Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 18, 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 | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 883,979,644 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Non-interest revenues | ||||||||
Discount revenue | $ 4,815 | $ 4,824 | $ 9,334 | $ 9,467 | ||||
Net card fees | 771 | 715 | 1,519 | 1,414 | ||||
Other fees and commissions | 752 | 702 | 1,465 | 1,382 | ||||
Other | 439 | 545 | 848 | 1,031 | ||||
Total non-interest revenues | 6,777 | 6,786 | 13,166 | 13,294 | ||||
Interest income | ||||||||
Interest on loans | 1,947 | 1,818 | 3,807 | 3,756 | ||||
Interest and dividends on investment securities | 23 | 34 | 46 | 70 | ||||
Deposits with banks and other | 82 | 33 | 142 | 64 | ||||
Total interest income | 2,052 | 1,885 | 3,995 | 3,890 | ||||
Interest expense | ||||||||
Deposits | 176 | 150 | 325 | 300 | ||||
Long-term debt and other | 346 | 286 | 640 | 561 | ||||
Total interest expense | 522 | 436 | 965 | 861 | ||||
Net interest income | 1,530 | 1,449 | 3,030 | 3,029 | ||||
Total revenues net of interest expense | 8,307 | 8,235 | 16,196 | 16,323 | ||||
Provisions for losses | ||||||||
Charge card | 163 | 153 | 376 | 322 | ||||
Card Member loans | 404 | 285 | 741 | 512 | ||||
Other | 17 | 25 | 40 | 63 | ||||
Total provisions for losses | 584 | 463 | 1,157 | 897 | ||||
Total revenues net of interest expense after provisions for losses | 7,723 | 7,772 | 15,039 | 15,426 | ||||
Expenses | ||||||||
Marketing and promotion | 830 | 788 | 1,530 | 1,515 | ||||
Card Member Rewards | 1,926 | 1,766 | 3,733 | 3,469 | ||||
Card Member services and other | 349 | 281 | 670 | 563 | ||||
Salaries and employee benefits | 1,293 | 1,451 | 2,557 | 2,789 | ||||
Other, net | 1,376 | 470 | 2,783 | 1,890 | ||||
Total expenses | 5,774 | 4,756 | 11,273 | 10,226 | ||||
Pretax income | 1,949 | 3,016 | 3,766 | 5,200 | ||||
Income tax provision | 609 | 1,001 | 1,189 | 1,759 | ||||
Income from continuing operations | 1,340 | 2,015 | 2,577 | 3,441 | ||||
Net income | $ 1,340 | $ 2,015 | $ 2,577 | $ 3,441 | ||||
Earnings Per Common Share, Basic (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.47 | [1] | $ 2.11 | [1] | $ 2.81 | [2] | $ 3.55 | [2] |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.47 | [1] | $ 2.1 | [1] | $ 2.8 | [2] | $ 3.54 | [2] |
Average common shares outstanding for earnings per common share: | ||||||||
Basic | 890 | 938 | 895 | 949 | ||||
Diluted | 893 | 941 | 898 | 952 | ||||
Cash dividends declared per common share | $ 0.32 | $ 0.29 | $ 0.64 | $ 0.58 | ||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 11 million and $ 17 million for the three months ended June 30 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 19 million for both the three months ended June 30 , 2017 and 2016 . | |||||||
[2] | Represents net income less (i) earnings allocated to participating share awards of $ 21 million and $ 28 million for the six months ended June 30 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 40 million for both the six months ended June 30 , 2017 and 2016 . |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Income [Abstract] | ||||
Earnings allocated to participating share awards | $ 11 | $ 17 | $ 21 | $ 28 |
Dividends Preferred Stock | $ 19 | $ 19 | $ 40 | $ 40 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,340 | $ 2,015 | $ 2,577 | $ 3,441 |
Other comprehensive income (loss): | ||||
Net unrealized securities gains, net of tax | 0 | 5 | 6 | 7 |
Foreign currency translation adjustments, net of tax | 33 | (130) | 349 | (126) |
Pension and other postretirement benefits | 9 | 6 | 1 | 32 |
Other comprehensive income (loss) | 42 | (119) | 356 | (87) |
Comprehensive income | $ 1,382 | $ 1,896 | $ 2,933 | $ 3,354 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Cash and due from banks | $ 2,709 | $ 3,278 |
Interest-bearing deposits in banks | 26,363 | 20,779 |
Short-term investment securities | 1,370 | 1,151 |
Total cash and cash equivalents | 30,442 | 25,208 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entity), less reserves | 48,930 | 46,841 |
Other receivables, less reserves | 2,832 | 3,232 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entity), less reserves | 64,651 | 64,042 |
Other loans, less reserves | 1,855 | 1,419 |
Investment securities | 3,360 | 3,157 |
Premises and equipment, less accumulated depreciation and amortization | 4,445 | 4,433 |
Other assets (includes restricted cash of consolidated variable interest entities) | 10,482 | 10,561 |
Total assets | 166,997 | 158,893 |
Liabilities | ||
Customer deposits | 57,726 | 53,042 |
Travelers Cheques and other prepaid products | 2,503 | 2,812 |
Accounts payable | 12,106 | 11,190 |
Short-term borrowings (includes debt issued by consolidated variable interest entity) | 3,426 | 5,581 |
Long-term debt (includes debt issued by consolidated variable interest entities) | 51,945 | 46,990 |
Other liabilities | 18,116 | 18,777 |
Total liabilities | 145,822 | 138,392 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 177 | 181 |
Additional paid-in capital | 12,456 | 12,733 |
Retained earnings | 10,970 | 10,371 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax | 13 | 7 |
Foreign currency translation adjustments, net of tax | (1,913) | (2,262) |
Net unrealized pension and other postretirement benefits, net of tax | (528) | (529) |
Total accumulated other comprehensive loss | (2,428) | (2,784) |
Total shareholders' equity | 21,175 | 20,501 |
Total liabilities and shareholders' equity | $ 166,997 | $ 158,893 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Card Member receivables, gross | $ 49,405 | $ 47,308 |
Card Member loans, gross | 65,971 | 65,265 |
Other assets | 10,482 | 10,561 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 102 | 115 |
Accounts receivable | ||
Card Member receivables, reserves | 475 | 467 |
Other receivables, reserves | 32 | 45 |
Loans | ||
Card Member loans, reserves | 1,320 | 1,223 |
Other loans, reserves | 54 | 42 |
Accumulated depreciation and amortization | 5,596 | 5,145 |
Restricted cash | 55 | 38 |
Short Term Borrowings | 3,426 | 5,581 |
Long-term Debt | $ 51,945 | $ 46,990 |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 885,000,000 | 904,000,000 |
Common shares, outstanding | 885,000,000 | 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 | (362) | 24 |
Net unrealized pension and other postretirement benefits, tax | (194) | (186) |
Variable Interest Enterprise [Member] | ||
Card Member receivables, gross | 7,949 | 8,874 |
Card Member loans, gross | 24,521 | 26,129 |
Loans | ||
Restricted cash | 55 | 38 |
Short Term Borrowings | 0 | 0 |
Long-term Debt | $ 16,002 | $ 15,113 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash Flows from Operating Activities | |||
Net income | $ 2,577 | $ 3,441 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Provisions for losses | 1,157 | 897 | |
Depreciation and amortization | 615 | 536 | |
Deferred taxes and other | 2 | (852) | |
Stock-based compensation | 152 | 133 | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other receivables | 832 | 293 | |
Other assets | 181 | (107) | |
Accounts payable and other liabilities | (902) | (697) | |
Travelers Cheques and other prepaid products | (330) | (444) | |
Net cash provided by operating activities | 4,284 | 3,200 | |
Cash Flows from Investing Activities | |||
Sales of available-for-sale investment securities | 1 | 45 | |
Maturities and redemptions of available-for-sale investment securities | 1,502 | 567 | |
Purchase of investments | (1,768) | (791) | |
Net (increase) decrease in Card Member receivables and loans, including held for sale | [1] | (3,169) | 13,002 |
Purchase of premises and equipment, net of sales | (538) | (649) | |
Acquisitions/Dispositions, net of cash acquired | (174) | (162) | |
Net (inrease) decrease in restricted cash | (12) | 126 | |
Net cash (used in) provided by investing activities | (4,158) | 12,138 | |
Cash Flows from Financing Activities | |||
Net increase (decrease) in customer deposits | 4,666 | (594) | |
Net decrease in short-term borrowings | (2,124) | (2,520) | |
Issuance of long-term debt | 17,124 | 3,778 | |
Principal payments on long-term debt | (12,349) | (1,558) | |
Issuance of American Express preferred shares | 0 | 0 | |
Issuance of American Express common shares | 44 | 75 | |
Repurchase of American Express common shares | (1,767) | (2,914) | |
Dividends paid | (620) | (601) | |
Net cash provided by (used in) financing activities | 4,974 | (4,334) | |
Effect of foreign currency exchange rates on cash and cash equivalents | 134 | 1 | |
Net increase in cash and cash equivalents | 5,234 | 11,005 | |
Cash and cash equivalents at beginning of period | 25,208 | 22,762 | |
Cash and cash equivalents at end of period | $ 30,442 | $ 33,767 | |
[1] | Re fer to Note 2 for additional information. |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Increase decrease in debt exchange [Line Items] | ||
Sale of premises and equipment | $ 1 | $ 2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 establishes the principles to apply to determine the amount and timing of revenue recognition, specifying the accounting for certain costs rela ted to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and 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, the 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 s tandard since its issuance in 2014 and has made significant progress in evaluating the potential impact on its Consolidated Financial Statements. There will be changes to the recognition timing and classification of revenues and expenses, including potenti al changes to the presentation of certain credit and charge card related costs that are currently netted against discount revenue . T he Company does not expect a significant impact to pretax income upon adoption. The Company is also in the process of implem enting changes to its accounting policies, business processes, systems and internal controls to support the recognition , measurement and disclosure requirements under the new standard. In January 2016, the FASB issued new accounting guidance on the recogn ition and measurement 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 disclosur e requirements associated with the fair value of financial instruments. In the ordinary course of business, the Company makes investments in non-public companies currently recognized under cos t method accounting. Under the new guidance, these investments will be prospecti vely adjusted for observable price changes upon identification of identical or similar t ransactions of the same issuer. The Company conti nues to evaluate the impact this guidance will have on its financial position, results of operations a nd cash flows, 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. The 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 modified 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 upgrading its existing lease administration software for new lease accounting functionality , busine ss proc esses and internal controls in preparation for the implementation. Specifically, the Company is currently reviewing its lease portfolio and is evaluating and interpreting the requirements under the guidance, including the available accounting policy electi ons, 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, which 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 from 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 inform ation. The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance wi ll have on its financial position, results of operations and cash flows; however, 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 increas es to the Company’s credit reserves as the new guidance involv es earlier recognition of expected losses for the life of the assets . The Company has establis hed an enterp rise -wide, cross-discipline governance structure to implement the new standard. The Company is currently identifying key in terpretive issues, and is evaluat ing existing credit loss forecasting models and processes in relation to the new guidance to determi ne what modifications may be required. |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 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 half of 2016, the Company completed the sales of substantially all of its outstanding Card Member loans and receivables HFS and recognized gains, as an expense reduction, in Oth er expenses, of $127 million and $1.1 billion during the three months ended March 31, 2016 a nd June 30, 2016, respectively. The impact of the sales, including the recognition of the proceeds received and the reclassification of the retained Card Member loa ns and receivables, is reported within the investing section of the Consolidated Statements of Cash Flows as a net decrease in Card Member receivables and loans, including HFS. From the point of classification as HFS through the sale completion dates, the Company continued to recognize discount revenue, interest income, 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 portfolios recogniz ed in Other expenses. |
Loans and Accounts Receivable
Loans and Accounts Receivable | 6 Months Ended |
Jun. 30, 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. Card Member loans by segment and Other loans as of June 30 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 48,348 $ 48,758 International Consumer and Network Services 7,245 6,971 Global Commercial Services 10,378 9,536 Card Member loans 65,971 65,265 Less: Reserve for losses 1,320 1,223 Card Member loans, net $ 64,651 $ 64,042 Other loans, net (b) $ 1,855 $ 1,419 Includes approximately $ 24.5 billion and $ 26.1 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of June 30 , 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 $ 54 million and $ 42 million as of June 30 , 2017 and December 31, 2016 , respectively. Card Member accounts receivable by segment and Other receivables as of June 30 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 11,344 $ 12,302 International Consumer and Network Services 5,988 5,966 Global Commercial Services 32,073 29,040 Card Member receivables 49,405 47,308 Less: Reserve for losses 475 467 Card Member receivables, net $ 48,930 $ 46,841 Other receivables, net (b) $ 2,832 $ 3,232 Includes $ 7.9 billion and $ 8.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30 , 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 $ 32 million and $ 45 million as of June 30 , 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 June 30 , 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 $ 47,797 $ 155 $ 119 $ 277 $ 48,348 International Consumer and Network Services 7,124 38 25 58 7,245 Global Commercial Services Global Small Business Services $ 10,207 $ 35 $ 25 $ 57 $ 10,324 Global Corporate Payments (a) (b) (b) (b) $ ― $ 54 Card Member Receivables: U.S. Consumer Services $ 11,220 $ 42 $ 24 $ 58 $ 11,344 International Consumer and Network Services 5,903 25 16 44 5,988 Global Commercial Services Global Small Business Services $ 14,967 $ 75 $ 41 $ 102 $ 15,185 Global Corporate Payments (a) (b) (b) (b) $ 136 $ 16,888 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. See also (b). 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 six months ended June 30 : 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 % 1.1 % 1.5 % 1.7 % 1.1 % International Consumer and Network Services 2.0 % 2.5 % 1.7 % 2.0 % 2.4 % 1.7 % Global Small Business Services 1.5 % 1.8 % 1.1 % 1.3 % 1.6 % 1.1 % Card Member Receivables: U.S. Consumer Services 1.4 % 1.5 % 1.1 % 1.5 % 1.8 % 1.2 % International Consumer and Network Services 2.0 % 2.2 % 1.4 % 2.2 % 2.4 % 1.4 % Global Small Business Services 1.7 % 1.9 % 1.4 % 1.7 % 2.0 % 1.4 % 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 0.10 % 0.8 % 0.09 % 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 June 30 , 2017 and December 31, 2016 ; therefore, th is segment’s receivables are not included in the following tables . As of June 30, 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 $ 175 $ 156 $ 153 $ 132 $ 616 $ 560 $ 47 International Consumer and Network Services 58 ― ― ― 58 57 ― Global Commercial Services 33 34 26 27 120 110 9 Card Member Receivables: U.S. Consumer Services ― ― 10 8 18 18 4 Global Commercial Services ― ― 25 15 40 40 9 Total $ 266 $ 190 $ 214 $ 182 $ 852 $ 785 $ 69 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 $ 18 million and $ 20 million that are over 90 days past due and accruing interest and $ 7 million and $ 11 million that are non-accruals as of June 30 , 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 progr am and $43 million and $39 million of Card Member accounts that were not in compliance with the terms of the modification programs as of June 30 , 2017 and December 31, 2016 , respectively . The following table provides information with respect to 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 and six months ended June 30 : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 618 $ 16 $ 616 $ 32 International Consumer and Network Services 56 4 55 8 Global Commercial Services 120 4 117 8 Card Member Receivables: U.S. Consumer Services 18 ― 18 ― Global Commercial Services 41 ― 40 ― Total $ 853 $ 24 $ 846 $ 48 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 551 $ 12 $ 555 $ 24 International Consumer and Network Services 54 4 53 8 Global Commercial Services 102 3 103 6 Card Member Receivables: U.S. Consumer Services 13 ― 12 ― Global Commercial Services 25 ― 20 ― Total $ 745 $ 19 $ 743 $ 38 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 and six months ended June 30 , 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 Six Months Ended June 30, 2017 June 30, 2017 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Troubled Debt Restructurings: Card Member Loans 7 $ 46 10 (b) 15 $ 103 11 (b) Card Member Receivables 1 18 (c) 32 3 46 (c) 26 Total 8 $ 64 18 $ 149 Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Troubled Debt Restructurings: Card Member Loans 7 $ 50 10 (b) 15 $ 107 11 (b) Card Member Receivables 2 27 (c) 17 5 65 (c) 17 Total 9 $ 77 20 $ 172 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 and six months ended June 30 , 2017 and 2016 . A Card Member is considered in default of a modification program after one and up to two misse d 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. Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 10 4 $ 21 Card Member Receivables 1 2 2 3 Total 3 $ 12 6 $ 24 Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 9 2 $ 18 Card Member Receivables 1 1 2 2 Total 2 $ 10 4 $ 20 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 | 6 Months Ended |
Jun. 30, 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. Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the six months ended June 30 : (Millions) 2017 2016 Balance, January 1 $ 1,223 $ 1,028 Provisions (a) 741 512 Net write-offs (b) Principal (557) (437) Interest and fees (106) (80) Other (c) 19 68 Balance, June 30 $ 1,320 $ 1,091 Provisions for principal, interest and fee reserve components. Principal write-offs are presented less recoveries of $ 205 million and $ 179 million, and include net write-offs from TDRs of $ 21 million and $ 17 million, for the six months ended June 30 , 2017 and 2016 , respectively. Recoveries of interest and fees were de minimis. Includes foreign currency translation adjustments of $ 10 million and $ (2) million and other adjustments of $ 9 million and $ 3 million for the six months ended June 30 , 2017 and 2016 , respectively. The six months ended June 30, 2016 also includes reserves of $7 million in the first qua rter and $60 million in the second quarter associated with $20 million and $245 million of retained Card Member loans, respectively, reclassified from HFS to held for investment during those periods as a result of retaining certain loans in connection with the respec tive sales of JetBlue and Costco cobrand card portfolios. 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 June 30 , 2017 and Decemb er 31, 2016 : (Millions) 2017 2016 Card Member loans evaluated individually for impairment (a) $ 338 $ 346 Related reserves (a) $ 56 $ 60 Card Member loans evaluated collectively for impairment (b) $ 65,633 $ 64,919 Related reserves (b) $ 1,264 $ 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 six months ended June 3 0 : (Millions) 2017 2016 Balance, January 1 $ 467 $ 462 Provisions (a) 376 322 Net write-offs (b) (373) (359) Other (c) 5 (2) Balance, June 30 $ 475 $ 423 Provisions for principal and fee reserve components. P rincipal and fee components are presented less recoveries of $ 181 million and $ 202 million, including net write-offs from TDRs of $ 7 million and $ 16 million, for the six months ended June 30 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ 14 and $ (1) million and other adjustments of $ (9) million and $ (1) million for the six months ended June 30 , 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 June 30 , 2017 and December 31, 2016 : (Millions) 2017 2016 Card Member receivables evaluated individually for impairment (a) $ 58 $ 55 Related reserves (a) $ 13 $ 28 Card Member receivables evaluated collectively for impairment $ 49,347 $ 47,253 Related reserves (b) $ 462 $ 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 | 6 Months Ended |
Jun. 30, 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 June 30 , 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 $ 1,563 $ 20 $ (2) $ 1,581 $ 2,019 $ 28 $ (11) $ 2,036 U.S. Government agency obligations 12 ― ― 12 12 ― ― 12 U.S. Government treasury obligations 1,114 9 (4) 1,119 465 3 (8) 460 Corporate debt securities ― ― ― ― 19 ― ― 19 Mortgage-backed securities (a) 79 2 ― 81 92 3 ― 95 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 518 1 (1) 518 486 1 (1) 486 Other (b) 50 ― (2) 48 50 ― (2) 48 Total $ 3,337 $ 32 $ (9) $ 3,360 $ 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 June 30 , 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 $ 99 $ (2) $ ― $ ― $ 153 $ (11) $ ― $ ― U.S. Government treasury obligations 366 (4) ― ― 298 (8) ― ― Other ― ― 32 (2) ― ― 32 (2) Total $ 465 $ (6) $ 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 June 30 , 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% 23 $ 465 $ (6) 6 $ 32 $ (2) 29 $ 497 $ (8) Total as of June 30, 2017 23 $ 465 $ (6) 6 $ 32 $ (2) 29 $ 497 $ (8) 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 June 30 , 2017 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 623 $ 623 Due after 1 year but within 5 years 979 984 Due after 5 years but within 10 years 294 298 Due after 10 years 1,390 1,406 Total $ 3,286 $ 3,311 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 | 6 Months Ended |
Jun. 30, 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 June 30 , 2017 and December 31, 2016 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2017 2016 Lending Trust $ 53 $ 35 Charge Trust 2 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 activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addi tion, 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 June 30 , 2017 , TRS’ direct and indirect owne rship of variable interests was $ 9.8 billion for the Lending Trust and $ 6.5 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 s ignificant to both the Lending Trust 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 triggering 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 six months ended June 30 , 2017 and the year ended December 31, 2016 , no such triggering events occurred. |
Customer Deposits
Customer Deposits | 6 Months Ended |
Jun. 30, 2017 | |
Deposit Liabilities Disclosures [Abstract] | |
Customer Deposits | 7. Customer Deposits As of June 30 , 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 $ 57,012 $ 52,316 Non-interest bearing (includes Card Member credit balances of: 2017, $309 million; 2016, $331 million) 348 367 Non-U.S.: Interest bearing 29 58 Non-interest bearing (includes Card Member credit balances of: 2017, $325 million; 2016, $285 million) 337 301 Total customer deposits $ 57,726 $ 53,042 Customer deposits by deposit type as of June 30 , 2017 and December 31, 2016 were as follows: (Millions) 2017 2016 U.S. retail deposits: Savings accounts – Direct $ 30,276 $ 30,980 Certificates of deposit: (a) Direct 285 291 Third-party (brokered) 14,997 11,925 Sweep accounts – Third-party (brokered) 11,454 9,120 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 80 110 Card Member credit balances ― U.S. and non-U.S. 634 616 Total customer deposits $ 57,726 $ 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 46 months and 2.05 perce nt, respectively, as of June 30, 2017 . The scheduled maturities of certificates of deposit as of June 30 , 2017 were as follows: (Millions) U.S. Non-U.S. Total 2017 $ 2,400 $ 7 $ 2,407 2018 4,463 9 4,472 2019 3,447 ― 3,447 2020 3,069 ― 3,069 2021 917 ― 917 After 5 years 986 ― 986 Total $ 15,282 $ 16 $ 15,298 As of June 30 , 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. $ 103 $ 117 Non-U.S. 5 7 Total $ 108 $ 124 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 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 Quarterly Report on Form 10-Q and P art 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 intern ational 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 in the relevant jurisdictions, t he 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 legal proceedings range from cas es 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, applicati on 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 plaintiff or class, many seek an unsp ecified 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 matters 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 sufficiently such that the Company is a ble 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 and (b) the amount of loss can b e 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 t hat 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 $ 450 million in excess of any reserves related to t hose 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 proceedin g 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 resolu tion of merchant claims, could have a material impact on the Company’s results of operations. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 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 June 30 , 2017 and December 31, 2016 , no credit risk 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 June 30 , 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) $ 39 $ 111 $ ― $ 69 Net investment hedges - Foreign exchange contracts 28 347 265 35 Total derivatives designated as hedging instruments 67 458 265 104 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 144 308 170 176 Total derivatives, gross 211 766 435 280 Less: Cash collateral netting (c)(d) (20) (54) (1) (68) Derivative asset and derivative liability netting (e) (73) (157) (73) (157) Total derivatives, net (f) $ 118 $ 555 $ 361 $ 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 June 30 , 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 foreign c urrency 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) arising f rom derivatives executed with the same counterparty under an enforceable master netting arrangement. The Company held no non-cash collateral as of June 30 , 2017 . As of December 31, 2016, t he Company received non-cash collateral from a counterparty 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 n ot reduce the net exposure on the Company’s Consolidated Balance Sheets. Addit ionally, the Company posted $170 million and $169 million as of June 30 , 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 a mount 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 e xposure to any single derivative counterparty. The total net derivative assets and net derivative 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 June 30 , 2017 and December 31, 2016 are subject to master netting agreements with its derivative counterparties. The Company has no derivative amounts subject to enforceable master netting arrangements that are not offse t on the Consolidated Balance Sheets. Fair Value Hedges The Company is exposed to interest 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 hedgin g relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rat e. The Company has $19.5 billion and $17.7 billion of fixed-rat e debt obligations designated in fair value hedging relationships as of June 30 , 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 and six months ended June 30 : Three Months Ended June 30, Six Months Ended June 30, (Millions) 2017 2016 2017 2016 Interest rate derivative contracts $ 6 $ 61 $ (69) $ 226 Hedged items (25) (53) 25 (224) Net hedge ineffectiveness $ (19) $ 8 $ (44) $ 2 The Company also recognized a net reduction in interest expense on l ong-term debt of $37 million and $59 million for the three months ended June 30 , 2017 and 2016 , respectively, and $81 million and $118 million for the six months ended June 30 , 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 gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation ad justment, was a loss of $102 million and a gain of $135 million for the three months ended June 30 , 2017 and 2016 , respectively , and a loss of $331 million and a gain of $43 million for the six months ended June 30 , 2017 and 2016 , respectively , with any ineffective portion recognized in Other expen ses during the period. T he net hedge ineffectiveness recogniz ed was nil for each of the three and six months ended June 30 , 2017 and 2016 . Other amounts related to foreign exchange contracts reclassified from AOCI int o Other expenses included nil and a gain of $5 million for the three months ended June 30 , 2017 and 2016 , respectively, and nil and a gain of $5 mi llion for the six months ended June 30 , 2017 and 2016 , respectively . 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 a net loss of $4 million and a net gain of $ 6 million for the three months ended June 30 , 2017 and 2016 , respectively , and net losses of $21 million and $8 mi llion for the six months ended June 30 , 2017 and 2016 , respectively , and are recognized in Other expenses . The changes in the fair value of an em bedded derivative resulted in a loss of $3 million and nil for the three months ended June 30 , 2017 and 2016 , respectively , and a loss of $2 million and a gain of $6 million for the six months ended June 30 , 2017 and 2016 , respectively , which are recognized in Card Member services and other expense. |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 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 June 30 , 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 3,311 1,119 2,192 ― 3,108 460 2,648 ― Derivatives (a) 211 ― 211 ― 765 ― 765 ― Total Assets 3,571 1,120 2,451 ― 3,922 461 3,461 ― Liabilities: Derivatives (a) 435 ― 435 ― 280 ― 280 ― Total Liabilities $ 435 $ ― $ 435 $ ― $ 280 $ ― $ 280 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of der ivative 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 June 30 , 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 June 30 , 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) $ 30 $ 30 $ 28 $ 2 $ ― Other financial assets (b) 52 52 ― 52 ― Financial assets carried at other than fair value Loans, net (c) 67 67 ― ― 67 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) 15 15 ― 15 ― 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 $ 7.9 billion and $ 8.8 billion held by a consolidated VIE as of June 30 , 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 $ 24.4 billion and $ 26.0 billi on as of June 30 , 2017 and December 31, 2016 , respectively, and the fair values of long-term debt were $ 16.1 billion and $ 15.2 billion as of June 30 , 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 six months ended June 30 , 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 | 6 Months Ended |
Jun. 30, 2017 | |
Guarantees [Abstract] | |
Guarantees | 11. Guarantees The Company provides Card Member protection plans that cover losses associated with purchased products, as well as certain guarantees and indemnifications in the ordinary course of business. As of June 30, 2017, the maximum potential undiscounted future payments and related liability resulting from these arra ngements were $1 billion and $50 million, respectively, and related primarily to the Company’s real estate and business dispositions. As of December 31, 2016, the maximum potential undiscounted future payments and related liability were $48 billion and $86 million, respectively. Amounts related to t he Company’s Card Member protection plans were included as of December 31, 2016, in addition to its real estate and business d ispositions. To date the Company has not experienced any significant losses related to guarantees or indemnifications. The Company’s recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable a nd the amount can be reasonably estimated. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 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 and six months ended June 30 , 2017 and 2016 were as follows: Three Months Ended June 30, 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2017 $ 13 $ (1,946) $ (537) $ (2,470) Net unrealized gains (losses) ― ― ― ― Increase (decrease) due to amounts reclassified into earnings ― ― ― ― Net translation gain of investments in foreign operations ― 135 ― 135 Net losses related to hedges of investments in foreign operations ― (102) ― (102) Pension and other postretirement benefit ― ― 9 9 Net change in accumulated other comprehensive loss ― 33 9 42 Balances as of June 30, 2017 $ 13 $ (1,913) $ (528) $ (2,428) Six Months Ended June 30, 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2016 $ 7 $ (2,262) $ (529) $ (2,784) Net unrealized gains 6 ― ― 6 Increase (decrease) due to amounts reclassified into earnings ― ― ― ― Net translation gain of investments in foreign operations (a) ― 680 ― 680 Net losses related to hedges of investments in foreign operations ― (331) ― (331) Pension and other postretirement benefit ― ― 1 1 Net change in accumulated other comprehensive loss 6 349 1 356 Balances as of June 30, 2017 $ 13 $ (1,913) $ (528) $ (2,428) (a) Includes $289 million of recognized tax benefits (Refer to Note 14). Three Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2016 $ 60 $ (2,040) $ (522) $ (2,502) Net unrealized gains 5 ― ― 5 Net translation loss of investments in foreign operations ― (265) ― (265) Net gains related to hedges of investments in foreign operations ― 135 ― 135 Pension and other postretirement benefit ― ― 6 6 Net change in accumulated other comprehensive loss 5 (130) 6 (119) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Six Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized gains 9 ― ― 9 Decrease due to amounts reclassified into earnings (2) ― ― (2) Net translation loss of investments in foreign operations ― (169) ― (169) Net gains related to hedges of investments in foreign operations ― 43 ― 43 Pension and other postretirement benefit ― ― 32 32 Net change in accumulated other comprehensive loss 7 (126) 32 (87) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) The following table shows the tax impact for the three and six months ended June 30 for the changes in each component of AOCI presented above: Tax expense (benefit) Three Months Ended June 30, Six Months Ended June 30, (Millions) 2017 2016 2017 2016 Investment securities $ ― $ 2 $ 3 $ 2 Foreign currency translation adjustments (a) 12 22 (179) 37 Net investment hedges (67) 78 (207) 24 Pension and other postretirement benefits 1 10 (8) 29 Total tax impact $ (54) $ 112 $ (391) $ 92 (a) Includes $289 million of tax benefits recognized in the six months ended June 30 , 2017 (Refer to Note 14). The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income : Gains (losses) recognized in earnings Three Months Ended Six Months Ended June 30, June 30, Amount Amount Description ( Millions ) Income Statement Line Item 2017 2016 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 | 6 Months Ended |
Jun. 30, 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 : Three Months Ended Six Months Ended June 30, June 30, (Millions) 2017 2016 2017 2016 Delinquency fees $ 218 $ 192 $ 432 $ 392 Foreign currency conversion fee revenue 212 207 411 403 Loyalty coalition-related fees 114 104 216 198 Travel commissions and fees 90 87 174 167 Other (a) 118 112 232 222 Total Other fees and commissions $ 752 $ 702 $ 1,465 $ 1,382 Other primarily includes service fees and fees related to Membership Rewards programs. The following is a detail of Other revenues: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2017 2016 2017 2016 Global Network Services partner revenues $ 150 $ 197 $ 306 $ 342 Other (a) 289 348 542 689 Total Other revenues $ 439 $ 545 $ 848 $ 1,031 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, Prepaid 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: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2017 2016 2017 2016 Professional services $ 521 $ 628 $ 1,033 $ 1,232 Occupancy and equipment 484 438 959 903 Gain on sale of HFS portfolios (a) ― (1,091) ― (1,218) Other (b) 371 495 791 973 Total Other expenses $ 1,376 $ 470 $ 2,783 $ 1,890 Refer to Note 2 for additional information. Other expense primarily includes general operating expenses, Card and merchant-related fraud losses, c ommunication expenses , foreign currency-related gains and losses, certain loyalty coalition-related expenses and insurance costs. In addition, for 2016, Other expenses includes the valuation allowance adjustment associated with loans and receivables HFS. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The effective tax rate was 31.2 percent and 33.2 percent for the three months ended June 30 , 2017 and 2016 , respectively, and 31.6 percent and 33.8 percent for the six months ended June 30 , 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 effe ctive tax rate in the current year reflected the resolution of certain prior years’ tax items. The Company is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which the Company has sig nificant business operations. The tax years under examination and open for examination vary by jurisdiction. In February 2017, the Company received notificatio n that all matters outstanding with the IRS for tax years 1997-2007 were resolved. The resoluti on 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 2008 through 2014. The Company believes it is reasonably possible that its unrecognized tax benefi ts could decrease within the next 12 months by as much as $ 133 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 t o the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $ 133 million of unrecognized tax benefits, approximately $90 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. During the six months ended June 30 , 2017 , the Company’s unrecognized tax benefits decreased by $280 million. The decrease was primarily due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in shareholders’ equity, specifically within AOCI. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | 15 . Earnings Per Common Share (EPS) The computations of basic and diluted EPS were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions, except per share amounts) 2017 2016 2017 2016 Numerator: Basic and diluted: Net income $ 1,340 $ 2,015 $ 2,577 $ 3,441 Preferred dividends (19) (19) (40) (40) Net income available to common shareholders 1,321 1,996 2,537 3,401 Earnings allocated to participating share awards (a) (11) (17) (21) (28) Net income attributable to common shareholders $ 1,310 $ 1,979 $ 2,516 $ 3,373 Denominator: (a) Basic: Weighted-average common stock 890 938 895 949 Add: Weighted-average stock options (b) 3 3 3 3 Diluted 893 941 898 952 Basic EPS $ 1.47 $ 2.11 $ 2.81 $ 3.55 Diluted EPS $ 1.47 $ 2.10 $ 2.80 $ 3.54 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 2.5 million of options for the three months ended June 30 , 2017 and 2016 , respectively, and 1.2 million and 1.7 million of options for the six months ended June 30 , 2017 and 2016 , respectively, because inclusion of the options would have been anti-dilutive. |
Reportable Operating Segment
Reportable Operating Segment | 6 Months Ended |
Jun. 30, 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 : Three Months Ended June 30, 2017 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 1,999 $ 1,247 $ 2,368 $ 1,086 $ 77 $ 6,777 Interest income 1,369 246 334 1 102 2,052 Interest expense 171 60 129 (65) 227 522 Total revenues net of interest expense 3,197 1,433 2,573 1,152 (48) 8,307 Net income (loss) $ 440 $ 209 $ 500 $ 430 $ (239) $ 1,340 Total assets (billions) $ 87 $ 38 $ 51 $ 26 $ (35) $ 167 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Six Months Ended June 30, 2017 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 3,856 $ 2,442 $ 4,639 $ 2,103 $ 126 $ 13,166 Interest income 2,677 481 653 1 183 3,995 Interest expense 317 113 238 (123) 420 965 Total revenues net of interest expense 6,216 2,810 5,054 2,227 (111) 16,196 Net income (loss) $ 909 $ 427 $ 918 $ 793 $ (470) $ 2,577 Total assets (billions) $ 87 $ 38 $ 51 $ 26 $ (35) $ 167 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Three Months Ended June 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 2,069 $ 1,242 $ 2,280 $ 1,087 $ 108 $ 6,786 Interest income 1,278 234 310 1 62 1,885 Interest expense 139 58 104 (61) 196 436 Total revenues net of interest expense 3,208 1,418 2,486 1,149 (26) 8,235 Net income (loss) $ 1,067 $ 228 $ 576 $ 373 $ (229) $ 2,015 Total assets (billions) $ 81 $ 35 $ 46 $ 24 $ (26) $ 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Six Months Ended June 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 4,098 $ 2,382 $ 4,470 $ 2,128 $ 216 $ 13,294 Interest income 2,669 461 631 1 128 3,890 Interest expense 279 112 199 (120) 391 861 Total revenues net of interest expense 6,488 2,731 4,902 2,249 (47) 16,323 Net income (loss) $ 1,761 $ 416 $ 1,061 $ 730 $ (527) $ 3,441 Total assets (billions) $ 81 $ 35 $ 46 $ 24 $ (26) $ 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 and (b) the amount of loss can b e 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 t hat 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 recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable a nd the amount can be reasonably estimated. |
Loans and Accounts Receivable (
Loans and Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Loans and Accounts Receivable (Tables) [Abstract] | |
Card Member loans segment detail | Card Member loans by segment and Other loans as of June 30 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 48,348 $ 48,758 International Consumer and Network Services 7,245 6,971 Global Commercial Services 10,378 9,536 Card Member loans 65,971 65,265 Less: Reserve for losses 1,320 1,223 Card Member loans, net $ 64,651 $ 64,042 Other loans, net (b) $ 1,855 $ 1,419 Includes approximately $ 24.5 billion and $ 26.1 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of June 30 , 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 $ 54 million and $ 42 million as of June 30 , 2017 and December 31, 2016 , respectively. |
Card Member receivables segment detail | Card Member accounts receivable by segment and Other receivables as of June 30 , 2017 and December 31, 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 11,344 $ 12,302 International Consumer and Network Services 5,988 5,966 Global Commercial Services 32,073 29,040 Card Member receivables 49,405 47,308 Less: Reserve for losses 475 467 Card Member receivables, net $ 48,930 $ 46,841 Other receivables, net (b) $ 2,832 $ 3,232 Includes $ 7.9 billion and $ 8.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of June 30 , 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 $ 32 million and $ 45 million as of June 30 , 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 June 30 , 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 $ 47,797 $ 155 $ 119 $ 277 $ 48,348 International Consumer and Network Services 7,124 38 25 58 7,245 Global Commercial Services Global Small Business Services $ 10,207 $ 35 $ 25 $ 57 $ 10,324 Global Corporate Payments (a) (b) (b) (b) $ ― $ 54 Card Member Receivables: U.S. Consumer Services $ 11,220 $ 42 $ 24 $ 58 $ 11,344 International Consumer and Network Services 5,903 25 16 44 5,988 Global Commercial Services Global Small Business Services $ 14,967 $ 75 $ 41 $ 102 $ 15,185 Global Corporate Payments (a) (b) (b) (b) $ 136 $ 16,888 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. See also (b). 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 six months ended June 30 : 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 % 1.1 % 1.5 % 1.7 % 1.1 % International Consumer and Network Services 2.0 % 2.5 % 1.7 % 2.0 % 2.4 % 1.7 % Global Small Business Services 1.5 % 1.8 % 1.1 % 1.3 % 1.6 % 1.1 % Card Member Receivables: U.S. Consumer Services 1.4 % 1.5 % 1.1 % 1.5 % 1.8 % 1.2 % International Consumer and Network Services 2.0 % 2.2 % 1.4 % 2.2 % 2.4 % 1.4 % Global Small Business Services 1.7 % 1.9 % 1.4 % 1.7 % 2.0 % 1.4 % 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 0.10 % 0.8 % 0.09 % 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 June 30 , 2017 and December 31, 2016 ; therefore, th is segment’s receivables are not included in the following tables . As of June 30, 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 $ 175 $ 156 $ 153 $ 132 $ 616 $ 560 $ 47 International Consumer and Network Services 58 ― ― ― 58 57 ― Global Commercial Services 33 34 26 27 120 110 9 Card Member Receivables: U.S. Consumer Services ― ― 10 8 18 18 4 Global Commercial Services ― ― 25 15 40 40 9 Total $ 266 $ 190 $ 214 $ 182 $ 852 $ 785 $ 69 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 $ 18 million and $ 20 million that are over 90 days past due and accruing interest and $ 7 million and $ 11 million that are non-accruals as of June 30 , 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 progr am and $43 million and $39 million of Card Member accounts that were not in compliance with the terms of the modification programs as of June 30 , 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 to 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 and six months ended June 30 : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 618 $ 16 $ 616 $ 32 International Consumer and Network Services 56 4 55 8 Global Commercial Services 120 4 117 8 Card Member Receivables: U.S. Consumer Services 18 ― 18 ― Global Commercial Services 41 ― 40 ― Total $ 853 $ 24 $ 846 $ 48 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (Millions) Average Balance Interest Income Recognized Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 551 $ 12 $ 555 $ 24 International Consumer and Network Services 54 4 53 8 Global Commercial Services 102 3 103 6 Card Member Receivables: U.S. Consumer Services 13 ― 12 ― Global Commercial Services 25 ― 20 ― Total $ 745 $ 19 $ 743 $ 38 |
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 and six months ended June 30 , 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 Six Months Ended June 30, 2017 June 30, 2017 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Troubled Debt Restructurings: Card Member Loans 7 $ 46 10 (b) 15 $ 103 11 (b) Card Member Receivables 1 18 (c) 32 3 46 (c) 26 Total 8 $ 64 18 $ 149 Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% Points) Average Payment Term Extension (# of Months) Troubled Debt Restructurings: Card Member Loans 7 $ 50 10 (b) 15 $ 107 11 (b) Card Member Receivables 2 27 (c) 17 5 65 (c) 17 Total 9 $ 77 20 $ 172 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 and six months ended June 30 , 2017 and 2016 . A Card Member is considered in default of a modification program after one and up to two misse d 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. Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 10 4 $ 21 Card Member Receivables 1 2 2 3 Total 3 $ 12 6 $ 24 Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Number of Accounts (in thousands) Aggregated Outstanding Balances Upon Default ($ in millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 1 $ 9 2 $ 18 Card Member Receivables 1 1 2 2 Total 2 $ 10 4 $ 20 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) | 6 Months Ended |
Jun. 30, 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 six months ended June 30 : (Millions) 2017 2016 Balance, January 1 $ 1,223 $ 1,028 Provisions (a) 741 512 Net write-offs (b) Principal (557) (437) Interest and fees (106) (80) Other (c) 19 68 Balance, June 30 $ 1,320 $ 1,091 Provisions for principal, interest and fee reserve components. Principal write-offs are presented less recoveries of $ 205 million and $ 179 million, and include net write-offs from TDRs of $ 21 million and $ 17 million, for the six months ended June 30 , 2017 and 2016 , respectively. Recoveries of interest and fees were de minimis. Includes foreign currency translation adjustments of $ 10 million and $ (2) million and other adjustments of $ 9 million and $ 3 million for the six months ended June 30 , 2017 and 2016 , respectively. The six months ended June 30, 2016 also includes reserves of $7 million in the first qua rter and $60 million in the second quarter associated with $20 million and $245 million of retained Card Member loans, respectively, reclassified from HFS to held for investment during those periods as a result of retaining certain loans in connection with the respec tive sales of JetBlue and Costco cobrand card portfolios. |
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 June 30 , 2017 and Decemb er 31, 2016 : (Millions) 2017 2016 Card Member loans evaluated individually for impairment (a) $ 338 $ 346 Related reserves (a) $ 56 $ 60 Card Member loans evaluated collectively for impairment (b) $ 65,633 $ 64,919 Related reserves (b) $ 1,264 $ 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 six months ended June 3 0 : (Millions) 2017 2016 Balance, January 1 $ 467 $ 462 Provisions (a) 376 322 Net write-offs (b) (373) (359) Other (c) 5 (2) Balance, June 30 $ 475 $ 423 Provisions for principal and fee reserve components. P rincipal and fee components are presented less recoveries of $ 181 million and $ 202 million, including net write-offs from TDRs of $ 7 million and $ 16 million, for the six months ended June 30 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ 14 and $ (1) million and other adjustments of $ (9) million and $ (1) million for the six months ended June 30 , 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 June 30 , 2017 and December 31, 2016 : (Millions) 2017 2016 Card Member receivables evaluated individually for impairment (a) $ 58 $ 55 Related reserves (a) $ 13 $ 28 Card Member receivables evaluated collectively for impairment $ 49,347 $ 47,253 Related reserves (b) $ 462 $ 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) | 6 Months Ended |
Jun. 30, 2017 | |
Investment Securities (Tables) [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of June 30 , 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 $ 1,563 $ 20 $ (2) $ 1,581 $ 2,019 $ 28 $ (11) $ 2,036 U.S. Government agency obligations 12 ― ― 12 12 ― ― 12 U.S. Government treasury obligations 1,114 9 (4) 1,119 465 3 (8) 460 Corporate debt securities ― ― ― ― 19 ― ― 19 Mortgage-backed securities (a) 79 2 ― 81 92 3 ― 95 Equity securities 1 ― ― 1 1 ― ― 1 Foreign government bonds and obligations 518 1 (1) 518 486 1 (1) 486 Other (b) 50 ― (2) 48 50 ― (2) 48 Total $ 3,337 $ 32 $ (9) $ 3,360 $ 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 June 30 , 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 $ 99 $ (2) $ ― $ ― $ 153 $ (11) $ ― $ ― U.S. Government treasury obligations 366 (4) ― ― 298 (8) ― ― Other ― ― 32 (2) ― ― 32 (2) Total $ 465 $ (6) $ 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 June 30 , 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% 23 $ 465 $ (6) 6 $ 32 $ (2) 29 $ 497 $ (8) Total as of June 30, 2017 23 $ 465 $ (6) 6 $ 32 $ (2) 29 $ 497 $ (8) 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 June 30 , 2017 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 623 $ 623 Due after 1 year but within 5 years 979 984 Due after 5 years but within 10 years 294 298 Due after 10 years 1,390 1,406 Total $ 3,286 $ 3,311 |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 6 Months Ended |
Jun. 30, 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 June 30 , 2017 and December 31, 2016 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2017 2016 Lending Trust $ 53 $ 35 Charge Trust 2 3 Total $ 55 $ 38 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Customer Deposits (Tables) [Abstract] | |
Deposits By Component Alternative | As of June 30 , 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 $ 57,012 $ 52,316 Non-interest bearing (includes Card Member credit balances of: 2017, $309 million; 2016, $331 million) 348 367 Non-U.S.: Interest bearing 29 58 Non-interest bearing (includes Card Member credit balances of: 2017, $325 million; 2016, $285 million) 337 301 Total customer deposits $ 57,726 $ 53,042 |
Deposits By Type | Customer deposits by deposit type as of June 30 , 2017 and December 31, 2016 were as follows: (Millions) 2017 2016 U.S. retail deposits: Savings accounts – Direct $ 30,276 $ 30,980 Certificates of deposit: (a) Direct 285 291 Third-party (brokered) 14,997 11,925 Sweep accounts – Third-party (brokered) 11,454 9,120 Other retail deposits: Non-U.S. deposits and U.S. non-interest bearing deposits 80 110 Card Member credit balances ― U.S. and non-U.S. 634 616 Total customer deposits $ 57,726 $ 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 46 months and 2.05 perce nt, respectively, as of June 30, 2017 . |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of June 30 , 2017 were as follows: (Millions) U.S. Non-U.S. Total 2017 $ 2,400 $ 7 $ 2,407 2018 4,463 9 4,472 2019 3,447 ― 3,447 2020 3,069 ― 3,069 2021 917 ― 917 After 5 years 986 ― 986 Total $ 15,282 $ 16 $ 15,298 |
Time Deposits $250,000 Or More | As of June 30 , 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. $ 103 $ 117 Non-U.S. 5 7 Total $ 108 $ 124 |
Derivatives and Hedging Activ31
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30 , 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) $ 39 $ 111 $ ― $ 69 Net investment hedges - Foreign exchange contracts 28 347 265 35 Total derivatives designated as hedging instruments 67 458 265 104 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 144 308 170 176 Total derivatives, gross 211 766 435 280 Less: Cash collateral netting (c)(d) (20) (54) (1) (68) Derivative asset and derivative liability netting (e) (73) (157) (73) (157) Total derivatives, net (f) $ 118 $ 555 $ 361 $ 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 June 30 , 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 foreign c urrency 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) arising f rom derivatives executed with the same counterparty under an enforceable master netting arrangement. The Company held no non-cash collateral as of June 30 , 2017 . As of December 31, 2016, t he Company received non-cash collateral from a counterparty 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 n ot reduce the net exposure on the Company’s Consolidated Balance Sheets. Addit ionally, the Company posted $170 million and $169 million as of June 30 , 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 a mount 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 e xposure to any single derivative counterparty. The total net derivative assets and net derivative 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 and six months ended June 30 : Three Months Ended June 30, Six Months Ended June 30, (Millions) 2017 2016 2017 2016 Interest rate derivative contracts $ 6 $ 61 $ (69) $ 226 Hedged items (25) (53) 25 (224) Net hedge ineffectiveness $ (19) $ 8 $ (44) $ 2 |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 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 June 30 , 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 3,311 1,119 2,192 ― 3,108 460 2,648 ― Derivatives (a) 211 ― 211 ― 765 ― 765 ― Total Assets 3,571 1,120 2,451 ― 3,922 461 3,461 ― Liabilities: Derivatives (a) 435 ― 435 ― 280 ― 280 ― Total Liabilities $ 435 $ ― $ 435 $ ― $ 280 $ ― $ 280 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of der ivative 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 June 30 , 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 June 30 , 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) $ 30 $ 30 $ 28 $ 2 $ ― Other financial assets (b) 52 52 ― 52 ― Financial assets carried at other than fair value Loans, net (c) 67 67 ― ― 67 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) 15 15 ― 15 ― 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 $ 7.9 billion and $ 8.8 billion held by a consolidated VIE as of June 30 , 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 $ 24.4 billion and $ 26.0 billi on as of June 30 , 2017 and December 31, 2016 , respectively, and the fair values of long-term debt were $ 16.1 billion and $ 15.2 billion as of June 30 , 2017 and December 31, 2016 , respectively. Presented as a component of custom er deposits on the Consolidated Balance Sheets. |
Changes in Accumulated Other 33
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30 , 2017 and 2016 were as follows: Three Months Ended June 30, 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2017 $ 13 $ (1,946) $ (537) $ (2,470) Net unrealized gains (losses) ― ― ― ― Increase (decrease) due to amounts reclassified into earnings ― ― ― ― Net translation gain of investments in foreign operations ― 135 ― 135 Net losses related to hedges of investments in foreign operations ― (102) ― (102) Pension and other postretirement benefit ― ― 9 9 Net change in accumulated other comprehensive loss ― 33 9 42 Balances as of June 30, 2017 $ 13 $ (1,913) $ (528) $ (2,428) Six Months Ended June 30, 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2016 $ 7 $ (2,262) $ (529) $ (2,784) Net unrealized gains 6 ― ― 6 Increase (decrease) due to amounts reclassified into earnings ― ― ― ― Net translation gain of investments in foreign operations (a) ― 680 ― 680 Net losses related to hedges of investments in foreign operations ― (331) ― (331) Pension and other postretirement benefit ― ― 1 1 Net change in accumulated other comprehensive loss 6 349 1 356 Balances as of June 30, 2017 $ 13 $ (1,913) $ (528) $ (2,428) (a) Includes $289 million of recognized tax benefits (Refer to Note 14). Three Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of March 31, 2016 $ 60 $ (2,040) $ (522) $ (2,502) Net unrealized gains 5 ― ― 5 Net translation loss of investments in foreign operations ― (265) ― (265) Net gains related to hedges of investments in foreign operations ― 135 ― 135 Pension and other postretirement benefit ― ― 6 6 Net change in accumulated other comprehensive loss 5 (130) 6 (119) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) Six Months Ended June 30, 2016 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized gains 9 ― ― 9 Decrease due to amounts reclassified into earnings (2) ― ― (2) Net translation loss of investments in foreign operations ― (169) ― (169) Net gains related to hedges of investments in foreign operations ― 43 ― 43 Pension and other postretirement benefit ― ― 32 32 Net change in accumulated other comprehensive loss 7 (126) 32 (87) Balances as of June 30, 2016 $ 65 $ (2,170) $ (516) $ (2,621) |
Accumulated Other Comprehensive Loss Income - Tax Effect | The following table shows the tax impact for the three and six months ended June 30 for the changes in each component of AOCI presented above: Tax expense (benefit) Three Months Ended June 30, Six Months Ended June 30, (Millions) 2017 2016 2017 2016 Investment securities $ ― $ 2 $ 3 $ 2 Foreign currency translation adjustments (a) 12 22 (179) 37 Net investment hedges (67) 78 (207) 24 Pension and other postretirement benefits 1 10 (8) 29 Total tax impact $ (54) $ 112 $ (391) $ 92 (a) Includes $289 million of tax benefits recognized in the six months ended June 30 , 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 : Gains (losses) recognized in earnings Three Months Ended Six Months Ended June 30, June 30, Amount Amount Description ( Millions ) Income Statement Line Item 2017 2016 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 Expe34
Non-Interest Revenue and Expense Detail (Tables) | 6 Months Ended |
Jun. 30, 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 : Three Months Ended Six Months Ended June 30, June 30, (Millions) 2017 2016 2017 2016 Delinquency fees $ 218 $ 192 $ 432 $ 392 Foreign currency conversion fee revenue 212 207 411 403 Loyalty coalition-related fees 114 104 216 198 Travel commissions and fees 90 87 174 167 Other (a) 118 112 232 222 Total Other fees and commissions $ 752 $ 702 $ 1,465 $ 1,382 Other primarily includes service fees and fees related to Membership Rewards programs. |
Details of other revenues | The following is a detail of Other revenues: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2017 2016 2017 2016 Global Network Services partner revenues $ 150 $ 197 $ 306 $ 342 Other (a) 289 348 542 689 Total Other revenues $ 439 $ 545 $ 848 $ 1,031 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, Prepaid 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: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2017 2016 2017 2016 Professional services $ 521 $ 628 $ 1,033 $ 1,232 Occupancy and equipment 484 438 959 903 Gain on sale of HFS portfolios (a) ― (1,091) ― (1,218) Other (b) 371 495 791 973 Total Other expenses $ 1,376 $ 470 $ 2,783 $ 1,890 Refer to Note 2 for additional information. Other expense primarily includes general operating expenses, Card and merchant-related fraud losses, c ommunication expenses , foreign currency-related gains and losses, certain loyalty coalition-related expenses and insurance costs. In addition, for 2016, Other expenses includes the valuation allowance adjustment associated with loans and receivables HFS. |
Earnings Per Common Share (EP35
Earnings Per Common Share (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions, except per share amounts) 2017 2016 2017 2016 Numerator: Basic and diluted: Net income $ 1,340 $ 2,015 $ 2,577 $ 3,441 Preferred dividends (19) (19) (40) (40) Net income available to common shareholders 1,321 1,996 2,537 3,401 Earnings allocated to participating share awards (a) (11) (17) (21) (28) Net income attributable to common shareholders $ 1,310 $ 1,979 $ 2,516 $ 3,373 Denominator: (a) Basic: Weighted-average common stock 890 938 895 949 Add: Weighted-average stock options (b) 3 3 3 3 Diluted 893 941 898 952 Basic EPS $ 1.47 $ 2.11 $ 2.81 $ 3.55 Diluted EPS $ 1.47 $ 2.10 $ 2.80 $ 3.54 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 2.5 million of options for the three months ended June 30 , 2017 and 2016 , respectively, and 1.2 million and 1.7 million of options for the six months ended June 30 , 2017 and 2016 , respectively, because inclusion of the options would have been anti-dilutive. |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 6 Months Ended |
Jun. 30, 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 : Three Months Ended June 30, 2017 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 1,999 $ 1,247 $ 2,368 $ 1,086 $ 77 $ 6,777 Interest income 1,369 246 334 1 102 2,052 Interest expense 171 60 129 (65) 227 522 Total revenues net of interest expense 3,197 1,433 2,573 1,152 (48) 8,307 Net income (loss) $ 440 $ 209 $ 500 $ 430 $ (239) $ 1,340 Total assets (billions) $ 87 $ 38 $ 51 $ 26 $ (35) $ 167 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Six Months Ended June 30, 2017 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 3,856 $ 2,442 $ 4,639 $ 2,103 $ 126 $ 13,166 Interest income 2,677 481 653 1 183 3,995 Interest expense 317 113 238 (123) 420 965 Total revenues net of interest expense 6,216 2,810 5,054 2,227 (111) 16,196 Net income (loss) $ 909 $ 427 $ 918 $ 793 $ (470) $ 2,577 Total assets (billions) $ 87 $ 38 $ 51 $ 26 $ (35) $ 167 Total equity (billions) $ 7 $ 3 $ 7 $ 3 $ 1 $ 21 Three Months Ended June 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 2,069 $ 1,242 $ 2,280 $ 1,087 $ 108 $ 6,786 Interest income 1,278 234 310 1 62 1,885 Interest expense 139 58 104 (61) 196 436 Total revenues net of interest expense 3,208 1,418 2,486 1,149 (26) 8,235 Net income (loss) $ 1,067 $ 228 $ 576 $ 373 $ (229) $ 2,015 Total assets (billions) $ 81 $ 35 $ 46 $ 24 $ (26) $ 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Six Months Ended June 30, 2016 (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated Non-interest revenues $ 4,098 $ 2,382 $ 4,470 $ 2,128 $ 216 $ 13,294 Interest income 2,669 461 631 1 128 3,890 Interest expense 279 112 199 (120) 391 861 Total revenues net of interest expense 6,488 2,731 4,902 2,249 (47) 16,323 Net income (loss) $ 1,761 $ 416 $ 1,061 $ 730 $ (527) $ 3,441 Total assets (billions) $ 81 $ 35 $ 46 $ 24 $ (26) $ 160 Total equity (billions) $ 7 $ 3 $ 8 $ 2 $ 1 $ 21 Corporate & Other includes adjustments and eliminations for intersegment activity. |
Business Events (Details Textua
Business Events (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Events (Line Items) | |||||
Gain on sale of held for sale (HFS) portfolio | $ 0 | $ (1,091) | $ 0 | $ (1,218) | |
Other Expense [Member] | |||||
Business Events (Line Items) | |||||
Gain on sale of held for sale (HFS) portfolio | $ 0 | $ (1,091) | $ (127) |
Loans and Accounts Receivable38
Loans and Accounts Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Loans segment information | ||||
Card Member loans, gross | $ 65,971 | $ 65,265 | ||
Less: Reserve for losses | 1,320 | 1,223 | $ 1,091 | $ 1,028 |
Card Member loans, net | 64,651 | 64,042 | ||
Other loans, less reserves | 1,855 | 1,419 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 54 | 42 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 24,521 | 26,129 | ||
U S Consumer Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 48,348 | 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 | 24,500 | 26,100 | ||
International Consumer and Network Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 7,245 | 6,971 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | $ 10,378 | $ 9,536 |
Loans and Accounts Receivable39
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts receivable segment information | ||||
Card Member receivables | $ 49,405 | $ 47,308 | ||
Less: Reserve for losses | 475 | 467 | $ 423 | $ 462 |
Card Member receivables, net | 48,930 | 46,841 | ||
Other receivables, net | 2,832 | 3,232 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 32 | 45 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 7,949 | 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 | 11,344 | 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 | 7,900 | 8,900 | ||
International Consumer and Network Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 5,988 | 5,966 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 32,073 | $ 29,040 |
Loans and Accounts Receivable40
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | $ 47,797 | $ 48,216 |
Total aging | 48,348 | 48,758 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 155 | 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 | 119 | 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 | 277 | 267 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 11,220 | 12,158 |
Total aging | 11,344 | 12,302 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 42 | 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 | 24 | 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 | 58 | 69 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 7,124 | 6,863 |
Total aging | 7,245 | 6,971 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 38 | 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 | 58 | 52 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 5,903 | 5,888 |
Total aging | 5,988 | 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 | 16 | 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 | 44 | 41 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 10,207 | 9,378 |
Total aging | 10,324 | 9,484 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 35 | 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 | 25 | 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 | 57 | 49 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 14,967 | 14,047 |
Total aging | 15,185 | 14,273 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 75 | 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 | 41 | 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 | 102 | 102 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 54 | 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 | 0 | 0 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 16,888 | 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 | $ 136 | $ 135 |
Loans and Accounts Receivable41
Loans and Accounts Receivable (Details 3) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 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 | 1.10% | 1.10% |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.40% | 1.50% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.50% | 1.80% |
30 Days Past Due as a % of Total | 1.10% | 1.20% |
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% | 2.00% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.50% | 2.40% |
30 Days Past Due as a % of Total | 1.70% | 1.70% |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.00% | 2.20% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.20% | 2.40% |
30 Days Past Due as a % of Total | 1.40% | 1.40% |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Loss Ratio as a % of Charge Volume | 0.10% | 0.09% |
90 days past billing as a percentage of receivables | 0.80% | 0.70% |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.50% | 1.30% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.80% | 1.60% |
30 Days Past Due as a % of Total | 1.10% | 1.10% |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.70% | 1.70% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.90% | 2.00% |
30 Days Past Due as a % of Total | 1.40% | 1.40% |
Loans and Accounts Receivable42
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 266 | $ 260 |
Non-accrual loans | 190 | 169 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 214 | 230 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 182 | 171 |
Total impaired loans and receivables | 852 | 830 |
Unpaid principal balance | 785 | 767 |
Related allowance for Troubled Debt Restructurings | 69 | 88 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 7 | 11 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 18 | 20 |
Financing Receivable, Modifications, Out of Program - success, Recorded Investment | 139 | 132 |
Financing Receivable, Modifications, Out of Program - not compliant, Recorded Investment | 43 | 39 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 175 | 178 |
Non-accrual loans | 156 | 139 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 153 | 165 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 132 | 129 |
Total impaired loans and receivables | 616 | 611 |
Unpaid principal balance | 560 | 558 |
Related allowance for Troubled Debt Restructurings | 47 | 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 | 10 | 11 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 8 | 6 |
Total impaired loans and receivables | 18 | 17 |
Unpaid principal balance | 18 | 17 |
Related allowance for Troubled Debt Restructurings | 4 | 7 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 58 | 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 | 58 | 52 |
Unpaid principal balance | 57 | 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 | 110 | 103 |
Related allowance for Troubled Debt Restructurings | 9 | 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 | 25 | 28 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 15 | 10 |
Total impaired loans and receivables | 40 | 38 |
Unpaid principal balance | 40 | 38 |
Related allowance for Troubled Debt Restructurings | $ 9 | $ 21 |
Loans and Accounts Receivable43
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | $ 853 | $ 745 | $ 846 | $ 743 |
Interest income recognized | 24 | 19 | 48 | 38 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 618 | 551 | 616 | 555 |
Interest income recognized | 16 | 12 | 32 | 24 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 18 | 13 | 18 | 12 |
Interest income recognized | 0 | 0 | 0 | 0 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 56 | 54 | 55 | 53 |
Interest income recognized | 4 | 4 | 8 | 8 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 120 | 102 | 117 | 103 |
Interest income recognized | 4 | 3 | 8 | 6 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Average balance of impaired loans | 41 | 25 | 40 | 20 |
Interest income recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Accounts Receivable44
Loans and Accounts Receivable (Details 6) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)M | Jun. 30, 2016USD ($)M | Jun. 30, 2017USD ($)M | Jun. 30, 2016USD ($)M | |
Troubled Debt Restructurings | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 8,000 | 9,000 | 18,000 | 20,000 |
Aggregated Outstanding Balance | $ 64 | $ 77 | $ 149 | $ 172 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 7,000 | 7,000 | 15,000 | 15,000 |
Aggregated Outstanding Balance | $ 46 | $ 50 | $ 103 | $ 107 |
Average basis point reduction in interest rate by class of Card Member loans | 10.00% | 10.00% | 11.00% | 11.00% |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 1,000 | 2,000 | 3,000 | 5,000 |
Aggregated Outstanding Balance | $ 18 | $ 27 | $ 46 | $ 65 |
Average payment term extension | M | 32 | 17 | 26 | 17 |
Loans and Accounts Receivable45
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Troubled Debt Restructurings That Subsequently Defaulted [Domain] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 3 | 2 | 6 | 4 |
Aggregated Outstanding Balance Upon Payment Default | $ 12 | $ 10 | $ 24 | $ 20 |
Card Member Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 2 | 1 | 4 | 2 |
Aggregated Outstanding Balance Upon Payment Default | $ 10 | $ 9 | $ 21 | $ 18 |
Card Member Receivables [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Accounts | 1 | 1 | 2 | 2 |
Aggregated Outstanding Balance Upon Payment Default | $ 2 | $ 1 | $ 3 | $ 2 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in the Card Member loans reserve for losses | ||||
Balance, January 1 | $ 1,223 | $ 1,028 | ||
Card Member loans - provisions | $ 404 | $ 285 | 741 | 512 |
Card Member loans net write-offs - principal | (557) | (437) | ||
Card Member loans net write-offs - interest and fees | (106) | (80) | ||
Card Member loans reserves for losses - other | 19 | 68 | ||
Balance, September 30 | $ 1,320 | $ 1,091 | $ 1,320 | $ 1,091 |
Reserves For Losses (Details 1)
Reserves For Losses (Details 1) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Abstract] | ||
Card Member loans evaluated individually for impairment | $ 338 | $ 346 |
Reserves on Card Member loans evaluated individually for impairment | 56 | 60 |
Card Member loans evaluated collectively for impairment | 65,633 | 64,919 |
Reserves on Card Member loans evaluated collectively for impairment | $ 1,264 | $ 1,163 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in the Card Member receivables reserve for losses | ||||
Balance, January 1 | $ 467 | $ 462 | ||
Card Member receivables - provisions | $ 163 | $ 153 | 376 | 322 |
Card Member receivables - net write-offs | (373) | (359) | ||
Card Member receivables reserves for losses - other | 5 | (2) | ||
Balance, September 30 | $ 475 | $ 423 | $ 475 | $ 423 |
Reserves for Losses (Details 3)
Reserves for Losses (Details 3) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Abstract] | ||
Card Member receivables evaluated individually for impairment | $ 58 | $ 55 |
Reserves on Card Member receivables evaluated individually for impairment | 13 | 28 |
Card Member receivables evaluated collectively for impairment | 49,347 | 47,253 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 462 | $ 439 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivables reserves for losses - other | $ 5 | $ (2) | |
Card Member loans reserves for losses - other | 19 | 68 | |
Allowance for Card Member Receivables and Reserves, Recoveries of Bad Debts | 181 | 202 | |
Allowance for Card Member Loans, Recoveries of Bad Debts | 205 | 179 | |
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | 7 | 16 | |
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 21 | 17 | |
Foreign Currency Translation Adjustments [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivables reserves for losses - other | 14 | (1) | |
Card Member loans reserves for losses - other | 10 | (2) | |
Other Items [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivables reserves for losses - other | (9) | (1) | |
Card Member loans reserves for losses - other | $ 9 | 3 | |
CardMember loans transferred from HFS to held for investment | $ 20 | 245 | |
CardMember reserves associated with loans held for investments | $ 7 | $ 60 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available for Sale Securities by Type | ||
Cost | $ 3,337 | $ 3,144 |
Gross Unrealized Gains | 32 | 35 |
Gross Unrealized Losses | (9) | (22) |
Estimated Fair Value | 3,360 | 3,157 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 1,563 | 2,019 |
Gross Unrealized Gains | 20 | 28 |
Gross Unrealized Losses | (2) | (11) |
Estimated Fair Value | 1,581 | 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 | 1,114 | 465 |
Gross Unrealized Gains | 9 | 3 |
Gross Unrealized Losses | (4) | (8) |
Estimated Fair Value | 1,119 | 460 |
Corporate debt securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 0 | 19 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 19 |
Mortgage-backed securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 79 | 92 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 81 | 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 | 518 | 486 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | (1) | (1) |
Estimated Fair Value | 518 | 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 465 | $ 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 | (6) | (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 | 99 | 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 | (2) | (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 | 366 | 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 | (4) | (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 (Detail53
Investment Securities (Details 2) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | 23 | 37 |
Number of securities, 12 months or more | securities | 6 | 6 |
Number of securities, total | securities | 29 | 43 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 465 | $ 451 |
Estimated Fair Value, 12 months or more | 32 | 32 |
Estimated Fair Value, Total | 497 | 483 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (6) | (19) |
Gross Unrealized Losses, 12 months or more | (2) | (2) |
Gross Unrealized Losses, Total | $ (8) | $ (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 | 23 | 33 |
Number of securities, 12 months or more | securities | 6 | 6 |
Number of securities, total | securities | 29 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 465 | $ 411 |
Estimated Fair Value, 12 months or more | 32 | 32 |
Estimated Fair Value, Total | 497 | 443 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (6) | (13) |
Gross Unrealized Losses, 12 months or more | (2) | (2) |
Gross Unrealized Losses, Total | $ (8) | $ (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 (Detail54
Investment Securities (Details 3) $ in Millions | Jun. 30, 2017USD ($) |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $ 623 |
Due after 1 year but within 5 years | 979 |
Due after 5 years but within 10 years | 294 |
Due after 10 years | 1,390 |
Total | 3,286 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 623 |
Estimated Fair Value, Due after 1 year but within 5 years | 984 |
Estimated Fair Value, Due after 5 years but within 10 years | 298 |
Estimated Fair Value, Due after 10 years | 1,406 |
Total | $ 3,311 |
Investment Securities (Detail55
Investment Securities (Details Textuals) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | Jun. 30, 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 | 2 | 3 |
American Express Lending Trust [Member] | ||
Assets from Trusts [Line Items] | ||
Restricted cash | $ 53 | $ 35 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Jun. 30, 2017USD ($) |
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 6.5 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 9.8 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
U.S.: | ||
Interest-bearing | $ 57,012 | $ 52,316 |
Non-interest-bearing | 348 | 367 |
Non-U.S.: | ||
Interest-bearing | 29 | 58 |
Non-interest-bearing | 337 | 301 |
Total customer deposits | 57,726 | 53,042 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 309 | 331 |
Non-U.S.: | ||
Non-interest-bearing | $ 325 | $ 285 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 30,276 | $ 30,980 |
Certificates of deposit - Direct | 285 | 291 |
Certificates of deposit - Third party | 14,997 | 11,925 |
Sweep accounts - Third party | 11,454 | 9,120 |
Other retail deposits: | ||
Non-U.S. deposits and U.S. non-interest bearing deposits | 80 | 110 |
Card Member credit balances - U.S. and non-U.S. | 634 | 616 |
Total customer deposits | $ 57,726 | $ 53,042 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Jun. 30, 2017USD ($) |
Time Deposits By Maturity | |
2,017 | $ 2,407 |
2,018 | 4,472 |
2,019 | 3,447 |
2,020 | 3,069 |
2,021 | 917 |
After 5 years | 986 |
Total | 15,298 |
United States [Member] | |
Time Deposits By Maturity | |
2,017 | 2,400 |
2,018 | 4,463 |
2,019 | 3,447 |
2,020 | 3,069 |
2,021 | 917 |
After 5 years | 986 |
Total | 15,282 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,017 | 7 |
2,018 | 9 |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 108 | $ 124 |
United States [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | 103 | 117 |
Non Us [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 5 | $ 7 |
Customer Deposits (Details Text
Customer Deposits (Details Textuals) | Jun. 30, 2017M |
Customer Deposits Textuals [Abstract] | |
Weighted Average Rate Domestic Deposit Certificates Of Deposit | 2.05% |
Weighted Average Maturity Certificates of Deposits | 46 |
Contingencies (Details Textuals
Contingencies (Details Textuals) $ in Millions | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 0 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 450 |
Derivatives and Hedging Activ64
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | $ 211 | $ 765 |
Total fair value of derivatives liabilties | 435 | 280 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | (20) | (54) |
Derivative asset and liability netting | (73) | (157) |
Total derivative assets, net | 118 | 555 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 67 | 458 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 39 | 111 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 28 | 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 | 144 | 308 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | (1) | (68) |
Derivative asset and liability netting | (73) | (157) |
Total derivative liabilities, net | 361 | 55 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 265 | 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 | 170 | 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 | 265 | 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 Activ65
Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative contract | $ 6 | $ 61 | $ (69) | $ 226 |
Hedged item | (25) | (53) | 25 | (224) |
Net hedge ineffectiveness | $ (19) | $ 8 | $ (44) | $ 2 |
Derivatives and Hedging Activ66
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||||
Net reduction in interest expense on long term debt and other | $ 37 | $ 59 | $ 81 | $ 118 | |
Margin On Interest Rate Swap Not Netted | 170 | 170 | $ 169 | ||
Derivative [Line Items] | |||||
Notional amount of long-term debt | 19,500 | 19,500 | 17,700 | ||
Effective portion of gain (loss) on hedges | (102) | 135 | (331) | 43 | |
Net hedge ineffectiveness | 0 | 0 | |||
Other Expense [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) in Changes of Fair Value of Derivatives not designated as hedges | (4) | 6 | (21) | (8) | |
Gain on embedded derivatives | (3) | 0 | (2) | 6 | |
Net Investment Hedges [Member] | Other Expense [Member] | |||||
Derivative [Line Items] | |||||
Amount reclassified from AOCI into income | 0 | 5 | 0 | 5 | |
Net hedge ineffectiveness | 0 | $ 0 | 0 | $ 0 | |
Not Sold Or Repledged [Member] | |||||
Derivative [Line Items] | |||||
Securities received as collateral | $ 0 | $ 0 | 18 | ||
Risk Exposure Low [Member] | |||||
Derivative [Line Items] | |||||
Total derivative assets, net | $ 537 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities: | ||
Equity securities and other | $ 49 | $ 49 |
Debt securities | 3,311 | 3,108 |
Derivatives | 211 | 765 |
Total assets | 3,571 | 3,922 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities and other | 1 | 1 |
Debt securities | 1,119 | 460 |
Derivatives | 0 | 0 |
Total assets | 1,120 | 461 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities and other | 48 | 48 |
Debt securities | 2,192 | 2,648 |
Derivatives | 211 | 765 |
Total assets | 2,451 | 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 | Jun. 30, 2017 | Dec. 31, 2016 |
Liabilities [Abstract] | ||
Derivatives | $ 435 | $ 280 |
Total liabilities | 435 | 280 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 435 | 280 |
Total liabilities | 435 | 280 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $ 30,442 | $ 25,208 | $ 33,767 | $ 22,762 |
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 15,298 | |||
Long-term debt | 51,945 | 46,990 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 48,930 | 46,841 | ||
Card Member loans, net | 64,651 | 64,042 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 16,002 | 15,113 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 30,000 | 25,000 | ||
Other financial assets | 52,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 67,000 | 65,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 67,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 15,000 | 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 | 30,000 | 25,000 | ||
Other financial assets | 52,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 67,000 | 66,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 67,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 15,000 | 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 | 16,100 | 15,200 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 7,900 | 8,800 | ||
Card Member loans, net | 24,400 | 26,000 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 28,000 | 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 | 52,000 | 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 | 67,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 15,000 | 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 | 67,000 | 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 | Jun. 30, 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 | Jun. 30, 2017 | Dec. 31, 2016 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 48,000 |
Amount of related liability | $ 50 | $ 86 |
Changes in Accumulated Other 72
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in Other Comprehensive income | ||||
Balances as of start of period | $ (2,784) | |||
Increase (decrease) due to amounts reclassified into earnings | $ 2 | |||
Pension and other postretirement benefits | $ 9 | 6 | 1 | $ 32 |
Balances as of end of period | (2,428) | (2,428) | ||
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||||
Investment securities | 0 | 2 | 3 | 2 |
Foreign currency translation adjustments | 12 | 22 | (179) | 37 |
Cash Flow Hedges | (67) | 78 | (207) | 24 |
Pension and other postretirement benefits | 1 | 10 | (8) | 29 |
Total tax impact | (54) | 112 | (391) | 92 |
Tax Benefit Recognized in the period | 280 | |||
Accumulated Other Comprehensive Loss [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (2,470) | (2,502) | (2,784) | (2,534) |
Net unrealized gains | 0 | 5 | 6 | 9 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 0 | (2) |
Net translation gain of investments in foreign operations | 135 | (265) | 680 | (169) |
Net losses related to hedges of investment in foreign operations | (102) | 135 | (331) | 43 |
Pension and other postretirement benefits | 9 | 6 | 1 | 32 |
Net change in accumulated other comprehensive income (loss) | 42 | (119) | 356 | (87) |
Balances as of end of period | (2,428) | (2,621) | (2,428) | (2,621) |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | 13 | 60 | 7 | 58 |
Net unrealized gains | 0 | 5 | 6 | 9 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 0 | (2) |
Net translation gain of investments in foreign operations | 0 | 0 | 0 | 0 |
Net losses related to hedges of investment in foreign operations | 0 | 0 | 0 | 0 |
Pension and other postretirement benefits | 0 | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 0 | 5 | 6 | 7 |
Balances as of end of period | 13 | 65 | 13 | 65 |
Foreign Currency Translation Adjustments [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (1,946) | (2,040) | (2,262) | (2,044) |
Net unrealized gains | 0 | 0 | 0 | 0 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 0 | 0 |
Net translation gain of investments in foreign operations | 135 | (265) | 680 | (169) |
Net losses related to hedges of investment in foreign operations | (102) | 135 | (331) | 43 |
Pension and other postretirement benefits | 0 | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 33 | (130) | 349 | (126) |
Balances as of end of period | (1,913) | (2,170) | (1,913) | (2,170) |
Net Unrealized Pension and Other Postretirement Gains (Losses) [Member] | ||||
Changes in Other Comprehensive income | ||||
Balances as of start of period | (537) | (522) | (529) | (548) |
Net unrealized gains | 0 | 0 | 0 | 0 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 0 | 0 |
Net translation gain of investments in foreign operations | 0 | 0 | 0 | 0 |
Net losses related to hedges of investment in foreign operations | 0 | 0 | 0 | 0 |
Pension and other postretirement benefits | 9 | 6 | 1 | 32 |
Net change in accumulated other comprehensive income (loss) | 9 | 6 | 1 | 32 |
Balances as of end of period | $ (528) | $ (516) | $ (528) | $ (516) |
Changes in Accumulated Other 73
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other non-interest revenue | $ 439 | $ 545 | $ 848 | $ 1,031 |
Interest expense on long-term debt and other | 346 | 286 | 640 | 561 |
Other expenses | 1,376 | 470 | 2,783 | 1,890 |
Increase (decrease) 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] | ||||
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 0 | (2) |
Foreign Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 | 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 | 0 | 0 | 4 |
Income tax provision for other non-interest revenue | 0 | 0 | 0 | (2) |
Other non-interest revenue, net of taxes | 0 | 0 | 0 | 2 |
Reclassification out of accumulated other comprehensive income [Member] | Foreign Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other expenses | 0 | 0 | 0 | 0 |
Income tax benefit for other, net expense | 0 | 0 | 0 | 0 |
Other, net expense, net of taxes | 0 | 0 | 0 | 0 |
Reclassification out of accumulated other comprehensive income [Member] | Accumulated Other Comprehensive Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Increase (decrease) due to amounts reclassified into earnings | $ 0 | $ 0 | $ 0 | $ 2 |
Non-Interest Revenue and Expe74
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Foreign currency conversion fee revenue | $ 218 | $ 192 | $ 432 | $ 392 |
Delinquency fees | 212 | 207 | 411 | 403 |
Loyalty Partner-related fees | 114 | 104 | 216 | 198 |
Travel commissions and fees | 90 | 87 | 174 | 167 |
Other | 118 | 112 | 232 | 222 |
Total Other fees and commissions | $ 752 | $ 702 | $ 1,465 | $ 1,382 |
Non-Interest Revenue and Expe75
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Global Network Services partner revenues | $ 150 | $ 197 | $ 306 | $ 342 |
Other | 289 | 348 | 542 | 689 |
Total other revenues | $ 439 | $ 545 | $ 848 | $ 1,031 |
Non-Interest Revenue and Expe76
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||||
Professional services | $ 521 | $ 628 | $ 1,033 | $ 1,232 |
Occupancy and equipment | 484 | 438 | 959 | 903 |
Gain on sale of held for sale (HFS) portfolio | 0 | (1,091) | 0 | (1,218) |
Other | 371 | 495 | 791 | 973 |
Total other, net | $ 1,376 | $ 470 | $ 2,783 | $ 1,890 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes (Textuals) | ||||
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 133 | $ 133 | ||
Decrease in Unrecognized tax benefits, amounts recorded to equity | $ 289 | $ 289 | ||
Actual tax rates | 31.20% | 33.20% | 31.60% | 33.80% |
Tax Benefit Recognized in the period | $ 280 | |||
Unrecognized tax benefits that, if recognized, could impact effective tax rate. | $ 90 | $ 90 | ||
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 (EP78
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Basic and diluted: | ||||||||
Net income | $ 1,340 | $ 2,015 | $ 2,577 | $ 3,441 | ||||
Preferred dividends | (19) | (19) | (40) | (40) | ||||
Net income available to common stockholders - basic | 1,321 | 1,996 | 2,537 | 3,401 | ||||
Net income available to common stockholders - diluted | 1,321 | 1,996 | 2,537 | 3,401 | ||||
Earnings allocated to participating share awards | (11) | (17) | (21) | (28) | ||||
Net income attributable to common shareholders | $ 1,310 | $ 1,979 | $ 2,516 | $ 3,373 | ||||
Denominator: | ||||||||
Basic | 890 | 938 | 895 | 949 | ||||
Add: Weighted-average stock options | 3 | 3 | 3 | 3 | ||||
Diluted | 893 | 941 | 898 | 952 | ||||
Earnings Per Common Share, Basic (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.47 | [1] | $ 2.11 | [1] | $ 2.81 | [2] | $ 3.55 | [2] |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | ||||||||
Net income attributable to common shareholders | $ 1.47 | [1] | $ 2.1 | [1] | $ 2.8 | [2] | $ 3.54 | [2] |
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 | 2.5 | 1.2 | 1.7 | ||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 11 million and $ 17 million for the three months ended June 30 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 19 million for both the three months ended June 30 , 2017 and 2016 . | |||||||
[2] | Represents net income less (i) earnings allocated to participating share awards of $ 21 million and $ 28 million for the six months ended June 30 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 40 million for both the six months ended June 30 , 2017 and 2016 . |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | $ 6,777 | $ 6,786 | $ 13,166 | $ 13,294 | |
Interest income | 2,052 | 1,885 | 3,995 | 3,890 | |
Interest expense | 522 | 436 | 965 | 861 | |
Total revenues, net of interest expense | 8,307 | 8,235 | 16,196 | 16,323 | |
Net income | 1,340 | 2,015 | 2,577 | 3,441 | |
Total assets | 166,997 | 160,000 | 166,997 | 160,000 | $ 158,893 |
Total equity | 21,175 | 21,000 | 21,175 | 21,000 | $ 20,501 |
U S Consumer Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,999 | 2,069 | 3,856 | 4,098 | |
Interest income | 1,369 | 1,278 | 2,677 | 2,669 | |
Interest expense | 171 | 139 | 317 | 279 | |
Total revenues, net of interest expense | 3,197 | 3,208 | 6,216 | 6,488 | |
Net income | 440 | 1,067 | 909 | 1,761 | |
Total assets | 86,800 | 81,000 | 86,800 | 81,000 | |
Total equity | 7,100 | 7,000 | 7,100 | 7,000 | |
International Consumer and Network Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,247 | 1,242 | 2,442 | 2,382 | |
Interest income | 246 | 234 | 481 | 461 | |
Interest expense | 60 | 58 | 113 | 112 | |
Total revenues, net of interest expense | 1,433 | 1,418 | 2,810 | 2,731 | |
Net income | 209 | 228 | 427 | 416 | |
Total assets | 37,600 | 34,500 | 37,600 | 34,500 | |
Total equity | 2,800 | 3,100 | 2,800 | 3,100 | |
Global Commercial Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 2,368 | 2,280 | 4,639 | 4,470 | |
Interest income | 334 | 310 | 653 | 631 | |
Interest expense | 129 | 104 | 238 | 199 | |
Total revenues, net of interest expense | 2,573 | 2,486 | 5,054 | 4,902 | |
Net income | 500 | 576 | 918 | 1,061 | |
Total assets | 51,000 | 45,900 | 51,000 | 45,900 | |
Total equity | 7,400 | 8,000 | 7,400 | 8,000 | |
Global Merchant Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,086 | 1,087 | 2,103 | 2,128 | |
Interest income | 1 | 1 | 1 | 1 | |
Interest expense | (65) | (61) | (123) | (120) | |
Total revenues, net of interest expense | 1,152 | 1,149 | 2,227 | 2,249 | |
Net income | 430 | 373 | 793 | 730 | |
Total assets | 25,500 | 24,000 | 25,500 | 24,000 | |
Total equity | 2,700 | 2,000 | 2,700 | 2,000 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 77 | 108 | 126 | 216 | |
Interest income | 102 | 62 | 183 | 128 | |
Interest expense | 227 | 196 | 420 | 391 | |
Total revenues, net of interest expense | (48) | (26) | (111) | (47) | |
Net income | (239) | (229) | (470) | (527) | |
Total assets | (35,000) | (26,000) | (35,000) | (26,000) | |
Total equity | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |