Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 06, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AMERICAN EXPRESS CO | ||
Trading Symbol | AXP | ||
Entity Central Index Key | 4,962 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 Public Float | $ 74.3 | ||
Entity Common Stock, Shares Outstanding | 860,278,838 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Non-interest revenues | ||||
Discount revenue | $ 19,186 | $ 18,680 | $ 19,297 | |
Net card fees | 3,090 | 2,886 | 2,700 | |
Other fees and commissions | 3,022 | 2,753 | 2,866 | |
Other | 1,732 | 2,029 | 2,033 | |
Total non-interest revenues | 27,030 | 26,348 | 26,896 | |
Interest income | ||||
Interest on loans | 8,138 | 7,205 | 7,309 | |
Interest and dividends on investment securities | 89 | 131 | 157 | |
Deposits with banks and other | 326 | 139 | 79 | |
Total interest income | 8,553 | 7,475 | 7,545 | |
Interest expense | ||||
Deposits | 779 | 598 | 475 | |
Long-term debt and other | 1,333 | 1,106 | 1,148 | |
Total interest expense | 2,112 | 1,704 | 1,623 | |
Net interest income | 6,441 | 5,771 | 5,922 | |
Total revenues net of interest expense | 33,471 | 32,119 | 32,818 | |
Provisions for losses | ||||
Charge Card | 795 | 696 | 737 | |
Card member loans | 1,868 | 1,235 | 1,190 | |
Other | 96 | 95 | 61 | |
Total provisions for losses | 2,759 | 2,026 | 1,988 | |
Total revenues net of interest expense after provisions for losses | 30,712 | 30,093 | 30,830 | |
Expenses | ||||
Marketing and promotion | 3,217 | 3,650 | 3,109 | |
Card Member rewards | 7,608 | 6,793 | 6,996 | |
Card Member services and other | 1,439 | 1,133 | 1,018 | |
Salaries and employee benefits | 5,258 | 5,259 | 4,976 | |
Other,net | 5,776 | 5,162 | 6,793 | |
Total Expenses | 23,298 | 21,997 | 22,892 | |
Pretax income | 7,414 | 8,096 | 7,938 | |
Income tax provision | 4,678 | 2,688 | 2,775 | |
Net income | $ 2,736 | $ 5,408 | $ 5,163 | |
Earnings per Common Share | ||||
Basic | [1] | $ 2.98 | $ 5.67 | $ 5.07 |
Diluted | $ 2.97 | $ 5.65 | $ 5.05 | |
Average common shares outstanding for earnings per common share: | ||||
Basic | 883 | 933 | 999 | |
Diluted | 886 | 935 | 1,003 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 21 million, $ 43 million and $ 38 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 81 million, $ 80 million and $ 62 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Income [Abstract] | |||||||||||
Earnings allocated to participating share awards | $ 2 | $ 11 | $ 11 | $ 10 | $ 6 | $ 9 | $ 17 | $ 11 | $ 21 | $ 43 | $ 38 |
Dividends Preferred Stock | $ 20 | $ 21 | $ 19 | $ 21 | $ 19 | $ 21 | $ 19 | $ 21 | $ 81 | $ 80 | $ 62 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 2,736 | $ 5,408 | $ 5,163 |
Other comprehensive income (loss) | |||
Net unrealized securities losses, net of tax | (7) | (51) | (38) |
Foreign currency translation adjustments, net of tax | 301 | (218) | (545) |
Net unrealized pension and other postretirement benefit, net of tax | 62 | 19 | (32) |
Other comprehensive gain (loss) | 356 | (250) | (615) |
Comprehensive income | $ 3,092 | $ 5,158 | $ 4,548 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Cash and cash due from banks | $ 5,148 | $ 3,278 |
Interest-bearing deposits in other banks | 27,709 | 20,779 |
Short-term investment securities | 70 | 1,151 |
Total cash and cash equivalents | 32,927 | 25,208 |
Accounts receivable | ||
Card Member receivables | 53,526 | 46,841 |
Other receivables | 3,163 | 3,232 |
Loans | ||
Card Member loans | 71,693 | 64,042 |
Other loans, net | 2,607 | 1,419 |
Investment securities | 3,159 | 3,157 |
Premises and equipment | 4,329 | 4,433 |
Other assets | 9,755 | 10,561 |
Total assets | 181,159 | 158,893 |
Liabilities | ||
Customer deposits | 64,452 | 53,042 |
Travelers Cheques and other prepaid products | 2,593 | 2,812 |
Accounts payable | 14,657 | 11,190 |
Short-term borrowings | 3,278 | 5,581 |
Long-term debt | 55,804 | 46,990 |
Other liabilities | 22,148 | 18,777 |
Total liabilities | 162,932 | 138,392 |
Shareholders' Equity | ||
Preferred shares issued | 0 | 0 |
Common shares | 172 | 181 |
Additional paid-in capital | 12,210 | 12,733 |
Retained earnings | 8,273 | 10,371 |
Accumulated other comprehensive income (loss) | ||
Net unrealized derivatives losses, net of tax | 0 | 7 |
Foreign currency translation adjustments, net of tax | (1,961) | (2,262) |
Net unrealized pension and other postretirement benefit losses, net of tax | (467) | (529) |
Total accumulated other comprehensive loss | (2,428) | (2,784) |
Total shareholders' equity | 18,227 | 20,501 |
Total liabilities and shareholders' equity | $ 181,159 | $ 158,893 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Card Member receivables, gross | $ 54,047 | $ 47,308 | |
Card Member loans | 73,399 | 65,265 | |
Other assets | 9,755 | 10,561 | |
Short-term borrowings | 3,278 | 5,581 | |
Long-term debt | 55,804 | 46,990 | |
Cash and cash equivalents | |||
Securities purchased under resale agreements | 48 | 115 | |
Card Member loans and receivables held for sale | 0 | 0 | |
Accounts receivable | |||
Card Member receivables, reserves | 521 | 467 | $ 462 |
Other receivables, reserves | 31 | 45 | |
Loans | |||
Balance, January 1 | 1,706 | 1,223 | 1,028 |
Other loans, reserves | 80 | 42 | |
Premises and equipment, accumulated depreciation | 5,455 | 5,145 | |
Restricted cash | 336 | 286 | |
Accumulated other comprehensive income (loss) | |||
Net unrealized securities gains, tax | 1 | 5 | (20) |
Net investment hedges | (215) | 139 | $ 340 |
Foreign currency translation adjustments, tax | (363) | 24 | |
Net unrealized pension and other postretirement benefit losses, net of tax | $ 179 | $ 186 | |
Common shares, par value | $ 0.2 | $ 0.2 | |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 859,000,000 | 904,000,000 | 969,000,000 |
Common shares, outstanding | 859,000,000 | 904,000,000 | |
Preferred shares, authorized | 20,000,000 | 20,000,000 | |
Preferred shares, issued | 1,600 | 1,600 | 0 |
Preferred shares, outstanding | 1,600 | 1,600 | 0 |
Preferred shares, par value | $ 1.67 | $ 1.67 | |
Variable Interest Enterprise [Member] | |||
Card Member receivables, gross | $ 8,919 | $ 8,874 | |
Card Member loans | 25,695 | 26,129 | |
Long-term debt | 18,560 | 15,113 | |
Cash and cash equivalents | |||
Card Member loans and receivables held for sale | 0 | 0 | |
Loans | |||
Restricted cash | $ 62 | $ 38 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net income | $ 2,736 | $ 5,408 | $ 5,163 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Provisions for losses | 2,759 | 2,026 | 1,988 |
Depreciation and amortization | 1,321 | 1,095 | 1,043 |
Deferred taxes and other | 783 | (1,132) | 507 |
Stock-based compensation | 282 | 254 | 234 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other receivables | 473 | (281) | (714) |
Other assets | (62) | 192 | 2,058 |
Accounts payable and other liabilities | 5,505 | 1,139 | 794 |
Travelers Cheques and other prepaid products | (257) | (410) | (367) |
Net cash provided by operating activities | 13,540 | 8,291 | 10,706 |
Cash Flows from Investing Activities | |||
Sales of available-for-sale investment securities | 2 | 88 | 12 |
Maturities and redemptions of available-for-sale investment securities | 2,494 | 2,429 | 2,091 |
Sales of other investments | 0 | 10 | 0 |
Purchase of investments | (2,612) | (2,162) | (1,713) |
Net increase in Card Member receivables and loans, including held for sale | (16,853) | 3,220 | (6,967) |
Purchase of premises and equipment | (1,062) | (1,375) | (1,341) |
Acquisitions/dispositions, net of cash acquired | (211) | (487) | (155) |
Net (increase) decrease in restricted cash | (31) | 145 | (120) |
Net cash (used in) provided by investing activities | (18,273) | 1,868 | (8,193) |
Cash Flows from Financing Activities | |||
Net increase (decrease) in customer deposits | 11,385 | (1,935) | 10,878 |
Net (decrease) increase in short-term borrowings | (2,300) | 888 | 1,395 |
Issuance of long-term debt | 32,764 | 8,824 | 9,923 |
Principal payments on long term debt | (24,082) | (9,848) | (19,246) |
Issuance of American Express preferred shares | 0 | 0 | 841 |
Issuance of American Express common shares | 129 | 177 | 193 |
Repurchase of American Express common shares | (4,300) | (4,400) | (4,500) |
Dividends paid | (1,251) | (1,207) | (1,172) |
Net cash provided by (used in) financing activities | 12,245 | (7,599) | (1,763) |
Effect of foreign currency exchange rates on cash and cash equivalents | 207 | (114) | (276) |
Net increase in cash and cash equivalents | 7,719 | 2,446 | 474 |
Cash and cash equivalents at beginning of year | 25,208 | 22,762 | 22,288 |
Cash and cash equivalents at end of year | $ 32,927 | $ 25,208 | $ 22,762 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Cash Flows [Abstract] | |||
Sale of premises and equipment | $ 1 | $ 2 | $ 42 |
Transfer of Card Member loans and receivables to Card Member loans and receivables held for sale | $ 0 | $ 0 | $ 14,524 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Preferred shares | Common Shares | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2014 | $ 20,673 | $ 0 | $ 205 | $ 12,874 | $ (1,919) | $ 9,513 |
Net income | 5,163 | 5,163 | ||||
Other comprehensive (loss) income | (615) | (615) | ||||
Repurchase of common shares | (4,509) | (12) | (714) | (3,783) | ||
Other changes, primarily employee plans | 310 | 1 | 347 | (38) | ||
Cash dividends declared preferred | (62) | (62) | ||||
Cash dividends declared common, per share | (1,128) | (1,128) | ||||
Ending Balance at Dec. 31, 2015 | $ 20,673 | 0 | 194 | $ 13,348 | (2,534) | 9,665 |
Preferred shares issued | 841 | 841 | ||||
Net income | $ 5,408 | 5,408 | ||||
Other comprehensive (loss) income | (250) | (250) | ||||
Repurchase of common shares | (4,421) | (14) | $ (924) | (3,483) | ||
Other changes, primarily employee plans | 308 | 1 | 309 | 0 | (2) | |
Cash dividends declared preferred | (80) | (80) | ||||
Cash dividends declared common, per share | (1,137) | (1,137) | ||||
Ending Balance at Dec. 31, 2016 | $ 20,501 | 0 | 181 | $ 12,733 | (2,784) | 10,371 |
Preferred shares issued | 0 | 0 | ||||
Net income | $ 2,736 | 2,736 | ||||
Other comprehensive (loss) income | 356 | 356 | ||||
Repurchase of common shares | (4,314) | (10) | $ (742) | (3,562) | ||
Other changes, primarily employee plans | 212 | 1 | 219 | (8) | ||
Cash dividends declared preferred | (81) | (81) | ||||
Cash dividends declared common, per share | (1,183) | (1,183) | ||||
Ending Balance at Dec. 31, 2017 | $ 18,227 | $ 0 | $ 172 | $ 12,210 | $ (2,428) | $ 8,273 |
Preferred shares issued | 0 |
Consolidated Statements of Sh10
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash dividends declared | |||||||||||
Common stock, dividend per share | $ 0.35 | $ 0.35 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 0.29 | $ 1.34 | $ 1.22 | $ 1.13 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Basis of Presentation | NOTE 1 Summary of Significant Accounting Policies 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 t o consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Bu siness 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 through various channels, including direct mail, online applications, in-house and third-party sales forces and direct response advertising. Effective for the first quarter of 2016, the Company realigned its segment presentation to reflect the organizational changes announced during the fourth quarter of 2015. Prior periods have been restated to conform to the new reportable operating segments. Refer to Note 25 for additional discussion of the products and services that comprise each segment. Corporate functions and certain other businesses and operations are included in Corporate & Other. Principles of Consolidati on The Consolidated Financial Statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. The Company consolidates entitie s in which it holds a “controlling financial interest.” For voting interest entities, the Company is considered to hold a controlling financial interest when it is able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, the Company is considered to hold a controlling financial interest when it is determined to be the primary beneficiary. A primary benef iciary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could p otentia lly be significant to that VIE. Entities in which the Company’s voting interest in common equity does not provide it with control, but allows the Company to exert significant influence over operating and financial decisions, are accounted for under the equ ity method. All other investments in equity securities, to the extent they are not considered marketable securities, are accounted for under the cost method. Foreign Currency Monetary a ssets and liabili ties denominated in foreign currencies are translate d into U.S. dollars based upon exchange rates prevailing at the e nd of the reporting period; non- monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction; revenues and expenses are translated at the averag e month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation a djustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency ar e reported net in Other expenses, in the Company’s Consolidated Statements of Income. Net for eign currency transaction gains amounted to approximately $7 million and $68 million in 2017 and 2015, respectively, and net foreign currency transaction losses amounted to $18 million in 2016 . Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events . Among the more significant assumptions are those that relate to reserves for Card Member losses on loans and receivables, the proprietary point liability for Membership Rewards costs, fair value measurements, goodwill and income taxes. These accounting e stimates reflect the best judgment of management, but actual results could differ. Income statement Discount Revenue Discount revenue generally represents the amount earned by the Company on transactions occurring at merchants with which the Company, or a Global Network Services (GNS) partner, has entered into a card acceptance agreement for facilitating transactions between the merchants and the Company’s Card Members. The amount of fees charged, or merchant discount, is generally deducted from the payme nt to the merchant and recorded as discount revenue at the time a Card Member enters into a point-of-sale transaction with a merchant. Where the Company acts as the merchant acquirer and the card presented at a merchant is issued by a third-party financial institution, such as in the case of GNS partners, the Company makes financial settlement to the merchant and receives the discount revenue. In the Company’s role as the operator of the card network, it also receives financial settlement from the GNS card issuer, which in turn receives an issuer rate that is individually negotiated between that issuer and the Company. The difference between the merchant discount the Company receives from the merchant (which is directly agreed between a merchant and the Comp any , and is not based on the issuer rate) and the issuer rate received by the GNS card issuer is recorded as discount revenue. In cases where the Company is the card issuer and the merchant acquirer is a third party (which can be the case in a country in which an Independent Operator partner is the local merchant acquirer or in the United States under our OptBlue program with certain third-party merchant acquirers), the Company receives a network rate in its settlement with the merchant acquirer, which is individually negotiated between the Company and that merchant acquirer and is recorded as discount revenue. In contrast with networks such as those operated by Visa Inc. and MasterCard Incorporated, there are no collectively set interchange rates on the Am erican Express network, issuer rates do not serve as a basis for merchant discount rates and no fees are agreed or due between the third-party financial institution participants on the network. Net Card Fees Net card fees represent revenue earned from annual ca rd membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-li ne basis over the twelve -month card membership period as Net Card Fees in the Consolidated Statements of Income. The unamortized net card fee balance is reported in Other Liabilities on the Consolidated Balance Sheets (refer to Note 10). Other Fees and Com missions Other fees and commissions represent Card Member delinquency fees, foreign currency conversion fees, loyalty coalition-related fees, travel commissions and fees and service fees, which are primarily recognized in the period in which they are char ged to the Card Member (refer to Note 19). In addition, service fees are also earned from other customers (e.g., merchants) for a variety of services and are recognized when the service is performed, which is generally in the period the fee is charged. Als o included are fees related to the Company’s Membership Rewards program, which are deferred and recognized over the period covered by the fee, typically one year; the unamortized portion of which is included in Other Liabilities on the Consolidated Balance Sheets ( r efer to Note 10). Contra-revenue The Company regularly makes payments through contractual arrangements with merchants, corporate payments clients, Card Members , third-party issuing partners and certain other customers. These payments, including cash rebates and statement credits provided to Card Members, are generally classified as contra-revenue unless a specifically identifiable benefit (e.g., goods or services) is received by the Company or its Card Members in consideration for that payment, a nd the fair value of such benefit is determinable and measurable. If such conditions are met, then the payment is classified as expense up to the estimated fair value of the benefit. If no such benefit is identified, then the entire payment is classified a s contra-revenue and included in the Consolidated Statements of Income in the revenue line item where the related transactions are recorded (e.g., Discount revenue or Other fees and commissions). Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is pai d, or written off. Interest and dividends on investment securities primarily relate to the Company’s performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security prem iums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments wi ll not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and o ther interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expe nse is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on the Company’s long-term debt and shor t-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on the Company’s long-term debt. Expenses Marketing and promotion expense includes costs incurred in the development and initial placement of advertising, wh ich are expensed in the year in which the advertising first takes place. Balance Sheet Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, and other highly liquid investments with original maturities of 90 days or less. Goodwill Goodwill represents the excess of acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. The Company allocates goodwill to its reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regul arly reviewed by the operating segment manager. The Company evaluates goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of the Co mpany’s reporting units below its carrying value. Prior to completing the assessment of goodwill for impairment, the Company also performs a recoverability test of certain long-lived assets. The Company has the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of its reporting units is less than the carrying values. Alternatively, the Company performs a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other company and reporting unit - specific events. If the Co mpany determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, it then performs the impairment evaluation using the quantitative a ssessment . Under the quantitative assessment , t he first step ide ntifies whether there is a potential impairment by comparing the fair value of a reporting unit to the carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds the fair value, then a test is performed to determine the implied fair value of goodwill. An impairment loss is recognized based on the amount that the carrying amount of goodwill exceeds the implied fair value. When measuring the fair value of its reporting units in the quantitative assessment , the Company uses wi dely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, the Company uses internal forecasts to e stimate future cash flows expected to be generated by the reporting units. To discount these cash flows, the Company uses the expected cost of equity, determined by using a capital asset pricing model. The Company believes the discount rates used appropria tely reflect the risks and uncertainties in the financial markets generally and specifically in the Company’s internally - developed forecasts. When using market multiples under the market approach, the Company applies comparable publicly traded companies’ m ultiples (e.g., earnings or revenues) to its reporting units’ actual results. For the year ended December 31, 2017, the Company performed a qualitative assessment and determined that it was more likely than not that the fair values of its reporting units exceeded their carrying values. For the year ended December 31, 2016, the Company performed the quantitative assessment for all of its reporting units and determined that there was no impairment of goodwill. Other Intangible Assets Intangible assets, prima rily customer relationships, are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. The Company reviews long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. Premises and Equipment Premises and equipment, including leaseh old improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estim ated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful l ife at the acquisition date. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and ranges from 5 to 10 years. The Company maintains operating leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and includes adjustments for rent concessions, rent escalations and leasehold improvement all owances. The Company recognizes lease restoration obligations at the fair value of the restoration liabilities when incurred and amortizes the restoration assets over the lease term. Certain costs associated with the acquisition or development of internal- use software are also capitalized and recorded in Premises and equipment. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. The Compa ny reviews these assets for impairment using the same impairment methodology used for its intangible assets. Other Significant Accounting Policies The following table identifies the Company’s other significant accounting policies, along with the related N ote and page number where the Note can be found. Significant Accounting Policy Note Number Note Title Page Accounts Receivable Note 3 Loans and Accounts Receivable Page 94 Loans Note 3 Loans and Accounts Receivable Page 94 Reserves for Losses Note 4 Reserves for Losses Page 101 Investment Securities Note 5 Investment Securities Page 103 Asset Securitizations Note 6 Asset Securitizations Page 104 Membership Rewards Note 10 Other Liabilities Page 110 Stock-based Compensation Note 11 Stock Plans Page 111 Retirement Plans Note 12 Retirement Plans Page 113 Legal Contingencies Note 13 Contingencies and Commitments Page 113 Derivative Financial Instruments and Hedging Activities Note 14 Derivatives and Hedging Activities Page 115 Fair Value Measurements Note 15 Fair Values Page 118 Income Taxes Note 21 Income Taxes Page 127 Regulatory Matters and Capital Adequacy Note 23 Regulatory Matters and Capital Adequacy Page 130 Reportable Operating Segments Note 25 Reportable Operating Segments and Geographic Operations Page 133 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 related to revenue, and requiring additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. The guidance, as amended and effective January 1, 2018, supersedes most of the r evenue recognition requirements in effect prior to that date . Beginning with the quarter ending March 31, 2018, the Company’s consolidated financial statements will reflect the adoption of the standard using the full retrosp ective method, which applies the new standard to each prior reporting period presented. The most significant impacts of the adoption are changes to the presentation of certain credit and charge card related costs that previously were netted against D iscoun t revenue, including Card Member cash-back reward costs and statement credits, corporate client incentive payments, as well as payments to third-party card issuing partners. Under the new standard , these costs are not considered components of the transacti on price of our card acceptance agreements with merchants and thus are not netted against Discount revenue , but instead recognized as expense s . Our p ayments to third-party card issuing partners will be presented net of related Other revenues earned from th e partners. These reclassifications are expected to have the following impacts to the reported re sults for the fiscal years ended : Increase (Decrease) December 31 (Millions) 2017 2016 Revenues Discount revenue $ 3,707 $ 3,699 Other (278) (253) Expenses Marketing and promotion 2,350 2,420 Card Member rewards $ 1,079 $ 1,026 The a doption of the new guidance also results in changes to the recognition timing of certain revenues, the impact of which is not material to net income. Similarly, t he adoption does not have a material impact on the Company’s consolidated balance sheets or statements of cash flows. T he Company is in the process of implementing changes to its accounting policies, business processes, systems and internal controls to support the recognition, measurement and disclosure requirements under the new standard. I n January 2016, the FASB issued new accounting guidance on the recognition and measurement of financial assets and financial liabilities , which was effective and adopted by the Company as of January 1, 2018 . The guidance makes targeted changes to GAAP ; spe cifically to the classification and measurement of equity securities, and to certain disclosure requirements associated with the fai r value of financial assets and liabilities . In the ordinary course of business, the Company makes investments in non-public companies, which historically were recognized under the cost method of accounting. Under the new guidance, these investments are prospectively adjusted for observable price changes through earnings upon the identification of identical or similar transact ions of the same issuer. The adoption o f the guidance, as of January 1, 2018, did not have a material impact on the Company’s financial position, results of opera tions and cash flows. T he Company implemented changes to its accounting polic ies, business pro cesses and internal controls in support of the new guidance. In February 2016, the FASB issued new accounting guidance on leases. The guidance, effective January 1, 2019, with early adoption permitted, requires virtually all leases to be recognized on the Consolidated Balance Sheets. The Company will adopt the standard effective January 1, 2019, and is currently planning on using the modified retrospective approach, which requires recording existing operating leases on the Consolidated Balance Sheets upon a doption and in the comparative period. The Company is in the process of upgrading its lease administration software and changing business processes and internal controls in preparation for the adoption. Specifically, the Company is currently reviewing its lease portfolio and is evaluating and interpreting the requirements under the guidance, including the available accounting policy elections, in o rder to determine the impacts on the Company’s financial position, results of operations and cash flows upon ad option. In June 2016, the FASB issued new accounting guidance for recognition of credit losses on financial instruments, effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model know n 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 experien ce and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. In addition, for available-for-sale debt securities, the new guidance replaces the other-than-temporary impairment model, and r equires the recognition of an allowance for reductions in a security’s fair value attributable to declines in credit quality , instead o f a direct write-down of the security when a valuation dec line was determined to be other- than - temporary. T he guidance also 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 will 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, and may result in material increases to the Company’s credit reserves as the new guidance involves earlier recognition of expected losses for the life of the assets. The Company has established an enterprise-wide, cross-discipline governance structure to implement the new standard, and continues t o identify and conclude on key interpretive issues along with evaluating its existing credit loss forecasting models and processes in relation to the new guidance to determine what modifications may be required. In August 2017, the FASB issued new accounti ng guidance providing targeted improvements to the accounting f or hedging activities, effective January 1, 2019, with early adoption permitted in any interim period or fiscal year before the effective date. The guidance introduces a number of amendments, s everal of which are optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. Effective January 1, 2018, t he Co mpany adopt ed the guidance , with no material impact on its financial position, results of operations and cash flows, along with associated changes to its accounting policies, business processes and internal controls in support of the new guidance. In February 2018, as a result of the enactment of the Tax Cuts and Jobs Act (the Tax Act), the FASB issued new accounting guidance on the reclassification of certain tax effects from AOCI to retained earnings. The optional guidance is effective January 1, 2019, with early adoption permitted. The Company is evaluating whether it will adopt the new guidance along with any impacts on the Company’s financial position, results of operations and cash flows, none of which are expected to be material. Class ification of Various Items Certain reclassifications of prior period amounts have been made to conform to the current period presentation. Specifically, d uring 2016, the Company determined that in the Consolidated Statements of Cash Flows for the comparat ive periods ended June 30, 2015, September 30, 2015 and December 31, 2015, certain activities related to long-term debt repayments were misclassified between financing activities and operating activities. There is no impact to the Consolidated Statements o f Income or Consolidated Balance Sheets. The Company evaluated the effects of these misclassifications and concluded that none are material to any of its previously issued Cons olidated Financial Statements. Nevertheless, the Company elected to revise prosp ectively the comparative periods mentioned above. For the year ended December 31, 2015, this revision resulted in a $361 million decrease to both Net cash used in financing activities and Net cash provided by operating activities. In addition, travel commi ssions and fees, which were previously disclosed separately on the Consolidated Statements of Income, are now included within Other fees and commissions. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Acquisitions | NOTE 2 BUSINESS EVENTS LOANS AND RECEIVABLES Held for sale 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 Card Member loans and receivables HFS as of Decem ber 31, 2015. During the first half of 2016, t he Company completed the sales of substantially all of these outstanding Card Member loans and receivables HFS and recognized gai ns, as an expense reduction in O ther expenses, of $127 million and $1.1 billion d uring the three months ended March 31, 2016 and June 30, 2016 , respectively. The impact of the sales , including the recognition of the proceeds received and the reclassification of the retained Car d Member loans and receivables, wa s reported within the investing section of the Consolidated Statements of Cash Flows as a net decrease in Card Member receivables an d loans, including HFS . From the point of classification as HFS through the sale completion dates, the Company continued to recognize disco unt rev enue, 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 th e HFS portfolios recognized in O ther expenses. GOODWILL AND TECHN OLOGY Impairment As discussed in Note 1, the Company evaluates goodwill for impairment annually, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of the Company’s reporting unit s below its carrying value. Based on its annual assessment as of June 30, 2015, the Company determined that goodwill was not impaired; however, during the fourth quarter of 2015, the Company announced changes to its management organizational structure unde r which reconsideration of the Company’s Prepaid Services business (a reporting unit that is included in Corporate & Other) occurred. As a result, the Company determined that sufficient indicators of potential impairment of goodwill existed and performed a n impairment evaluation. In performing its quantitative impairment assessment , it was determined the carrying value of the Prepaid Services business’ goodwill exceeded its implied fair value and the Company recognized an impairment loss. The fair value of the Prepaid Services business asset group was measured based on an income approach (discounted cash flow valuation methodology), with the assistance of a third-party valuation firm. Prior to completing the assessment of goodwill for impairment, the Company performed a recoverability test of certain long-lived assets in the Prepaid Services business and determined that certain long-lived assets, primarily technology assets, were not recoverable. As a result, during the fourth quarter of 2015, the Company rec orded a $384 million impairment charge, comprising a $219 million write-down of the entire balance of goodwill in the Prepaid Services business and a $165 million write-down of technology and other assets to fair value. These charges were reported in O ther expenses. Refer to Note 7 for further discussion of the Company’s goodwill and intangible assets. |
Accounts Receivable and Loans
Accounts Receivable and Loans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Loans and Accounts Receivable | NOTE 3 Loans and Accounts Receivable The Company’s lending and charge p ayment card products result in the generation of Card Member loans and Card Member receivables, respectively. Card Member and Other Loans Card Member loans are recorded at the time a Card Member enters into a p oint-of-sale transaction with a merchant and represent revolving amounts due on lending card products, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect to revolve a portion of the outstanding balance by entering into a revolving payment arrangement with the Company. These loans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members, an d in accordance with applicable regulations and the respective product’s terms and conditions. Card Members holding revolving loans are typically required to make monthly payments based on pre-established amounts and the amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued interest and fees. The Company’s policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that the Company believes will not be collected. Card Member loans by segment and Other loans as of December 31, 2017 and 2016 c onsisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 53,668 $ 48,758 International Consumer and Network Services 8,651 6,971 Global Commercial Services 11,080 9,536 Card Member loans 73,399 65,265 Less: Reserve for losses 1,706 1,223 Card Member loans, net $ 71,693 $ 64,042 Other loans, net (b) $ 2,607 $ 1,419 Includes approximately $ 25.7 billion and $ 26.1 billion of gross Card Member loans available to settl e obligations of a consolidated VIE as of December 31, 2017 and 2016 , respectively. Other loans primarily represent personal and commercial financing products. Other loans are presented net of reserves for losses of $ 80 million and $ 42 million as of December 31, 2017 and 2016 , respectively. Card Member and Other Receivables Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for the Company. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued fees. Card Member accounts receivable by segment and Other receivables as of December 31, 2017 and 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 13,143 $ 12,302 International Consumer and Network Services 7,803 5,966 Global Commercial Services 33,101 29,040 Card Member receivables 54,047 47,308 Less: Reserve for losses 521 467 Card Member receivables, net $ 53,526 $ 46,841 Other receivables, net (b) $ 3,163 $ 3,232 Includes $ 8.9 billion of gross Card Member receivables available to settle obligati ons of a consolidated VIE as of both December 31, 2017 and 2016 . Other receivables primarily represent amounts related to (i) GNS partner banks for items such as royalty and franchise fees, (ii) certain merchants for b illed discount revenue, (iii) tax-related receivables, and (iv ) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are presented net of reserves for losses of $ 31 million and $ 45 million as of December 31, 2017 and 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 December 31, 2017 and 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 $ 52,961 $ 201 162 344 $ 53,668 International Consumer and Network Services 8,530 37 28 56 8,651 Global Commercial Services Global Small Business Services 10,892 43 31 59 11,025 Global Corporate Payments (a) (b) (b) (b) ― 55 Card Member Receivables: U.S. Consumer Services $ 12,993 53 33 64 $ 13,143 International Consumer and Network Services 7,703 29 21 50 7,803 Global Commercial Services Global Small Business Services 15,868 91 54 106 16,119 Global Corporate Payments (a) (b) (b) (b) 148 16,982 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 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 90 days past billing, the associated Card Member loan and rec eivable 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 is not available due to system constraints. Ther efore, 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 Card Member Loans and Receivables The following tables present the key credit quality indicators as of or for the years ended December 31: 2017 2016 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest, & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest, & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: U.S. Consumer Services 1.8 % 2.1 % 1.3 % 1.5 % 1.8 % 1.1 % International Consumer and Network Services 2.1 % 2.5 % 1.4 % 2.0 % 2.5 % 1.6 % Global Small Business Services 1.6 % 1.9 % 1.2 % 1.4 % 1.7 % 1.1 % Card Member Receivables: U.S. Consumer Services 1.3 % 1.4 % 1.1 % 1.4 % 1.6 % 1.2 % International Consumer and Network Services 2.0 % 2.1 % 1.3 % 2.0 % 2.2 % 1.3 % Global Small Business Services 1.6 % 1.8 % 1.6 % 1.5 % 1.7 % 1.6 % 2017 2016 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.10 % 0.9 % 0.09 % 0.9 % 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. Refer to Note 4 for additional indicators, including external environmental qualitative factors, management considers in its monthly evaluation process for reserves for losses. Impaired Card Member Loans and Receivables Impaired Card Member loans and receivables are individual larger balance or homogeneous pools of smaller 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. The Company considers impaired loans and receivables to include: (i) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receiv ables modified as troubled debt restructurings (TDRs). In instances where the Card Member is experiencing financial difficulty, the Company may modify, through various programs, Card Member loans and receivables in order to minimize losses and improve col lectability, while providing Card Members with temporary or permanent financial relief. The Company has classified Card Member loans and receivables in these modification programs as TDRs and continues to classify Card Member accounts that have exited a mo dification program as a TDR, with such accounts identified as “Out of Program TDRs.” Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is charac terized as non-accrual in the Company’s TDR disclosures), (ii) placing the Card Member on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the Card Member exits the modification program. Upon entering the modificatio n program, the Card Member’s ability to make future purchases is either cancelled, or in certain cases suspended until the Card Member successfully exits the modification program. In accordance with the modification agreement with the Card Member, loans ma y revert back to the original contractual terms (including the contractual interest rate) when the Card Member exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or, (ii) when the Car d Member defaults out of the modification program. The Company establishes a reserve for Card Member interest charges and fees considered to be uncollectible. Reserves for Ca rd Member loans and receivables modified as TDRs are determined as the difference between the cash flows expected to be received from the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying value of the rela ted Card Member loan or receivables balance. Th e Company determines the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are included in Provisions for losses in the Consolidated Statements of Income. 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 ICNS as of December 31, 2017, 2016 and 2015 ; therefore, this segment’s receivables are not included in the following tables. As of December 31, 2017 Accounts Classified as a TDR (c) (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 $ 233 $ 168 $ 178 $ 131 $ 710 $ 639 $ 49 International Consumer and Network Services 56 ― ― ― 56 55 ― Global Commercial Services 38 31 31 27 127 118 8 Card Member Receivables: U.S. Consumer Services ― ― 15 9 24 24 1 Global Commercial Services ― ― 37 19 56 56 2 Total $ 327 $ 199 $ 261 $ 186 $ 973 $ 892 $ 60 As of December 31, 2016 Accounts Classified as a TDR (c) (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 As of December 31, 2015 Accounts Classified as a TDR (c) (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 $ 140 $ 124 $ 149 $ 89 $ 502 $ 463 $ 44 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 24 26 23 18 91 85 9 Card Member Receivables: U.S. Consumer Services ― ― 11 3 14 14 8 Global Commercial Services ― ― 16 3 19 19 12 Total $ 216 $ 150 $ 199 $ 113 $ 678 $ 632 $ 73 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 $15 million, $20 million and $20 million that are over 90 days past due and accruing interest and $5 million, $11 million and $18 million that are non-accruals as of December 31, 201 7 , 201 6 and 201 5 , respectively. I n Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program T DRs include $141 million, $132 million and $84 million of Card Member accounts that have successfully complete d a modification program and $ 45 million, $3 9 million and $2 9 million of Card Member accounts that were not in compliance with the terms of the modification programs as of December 31, 2017, 2016 and 2015, respectively. The following table provides information with respect to the Company’s average balances and in terest income recognized from I mpaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: 2017 (Millions) Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 643 $ 68 International Consumer and Network Services 56 17 Global Commercial Services 120 17 Card Member Receivables: U.S. Consumer Services 20 ― Global Commercial Services 45 ― Total $ 884 $ 102 Interest Income 2016 (Millions) Average Balance Recognized Card Member Loans: U.S. Consumer Services $ 559 $ 53 International Consumer and Network Services 53 15 Global Commercial Services 103 13 Card Member Receivables: U.S. Consumer Services 14 ― Global Commercial Services 28 ― Total $ 757 $ 81 Interest Income 2015 (Millions) Average Balance Recognized Card Member Loans: U.S. Consumer Services $ 569 $ 48 International Consumer and Network Services 54 14 Global Commercial Services 104 11 Card Member Receivables: U.S. Consumer Services 13 ― Global Commercial Services 20 ― Total $ 760 $ 73 Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs for the years ended December 31, 2017, 2016 and 2015 . The ICNS Card Member loans and receivables modifications were not significant; therefore, this segment is not included in the following TDR disclosures. 2017 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 33 $ 224 10 (b) Card Member Receivables 6 83 (c) 28 Total 39 $ 307 2016 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 31 $ 220 9 (b) Card Member Receivables 9 123 (c) 18 Total 40 $ 343 2015 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 40 $ 285 9 (b) Card Member Receivables 12 147 (c) 12 Total 52 $ 432 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. Modifications did not reduce the principal balance. 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 of modification for the years ended December 31, 2017 , 2016 and 2015 . A Card Member is considered in default of a modification program af ter one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of defa ult is factored into the reserves for Card Member loans and receivables. Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2017 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 6 $ 39 Card Member Receivables 3 7 Total 9 $ 46 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2016 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 7 $ 41 Card Member Receivables 3 4 Total 10 $ 45 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2015 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 52 Card Member Receivables 3 5 Total 11 $ 57 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 | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Reserve for Losses | NOTE 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 portfolio of loans and receivables, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantit ative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitative reserves for certain external and internal qualitative factors, which may increase or decrease the reserves for losses on Card Member loans and receivables. These external factors include employment, spend, sentiment, housing and c redit, and changes in the legal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member loans or receivables, and net write-off coverage ratios. Card Member loans and re ceivables balances are written off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification, and recoveries are recognized as they are collected. This Note is presented excluding amounts associated with the Card Member loans and receivables HFS as of December 31, 2015; the Compa ny did not have any Card Member loans and receivables HFS as of December 31, 2017 or 2016 . Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the years ended December 31: (Millions) 2017 2016 2015 Balance, January 1 $ 1,223 $ 1,028 $ 1,201 Provisions (a) 1,868 1,235 1,190 Net write-offs Principal (b) (1,181) (930) (967) Interest and fees (b) (227) (175) (162) Transfer of reserves on HFS loan portfolios ― ― (224) Other (c) 23 65 (10) Balance, December 31 $ 1,706 $ 1,223 $ 1,028 Provisions for principal, interest and fee reserve components. P rincipal write-offs are presented less recoveries of $ 409 million, $ 379 million and $ 418 million, and include net write-offs from TDRs of $30 million, $ 34 million and $ 41 million, for the years ended December 31, 2017 , 2016 and 2015 , respectively. Recoveries of i nterest and fees were not significant . Includes foreign currency translation adjustments of $ 8 million, $ (10) million and $ (20) million , and other adjustments of $ 15 million, $ 8 million and $ 10 million for the years ended December 31, 2017 , 2016 and 2015 , respectiv ely. The year ended December 31, 2016 include d reserves of $67 million associated with $265 million of retained Card Member loans reclassified from HFS to held for investment as a result of retaining certain loans in connection with the respective 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 Decembe r 31: (Millions) 2017 2016 2015 Card Member loans evaluated individually for impairment (a) $ 367 $ 346 $ 279 Related reserves (a) $ 57 $ 60 $ 53 Card Member loans evaluated collectively for impairment (b) $ 73,032 $ 64,919 $ 58,294 Related reserves (b) $ 1,649 $ 1,163 $ 975 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 years ended December 31: (Millions) 2017 2016 2015 Balance, January 1 $ 467 $ 462 $ 465 Provisions (a) 795 696 737 Net write-offs (b) (736) (674) (713) Other (c) (5) (17) (27) Balance, December 31 $ 521 $ 467 $ 462 Provisions for principal and fee reserve components. P rincipal and fee write-offs are presented less recoveries of $ 359 million, $ 391 million and $ 401 million, including net write-offs from TDRs of $ (2) million, $ 16 million and $ 60 million, for the years ended December 31, 2017 , 2016 and 2015 , respectively. Includes foreign currency translation adjustments of $ 12 million, $ (12) million and $ (16) million , and other adjustments of $ (17) million, $ (5) million and $ (11) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Additionally, 2015 include d the impact of the transfer of the HFS receivables portfo lio, which was not significant. Card Member Receivables Evaluated Individually and Collectively for Impairment The following table presents Card Member receivables evaluated individually and collectively for impairme nt and related reserves as of December 31: (Millions) 2017 2016 2015 Card Member receivables evaluated individually for impairment (a) $ 80 $ 55 $ 33 Related reserves (a) $ 3 $ 28 $ 20 Card Member receivables evaluated collectively for impairment $ 53,967 $ 47,253 $ 44,100 Related reserves (b) $ 518 $ 439 $ 442 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 | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Investment Securities | NOTE 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 unrealized gains and losses recorded in AOCI, net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. Refer to Note 15 for a description of the Company’s methodology for determining the fair value of investment securities . The following is a summary of investment securities as of December 31: 2017 2016 2015 Description of Securities (Millions) Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value State and municipal obligations $ 1,369 $ 11 $ (3) $ 1,377 $ 2,019 $ 28 $ (11) $ 2,036 $ 2,813 $ 85 $ (5) $ 2,893 U.S. Government agency obligations 11 ― ― 11 12 ― ― 12 2 ― ― 2 U.S. Government treasury obligations 1,051 3 (9) 1,045 465 3 (8) 460 406 4 (1) 409 Corporate debt securities 28 ― ― 28 19 ― ― 19 29 1 ― 30 Mortgage-backed securities (a) 67 2 ― 69 92 3 ― 95 117 4 ― 121 Foreign government bonds and obligations 581 ― ― 581 486 1 (1) 486 250 6 (1) 255 Equity securities (b) 51 ― (3) 48 51 ― (2) 49 51 ― (2) 49 Total $ 3,158 $ 16 $ (15) $ 3,159 $ 3,144 $ 35 $ (22) $ 3,157 $ 3,668 $ 100 $ (9) $ 3,759 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Equity securities comprise investments in common stock and 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 December 31: 2017 2016 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses State and municipal obligations $ 157 $ (3) $ ― $ ― $ 153 $ (11) $ ― $ ― U.S. Government treasury obligations 650 (3) 175 (6) 298 (8) ― ― Equity securities ― ― 36 (2) ― ― 32 (2) Total $ 807 $ (6) $ 211 $ (8) $ 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 December 31: Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses 2017: 90%–100% 34 $ 807 $ (6) 13 $ 211 $ (8) 47 $ 1,018 $ (14) Total as of December 31, 2017 34 $ 807 $ (6) 13 $ 211 $ (8) 47 $ 1,018 $ (14) 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 wider credit spreads for speci fic issuers, adverse changes in benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were purchase d. 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 rec overy 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-than-temporary impairment during the periods presented. We ighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2017 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ 18 $ 87 $ 98 $ 1,174 $ 1,377 U.S. Government agency obligations ― ― ― 11 11 U.S. Government treasury obligations 30 879 125 11 1,045 Corporate debt securities 4 24 ― ― 28 Mortgage-backed securities (a) ― ― ― 69 69 Foreign government bonds and obligations 573 4 ― 4 581 Total Estimated Fair Value $ 625 $ 994 $ 223 $ 1,269 $ 3,111 Total Cost $ 625 $ 1,000 $ 222 $ 1,260 $ 3,107 Weighted average yields (b) 3.65 % 1.95 % 4.39 % 4.47 % 3.49 % 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. Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent. Effective January 1, 2018, the U.S. fed eral statutory tax rate was reduced to 21 percent. Refer to Note 21 for additional information. |
Asset Securitizations
Asset Securitizations | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Asset Securitizations | NOTE 6 Asset Securitizations The Company periodically securitizes Card Member loans and receivables ar ising from its card businesses through the transfer of those assets to securitization trusts. The trusts then issue debt securities collaterali zed by the transferred assets to third-party investors. Card Member loans are transferred to the American Express Credit Account Master Trust (the Lending Trust) and Card Member receivables are transferred to the American Express Issuance Trust II (the Ch arge Trust and together with the Lending Trust , the Trusts). The Trusts are consolidated by the Company. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are colla teralized by the underlying Card Member loans and receivables. Refer to Note 1 for further details on the principles of consolidation. The Company performs the servicing and key decision making for the Trusts, and therefore has the power to direct the acti vities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, the Company holds all of the variable interests in both Trusts, with the exception of the deb t securities issued to third-party investors. As of December 31, 2017 , the Company’s ownership of variable interests was $11.6 billion for the Lending Trust and $ 4.6 billion for the Charge Trust. Thes e variable interests held by the Company provide it with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these con siderations, the Company is the primary beneficiary of both Trusts and therefore consolidates b oth Trusts. The debt securities issued by the Trusts are non-recourse to the Company. The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, respectively, are available only for payment of the debt securities or o ther obligations issued or arising in the securitization transactions (refer to Note 3). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 9). The following table provides information on the restricted cash held by the Lending Trust and the Charge Trust as of December 31, 2017 and 2016 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2017 2016 Lending Trust $ 55 $ 35 Charge Trust 7 3 Total $ 62 $ 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. 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 fun ds, or, in a worst-case scenario, early amortization of debt securities. During the year ended December 31, 201 7 , no such triggering events occurred. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Other Assets | NOTE 7 Other Assets The following is a summary of Other assets as of December 31: (Millions) 2017 2016 Goodwill $ 3,009 $ 2,927 Deferred tax assets, net (a) 1,647 2,336 Tax credit investments 1,023 824 Other intangible assets, at amortized cost 899 868 Prepaid expenses 684 696 Restricted cash (b) 336 286 Derivative assets (a) 124 555 Other 2,033 2,069 Total $ 9,755 $ 10,561 Refer to Notes 14 and 21 for a discussion of derivative assets and deferre d tax assets, net, as of December 31, 2017 and 2016 . For 2017 and 2016 , $98 million and $8 1 million, respectively, of foreign deferred tax liabilities is reflected in Other liabilities. Derivative assets reflect the impact of master netting agreements and cash collateral . Includes restricted cash available to settle obligations related to certain Card Member credit balances and customer deposits, as well as coupon and maturity obligations of consolidated VIEs. Goodwill The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments and Corporate & Other were as follows: (Millions) USCS ICNS GCS GMS Corporate & Other Total Balance as of January 1, 2016 $ 122 $ 620 $ 1,715 $ 291 $ 1 $ 2,749 Acquisitions ― ― ― 201 ― 201 Dispositions ― ― ― ― ― ― Other (a) ― (16) (3) (3) (1) (23) Balance as of December 31, 2016 $ 122 $ 604 $ 1,712 $ 489 $ ― $ 2,927 Acquisitions 4 15 ― ― ― 19 Dispositions ― ― ― ― ― ― Other (a) 1 41 12 9 ― 63 Balance as of December 31, 2017 $ 127 $ 660 $ 1,724 $ 498 $ ― $ 3,009 Primarily includes foreign currency translation. Accumul ated impairment losses were $220 million as of both December 31, 201 7 and 201 6 . Other Intangible Assets The components of other intangible assets were as follows: 2017 2016 (Millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 1,863 $ (1,073) $ 790 $ 1,625 $ (895) $ 730 Other 242 (133) 109 260 (122) 138 Total $ 2,105 $ (1,206) $ 899 $ 1,885 $ (1,017) $ 868 Amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $ 207 million, $ 194 million and $ 183 million, respectively. Intangible assets acquired in 2017 and 2016 are being amortized, on average, over 6 and 7 years, respectively. Estimated amortization expense for other intangible assets over the next five years is as follows: (Millions) 2018 2019 2020 2021 2022 Estimated amortization expense $ 221 $ 183 $ 156 $ 126 $ 98 TAX CREDIT INVESTMENTS The Company accounts for its tax credit investments, including Qualified Affordable Housing (QAH) investments, using the equity method of accounting. The Company had $ 1,023 million and $ 824 million in tax credit investments as of December 31, 2017 and 2016 , respectively, included in Other assets on the Consolidated Balance Sheets , of which $1,018 million and $798 million, respectively , specifically related to QAH investments. Included in QAH inv estments as of December 31, 2017 and 201 6 , the C ompany had $933 million and $701 million, respectively, specifically related to investments in unconsolidated VIEs for which the Company does not have a controlling financial interest. As of Decembe r 31, 2017 , the Company ha d committed to provide funding related to certain of these QAH investments, which is expected to be paid between 201 8 and 20 32 , resulting in a $373 million unfunded commitment reported in Other liabilities, of which $352 millio n specifically related to unconsolidated VIEs. In addition, the Company ha d contractual off-balance sheet obligations, which were not deemed probable of being drawn, to provi de additional funding up to $66 million for these QAH investments as of De cember 31, 2017 , fully relate d to unconsolidated VIEs. During the years ended December 31, 2017 and 2016 , the Company recognized equity method losses related to its QAH in vestments of $112 million and $43 million, respectively, which were recognized in Othe r, net expenses; and associated ta x credits of $74 million and $63 million, respectively, recognized in Income tax provision. |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Customer Deposits | NOTE 8 Customer Deposits As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2017 2016 U.S.: Interest-bearing $ 63,666 $ 52,316 Non-interest-bearing (includes Card Member credit balances of: 2017, $358 million; 2016, $331 million) 395 367 Non-U.S.: Interest-bearing 34 58 Non-interest-bearing (includes Card Member credit balances of: 2017, $344 million; 2016, $285 million) 357 301 Total customer deposits $ 64,452 $ 53,042 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2017 2016 U.S. retail deposits: Savings accounts ― Direct $ 31,915 $ 30,980 Certificates of deposit: (a) Direct 290 291 Third-party (brokered) 16,684 11,925 Sweep accounts ―Third-party (brokered) 14,777 9,120 Other deposits: U.S. non-interest bearing deposits 37 36 Non-U.S. deposits 47 74 Card Member credit balances ― U.S. and non-U.S. 702 616 Total customer deposits $ 64,452 $ 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 45 months and 2.15 percent, respectively, as of December 31, 2017 . The scheduled maturities of certificates of deposit as of December 31, 2017 were as follows: (Millions) U.S. Non-U.S. Total 2018 $ 5,236 $ 20 $ 5,256 2019 4,604 ― 4,604 2020 3,674 ― 3,674 2021 1,310 ― 1,310 2022 2,150 ― 2,150 After 5 years ― ― ― Total $ 16,974 $ 20 $ 16,994 As of December 31, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2017 2016 U.S. $ 114 $ 117 Non-U.S. 11 7 Total $ 125 $ 124 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Debt Disclosure [Text Block] | NOTE 9 Debt Short-Term Borrowings The Company’s short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2017 2016 (Millions, except percentages) Outstanding Balance Year-End Stated Rate on Debt (a) Outstanding Balance Year-End Stated Rate on Debt (a) Commercial paper (b) $ 1,168 1.54 % $ 2,993 1.13 % Other short-term borrowings (c) 2,110 2.34 2,588 1.28 Total $ 3,278 2.05 % $ 5,581 1.20 % For floating-rate issuances, the stated interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2017 and 2016 . Average commercial paper outstanding was $ 1,076 million and $ 491 million in 2017 and 2016 , respectively. Includes overdrafts with banks of $ 132 million and $ 369 million as of December 31, 2017 and 2016 , respectively. In addition, balances include certain book overdrafts (i.e., primarily timing differences arising in the ordinary course of business), short-term borrowings from banks, as well as interest-bearing amounts due to merchants in accordance with merchant service agreements. The Company maintained a three -year committed, revolving, secured borrowing facility that gives the Company the right to sell up to $ 2.0 billion face amount of eligible certificates issued from the Lending Trust at any time through September 15 , 20 20 . The facility was undrawn a s of both December 31, 2017 and 2016 . The Company paid $ 9.2 million and $ 8.6 million in fees to maintain the secured borrowing facility in 2017 and 2016 , respectively. The committed facility does not contain a material adverse change clause, which might otherwise preclude borrowing u nder the facility, nor is it dependent on the Company’s credit rating. Long-term Debt The Company’s long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2017 2016 (Millions, except percentages) Original Contractual Maturity Dates Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) American Express Company (Parent Company only) Fixed Rate Senior Notes 2018 - 2042 $ 10,377 3.85 % 3.17 % $ 6,932 5.13 % 4.24 % Floating Rate Senior Notes 2018 - 2022 1,750 1.93 ― 850 1.51 ― Subordinated Notes 2024 598 3.63 2.66 598 3.63 1.92 American Express Credit Corporation Fixed Rate Senior Notes 2018 - 2027 19,652 2.24 2.27 16,201 1.98 1.44 Floating Rate Senior Notes 2018 - 2022 4,550 2.09 ― 4,350 1.52 ― American Express Centurion Bank Fixed Rate Senior Notes ― ― ― 1,306 5.99 4.83 Floating Rate Senior Notes 2018 125 1.89 ― 125 1.26 ― American Express Bank, FSB Fixed Rate Senior Notes ― ― ― 1,000 6.00 ― Floating Rate Senior Notes ― ― ― 300 0.96 ― American Express Lending Trust Fixed Rate Senior Notes 2019 - 2022 8,099 1.90 ― 3,500 1.41 ― Floating Rate Senior Notes 2018 - 2022 5,800 2.03 ― 7,025 1.20 ― Fixed Rate Subordinated Notes 2020 - 2022 206 2.21 ― - - ― Floating Rate Subordinated Notes 2018 - 2022 192 2.05 ― 316 1.34 ― American Express Charge Trust II Floating Rate Senior Notes 2018 - 2020 4,200 1.79 ― 4,200 1.12 ― Floating Rate Subordinated Notes 2018 87 2.11 ― 87 1.34 ― Other Fixed Rate Instruments (d) 2021 - 2033 23 5.59 ― 24 5.62 ― Floating Rate Borrowings 2018 - 2020 256 0.42 ― % 247 0.44 ― % Unamortized Underwriting Fees (111) (71) Total Long-Term Debt $ 55,804 2.44 % $ 46,990 2.39 % The outstanding balances include (i) unamortized discount and premium, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Under fair value hedge accounting, the outstanding balances on these fixed-rate notes are adjusted to reflect the impact of changes in fair value due to changes in interest rates. Refer to No te 14 for more details on the Company’s treatment of fair value hedges. For floating-rate issuances, the stated and effective interest rates are weighted based on the outstanding balances and rates in effect as of De cember 31, 2017 and 2016 . Effectiv e interest rates are only presented when swaps are in plac e to hedge the underlying debt. Includes $ 23 million and $ 24 million as of December 31, 2017 and 2016 , respectively, related to capitalized lease transactions. Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2017 were as follows: (Millions) 2018 2019 2020 2021 2022 Thereafter Total American Express Company (Parent Company only) $ 3,850 $ 641 $ 2,000 $ ― $ 3,525 $ 3,523 $ 13,539 American Express Credit Corporation 3,654 7,150 6,600 2,939 2,050 2,000 24,393 American Express Centurion Bank 125 ― ― ― ― ― 125 American Express Lending Trust 2,885 3,488 5,924 ― 2,001 ― 14,298 American Express Charge Trust II 1,287 ― 3,000 ― ― ― 4,287 Other 133 35 88 12 ― 12 280 $ 11,934 $ 11,314 $ 17,612 $ 2,951 $ 7,576 $ 5,535 $ 56,922 Unamortized Underwriting Fees (111) Unamortized Discount and Premium (825) Impacts due to Fair Value Hedge Accounting (182) Total Long-Term Debt $ 55,804 The Company maintained a bank line of credit of $ 3.5 billion and $ 3.0 billion as of December 31, 2017 and 2016 , respectively, all of which was undrawn as of the respective dates. These undrawn amounts support contingent funding needs. The availability of the credit line is subject to the Company’s compliance with certain financial covenants, principally the maintenance by American Express Credit Corporation (Credco) of a 1.25 ratio of combined earnings and fixed charges, to fixed charges. As of December 31, 2017 and 2016 , the Company was not in violation of any of its debt covenants. Additionally, the Company maintained a three -year committed, revolving, secured borrowing facility that gives the Compan y the right to sell up to $ 3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2020 . A s of both December 31, 2017 and 2016 , $ 3.0 billion was drawn on this facility. The Company paid $ 16.3 million and $ 11.5 million in fees to maintain these lines in 2017 and 2016 , respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit faci lities, nor are they dependent on the Company’s credit rating. The Company paid total interest, primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits, of $ 2.0 billion, $ 1.7 billion and $ 1.6 billion in 2017 , 2016 and 2015 , respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Other Liabilities Disclosure [Text Block] | NOTE 10 Other Liabilities The following is a summary of Other liabilities as of December 31: (Millions) 2017 2016 Membership Rewards liability $ 7,751 $ 7,060 Book overdraft balances 2,837 2,255 Employee-related liabilities (a) 2,277 2,055 Repatriation tax liability (b) 1,703 ― Card Member rebate and reward accruals (c) 1,564 1,382 Deferred card and other fees, net 1,554 1,411 Other (d) 4,462 4,614 Total $ 22,148 $ 18,777 Employee-related liabilities include employee benefit plan obligations and incentive compensation. Refer to Note 21 for additional information. Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. Other includes accruals for general operating expenses, client incentives, merchant rebates, payments to third-party ca rd-issuing partners, marketing and promotion, restructuring and reengineering reserves, QAH unfunded commitments and derivatives. Membe rship Rewards The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad range of rewards including travel, shopping, gift cards, and covering eligible charges . The Company records a balance sheet liability th at represents management’s best estimate of the cost of points earned that are expected to be redeemed in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are key assumptions used to estimate the Membership Rewar ds liability. The expense for Membership Rewards points is included in Card Member rewards expense. The Company periodically evaluates its liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner contract changes and other factors. Deferred Card and Other Fees, Net The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, was as follows: (Millions) 2017 2016 Deferred card and other fees (a) $ 1,996 $ 1,767 Deferred direct acquisition costs (280) (204) Reserves for membership cancellations (162) (152) Deferred card and other fees, net $ 1,554 $ 1,411 Includes deferred fees for Membership Rewards program participants. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 11 Stock Plans Stock Option and Award Programs Under the 2016 Incentive Compensation Plan and previously under the 2007 Incentive Compensation Plan, awards may be granted to employees and other key individuals who perform services for the Company and its participating subsidiaries. These awards may be in the form of stock options, restricted stock awards or units (RSAs /RSUs ), portfolio grants (PGs) or other incentives, and similar awards designed to meet the requirements of non-U.S. jurisdi ctions. For the Company’s Incentive Compensation Plans, there were a total of 14 million, 17 million and 33 million common shares unissued and available for grant as of December 31, 2017 , 2016 , and 2015 , respectively, as authorized by the Company’s Board of Directors and shareholders. A summary of stock option and RSA /RSU activity as of December 31, 2017 , and changes during the year , is presented below: Stock Options RSAs/RSUs (Shares in thousands) Shares Weighted-Average Exercise Price Shares Weighted- Average Grant Price Outstanding as of December 31, 2016 10,272 $ 47.68 7,500 $ 69.22 Granted 869 87.19 2,670 77.80 Exercised/vested (3,766) 34.48 (2,335) 75.85 Forfeited (102) 67.57 (620) 68.80 Expired (11) 86.11 ― ― Outstanding as of December 31, 2017 7,262 58.92 7,215 $ 70.29 Options vested and expected to vest as of December 31, 2017 7,194 58.86 Options exercisable as of December 31, 2017 3,399 $ 45.93 The Company recognizes the cost of employee stock awards granted in exchange for employee services based on the grant-date fair value of the award, net of expected forfeitures. Those costs are recognized ratably over the vesting period. Stock Options Each stock option has an exercise price equal to the market price of the Company’s common stock on the date of grant. Stock options generally vest 100 percent on the third anniversary of the grant date and have a contractual term of 10 years from the date of grant. The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of the Company’s stock exceeds the exercise price of the option) of the stock options outstanding, exercisable, vested, and expe cted to ve st as of December 31, 2017 , we re as follows: Outstanding Exercisable Vested and Expected to Vest Weighted-average remaining contractual life (in years) 5.8 3.1 5.7 Aggregate intrinsic value (millions) $ 293 $ 181 $ 291 The intrinsic value of options exercised during 2017 , 2016 and 2015 was $ 197 million, $ 51 million and $ 87 million, respectively, (based upon the fair value of the Company’s stock price at the date of exercise). Cash received from the exercise of stock options in 2017 , 2016 and 2015 was $ 130 million, $ 175 million and $ 146 million, respectively. Effecti ve January 1, 2017, the Company adopted new accounting guidance for employee share-based payments and accordingly, income tax benefits related to stock-based incentive arrangements were recognized in the Company’s Consolidated Statements of Income in the a mount of $ 59 million for the year ended December 31, 2017. Previously, such benefits were recorded in additional paid-in capital. The tax benefit realized from income tax impacts of stock option exercises, which was recorded in additional paid-in ca pital, in 2016 and 2015 was $ 4 million and $ 18 million, respectively. The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions wer e used for options granted in 2017 , 2016 and 2015 : 2017 2016 2015 Dividend yield 1.8 % 1.9 % 1.1 % Expected volatility (a) 24 % 25 % 37 % Risk-free interest rate 2.3 % 1.5 % 1.7 % Expected life of stock option ( in years ) (b) 6.9 6.3 6.7 Weighted-average fair value per option $ 18.18 $ 13.67 $ 29.20 The expected volatility is based on both weighted historical and implied volatilities of the Company’s common stock price. The expected life of stock options was determined using both historical data and expectations of option exercise behavior. On October 31, 2017, certain senior executives were awarded stock options with a term of seven years, and include a three-year service condition, as well as performance and market conditions. Therefore, the fair values of these options were estimated at the g rant date using a Monte Carlo Valuation model with the following assumptions: October 31, 2017 Dividend yield 1.58 % Expected volatility (a) 21.41 % Risk-free interest rate 2.26 % Expected life of stock option ( in years ) 7 Fair value per option $ 19.18 The expected volatility is based on both weighted historical and implied volatilities of the Company’s common stock price. Restricted Stock Awards and units RSAs/RSUs are valued based on the stock price on the date of grant and contain either a) service conditions or b) both service and performance conditions. RSAs/RSUs containing only service conditions generally vest 25 percent per year beginning with the fi rst anniversary of the grant date. RSAs/RSUs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics. All RSA/ RSU holders receive non-forfeitable dividends or dividend equivalents. The total fair value of shares vested during 2017 , 2016 and 2015 , was $ 180 million, $ 171 million and $ 247 million, respectively (based upon the Company’ s stock price at the vesting date). The weighted-average grant date fair value of RSAs/RSUs granted in 2017 , 2016 and 2015 was $ 77.80 , $ 55.55 and $ 81.99 , respectively. Liability-based Awards Certain employees are awarded PGs and ot her incentive awards that can be settled with cash or equity shares at the Company’s discretion, and final Compensation and Benefits Committee payout approval. These awards earn value based on performance, market and/or service conditions, and vest over pe riods of one to three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. Cash paid upon vesting of these awards in 2017 , 2016 and 2015 was $ 48 million, $ 41 million and $ 74 million, respectively. Summary of Stock Plan Expense The components of the Company’s total stock-base d compensation expense (net of forfeitures) for the years ended December 31 are as follows: (Millions) 2017 2016 2015 Restricted stock awards (a) $ 170 $ 178 $ 190 Stock options (a) 21 14 12 Liability-based awards 92 60 32 Total stock-based compensation expense (b) $ 283 $ 252 $ 234 As of December 31, 2017 , the total unrecognized compensation cost related to unvested RSAs /RSUs and options of $ 178 million and $ 21 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 2.1 years . The total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation arrangements for the years ended December 31, 2017 , 2016 and 2015 was $ 102 million, $ 89 million and $ 83 million, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Retirement Plans | NOTE 12 Retirement Plans Defined Contribution Retirement Plans The Company sponsors defined contribution retirement plans, the principal plan being the Retirement Savings Plan (RSP), a 401(k) savings plan with a profit-sharing component. The RSP is a tax-qualified retirement plan subject to the Employee Retirement Income Securit y Act of 1974 and covers most employees in the United States. The total expense for all defined contribution retirement plans globally was $ 349 million, $ 234 million and $ 224 million in 2017 , 2016 and 2015 , respect ively. Defined Benefit Pension and other postretirement benefit Plans The Company’s primary defined benefit pension plans that cover certain employees in the United States and United Kingdom are closed to new entrants and existing participants do not accr ue any additional benefits. Most employees outside the United States and United Kingdom are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. The Company complies with minimum funding requirements in all countries. The Company sponsors unfunded other postretirement benefit plans that provide health care and life insurance to certain retired U.S. employees. The total expense f or these plans was $ 25 million, $ 24 million and $ 23 million in 2017 , 2016 and 2015 , respectively. The Company recognizes the funded status of its defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the Consolidated Balance Sheets. As of December 31, 2017 and 2016 , the funded status related to the defined benefit pension plans and other postretirement benefit plans was underfunded by $ 626 million and $ 700 million, respectively, and is recorded in Other liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Commitments and Contingencies | NOTE 13 Contingencies and commitments 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 I, Item 3. “Legal Proceedings . ” In additio n to the matters disclosed under “Legal Proceedings,” the Company is being challenged in a number of countries regarding its application of value-added taxes (VAT) to certain of its international transactions, which are in various stages of audit, or are b eing 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, the tax authorities may determine that the Company owes additional VA T. 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 cases brought by a single plaintiff to class actions with millions of p utative class members. These legal proceedings involve various lines of business of the Company and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of w hich 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 unspecified amount of damages or are at very early stages of the legal p rocess. 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 factu al 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 able to estimate an amount of loss or a range of possible loss. The Company has recorded reserves for certain of its outstanding legal proceedings. A reserve is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed est imated 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 n o such reserve, and for which the Company is able to estimate a range of possible loss, the current estimated range is zero to $ 500 million in excess of any reserves related to those matters. This range represents management’s estimate based on currently available information and does not represent the Company’s maximum loss exposure; actual results may vary significantly. As such leg al proceedings evolve, the Company may need to increase its range of possible loss or reserves. Based on its current knowledge, and taking into consideration its litigation-related liabilities, the Company believes it is not a party to, nor are any of its properties the subject of, any legal proceeding that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, it is possible that the outcome of le gal proceedings, including the possible resolution of merchant claims, could have a material impact on the Company’s results of operations . COMMITMENTS The Company leases certain facilities and equipment under non-cancelable and cancelable agreements, for which total rental expense was $ 151 million, $ 169 million and $ 187 million in 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the minimum aggregate rental commitment under all non-cancelable operating leases (net of subleases of $ 20 million) was as follows: (Millions) 2018 $ 131 2019 124 2020 98 2021 72 2022 57 Thereafter 831 Total $ 1,313 As of December 31, 2017 , the Company’s future minimum lease payments under capital leases or other similar arrangements is approximately $ 4 million per annum in 201 8 through 202 0 , $ 2 million in 202 1, $ 1 million in 2022 and $ 10 million in aggregate thereafter. As of December 31, 2017, the Company had $5.6 billion in commitments related to agreements with certain cobrand partners under which it makes payments based primarily on the amount of Card Member spending and corresp onding rewards earned on such spending and, under certain arrangements, on the number of accounts acquired and retained . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Derivatives and Hedging Activities | NOTE 14 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 re ason, are an integral component of the Company’s market risk management. The Company does not transact in derivatives for trading purposes. Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. The Com pany’s market risk exposures include: Interest rate risk due to changes in the relationship between interest rates on the Company’s assets (such as loans, receivables and investment securities) and interest rates on the Company’s liabilities (such as debt and deposits); and Foreign exchange risk related to earnings, funding, transactions and investments in currencies other than the U.S. dollar. The Company centrally monitors market risks using market risk limits and escalation triggers as defined in its As set/Liability Management Policy. The Company’s market exposures are in large part byproducts of the delivery of its products and services. Interest rate risk primarily arises through the funding of Card Member receivables and fixed-rate loans with variabl e-rate borrowings, as well as through the risk to net interest margin from changes in the relationship betwee n benchmark rates such as Prime, LIBOR and the overnight indexed swap rate . Interest rate exposure within the Company’s charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt and deposits compared to fixed-rate debt and deposits. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations, or to convert variable-rate debt obligations to fixed-rate obligations. The Company may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, amon g other factors. Foreign exchange risk is generated by Card Member cross-currency charges, foreign currency balance sheet exposures, foreign subsidiary equity and foreign currency earnings in entities outside the United States. The Company’s foreign excha nge risk is managed primarily by entering into agreements to buy and sell currencies on a spot basis or by hedging this market exposure, to the extent it is economically justified, through various means, including the use of derivatives such as foreign exc hange forwards and cross-currency swap contracts. Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to, an uncollateralized derivative exposur e. The Company manages this risk by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors a s the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required to be pre-approved by the Company and rated as investment grade, and counterparty risk exposures are centrally monitored. Additionally, in order to mitigate the bilateral counterparty credit risk associated with derivatives, the Company has in certain instances entered into master netting agreements with its derivative counterparties, which provide a right of offset for certain exposures b etween the parties. A majority of the Company’s derivative assets and liabilities as of December 31, 2017 and 2016 are subject to such master netting agreements with its derivative counterparties, and there are no instances in which management makes an accounting policy election to not net assets and liabilities subject to an enforceable master netting agreement on the Company’s Consolidated Balance Sheets. To further mitigate bilateral counterparty credit risk, the Company exercises its rights under executed credit support agreements with certain of its derivative counterparties. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts. In relation to the Company’s credit risk, under the term s of the derivative agreements it has with its various counterparties, 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. The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. Based on its assessment of the credit risk of the Company’s derivative counterparties as of December 31, 2017 an d 2016 , no credit risk adjustment to the derivative portfolio was required. The Company’s derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and t he resulting hedge designation, if any, as discussed below. Refer to Note 15 for a description of the Company’s methodology for determining the fair value of derivatives. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: 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) $ 11 $ 111 $ 34 $ 69 Net investment hedges - Foreign exchange contracts 117 347 89 35 Total derivatives designated as hedging instruments 128 458 123 104 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 82 308 95 176 Total derivatives, gross 210 766 218 280 Less: Cash collateral netting (c) (d) (6) (54) (45) (68) Derivative asset and derivative liability netting (e) (80) (157) (80) (157) Total derivatives, net $ 124 $ 555 $ 93 $ 55 Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement pay ments, as opposed to collateral. As of December 31, 2017 , there was no unsettled derivative asset or liability with the CCP. 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 fore ign currency derivatives embedded in certain operating agreements . Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to reclaim cash collateral or the obligation to return cash collateral. The Company held no non-cash collateral as of December 31, 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, wit h a fair value of $18 million , none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $537 million as of December 31, 2016 , but did not reduce the net exposure on the Company’s Consolidated Balance Sheets. Addition ally, the Com pany posted $146 million and $16 9 million as of December 31, 2017 and 2016 , respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance She ets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. Derivative Financial Instruments That Qualify For Hedge Accounting Derivatives executed for hedge accounting purposes are documented and designated as such when the Company enters into the contracts. In accordance with its risk management policies, the Company structures its hedges with terms similar to those of the item being hedged. The Company formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, the Company will discontinue the application of hedge accounting. Fair Value Hedges A fair value hedge involves a derivative designated to hedge the Company’s exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof, that is attributabl e to a particular risk. Interest Rate Contracts 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 hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating in terest rate. The Company has $23.8 billion and $ 17.7 billion of fixed-rate debt obli gations designated in fair value hedging relationships as of December 31, 2017 and 2016 , respectively. To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to th e hedged risk. Any difference between the changes in the fair value of the derivative and the changes in the hedged item is referred to as hedge ineffectiveness and is reported as a component of Other expenses. Hedge ineffectiveness may be caused by differ ences between a debt obligation’s interest rate and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the fair value of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in 1-month LIBOR, 3-month LIBOR and the overnight indexed swap rate, as spreads between these rates impact the fair value of the interest rate swap without causing an exact offsetting impact to the fair value of the hedged debt. For the periods presented, the Company considers all fair value hedges to be highly effective and did not de-designate any fair value hedge relationships. The following table summarizes the gains (losses) recognized in Other expenses associated with the Company’s fair value hedges for the year ended December 31 : (Millions) 2017 2016 2015 Other expenses: Interest rate derivative contracts $ (246) $ (184) $ (83) Hedged items 206 163 93 Net hedge ineffectiveness (losses) gains $ (40) $ (21) $ 10 The Company also recognized a net reduction in interest expense on long-term debt of $ 133 million, $ 224 million and $ 284 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, primarily related to the net settlements (interest accruals) on the Company’s interest rate derivatives designated as fair value hedges. Net Investment Hedges A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation . The Company primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to change s in currency exchange rates on the Company’s investments in non-U.S. subsidiaries. The effective portion of the gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulati ve translation adjustment, was a loss of $370 mil l ion and gains of $ 281 million and $ 577 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, with any ineffective portion recognized in Other exp enses during the period . T he net hedge in effectiveness recognized was nil for the year s ended December 31, 2017 and December 31, 2016 , and a gain of $1 million for the year ended December 31, 2015 . Accumulated losses within AOCI of $31 million, $5 million and nil for the years ended December 31, 2017 , 2016 and 2015, respective ly, were reclassified to Other e xpenses upon i nvestment sales or liquidations . Derivatives Not Designated As Hedges The Company has derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes . Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, prima rily foreign exchange forwards . These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified d ate. The Company also has certain operating agreements containing payments that may be linked to a market rate or price, primarily foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in whi ch case the embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. The changes in the fair value of derivatives that are not designated as hedges are intended to offset the rela ted 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 exposures resulted in a net loss of $29 million for the year ended December 31, 2017 and net gains of $1 million and $83 million for t he years ended December 31, 2016 and 2015 , respectively, and are recognized in Other expenses. The changes in the fair value of an embedded derivative was nil for the year ended December 31, 2017 and res ulted in gains of $9 million and $5 million for t he years ended December 31, 2016 and 2015 , respectively, and are recognized in Card Member services and other expense s . |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Fair Values | NOTE 15 Fair Values Fair value is defined as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or, in the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 ― Inputs that are quoted prices ( unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantiall y the full term of the asset or liability, including: - Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in markets that are not active; - Inputs other than quoted pri ces that are observable for the asset or liability; and - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 ― Inputs that are unobservable and reflect the Company’s own estimates a bout the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company did not measure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2017 and 2016 , although the disclosed fair valu e of certain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3. The Company monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and ou t of the levels of the fair value hierarchy, the Company discloses the fair value measurement at the beginning of the reporting period during which the transfer occurred. For the years ended December 31, 2017 and 2016 , there were no significant trans fers between levels. 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 described in the preceding paragraphs), as of December 31 : 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 $ 48 $ 1 $ 47 $ ― $ 49 $ 1 $ 48 $ ― Debt securities 3,111 1,045 2,066 ― 3,108 460 2,648 ― Derivatives (a) 210 ― 210 ― 765 ― 765 ― Total Assets 3,369 1,046 2,323 ― 3,922 461 3,461 ― Liabilities: Derivatives (a) 218 ― 218 ― 280 ― 280 ― Total Liabilities $ 218 $ ― $ 218 $ ― $ 280 ― 280 ― Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated basis. Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above) the Company applies the following valuation techniques: Investment Securities When available, quoted prices of identical investment securities in active markets are used to estimate fair value. Such investment securities are classified within Level 1 of the fair value hierarchy. When quoted prices of identical investment securities in active markets are not available, the fair values for the Company’s investment securities are obtained primarily from pricing services engaged by the Company, and the Company receives one price for each security. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such investmen t securities are classified within Level 2 of the fair value hierarchy. The inputs to the valuation techniques applied by the pricing services vary depending on the type of security being priced but are typically benchmark yields, benchmark security prices , credit spreads, prepayment speeds, reported trades and broker-dealer quotes, all with reasonable levels of transparency. The pricing services did not apply any adjustments to the pricing models used. In addition, the Company did not apply any adjustments to prices received from the pricing services. The Company reaffirms its understanding of the valuation techniques used by its pricing services at least annually. In addition, the Company corroborates the prices provided by its pricing services by compari ng them to alternative pricing sources. In instances where price discrepancies are identified between different pricing sources, the Company evaluates such discrepancies to ensure that the prices used for its valuation represent the fair value of the under lying investment securities. Refer to Note 5 for additional fair value information. Derivative Financial Instruments The fair value of the Company’s derivative financial instruments is estimated internally by using third-party pricing models , where the in puts to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. The Company reaffirms its understanding of the valuation tec hniques at least annually and validates the valuation output on a quarterly basis . The Company’s derivative instruments are classified within Level 2 of the fair value hierarchy. The fair value of the Company’s interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. Credit valuation adju stments are necessary when the market parameters, such as a benchmark curve, used to value derivatives are not indicative of the credit quality of the Company or its counterparties. The Company considers the counterparty credit risk by applying an observab le forecasted default rate to the current exposure. Refer to Note 14 for additional fair value information. 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 December 31, 2017 and 2016 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2017 and 2016 , and require management’s judgment. These figu res may not be indicative of future fair values, nor can the fair value of the Company be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2017 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 33 $ 33 $ 32 $ 1 $ ― Other financial assets (b) 57 57 ― 57 ― Financial assets carried at other than fair value Loans, net (c) 74 75 ― ― 75 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 76 76 ― 76 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 17 17 ― 17 ― Long-term debt (c) $ 56 $ 57 $ ― $ 57 $ ― 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 $ 8.9 billion and $ 8.8 billion held by a consolidated VIE as of December 31, 2017 and 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 $ 25.6 billion and $ 26.0 billion as of Dece mber 31, 2017 and 2016 , respectively, and the fair values of long-term debt were $ 18.6 billion and $ 15.2 billion as of December 31, 2017 and 2016 , respectively. Presented as a component of customer deposits on the Consolidated B alance Sheets. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2017 , and require management judgment. These figures may not be indicative of future fair values. The fair value of the Company cannot be reliably estimated by aggregating the amounts presented. Valuation Techniques Used in the Fair Value Measurement of Financial A ssets and Financial Liabilities Carried at Other Than Fair Value For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table) the Company applies the followi ng valuation techniques to measure fair value: Financial Assets For Which Carrying Values Equal Or Approximate Fair Value Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivables , accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Assets Carried At Other Than Fair V alue Loans, net Loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for the Company’s loans the Company uses a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar loans and the lack of observable pricing inputs thereof, the Company uses various inputs derived from an equivalent securitization market to estimate fair value. Such inputs include projected income, pay-down rates, discount rates , relevant credit costs and cost of funding assumptions . The valuation does not include economic value attributable to future receivables generated by the accounts associated with the loans. Financial Liabilities For Which Carrying Values Equal Or Approxima te Fair Value Financial liabilities for which carrying values equal or approximate fair value include accrued interest, customer deposits (excluding certificates of deposit, which are described further below), Travelers Cheques and other prepaid products o utstanding, accounts payable, short-term borrowings and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Liabil ities Carried At Other Than Fair Value Certificates of Deposit Certificates of deposit (CDs) are recorded at their historical issuance cost on the Consolidated Balance Sheets. Fair value is estimated using a discounted cash flow methodology based on the f uture cash flows and the discount rate that reflects the current market rates for similar types of CDs within similar markets. Long-term Debt Long-term debt is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for the impact of fair value hedge accounting on certain fixed-rate notes and current translation rates for foreign-denominated debt. The fair value of the Company’s long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flows of each instrument at rates currently observed in publicly-traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly traded debt markets of similar terms and comparable credit risk, the Company uses market interest rates and adjusts those rates for necessary risks, inclu ding its own credit risk. In determining an appropriate spread to reflect its credit standing, the Company considers credit default swap spreads, bond yields of other long-term debt offered by the Company, and interest rates currently offered to the Compan y for similar debt instruments of comparable maturities. Nonrecurring Fair Value Measurements The Company has certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subse quent to their initial recognition is applicable if determined to be impaired. During the year s ended December 31, 2017 and 2016 , the Company did not have any material assets that were measured at fair value due to impairment. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Guarantees | NOTE 16 Guarantees As of December 31 , 2017, the maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by the Company in the ordinary course of business were $1 billion and $52 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 the Company’s Card Member protection plans were included as of December 31, 2016, in addition to its real estate and business dispositions. To date , the Company has not experienced any significant losses related to guarantees or indemnification s. The Company’s recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. |
Common and Preferred Shares and
Common and Preferred Shares and Warrants | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Common And Preferred Shares And Warrants [Text Block] | NOTE 17 Common and Preferred Shares The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2017 2016 2015 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 904 969 1,023 Repurchases of common shares (50) (70) (59) Other, primarily stock option exercises and restricted stock awards granted 5 5 5 Shares issued and outstanding as of December 31 859 904 969 Of the common shares authorized but unissued as of December 31, 2017 , approximately 29 million shares are reserved for issuance under employee stock and employee benefit plans. On September 26, 2016 , the Board of Directors authorized the repurchase of 150 million of common shares over time in accordance with the Company’s capital distribution plans submitted to the Board of Governors of the Federal Reserve System (the Federal Reserve) and subject to market conditions. This authorizati on replaces all prior repurchase authorizations. During 2017 , 2016 and 2015 , the Company repurchased 50 million common shares with a cost basis of $ 4.3 billion, 70 million common shares with a cost basis of $ 4.4 bill ion, and 59 million common shares with a cost basis of $4. 5 billion, respectively. The cost basis includes commissions paid of $ 2.9 million, $ 1.2 million and $1. 1 million in 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the Company had approximately 85 million common shares remaining under the Board share repurchase authorization. Such authorization does not have an expiration date. Common shares are generally retired by the Company upon repurchase (except for 2.9 million, 3.0 million and 3.0 million shares held as treasury shares as of December 31, 2017 , 2016 and 2015 , respectively); retired common shares and treasury shares are excluded from the shares outstanding in the t able above. The treasury shares, with a cost basis of $ 217 million, $ 197 million and $ 242 million as of December 31, 2017 , 2016 and 2015 , respectively, are included as a reduction to additional paid-in capital in shar eholders’ equity on the Consolidated Balance Sheets. PREFERRED SHARES The Board of Directors is authorized to permit the Company to issue up to 20 million Preferred Shares at a par value of $1.66 2/3 without further shareholder approval. The Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31, 2017 : Series B Series C Issuance date November 10, 2014 March 2, 2015 Securities issued 750 Preferred Shares; represented by 750,000 depositary shares 850 Preferred Shares; represented by 850,000 depositary shares Aggregate liquidation preference $750 million $850 million Fixed dividend rate per annum 5.20% 4.90% Semi-annual fixed dividend payment dates Beginning May 15, 2015 Beginning September 15, 2015 Floating dividend rate per annum 3 month LIBOR+ 3.428% 3 month LIBOR+ 3.285% Quarterly floating dividend payment dates Beginning February 15, 2020 Beginning June 15, 2020 Fixed to floating rate conversion date (a) November 15, 2019 March 15, 2020 The date on which dividends convert from a fixed-rate calculation to a floating rate calculation. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Company, the preferred stock then outstanding takes precedence over the Company’s common stock for the payment of dividends and the distribution of assets out of funds legally available for distribution to shareholders. Each outstanding series of Preferred Shares has a liquidation price of $1 million per Preferred Sha re, plus any accrued but unpaid dividends. The Company may redeem these Preferred Shares at $1 million per Preferred Share (equivalent to $1,000 per depositary share) plus any declared but unpaid dividends in whole or in part, from time to time, on any div idend payment date on or after the respective fixed to floating rate conversion date, or in whole, but not in part, within 90 days of certain bank regulatory changes. There were no warrants issued and outstanding as of December 31, 2017 , 2016 and 2015 . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Changes in Accumulated Other Comprehensive (Loss) Income | NOTE 18 Changes in Accumulated Other Comprehensive Income AOCI is a balance sheet item in the Shareholders’ Equity section of the Company’s Consolidated Balance Sheets. It 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 years ended December 31 were as follows: (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2014 $ 96 $ (1,499) $ (516) $ (1,919) Net unrealized losses (37) ― ― (37) Decrease due to amounts reclassified into earnings (1) (1) ― (2) Net translation loss of investments in foreign operations ― (1,122) ― (1,122) Net gains related to hedges of investments in foreign operations ― 578 ― 578 Pension and other postretirement benefit ― ― (32) (32) Net change in accumulated other comprehensive loss (38) (545) (32) (615) Balances as of December 31, 2015 58 (2,044) (548) (2,534) Net unrealized losses (45) ― ― (45) (Decrease) increase due to amounts reclassified into earnings (6) 4 ― (2) Net translation loss of investments in foreign operations ― (503) ― (503) Net gains related to hedges of investment in foreign operations ― 281 ― 281 Pension and other postretirement benefit ― ― 19 19 Net change in accumulated other comprehensive (loss) income (51) (218) 19 (250) Balances as of December 31, 2016 7 (2,262) (529) (2,784) Net unrealized losses (7) ― ― (7) Decrease due to amounts reclassified into earnings ― (7) ― (7) Net translation gain of investments in foreign operations (a) ― 678 ― 678 Net losses related to hedges of investment in foreign operations ― (370) ― (370) Pension and other postretirement benefit ― ― 62 62 Net change in accumulated other comprehensive (loss) income (7) 301 62 356 Balances as of December 31, 2017 $ ― $ (1,961) $ (467) $ (2,428) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 21) . The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2017 2016 2015 Investment securities $ (4) $ (27) $ (20) Foreign currency translation adjustments (a) (172) (15) (124) Net investment hedges (215) 139 340 Pension and other postretirement benefit 7 37 ― Total tax impact $ (384) $ 134 $ 196 (a) Includes $289 mi llion of recognized tax benefits in the year ended December 31, 2017 (r efer to Note 21 ). The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the years ended December 31 : Gains (losses) recognized in earnings Description (Millions) Income Statement Line Item 2017 2016 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ ― $ 9 Related income tax expense Income tax provision ― (3) Reclassification to net income related to available-for-sale securities ― 6 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related net investment hedges Other expenses (7) (4) Related income tax benefit Income tax provision 14 ― Reclassification to net income related to foreign currency translation adjustments 7 (4) Total $ 7 $ 2 |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Non-Interest Revenue and Expense Detail | NOTE 19 Non-interest revenue and expense detail The following is a detail of Other fee s and commissions for the years ended December 31: (Millions) 2017 2016 2015 Delinquency fees $ 888 $ 762 $ 788 Foreign currency conversion fee revenue 851 809 852 Loyalty coalition-related fees 453 410 379 Travel commissions and fees 354 338 349 Service fees 309 291 361 Other (a) 167 143 137 Total Other fees and commissions $ 3,022 $ 2,753 $ 2,866 Other primarily includes fees related to Membership Rewards programs. The following is a detail of Other revenues for the years ended December 31: (Millions) 2017 2016 2015 Global Network Services partner revenues $ 615 $ 654 $ 640 Other (a) 1,117 1,375 1,393 Total Other revenues $ 1,732 $ 2,029 $ 2,033 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, Prepaid card and Travelers Cheque -related revenues, revenues related to the GBT JV transition services agreemen t, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees . The following is a detail of Other expenses for the years ended December 31: (Millions) 2017 2016 2015 Professional services $ 2,070 $ 2,583 $ 2,750 Occupancy and equipment 2,019 1,838 1,854 Communications 276 302 345 Gain on sale of HFS portfolios (a) ― (1,218) ― Other (b) 1,411 1,657 1,844 Total Other expenses $ 5,776 $ 5,162 $ 6,793 Refer to Note 2 for additional information. Other expense primarily inclu des general operating expenses, goodwill and technology impairment costs (refer to Note 2), Card and merchant-related fraud losses, foreign cu rrency-related gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the year ended December 31, 2015) and insurance costs . In addition, b eginning December 1, 2015 through to the po rtfolio sale completion dates, i nclude d the valuation allowance adjustment associated with the HFS portfolios. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Restructuring Charges | NOTE 20 Restructuring The Company initiates restructuring programs to support new business strategies and to enhance its overall effectiveness and efficiency. In connection with these programs, the Company typically will incur severance and other exit costs. The following table summarizes the Company’s restructuring reserves activity for the years ended December 31, 2017 , 2016 and 2015 : (Millions) Severance Other (a) Total Liability balance as of December 31, 2014 $ 435 $ 35 $ 470 Restructuring charges, net of $61 in revisions (b) (33) 7 (26) Payments (141) (14) (155) Other non-cash (c) (23) (5) (28) Liability balance as of December 31, 2015 238 23 261 Restructuring charges, net of $81 in revisions (b) 305 24 329 Payments (171) (21) (192) Other non-cash (c) (12) (3) (15) Liability balance as of December 31, 2016 360 23 383 Restructuring charges (d) 34 8 42 Payments (219) (16) (235) Other non-cash (c) 11 (2) 9 Liability balance as of December 31, 2017 (e) $ 186 $ 13 $ 199 Other primarily includes facility exit and contract termination costs. Revisions primarily relate to higher than anticipated redeployments of displaced employees to other positions within the Company, business changes and modifications to existing initiatives. Consists primarily of foreign exchange impacts and other non-cash charges. Net revisions to existing restructuring reserves were immaterial for the year ended December 31, 2017. The majority of cash payments related to the remaining restructu ring liabilities are expected to be completed in 2018, and to a lesser extent certain contractual long-term severance arrangements and lease obligations are expected to be completed in 2019 and 2023, respectively. Restructuring charges related to severance obligations are included in salaries and employee benefits in the Company’s Consolidated Statements of Income, while charges pertaining to other exit costs are included in occupancy and equipment and other expenses. The following table summarizes the Comp any’s restructuring charges, net of revisions, by reportable operating segment and Corporate & Other for the year ended December 31, 2017 , and the cumulative amounts relating to the restructuring programs that were in progress during 2017 and initiat ed at various dates between 2011 and 2017 . 2017 Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs (Millions) Total Restructuring Charges, net revisions Severance Other Total USCS $ (8) $ 54 $ ― $ 54 ICNS (6) 132 ― 132 GCS (10) 85 8 93 GMS 5 40 ― 40 Corporate & Other 61 322 81 403 (a) Total $ 42 $ 633 $ 89 $ 722 (b) Corporate & Other includes certain sev erance and other charges of $336 million related to c ompanywide support functions which were not allocated to the Company’s reportable operating segments, as these were corporate initiatives, which is consistent with how such charges were reported internally. As of December 31, 2017 , the total expenses to be incurred for previously approved restructuring activities that were in progress are not expected to be materially different than the cumulative expenses incurred to date for these programs. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Income Taxes | NOTE 21 Income Taxes T he Tax Act , enacted by the U.S. government on December 22, 2017, makes broad and complex changes to the U.S. tax code which will requir e time to interpret . The SEC issued Staff Accounting Bulletin No. 118 (SAB 118) in December, 2017, to provide guidance on accounting for the effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the Tax Act enactment date for companies to complete their assessment of and accounting for those effects of the Tax Act required under ASC 740 “Implementation Guidance on Accounting for Uncertainty in Income Taxes” to be reported in the period of enactment. Under SAB 118, a company must first reflect the income tax effects of the Tax Act for which the accounting is com plete in the period of the date of enactment. To the extent the accounting for other income tax effects is incomplete, but a reasonable estimate can be determined, companies must record a provisional estimate to be included in their financial statements. For any income tax effect for which a reasonable estimate cannot be determined, an entity must continue to apply ASC 740 based on the provisions of the tax laws in effect immediately prior to the Tax Act being enacted until such time as a reasonable estima te can be determined. The Company has recorded a discrete net charge of $2.6 billion in the period ended December 31, 2017 related to the Tax Act. For the reasons stated below, the Company requires additional time to complete its analysis of the impacts of the Tax Act and therefore its accounting for the Tax Act is provisional. Impacts of Deemed Repatriation: The Tax Act imposed a one-time transition tax on unrepatriated post-1986 accumulated earnings and profits of certain foreign subsidiaries (E&P). To calculate this tax, the Company must determine the cumulative amount of E&P, as well as the amount of foreign taxes paid on such earnings. In addition, the Company made a decision to no longer assert that the accumulated post-1986 E&P of its non-U.S. su bsidiaries that are subject to this on e -time transition tax are intended to be permanently reinvested outside t he United States. As a result, the Company record ed a deferred tax liability for the state income and foreign withholding tax consequences of any future cash dividends paid from such E&P. The Company has recorded reasonable estimates based on data available for both the deemed repatriati on tax for 2017 of $1.7 billion and the deferred state income and foreign withholding taxes on potential future d istributions of these earnings of $0.3 billion. Until the Company fully completes its analysis, the accounting for these items is provisional. Remeasurement of Deferred Tax Assets and Liabilities: The Company has recorded a deferred charge of $0.6 billion related to the remeasurement of its U.S. federal net deferred tax assets for 2017. This charge reflects the change in the corporate tax rate from 35 percent to 21 percent, effective January 1, 2018, as well as other provisions of the Tax Act. Certain comp onents of the remeasurement are reasonable estimates based on available information. Until the Company fully completes its analysis of all components, the accounting for the remeasurement of the Company’s net deferred tax assets is provisional. The Company will complete its analysis of, and finalize its accounting for, these provisional estimates during the one-year measurement period as prescribed by SAB 118. The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2017 2016 2015 Current income tax expense: U.S. federal (a) $ 3,408 $ 2,179 $ 2,107 U.S. state and local 259 272 335 Non-U.S. 386 342 416 Total current income tax expense 4,053 2,793 2,858 Deferred income tax (benefit) expense: U.S. federal (b) 541 (45) (23) U.S. state and local (7) (8) (5) Non-U.S. 91 (52) (55) Total deferred income tax (benefit) expense 625 (105) (83) Total income tax expense $ 4,678 $ 2,688 $ 2,775 2017 includes a charge of $1.7 billion related to the Tax Act deemed repatriation tax on certain non-U . S . earnings. 2017 includes charges related to the Tax Act of $0. 6 billion due to the remeasurement of certain federal net deferred tax assets to the lower federal tax rate of 21 percent and $0.3 billion due to deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries . A reconciliation of the U.S. federal statutory rate of 35 percent a s of December 31, 2017, to the Company’s actual income tax rate for the years ended December 31 on continuing operations was as follows: 2017 2016 2015 U.S. statutory federal income tax rate 35.0 % 35.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.7) (1.7) (1.7) State and local income taxes, net of federal benefit 2.3 2.7 2.8 Non-U.S. subsidiaries' earnings (a) (5.7) (2.0) (1.8) Tax settlements (b) (0.7) (0.6) (0.2) Non deductible expenses (c) ― ― 0.9 U.S. Tax Act (d) 34.8 ― ― Other (0.9) (0.2) ― Actual tax rates 63.1 % 33.2 % 35.0 % Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely. In addition, 2017 included tax benefits of $156 million, which decreased the actual tax rate by 2.1 percent, related to the realization of certain foreign tax credits. Relates to the resolution of tax matters in various jurisdictions. Relates to the nondeductible portion of the Prepaid Services goodwill impairment in 2015. Relates to the $2.6 billion charge for the impacts of the Tax Act . The Company records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These te mporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such diffe rences are expected to reverse. In particular, the 2017 balances were reduced to reflect the r em easurement of certain f ederal net deferred tax assets due to the enacted lower federal tax rate of 21 percent . The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2017 2016 Deferred tax assets: Reserves not yet deducted for tax purposes $ 2,724 $ 3,889 Employee compensation and benefits 403 595 Other 409 592 Gross deferred tax assets 3,536 5,076 Valuation allowance (46) (54) Deferred tax assets after valuation allowance 3,490 5,022 Deferred tax liabilities: Intangibles and fixed assets 1,057 1,691 Deferred revenue 306 441 Deferred interest 183 305 Investment in joint ventures 137 209 Other 259 121 Gross deferred tax liabilities 1,942 2,767 Net deferred tax assets $ 1,548 $ 2,255 A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances as of December 31, 2017 and 2016 are associated with net operating losses and other deferred tax assets in certain non-U.S. operations of the Company. Net income taxes paid by the Company during 2017 , 2016 and 2015 , were approximately $ 1.4 billion, $ 3.0 billion and $ 3.4 billion, respectively. These amounts include estimated tax payments and cash settlements relating to prior tax years. The Company is subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which the Company operates. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, the Company must make judgments in assessing the lik elihood that a tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. The Company adjusts the level of unrecognized tax benefits when there is new information available to assess the li kelihood of the outcome. 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 significant business operations. The tax years under examination and open for examination vary by jurisdiction. In February 2017, the Company received notification that all matters outstanding with the IRS for tax years 1997-2007 were resolved. The resolution of such matters did not have a material impact on th e Company’s effect ive tax rate. The Company is currently under examination with the IRS for tax years 2008 through 2014 . The following table presents changes in unrecognized tax benefits: (Millions) 2017 2016 2015 Balance, January 1 $ 974 $ 870 $ 909 Increases: Current year tax positions 200 167 81 Tax positions related to prior years 39 117 177 Decreases: Tax positions related to prior years (a) (289) (81) (256) Settlements with tax authorities (77) (76) (15) Lapse of statute of limitations (26) (22) (26) Effects of foreign currency translations ― (1) ― Balance, December 31 $ 821 $ 974 $ 870 Decrease due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in AOCI. Included in the unrecognized tax benefits of $ 0.8 billion, $ 1.0 billion and $ 0.9 billion for December 31, 2017 , 2016 and 2015 , respectively, are approximately $ 723 million, $ 516 million and $ 502 million, respectively , that , if recognized, would favorably affect the effective tax rate in a future period. The Company believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $ 324 million, principally as a result of potential resolutions of prior years’ tax items with various ta xing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $ 324 million of unr ecognized tax benefits, approximately $ 295 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision . For the year ended December 31, 2017 the Company recognized a benefit of approximately $90 million for interest and penalties. For the years ended December 31, 2016 and 2015, the Company recognized approximately $9 million and $38 million, respectively, in expenses for interest and penalties. The interest expense benefit in 2017 includes approximately $56 million related to the resolution of an uncertain tax position with the IRS in January 2017, which had no net impact on the income tax provision . Th e Company had approximately $83 million an d $173 million accrued for the payment of interest and p enalties as of December 31, 2017 and 2016 , respectively. During the year ended December 31 , 2017 , the Company filed a request with the IRS for a change in the method of accounting for certain expenditures. If approved, the Company will claim approximately $2.6 billion of additional tax deductions on its 2017 U.S. tax return and record a tax benefit of approximately $3 60 million. Such benefit has not yet been reported by the Company , as affirmative consent of the IRS is required to make the change. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Earnings Per Common Share (EPS) | NOTE 22 Earnings Per Common Share (EPS) The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2017 2016 2015 Numerator: Basic and diluted: Net income $ 2,736 $ 5,408 $ 5,163 Preferred dividends (81) (80) (62) Net income available to common shareholders 2,655 5,328 5,101 Earnings allocated to participating share awards (a) (21) (43) (38) Net income attributable to common shareholders $ 2,634 $ 5,285 $ 5,063 Denominator: (a) Basic: Weighted-average common stock 883 933 999 Add: Weighted-average stock options (b) 3 2 4 Diluted 886 935 1,003 Basic EPS $ 2.98 $ 5.67 $ 5.07 Diluted EPS $ 2.97 $ 5.65 $ 5.05 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 unexercise d stock options excludes from the computation of EPS 0.6 million, 2.4 million and 0.5 million of options for the years ended December 31, 2017 , 2016 and 2015 , respectively, because inclusion of the options would h ave been anti-dilutive. |
Regulatory Matters and Capital
Regulatory Matters and Capital Adequacy | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Regulatory Matters and Capital Adequacy | NOTE 23 Regulatory Matters and Capital Adequacy The Company is supervised and regulated by the Federal Reserve and is subject to the Federal Reserve’s requirements for risk-based capital and leverage ratios. The Company’s two U.S. bank operating subsidiaries, American Express Centurion Bank (Centurion Bank) and American Express Ban k, FSB (American Express Bank and together with Centurion Bank , the Banks), are subject to supervision and regulation, including similar regulatory capital requirement s by the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), respectively. Under the risk-based capital guidelines of the Federal Reserve, the Company is required to maintain minimum ratios of Common Equit y Tier 1 (CET1), Tier 1 and Total (Tier 1 plus Tier 2) capital to risk-weighted assets, as well as a minimum leverage ratio (Tier 1 capital to average adjusted on-balance sheet assets). Failure to meet minimum capital requirements can initiate certain man datory, and possibly additional, discretionary actions by regulators, that, if undertaken, could have a direct material effect on the Company’s and the Banks’ operating activities. As of December 31, 2017 and 2016 , the Company and the Banks met all capital requirements to which each was subject and maintained regulatory capital ratios in excess of those required to qualify as well capitalized. The following table presents the regulatory capital ratios for the Company and the Banks: (Millions, except percentages) CET 1 capital Tier 1 capital Total capital CET 1 Capital ratio Tier 1 capital ratio Total capital ratio Tier 1 leverage ratio December 31, 2017: (a) American Express Company $ 13,189 $ 14,721 $ 17,142 9.0 % 10.1 % 11.8 % 8.6 % American Express Centurion Bank 5,954 5,954 6,547 12.7 12.7 14.0 10.2 American Express Bank, FSB 6,065 6,065 6,653 12.9 12.9 14.2 11.7 December 31, 2016: (a) American Express Company $ 16,134 $ 17,665 $ 19,893 12.3 % 13.5 % 15.2 % 11.6 % American Express Centurion Bank 6,134 6,134 6,600 16.5 16.5 17.8 16.2 American Express Bank, FSB 6,681 6,681 7,194 16.3 16.3 17.5 13.9 Well-capitalized ratios (b) 6.5 % 8.0 % 10.0 % 5.0 % (c) Basel III Standards 2017 (d) 5.8 % 7.3 % 9.3 % 4.0 % As a Basel III advanced approaches institution in parallel run, capital ratios are reported using Basel III capital definitions, inclusive of transition provisions, and risk-weighted assets using the Basel III standardized approach. As defined by the regulations issued by the Federal Reserve, OCC and FDIC for the year ended December 31, 2017 . Represents requirements for banking subsidiaries to be considered “well-capitalized” pursuant to regulations issued under the Federal Deposit Insurance Corpora tion Improvement Act. There is no CET1 capital ratio or Tier 1 leverage ratio requirement for a bank holding company to be considered “well-capitalized.” Transitional Basel III minimum capital requirement and additional capital conservation buffer as defin ed by the Federal Reserve for calendar year 2017 for advanced approaches institutions. The additional capital conservation buffer does not apply to Tier 1 leverage ratio. Restricted Net Assets of Subsidiaries Certain of the Company’s subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on the Company’s shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2017 , the aggregate amount of net assets of subsidiaries that are restricted to be transferred to the Company was approximately $ 9.3 billion. Bank Holding Company Dividend Restrictions The Company is limited in its ability to pa y dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common s tock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condi tion. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, the Company is required to develop and maintain a capital plan, which includes planned dividends over a two-year horizon. The Company may be limited in its ability to pay dividends if the Federal Reserve objects to its capital plan. In addition, the Capital Rules includ e a capital conservation buffer which is being phased in from January 1, 2016 through January 1, 2019. The Capital Rules also include a countercyclical capital buffer, which is currently set at zero but which could be increased by the Federal Reserve in th e future. These buffers can be satisfied only with CET1 capital. If the Company’s risk-based capital ratios were to fall below the applicable buffer levels, the Company would be subject to certain restrictions on dividends, stock repurchases and other capital distributions, as well as discretionary bonus payments to executive officers . Banks’ Dividend Restrictions In the year ended December 31, 2017 , Centurion Bank and American Express Bank paid dividends from retained earnings to their parent of $ 1.9 billion and $ 2.6 billion, respectively. The Banks are limited in their ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as Centurion Bank and American Express Bank from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy stand ards. The Banks must maintain a capital conservation buffer (and countercyclical buffer if in effect). If the Banks’ risk-based capital ratios do not satisfy minimum requirements plus the combined capital conservation buffer (and the countercyclical capit al buffer, if applicable), they will face graduated constraints on dividends and other capital distributions based on the amount of the shortfall. As of December 31, 2017 , the Banks’ aggregate retained earnings available for the payment of dividends was $ 3.8 billion. In determining the dividends to pay their parent, the Banks must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, the Banks’ banking regulators have authority to limit or prohibit the payment of a dividend by the Banks under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Significant Credit Concentratio
Significant Credit Concentrations | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Concentration Risk Disclosure [Text Block] | NOTE 24 Significant Credit Concentrations Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express’ total credit exposure. The Company’s customers operate in diverse industries, economic sectors and geographic regions. The following table details the Company’s maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2017 2016 On-balance sheet: Individuals (a) $ 112 $ 98 Institutions (b) 20 18 Financial Services (c) 35 28 U.S. Government and agencies (d) 3 3 Total on-balance sheet 170 147 P rimarily reflects loans and receivables from global consumer and small business Card Members , which are governed by individual credit risk management. Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. Represents banks, broker-dealers, insurance companies and savings and loan associations. R epresent debt obligations of the U.S. Government and its agencies, states and municipalities and governm ent-sponsored entities. As of December 31, 2017 and 2016 , the Company’s most significant concentration of credit risk was with individuals, including Card Member loans and receivables. These amounts are generally advanced on an unsecured basis. However, the Company reviews each potential customer’s credit application and evaluates the applicant’s financial history and ability and willingness to repay. The Company also considers credit performance by customer tenure, industry and geographic locati on in managing credit exposure. The following table details the Company’s Card Member loans and receivables exposure (including unused lines-of-credit available to Card Members as part of established lending product agreements ) in the United States and out side the United States as of December 31: (Billions) 2017 2016 On-balance sheet: U.S. $ 102 $ 93 Non-U.S. 25 20 On-balance sheet 127 113 Unused lines-of-credit: (a) U.S. 224 203 Non-U.S. 49 39 Total unused lines-of-credit $ 273 $ 242 Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Because the Company’s charge card products generally have no preset spending limit, the associated credit limit on charge products is not quantifiable, and therefore is not reflected in unused credit available to Card Members. |
Reportable Operating Segment
Reportable Operating Segment | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Reportable Operating Segments | NOTE 25 Reportable Operating Segments and Geographic Operations 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. The Company considers a combination of factors when evaluating the composition of its reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classe s of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. The following is a brief description of the primary business activities of the Company’s four reportable operating segments: USCS issues a wide range of proprietary consumer cards and provides services to consumers in the U nited States, including travel services. ICNS issues a wide range of proprietary consumer cards outside the United States and enters into partnership agreements with third-party card issuers and acquirers, licensing the American Express brand and extending the reach of the global network. It also provides travel services outside the United States . GC S issues a wide range of proprietary corporate and small business cards and provides payment and expense management services globally. In addition, GCS provides commercial financing products. GMS operates a global payments network that processes and settle s proprietary and non-proprietary card transactions. GMS acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging the Company’s global integrated network. GMS also operates loyalty coalitio n businesses in certain countries around the world. Corporate functions and certain other businesses and operations are included in Corporate & Other. The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other as of or for the years ended December 31, 2017 , 2016 and 2015 : (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated 2017 Non-interest revenues $ 7,923 $ 5,052 $ 9,463 $ 4,333 $ 259 $ 27,030 Interest income 5,755 1,029 1,361 1 407 8,553 Interest expense 742 251 540 (262) 841 2,112 Total revenues net of interest expense 12,936 5,830 10,284 4,596 (175) 33,471 Total provisions 1,630 367 744 15 3 2,759 Pretax income (loss) from continuing operations 2,803 1,093 2,999 2,389 (1,870) 7,414 Income tax provision (benefit) 912 181 972 815 1,798 4,678 Net income (loss) 1,891 912 2,027 1,574 (3,668) 2,736 Total assets (billions) $ 94 $ 39 $ 53 $ 29 $ (34) $ 181 2016 Non-interest revenues $ 7,874 $ 4,785 $ 9,007 $ 4,235 $ 447 $ 26,348 Interest income 5,082 922 1,209 1 261 7,475 Interest expense 536 219 401 (237) 785 1,704 Total revenues net of interest expense 12,420 5,488 9,815 4,473 (77) 32,119 Total provisions (b) 1,065 325 604 25 7 2,026 Pretax income (loss) from continuing operations 3,881 818 2,945 2,295 (1,843) 8,096 Income tax provision (benefit) 1,368 163 1,036 837 (716) 2,688 Net income (loss) 2,513 655 1,909 1,458 (1,127) 5,408 Total assets (billions) $ 87 $ 36 $ 47 $ 24 $ (35) $ 159 2015 Non-interest revenues $ 8,479 $ 4,627 $ 8,930 $ 4,471 $ 389 $ 26,896 Interest income 5,198 945 1,175 1 226 7,545 Interest expense 488 235 365 (211) 746 1,623 Total revenues net of interest expense 13,189 5,337 9,740 4,683 (131) 32,818 Total provisions (b) 1,064 300 588 31 5 1,988 Pretax income (loss) from continuing operations 3,677 904 3,164 2,381 (2,188) 7,938 Income tax provision (benefit) 1,322 220 1,142 882 (791) 2,775 Net income (loss) 2,355 684 2,022 1,499 (1,397) 5,163 Total assets (billions) $ 93 $ 35 $ 45 $ 24 $ (36) $ 161 Corporate & Other includes adjustments and eliminations for intersegment activity. Beginning December 1, 2015 through to the sale completion dates, in the USCS and GCS segments, total provisions did not include credit costs related to Card Member loans and receivables HFS, which were reported in Other expenses through a valuation allowance adjustment. Total Revenues Net of Interest Expense The Company allocates discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the USCS, ICNS and GCS segments, discount revenue reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMS segment, discount revenue reflects the network and acquirer component of the overall discount revenue. Net card fees and Other fees and commissions are directly attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment fun ding requirements and internal funding rates. Provisions for Losses The provisions for losses are directly attributable to the segment in which they are reported. Expenses Marketing and promotion expenses are included in each segment based on actual exp enses incurred. Global brand advertising is primarily reflected in Corporate & Other and may be allocated to the segment based on the actual expense incurred. Rewards and Card Member services expenses are included in each segment based on the actual expens es incurred within the segment. Salaries and employee benefits and other operating expenses includes expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, expenses related to support services, such as technology costs, are allocated to each segment primarily based on support service activities directly attributable to the segment. Other overhead expenses, such as staff group support functions, are allocated from Corporate & Oth er to the other segments based on a mix of each segment’s direct consumption of services and relative level of pretax income. Income Taxes An i ncome tax provision (benefit) is allocated to each business segment based on the effective tax rates applicable to various businesses that comprise the segment. Geographic Operations The following table presents the Company’s total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment : (Millions) United States EMEA (a) JAPA (a) LACC (a) Other Unallocated (b) Consolidated 2017 Total revenues net of interest expense $ 24,737 $ 3,583 $ 3,204 $ 2,396 $ (449) $ 33,471 Pretax income (loss) from continuing operations 7,071 898 602 610 (1,767) 7,414 2016 Total revenues net of interest expense $ 24,133 $ 3,248 $ 3,052 $ 2,274 $ (588) $ 32,119 Pretax income (loss) from continuing operations 8,202 482 559 597 (1,744) 8,096 2015 Total revenues net of interest expense $ 24,927 $ 3,293 $ 2,791 $ 2,412 $ (605) $ 32,818 Pretax income (loss) from continuing operations 7,500 544 587 693 (1,386) 7,938 EMEA represents Europe, the Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and the Caribbean. Other Unallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 26 Parent Company PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2017 2016 2015 Revenues Non-interest revenues Other 358 391 400 Total non-interest revenues 358 391 400 Interest income 258 196 172 Interest expense 493 515 526 Total revenues net of interest expense 123 72 46 Expenses Salaries and employee benefits 362 388 341 Other 553 510 443 Total expenses 915 898 784 Pretax loss (792) (826) (738) Income tax benefit (354) (327) (268) Net loss before equity in net income of subsidiaries and affiliates (438) (499) (470) Equity in net income of subsidiaries and affiliates 3,174 5,907 5,633 Net income $ 2,736 $ 5,408 $ 5,163 PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2017 2016 Assets Cash and cash equivalents $ 4,726 $ 5,229 Investment securities 1 1 Equity in net assets of subsidiaries and affiliates 18,191 20,522 Accounts receivable, less reserves 103 513 Premises and equipment, less accumulated depreciation: 2017, $9; 2016, $96 5 30 Loans to subsidiaries and affiliates 11,664 7,620 Due from subsidiaries and affiliates 1,962 867 Other assets 252 277 Total assets 36,904 35,059 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 3,076 1,531 Due to subsidiaries and affiliates 175 619 Short-term debt of subsidiaries and affiliates 2,731 4,044 Long-term debt 12,695 8,364 Total liabilities 18,677 14,558 Shareholders’ Equity Preferred Shares ― ― Common shares 172 181 Additional paid-in capital 12,210 12,733 Retained earnings 8,273 10,371 Accumulated other comprehensive loss (2,428) (2,784) Total shareholders’ equity 18,227 20,501 Total liabilities and shareholders’ equity $ 36,904 $ 35,059 PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2017 2016 2015 Cash Flows from Operating Activities Net income $ 2,736 $ 5,408 $ 5,163 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (3,174) (5,903) (5,633) Dividends received from subsidiaries and affiliates 5,755 4,999 5,331 Other operating activities, primarily with subsidiaries and affiliates 659 (102) 332 Net cash provided by operating activities 5,976 4,402 5,193 Cash Flows from Investing Activities Purchase of investments ― ― (3.00) Purchase of premises and equipment ― (1) (29) Loans to subsidiaries and affiliates (4,044) 4,142 (3,952) Investments in subsidiaries and affiliates ― (25) ― Net cash provided by (used in) investing activities (4,044) 4,116 (3,984) Cash Flows from Financing Activities Proceeds from long-term debt 5,900 ― ― Payments on long-term debt (1,500) (1,350) ― Short-term debt of subsidiaries and affiliates (1,313) (2,879) 986 Issuance of American Express preferred shares ― ― 841 Issuance of American Express common shares and other 129 176 192 Repurchase of American Express common shares (4,400) (4,430) (4,480) Dividends paid (1,251) (1,206) (1,172) Net cash (used in) provided by financing activities (2,435) (9,689) (3,633) Net (decrease) increase in cash and cash equivalents (503) (1,171) (2,424) Cash and cash equivalents at beginning of year 5,229 6,400 8,824 Cash and cash equivalents at end of year $ 4,726 $ 5,229 $ 6,400 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Abstract | |
Quarterly Financial Data | NOTE 27 QUARTERLY FINANCIAL DATA (UNAUDITED ) (Millions, except per share amounts) 2017 2016 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 8,839 $ 8,436 $ 8,307 $ 7,889 $ 8,022 $ 7,774 $ 8,235 $ 8,088 Pretax income 1,821 1,827 1,949 1,817 1,161 1,735 3,016 2,184 Net income (loss) (1,197) 1,356 1,340 1,237 825 1,142 2,015 1,426 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) $ (1.41) $ 1.51 $ 1.47 $ 1.34 $ 0.88 $ 1.21 $ 2.11 $ 1.45 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) (1.41) 1.50 1.47 1.34 0.88 1.20 2.10 1.45 Cash dividends declared per common share 0.35 0.35 0.32 0.32 0.32 0.32 0.29 0.29 Common share price: High 100.53 90.77 85.39 82.00 75.74 66.71 67.34 68.18 Low $ 90.04 $ 83.33 $ 75.51 $ 74.74 $ 59.50 $ 58.25 $ 57.15 $ 50.27 Represents net income, less (i) earnings allocated to participating share awards of $ 2 million, $ 11 million, $ 11 million and $ 10 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively, and $ 6 million, $ 9 million, $ 17 million and $ 11 million for the quarters ended December 31, September 30, June 30 and March 31, 2016 , respectively, and (ii) dividend s on preferred shares of $ 20 million, $ 21 million, $ 19 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively, and $ 19 million, $ 21 million, $ 19 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2016 , respectively. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policy (Text Block) [Abstract] | |
Principles of Consolidation | Principles of Consolidati on The Consolidated Financial Statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. The Company consolidates entitie s in which it holds a “controlling financial interest.” For voting interest entities, the Company is considered to hold a controlling financial interest when it is able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, the Company is considered to hold a controlling financial interest when it is determined to be the primary beneficiary. A primary benef iciary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could p otentia lly be significant to that VIE. Entities in which the Company’s voting interest in common equity does not provide it with control, but allows the Company to exert significant influence over operating and financial decisions, are accounted for under the equ ity method. All other investments in equity securities, to the extent they are not considered marketable securities, are accounted for under the cost method. |
Foreign Currency | Foreign Currency Monetary a ssets and liabili ties denominated in foreign currencies are translate d into U.S. dollars based upon exchange rates prevailing at the e nd of the reporting period; non- monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction; revenues and expenses are translated at the averag e month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation a djustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency ar e reported net in Other expenses, in the Company’s Consolidated Statements of Income. |
Amounts Based on Estimates and Assumptions | Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events . Among the more significant assumptions are those that relate to reserves for Card Member losses on loans and receivables, the proprietary point liability for Membership Rewards costs, fair value measurements, goodwill and income taxes. These accounting e stimates reflect the best judgment of management, but actual results could differ. |
Total Revenues Net of Interest Expense | Discount Revenue Discount revenue generally represents the amount earned by the Company on transactions occurring at merchants with which the Company, or a Global Network Services (GNS) partner, has entered into a card acceptance agreement for facilitating transactions between the merchants and the Company’s Card Members. The amount of fees charged, or merchant discount, is generally deducted from the payme nt to the merchant and recorded as discount revenue at the time a Card Member enters into a point-of-sale transaction with a merchant. Net Card Fees Net card fees represent revenue earned from annual ca rd membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-li ne basis over the twelve -month card membership period as Net Card Fees in the Consolidated Statements of Income. The unamortized net card fee balance is reported in Other Liabilities on the Consolidated Balance Sheets (refer to Note 10). Other Fees and Com missions Other fees and commissions represent Card Member delinquency fees, foreign currency conversion fees, loyalty coalition-related fees, travel commissions and fees and service fees, which are primarily recognized in the period in which they are char ged to the Card Member (refer to Note 19). In addition, service fees are also earned from other customers (e.g., merchants) for a variety of services and are recognized when the service is performed, which is generally in the period the fee is charged. Als o included are fees related to the Company’s Membership Rewards program, which are deferred and recognized over the period covered by the fee, typically one year; the unamortized portion of which is included in Other Liabilities on the Consolidated Balance Sheets ( r efer to Note 10). Contra-revenue The Company regularly makes payments through contractual arrangements with merchants, corporate payments clients, Card Members , third-party issuing partners and certain other customers. These payments, including cash rebates and statement credits provided to Card Members, are generally classified as contra-revenue unless a specifically identifiable benefit (e.g., goods or services) is received by the Company or its Card Members in consideration for that payment, a nd the fair value of such benefit is determinable and measurable. If such conditions are met, then the payment is classified as expense up to the estimated fair value of the benefit. If no such benefit is identified, then the entire payment is classified a s contra-revenue and included in the Consolidated Statements of Income in the revenue line item where the related transactions are recorded (e.g., Discount revenue or Other fees and commissions). Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is pai d, or written off. Interest and dividends on investment securities primarily relate to the Company’s performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security prem iums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments wi ll not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and o ther interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expe nse is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on the Company’s long-term debt and shor t-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on the Company’s long-term debt. |
Marketing and Promotion Expenses | Marketing and promotion expense includes costs incurred in the development and initial placement of advertising, wh ich are expensed in the year in which the advertising first takes place. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, and other highly liquid investments with original maturities of 90 days or less. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leaseh old improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estim ated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful l ife at the acquisition date. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and ranges from 5 to 10 years. The Company maintains operating leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and includes adjustments for rent concessions, rent escalations and leasehold improvement all owances. The Company recognizes lease restoration obligations at the fair value of the restoration liabilities when incurred and amortizes the restoration assets over the lease term. |
Software Development Costs | Certain costs associated with the acquisition or development of internal- use software are also capitalized and recorded in Premises and equipment. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. The Compa ny reviews these assets for impairment using the same impairment methodology used for its intangible assets. |
Card Member and Other Receivables and Loans | Card Member and Other Loans Card Member loans are recorded at the time a Card Member enters into a p oint-of-sale transaction with a merchant and represent revolving amounts due on lending card products, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect to revolve a portion of the outstanding balance by entering into a revolving payment arrangement with the Company. These loans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members, an d in accordance with applicable regulations and the respective product’s terms and conditions. Card Members holding revolving loans are typically required to make monthly payments based on pre-established amounts and the amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued interest and fees. The Company’s policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that the Company believes will not be collected. Card Member and Other Receivables Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for the Company. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued fees. Impaired Card Member Loans and Receivables The Company considers impaired loans and receivables to include: (i) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receiv ables modified as troubled debt restructurings (TDRs). Reserves for Ca rd Member loans and receivables modified as TDRs are determined as the difference between the cash flows expected to be received from the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying value of the rela ted Card Member loan or receivables balance. Th e Company determines the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are included in Provisions for losses in the Consolidated Statements of Income. |
Reserves for Losses | Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantit ative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitative reserves for certain external and internal qualitative factors, which may increase or decrease the reserves for losses on Card Member loans and receivables. These external factors include employment, spend, sentiment, housing and c redit, and changes in the legal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member loans or receivables, and net write-off coverage ratios. Card Member loans and re ceivables balances are written off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification, and recoveries are recognized as they are collected. |
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 unrealized gains and losses recorded in AOCI, net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. |
Asset Securitizations | The Company periodically securitizes Card Member loans and receivables ar ising from its card businesses through the transfer of those assets to securitization trusts. The trusts then issue debt securities collaterali zed by the transferred assets to third-party investors. Card Member loans are transferred to the American Express Credit Account Master Trust (the Lending Trust) and Card Member receivables are transferred to the American Express Issuance Trust II (the Ch arge Trust and together with the Lending Trust , the Trusts). The Trusts are consolidated by the Company. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are colla teralized by the underlying Card Member loans and receivables. Refer to Note 1 for further details on the principles of consolidation. The Company performs the servicing and key decision making for the Trusts, and therefore has the power to direct the acti vities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, the Company holds all of the variable interests in both Trusts, with the exception of the deb t securities issued to third-party investors. Thes e variable interests held by the Company provide it with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these con siderations, the Company is the primary beneficiary of both Trusts and therefore consolidates b oth Trusts. The debt securities issued by the Trusts are non-recourse to the Company. The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, respectively, are available only for payment of the debt securities or o ther obligations issued or arising in the securitization transactions (refer to Note 3). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 9). |
Goodwill and Intangible Assets | Goodwill Goodwill represents the excess of acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. The Company allocates goodwill to its reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regul arly reviewed by the operating segment manager. The Company evaluates goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of the Co mpany’s reporting units below its carrying value. Prior to completing the assessment of goodwill for impairment, the Company also performs a recoverability test of certain long-lived assets. The Company has the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of its reporting units is less than the carrying values. Alternatively, the Company performs a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other company and reporting unit - specific events. If the Co mpany determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, it then performs the impairment evaluation using the quantitative a ssessment . Under the quantitative assessment , t he first step ide ntifies whether there is a potential impairment by comparing the fair value of a reporting unit to the carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds the fair value, then a test is performed to determine the implied fair value of goodwill. An impairment loss is recognized based on the amount that the carrying amount of goodwill exceeds the implied fair value. When measuring the fair value of its reporting units in the quantitative assessment , the Company uses wi dely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, the Company uses internal forecasts to e stimate future cash flows expected to be generated by the reporting units. To discount these cash flows, the Company uses the expected cost of equity, determined by using a capital asset pricing model. The Company believes the discount rates used appropria tely reflect the risks and uncertainties in the financial markets generally and specifically in the Company’s internally - developed forecasts. When using market multiples under the market approach, the Company applies comparable publicly traded companies’ m ultiples (e.g., earnings or revenues) to its reporting units’ actual results. For the year ended December 31, 2017, the Company performed a qualitative assessment and determined that it was more likely than not that the fair values of its reporting units exceeded their carrying values. For the year ended December 31, 2016, the Company performed the quantitative assessment for all of its reporting units and determined that there was no impairment of goodwill. Other Intangible Assets Intangible assets, prima rily customer relationships, are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. The Company reviews long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. Intangible assets acquired in 2017 and 2016 are being amortized, on average, over 6 and 7 years, respectively. |
Other Assets | The Company accounts for its tax credit investments, including Qualified Affordable Housing (QAH) investments, using the equity method of accounting. |
Membership Rewards | Membe rship Rewards The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad range of rewards including travel, shopping, gift cards, and covering eligible charges . The Company records a balance sheet liability th at represents management’s best estimate of the cost of points earned that are expected to be redeemed in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are key assumptions used to estimate the Membership Rewar ds liability. The expense for Membership Rewards points is included in Card Member rewards expense. The Company periodically evaluates its liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner contract changes and other factors. |
Stock-based Compensation | The Company recognizes the cost of employee stock awards granted in exchange for employee services based on the grant-date fair value of the award, net of expected forfeitures. Those costs are recognized ratably over the vesting period. Effecti ve January 1, 2017, the Company adopted new accounting guidance for employee share-based payments and accordingly, income tax benefits related to stock-based incentive arrangements were recognized in the Company’s Consolidated Statements of Income RSAs/RSUs are valued based on the stock price on the date of grant and contain either a) service conditions or b) both service and performance conditions. Certain employees are awarded PGs and ot her incentive awards that can be settled with cash or equity shares at the Company’s discretion, and final Compensation and Benefits Committee payout approval. These awards earn value based on performance, market and/or service conditions, and vest over pe riods of one to three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. |
Retirement Plans | The Company recognizes the funded status of its defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the Consolidated Balance Sheets. |
Legal 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 be reasonably estimated. There may be instances in which an exposure to loss exceeds the recorded reserve. The Company evaluates, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed est imated range of possible losses, as applicable. |
Derivatives Financial Instruments 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. The Company’s derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and t he resulting hedge designation, if any, as discussed below. The Company formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, the Company will discontinue the application of hedge accounting. To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to th e hedged risk. Any difference between the changes in the fair value of the derivative and the changes in the hedged item is referred to as hedge ineffectiveness and is reported as a component of Other expenses. The Company primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. The Company has derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes . Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, prima rily foreign exchange forwards . These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified d ate. The Company also has certain operating agreements containing payments that may be linked to a market rate or price, primarily foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in whi ch case the embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. The changes in the fair value of derivatives that are not designated as hedges are intended to offset the rela ted foreign exchange gains or losses of the underlying foreign currency exposures. |
Fair Value Measurements | The Company monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and ou t of the levels of the fair value hierarchy, the Company discloses the fair value measurement at the beginning of the reporting period during which the transfer occurred. |
Guarantees | Amounts related to the Company’s Card Member protection plans were included as of December 31, 2016, in addition to its real estate and business dispositions. The Company’s recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. |
Income Tax Uncertainties | The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. The Company adjusts the level of unrecognized tax benefits when there is new information available to assess the li kelihood of the outcome. |
Income Taxes | T he Tax Act , enacted by the U.S. government on December 22, 2017, makes broad and complex changes to the U.S. tax code which will requir e time to interpret . The SEC issued Staff Accounting Bulletin No. 118 (SAB 118) in December, 2017, to provide guidance on accounting for the effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the Tax Act enactment date for companies to complete their assessment of and accounting for those effects of the Tax Act required under ASC 740 “Implementation Guidance on Accounting for Uncertainty in Income Taxes” to be reported in the period of enactment. Under SAB 118, a company must first reflect the income tax effects of the Tax Act for which the accounting is com plete in the period of the date of enactment. To the extent the accounting for other income tax effects is incomplete, but a reasonable estimate can be determined, companies must record a provisional estimate to be included in their financial statements. For any income tax effect for which a reasonable estimate cannot be determined, an entity must continue to apply ASC 740 based on the provisions of the tax laws in effect immediately prior to the Tax Act being enacted until such time as a reasonable estima te can be determined. The Company records a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These te mporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such diffe rences are expected to reverse. In particular, the 2017 balances were reduced to reflect the r em easurement of certain f ederal net deferred tax assets due to the enacted lower federal tax rate of 21 percent . A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances as of December 31, 2017 and 2016 are associated with net operating losses and other deferred tax assets in certain non-U.S. operations of the Company. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision . |
Regulatory Matters And Capital Adequacy [Policy Text Block] | Restricted Net Assets of Subsidiaries Certain of the Company’s subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on the Company’s shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. Bank Holding Company Dividend Restrictions The Company is limited in its ability to pa y dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common s tock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condi tion. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, the Company is required to develop and maintain a capital plan, which includes planned dividends over a two-year horizon. The Company may be limited in its ability to pay dividends if the Federal Reserve objects to its capital plan. Banks’ Dividend Restrictions The Banks are limited in their ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as Centurion Bank and American Express Bank from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy stand ards. The Banks must maintain a capital conservation buffer (and countercyclical buffer if in effect). If the Banks’ risk-based capital ratios do not satisfy minimum requirements plus the combined capital conservation buffer (and the countercyclical capit al buffer, if applicable), they will face graduated constraints on dividends and other capital distributions based on the amount of the shortfall. In determining the dividends to pay their parent, the Banks must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, the Banks’ banking regulators have authority to limit or prohibit the payment of a dividend by the Banks under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Segment Reporting | The Company considers a combination of factors when evaluating the composition of its reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classe s of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. Total Revenues Net of Interest Expense The Company allocates discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the USCS, ICNS and GCS segments, discount revenue reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMS segment, discount revenue reflects the network and acquirer component of the overall discount revenue. Net card fees and Other fees and commissions are directly attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment fun ding requirements and internal funding rates. Provisions for Losses The provisions for losses are directly attributable to the segment in which they are reported. Expenses Marketing and promotion expenses are included in each segment based on actual exp enses incurred. Global brand advertising is primarily reflected in Corporate & Other and may be allocated to the segment based on the actual expense incurred. Rewards and Card Member services expenses are included in each segment based on the actual expens es incurred within the segment. Salaries and employee benefits and other operating expenses includes expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, expenses related to support services, such as technology costs, are allocated to each segment primarily based on support service activities directly attributable to the segment. Other overhead expenses, such as staff group support functions, are allocated from Corporate & Oth er to the other segments based on a mix of each segment’s direct consumption of services and relative level of pretax income. Income Taxes An i ncome tax provision (benefit) is allocated to each business segment based on the effective tax rates applicable to various businesses that comprise the segment. |
Significant Accounting Polici39
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Revenue Recognition Standard Impact [Text Block] | Beginning with the quarter ending March 31, 2018, the Company’s consolidated financial statements will reflect the adoption of the standard using the full retrosp ective method, which applies the new standard to each prior reporting period presented. The most significant impacts of the adoption are changes to the presentation of certain credit and charge card related costs that previously were netted against D iscoun t revenue, including Card Member cash-back reward costs and statement credits, corporate client incentive payments, as well as payments to third-party card issuing partners. Under the new standard , these costs are not considered components of the transacti on price of our card acceptance agreements with merchants and thus are not netted against Discount revenue , but instead recognized as expense s . Our p ayments to third-party card issuing partners will be presented net of related Other revenues earned from th e partners. These reclassifications are expected to have the following impacts to the reported re sults for the fiscal years ended : Increase (Decrease) December 31 (Millions) 2017 2016 Revenues Discount revenue $ 3,707 $ 3,699 Other (278) (253) Expenses Marketing and promotion 2,350 2,420 Card Member rewards $ 1,079 $ 1,026 |
Loans and Accounts Receivable (
Loans and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Card Member receivables segment detail | Card Member accounts receivable by segment and Other receivables as of December 31, 2017 and 2016 consisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 13,143 $ 12,302 International Consumer and Network Services 7,803 5,966 Global Commercial Services 33,101 29,040 Card Member receivables 54,047 47,308 Less: Reserve for losses 521 467 Card Member receivables, net $ 53,526 $ 46,841 Other receivables, net (b) $ 3,163 $ 3,232 Includes $ 8.9 billion of gross Card Member receivables available to settle obligati ons of a consolidated VIE as of both December 31, 2017 and 2016 . Other receivables primarily represent amounts related to (i) GNS partner banks for items such as royalty and franchise fees, (ii) certain merchants for b illed discount revenue, (iii) tax-related receivables, and (iv ) loyalty coalition partners for points issued, as well as program participation and servicing fees. Other receivables are presented net of reserves for losses of $ 31 million and $ 45 million as of December 31, 2017 and 2016 , respectively. |
Card Member loans segment detail | Card Member loans by segment and Other loans as of December 31, 2017 and 2016 c onsisted of: (Millions) 2017 2016 U.S. Consumer Services (a) $ 53,668 $ 48,758 International Consumer and Network Services 8,651 6,971 Global Commercial Services 11,080 9,536 Card Member loans 73,399 65,265 Less: Reserve for losses 1,706 1,223 Card Member loans, net $ 71,693 $ 64,042 Other loans, net (b) $ 2,607 $ 1,419 Includes approximately $ 25.7 billion and $ 26.1 billion of gross Card Member loans available to settl e obligations of a consolidated VIE as of December 31, 2017 and 2016 , respectively. Other loans primarily represent personal and commercial financing products. Other loans are presented net of reserves for losses of $ 80 million and $ 42 million as of December 31, 2017 and 2016 , respectively. |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of December 31, 2017 and 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 $ 52,961 $ 201 162 344 $ 53,668 International Consumer and Network Services 8,530 37 28 56 8,651 Global Commercial Services Global Small Business Services 10,892 43 31 59 11,025 Global Corporate Payments (a) (b) (b) (b) ― 55 Card Member Receivables: U.S. Consumer Services $ 12,993 53 33 64 $ 13,143 International Consumer and Network Services 7,703 29 21 50 7,803 Global Commercial Services Global Small Business Services 15,868 91 54 106 16,119 Global Corporate Payments (a) (b) (b) (b) 148 16,982 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 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 90 days past billing, the associated Card Member loan and rec eivable 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 is not available due to system constraints. Ther efore, 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 years ended December 31: 2017 2016 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest, & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest, & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: U.S. Consumer Services 1.8 % 2.1 % 1.3 % 1.5 % 1.8 % 1.1 % International Consumer and Network Services 2.1 % 2.5 % 1.4 % 2.0 % 2.5 % 1.6 % Global Small Business Services 1.6 % 1.9 % 1.2 % 1.4 % 1.7 % 1.1 % Card Member Receivables: U.S. Consumer Services 1.3 % 1.4 % 1.1 % 1.4 % 1.6 % 1.2 % International Consumer and Network Services 2.0 % 2.1 % 1.3 % 2.0 % 2.2 % 1.3 % Global Small Business Services 1.6 % 1.8 % 1.6 % 1.5 % 1.7 % 1.6 % 2017 2016 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.10 % 0.9 % 0.09 % 0.9 % 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 ICNS as of December 31, 2017, 2016 and 2015 ; therefore, this segment’s receivables are not included in the following tables. As of December 31, 2017 Accounts Classified as a TDR (c) (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 $ 233 $ 168 $ 178 $ 131 $ 710 $ 639 $ 49 International Consumer and Network Services 56 ― ― ― 56 55 ― Global Commercial Services 38 31 31 27 127 118 8 Card Member Receivables: U.S. Consumer Services ― ― 15 9 24 24 1 Global Commercial Services ― ― 37 19 56 56 2 Total $ 327 $ 199 $ 261 $ 186 $ 973 $ 892 $ 60 As of December 31, 2016 Accounts Classified as a TDR (c) (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 As of December 31, 2015 Accounts Classified as a TDR (c) (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 $ 140 $ 124 $ 149 $ 89 $ 502 $ 463 $ 44 International Consumer and Network Services 52 ― ― ― 52 51 ― Global Commercial Services 24 26 23 18 91 85 9 Card Member Receivables: U.S. Consumer Services ― ― 11 3 14 14 8 Global Commercial Services ― ― 16 3 19 19 12 Total $ 216 $ 150 $ 199 $ 113 $ 678 $ 632 $ 73 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 $15 million, $20 million and $20 million that are over 90 days past due and accruing interest and $5 million, $11 million and $18 million that are non-accruals as of December 31, 201 7 , 201 6 and 201 5 , respectively. I n Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program T DRs include $141 million, $132 million and $84 million of Card Member accounts that have successfully complete d a modification program and $ 45 million, $3 9 million and $2 9 million of Card Member accounts that were not in compliance with the terms of the modification programs as of December 31, 2017, 2016 and 2015, 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 and in terest income recognized from I mpaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: 2017 (Millions) Average Balance Interest Income Recognized Card Member Loans: U.S. Consumer Services $ 643 $ 68 International Consumer and Network Services 56 17 Global Commercial Services 120 17 Card Member Receivables: U.S. Consumer Services 20 ― Global Commercial Services 45 ― Total $ 884 $ 102 Interest Income 2016 (Millions) Average Balance Recognized Card Member Loans: U.S. Consumer Services $ 559 $ 53 International Consumer and Network Services 53 15 Global Commercial Services 103 13 Card Member Receivables: U.S. Consumer Services 14 ― Global Commercial Services 28 ― Total $ 757 $ 81 Interest Income 2015 (Millions) Average Balance Recognized Card Member Loans: U.S. Consumer Services $ 569 $ 48 International Consumer and Network Services 54 14 Global Commercial Services 104 11 Card Member Receivables: U.S. Consumer Services 13 ― Global Commercial Services 20 ― Total $ 760 $ 73 |
Troubled debt restructurings | The following table provides additional information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs for the years ended December 31, 2017, 2016 and 2015 . The ICNS Card Member loans and receivables modifications were not significant; therefore, this segment is not included in the following TDR disclosures. 2017 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 33 $ 224 10 (b) Card Member Receivables 6 83 (c) 28 Total 39 $ 307 2016 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 31 $ 220 9 (b) Card Member Receivables 9 123 (c) 18 Total 40 $ 343 2015 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 40 $ 285 9 (b) Card Member Receivables 12 147 (c) 12 Total 52 $ 432 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. Modifications did not reduce the principal balance. 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 of modification for the years ended December 31, 2017 , 2016 and 2015 . A Card Member is considered in default of a modification program af ter one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of defa ult is factored into the reserves for Card Member loans and receivables. Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2017 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 6 $ 39 Card Member Receivables 3 7 Total 9 $ 46 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2016 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 7 $ 41 Card Member Receivables 3 4 Total 10 $ 45 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2015 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 52 Card Member Receivables 3 5 Total 11 $ 57 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) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31: (Millions) 2017 2016 2015 Balance, January 1 $ 467 $ 462 $ 465 Provisions (a) 795 696 737 Net write-offs (b) (736) (674) (713) Other (c) (5) (17) (27) Balance, December 31 $ 521 $ 467 $ 462 Provisions for principal and fee reserve components. P rincipal and fee write-offs are presented less recoveries of $ 359 million, $ 391 million and $ 401 million, including net write-offs from TDRs of $ (2) million, $ 16 million and $ 60 million, for the years ended December 31, 2017 , 2016 and 2015 , respectively. Includes foreign currency translation adjustments of $ 12 million, $ (12) million and $ (16) million , and other adjustments of $ (17) million, $ (5) million and $ (11) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Additionally, 2015 include d the impact of the transfer of the HFS receivables portfo lio, which was not significant. |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and collectively for impairme nt and related reserves as of December 31: (Millions) 2017 2016 2015 Card Member receivables evaluated individually for impairment (a) $ 80 $ 55 $ 33 Related reserves (a) $ 3 $ 28 $ 20 Card Member receivables evaluated collectively for impairment $ 53,967 $ 47,253 $ 44,100 Related reserves (b) $ 518 $ 439 $ 442 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. |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the years ended December 31: (Millions) 2017 2016 2015 Balance, January 1 $ 1,223 $ 1,028 $ 1,201 Provisions (a) 1,868 1,235 1,190 Net write-offs Principal (b) (1,181) (930) (967) Interest and fees (b) (227) (175) (162) Transfer of reserves on HFS loan portfolios ― ― (224) Other (c) 23 65 (10) Balance, December 31 $ 1,706 $ 1,223 $ 1,028 Provisions for principal, interest and fee reserve components. P rincipal write-offs are presented less recoveries of $ 409 million, $ 379 million and $ 418 million, and include net write-offs from TDRs of $30 million, $ 34 million and $ 41 million, for the years ended December 31, 2017 , 2016 and 2015 , respectively. Recoveries of i nterest and fees were not significant . Includes foreign currency translation adjustments of $ 8 million, $ (10) million and $ (20) million , and other adjustments of $ 15 million, $ 8 million and $ 10 million for the years ended December 31, 2017 , 2016 and 2015 , respectiv ely. The year ended December 31, 2016 include d reserves of $67 million associated with $265 million of retained Card Member loans reclassified from HFS to held for investment as a result of retaining certain loans in connection with the respective 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 Decembe r 31: (Millions) 2017 2016 2015 Card Member loans evaluated individually for impairment (a) $ 367 $ 346 $ 279 Related reserves (a) $ 57 $ 60 $ 53 Card Member loans evaluated collectively for impairment (b) $ 73,032 $ 64,919 $ 58,294 Related reserves (b) $ 1,649 $ 1,163 $ 975 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of December 31: 2017 2016 2015 Description of Securities (Millions) Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value State and municipal obligations $ 1,369 $ 11 $ (3) $ 1,377 $ 2,019 $ 28 $ (11) $ 2,036 $ 2,813 $ 85 $ (5) $ 2,893 U.S. Government agency obligations 11 ― ― 11 12 ― ― 12 2 ― ― 2 U.S. Government treasury obligations 1,051 3 (9) 1,045 465 3 (8) 460 406 4 (1) 409 Corporate debt securities 28 ― ― 28 19 ― ― 19 29 1 ― 30 Mortgage-backed securities (a) 67 2 ― 69 92 3 ― 95 117 4 ― 121 Foreign government bonds and obligations 581 ― ― 581 486 1 (1) 486 250 6 (1) 255 Equity securities (b) 51 ― (3) 48 51 ― (2) 49 51 ― (2) 49 Total $ 3,158 $ 16 $ (15) $ 3,159 $ 3,144 $ 35 $ (22) $ 3,157 $ 3,668 $ 100 $ (9) $ 3,759 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Equity securities comprise investments in common stock and various mutual funds. 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 December 31: 2017 2016 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses State and municipal obligations $ 157 $ (3) $ ― $ ― $ 153 $ (11) $ ― $ ― U.S. Government treasury obligations 650 (3) 175 (6) 298 (8) ― ― Equity securities ― ― 36 (2) ― ― 32 (2) Total $ 807 $ (6) $ 211 $ (8) $ 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 December 31: Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses 2017: 90%–100% 34 $ 807 $ (6) 13 $ 211 $ (8) 47 $ 1,018 $ (14) Total as of December 31, 2017 34 $ 807 $ (6) 13 $ 211 $ (8) 47 $ 1,018 $ (14) 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 | We ighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2017 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ 18 $ 87 $ 98 $ 1,174 $ 1,377 U.S. Government agency obligations ― ― ― 11 11 U.S. Government treasury obligations 30 879 125 11 1,045 Corporate debt securities 4 24 ― ― 28 Mortgage-backed securities (a) ― ― ― 69 69 Foreign government bonds and obligations 573 4 ― 4 581 Total Estimated Fair Value $ 625 $ 994 $ 223 $ 1,269 $ 3,111 Total Cost $ 625 $ 1,000 $ 222 $ 1,260 $ 3,107 Weighted average yields (b) 3.65 % 1.95 % 4.39 % 4.47 % 3.49 % 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. Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent. Effective January 1, 2018, the U.S. fed eral statutory tax rate was reduced to 21 percent. Refer to Note 21 for additional information. |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Restricted cash held by trusts | The following table provides information on the restricted cash held by the Lending Trust and the Charge Trust as of December 31, 2017 and 2016 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2017 2016 Lending Trust $ 55 $ 35 Charge Trust 7 3 Total $ 62 $ 38 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Other assets | The following is a summary of Other assets as of December 31: (Millions) 2017 2016 Goodwill $ 3,009 $ 2,927 Deferred tax assets, net (a) 1,647 2,336 Tax credit investments 1,023 824 Other intangible assets, at amortized cost 899 868 Prepaid expenses 684 696 Restricted cash (b) 336 286 Derivative assets (a) 124 555 Other 2,033 2,069 Total $ 9,755 $ 10,561 Refer to Notes 14 and 21 for a discussion of derivative assets and deferre d tax assets, net, as of December 31, 2017 and 2016 . For 2017 and 2016 , $98 million and $8 1 million, respectively, of foreign deferred tax liabilities is reflected in Other liabilities. Derivative assets reflect the impact of master netting agreements and cash collateral . Includes restricted cash available to settle obligations related to certain Card Member credit balances and customer deposits, as well as coupon and maturity obligations of consolidated VIEs. |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments and Corporate & Other were as follows: (Millions) USCS ICNS GCS GMS Corporate & Other Total Balance as of January 1, 2016 $ 122 $ 620 $ 1,715 $ 291 $ 1 $ 2,749 Acquisitions ― ― ― 201 ― 201 Dispositions ― ― ― ― ― ― Other (a) ― (16) (3) (3) (1) (23) Balance as of December 31, 2016 $ 122 $ 604 $ 1,712 $ 489 $ ― $ 2,927 Acquisitions 4 15 ― ― ― 19 Dispositions ― ― ― ― ― ― Other (a) 1 41 12 9 ― 63 Balance as of December 31, 2017 $ 127 $ 660 $ 1,724 $ 498 $ ― $ 3,009 Primarily includes foreign currency translation. |
Components of other intangible assets | The components of other intangible assets were as follows: 2017 2016 (Millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 1,863 $ (1,073) $ 790 $ 1,625 $ (895) $ 730 Other 242 (133) 109 260 (122) 138 Total $ 2,105 $ (1,206) $ 899 $ 1,885 $ (1,017) $ 868 |
Estimated amortization expense for other intangible assets | Estimated amortization expense for other intangible assets over the next five years is as follows: (Millions) 2018 2019 2020 2021 2022 Estimated amortization expense $ 221 $ 183 $ 156 $ 126 $ 98 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Deposits By Component Alternative | As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2017 2016 U.S.: Interest-bearing $ 63,666 $ 52,316 Non-interest-bearing (includes Card Member credit balances of: 2017, $358 million; 2016, $331 million) 395 367 Non-U.S.: Interest-bearing 34 58 Non-interest-bearing (includes Card Member credit balances of: 2017, $344 million; 2016, $285 million) 357 301 Total customer deposits $ 64,452 $ 53,042 |
Deposits By Type | Customer deposits by deposit type as of December 31 were as follows: (Millions) 2017 2016 U.S. retail deposits: Savings accounts ― Direct $ 31,915 $ 30,980 Certificates of deposit: (a) Direct 290 291 Third-party (brokered) 16,684 11,925 Sweep accounts ―Third-party (brokered) 14,777 9,120 Other deposits: U.S. non-interest bearing deposits 37 36 Non-U.S. deposits 47 74 Card Member credit balances ― U.S. and non-U.S. 702 616 Total customer deposits $ 64,452 $ 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 45 months and 2.15 percent, respectively, as of December 31, 2017 . |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of December 31, 2017 were as follows: (Millions) U.S. Non-U.S. Total 2018 $ 5,236 $ 20 $ 5,256 2019 4,604 ― 4,604 2020 3,674 ― 3,674 2021 1,310 ― 1,310 2022 2,150 ― 2,150 After 5 years ― ― ― Total $ 16,974 $ 20 $ 16,994 |
Time Deposits $250,000 Or More | As of December 31, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2017 2016 U.S. $ 114 $ 117 Non-U.S. 11 7 Total $ 125 $ 124 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Short-term borrowings | The Company’s short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2017 2016 (Millions, except percentages) Outstanding Balance Year-End Stated Rate on Debt (a) Outstanding Balance Year-End Stated Rate on Debt (a) Commercial paper (b) $ 1,168 1.54 % $ 2,993 1.13 % Other short-term borrowings (c) 2,110 2.34 2,588 1.28 Total $ 3,278 2.05 % $ 5,581 1.20 % For floating-rate issuances, the stated interest rates are weighted based on the outstanding balances and rates in effect as of December 31, 2017 and 2016 . Average commercial paper outstanding was $ 1,076 million and $ 491 million in 2017 and 2016 , respectively. Includes overdrafts with banks of $ 132 million and $ 369 million as of December 31, 2017 and 2016 , respectively. In addition, balances include certain book overdrafts (i.e., primarily timing differences arising in the ordinary course of business), short-term borrowings from banks, as well as interest-bearing amounts due to merchants in accordance with merchant service agreements. |
Long-term debt | The Company’s long-term debt outstanding, defined as debt with original contractual maturity dates of o ne year or greater, as of December 31 was as follows: 2017 2016 (Millions, except percentages) Original Contractual Maturity Dates Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Stated Rate on Debt (b) Year-End Effective Interest Rate with Swaps (b)(c) American Express Company (Parent Company only) Fixed Rate Senior Notes 2018 - 2042 $ 10,377 3.85 % 3.17 % $ 6,932 5.13 % 4.24 % Floating Rate Senior Notes 2018 - 2022 1,750 1.93 ― 850 1.51 ― Subordinated Notes 2024 598 3.63 2.66 598 3.63 1.92 American Express Credit Corporation Fixed Rate Senior Notes 2018 - 2027 19,652 2.24 2.27 16,201 1.98 1.44 Floating Rate Senior Notes 2018 - 2022 4,550 2.09 ― 4,350 1.52 ― American Express Centurion Bank Fixed Rate Senior Notes ― ― ― 1,306 5.99 4.83 Floating Rate Senior Notes 2018 125 1.89 ― 125 1.26 ― American Express Bank, FSB Fixed Rate Senior Notes ― ― ― 1,000 6.00 ― Floating Rate Senior Notes ― ― ― 300 0.96 ― American Express Lending Trust Fixed Rate Senior Notes 2019 - 2022 8,099 1.90 ― 3,500 1.41 ― Floating Rate Senior Notes 2018 - 2022 5,800 2.03 ― 7,025 1.20 ― Fixed Rate Subordinated Notes 2020 - 2022 206 2.21 ― - - ― Floating Rate Subordinated Notes 2018 - 2022 192 2.05 ― 316 1.34 ― American Express Charge Trust II Floating Rate Senior Notes 2018 - 2020 4,200 1.79 ― 4,200 1.12 ― Floating Rate Subordinated Notes 2018 87 2.11 ― 87 1.34 ― Other Fixed Rate Instruments (d) 2021 - 2033 23 5.59 ― 24 5.62 ― Floating Rate Borrowings 2018 - 2020 256 0.42 ― % 247 0.44 ― % Unamortized Underwriting Fees (111) (71) Total Long-Term Debt $ 55,804 2.44 % $ 46,990 2.39 % The outstanding balances include (i) unamortized discount and premium, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Under fair value hedge accounting, the outstanding balances on these fixed-rate notes are adjusted to reflect the impact of changes in fair value due to changes in interest rates. Refer to No te 14 for more details on the Company’s treatment of fair value hedges. For floating-rate issuances, the stated and effective interest rates are weighted based on the outstanding balances and rates in effect as of De cember 31, 2017 and 2016 . Effectiv e interest rates are only presented when swaps are in plac e to hedge the underlying debt. Includes $ 23 million and $ 24 million as of December 31, 2017 and 2016 , respectively, related to capitalized lease transactions. |
Aggregate annual maturities on long-term debt obligations | Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2017 were as follows: (Millions) 2018 2019 2020 2021 2022 Thereafter Total American Express Company (Parent Company only) $ 3,850 $ 641 $ 2,000 $ ― $ 3,525 $ 3,523 $ 13,539 American Express Credit Corporation 3,654 7,150 6,600 2,939 2,050 2,000 24,393 American Express Centurion Bank 125 ― ― ― ― ― 125 American Express Lending Trust 2,885 3,488 5,924 ― 2,001 ― 14,298 American Express Charge Trust II 1,287 ― 3,000 ― ― ― 4,287 Other 133 35 88 12 ― 12 280 $ 11,934 $ 11,314 $ 17,612 $ 2,951 $ 7,576 $ 5,535 $ 56,922 Unamortized Underwriting Fees (111) Unamortized Discount and Premium (825) Impacts due to Fair Value Hedge Accounting (182) Total Long-Term Debt $ 55,804 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Summary of other liabilities | The following is a summary of Other liabilities as of December 31: (Millions) 2017 2016 Membership Rewards liability $ 7,751 $ 7,060 Book overdraft balances 2,837 2,255 Employee-related liabilities (a) 2,277 2,055 Repatriation tax liability (b) 1,703 ― Card Member rebate and reward accruals (c) 1,564 1,382 Deferred card and other fees, net 1,554 1,411 Other (d) 4,462 4,614 Total $ 22,148 $ 18,777 Employee-related liabilities include employee benefit plan obligations and incentive compensation. Refer to Note 21 for additional information. Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. Other includes accruals for general operating expenses, client incentives, merchant rebates, payments to third-party ca rd-issuing partners, marketing and promotion, restructuring and reengineering reserves, QAH unfunded commitments and derivatives. |
Carrying amount of deferred charge card and other fees | The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, was as follows: (Millions) 2017 2016 Deferred card and other fees (a) $ 1,996 $ 1,767 Deferred direct acquisition costs (280) (204) Reserves for membership cancellations (162) (152) Deferred card and other fees, net $ 1,554 $ 1,411 Includes deferred fees for Membership Rewards program participants. |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Summary of Stock Option and RSA Activity | A summary of stock option and RSA /RSU activity as of December 31, 2017 , and changes during the year , is presented below: Stock Options RSAs/RSUs (Shares in thousands) Shares Weighted-Average Exercise Price Shares Weighted- Average Grant Price Outstanding as of December 31, 2016 10,272 $ 47.68 7,500 $ 69.22 Granted 869 87.19 2,670 77.80 Exercised/vested (3,766) 34.48 (2,335) 75.85 Forfeited (102) 67.57 (620) 68.80 Expired (11) 86.11 ― ― Outstanding as of December 31, 2017 7,262 58.92 7,215 $ 70.29 Options vested and expected to vest as of December 31, 2017 7,194 58.86 Options exercisable as of December 31, 2017 3,399 $ 45.93 |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of the Company’s stock exceeds the exercise price of the option) of the stock options outstanding, exercisable, vested, and expe cted to ve st as of December 31, 2017 , we re as follows: Outstanding Exercisable Vested and Expected to Vest Weighted-average remaining contractual life (in years) 5.8 3.1 5.7 Aggregate intrinsic value (millions) $ 293 $ 181 $ 291 |
Weighted Average Assumptions Used | The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions wer e used for options granted in 2017 , 2016 and 2015 : 2017 2016 2015 Dividend yield 1.8 % 1.9 % 1.1 % Expected volatility (a) 24 % 25 % 37 % Risk-free interest rate 2.3 % 1.5 % 1.7 % Expected life of stock option ( in years ) (b) 6.9 6.3 6.7 Weighted-average fair value per option $ 18.18 $ 13.67 $ 29.20 The expected volatility is based on both weighted historical and implied volatilities of the Company’s common stock price. The expected life of stock options was determined using both historical data and expectations of option exercise behavior. |
Special Stock Option Assumptions [Text Block] | On October 31, 2017, certain senior executives were awarded stock options with a term of seven years, and include a three-year service condition, as well as performance and market conditions. Therefore, the fair values of these options were estimated at the g rant date using a Monte Carlo Valuation model with the following assumptions: October 31, 2017 Dividend yield 1.58 % Expected volatility (a) 21.41 % Risk-free interest rate 2.26 % Expected life of stock option ( in years ) 7 Fair value per option $ 19.18 The expected volatility is based on both weighted historical and implied volatilities of the Company’s common stock price. |
Summary of Stock Plan Expenses | The components of the Company’s total stock-based compensation expense (net of forfeitures) for the years ended December 31 are as follows: (Millions) 2017 2016 2015 Restricted stock awards (a) $ 170 $ 178 $ 190 Stock options (a) 21 14 12 Liability-based awards 92 60 32 Total stock-based compensation expense (b) $ 283 $ 252 $ 234 As of December 31, 2017 , the total unrecognized compensation cost related to unvested RSAs /RSUs and options of $ 178 million and $ 21 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 2.1 years . The total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation arrangements for the years ended December 31, 2017 , 2016 and 2015 was $ 102 million, $ 89 million and $ 83 million, respectively. |
Commitments and Contigencies (T
Commitments and Contigencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Minimum aggregate rental commitment under noncancelable operating leases | As of December 31, 2017 , the minimum aggregate rental commitment under all non-cancelable operating leases (net of subleases of $ 20 million) was as follows: (Millions) 2018 $ 131 2019 124 2020 98 2021 72 2022 57 Thereafter 831 Total $ 1,313 |
Derivatives and Hedging Activ50
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [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 December 31: 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) $ 11 $ 111 $ 34 $ 69 Net investment hedges - Foreign exchange contracts 117 347 89 35 Total derivatives designated as hedging instruments 128 458 123 104 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 82 308 95 176 Total derivatives, gross 210 766 218 280 Less: Cash collateral netting (c) (d) (6) (54) (45) (68) Derivative asset and derivative liability netting (e) (80) (157) (80) (157) Total derivatives, net $ 124 $ 555 $ 93 $ 55 Effective January 2017, the Central Clearing Party (CCP) changed the legal characterization of variation margin payments for centrally cleared derivatives to be settlement pay ments, as opposed to collateral. As of December 31, 2017 , there was no unsettled derivative asset or liability with the CCP. 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 fore ign currency derivatives embedded in certain operating agreements . Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to reclaim cash collateral or the obligation to return cash collateral. The Company held no non-cash collateral as of December 31, 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, wit h a fair value of $18 million , none of which was sold or repledged. Such non-cash collateral economically reduced the Company’s risk exposure to $537 million as of December 31, 2016 , but did not reduce the net exposure on the Company’s Consolidated Balance Sheets. Addition ally, the Com pany posted $146 million and $16 9 million as of December 31, 2017 and 2016 , respectively, as initial margin on its centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance She ets and are not netted against the derivative balances. Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: |
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 year ended December 31 : (Millions) 2017 2016 2015 Other expenses: Interest rate derivative contracts $ (246) $ (184) $ (83) Hedged items 206 163 93 Net hedge ineffectiveness (losses) gains $ (40) $ (21) $ 10 The following table summarizes the impact on the Consolidated Statements of Income associated with the Company’s fair value hedges of its fixed-rate long-term debt and its investment in ICBC for the years ended December 31 : |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [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 described in the preceding paragraphs), as of December 31 : 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 $ 48 $ 1 $ 47 $ ― $ 49 $ 1 $ 48 $ ― Debt securities 3,111 1,045 2,066 ― 3,108 460 2,648 ― Derivatives (a) 210 ― 210 ― 765 ― 765 ― Total Assets 3,369 1,046 2,323 ― 3,922 461 3,461 ― Liabilities: Derivatives (a) 218 ― 218 ― 280 ― 280 ― Total Liabilities $ 218 $ ― $ 218 $ ― $ 280 ― 280 ― Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated 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 valuation hierarchy (as described in the preceding paragraphs), as of December 31: Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated basis. |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fair values of the Company’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of December 31, 2017 and 2016 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2017 and 2016 , and require management’s judgment. These figu res may not be indicative of future fair values, nor can the fair value of the Company be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2017 (Billions) Value Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 33 $ 33 $ 32 $ 1 $ ― Other financial assets (b) 57 57 ― 57 ― Financial assets carried at other than fair value Loans, net (c) 74 75 ― ― 75 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 76 76 ― 76 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 17 17 ― 17 ― Long-term debt (c) $ 56 $ 57 $ ― $ 57 $ ― 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 $ 8.9 billion and $ 8.8 billion held by a consolidated VIE as of December 31, 2017 and 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 $ 25.6 billion and $ 26.0 billion as of Dece mber 31, 2017 and 2016 , respectively, and the fair values of long-term debt were $ 18.6 billion and $ 15.2 billion as of December 31, 2017 and 2016 , respectively. Presented as a component of customer deposits on the Consolidated B alance Sheets. |
Common and Preferred Shares a52
Common and Preferred Shares and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Authorized shares and a reconciliation of common shares issued and outstanding | The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2017 2016 2015 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 904 969 1,023 Repurchases of common shares (50) (70) (59) Other, primarily stock option exercises and restricted stock awards granted 5 5 5 Shares issued and outstanding as of December 31 859 904 969 Of the common shares authorized but unissued as of December 31, 2017 , approximately 29 million shares are reserved for issuance under employee stock and employee benefit plans. |
Perpetual Fixed Rate Noncumulative Preferred Shares issued and outstanding | The Company has the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31, 2017 : Series B Series C Issuance date November 10, 2014 March 2, 2015 Securities issued 750 Preferred Shares; represented by 750,000 depositary shares 850 Preferred Shares; represented by 850,000 depositary shares Aggregate liquidation preference $750 million $850 million Fixed dividend rate per annum 5.20% 4.90% Semi-annual fixed dividend payment dates Beginning May 15, 2015 Beginning September 15, 2015 Floating dividend rate per annum 3 month LIBOR+ 3.428% 3 month LIBOR+ 3.285% Quarterly floating dividend payment dates Beginning February 15, 2020 Beginning June 15, 2020 Fixed to floating rate conversion date (a) November 15, 2019 March 15, 2020 The date on which dividends convert from a fixed-rate calculation to a floating rate calculation. |
Changes in Accumulated Other 53
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Components of comprehensive income (loss), net of tax | AOCI is a balance sheet item in the Shareholders’ Equity section of the Company’s Consolidated Balance Sheets. It 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 years ended December 31 were as follows: (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2014 $ 96 $ (1,499) $ (516) $ (1,919) Net unrealized losses (37) ― ― (37) Decrease due to amounts reclassified into earnings (1) (1) ― (2) Net translation loss of investments in foreign operations ― (1,122) ― (1,122) Net gains related to hedges of investments in foreign operations ― 578 ― 578 Pension and other postretirement benefit ― ― (32) (32) Net change in accumulated other comprehensive loss (38) (545) (32) (615) Balances as of December 31, 2015 58 (2,044) (548) (2,534) Net unrealized losses (45) ― ― (45) (Decrease) increase due to amounts reclassified into earnings (6) 4 ― (2) Net translation loss of investments in foreign operations ― (503) ― (503) Net gains related to hedges of investment in foreign operations ― 281 ― 281 Pension and other postretirement benefit ― ― 19 19 Net change in accumulated other comprehensive (loss) income (51) (218) 19 (250) Balances as of December 31, 2016 7 (2,262) (529) (2,784) Net unrealized losses (7) ― ― (7) Decrease due to amounts reclassified into earnings ― (7) ― (7) Net translation gain of investments in foreign operations (a) ― 678 ― 678 Net losses related to hedges of investment in foreign operations ― (370) ― (370) Pension and other postretirement benefit ― ― 62 62 Net change in accumulated other comprehensive (loss) income (7) 301 62 356 Balances as of December 31, 2017 $ ― $ (1,961) $ (467) $ (2,428) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 21) . |
Accumulated Other Comprehensive Loss Income Tax Effect Disclosure Text Block | The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2017 2016 2015 Investment securities $ (4) $ (27) $ (20) Foreign currency translation adjustments (a) (172) (15) (124) Net investment hedges (215) 139 340 Pension and other postretirement benefit 7 37 ― Total tax impact $ (384) $ 134 $ 196 (a) Includes $289 mi llion of recognized tax benefits in the year ended December 31, 2017 (r efer to Note 21 ). |
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the years ended December 31 : Gains (losses) recognized in earnings Description (Millions) Income Statement Line Item 2017 2016 Available-for-sale securities Reclassifications for previously unrealized net gains on investment securities Other non-interest revenues $ ― $ 9 Related income tax expense Income tax provision ― (3) Reclassification to net income related to available-for-sale securities ― 6 Foreign currency translation adjustments Reclassification of realized losses on translation adjustments and related net investment hedges Other expenses (7) (4) Related income tax benefit Income tax provision 14 ― Reclassification to net income related to foreign currency translation adjustments 7 (4) Total $ 7 $ 2 |
Non-Interest Revenue and Expe54
Non-Interest Revenue and Expense Detail (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Details of other commissions and fees | The following is a detail of Other fee s and commissions for the years ended December 31: (Millions) 2017 2016 2015 Delinquency fees $ 888 $ 762 $ 788 Foreign currency conversion fee revenue 851 809 852 Loyalty coalition-related fees 453 410 379 Travel commissions and fees 354 338 349 Service fees 309 291 361 Other (a) 167 143 137 Total Other fees and commissions $ 3,022 $ 2,753 $ 2,866 Other primarily includes fees related to Membership Rewards programs. (Millions) 2016 2015 2014 Foreign currency conversion fee revenue $ - $ 852 $ 877 Delinquency fees - 788 722 Loyalty coalition-related fees - 379 383 Travel commissions and fees - 349 1,118 Service fees - 361 366 Other (a) - 137 160 Total Other fees and commissions $ - $ 2,866 $ 3,626 |
Details of other revenues | The following is a detail of Other revenues for the years ended December 31: (Millions) 2017 2016 2015 Global Network Services partner revenues $ 615 $ 654 $ 640 Other (a) 1,117 1,375 1,393 Total Other revenues $ 1,732 $ 2,029 $ 2,033 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, Prepaid card and Travelers Cheque -related revenues, revenues related to the GBT JV transition services agreemen t, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees . |
Detail of other, net expense | The following is a detail of Other expenses for the years ended December 31: (Millions) 2017 2016 2015 Professional services $ 2,070 $ 2,583 $ 2,750 Occupancy and equipment 2,019 1,838 1,854 Communications 276 302 345 Gain on sale of HFS portfolios (a) ― (1,218) ― Other (b) 1,411 1,657 1,844 Total Other expenses $ 5,776 $ 5,162 $ 6,793 Refer to Note 2 for additional information. Other expense primarily inclu des general operating expenses, goodwill and technology impairment costs (refer to Note 2), Card and merchant-related fraud losses, foreign cu rrency-related gains and losses (including the favorable impact from the reassessment of the functional currency of certain UK legal entities in the year ended December 31, 2015) and insurance costs . In addition, b eginning December 1, 2015 through to the po rtfolio sale completion dates, i nclude d the valuation allowance adjustment associated with the HFS portfolios. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Restructuring Charges | The following table summarizes the Company’s restructuring reserves activity for the years ended December 31, 2017 , 2016 and 2015 : (Millions) Severance Other (a) Total Liability balance as of December 31, 2014 $ 435 $ 35 $ 470 Restructuring charges, net of $61 in revisions (b) (33) 7 (26) Payments (141) (14) (155) Other non-cash (c) (23) (5) (28) Liability balance as of December 31, 2015 238 23 261 Restructuring charges, net of $81 in revisions (b) 305 24 329 Payments (171) (21) (192) Other non-cash (c) (12) (3) (15) Liability balance as of December 31, 2016 360 23 383 Restructuring charges (d) 34 8 42 Payments (219) (16) (235) Other non-cash (c) 11 (2) 9 Liability balance as of December 31, 2017 (e) $ 186 $ 13 $ 199 Other primarily includes facility exit and contract termination costs. Revisions primarily relate to higher than anticipated redeployments of displaced employees to other positions within the Company, business changes and modifications to existing initiatives. Consists primarily of foreign exchange impacts and other non-cash charges. Net revisions to existing restructuring reserves were immaterial for the year ended December 31, 2017. The majority of cash payments related to the remaining restructu ring liabilities are expected to be completed in 2018, and to a lesser extent certain contractual long-term severance arrangements and lease obligations are expected to be completed in 2019 and 2023, respectively. |
Restructuring charges, by reportable segment | The following table summarizes the Comp any’s restructuring charges, net of revisions, by reportable operating segment and Corporate & Other for the year ended December 31, 2017 , and the cumulative amounts relating to the restructuring programs that were in progress during 2017 and initiat ed at various dates between 2011 and 2017 . 2017 Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs (Millions) Total Restructuring Charges, net revisions Severance Other Total USCS $ (8) $ 54 $ ― $ 54 ICNS (6) 132 ― 132 GCS (10) 85 8 93 GMS 5 40 ― 40 Corporate & Other 61 322 81 403 (a) Total $ 42 $ 633 $ 89 $ 722 (b) Corporate & Other includes certain sev erance and other charges of $336 million related to c ompanywide support functions which were not allocated to the Company’s reportable operating segments, as these were corporate initiatives, which is consistent with how such charges were reported internally. As of December 31, 2017 , the total expenses to be incurred for previously approved restructuring activities that were in progress are not expected to be materially different than the cumulative expenses incurred to date for these programs. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2017 2016 2015 Current income tax expense: U.S. federal (a) $ 3,408 $ 2,179 $ 2,107 U.S. state and local 259 272 335 Non-U.S. 386 342 416 Total current income tax expense 4,053 2,793 2,858 Deferred income tax (benefit) expense: U.S. federal (b) 541 (45) (23) U.S. state and local (7) (8) (5) Non-U.S. 91 (52) (55) Total deferred income tax (benefit) expense 625 (105) (83) Total income tax expense $ 4,678 $ 2,688 $ 2,775 2017 includes a charge of $1.7 billion related to the Tax Act deemed repatriation tax on certain non-U . S . earnings. 2017 includes charges related to the Tax Act of $0. 6 billion due to the remeasurement of certain federal net deferred tax assets to the lower federal tax rate of 21 percent and $0.3 billion due to deferred state income and foreign withholding tax consequences of future cash distributions from non-U.S. subsidiaries . |
Effective income tax rate | A reconciliation of the U.S. federal statutory rate of 35 percent a s of December 31, 2017, to the Company’s actual income tax rate for the years ended December 31 on continuing operations was as follows: 2017 2016 2015 U.S. statutory federal income tax rate 35.0 % 35.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.7) (1.7) (1.7) State and local income taxes, net of federal benefit 2.3 2.7 2.8 Non-U.S. subsidiaries' earnings (a) (5.7) (2.0) (1.8) Tax settlements (b) (0.7) (0.6) (0.2) Non deductible expenses (c) ― ― 0.9 U.S. Tax Act (d) 34.8 ― ― Other (0.9) (0.2) ― Actual tax rates 63.1 % 33.2 % 35.0 % Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely. In addition, 2017 included tax benefits of $156 million, which decreased the actual tax rate by 2.1 percent, related to the realization of certain foreign tax credits. Relates to the resolution of tax matters in various jurisdictions. Relates to the nondeductible portion of the Prepaid Services goodwill impairment in 2015. Relates to the $2.6 billion charge for the impacts of the Tax Act . |
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2017 2016 Deferred tax assets: Reserves not yet deducted for tax purposes $ 2,724 $ 3,889 Employee compensation and benefits 403 595 Other 409 592 Gross deferred tax assets 3,536 5,076 Valuation allowance (46) (54) Deferred tax assets after valuation allowance 3,490 5,022 Deferred tax liabilities: Intangibles and fixed assets 1,057 1,691 Deferred revenue 306 441 Deferred interest 183 305 Investment in joint ventures 137 209 Other 259 121 Gross deferred tax liabilities 1,942 2,767 Net deferred tax assets $ 1,548 $ 2,255 |
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: (Millions) 2017 2016 2015 Balance, January 1 $ 974 $ 870 $ 909 Increases: Current year tax positions 200 167 81 Tax positions related to prior years 39 117 177 Decreases: Tax positions related to prior years (a) (289) (81) (256) Settlements with tax authorities (77) (76) (15) Lapse of statute of limitations (26) (22) (26) Effects of foreign currency translations ― (1) ― Balance, December 31 $ 821 $ 974 $ 870 Decrease due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in AOCI. |
Earnings Per Common Share (EP57
Earnings Per Common Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2017 2016 2015 Numerator: Basic and diluted: Net income $ 2,736 $ 5,408 $ 5,163 Preferred dividends (81) (80) (62) Net income available to common shareholders 2,655 5,328 5,101 Earnings allocated to participating share awards (a) (21) (43) (38) Net income attributable to common shareholders $ 2,634 $ 5,285 $ 5,063 Denominator: (a) Basic: Weighted-average common stock 883 933 999 Add: Weighted-average stock options (b) 3 2 4 Diluted 886 935 1,003 Basic EPS $ 2.98 $ 5.67 $ 5.07 Diluted EPS $ 2.97 $ 5.65 $ 5.05 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 unexercise d stock options excludes from the computation of EPS 0.6 million, 2.4 million and 0.5 million of options for the years ended December 31, 2017 , 2016 and 2015 , respectively, because inclusion of the options would h ave been anti-dilutive. |
Regulatory Matters and Capita58
Regulatory Matters and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Regulatory capital ratios | The following table presents the regulatory capital ratios for the Company and the Banks: (Millions, except percentages) CET 1 capital Tier 1 capital Total capital CET 1 Capital ratio Tier 1 capital ratio Total capital ratio Tier 1 leverage ratio December 31, 2017: (a) American Express Company $ 13,189 $ 14,721 $ 17,142 9.0 % 10.1 % 11.8 % 8.6 % American Express Centurion Bank 5,954 5,954 6,547 12.7 12.7 14.0 10.2 American Express Bank, FSB 6,065 6,065 6,653 12.9 12.9 14.2 11.7 December 31, 2016: (a) American Express Company $ 16,134 $ 17,665 $ 19,893 12.3 % 13.5 % 15.2 % 11.6 % American Express Centurion Bank 6,134 6,134 6,600 16.5 16.5 17.8 16.2 American Express Bank, FSB 6,681 6,681 7,194 16.3 16.3 17.5 13.9 Well-capitalized ratios (b) 6.5 % 8.0 % 10.0 % 5.0 % (c) Basel III Standards 2017 (d) 5.8 % 7.3 % 9.3 % 4.0 % As a Basel III advanced approaches institution in parallel run, capital ratios are reported using Basel III capital definitions, inclusive of transition provisions, and risk-weighted assets using the Basel III standardized approach. As defined by the regulations issued by the Federal Reserve, OCC and FDIC for the year ended December 31, 2017 . Represents requirements for banking subsidiaries to be considered “well-capitalized” pursuant to regulations issued under the Federal Deposit Insurance Corpora tion Improvement Act. There is no CET1 capital ratio or Tier 1 leverage ratio requirement for a bank holding company to be considered “well-capitalized.” Transitional Basel III minimum capital requirement and additional capital conservation buffer as defin ed by the Federal Reserve for calendar year 2017 for advanced approaches institutions. The additional capital conservation buffer does not apply to Tier 1 leverage ratio. |
Significant Credit Concentrat59
Significant Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Maximum credit exposure by category | The following table details the Company’s maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2017 2016 On-balance sheet: Individuals (a) $ 112 $ 98 Institutions (b) 20 18 Financial Services (c) 35 28 U.S. Government and agencies (d) 3 3 Total on-balance sheet 170 147 P rimarily reflects loans and receivables from global consumer and small business Card Members , which are governed by individual credit risk management. Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. Represents banks, broker-dealers, insurance companies and savings and loan associations. R epresent debt obligations of the U.S. Government and its agencies, states and municipalities and governm ent-sponsored entities. |
Card Member loans and receivables exposure | The following table details the Company’s Card Member loans and receivables exposure (including unused lines-of-credit available to Card Members as part of established lending product agreements ) in the United States and out side the United States as of December 31: (Billions) 2017 2016 On-balance sheet: U.S. $ 102 $ 93 Non-U.S. 25 20 On-balance sheet 127 113 Unused lines-of-credit: (a) U.S. 224 203 Non-U.S. 49 39 Total unused lines-of-credit $ 273 $ 242 Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Because the Company’s charge card products generally have no preset spending limit, the associated credit limit on charge products is not quantifiable, and therefore is not reflected in unused credit available to Card Members. |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Operating segment information | The following table presents certain selected financial information for the Company’s reportable operating segments and Corporate & Other as of or for the years ended December 31, 2017 , 2016 and 2015 : (Millions, except where indicated) USCS ICNS GCS GMS Corporate & Other (a) Consolidated 2017 Non-interest revenues $ 7,923 $ 5,052 $ 9,463 $ 4,333 $ 259 $ 27,030 Interest income 5,755 1,029 1,361 1 407 8,553 Interest expense 742 251 540 (262) 841 2,112 Total revenues net of interest expense 12,936 5,830 10,284 4,596 (175) 33,471 Total provisions 1,630 367 744 15 3 2,759 Pretax income (loss) from continuing operations 2,803 1,093 2,999 2,389 (1,870) 7,414 Income tax provision (benefit) 912 181 972 815 1,798 4,678 Net income (loss) 1,891 912 2,027 1,574 (3,668) 2,736 Total assets (billions) $ 94 $ 39 $ 53 $ 29 $ (34) $ 181 2016 Non-interest revenues $ 7,874 $ 4,785 $ 9,007 $ 4,235 $ 447 $ 26,348 Interest income 5,082 922 1,209 1 261 7,475 Interest expense 536 219 401 (237) 785 1,704 Total revenues net of interest expense 12,420 5,488 9,815 4,473 (77) 32,119 Total provisions (b) 1,065 325 604 25 7 2,026 Pretax income (loss) from continuing operations 3,881 818 2,945 2,295 (1,843) 8,096 Income tax provision (benefit) 1,368 163 1,036 837 (716) 2,688 Net income (loss) 2,513 655 1,909 1,458 (1,127) 5,408 Total assets (billions) $ 87 $ 36 $ 47 $ 24 $ (35) $ 159 2015 Non-interest revenues $ 8,479 $ 4,627 $ 8,930 $ 4,471 $ 389 $ 26,896 Interest income 5,198 945 1,175 1 226 7,545 Interest expense 488 235 365 (211) 746 1,623 Total revenues net of interest expense 13,189 5,337 9,740 4,683 (131) 32,818 Total provisions (b) 1,064 300 588 31 5 1,988 Pretax income (loss) from continuing operations 3,677 904 3,164 2,381 (2,188) 7,938 Income tax provision (benefit) 1,322 220 1,142 882 (791) 2,775 Net income (loss) 2,355 684 2,022 1,499 (1,397) 5,163 Total assets (billions) $ 93 $ 35 $ 45 $ 24 $ (36) $ 161 Corporate & Other includes adjustments and eliminations for intersegment activity. Beginning December 1, 2015 through to the sale completion dates, in the USCS and GCS segments, total provisions did not include credit costs related to Card Member loans and receivables HFS, which were reported in Other expenses through a valuation allowance adjustment. |
Total revenues net of interest expense and pretax income | The following table presents the Company’s total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment : (Millions) United States EMEA (a) JAPA (a) LACC (a) Other Unallocated (b) Consolidated 2017 Total revenues net of interest expense $ 24,737 $ 3,583 $ 3,204 $ 2,396 $ (449) $ 33,471 Pretax income (loss) from continuing operations 7,071 898 602 610 (1,767) 7,414 2016 Total revenues net of interest expense $ 24,133 $ 3,248 $ 3,052 $ 2,274 $ (588) $ 32,119 Pretax income (loss) from continuing operations 8,202 482 559 597 (1,744) 8,096 2015 Total revenues net of interest expense $ 24,927 $ 3,293 $ 2,791 $ 2,412 $ (605) $ 32,818 Pretax income (loss) from continuing operations 7,500 544 587 693 (1,386) 7,938 EMEA represents Europe, the Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and the Caribbean. Other Unallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Table Text Block [Abstract] | |
Condensed Statements of Income | PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2017 2016 2015 Revenues Non-interest revenues Other 358 391 400 Total non-interest revenues 358 391 400 Interest income 258 196 172 Interest expense 493 515 526 Total revenues net of interest expense 123 72 46 Expenses Salaries and employee benefits 362 388 341 Other 553 510 443 Total expenses 915 898 784 Pretax loss (792) (826) (738) Income tax benefit (354) (327) (268) Net loss before equity in net income of subsidiaries and affiliates (438) (499) (470) Equity in net income of subsidiaries and affiliates 3,174 5,907 5,633 Net income $ 2,736 $ 5,408 $ 5,163 |
Condensed Balance Sheets | PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2017 2016 Assets Cash and cash equivalents $ 4,726 $ 5,229 Investment securities 1 1 Equity in net assets of subsidiaries and affiliates 18,191 20,522 Accounts receivable, less reserves 103 513 Premises and equipment, less accumulated depreciation: 2017, $9; 2016, $96 5 30 Loans to subsidiaries and affiliates 11,664 7,620 Due from subsidiaries and affiliates 1,962 867 Other assets 252 277 Total assets 36,904 35,059 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 3,076 1,531 Due to subsidiaries and affiliates 175 619 Short-term debt of subsidiaries and affiliates 2,731 4,044 Long-term debt 12,695 8,364 Total liabilities 18,677 14,558 Shareholders’ Equity Preferred Shares ― ― Common shares 172 181 Additional paid-in capital 12,210 12,733 Retained earnings 8,273 10,371 Accumulated other comprehensive loss (2,428) (2,784) Total shareholders’ equity 18,227 20,501 Total liabilities and shareholders’ equity $ 36,904 $ 35,059 |
Condensed Cash Flows | PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2017 2016 2015 Cash Flows from Operating Activities Net income $ 2,736 $ 5,408 $ 5,163 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (3,174) (5,903) (5,633) Dividends received from subsidiaries and affiliates 5,755 4,999 5,331 Other operating activities, primarily with subsidiaries and affiliates 659 (102) 332 Net cash provided by operating activities 5,976 4,402 5,193 Cash Flows from Investing Activities Purchase of investments ― ― (3.00) Purchase of premises and equipment ― (1) (29) Loans to subsidiaries and affiliates (4,044) 4,142 (3,952) Investments in subsidiaries and affiliates ― (25) ― Net cash provided by (used in) investing activities (4,044) 4,116 (3,984) Cash Flows from Financing Activities Proceeds from long-term debt 5,900 ― ― Payments on long-term debt (1,500) (1,350) ― Short-term debt of subsidiaries and affiliates (1,313) (2,879) 986 Issuance of American Express preferred shares ― ― 841 Issuance of American Express common shares and other 129 176 192 Repurchase of American Express common shares (4,400) (4,430) (4,480) Dividends paid (1,251) (1,206) (1,172) Net cash (used in) provided by financing activities (2,435) (9,689) (3,633) Net (decrease) increase in cash and cash equivalents (503) (1,171) (2,424) Cash and cash equivalents at beginning of year 5,229 6,400 8,824 Cash and cash equivalents at end of year $ 4,726 $ 5,229 $ 6,400 |
Quarterly Financial Data (una62
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quartertly Financial Data [Abstract] | |
Quarterly financial data | QUARTERLY FINANCIAL DATA (UNAUDITED ) (Millions, except per share amounts) 2017 2016 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 8,839 $ 8,436 $ 8,307 $ 7,889 $ 8,022 $ 7,774 $ 8,235 $ 8,088 Pretax income 1,821 1,827 1,949 1,817 1,161 1,735 3,016 2,184 Net income (loss) (1,197) 1,356 1,340 1,237 825 1,142 2,015 1,426 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) $ (1.41) $ 1.51 $ 1.47 $ 1.34 $ 0.88 $ 1.21 $ 2.11 $ 1.45 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) (1.41) 1.50 1.47 1.34 0.88 1.20 2.10 1.45 Cash dividends declared per common share 0.35 0.35 0.32 0.32 0.32 0.32 0.29 0.29 Common share price: High 100.53 90.77 85.39 82.00 75.74 66.71 67.34 68.18 Low $ 90.04 $ 83.33 $ 75.51 $ 74.74 $ 59.50 $ 58.25 $ 57.15 $ 50.27 Represents net income, less (i) earnings allocated to participating share awards of $ 2 million, $ 11 million, $ 11 million and $ 10 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively, and $ 6 million, $ 9 million, $ 17 million and $ 11 million for the quarters ended December 31, September 30, June 30 and March 31, 2016 , respectively, and (ii) dividend s on preferred shares of $ 20 million, $ 21 million, $ 19 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively, and $ 19 million, $ 21 million, $ 19 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2016 , respectively. |
Summary of Significant Accoun63
Summary of Significant Accounting Policies (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Net foreign currency transaction gain | $ 9 | $ 18 | $ 68 |
Prior period revision | $ 361 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible Assets, Useful Life | 1 year | 6 years | |
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Intangible Assets, Useful Life | 22 years | 7 years | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 4 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Premises [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Premises [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun64
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Discount revenue | $ 19,186 | $ 18,680 | $ 19,297 |
Other | 1,732 | 2,029 | 2,033 |
Expenses | |||
Marketing and promotion | 3,217 | 3,650 | 3,109 |
Card Member rewards | 7,608 | 6,793 | $ 6,996 |
Revenue Recognition Standard [Member] | |||
Revenues | |||
Discount revenue | 3,707 | 3,699 | |
Other | (278) | (253) | |
Expenses | |||
Marketing and promotion | 2,350 | 2,420 | |
Card Member rewards | $ 1,079 | $ 1,026 |
Acquisitions and Divestitures T
Acquisitions and Divestitures Textual ( Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Business Events Textuals [Abstract] | ||||
Gain on sale of HFS Portfolios | $ (1,218) | |||
Other Expense [Member] | Goodwill Impairment Charges [Domain] | ||||
Business Events Textuals [Abstract] | ||||
Goodwill And Intangible Asset Impairment | $ 384 | |||
Other Expense [Member] | ||||
Business Events Textuals [Abstract] | ||||
Goodwill And Intangible Asset Impairment | 219 | |||
Other Expense [Member] | Write-down of technology and other assets to fair value [Member] | ||||
Business Events Textuals [Abstract] | ||||
Goodwill And Intangible Asset Impairment | $ 165 | |||
Costco [Member] | Other Expense [Member] | ||||
Business Events Textuals [Abstract] | ||||
Gain on sale of HFS Portfolios | $ (1,091) | |||
JetBlue [Member] | Other Expense [Member] | ||||
Business Events Textuals [Abstract] | ||||
Gain on sale of HFS Portfolios | $ (127) |
Loans and Accounts Receivable66
Loans and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans segment information | ||||
Card Member loans | $ 73,399 | $ 65,265 | ||
Balance, December 31 | 1,706 | 1,223 | $ 1,028 | $ 1,201 |
Card Member loans, net | 71,693 | 64,042 | ||
Other loans, net | 2,607 | 1,419 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 80 | 42 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans | 25,695 | 26,129 | ||
U S Consumer Services [Member] | ||||
Loans segment information | ||||
Card Member loans | 53,668 | 48,758 | ||
International Consumer and Network Services [Member] | ||||
Loans segment information | ||||
Card Member loans | 8,651 | 6,971 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans | $ 11,080 | $ 9,536 |
Loans and Accounts Receivable67
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable segment information | ||||
Card Member receivables | $ 54,047 | $ 47,308 | ||
Less: Reserve for losses | 521 | 467 | $ 462 | $ 465 |
Card Member receivables, net | 53,526 | 46,841 | ||
Other receivables, net | 3,163 | 3,232 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 31 | 45 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 8,919 | 8,874 | ||
U S Consumer Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 13,143 | 12,302 | ||
International Consumer and Network Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 7,803 | 5,966 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 33,101 | $ 29,040 |
Loans and Accounts Receivable68
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | $ 54,047 | $ 47,308 |
Card Member loans total aging | 73,399 | 65,265 |
U S Consumer Services [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 13,143 | 12,302 |
Card Member loans total aging | 53,668 | 48,758 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 52,961 | 48,216 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 12,993 | 12,158 |
U S Consumer Services [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 201 | 156 |
U S Consumer Services [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 53 | 45 |
U S Consumer Services [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 162 | 119 |
U S Consumer Services [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 33 | 30 |
U S Consumer Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 344 | 267 |
U S Consumer Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 64 | 69 |
International Consumer and Network Services [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 7,803 | 5,966 |
Card Member loans total aging | 8,651 | 6,971 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 8,530 | 6,863 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 7,703 | 5,888 |
International Consumer and Network Services [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 37 | 32 |
International Consumer and Network Services [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 29 | 22 |
International Consumer and Network Services [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 28 | 24 |
International Consumer and Network Services [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 21 | 15 |
International Consumer and Network Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 56 | 52 |
International Consumer and Network Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 50 | 41 |
Global Commercial Services [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 33,101 | 29,040 |
Card Member loans total aging | 11,080 | 9,536 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 10,892 | 9,378 |
Card Member receivables Total Aging | 11,025 | 9,484 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 15,868 | 14,047 |
Card Member loans total aging | 16,119 | 14,273 |
Global Small Business Services [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 43 | 34 |
Global Small Business Services [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 91 | 77 |
Global Small Business Services [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 31 | 23 |
Global Small Business Services [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 54 | 47 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 59 | 49 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 106 | 102 |
Global Corporate Payments [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 55 | 52 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member loans total aging | 16,982 | 14,767 |
Global Corporate Payments [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | $ 148 | $ 135 |
Loans and Accounts Receivable69
Loans and Accounts Receivable (Details 3) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U S Consumer Services [Member] | Card Member Loans [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.018 | 0.015 |
U S Consumer Services [Member] | Card Member Loans [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.021 | 0.018 |
U S Consumer Services [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.013 | 0.011 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.013 | 0.014 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.014 | 0.016 |
U S Consumer Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.011 | 0.012 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.021 | 0.02 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.025 | 0.025 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.014 | 0.016 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.02 | 0.02 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.021 | 0.022 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.013 | 0.013 |
Global Small Business Services [Member] | Card Member Loans [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.016 | 0.014 |
Global Small Business Services [Member] | Card Member Loans [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.019 | 0.017 |
Global Small Business Services [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.012 | 0.011 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.016 | 0.015 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.018 | 0.017 |
Global Small Business Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.016 | 0.016 |
Global Corporate Payments [Member] | Net Loss Ratio as a % of Charge Volume [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.001 | 0.0009 |
Global Corporate Payments [Member] | 90 days past billing as a percentage of receivables [Member} | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.009 | 0.009 |
Loans and Accounts Receivable70
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 327 | $ 260 | $ 216 |
Non-accrual loans | 199 | 169 | 150 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 261 | 230 | 199 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 186 | 171 | 113 |
Total impaired loans and receivables | 973 | 830 | 678 |
Unpaid principal balance | 892 | 767 | 632 |
Related allowance for Troubled Debt Restructurings | 60 | 88 | 73 |
Accounts Receivable and Loans (Textuals) [Abstract] | |||
Total loans and receivables modified as a TDR, non-accrual | 5 | 11 | 18 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 15 | 20 | 20 |
Out of Program TDR accounts that completed modification programs | 141 | 132 | 84 |
Out of Program TDR accounts not in compliance with modification programs | 45 | 39 | 29 |
U S Consumer Services [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 233 | 178 | 140 |
Non-accrual loans | 168 | 139 | 124 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 178 | 165 | 149 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 131 | 129 | 89 |
Total impaired loans and receivables | 710 | 611 | 502 |
Unpaid principal balance | 639 | 558 | 463 |
Related allowance for Troubled Debt Restructurings | 49 | 51 | 44 |
U S Consumer Services [Member] | Card Member Receivables [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 15 | 11 | 11 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 9 | 6 | 3 |
Total impaired loans and receivables | 24 | 17 | 14 |
Unpaid principal balance | 24 | 17 | 14 |
Related allowance for Troubled Debt Restructurings | 1 | 7 | 8 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 56 | 52 | 52 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 0 | 0 | 0 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 0 | 0 | 0 |
Total impaired loans and receivables | 56 | 52 | 52 |
Unpaid principal balance | 55 | 51 | 51 |
Related allowance for Troubled Debt Restructurings | 0 | 0 | 0 |
Global Commercial Services [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 38 | 30 | 24 |
Non-accrual loans | 31 | 30 | 26 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 31 | 26 | 23 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 27 | 26 | 18 |
Total impaired loans and receivables | 127 | 112 | 91 |
Unpaid principal balance | 118 | 103 | 85 |
Related allowance for Troubled Debt Restructurings | 8 | 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 | 0 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 37 | 28 | 16 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 19 | 10 | 3 |
Total impaired loans and receivables | 56 | 38 | 19 |
Unpaid principal balance | 56 | 38 | 19 |
Related allowance for Troubled Debt Restructurings | $ 2 | $ 21 | $ 12 |
Loans and Accounts Receivable71
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | $ 884 | $ 757 | $ 760 |
Interest income recognized | 102 | 81 | 73 |
U S Consumer Services [Member] | Card Member Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 643 | 559 | 569 |
Interest income recognized | 68 | 53 | 48 |
U S Consumer Services [Member] | Card Member Receivables [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 20 | 14 | 13 |
Interest income recognized | 0 | 0 | 0 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 56 | 53 | 54 |
Interest income recognized | 17 | 15 | 14 |
Global Commercial Services [Member] | Card Member Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 120 | 103 | 104 |
Interest income recognized | 17 | 13 | 11 |
Global Commercial Services [Member] | Card Member Receivables [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 45 | 28 | 20 |
Interest income recognized | $ 0 | $ 0 | $ 0 |
Loans and Accounts Receivable72
Loans and Accounts Receivable (Details 6) Account in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)AccountMbp | Dec. 31, 2016USD ($)AccountMbp | Dec. 31, 2015USD ($)AccountMbp | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 39 | 40 | 52 |
Aggregated Outstanding Balance | $ 307 | $ 343 | $ 432 |
Accounts Receivable and Loans Textuals [Abstract] | |||
Difference between pre- and post-modification outstanding balances | $ 0 | $ 0 | $ 0 |
U S Consumer Services [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 39 | 40 | |
Aggregated Outstanding Balance | $ 307 | $ 343 | |
Card Member Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 33 | 31 | 40 |
Aggregated Outstanding Balance | $ 224 | $ 220 | $ 285 |
Card Member Loans [Member] | U S Consumer Services [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Average Interest Rate Reduction By Class Of Financial Instrument | bp | 10 | 9 | 9 |
Card Member Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 6 | 9 | 12 |
Aggregated Outstanding Balance | $ 83 | $ 123 | $ 147 |
Card Member Receivables [Member] | U S Consumer Services [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 6 | 9 | |
Aggregated Outstanding Balance | $ 83 | $ 123 | |
Average Payment Term Extension | M | 28 | 18 | 12 |
Loans and Accounts Receivable73
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 9 | 10 | 11 |
Aggregated Outstanding Balance Upon Payment Default | $ 46 | $ 45 | $ 57 |
Card Member Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 6 | 7 | 8 |
Aggregated Outstanding Balance Upon Payment Default | $ 39 | $ 41 | $ 52 |
Card Member Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 3 | 3 | 3 |
Aggregated Outstanding Balance Upon Payment Default | $ 7 | $ 4 | $ 5 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the Card Member loans reserve for losses [Line Items] | |||
Balance, January 1 | $ 1,223 | $ 1,028 | $ 1,201 |
Card Member loans provisions | 1,868 | 1,235 | 1,190 |
Reserves transferred to Held for Sale portfolio | 0 | 0 | (224) |
Balance, December 31 | 1,706 | 1,223 | 1,028 |
Provisions for loans and lease losses deductions net write offs principal | |||
Changes in the Card Member loans reserve for losses [Line Items] | |||
Net Write-Offs Principal, Interest, Fees and Other | 1,181 | 930 | 967 |
Provisions for loans and lease losses deductions net write offs interest and fees | |||
Changes in the Card Member loans reserve for losses [Line Items] | |||
Net Write-Offs Principal, Interest, Fees and Other | 227 | 175 | 162 |
Provisions for loans and lease losses other | |||
Changes in the Card Member loans reserve for losses [Line Items] | |||
Net Write-Offs Principal, Interest, Fees and Other | $ 23 | $ 65 | $ (10) |
Reserves For Losses (Details 1)
Reserves For Losses (Details 1) - Card member loans evaluated separately and collectively for impairment [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Line Items] | |||
Card Member loans evaluated separately for impairment | $ 367 | $ 346 | $ 279 |
Reserves on Card Member loans evaluated separately for impairment | 57 | 60 | 53 |
Card Member loans evaluated collectively for impairment | 73,032 | 64,919 | 58,294 |
Reserves on Card Member loans evaluated collectively for impairment | $ 1,649 | $ 1,163 | $ 975 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable Reserve Roll Forward [line Items] | |||
Balance, January 1 | $ 467 | $ 462 | $ 465 |
Provision For Doubtful Accounts | 795 | 696 | 737 |
Other | (5) | (17) | (27) |
Balance, December 31 | 521 | 467 | 462 |
Principal Write-Offs [Member] | |||
Accounts Receivable Reserve Roll Forward [line Items] | |||
Card Member receivables net write-offs | $ (736) | $ (674) | $ (713) |
Reserves for Losses (Details 3)
Reserves for Losses (Details 3) - Card Member Receivables Evaluated Separately And Collectively For Impairment [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Line Items] | |||
Card Member receivables evaluated separately for impairment | $ 80 | $ 55 | $ 33 |
Reserves on Card Member receivables evaluated separately for impairment | 3 | 28 | 20 |
Card Member receivables evaluated collectively for impairment | 53,967 | 47,253 | 44,100 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 518 | $ 439 | $ 442 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for Card Member Receivables, Recoveries of Bad Debts | $ 359 | $ 391 | $ 401 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 409 | 379 | 418 |
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | (2) | 16 | 60 |
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 30 | 34 | 41 |
Loans Transferred From Held For Sale To Held For Investment | 265 | ||
Cardmember Reserves For Loans Held For Investments | 67 | ||
Foreign Currency Translation Adjustments [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivable reserves for losses - Other | 12 | (12) | (16) |
Card Member loans reserves for losses - other | 8 | (10) | (20) |
Other Items [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivable reserves for losses - Other | (17) | (5) | (11) |
Card Member loans reserves for losses - other | $ 15 | $ 8 | $ 10 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available for Sale Securities by Type | |||
Cost | $ 3,158 | $ 3,144 | $ 3,668 |
Gross Unrealized Gains | 16 | 35 | 100 |
Gross Unrealized Losses | (15) | (22) | (9) |
Estimated Fair Value | 3,159 | 3,157 | 3,759 |
State and municipal obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 1,369 | 2,019 | 2,813 |
Gross Unrealized Gains | 11 | 28 | 85 |
Gross Unrealized Losses | (3) | (11) | (5) |
Estimated Fair Value | 1,377 | 2,036 | 2,893 |
U.S. Government agency obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 11 | 12 | 2 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Estimated Fair Value | 11 | 12 | 2 |
U.S. Government treasury obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 1,051 | 465 | 406 |
Gross Unrealized Gains | 3 | 3 | 4 |
Gross Unrealized Losses | (9) | (8) | 1 |
Estimated Fair Value | 1,045 | 460 | 409 |
Corporate debt securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 28 | 19 | 29 |
Gross Unrealized Gains | 0 | 0 | 1 |
Gross Unrealized Losses | 0 | 0 | 0 |
Estimated Fair Value | 28 | 19 | 30 |
Mortgage-backed securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 67 | 92 | 117 |
Gross Unrealized Gains | 2 | 3 | 4 |
Gross Unrealized Losses | 0 | 0 | 0 |
Estimated Fair Value | 69 | 95 | 121 |
Equity securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 0 | 1 | 1 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Estimated Fair Value | 0 | 1 | 1 |
Foreign government bonds and obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 581 | 486 | 250 |
Gross Unrealized Gains | 0 | 1 | 6 |
Gross Unrealized Losses | 0 | (1) | 1 |
Estimated Fair Value | 581 | 486 | 255 |
Other [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 51 | 51 | 51 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | (3) | (2) | (2) |
Estimated Fair Value | $ 48 | $ 49 | $ 49 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 807 | $ 451 |
Estimated Fair Value, 12 months or more | 211 | 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 | (8) | (2) |
State and municipal obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 157 | 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 | (3) | (11) |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
U.S. Government treasury obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 650 | 298 |
Estimated Fair Value, 12 months or more | 175 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (3) | (8) |
Gross Unrealized Losses, 12 months or more | (6) | 0 |
Mortgage-backed securities [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 | 0 | 0 |
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 | 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 | 36 | 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 (Detail81
Investment Securities (Details 2) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)securities | Dec. 31, 2016USD ($)securities | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | 34 | 37 |
Number of securities, 12 months or more | securities | 13 | 6 |
Number of securities, total | securities | 47 | 43 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 807 | $ 451 |
Estimated Fair Value, 12 months or more | 211 | 32 |
Estimated Fair Value, Total | 1,018 | 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 | (8) | (2) |
Gross Unrealized Losses, Total | $ (14) | $ (21) |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 34 | 33 |
Number of securities, 12 months or more | securities | 13 | 6 |
Number of securities, total | securities | 47 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 807 | $ 411 |
Estimated Fair Value, 12 months or more | 211 | 32 |
Estimated Fair Value, Total | 1,018 | 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 | (8) | (2) |
Gross Unrealized Losses, Total | $ (14) | $ (15) |
Ratio Of Fair Value To Amortized Cost Less Than Ninety Percent [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 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 | $ 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 (Detail82
Investment Securities (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | $ 625 | |
Estimated Fair Value, Due after 1 year but within 5 years | 994 | |
Estimated Fair Value, Due after 5 years but within 10 years | 223 | |
Estimated Fair Value, Due after 10 years | 1,269 | |
Total | 3,111 | $ 3,108 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | ||
Due within 1 year | 625 | |
Due after 1 year but within 5 years | 1,000 | |
Due after 5 years but within 10 years | 222 | |
Due after 10 years | 1,260 | |
Total | $ 3,107 | |
Weighted average yields | ||
Weighted average yields, due within 1 year | 3.65% | |
Weighted averge yields, due after 1 years but within 5 years | 1.95% | |
Weighted averge yields, due after 5 years but within 10 years | 4.39% | |
Weighted average yield, due after 10 years | 4.47% | |
Weighted average yields, Total | 3.49% | |
State and municipal obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | $ 18 | |
Estimated Fair Value, Due after 1 year but within 5 years | 87 | |
Estimated Fair Value, Due after 5 years but within 10 years | 98 | |
Estimated Fair Value, Due after 10 years | 1,174 | |
Total | 1,377 | |
U.S. Government treasury obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 0 | |
Estimated Fair Value, Due after 1 year but within 5 years | 0 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 11 | |
Total | 11 | |
U.S. Government agency obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 30 | |
Estimated Fair Value, Due after 1 year but within 5 years | 879 | |
Estimated Fair Value, Due after 5 years but within 10 years | 125 | |
Estimated Fair Value, Due after 10 years | 11 | |
Total | 1,045 | |
Corporate debt securities [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 4 | |
Estimated Fair Value, Due after 1 year but within 5 years | 24 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 0 | |
Total | 28 | |
Mortgage-backed securities [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 0 | |
Estimated Fair Value, Due after 1 year but within 5 years | 0 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 69 | |
Total | 69 | |
Foreign government bonds and obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 573 | |
Estimated Fair Value, Due after 1 year but within 5 years | 4 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 4 | |
Total | $ 581 |
Investment Securities (Detail83
Investment Securities (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Securities (Details) [Abstract] | |||
Other-than-temporary impairments recognized during the period | $ 0 | $ 0 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securitized Trusts [Line Items] | ||
Restricted cash | $ 336 | $ 286 |
American Express Charge Trust [Member] | ||
Securitized Trusts [Line Items] | ||
Restricted cash | 7.1 | 3 |
American Express Lending Trust [Member] | ||
Securitized Trusts [Line Items] | ||
Restricted cash | 55 | 35 |
Restricted cash held by trusts [Member] | ||
Securitized Trusts [Line Items] | ||
Restricted cash | $ 62.1 | $ 38 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Dec. 31, 2017USD ($) |
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect Ownership of Variable Interests | $ 4.6 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect Ownership of Variable Interests | $ 11.6 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Assets Details [Abstract] | |||
Goodwill | $ 3,009 | $ 2,927 | $ 2,749 |
Deferred Tax Assets, Net | 1,647 | 2,336 | |
Prepaid expenses | 684 | 696 | |
Other intangible assets, at amortized cost | 899 | 868 | |
Community Reinvestment Act Tax Credit Investments | 1,023 | 824 | |
Restricted cash | 336 | 286 | |
Derivative assets | 124 | 555 | |
Other | 2,033 | 2,069 | |
Other assets | $ 9,755 | $ 10,561 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 2,927 | $ 2,749 |
Acquisitions | 19 | 201 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 63 | (23) |
Goodwill, Ending Balance | 3,009 | 2,927 |
U S Consumer Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 122 | 122 |
Acquisitions | 4 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 1 | 0 |
Goodwill, Ending Balance | 127 | 122 |
International Consumer and Network Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 604 | 620 |
Acquisitions | 15 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 41 | (16) |
Goodwill, Ending Balance | 660 | 604 |
Global Commercial Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 1,712 | 1,715 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 12 | (3) |
Goodwill, Ending Balance | 1,724 | 1,712 |
Global Merchant Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 489 | 291 |
Acquisitions | 0 | 201 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 9 | (3) |
Goodwill, Ending Balance | 498 | 489 |
Corporate and Other [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 0 | 1 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | 0 | (1) |
Goodwill, Ending Balance | $ 0 | $ 0 |
Other Assets (Details 2)
Other Assets (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Components of other intangible assets | ||
Gross Carrying Amount | $ 2,105 | $ 1,885 |
Accumulated Amortization | (1,206) | (1,017) |
Net Carrying Amount | 899 | 868 |
Customer Relationships [Member] | ||
Components of other intangible assets | ||
Gross Carrying Amount | 1,863 | 1,625 |
Accumulated Amortization | (1,073) | (895) |
Net Carrying Amount | 790 | 730 |
Other Contracts [Member] | ||
Components of other intangible assets | ||
Gross Carrying Amount | 242 | 260 |
Accumulated Amortization | (133) | (122) |
Net Carrying Amount | $ 109 | $ 138 |
Other Assets (Details 3)
Other Assets (Details 3) $ in Millions | Dec. 31, 2017USD ($) |
Estimated amortization expense for other intangible assets | |
Estimated amortization expense, 2018 | $ 221 |
Estimated amortization expense, 2019 | 183 |
Estimated amortization expense, 2020 | 156 |
Estimated amortization expense, 2021 | 126 |
Estimated amortization expense, 2022 | $ 98 |
Other Assets (Details Textuals)
Other Assets (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Assets [Line Items] | |||
Amortization period of acquired finite-lived intangible assets | 6 years | 7 years | |
Foreign deferred tax liabilities | $ 98 | $ 81 | |
Tax Credit Investments - Affordable Housing partnerships | 1,018 | 798 | |
Other Assets (Textuals) [Abstract] | |||
Accumulated goodwill impairment losses | 220 | 220 | |
Amortization expense | 207 | 194 | $ 183 |
Community Reinvestment Act Tax Credit Investments | 1,023 | 824 | |
Other Expense [Member] | |||
Other Assets [Line Items] | |||
Loss from Affordable Housing Projects Equity Method Investments | 112 | 43 | |
Income Tax Provision [Member] | |||
Other Assets [Line Items] | |||
QAH Tax Credits for equity method losses | 74 | 63 | |
Other Liabilities [Member] | |||
Other Assets [Line Items] | |||
QAH Investment Commitment | 373 | ||
Variable Interest Enterprise [Member] | |||
Other Assets [Line Items] | |||
Affordable Housing Program Off Balance Sheet Obligation | 66 | ||
Tax Credit Investments - Affordable Housing partnerships | 933 | $ 701 | |
Variable Interest Enterprise [Member] | Other Liabilities [Member] | |||
Other Assets [Line Items] | |||
QAH Investment Commitment | $ 352 | ||
Earliest Year [Member] | |||
Other Assets [Line Items] | |||
Affordable Housing Tax Credits Commitment Year To Be Paid | 2,018 | ||
Latest Year [Member] | |||
Other Assets [Line Items] | |||
Affordable Housing Tax Credits Commitment Year To Be Paid | 2,032 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
U.S.: | ||
Interest-bearing | $ 63,666 | $ 52,316 |
Non-interest-bearing | 395 | 367 |
Non-U.S.: | ||
Interest-bearing | 34 | 58 |
Non-interest-bearing | 357 | 301 |
Total customer deposits | 64,452 | 53,042 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 358 | 331 |
Non-U.S.: | ||
Non-interest-bearing | $ 344 | $ 285 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 31,915 | $ 30,980 |
Certificates of deposit - Direct | 290 | 291 |
Certificates of deposit - Third Party | 16,684 | 11,925 |
Sweep accounts - Third party | 14,777 | 9,120 |
Other Customer Deposits | ||
U.S. non-interest bearing deposits | 37 | 36 |
Non-US deposits | 47 | 74 |
Card Member credit balances - U.S. and non-U.S. | 702 | 616 |
Total customer deposits | $ 64,452 | $ 53,042 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Dec. 31, 2017USD ($) |
Time Deposits By Maturity | |
2,018 | $ 5,256 |
2,019 | 4,604 |
2,020 | 3,674 |
2,021 | 1,310 |
2,022 | 2,150 |
After 5 years | 0 |
Total | 16,994 |
United States [Member] | |
Time Deposits By Maturity | |
2,018 | 5,236 |
2,019 | 4,604 |
2,020 | 3,674 |
2,021 | 1,310 |
2,022 | 2,150 |
After 5 years | 0 |
Total | 16,974 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,018 | 20 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
After 5 years | 0 |
Total | $ 20 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 125 | $ 124 |
United States [Member] | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | 114 | 117 |
Non Us [Member] | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 11 | $ 7 |
Customer Deposits (Details Text
Customer Deposits (Details Textuals) | Dec. 31, 2017M |
Customer Deposits Textuals [Abstract] | |
Weighted Average Rate Domestic Deposit Certificates Of Deposit | 2.15% |
Weighted Average Maturity of Certificate of Deposits (in Months) | 45 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 3,278,000 | $ 5,581,000 |
Face amount of eligible notes issued | $ 2,000,000 | $ 2,000,000 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 2.05% | 1.20% |
Fees to maintain the secured financing facility | $ 9,200 | $ 8,600 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 1,168,000 | $ 2,993,000 |
Commercial Paper [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 1.54% | 1.13% |
Other Short Term Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 2,110,000 | $ 2,588,000 |
Other Short Term Borrowings [Member] | Bank Overdrafts [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 132,000 | $ 369,000 |
Other Short Term Borrowings [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 2.34% | 1.28% |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 55,804 | $ 46,990 |
Unamortized Underwriting Fees | $ (111) | $ (71) |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.44% | 2.39% |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 12,695 | $ 8,364 |
Fixed Rate Senior Notes Amount [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 10,377 | $ 6,932 |
Year-End Effective Interest Rates with Swaps | 3.17% | 4.24% |
Fixed Rate Senior Notes Amount [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.85% | 5.13% |
Fixed Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | $ 1,306 |
Year-End Effective Interest Rates with Swaps | 0.00% | 4.83% |
Fixed Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 5.99% |
Fixed Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 19,652 | $ 16,201 |
Year-End Effective Interest Rates with Swaps | 2.27% | 1.44% |
Fixed Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.24% | 1.98% |
Fixed Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | $ 1,000 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 6.00% |
Fixed Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 8,099 | $ 3,500 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 1.90% | 1.41% |
Floating Rate Senior Notes Amount [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 1,750 | $ 850 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 1.93% | 1.51% |
Floating Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 125 | $ 125 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Centurion Bank [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 1.89% | 1.26% |
Floating Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,550 | $ 4,350 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.09% | 1.52% |
Floating Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | $ 300 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Bank, FSB [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 0.96% |
Floating Rate Senior Notes Amount [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,200 | $ 4,200 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Charge Trust II [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 1.79% | 1.12% |
Floating Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 5,800 | $ 7,025 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.03% | 1.20% |
Floating Rate Subordinated Notes Amount [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 87 | $ 87 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Subordinated Notes Amount [Member] | American Express Charge Trust II [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.11% | 1.34% |
Floating Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 192 | $ 316 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.05% | 1.34% |
Convertible Subordinated Debt [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 598 | $ 598 |
Year-End Effective Interest Rates with Swaps | 2.66% | 1.92% |
Convertible Subordinated Debt [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.63% | 3.63% |
Borrowings under Bank Credit Facilities [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | $ 0 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Borrowings under Bank Credit Facilities [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 0.00% |
Fixed Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 206 | $ 0 |
Year-End Stated Rate on Debt | 2.21% | |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 0.00% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 23 | $ 24 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 5.59% | 5.62% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | Capitalized lease transactions | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 23 | $ 24 |
Floating Rate Borrowings [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 256 | $ 247 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Borrowings [Member] | Other Subsidiaries [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.42% | 0.44% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Aggregate annual maturities on long-term debt obligations | ||
2,018 | $ 11,934 | |
2,019 | 11,314 | |
2,020 | 17,612 | |
2,021 | 2,951 | |
2,022 | 7,576 | |
Thereafter | 5,535 | |
Total | 56,922 | |
Unamortized Underwriting Fees | (111) | $ (71) |
Unamortized Discount and Premium | (825) | |
Impacts due to Fair Value Hedge Accounting | (182) | |
Total long-term debt | 55,804 | 46,990 |
Parent Company [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,018 | 3,850 | |
2,019 | 641 | |
2,020 | 2,000 | |
2,021 | 0 | |
2,022 | 3,525 | |
Thereafter | 3,523 | |
Total | 13,539 | |
Total long-term debt | 12,695 | $ 8,364 |
American Express Centurion Bank [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,018 | 125 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Total | 125 | |
American Express Credit Corporation [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,018 | 3,654 | |
2,019 | 7,150 | |
2,020 | 6,600 | |
2,021 | 2,939 | |
2,022 | 2,050 | |
Thereafter | 2,000 | |
Total | 24,393 | |
American Express Bank, FSB [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
American Express Charge Trust II [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,018 | 1,287 | |
2,019 | 0 | |
2,020 | 3,000 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Total | 4,287 | |
American Express Lending Trust [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,018 | 2,885 | |
2,019 | 3,488 | |
2,020 | 5,924 | |
2,021 | 0 | |
2,022 | 2,001 | |
Thereafter | 0 | |
Total | 14,298 | |
Other Subsidiaries [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,018 | 133 | |
2,019 | 35 | |
2,020 | 88 | |
2,021 | 12 | |
2,022 | 0 | |
Thereafter | 12 | |
Total | $ 280 |
Debt (Details Textuals)
Debt (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Face amount of eligible notes from Charge Trust | $ 3,000 | ||
Debt (Textuals) [Abstract] | |||
Total bank lines of credit of the company | 3,500 | $ 3,000 | |
Unutilized total credit lines | 3,500 | 3,000 | |
Fees to maintain credit lines | $ 16.3 | 11.5 | |
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line | 1.25 | ||
Total Interest Paid | $ 2,000 | 1,700 | $ 1,600 |
Average Commercial Paper Outstanding | 1,076 | $ 491 | |
American Express Charge Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of eligible notes draw downs | $ 3,000 | ||
Specified date face amount of eligible notes issued | Jul. 15, 2020 | ||
American Express Lending Trust [Member] | |||
Debt Instrument [Line Items] | |||
Specified date face amount of eligible notes issued | Sep. 15, 2020 | ||
Fixed Rate Subordinated Note [Member] | American Express Lending Trust [Member] | |||
Debt Instrument [Line Items] | |||
Year-End Stated Rate on Debt | 2.21% |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of other liabilities | ||
Membership Rewards liability | $ 7,751 | $ 7,060 |
Book overdraft balances | 2,837 | 2,255 |
Employee-related liablities | 2,277 | 2,055 |
U.S. Tax Act Deemed Repatriation of Taxes | 1,703 | |
Rebate and reward accruals | 1,564 | 1,382 |
Deferred card and other fees, net | 1,554 | 1,411 |
Other | 4,462 | 4,614 |
Total | $ 22,148 | $ 18,777 |
Other Liabilities (Details 1)
Other Liabilities (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying amount of deferred charge card and other fees | ||
Deferred card and other fees | $ 1,996 | $ 1,767 |
Deferred direct acquisition costs | (280) | (204) |
Reserves for membership cancellations | (162) | (152) |
Total | $ 1,554 | $ 1,411 |
Stock Plans (Details)
Stock Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Summary of Stock Option and RSA Activity | |
Beginning Balance, Shares | shares | 10,272 |
Stock Options Granted, shares | shares | 869 |
Stock Options Exercised, shares | shares | (3,766) |
Forfeited, shares | shares | (102) |
Stock Options Expired, shares | shares | (11) |
Ending Balance, Shares | shares | 7,262 |
Beginning balance, weighted average exercise price | $ / shares | $ 47.68 |
Stock Options Granted, weighted average exercise price | $ / shares | 87.19 |
Stock Options Exercised, weighted average exercise price | $ / shares | 34.48 |
Stock Options Forfeitures, weighted average exercise price | $ / shares | 67.57 |
Stock Options Expired, weighted average exercise price | $ / shares | 86.11 |
Ending balance, weighted average exercise price | $ / shares | $ 58.92 |
Options vested and expected to vest, shares | shares | 7,194 |
Options vested and expected to vest, Weighted Average Exercise Price | $ / shares | $ 58.86 |
Options exercisable, shares | shares | 3,399 |
Options exercisable, Weighted Average Exercise Price | $ / shares | $ 45.93 |
Beginning balance, shares | shares | 7,500 |
RSAs Granted, shares | shares | 2,670 |
Vested, shares | shares | (2,335) |
Forfeited, shares | shares | (620) |
Ending balance, shares | shares | 7,215 |
Beginning Balance, Weighted Average Grant Price | $ / shares | $ 69.22 |
Granted, Weighted Average Grant Price | $ / shares | 77.8 |
RSAs Vested, Weighted Average Grant Price | $ / shares | 75.85 |
RSAs Forfeited, Weighted Average Grant Price | $ / shares | 68.8 |
Ending Balance, Weighted Average Grant Price | $ / shares | $ 70.29 |
Stock Plans (Details 1)
Stock Plans (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | |
Weighted-average remaining contractual life, Outstanding | 5 years 8 months |
Aggregate intrinsic value, Outstanding | $ 293 |
Weighted-average remaining contractual life, Exercisable | 3 years 1 month |
Aggregate intrinsic value, Exercisable | $ 181 |
Weighted-average remaining contractual life, Vested and Expected to Vest | 5 years 7 months |
Aggregate intrinsic value, Vested and Expected to Vest | $ 291 |
Stock Plans (Details 2)
Stock Plans (Details 2) - Stock Option [Member] - $ / shares | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Assumptions Used | ||||
Dividend yield | 1.58% | 1.80% | 1.90% | 1.10% |
Expected volatility | 21.41% | 24.00% | 25.00% | 37.00% |
Risk-free interest rate | 2.26% | 2.30% | 1.50% | 1.70% |
Expected life of stock option (in years) | 7 years | 6 years 11 months | 6 years 4 months | 6 years 8 months |
Weighted-average fair value per option | $ 19.18 | $ 18.18 | $ 13.67 | $ 29.2 |
Stock Plans (Details 3)
Stock Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 283 | $ 252 | $ 234 |
Stock Plans (Textuals) [Abstract] | |||
Total income tax benefit recognized in the income statement for stock-based compensation arrangements | 102 | 89 | 83 |
Restricted Stock Awards [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 170 | 178 | 190 |
Stock Plans (Textuals) [Abstract] | |||
Total unrecognized compensation cost | 178 | ||
Stock Option [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 21 | 14 | 12 |
Stock Plans (Textuals) [Abstract] | |||
Total unrecognized compensation cost | $ 21 | ||
Weighted-average remaining vesting period | 2 years 1 month | ||
Liability-Based Awards [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 92 | $ 60 | $ 32 |
Stock Plans (Details Textuals)
Stock Plans (Details Textuals) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Plans Details [Abstract] | |||
Common shares unissued and available for grant | 14 | 17 | 33 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of RSAs granted | $ 77.8 | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | Each stock option has an exercise price equal to the market price of the Company’s common stock on the date of grant and a contractual term of 10 years from the date of grant. Stock options generally vest 100 percent on the third anniversary of the grant date. | ||
Intrinsic value for options exercised | $ 197 | $ 51 | $ 87 |
Proceeds From Stock Options Exercised | 130 | 175 | 146 |
Employee Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options | $ 59 | 4 | 18 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | RSAs containing only service conditions generally vest 25 percent per year beginning with the first anniversary of the grant date. RSAs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics. | ||
Total fair value of shares vested | $ 180 | $ 171 | $ 247 |
Weighted-average grant date fair value of RSAs granted | $ 77.8 | $ 55.55 | $ 81.99 |
Liability-Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid upon vesting of PGs | $ 48 | $ 41 | $ 74 |
Retirement Plans (Details Textu
Retirement Plans (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined contribution retirement plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Total expense for all defined contribution retirement plans | $ 349 | $ 234 | $ 224 |
Defined benefit pension and other postretirement benefit plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Net funded status related to the defined benefit pension plans | 626 | 700 | |
Total expense for all defined contribution retirement plans | $ 25 | $ 24 | $ 23 |
Commitments and Contingencies (
Commitments and Contingencies (Details 1) $ in Millions | Dec. 31, 2017USD ($) |
Minimum aggregate rental commitment under all noncancelable operating leases | |
2,018 | $ 131 |
2,019 | 124 |
2,020 | 98 |
2,021 | 72 |
2,022 | 57 |
Thereafter | 831 |
Total | $ 1,313 |
Commitments and Contingencie109
Commitments and Contingencies (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies (Textuals) [Abstract] | |||
Amount of rentals subject to subleasing arrangements | $ 20 | ||
Future minimum payments on capital leases due, in 2018 | 4 | ||
Future minimum payments on capital leases due, in 2019 | 4 | ||
Future minimum payments on capital leases due, in 2020 | 4 | ||
Future minimum payments on capital leases due, in 2021 | 2 | ||
Future minimum payments on capital leases due, in 2022 | 1 | ||
Future minimum payments on capital leases due, thereafter | 10 | ||
Total rental expense | 151 | $ 169 | $ 187 |
Loss Contingencies [Line Items] | |||
Loss Contingency Estimate Of Possible Loss | 500 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Estimate Of Possible Loss | $ 0 |
Derivatives and Hedging Acti110
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | $ 210 | $ 765 |
Total fair value of derivative liabilities | 218 | 280 |
Total derivatives assets, net | 124 | 555 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset and liability netting | (80) | (157) |
Total derivatives assets, net | 124 | 555 |
Cash collateral netting, Assets | (6) | (54) |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 128 | 458 |
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 210 | 766 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 11 | 111 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 117 | 347 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 82 | 308 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset and liability netting | (80) | (157) |
Total derivatives liabilities, net | 93 | 55 |
Cash collateral netting, Liabilities | (45) | (68) |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 123 | 104 |
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 218 | 280 |
Other Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 34 | 69 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 89 | 35 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | $ 95 | $ 176 |
Derivatives and Hedging Acti111
Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative contract | $ (246) | $ (184) | $ (83) |
Hedged item | 206 | 163 | 93 |
Net hedge ineffectiveness | $ (40) | $ (21) | $ 10 |
Derivatives and Hedging Acti112
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||
Net reduction in interest expense on long term debt and other | $ 133 | $ 224 | $ 284 |
Margin on interest rate swap not netted | 146 | 169 | |
Derivative [Line Items] | |||
Equity investment | 48 | 49 | |
Total derivatives assets, net | 124 | 555 | |
Other Expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) in changes of Fair Value of Derivatives not designated as hedges | (29) | 1 | 83 |
Gain on embedded derivatives | 0 | 9 | 5 |
Fair Value Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 23,800 | 17,700 | |
Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 0 | ||
Net Investment Hedges [Member] | |||
Derivative [Line Items] | |||
Effective portion of gain (loss) on hedges | (370) | 281 | 577 |
Net Investment Hedges [Member] | Other Expense [Member] | |||
Derivative [Line Items] | |||
Amount Of Ineffectiveness On Net Investment Hedges | 0 | 0 | 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (31) | (5) | $ 0 |
Credit Valuation Adjustment [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 0 | 0 | |
Not Sold Or Repledged [Member] | |||
Derivative [Line Items] | |||
Securities received as collateral | 0 | 18 | |
Risk Exposure Low [Member] | |||
Derivative [Line Items] | |||
Total derivatives assets, net | 0 | 537 | |
Significant Counterparties [Member] | |||
Derivative [Line Items] | |||
Total derivatives assets, net | 0 | $ 0 | |
Total derivatives liabilities, net | $ 0 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment securities: | ||
Equity securities and other | $ 48 | $ 49 |
Debt securities | 3,111 | 3,108 |
Derivative assets | 210 | 765 |
Total assets | 3,369 | 3,922 |
Liabilities | ||
Derivative liabilities | 218 | 280 |
Total liabilities | 218 | 280 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities and other | 1 | 1 |
Debt securities | 1,045 | 460 |
Derivative assets | 0 | 0 |
Total assets | 1,046 | 461 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities and other | 47 | 48 |
Debt securities | 2,066 | 2,648 |
Derivative assets | 210 | 765 |
Total assets | 2,323 | 3,461 |
Liabilities | ||
Derivative liabilities | 218 | 280 |
Total liabilities | 218 | 280 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities and other | 0 | 0 |
Debt securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | $ 32,927 | $ 25,208 | $ 22,762 | $ 22,288 |
Financial assets carried at other than fair value | ||||
Other loans, net | 2,607 | 1,419 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 16,994 | |||
Long-term debt | 55,804 | 46,990 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 53,526 | 46,841 | ||
Card Member loans, net | 71,693 | 64,042 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 18,560 | 15,113 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 33,000 | 25,000 | ||
Other financial assets | 57,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 74,000 | 65,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 76,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 17,000 | 12,000 | ||
Long-term debt | 56,000 | 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 | 33,000 | 25,000 | ||
Other financial assets | 57,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 75,000 | 66,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 76,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 17,000 | 12,000 | ||
Long-term debt | 57,000 | 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 | 18,600 | 15,200 | ||
Fair Values (Textuals) [Abstract] | ||||
Card Member loans, net | 25,600 | 26,000 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents | 32,000 | 22,000 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Other 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 | 1,000 | 3,000 | ||
Other financial assets | 57,000 | 51,000 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 76,000 | 67,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 17,000 | 12,000 | ||
Long-term debt | 57,000 | 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 | ||||
Other loans, net | 75,000 | 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Assets measured at fair value for impairment | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | |
Amount of related liability | $ 52 | |
Return and Merchant Protection [Member] | ||
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 48,000 | |
Amount of related liability | $ 86 |
Common and Preferred Shares 117
Common and Preferred Shares and Warrants (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Authorized shares and a reconciliation of common shares issued and outstanding | |||
Common shares, authorized | 3,600 | 3,600 | 3,600 |
Shares issued and outstanding at beginning of year | 904 | 969 | 1,023 |
Common shares repurchased | (50) | (70) | (58.8) |
Other, primarily stock option exercises and RSAs granted | 5 | 5 | 5 |
Shares issued and outstanding as of December 31 | 859 | 904 | 969 |
Stockholders' Equity Note (Textuals) [Abstract] | |||
Shares reserved for issuance under employee stock and employee benefit plans | 29 |
Common and Preferred Shares 118
Common and Preferred Shares and Warrants (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Series B | |
Preferred Shares [Line Items] | |
Issuance Date | Nov. 10, 2014 |
Securities issued | 750 |
Depositary shares, issued | 750,000 |
Aggregate Liquidation Preference | $ | $ 750 |
Fixed dividend rate per annum | 5.20% |
Semi-annual fixed dividend, payment dates | Beginning May 15, 2015 |
Floating dividend rate per annum | 3 month LIBOR+ 3.428% |
Quarterly floating dividend, Payment Dates | Beginning February 15, 2020 |
Fixed to floating rate, conversion date | Nov. 15, 2019 |
Series C | |
Preferred Shares [Line Items] | |
Issuance Date | Mar. 2, 2015 |
Securities issued | 850 |
Depositary shares, issued | 850,000 |
Aggregate Liquidation Preference | $ | $ 850 |
Fixed dividend rate per annum | 4.90% |
Semi-annual fixed dividend, payment dates | Beginning September 15, 2015 |
Floating dividend rate per annum | 3 month LIBOR+ 3.285% |
Quarterly floating dividend, Payment Dates | Beginning June 15, 2020 |
Fixed to floating rate, conversion date | Mar. 15, 2020 |
Common and Preferred Shares 119
Common and Preferred Shares and Warrants (Details Textuals) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 26, 2016 | |
Share Repurchase [Domain] | ||||
Share Repurchase Commissions [Line Items] | ||||
Cost basis of common stock repurchased | $ 4,400,000,000 | $ 4,498,000,000 | $ 4,575,000,000 | |
Common share repurchases authorized | 150,000,000 | |||
Common shares repurchased | (50,000,000) | (70,000,000) | (58,800,000) | |
Common shares remaining under share repurchase authorizations | 85,000,000 | |||
Shares held as treasury shares | 2,900,000 | 3,000,000 | 3,000,000 | |
Cost basis of treasury stock | $ 217,000,000 | $ 197,000,000 | $ 242,000,000 | |
Preferred shares, authorized | 20,000,000 | 20,000,000 | ||
Preferred shares, par value | $ 1.67 | $ 1.67 | ||
Depositary Shares, Redemption Amount | $ 1,000 | |||
Warrants, issued and outstanding | 0 | 0 | 0 | |
Commissions paid included in cost basis of common stock repurchased | $ 2,900,000 | $ 1,200,000 | $ 1,100,000 | |
Cost basis of common stock repurchased | $ 4,300,000,000 | $ 4,400,000,000 | $ 4,500,000,000 |
Changes in Accumulated Other120
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | $ (2,784) | ||
Net unrealized pension and other postretirement benefit, net of tax | 62 | $ 19 | $ (32) |
Balances as of December 31 | (2,428) | (2,784) | |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Investment securities | 1 | 5 | (20) |
Foreign currency translation adjustments | (172) | (15) | (124) |
Net investment hedges | (215) | 139 | 340 |
Pension and other postretirement benefit losses | 7 | 37 | 0 |
Total tax impact | (384) | 134 | 196 |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | (2,784) | (2,534) | (1,919) |
Net unrealized gains (losses) | (7) | (45) | (37) |
Reclassification for realized (gains) losses into earnings | (7) | (2) | (2) |
Net translation of investments in foreign operations | 678 | (503) | (1,122) |
Net gains (losses) related to hedges of investment in foreign operations | (370) | 281 | 578 |
Net unrealized pension and other postretirement benefit, net of tax | 62 | 19 | (32) |
Net change in accumulated other comprehensive (loss) income | 356 | (250) | (615) |
Balances as of December 31 | (2,428) | (2,784) | (2,534) |
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | 7 | 58 | 96 |
Net unrealized gains (losses) | (7) | (45) | (37) |
Reclassification for realized (gains) losses into earnings | 0 | (6) | (1) |
Net translation of investments in foreign operations | 0 | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 | 0 |
Net unrealized pension and other postretirement benefit, net of tax | 0 | 0 | 0 |
Net change in accumulated other comprehensive (loss) income | (7) | (51) | (38) |
Balances as of December 31 | 0 | 7 | 58 |
Foreign Currency Translation Adjustments [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | (2,262) | (2,044) | (1,499) |
Net unrealized gains (losses) | 0 | 0 | 0 |
Reclassification for realized (gains) losses into earnings | (7) | 4 | (1) |
Net translation of investments in foreign operations | 678 | (503) | (1,122) |
Net gains (losses) related to hedges of investment in foreign operations | (370) | 281 | 578 |
Net unrealized pension and other postretirement benefit, net of tax | 0 | 0 | 0 |
Net change in accumulated other comprehensive (loss) income | 301 | (218) | (545) |
Balances as of December 31 | (1,961) | (2,262) | (2,044) |
Net Unrealized Pension and Other Postretirement Benefit Losses [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | (529) | (548) | (516) |
Net unrealized gains (losses) | 0 | 0 | 0 |
Reclassification for realized (gains) losses into earnings | 0 | 0 | 0 |
Net translation of investments in foreign operations | 0 | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 | 0 |
Net unrealized pension and other postretirement benefit, net of tax | 62 | 19 | (32) |
Net change in accumulated other comprehensive (loss) income | 62 | 19 | (32) |
Balances as of December 31 | $ (467) | $ (529) | $ (548) |
Changes in Accumulated Other121
Changes in Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other non-interest revenue | $ 1,732 | $ 2,029 | $ 2,033 |
Other expense | (5,776) | (5,162) | $ (6,793) |
Increase (decrease) due to amounts reclassified into earnings | 7 | 2 | |
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other non-interest revenue | 0 | 9 | |
Income tax provision for other non-interest revenue | 0 | (3) | |
Other non-interest revenue, net of taxes | 0 | 6 | |
Foreign Currency Translation Adjustments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense | (7) | (4) | |
Income tax benefit for other, net expense | 14 | 0 | |
Other, net expense, net of taxes | $ 7 | $ (4) |
Non-Interest Revenue and Exp122
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Foreign currency conversion fee revenue | $ 888 | $ 762 | $ 788 |
Delinquency fees | 851 | 809 | 852 |
Loyalty Partner-related fees | 453 | 410 | 379 |
Travel Commissions And Fees | 354 | 338 | 349 |
Service fees | 309 | 291 | 361 |
Other | 167 | 143 | 137 |
Total Other commissions and fees | $ 3,022 | $ 2,753 | $ 2,866 |
Non-Interest Revenue and Exp123
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Global Network Services partner revenues | $ 615 | $ 654 | $ 640 |
Other | 1,117 | 1,375 | 1,393 |
Total Other revenues | $ 1,732 | $ 2,029 | $ 2,033 |
Non-Interest Revenue and Exp124
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Professional services | $ 2,070 | $ 2,583 | $ 2,750 |
Occupancy and equipment | 2,019 | 1,838 | 1,854 |
Communications | 276 | 302 | 345 |
Gain on sale of HFS Portfolios | (1,218) | ||
Other | 1,411 | 1,657 | 1,844 |
Total Other, net | $ 5,776 | $ 5,162 | $ 6,793 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Charges | |||
Beginning Balance | $ 383 | $ 261 | $ 470 |
Restructuring charges, net of revisions | 42 | 329 | (26) |
Payments | (235) | (192) | (155) |
Other non-cash | 9 | (15) | (28) |
Ending Balance | 199 | 383 | 261 |
Employee Severance [Member] | |||
Restructuring Charges | |||
Beginning Balance | 360 | 238 | 435 |
Restructuring charges, net of revisions | 34 | 305 | (33) |
Payments | (219) | (171) | (141) |
Other non-cash | 11 | (12) | (23) |
Ending Balance | 186 | 360 | 238 |
Other Terminations [Member] | |||
Restructuring Charges | |||
Beginning Balance | 23 | 23 | 35 |
Restructuring charges, net of revisions | 8 | 24 | 7 |
Payments | (16) | (21) | (14) |
Other non-cash | (2) | (3) | (5) |
Ending Balance | $ 13 | $ 23 | $ 23 |
Restructuring Charges (Details
Restructuring Charges (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Restructuring charges, net of revisions | $ 42 | $ 329 | $ (26) |
Severance | 633 | ||
Other | 89 | ||
Restructuring charges, Total | 722 | ||
U S Consumer Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges, net of revisions | (8) | ||
Severance | 54 | ||
Other | 0 | ||
Restructuring charges, Total | 54 | ||
International Consumer and Network Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges, net of revisions | (6) | ||
Severance | 132 | ||
Other | 0 | ||
Restructuring charges, Total | 132 | ||
Global Commercial Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges, net of revisions | (10) | ||
Severance | 85 | ||
Other | 8 | ||
Restructuring charges, Total | 93 | ||
Global Merchant Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges, net of revisions | 5 | ||
Severance | 40 | ||
Other | 0 | ||
Restructuring charges, Total | 40 | ||
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges, net of revisions | 61 | ||
Severance | 322 | ||
Other | 81 | ||
Restructuring charges, Total | $ 403 |
Restructuring Charges (Detai127
Restructuring Charges (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring charges, net of revisions | $ 42 | $ 329 | $ (26) |
Restructuring Charges | 722 | ||
Corporate and Other [Member] | |||
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring charges, net of revisions | 61 | ||
Restructuring Charges | 403 | ||
Downsizing and Reorganizing Operations [Member] | |||
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring charges, net of revisions | 0 | 81 | 61 |
Employee Severance [Member] | |||
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring charges, net of revisions | 34 | $ 305 | $ (33) |
Employee Severance [Member] | Corporate and Other [Member] | |||
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring Charges | $ 336 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax expense: | |||
U.S. federal | $ 3,408 | $ 2,179 | $ 2,107 |
U.S. state and local | 259 | 272 | 335 |
Non-U.S. | 386 | 342 | 416 |
Total current income tax expense | 4,053 | 2,793 | 2,858 |
Deferred income tax expense (benefit): | |||
U.S. federal | 541 | (45) | (23) |
U.S. state and local | (7) | (8) | (5) |
Non-U.S. | 91 | (52) | (55) |
Total deferred income tax expense | 625 | (105) | (83) |
Income tax provision (benefit) | $ 4,678 | $ 2,688 | $ 2,775 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective tax rate reconciliation | |||
Combined tax at U.S. statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
(Decrease) increase in taxes resulting from: | |||
Tax-exempt income | (1.70%) | (1.70%) | (1.70%) |
State and local income taxes, net of federal benefit | 2.34% | 2.70% | 2.80% |
Non-U.S. subsidiaries earnings | (5.70%) | (2.00%) | (1.80%) |
Tax settlements | (0.74%) | (0.60%) | (0.20%) |
Non deductible expenses | 0.00% | 0.00% | 0.90% |
U.S. Tax Act | 34.80% | 0.00% | 0.00% |
Other | (0.90%) | (0.20%) | 0.00% |
Actual tax rates | 63.10% | 33.20% | 35.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Reserves not yet deducted for tax purposes | $ 2,724 | $ 3,889 |
Employee compensation and benefits | 403 | 595 |
Deferred Tax Assets, Other | 409 | 592 |
Gross deferred tax assets | 3,536 | 5,076 |
Valuation allowance | (46) | (54) |
Deferred tax assets after valuation allowance | 3,490 | 5,022 |
Deferred tax liabilities: | ||
Intangibles and fixed assets | 1,057 | 1,691 |
Deferred revenue | 306 | 441 |
Deferred interest | 183 | 305 |
Asset Securitization | 0 | 0 |
Investment in joint ventures | 137 | 209 |
Foreign deferred tax liabilities | 259 | 121 |
Gross deferred tax liabilities | 1,942 | 2,767 |
Net deferred tax assets | $ 1,548 | $ 2,255 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 974 | $ 870 | $ 909 |
Increases: | |||
Current year tax positions | 200 | 167 | 81 |
Tax positions related to prior years | 39 | 117 | 177 |
Decreases: | |||
Tax positions related to prior years | (289) | (81) | (256) |
Settlements with tax authorities | (77) | (76) | (15) |
Lapse of statute of limitations | (26) | (22) | (26) |
Effects of foreign currency translations | 0 | (1) | 0 |
Balance, December 31 | $ 821.4 | $ 974 | $ 870 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes Of Non Us Subsidiaries [Line Items] | ||||
Benefits related to the realization of certain foreign tax credits | $ 156 | |||
Decrease in tax rate related to the realization of certain foreign tax credits | 2.10% | |||
Income Taxes [Line items] | ||||
U.S. statutory federal income tax rate | 35.00% | 35.00% | 35.00% | |
Income taxes paid | $ 1,400 | $ 3,000 | $ 3,400 | |
Unrecognized tax benefits | 821.4 | 974 | 870 | $ 909 |
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | 324 | |||
Unrecognized tax benefits that affect effective tax rate | 723 | 516 | 502 | |
Unrecognized tax benefits income tax penalties and interest expense | (90) | (9) | (38) | |
Unrecognized tax benefits income tax penalties and interest accrued | 83 | 173 | ||
Tax positions related to prior years | (289) | $ (81) | $ (256) | |
U.S. Tax Act Discrete Net Charge | 2,600 | |||
U.S. Tax Act Deemed Repatriation of Taxes | 1,703 | |||
U.S. Tax Act Deferred Tax on distribution of foreign subs earnings | 300 | |||
U.S. Tax Act Remeasurement Of Deferred Tax Assets and Liabilities | 600 | |||
Additional Tax Deductions pending approval from IRS | 2,600 | |||
Tax Benefits pending approval from IRS | $ 360 | |||
Tax Year 2018 [Member] | ||||
Income Taxes [Line items] | ||||
U.S. statutory federal income tax rate | 21.00% | |||
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 (E133
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Basic and diluted: | ||||||||||||
Net Income from continuing operations | $ 2,736 | $ 5,408 | $ 5,163 | |||||||||
Dividends Preferred Stock | $ (20) | $ (21) | $ (19) | $ (21) | $ (19) | $ (21) | $ (19) | $ (21) | (81) | (80) | (62) | |
Earnings allocated to participating share awards | $ (2) | $ (11) | $ (11) | $ (10) | $ (6) | $ (9) | $ (17) | $ (11) | $ (21) | $ (43) | $ (38) | |
Denominator: | ||||||||||||
Basic: Weighted-average common stock | 883 | 933 | 999 | |||||||||
Add: Weighted-average stock options | 3 | 2 | 4 | |||||||||
Diluted | 886 | 935 | 1,003 | |||||||||
Basic EPS: | ||||||||||||
Basic | [1] | $ 2.98 | $ 5.67 | $ 5.07 | ||||||||
Diluted EPS: | ||||||||||||
Diluted | $ 2.97 | $ 5.65 | $ 5.05 | |||||||||
Stock Option [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per Share, amount | 0.6 | 2.4 | 0.5 | |||||||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 21 million, $ 43 million and $ 38 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 81 million, $ 80 million and $ 62 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Regulatory Matters and Capit134
Regulatory Matters and Capital Adequacy (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Regulatory Matters And Capital Adequacy [Abstract] | ||
Well-capitalized ratios | 10.00% | |
Minimum capital ratios | 9.30% | |
Leverage capital required, Well-capitalized ratios | 5.00% | |
Leverage capital required, Minimum capital ratios | 4.00% | |
Risk-based capital required, Well-capitalized ratios | 8.00% | |
Risk-based capital required, Minimum capital ratios | 7.30% | |
Common Equity Tier 1 required, Minimum capital ratio | 5.80% | |
Common Equity Tier 1 required, Well-capitalized ratios | 6.50% | |
Parent Company [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 14,721 | $ 17,665 |
Total capital | $ 17,142 | $ 19,893 |
Tier 1 capital ratio | 10.10% | 13.50% |
Total capital ratio | 11.80% | 15.20% |
Tier 1 leverage ratio | 8.60% | 11.57% |
CET1 capital | $ 13,189 | $ 16,134 |
CET1 capital ratio | 9.00% | 12.30% |
American Express Centurion Bank [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 5,954 | $ 6,134 |
Total capital | $ 6,547 | $ 6,600 |
Tier 1 capital ratio | 12.70% | 16.50% |
Total capital ratio | 14.00% | 17.80% |
Tier 1 leverage ratio | 10.20% | 16.20% |
CET1 capital | $ 5,954 | $ 6,134 |
CET1 capital ratio | 12.70% | 16.50% |
American Express Bank, FSB [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 6,065 | $ 6,681 |
Total capital | $ 6,653 | $ 7,194 |
Tier 1 capital ratio | 12.90% | 16.30% |
Total capital ratio | 14.20% | 17.50% |
Tier 1 leverage ratio | 11.70% | 13.90% |
CET1 capital | $ 6,065 | $ 6,681 |
CET1 capital ratio | 12.90% | 16.30% |
Regulatory Matters and Capit135
Regulatory Matters and Capital Adequacy (Details Textuals) $ in Billions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Restricted net assets of subsidiaries | $ 9.3 |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | 3.8 |
American Express Centurion Bank [Member] | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Dividends paid from retained earnings to its parent company | 1.9 |
American Express Bank, FSB [Member] | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Dividends paid from retained earnings to its parent company | $ 2.6 |
Significant Credit Concentra136
Significant Credit Concentrations (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 170 | $ 147 |
Individuals [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 112 | 98 |
Financial Institutions [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 20 | 18 |
United States Government And Agencies [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 3 | 3 |
Financial Services | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 35 | $ 28 |
Significant Credit Concentra137
Significant Credit Concentrations (Details 1) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Card Member loans and receivables exposure | ||
On-balance sheet | $ 170 | $ 147 |
Individuals [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 112 | 98 |
Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 127 | 113 |
Unused lines-of-credit | 273 | 242 |
U.S. [Member] | Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 102 | 93 |
Unused lines-of-credit | 224 | 203 |
Non-U.S. [Member] | Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 25 | 20 |
Unused lines-of-credit | $ 49 | $ 39 |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | $ 27,030 | $ 26,348 | $ 26,896 | ||||||||
Interest income | 8,553 | 7,475 | 7,545 | ||||||||
Interest expense | 2,112 | 1,704 | 1,623 | ||||||||
Total revenues, net of interest expense | $ 8,839 | $ 8,436 | $ 8,307 | $ 7,889 | $ 8,022 | $ 7,774 | $ 8,235 | $ 8,088 | 33,471 | 32,119 | 32,818 |
Total provision | 2,759 | 2,026 | 1,988 | ||||||||
Pretax income | 1,821 | $ 1,827 | $ 1,949 | $ 1,817 | 1,161 | $ 1,735 | $ 3,016 | $ 2,184 | 7,414 | 8,096 | 7,938 |
Income tax provision (benefit) | 4,678 | 2,688 | 2,775 | ||||||||
Net Income from continuing operations | 2,736 | 5,408 | 5,163 | ||||||||
Total assets | 181,159 | 158,893 | 181,159 | 158,893 | 161,000 | ||||||
U S Consumer Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 7,923 | 7,874 | 8,479 | ||||||||
Interest income | 5,755 | 5,082 | 5,198 | ||||||||
Interest expense | 742 | 536 | 488 | ||||||||
Total revenues, net of interest expense | 12,936 | 12,420 | 13,189 | ||||||||
Total provision | 1,630 | 1,065 | 1,064 | ||||||||
Pretax income | 2,803 | 3,881 | 3,677 | ||||||||
Income tax provision (benefit) | 912 | 1,368 | 1,322 | ||||||||
Net Income from continuing operations | 1,891 | 2,513 | 2,355 | ||||||||
Total assets | 94,200 | 87,400 | 94,200 | 87,400 | 92,700 | ||||||
International Consumer and Network Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 5,052 | 4,785 | 4,627 | ||||||||
Interest income | 1,029 | 922 | 945 | ||||||||
Interest expense | 251 | 219 | 235 | ||||||||
Total revenues, net of interest expense | 5,830 | 5,488 | 5,337 | ||||||||
Total provision | 367 | 325 | 300 | ||||||||
Pretax income | 1,093 | 818 | 904 | ||||||||
Income tax provision (benefit) | 181 | 163 | 220 | ||||||||
Net Income from continuing operations | 912 | 655 | 684 | ||||||||
Total assets | 38,900 | 35,700 | 38,900 | 35,700 | 35,100 | ||||||
Global Commercial Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 9,463 | 9,007 | 8,930 | ||||||||
Interest income | 1,361 | 1,209 | 1,175 | ||||||||
Interest expense | 540 | 401 | 365 | ||||||||
Total revenues, net of interest expense | 10,284 | 9,815 | 9,740 | ||||||||
Total provision | 744 | 604 | 588 | ||||||||
Pretax income | 2,999 | 2,945 | 3,164 | ||||||||
Income tax provision (benefit) | 972 | 1,036 | 1,142 | ||||||||
Net Income from continuing operations | 2,027 | 1,909 | 2,022 | ||||||||
Total assets | 52,600 | 46,500 | 52,600 | 46,500 | 45,100 | ||||||
Global Merchant Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 4,333 | 4,235 | 4,471 | ||||||||
Interest income | 1 | 1 | 1 | ||||||||
Interest expense | (262) | (237) | (211) | ||||||||
Total revenues, net of interest expense | 4,596 | 4,473 | 4,683 | ||||||||
Total provision | 15 | 25 | 31 | ||||||||
Pretax income | 2,389 | 2,295 | 2,381 | ||||||||
Income tax provision (benefit) | 815 | 837 | 882 | ||||||||
Net Income from continuing operations | 1,574 | 1,458 | 1,499 | ||||||||
Total assets | 29,000 | 24,300 | 29,000 | 24,300 | 23,500 | ||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 259 | 447 | 389 | ||||||||
Interest income | 407 | 261 | 226 | ||||||||
Interest expense | 841 | 785 | 746 | ||||||||
Total revenues, net of interest expense | (175) | (77) | (131) | ||||||||
Total provision | 3 | 7 | 5 | ||||||||
Pretax income | (1,870) | (1,843) | (2,188) | ||||||||
Income tax provision (benefit) | 1,798 | (716) | (791) | ||||||||
Net Income from continuing operations | (3,668) | (1,127) | (1,397) | ||||||||
Total assets | $ (33,700) | $ (34,900) | $ (33,700) | $ (34,900) | $ (36,400) |
Reportable Operating Segements
Reportable Operating Segements and Geographic Operations (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | $ 8,839 | $ 8,436 | $ 8,307 | $ 7,889 | $ 8,022 | $ 7,774 | $ 8,235 | $ 8,088 | $ 33,471 | $ 32,119 | $ 32,818 |
Pretax income | $ 1,821 | $ 1,827 | $ 1,949 | $ 1,817 | $ 1,161 | $ 1,735 | $ 3,016 | $ 2,184 | 7,414 | 8,096 | 7,938 |
United States Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 24,737 | 24,133 | 24,927 | ||||||||
Pretax income | 7,071 | 8,202 | 7,500 | ||||||||
EMEA Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 3,583 | 3,248 | 3,293 | ||||||||
Pretax income | 898 | 482 | 544 | ||||||||
JAPA Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 3,204 | 3,052 | 2,791 | ||||||||
Pretax income | 602 | 559 | 587 | ||||||||
LACC Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 2,396 | 2,274 | 2,412 | ||||||||
Pretax income | 610 | 597 | 693 | ||||||||
Other Unallocated [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | (449) | (588) | (605) | ||||||||
Pretax income | $ (1,767) | $ (1,744) | $ (1,386) |
Parent Company (Details)
Parent Company (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-interest revenues | |||||||||||
Gain on sale of securities | $ 0 | $ 0 | $ 0 | ||||||||
Other | 1,732 | 2,029 | 2,033 | ||||||||
Total non-interest revenues | 27,030 | 26,348 | 26,896 | ||||||||
Interest income | 8,553 | 7,475 | 7,545 | ||||||||
Interest expense | 2,112 | 1,704 | 1,623 | ||||||||
Total revenues net of interest expense | $ 8,839 | $ 8,436 | $ 8,307 | $ 7,889 | $ 8,022 | $ 7,774 | $ 8,235 | $ 8,088 | 33,471 | 32,119 | 32,818 |
Expenses | |||||||||||
Salaries and employee benefits | 5,258 | 5,259 | 4,976 | ||||||||
Other | 5,776 | 5,162 | 6,793 | ||||||||
Total Expenses | 23,298 | 21,997 | 22,892 | ||||||||
Pretax loss | 1,821 | 1,827 | 1,949 | 1,817 | 1,161 | 1,735 | 3,016 | 2,184 | 7,414 | 8,096 | 7,938 |
Income tax provision (benefit) | 4,678 | 2,688 | 2,775 | ||||||||
Net income | $ (1,197) | $ 1,356 | $ 1,340 | $ 1,237 | $ 825 | $ 1,142 | $ 2,015 | $ 1,426 | 2,736 | 5,408 | 5,163 |
Parent Company [Member] | |||||||||||
Non-interest revenues | |||||||||||
Gain on sale of securities | 0 | 0 | 0 | ||||||||
Other | 358 | 391 | 400 | ||||||||
Total non-interest revenues | 358 | 391 | 400 | ||||||||
Interest income | 258 | 196 | 172 | ||||||||
Interest expense | 493 | 515 | 526 | ||||||||
Total revenues net of interest expense | 123 | 72 | 46 | ||||||||
Expenses | |||||||||||
Salaries and employee benefits | 362 | 388 | 341 | ||||||||
Other | 553 | 510 | 443 | ||||||||
Total Expenses | 915 | 898 | 784 | ||||||||
Pretax loss | (792) | (826) | (738) | ||||||||
Income tax provision (benefit) | (354) | (327) | (268) | ||||||||
Net loss before equity in net income of subsidiaries and affiliates | (438) | (499) | (470) | ||||||||
Equity in net income of subsidiaries and affiliates | 3,174 | 5,907 | 5,633 | ||||||||
Net income | $ 2,736 | $ 5,408 | $ 5,163 |
Parent Company (Details 1)
Parent Company (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 32,927 | $ 25,208 | $ 22,762 | $ 22,288 |
Investment securities | 3,159 | 3,157 | 3,759 | |
Accounts receivable, less reserves | 53,526 | 46,841 | ||
Premises and equipment, less accumulated depreciation | 4,329 | 4,433 | ||
Other assets | 9,755 | 10,561 | ||
Total assets | 181,159 | 158,893 | 161,000 | |
Liabilities and Shareholders' Equity | ||||
Long-term debt | 55,804 | 46,990 | ||
Total liabilities | 162,932 | 138,392 | ||
Shareholders' Equity | ||||
Preferred shares | 0 | 0 | ||
Common shares | 172 | 181 | ||
Additional paid-in capital | 12,210 | 12,733 | ||
Retained earnings | 8,273 | 10,371 | ||
Accumulated other comprehensive loss | (2,428) | (2,784) | ||
Total shareholders' equity | 18,227 | 20,501 | 20,673 | 20,673 |
Total liabilities and shareholders' equity | 181,159 | 158,893 | ||
Parent Company Details (Textuals) [Abstract] | ||||
Premises and equipment, accumulated depreciation | 5,455 | 5,145 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 4,726 | 5,229 | $ 6,400 | $ 8,824 |
Investment securities | 1 | 1 | ||
Equity in net assets of subsidiaries and affiliates | 18,191 | 20,522 | ||
Accounts receivable, less reserves | 103 | 513 | ||
Premises and equipment, less accumulated depreciation | 5 | 30 | ||
Loans to subsidiaries and affiliates | 11,664 | 7,620 | ||
Due from subsidiaries and affiliates | 1,962 | 867 | ||
Other assets | 252 | 277 | ||
Total assets | 36,904 | 35,059 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable and other liabilities | 3,076 | 1,531 | ||
Due to subsidiaries and affiliates | 175 | 619 | ||
Short-term debt of subsidiaries and affiliates | 2,731 | 4,044 | ||
Long-term debt | 12,695 | 8,364 | ||
Total liabilities | 18,677 | 14,558 | ||
Shareholders' Equity | ||||
Preferred shares | 0 | 0 | ||
Common shares | 172 | 181 | ||
Additional paid-in capital | 12,210 | 12,733 | ||
Retained earnings | 8,273 | 10,371 | ||
Accumulated other comprehensive loss | (2,428) | (2,784) | ||
Total shareholders' equity | 18,227 | 20,501 | ||
Total liabilities and shareholders' equity | 36,904 | 35,059 | ||
Parent Company Details (Textuals) [Abstract] | ||||
Premises and equipment, accumulated depreciation | $ 9 | $ 96 |
Parent Company (Details 2)
Parent Company (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ (1,197) | $ 1,356 | $ 1,340 | $ 1,237 | $ 825 | $ 1,142 | $ 2,015 | $ 1,426 | $ 2,736 | $ 5,408 | $ 5,163 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||
Gain on sale of securities | 0 | 0 | 0 | ||||||||
Premium paid on debt exchange | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 13,540 | 8,291 | 10,706 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of investments | (2,612) | (2,162) | (1,713) | ||||||||
Purchase of premises and equipment | (1,062) | (1,375) | (1,341) | ||||||||
Net cash (used in) provided by investing activities | (18,273) | 1,868 | (8,193) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from long-term borrowings | 32,764 | 8,824 | 9,923 | ||||||||
Principal payments on long term debt | (24,082) | (9,848) | (19,246) | ||||||||
Issuance of American Express preferred shares | 0 | 0 | 841 | ||||||||
Issuance of American Express common shares and other | 129 | 177 | 193 | ||||||||
Repurchase of American Express common shares | (4,300) | (4,400) | (4,500) | ||||||||
Dividends paid | (1,251) | (1,207) | (1,172) | ||||||||
Net cash provided by (used in) financing activities | 12,245 | (7,599) | (1,763) | ||||||||
Net increase (decrease) in cash and cash equivalents | 7,719 | 2,446 | 474 | ||||||||
Cash and cash equivalents at beginning of year | 25,208 | 22,762 | 25,208 | 22,762 | 22,288 | ||||||
Cash and cash equivalents at end of year | 32,927 | 25,208 | 32,927 | 25,208 | 22,762 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 2,736 | 5,408 | 5,163 | ||||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||
Equity in net income of subsidiaries and affiliates | (3,174) | (5,903) | (5,633) | ||||||||
Dividends received from subsidiaries and affiliates | 5,755 | 4,999 | 5,331 | ||||||||
Gain on sale of securities | 0 | 0 | 0 | ||||||||
Other operating activities, primarily with subsidiaries and affiliates | 659 | (102) | 332 | ||||||||
Premium paid on debt exchange | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 5,976 | 4,402 | 5,193 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of investments | 0 | 0 | 3 | ||||||||
Purchase of premises and equipment | 0 | (1) | (29) | ||||||||
Loans to subsidiaries and affiliates | (4,044) | 4,142 | (3,952) | ||||||||
Investments in subsidiaries and affiliates | 0 | (25) | 0 | ||||||||
Net cash (used in) provided by investing activities | (4,044) | 4,116 | (3,984) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from long-term borrowings | 5,900 | 0 | 0 | ||||||||
Principal payments on long term debt | (1,500) | (1,350) | 0 | ||||||||
Short-term debt of subsidiaries and affiliates | (1,313) | (2,879) | 986 | ||||||||
Issuance of American Express preferred shares | 0 | 0 | 841 | ||||||||
Issuance of American Express common shares and other | 129 | 176 | 192 | ||||||||
Repurchase of American Express common shares | (4,400) | (4,430) | (4,480) | ||||||||
Dividends paid | (1,251) | (1,206) | (1,172) | ||||||||
Net cash provided by (used in) financing activities | (2,435) | (9,689) | (3,633) | ||||||||
Net increase (decrease) in cash and cash equivalents | (503) | (1,171) | (2,424) | ||||||||
Cash and cash equivalents at beginning of year | $ 5,229 | $ 6,400 | 5,229 | 6,400 | 8,824 | ||||||
Cash and cash equivalents at end of year | $ 4,726 | $ 5,229 | $ 4,726 | $ 5,229 | $ 6,400 |
Quarterly Financial Data (Un143
Quarterly Financial Data (Unaudited) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | ||
Disclosure of quarterly financial data | ||||||||||||
Total revenues net of interest expense | $ | $ 8,839,000,000 | $ 8,436,000,000 | $ 8,307,000,000 | $ 7,889,000,000 | $ 8,022,000,000 | $ 7,774,000,000 | $ 8,235,000,000 | $ 8,088,000,000 | $ 33,471,000,000 | $ 32,119,000,000 | $ 32,818,000,000 | |
Pretax income | $ | 1,821,000,000 | 1,827,000,000 | 1,949,000,000 | 1,817,000,000 | 1,161,000,000 | 1,735,000,000 | 3,016,000,000 | 2,184,000,000 | 7,414,000,000 | 8,096,000,000 | 7,938,000,000 | |
Net income | $ | $ (1,197,000,000) | $ 1,356,000,000 | $ 1,340,000,000 | $ 1,237,000,000 | $ 825,000,000 | $ 1,142,000,000 | $ 2,015,000,000 | $ 1,426,000,000 | $ 2,736,000,000 | $ 5,408,000,000 | $ 5,163,000,000 | |
Earnings per Common Share | ||||||||||||
Basic | $ / shares | [1] | $ 2.98 | $ 5.67 | $ 5.07 | ||||||||
Net income attributable to common shareholders | $ / shares | $ (1.41) | $ 1.51 | $ 1.47 | $ 1.34 | $ 0.88 | $ 1.21 | $ 2.11 | $ 1.45 | ||||
Earnings per Common Share | ||||||||||||
Diluted | $ / shares | 2.97 | 5.65 | 5.05 | |||||||||
Net income attributable to common shareholders | $ / shares | (1.41) | 1.5 | 1.47 | 1.34 | 0.88 | 1.2 | 2.1 | 1.45 | ||||
Cash dividends declared per common share | $ / shares | $ 0.35 | $ 0.35 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 0.29 | $ 1.34 | $ 1.22 | $ 1.13 | |
Common share price: | ||||||||||||
High | $ | 100.53 | 90.77 | 85.39 | 82 | 75.74 | 66.71 | 67.34 | 68.18 | ||||
Low | $ | 90.04 | 83.33 | 75.51 | 74.74 | 59.5 | 58.25 | 57.15 | 50.27 | ||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 21 million, $ 43 million and $ 38 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and (ii) dividends on preferred shares of $ 81 million, $ 80 million and $ 62 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data (Textuals) [Abstract] | |||||||||||
Earnings allocated to participating share awards | $ 2 | $ 11 | $ 11 | $ 10 | $ 6 | $ 9 | $ 17 | $ 11 | $ 21 | $ 43 | $ 38 |
Dividends Preferred Stock | $ 20 | $ 21 | $ 19 | $ 21 | $ 19 | $ 21 | $ 19 | $ 21 | $ 81 | $ 80 | $ 62 |