. The dilutive effect of unex ercised stock options excludes from the computation of EPS 1.2 million and 1.5 million of options for the three months ended March 31 , 2017 and 2016 , respectively, because inclusion of the options would have been anti-dilutive . |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Operating segment information | The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other as of or for the three months ended March 31, 2017 and 2016: Corporate & (Millions, except where indicated) USCS ICNS GCS GMS Other (a) Consolidated 2017 Non-interest revenues $ 1,857 $ 1,195 $ 2,271 $ 1,017 $ 49 $ 6,389 Interest income 1,308 235 319 ― 81 1,943 Interest expense 146 53 109 (58) 193 443 Total revenues net of interest expense 3,019 1,377 2,481 1,075 (63) 7,889 Net income (loss) $ 469 $ 218 $ 418 $ 363 $ (231) $ 1,237 Total assets (billions) $ 81 $ 36 $ 48 $ 25 $ (29) $ 161 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 2016 Non-interest revenues $ 2,029 1,140 2,190 1,041 108 6,508 Interest income 1,391 227 321 ― 66 2,005 Interest expense 140 54 95 (59) 195 425 Total revenues net of interest expense 3,280 1,313 2,416 1,100 (21) 8,088 Net income (loss) $ 694 $ 188 $ 485 $ 357 $ (298) $ 1,426 Total assets (billions) $ 86 $ 34 $ 47 $ 24 $ (32) $ 159 Total equity (billions) $ 7 $ 3 $ 7 $ 2 $ 2 $ 21 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Business Events (Details Textua
Business Events (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Events (Line Items) | ||
Gain on sale of held for sale (HFS) portfolio | $ 0 | $ (127) |
Other Expense [Member] | ||
Business Events (Line Items) | ||
Gain on sale of held for sale (HFS) portfolio | $ 0 | $ (127) |
Loans and Accounts Receivable39
Loans and Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Loans segment information | ||||
Card Member loans, gross | $ 63,568 | $ 65,265 | ||
Less: Reserve for losses | 1,248 | 1,223 | $ 1,012 | $ 1,028 |
Card Member loans, net | 62,320 | 64,042 | ||
Other loans, net | 1,635 | 1,419 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 51 | 42 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 24,438 | 26,129 | ||
U S Consumer Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 46,714 | 48,758 | ||
U S Consumer Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member loans available to settle the obligations of a variable interest entity | 24,400 | 26,100 | ||
International Consumer and Network Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 6,814 | 6,971 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | $ 10,040 | $ 9,536 |
Loans and Accounts Receivable40
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivable segment information | ||||
Card Member receivables | $ 47,645 | $ 47,308 | ||
Less: Reserve for losses | 491 | 467 | $ 446 | $ 462 |
Card Member receivables, net | 47,154 | 46,841 | ||
Other receivables, net | 2,812 | 3,232 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 40 | 45 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 7,810 | 8,874 | ||
Non United States [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 0 | 0 | ||
U S Consumer Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 10,918 | 12,302 | ||
U S Consumer Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member receivables available to settle the obligations of a variable interest entity | 7,800 | 8,900 | ||
International Consumer and Network Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 5,543 | 5,966 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 31,184 | $ 29,040 |
Loans and Accounts Receivable41
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | $ 46,158 | $ 48,216 |
Total aging | 46,714 | 48,758 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 160 | 156 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 120 | 119 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 276 | 267 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 10,778 | 12,158 |
Total aging | 10,918 | 12,302 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 48 | 45 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 32 | 30 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 60 | 69 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 6,698 | 6,863 |
Total aging | 6,814 | 6,971 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 37 | 32 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 25 | 24 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 54 | 52 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 5,462 | 5,888 |
Total aging | 5,543 | 5,966 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 25 | 22 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 17 | 15 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 39 | 41 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 9,850 | 9,378 |
Total aging | 9,971 | 9,484 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 37 | 34 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 28 | 23 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 56 | 49 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 14,351 | 14,047 |
Total aging | 14,591 | 14,273 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 84 | 77 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 52 | 47 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 104 | 102 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 69 | 52 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 1 | 0 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 16,593 | 14,767 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | $ 122 | $ 135 |
Loans and Accounts Receivable42
Loans and Accounts Receivable (Details 3) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.70% | 1.50% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.00% | 1.70% |
30 Days Past Due as a % of Total | 1.20% | 1.00% |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.50% | 1.80% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.70% | 2.00% |
30 Days Past Due as a % of Total | 1.30% | 1.40% |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.00% | 1.90% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.50% | 2.40% |
30 Days Past Due as a % of Total | 1.70% | 1.80% |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.10% | 2.20% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.30% | 2.40% |
30 Days Past Due as a % of Total | 1.50% | 1.50% |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Loss Ratio as a % of Charge Volume | 0.11% | 0.08% |
90 days past billing as a percentage of receivables | 0.70% | 0.70% |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.60% | 1.40% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.80% | 1.60% |
30 Days Past Due as a % of Total | 1.20% | 1.00% |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.80% | 1.80% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.00% | 2.10% |
30 Days Past Due as a % of Total | 1.60% | 1.60% |
Loans and Accounts Receivable43
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 266 | $ 260 |
Non-accrual loans | 184 | 169 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 226 | 230 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 179 | 171 |
Total impaired loans and receivables | 855 | 830 |
Unpaid principal balance | 789 | 767 |
Related allowance for Troubled Debt Restructurings | 88 | 88 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 9 | 11 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 20 | 20 |
Financing Receivable, Modifications, Out of Program - success, Recorded Investment | 139 | 132 |
Financing Receivable, Modifications, Out of Program - not compliant, Recorded Investment | 40 | 39 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 179 | 178 |
Non-accrual loans | 150 | 139 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 160 | 165 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 132 | 129 |
Total impaired loans and receivables | 621 | 611 |
Unpaid principal balance | 565 | 558 |
Related allowance for Troubled Debt Restructurings | 50 | 51 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 11 | 11 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 7 | 6 |
Total impaired loans and receivables | 18 | 17 |
Unpaid principal balance | 18 | 17 |
Related allowance for Troubled Debt Restructurings | 8 | 7 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 54 | 52 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 0 | 0 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 0 | 0 |
Total impaired loans and receivables | 54 | 52 |
Unpaid principal balance | 53 | 51 |
Related allowance for Troubled Debt Restructurings | 0 | 0 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 33 | 30 |
Non-accrual loans | 34 | 30 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 26 | 26 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 27 | 26 |
Total impaired loans and receivables | 120 | 112 |
Unpaid principal balance | 111 | 103 |
Related allowance for Troubled Debt Restructurings | 10 | 9 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 29 | 28 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 13 | 10 |
Total impaired loans and receivables | 42 | 38 |
Unpaid principal balance | 42 | 38 |
Related allowance for Troubled Debt Restructurings | $ 20 | $ 21 |
Loans and Accounts Receivable44
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | $ 843 | $ 686 |
Interest income recognized | 24 | 19 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 616 | 505 |
Interest income recognized | 16 | 12 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 18 | 14 |
Interest income recognized | 0 | 0 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 53 | 53 |
Interest income recognized | 4 | 4 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 116 | 92 |
Interest income recognized | 4 | 3 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 40 | 22 |
Interest income recognized | $ 0 | $ 0 |
Loans and Accounts Receivable45
Loans and Accounts Receivable (Details 6) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)M | Mar. 31, 2016USD ($)M | |
Troubled Debt Restructurings | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 10,000 | 11,000 |
Aggregated Outstanding Balance | $ 85 | $ 95 |
Card Member Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 8,000 | 8,000 |
Aggregated Outstanding Balance | $ 57 | $ 57 |
Average basis point reduction in interest rate by class of Card Member loans | 13.00% | 13.00% |
Card Member Receivables [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 2,000 | 3,000 |
Aggregated Outstanding Balance | $ 28 | $ 38 |
Average payment term extension | M | 22 | 16 |
Loans and Accounts Receivable46
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Troubled Debt Restructurings That Subsequently Defaulted [Domain] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 3 | 2 |
Aggregated Outstanding Balance Upon Payment Default | $ 12 | $ 10 |
Card Member Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 2 | 1 |
Aggregated Outstanding Balance Upon Payment Default | $ 11 | $ 9 |
Card Member Receivables [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 1 | 1 |
Aggregated Outstanding Balance Upon Payment Default | $ 1 | $ 1 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in the Card Member loans reserve for losses | ||
Balance, January 1 | $ 1,223 | $ 1,028 |
Card Member loans - provisions | 337 | 227 |
Card Member loans net write-offs - principal | (272) | (214) |
Card Member loans net write-offs - interest and fees | (51) | (40) |
Card Member loans reserves for losses - other | 11 | 11 |
Balance, September 30 | $ 1,248 | $ 1,012 |
Reserves For Losses (Details 1)
Reserves For Losses (Details 1) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Abstract] | ||
Card Member loans evaluated individually for impairment | $ 345 | $ 346 |
Reserves on Card Member loans evaluated individually for impairment | 60 | 60 |
Card Member loans evaluated collectively for impairment | 63,223 | 64,919 |
Reserves on Card Member loans evaluated collectively for impairment | $ 1,188 | $ 1,163 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in the Card Member receivables reserve for losses | ||
Balance, January 1 | $ 467 | $ 462 |
Card Member receivables - provisions | 213 | 169 |
Card Member receivables - net write-offs | (194) | (186) |
Card Member receivables reserves for losses - other | 5 | 1 |
Balance, September 30 | $ 491 | $ 446 |
Reserves for Losses (Details 3)
Reserves for Losses (Details 3) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Abstract] | ||
Card Member receivables evaluated individually for impairment | $ 60 | $ 55 |
Reserves on Card Member receivables evaluated individually for impairment | 28 | 28 |
Card Member receivables evaluated collectively for impairment | 47,585 | 47,253 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 463 | $ 439 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | $ 5 | $ 1 |
Card Member loans reserves for losses - other | 11 | 11 |
Allowance for Card Member Receivables and Reserves, Recoveries of Bad Debts | 93 | 101 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 100 | 88 |
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | 6 | 10 |
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 12 | 13 |
Unauthorized Transactions [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | 0 | |
Card Member loans reserves for losses - other | 0 | |
Foreign Currency Translation Adjustments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | 9 | 2 |
Card Member loans reserves for losses - other | 7 | 2 |
Other Items [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | (4) | (1) |
Card Member loans reserves for losses - other | $ 4 | 2 |
CardMember loans transferred from HFS to held for investment | 20 | |
CardMember reserves associated with loans held for investments | $ 7 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available for Sale Securities by Type | ||
Cost | $ 3,539 | $ 3,144 |
Gross Unrealized Gains | 35 | 35 |
Gross Unrealized Losses | (13) | (22) |
Estimated Fair Value | 3,561 | 3,157 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 1,686 | 2,019 |
Gross Unrealized Gains | 24 | 28 |
Gross Unrealized Losses | (4) | (11) |
Estimated Fair Value | 1,706 | 2,036 |
U.S. Government agency obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 12 | 12 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 12 | 12 |
U.S. Government treasury obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 1,135 | 465 |
Gross Unrealized Gains | 7 | 3 |
Gross Unrealized Losses | (6) | (8) |
Estimated Fair Value | 1,136 | 460 |
Corporate debt securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 19 | 19 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 19 | 19 |
Mortgage-backed securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 87 | 92 |
Gross Unrealized Gains | 3 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 90 | 95 |
Equity securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 1 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1 | 1 |
Foreign government bonds and obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 549 | 486 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | (1) | (1) |
Estimated Fair Value | 549 | 486 |
Availabe For Sale Securities Other [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 50 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (2) |
Estimated Fair Value | $ 48 | $ 48 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 397 | $ 451 |
Estimated Fair Value, 12 months or more | 32 | 32 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (10) | (19) |
Gross Unrealized Losses, 12 months or more | (2) | (2) |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 98 | 153 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (4) | (11) |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
U.S. Government agency obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 299 | 298 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (6) | (8) |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
Other [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 0 |
Estimated Fair Value, 12 months or more | 32 | 32 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | $ (2) | $ (2) |
Investment Securities (Detail54
Investment Securities (Details 2) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)securities | Dec. 31, 2016USD ($)securities | |
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 21 | 37 |
Number of securities, 12 months or more | securities | 6 | 6 |
Number of securities, total | securities | 27 | 43 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 397 | $ 451 |
Estimated Fair Value, 12 months or more | 32 | 32 |
Estimated Fair Value, Total | 429 | 483 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (10) | (19) |
Gross Unrealized Losses, 12 months or more | (2) | (2) |
Gross Unrealized Losses, Total | $ (12) | $ (21) |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 21 | 33 |
Number of securities, 12 months or more | securities | 6 | 6 |
Number of securities, total | securities | 27 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 397 | $ 411 |
Estimated Fair Value, 12 months or more | 32 | 32 |
Estimated Fair Value, Total | 429 | 443 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (10) | (13) |
Gross Unrealized Losses, 12 months or more | (2) | (2) |
Gross Unrealized Losses, Total | $ (12) | $ (15) |
Ratio Of Fair Value To Amortized Cost Less Than Ninety Percent [Member] | ||
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 0 | 4 |
Number of securities, 12 months or more | securities | 0 | 0 |
Number of securities, total | securities | 0 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 0 | $ 40 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Estimated Fair Value, Total | 0 | 40 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (6) |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
Gross Unrealized Losses, Total | $ 0 | $ (6) |
Investment Securities (Detail55
Investment Securities (Details 3) $ in Millions | Mar. 31, 2017USD ($) |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $ 689 |
Due after 1 year but within 5 years | 990 |
Due after 5 years but within 10 years | 365 |
Due after 10 years | 1,446 |
Total | 3,490 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 690 |
Estimated Fair Value, Due after 1 year but within 5 years | 992 |
Estimated Fair Value, Due after 5 years but within 10 years | 369 |
Estimated Fair Value, Due after 10 years | 1,462 |
Total | $ 3,513 |
Investment Securities (Detail56
Investment Securities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investment Securities (Details) [Abstract] | ||
Other-than-temporary impairments recognized during the period | $ 0 | $ 0 |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets from Trusts [Line Items] | ||
Restricted cash | $ 55 | $ 38 |
American Express Charge Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | 52 | 35 |
American Express Lending Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | $ 3 | $ 3 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Mar. 31, 2017USD ($) |
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 4.8 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 10.5 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
U.S.: | ||
Interest-bearing | $ 53,123 | $ 52,316 |
Non-interest-bearing | 322 | 367 |
Non-U.S.: | ||
Interest-bearing | 34 | 58 |
Non-interest-bearing | 311 | 301 |
Total customer deposits | 53,790 | 53,042 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 286 | 331 |
Non-U.S.: | ||
Non-interest-bearing | $ 299 | $ 285 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 31,420 | $ 30,980 |
Certificates of deposit - Direct | 284 | 291 |
Certificates of deposit - Third party | 11,617 | 11,925 |
Sweep accounts - Third party | 9,802 | 9,120 |
Other retail deposits: | ||
Non-U.S. deposits and U.S. non-interest bearing deposits | 82 | 110 |
Card Member credit balances - U.S. and non-U.S. | 585 | 616 |
Total customer deposits | $ 53,790 | $ 53,042 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Mar. 31, 2017USD ($) |
Time Deposits By Maturity | |
2,017 | $ 3,409 |
2,018 | 3,453 |
2,019 | 2,398 |
2,020 | 2,543 |
2,021 | 107 |
After 5 years | 7 |
Total | 11,917 |
United States [Member] | |
Time Deposits By Maturity | |
2,017 | 3,401 |
2,018 | 3,445 |
2,019 | 2,398 |
2,020 | 2,543 |
2,021 | 107 |
After 5 years | 7 |
Total | 11,901 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,017 | 8 |
2,018 | 8 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
After 5 years | 0 |
Total | $ 16 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 113 | $ 124 |
United States [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | 106 | 117 |
Non Us [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 7 | $ 7 |
Customer Deposits (Details Text
Customer Deposits (Details Textuals) | Mar. 31, 2017M |
Customer Deposits Textuals [Abstract] | |
Weighted Average Rate Domestic Deposit Certificates Of Deposit | 1.96% |
Weighted Average Maturity Certificates of Deposits | 47 |
Contingencies (Details Textuals
Contingencies (Details Textuals) $ in Millions | Mar. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 0 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 440 |
Derivatives and Hedging Activ65
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | $ 230 | $ 765 |
Total fair value of derivatives liabilties | 412 | 280 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | 30 | 54 |
Derivative asset and liability netting | (94) | (157) |
Total derivative assets, net | 106 | 555 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 110 | 458 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 57 | 111 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 53 | 347 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 120 | 308 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | 0 | (68) |
Derivative asset and liability netting | (94) | (157) |
Total derivative liabilities, net | 318 | 55 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 196 | 104 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 216 | 176 |
Other Liabilities [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 0 | 69 |
Other Liabilities [Member] | Net Investment Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 196 | 35 |
Individually Significant Counterparties [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, net | 0 | 0 |
Total derivative liabilities, net | $ 0 | $ 0 |
Derivatives and Hedging Activ66
Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative contract | $ 75 | $ 165 |
Hedged item | (50) | (171) |
Net hedge ineffectiveness | $ 25 | $ (6) |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities (Details 2) - Other Expense [Member] - Foreign exchange contracts [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 5 | $ 0 |
Amount Of Ineffectiveness On Net Investment Hedges | $ 0 | $ 1 |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities (Details Textuals) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||
Net reduction in interest expense on long term debt and other | $ 44 | $ 59 | |
Shares held in equity investment sold | 0 | ||
Margin On Interest Rate Swap Not Netted | $ 173 | $ 169 | |
Derivative [Line Items] | |||
Notional amount of long-term debt | 19.9 | 17.7 | |
Equity investment | 49 | 49 | |
Effective portion of gain (loss) on hedges | 229 | 92 | |
Net hedge ineffectiveness | 0 | 0 | |
Other Expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) in Changes of Fair Value of Derivatives not designated as hedges | (17) | (14) | |
Gain on embedded derivatives | 1 | $ 8 | |
ICBC [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Equity investment | 0 | ||
Fair Value Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 0 | 0 | |
Net Investment Hedging [Member] | Other Expense [Member] | |||
Derivative [Line Items] | |||
Amount reclassified from AOCI into income | 0 | ||
Net hedge ineffectiveness | 0 | ||
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Other Expense [Member] | |||
Derivative [Line Items] | |||
Amount reclassified from AOCI into income | 0 | ||
Not Sold Or Repledged [Member] | |||
Derivative [Line Items] | |||
Securities received as collateral | $ 0 | 18 | |
Risk Exposure Low [Member] | |||
Derivative [Line Items] | |||
Total derivative assets, net | $ 537 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Investment securities: | ||
Equity securities and other | $ 49 | $ 49 |
Debt securities | 3,512 | 3,108 |
Derivatives | 230 | 765 |
Total assets | 3,791 | 3,922 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities and other | 1 | 1 |
Debt securities | 1,136 | 460 |
Derivatives | 0 | 0 |
Total assets | 1,137 | 461 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities and other | 48 | 48 |
Debt securities | 2,376 | 2,648 |
Derivatives | 230 | 765 |
Total assets | 2,654 | 3,461 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities and other | 0 | 0 |
Debt securities | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair Values (Details 1)
Fair Values (Details 1) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities [Abstract] | ||
Derivatives | $ 412 | $ 280 |
Total liabilities | 412 | 280 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 412 | 280 |
Total liabilities | 412 | 280 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $ 29,366 | $ 25,208 | $ 25,045 | $ 22,762 |
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 11,917 | |||
Long-term debt | 51,647 | 46,990 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 47,154 | 46,841 | ||
Card Member loans, net | 62,320 | 64,042 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 16,757 | 15,113 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 29,000 | 25,000 | ||
Other financial assets | 50,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 64,000 | 65,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 65,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 12,000 | 12,000 | ||
Long-term debt | 52,000 | 47,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 29,000 | 25,000 | ||
Other financial assets | 50,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 65,000 | 66,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 65,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 12,000 | 12,000 | ||
Long-term debt | 53,000 | 48,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 16,800 | 15,200 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 7,800 | 8,800 | ||
Card Member loans, net | 24,300 | 26,000 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 27,000 | 22,000 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Level 2 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 2,000 | 3,000 | ||
Other financial assets | 50,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 65,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 12,000 | 12,000 | ||
Long-term debt | 53,000 | 48,000 | ||
Level 3 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 0 | 0 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 65,000 | 66,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | $ 0 | $ 0 |
Fair Values (Details Textuals)
Fair Values (Details Textuals) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Assets measured at fair value for impairment | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 51,000 | $ 48,000 |
Amount of related liability | 86 | 86 |
Return And Merchant Protection [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 45,000 | 42,000 |
Amount of related liability | 37 | 37 |
Other Guarantees [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | 6,000 | 6,000 |
Amount of related liability | $ 49 | $ 49 |
Changes in Accumulated Other 74
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in Other Comprehensive income | ||
Balances as of start of period | $ (2,784) | |
(Decrease) increase due to amounts reclassified into earnings | $ 2 | |
Pension and other postretirement benefit gains | (8) | 26 |
Balances as of end of period | (2,470) | |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||
Investment securities | 3 | (1) |
Foreign currency translation adjustments | (191) | 15 |
Cash Flow Hedges | (140) | (54) |
Pension and other postretirement benefit losses | (9) | 19 |
Total tax impact | (337) | (20) |
Tax Benefit Recognized in the period | 289 | |
Accumulated Other Comprehensive Loss [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | (2,784) | (2,534) |
Net unrealized gains (losses) | 6 | 4 |
(Decrease) increase due to amounts reclassified into earnings | 0 | (2) |
Net translation loss of investments in foreign operations | 545 | 96 |
Net losses gains related to hedges of investment in foreign operations | (229) | (92) |
Pension and other postretirement benefit gains | (8) | 26 |
Net change in accumulated other comprehensive income (loss) | 314 | 32 |
Balances as of end of period | (2,470) | (2,502) |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | 7 | 58 |
Net unrealized gains (losses) | 6 | 4 |
(Decrease) increase due to amounts reclassified into earnings | 0 | (2) |
Net translation loss of investments in foreign operations | 0 | 0 |
Net losses gains related to hedges of investment in foreign operations | 0 | 0 |
Pension and other postretirement benefit gains | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 6 | 2 |
Balances as of end of period | 13 | 60 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | (2,262) | (2,044) |
Net unrealized gains (losses) | 0 | 0 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 |
Net translation loss of investments in foreign operations | 545 | 96 |
Net losses gains related to hedges of investment in foreign operations | (229) | (92) |
Pension and other postretirement benefit gains | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 316 | 4 |
Balances as of end of period | (1,946) | (2,040) |
Net Unrealized Pension and Other Postretirement Gains (Losses) [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | (529) | (548) |
Net unrealized gains (losses) | 0 | 0 |
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 |
Net translation loss of investments in foreign operations | 0 | 0 |
Net losses gains related to hedges of investment in foreign operations | 0 | 0 |
Pension and other postretirement benefit gains | (8) | 26 |
Net change in accumulated other comprehensive income (loss) | (8) | 26 |
Balances as of end of period | $ (537) | $ (522) |
Changes in Accumulated Other 75
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other non-interest revenue | $ 409 | $ 486 |
Interest expense on long-term debt and other | 294 | 275 |
Other expenses | 1,407 | 1,420 |
(Decrease) increase due to amounts reclassified into earnings | 2 | |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
(Decrease) increase due to amounts reclassified into earnings | 0 | (2) |
Foreign Currency Translation Adjustments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
(Decrease) increase due to amounts reclassified into earnings | 0 | 0 |
Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
(Decrease) increase due to amounts reclassified into earnings | 0 | (2) |
Reclassification out of accumulated other comprehensive income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
(Decrease) increase due to amounts reclassified into earnings | 0 | 2 |
Reclassification out of accumulated other comprehensive income [Member] | Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other non-interest revenue | 0 | 4 |
Income tax provision for other non-interest revenue | 0 | (2) |
Other non-interest revenue, net of taxes | $ 0 | $ 2 |
Non-Interest Revenue and Expe76
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Foreign currency conversion fee revenue | $ 199 | $ 196 |
Delinquency fees | 214 | 200 |
Loyalty Partner-related fees | 102 | 94 |
Travel commissions and fees | 84 | 80 |
Other | 114 | 110 |
Total Other fees and commissions | $ 713 | $ 680 |
Non-Interest Revenue and Expe77
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Global Network Services partner revenues | $ 156 | $ 145 |
Other | 253 | 341 |
Total other revenues | $ 409 | $ 486 |
Non-Interest Revenue and Expe78
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Professional services | $ 512 | $ 604 |
Occupancy and equipment | 475 | 465 |
Communications | 63 | 83 |
Gain on sale of held for sale (HFS) portfolio | 0 | (127) |
Other | 357 | 395 |
Total other, net | $ 1,407 | $ 1,420 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes (Textuals) | ||
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 104 | |
Decrease in Unrecognized tax benefits, amounts recorded to equity | $ 331 | |
Actual tax rates | 31.90% | 34.70% |
Tax Benefit Recognized in the period | $ 289 | |
Unrecognized tax benefits that, if recognized, could impact effective tax rate. | $ 71 | |
Internal Revenue Service (IRS) [Member] | Earliest Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years by major tax jurisdiction | 2,008 | |
Internal Revenue Service (IRS) [Member] | Latest Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years by major tax jurisdiction | 2,014 |
Earnings Per Common Share (EP80
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Basic and diluted: | |||
Net income | $ 1,237 | $ 1,426 | |
Preferred dividends | (21) | (21) | |
Net income available to common stockholders - basic | 1,216 | 1,405 | |
Net income available to common stockholders - diluted | 1,216 | 1,405 | |
Earnings allocated to participating share awards | (10) | (11) | |
Net income attributable to common shareholders | $ 1,206 | $ 1,394 | |
Denominator: | |||
Basic | 899 | 961 | |
Add: Weighted-average stock options | 4 | 2 | |
Diluted | 903 | 963 | |
Earnings Per Common Share, Basic (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [1] | $ 1.34 | $ 1.45 |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [2] | $ 1.34 | $ 1.45 |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per Share, amount | 1.2 | 1.5 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 10 million and $ 11 million for the three months ended March 31 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 21 million for both the three months ended March 31 , 2017 and 2016 . | ||
[2] | Represents net income less (i) earnings allocated to participating share awards of $ 10 million and $ 11 million for the three months ended March 31 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 21 million for both the three months ended March 31 , 2017 and 2016 . |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Non-interest revenues | $ 6,389 | $ 6,508 | |
Interest income | 1,943 | 2,005 | |
Interest expense | 443 | 425 | |
Total revenues, net of interest expense | 7,889 | 8,088 | |
Net income | 1,237 | 1,426 | |
Total assets | 161,385 | $ 158,893 | |
Total equity | 20,935 | 20,501 | $ 20,501 |
U S Consumer Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Non-interest revenues | 1,857 | 2,029 | |
Interest income | 1,308 | 1,391 | |
Interest expense | 146 | 140 | |
Total revenues, net of interest expense | 3,019 | 3,280 | |
Net income | 469 | 694 | |
Total assets | 81,000 | 86,000 | |
Total equity | 7,000 | 7,000 | |
International Consumer and Network Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Non-interest revenues | 1,195 | 1,140 | |
Interest income | 235 | 227 | |
Interest expense | 53 | 54 | |
Total revenues, net of interest expense | 1,377 | 1,313 | |
Net income | 218 | 188 | |
Total assets | 36,000 | 34,000 | |
Total equity | 3,000 | 3,000 | |
Global Commercial Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Non-interest revenues | 2,271 | 2,190 | |
Interest income | 319 | 321 | |
Interest expense | 109 | 95 | |
Total revenues, net of interest expense | 2,481 | 2,416 | |
Net income | 418 | 485 | |
Total assets | 48,000 | 47,000 | |
Total equity | 7,000 | 7,000 | |
Global Merchant Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Non-interest revenues | 1,017 | 1,041 | |
Interest income | 0 | 0 | |
Interest expense | (58) | (59) | |
Total revenues, net of interest expense | 1,075 | 1,100 | |
Net income | 363 | 357 | |
Total assets | 25,000 | 24,000 | |
Total equity | 3,000 | 2,000 | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Non-interest revenues | 49 | 108 | |
Interest income | 81 | 66 | |
Interest expense | 193 | 195 | |
Total revenues, net of interest expense | (63) | (21) | |
Net income | (231) | (298) | |
Total assets | (29,000) | (32,000) | |
Total equity | $ 1,000 | $ 2,000 |