Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 18, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN EXPRESS COMPANY | |
Trading Symbol | AXP | |
Entity Central Index Key | 4,962 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 860,362,205 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Non-interest revenues | |||
Discount revenue | $ 5,889 | $ 5,387 | |
Net card fees | 830 | 748 | |
Other fees and commissions | 781 | 711 | |
Other | 377 | 361 | |
Total non-interest revenues | 7,877 | 7,207 | |
Interest income | |||
Interest on loans | 2,326 | 1,862 | |
Interest and dividends on investment securities | 21 | 23 | |
Deposits with banks and other | 115 | 60 | |
Total interest income | 2,462 | 1,945 | |
Interest expense | |||
Deposits | 270 | 149 | |
Long-term debt and other | 351 | 294 | |
Total interest expense | 621 | 443 | |
Net interest income | 1,841 | 1,502 | |
Total revenues net of interest expense | 9,718 | 8,709 | |
Provisions for losses | |||
Charge card | 242 | 213 | |
Card Member loans | 499 | 337 | |
Other | 34 | 23 | |
Total provisions for losses | 775 | 573 | |
Total revenues net of interest expense after provisions for losses | 8,943 | 8,136 | |
Expenses | |||
Marketing and business development | 1,345 | 1,285 | |
Card Member Rewards | 2,347 | 2,061 | |
Card Member services | 409 | 317 | |
Salaries and employee benefits | 1,326 | 1,264 | |
Other, net | 1,434 | 1,370 | |
Total expenses | 6,861 | 6,297 | |
Pretax income | 2,082 | 1,839 | |
Income tax provision | 448 | 588 | |
Net income | $ 1,634 | $ 1,251 | |
Earnings Per Common Share, Basic (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [1] | $ 1.86 | $ 1.36 |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [1] | $ 1.86 | $ 1.35 |
Average common shares outstanding for earnings per common share: | |||
Basic | 859 | 899 | |
Diluted | 861 | 903 | |
Cash dividends declared per common share | $ 0.35 | $ 0.32 | |
[1] | Rep resents net income less (i) earnings allocated to participating share awards of $ 13 million and $ 10 million for the three months ended March 31 , 2018 and 2017 , respectively, and (ii) dividends on preferred shares of $ 21 million for both the three months ended March 31 , 2018 and 2017 . |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Income [Abstract] | ||
Earnings allocated to participating share awards | $ 13 | $ 10 |
Dividends Preferred Stock | $ 21 | $ 21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 1,634 | $ 1,251 |
Other comprehensive income (loss): | ||
Net unrealized securities (losses) gains, net of tax | (11) | 6 |
Foreign currency translation adjustments, net of tax | 30 | 316 |
Net unrealized Pension and other postretirement benefits, net of tax | 28 | (8) |
Other comprehensive income (loss) | 47 | 314 |
Comprehensive income | $ 1,681 | $ 1,565 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | ||
Cash and due from banks | $ 3,627 | $ 5,148 |
Interest-bearing deposits in other banks (includes securities purchased under resale agreements) | 27,315 | 27,709 |
Short-term investment securities | 150 | 70 |
Total cash and cash equivalents | 31,092 | 32,927 |
Accounts receivable | ||
Card Member receivables (includes gross receivables available to settle obligations of consolidated variable interest entity), less reserves | 53,676 | 53,526 |
Other receivables, less reserves | 3,194 | 3,209 |
Loans | ||
Card Member loans (includes gross loans available to settle obligations of consolidated variable interest entity), less reserves | 71,034 | 71,693 |
Other loans, less reserves | 2,872 | 2,607 |
Investment securities | 3,388 | 3,159 |
Premises and equipment, less accumulated depreciation and amortization | 4,271 | 4,329 |
Other assets (includes restricted cash of consolidated variable interest entities) | 10,429 | 9,746 |
Total assets | 179,956 | 181,196 |
Liabilities | ||
Customer deposits | 66,665 | 64,452 |
Travelers Cheques and other prepaid products | 2,435 | 2,555 |
Accounts payable | 14,038 | 14,657 |
Short-term borrowings (includes debt issued by consolidated variable interest entity) | 1,852 | 3,278 |
Long-term debt (includes debt issued by consolidated variable interest entities) | 52,461 | 55,804 |
Other liabilities | 22,892 | 22,189 |
Total liabilities | 160,343 | 162,935 |
Shareholders' Equity | ||
Preferred shares | 0 | 0 |
Common shares | 172 | 172 |
Additional paid-in capital | 12,225 | 12,210 |
Retained earnings | 9,597 | 8,307 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, net of tax | (11) | 0 |
Foreign currency translation adjustments, net of tax | (1,931) | (1,961) |
Net unrealized pension and other postretirement benefits, net of tax | (439) | (467) |
Total accumulated other comprehensive loss | (2,381) | (2,428) |
Total shareholders' equity | 19,613 | 18,261 |
Total liabilities and shareholders' equity | $ 179,956 | $ 181,196 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Card Member receivables, gross | $ 54,241 | $ 54,047 |
Card Member loans, gross | 72,820 | 73,399 |
Other assets | 10,429 | 9,746 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | 49 | 48 |
Accounts receivable | ||
Card Member receivables, reserves | 565 | 521 |
Other receivables, reserves | 31 | 31 |
Loans | ||
Card Member loans, reserves | 1,786 | 1,706 |
Other loans, reserves | 91 | 80 |
Accumulated depreciation and amortization | 5,732 | 5,455 |
Restricted cash included in Other assets per Consolidated Balance Sheet | 415 | 337 |
Short Term Borrowings | 1,852 | 3,278 |
Long-term Debt | $ 52,461 | $ 55,804 |
Common shares, par value | $ 0.2 | $ 0.2 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 860,000,000 | 859,000,000 |
Common shares, outstanding | 860,000,000 | 859,000,000 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock Shares Issued | 1,600 | 1,600 |
Preferred Stock, Shares Outstanding | 1,600 | 1,600 |
Preferred shares, par value | $ 1.667 | $ 1.667 |
Accumulated other comprehensive (loss) income | ||
Net unrealized securities gains, tax | $ (2) | $ 1 |
Foreign currency translation adjustments, tax | (415) | (363) |
Net unrealized pension and other postretirement benefits, tax | (176) | (179) |
Variable Interest Entity | ||
Card Member receivables, gross | 7,807 | 8,919 |
Card Member loans, gross | 24,058 | 25,695 |
Loans | ||
Restricted cash included in Other assets per Consolidated Balance Sheet | 147 | 62 |
Short Term Borrowings | 0 | 0 |
Long-term Debt | $ 15,800 | $ 18,560 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Cash Flows from Operating Activities | |||
Net income | $ 1,634 | $ 1,251 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Provisions for losses | 775 | 573 | |
Depreciation and amortization | 348 | 296 | |
Deferred taxes and other | (254) | 18 | |
Stock-based compensation | 84 | 89 | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other receivables | 122 | 786 | |
Other assets | (85) | 351 | |
Accounts payable and other liabilities | (431) | (2,072) | |
Travelers Cheques and other prepaid products | (130) | (132) | |
Net cash provided by operating activities | 2,063 | 1,160 | |
Cash Flows from Investing Activities | |||
Sales of available-for-sale investment securities | 0 | 0 | |
Maturities and redemptions of available-for-sale investment securities | 886 | 860 | |
Purchase of investments | (1,215) | (1,294) | |
Net (increase) decrease in Card Member receivables and loans, including held for sale | [1] | 348 | 1,450 |
Purchase of premises and equipment, net of sales | (237) | (277) | |
Acquisitions/Dispositions, net of cash acquired | (475) | (28) | |
Net cash (used in) provided by investing activities | (693) | 711 | |
Cash Flows from Financing Activities | |||
Net increase (decrease) in customer deposits | 2,206 | 735 | |
Net decrease in short-term borrowings | (1,489) | (1,941) | |
Issuance of long-term debt | 3,984 | 8,420 | |
Principal payments on long-term debt | (7,203) | (3,801) | |
Issuance of American Express preferred shares | 0 | 0 | |
Issuance of American Express common shares | 11 | 31 | |
Repurchase of American Express common shares | (134) | (926) | |
Dividends paid | (324) | (313) | |
Net cash provided by (used in) financing activities | (2,949) | 2,205 | |
Effect of foreign currency exchange rates on cash and cash equivalents | (178) | 107 | |
Net increase in cash and cash equivalents | (1,757) | 4,183 | |
Cash, cash equivalents and restricted cash at beginning of period | 33,264 | 25,494 | |
Cash, cash equivalents and restricted cash at end of period | $ 31,507 | $ 29,677 | |
[1] | (a) Refer to Note 2 for additional information. |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Cash Flows [Abstract] | ||
Sale of premises and equipment | $ 0 | $ 0 |
Cash and cash equivalents per Consolidated Balance Sheet | 31,092 | 29,366 |
Restricted cash included in Other assets per Consolidated Balance Sheet | 415 | 311 |
Total Cash, cash equivalents and restricted cash | $ 31,507 | $ 29,677 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | 1 . Basis of Presentation The Company Americ an Express Company is a global services company that provides customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Business Tr avel (the GBT JV). Our 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 var ious c hannels, including mobile and online applications, direct mail, in-ho use sales teams, third-party vendors and direct response advertising . The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financi al Stat ements included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the Annual Report). If not materially different, certain footnote disclosures included therein have been omitted from this Quarterly Report on Form 10-Q. The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial inform ation, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in th e United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates ref lect the best judgment of management, but actual results could differ. Discount Revenue Discount revenue primarily represents the amount we earn on transactions occurring at merchants that have entered into a card acceptance agreement with us, or a Global Network Services (GNS) partner or other third-party merchant acquirer, for facilitating transactions between the merchants and Card Members. The amount of fees charged, or merchant discount, varies with, among other factors, the industry in wh ich the merchant conducts business, the merchant’s overall transaction volume, the timing and method of payment to the merchant, the method of submission of transactions and, in certain instances, the geographic scope of the card acceptance agreement signe d with us (e.g., local or global) and the transaction amount. The merchant discount is generally deducted from the payment to the merchant and recorded a s discount revenue at the time the Card Member transaction occurs . The card acceptance agre ements, whic h outline the agreed- upon terms for charging the merchant discount fee, vary in duration. Our contracts with small- and medium-sized merchants generally have no fixed contractual duration, while those with large merchants are generally for fixed periods, w hich typically range from three to seven years in duration. Our fixed-period agreements may include auto-renewal features , which may allow the existing terms to continue beyond the stated expiration date until a new agreement is reached. We satisfy our ob ligations under these agreements over the contract term, often on a daily basis, through the processing of Card Member transactions and the availability of our payment network. In cases where we are the card issuer and the merchant acquirer is a third part y (which is the case , for example, under our OptBlue program, or with certain of our GNS partners ), we receive a network rate fee in our settlement with the merchant acquirer, which is individually negotiated between us and that merchant acquirer and is re corded as discount revenue at the time the Card Member transaction occurs. In our role as the operator of the American Express network, we also settle with merchants on behalf of our GNS card issuing partners, who in turn receive an issuer rate that is individually negotiated between that issuer and us and is recorded as expense in Marketing and business development (see below) or as contra-revenue in Other revenue. In contrast with networks such as those o perated by Visa Inc. and Masterc ard Incorporated , there are no collectively set interchange rates or network rates on the American Express network, and no fees are agreed or due between the GNS partners on the network. Net Card Fees Net card fees represent revenue earned from annual card membership fee s, 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-line basis over the twelve-m onth 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. Other Fees and Commissions Other fees and commissions includes certain fees charged to Card Members, including delinquency fees and foreign currency conversion fees, which are primarily recognized in the period in which they are charged to the Card Member. Other fees and commissions also includes Membership Rewards p rogram fees, 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. In addition, Other fees and commissions includes lo y alty coalition-related fees, travel commissions and fees and service fees earned from merchants , that are recognized when the service is performed, which is generally in the period the fee is charged. Refer to Note 13 for additional information. Contra-re venue P ayments made through contractual arrangements with our merchants, GNS partners, and other customers are classified as expense where we receive goods , services or other benefits , for which the fair va lue is determinable and measurable. If these conditions are not met, the p ayment is classified as c ontra-revenue with the related revenue transaction (e.g., Di scount revenue or Other revenue ) and recorded when incurred . Interest Income Interest on Card Member loans is assessed using the average dail y 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 paid, or written off. In terest and dividends on investment securities primarily relate to our performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and oth er 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 will not be made as scheduled. In terest 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 other 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 expense 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 our long-term debt and short-term borrowings, as well as the realize d impact of derivatives used to hedge interest rate risk on our long-term debt. Marketing and Business Development As further described below under “Recently Adopted Accounting Standards,” e ffective January 1, 2018, in conjunction with the adoption of the new revenue recognition standard, the previously disclosed “Marketing and Promotion” line on the Consolidated Statements of Income was changed to “Marketing an d Business Development” to reflect the inclusion of certain reclassified costs fr om Contra-discount revenue and O ther expenses. Marketing and business development provides a more comprehensive view of costs related to building and growing our business, i ncluding the reclassified costs . Marketing and business development expense includ es costs incurred in the development and initial placement of advertising, which are expensed in the year in which the advertising first takes place. Also included in Marketing and business development expense are Card Member statement credits for qualifyi ng charges on eligible card accounts, corporate incentive payments earned on achievement of preset targets , and certain payments to GNS card issuing partners. These costs are generally expensed as incurred . Card Member Rewards We issue charge and credit cards that allow Card Members to participate in various rewards programs (e.g. , Membership Rewards, cobrand and cash back). Rewards expense is recognized in the period Card Members earn rewards, generally by spending on their enrolled card products . We re cord a Card Member rewards liability that represents the estimated cost of points earned that are expected to be redeemed. Card Member rewards liabilities are impacted over time by enrollment levels, attrition, the volume of points earned and redeemed, and the associated redemption costs. Changes in the Card Member rewards liabilities during the period are taken as a charge or release to the Card Member rewards line. Effective January 1, 2018, in conjunction with the new revenue recognition standard, Card M ember rewards also includes cash-back rewards , which were reclassified from contra discount revenue. Classification of various items Certain reclassifications of prior period amounts have been made to conform to the current period presentation, including t he reclassification of certain business development expenses from Other expenses to Marketing and business development , that we re not directly attributable to the adoption of the new revenue recognition guidance. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (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 S heets. We will adopt the standard effective January 1, 2019. The new guidance currently requires a modified retrospective transition approach , which would cause us to record existing operating leases on the Consolidated Balance Sheets upon adoption and in the comparative period. In January 2018, the FASB released an exposure draft that, if issued in its current form, would provide us with the option to adopt the provisions of the new guidance prospectively, without adjusting the comparative periods present ed. We are in the process of upgrading our lease administration software and changing business processes and internal controls in preparation for the adoption. Specifically, we are currently reviewing our lease portfolio and are evaluating and interpretin g the requirements under the guidance, including the available accounting policy elections, in order to determine the impacts on our financial position, results of operations and cash flows upon adoption . In June 2016, the FASB issued new accounting guida nce 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 known as the Current Expected Credit Loss (CECL) model, which i s based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. In addition, for available-for-sale debt securities, the new guidance replaces the other-than-temporary impairment model, and requires the recognition of an allowance for reductions in a security’s fair value attributable to declines in credit quality, instead of a direct write-down of the security when a valuation decline is determined to be other-than-temporary. The guidance also requires a cumulative-effect adjustment to retained earni ngs as of the beginning of the reporting period of adoption. We do not intend to adopt the new standard early and are currently evaluating the impact the new guidance will have on our 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 our credit reserves as the new guidance involves earlier recognition of expected losses for the life of the assets. We have established an enterprise-wide, cross-discipline governance structure to implement the new standard, and continue to identify and conclude on key interpretive issues along with evaluating our existing credit loss foreca sting models and processes in relation to the new guidance to determine what modifications may be required. 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 accumulated other comprehensive income (loss) (AOCI) to retained earnings . The optional guidance is effective January 1, 2019, with early adoption permitted. We are evaluating whether we will adopt the new guidance along with any impacts on our financial position, results of operations and cash flows, none of which are expected to be material. Recently Adopted Accounting Standards Effective January 1, 2018, we adopted new revenue recognition guidance issued by the FASB related to contracts with customers. The scope of the new guidance excludes financial instruments such as credi t and charge card arrangements. We elected to adopt the standard using the full retrospective method, which we believe is most useful to our investors. Under the full retrospective method, we are applying the standard back to January 1, 2016. As shown belo w, the most significant impacts of adoption are changes to the classification of certain revenues and expenses, including certain credit and charge card related costs previously netted against discount revenue, such as Card Member cash-back reward costs an d statement credits, corporate incentive payments, as well as payments to third-party GNS card issuing partners. Under the new revenue standard, these costs are not considered components of the transaction price of our card acceptance agreements with merch ants and thus are not netted against discount revenue, but instead are recognized as expenses. Our payments to third-party GNS card issuing partners are presented net of related revenues earned from the partners. The impact to the 2017 fiscal quarters a nd years ended December 31, 2017 and 2016 were as follows: Increase (Decrease) Three months ended Year Ended December (Millions) December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 2017 2016 Revenues Discount revenue $ 981 $ 930 $ 928 $ 868 $ 3,707 $ 3,699 Other (78) (71) (64) (65) (278) (253) Expenses Marketing and business development 617 591 593 549 2,350 2,420 Card Member rewards $ 286 $ 268 $ 271 $ 254 $ 1,079 $ 1,026 In addition, the cumulative impact to our retained earnings on January 1, 2016 was an increase of $55.2 million. The adoption of the new guidance also resulted in changes to the recognition timing of certain revenues, the impact of which is not material to net income. Similarly, the adoption did not have a material impact on our Consolidated Balance Sheets or Statements of Cash F lows. We had no material c ontract assets, contract liabilities or deferred contract costs recorded on the Consolidated Balance S heet as of March 31, 2018 and December 31, 2017. Contracts assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In ad opting the guidance, we implemented changes to our accounting polici es, business processes, systems and internal controls to support the recognition, measurement and disclosure requirements under the new standard. Such changes were not material. In January 2016, the FASB issued new accounting guidance on the recognition a nd measurement of financial assets and financial liabilities, which was effe ctive and adopted by us as of January 1, 2018. The guidance makes targeted changes to GAAP; specifically to the classification and measurement of equity securities, and to certain disclosure requirements associated with the fair value of fin ancial assets and liabilities. This applies to investments we make in non-public companies i n the ordinary course of business , which historically were recognized under the cost method of accounti ng. These investments will be prospectively adjusted through earnings for observable price changes upon the identification of identical or similar transactions of the same company. The adoption of the guidance did not have a material impact on our financial position, result s of operat ions and cash flows. We implemented changes to our accounting policies, business processes and internal controls in support of the new guidance . Such changes were not material. In August 2017, the FASB issued new accounting guidance providing t argeted improvements to the accounting for 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, several of which are opt ional, 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, we adopted the guidance, with no material impact on our financial position, results of operations and cash flows, along with associated changes to our accounting policies, business processes and internal controls in support of the new guidance. Such changes were not material. |
Business Events
Business Events | 3 Months Ended |
Mar. 31, 2018 | |
Business Combination Disclosure [Abstract] | |
Divestitures | 2 . Business Events During the first quarter of 2018, we acquired from Citibank, N.A. its existing Hilton Worldwide Holdings Inc. cobrand credit card loan portfolio (the acquired Hilton portfolio). The Hilton portfolio had an outstanding principal and interest balance of approximately $ 1 b illion at acquisition. None of the credit card loans acquired were considered purchased credit impaired at acquisition date. The cash outflows re lated to this acquisition are reported within the investing section of the Consolidated Statements of Cash Flows as a net increase in Card Member receivables and loans. |
Loans and Accounts Receivable
Loans and Accounts Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Loans Notes Trade And Other Receivables Disclosure [Abstract] | |
Loans and Accounts Receivable | 3 . Loans and Accounts Receivable Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables, respectively. Card Member loans by segment and Other loans as of March 31 , 2018 and December 31, 2017 consisted of: (Millions) 2018 2017 U.S. Consumer Services (a) $ 52,655 $ 53,668 International Consumer and Network Services 8,667 8,651 Global Commercial Services 11,498 11,080 Card Member loans 72,820 73,399 Less: Reserve for losses 1,786 1,706 Card Member loans, net $ 71,034 $ 71,693 Other loans, net (b) $ 2,872 $ 2,607 Includes approximately $ 24.1 billion and $ 25.7 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31 , 2018 and December 31, 2017 , respectively. The balance as of March 31, 2018 also includes the acquired Hilton portfolio (refer to Note 2). Other loans primarily represent personal and commercial financing products . Other loans are presented net of reserves for losses of $ 91 million and $ 80 million as of March 31 , 2018 and December 31, 2017 , respectively. Card Member accounts receivable by segment and Other receivables as of March 31 , 2018 and December 31, 2017 consisted of: (Millions) 2018 2017 U.S. Consumer Services (a) $ 11,659 $ 13,143 International Consumer and Network Services 7,071 7,803 Global Commercial Services 35,511 33,101 Card Member receivables 54,241 54,047 Less: Reserve for losses 565 521 Card Member receivables, net $ 53,676 $ 53,526 Other receivables, net (b) $ 3,194 $ 3,209 Includes $ 7.8 billion and $ 8.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31 , 2018 and December 31, 2017 , respectively. Other receivables primarily r epresent amounts related to (i) GNS partner s for items such as royalty and franchise fees, (ii) tax-related receivables, (iii) certain merchants for billed discount revenue, and ( iv ) loyalty coalition partners for points issued, as well as program participation and servicing fees. O ther receivables are presented net of r eserves for losses of $ 31 million and $ 31 million as of March 31 , 2018 and December 31, 2017 , respectively. Card Member Loans and Card Member Receivables Aging Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of March 31 , 2018 and December 31, 2017 : 2018 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 51,922 $ 201 $ 156 $ 376 $ 52,655 International Consumer and Network Services 8,524 46 31 66 8,667 Global Commercial Services Global Small Business Services 11,278 45 33 71 11,427 Global Corporate Payments (a) (b) (b) (b) 1 71 Card Member Receivables: U.S. Consumer Services 11,510 48 35 66 11,659 International Consumer and Network Services 6,967 33 22 49 7,071 Global Commercial Services Global Small Business Services $ 15,931 $ 93 $ 68 $ 126 $ 16,218 Global Corporate Payments (a) (b) (b) (b) $ 163 $ 19,293 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 For Global Corporate Payments ( GCP ) Card Member loans and receivables in Global Commercial Services ( GCS ) , delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement d ate. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days pas t billing, the associated Card Member loan and receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). Delinquency data for periods other than 90 days past billin g is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. Credit Quality Indicators for Card Member Loans and Receivables The following tables present the key credit quality indicators as of or for the three months ended March 31 : 2018 2017 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 2.0 % 2.4 % 1.4 % 1.7 % 2.0 % 1.2 % International Consumer and Network Services 2.1 % 2.6 % 1.6 % 2.0 % 2.5 % 1.7 % Global Small Business Services 1.6 % 1.9 % 1.3 % 1.6 % 1.8 % 1.2 % Card Member Receivables: U.S. Consumer Services 1.3 % 1.5 % 1.3 % 1.5 % 1.7 % 1.3 % International Consumer and Network Services 2.0 % 2.2 % 1.5 % 2.1 % 2.3 % 1.5 % Global Small Business Services 1.7 % 1.9 % 1.8 % 1.8 % 2.0 % 1.6 % 2018 2017 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.10 % 0.8 % 0.11 % 0.7 % We present 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 we consider uncollectible interest and/or fees in estimating its reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. Impaired Card Member Loans and Receivables Impaired Card Member loans and receivables are individual larger balance or homogeneous pools of smal ler balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement. In certain cases, these Card Member loans and receivables are in cluded in one of our various Troubled Debt Restructuring (TDR) modification programs. The following tables provide additional informati on with respect to our impaired Card Member loans and receivables. Impaired Card Member receivables are not significant for International Consumer and Network Services ( ICNS ) as of March 31 , 2018 and December 31, 2017 ; therefore, th is segment’s receivables are not included in the following tables . As of March 31, 2018 Accounts Classified as a TDR (c) 2018 (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 $ 254 $ 182 $ 209 $ 125 $ 770 $ 691 $ 52 International Consumer and Network Services 66 ― ― ― 66 65 ― Global Commercial Services 46 35 38 25 144 134 8 Card Member Receivables: U.S. Consumer Services ― ― 19 10 29 29 1 Global Commercial Services ― ― 48 21 69 69 3 Total $ 366 $ 217 $ 314 $ 181 $ 1,078 $ 988 $ 64 As of December 31, 2017 Accounts Classified as a TDR (c) 2017 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 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 Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe 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 ag encies for which we have ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR. Accounts classified as a T DR include $ 15 million and $ 15 million that are over 90 days past due and accruing interest and $ 4 million and $ 5 million that are non-accruals as of March 31 , 2018 and December 31, 2017 , respectively. In Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program TDRs include $137 million and $ 141 million of Card Member accounts that have successfully completed a modification progr am and $44 million and $45 million of Card Membe r accounts that were not in compliance with the terms of the modification programs as of March 31 , 2018 and December 31, 2017 , respectively . The following table provides information with respect to our average balances and in terest income recognized from i mpaired Card Member loans and the average balances of impaired Card Member receivables for the three months ended March 31 : 2018 2017 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 740 $ 21 $ 616 $ 16 International Consumer and Network Services 61 5 53 4 Global Commercial Services 136 5 116 4 Card Member Receivables: U.S. Consumer Services 27 ― 18 ― Global Commercial Services 63 ― 40 ― Total $ 1,027 $ 31 $ 843 $ 24 Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to the U.S. Consumer Services ( USCS ) and GCS Card Member loans and receivables mo dified as TDRs for the three months ended March 31 , 2018 and 2017 . The ICNS Card Member loans and receivables modifications were not significant; therefore, this segment is not included in the following TDR disclosures. Three Months Ended March 31, 2018 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 11 $ 81 11 (b) Card Member Receivables 1 29 (c) 28 Total 12 $ 110 Three Months Ended March 31, 2017 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 57 13 (b) Card Member Receivables 2 28 (c) 22 Total 10 $ 85 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. We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The followin g table provides information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months o f modification, for the three months ended March 31 , 2018 and 2017 . A Card Member is considered in d efault of a modification program after 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 default is factored into the reserves for Card Member loans and receivables. 2018 2017 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (thousands) (millions) (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 9 2 $ 11 Card Member Receivables 1 2 1 1 Total 3 $ 11 3 $ 12 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves for Losses
Reserves for Losses | 3 Months Ended |
Mar. 31, 2018 | |
Reserves For Losses Card Member Loans and Receivables Disclosure [Abstract] | |
Reserve for Losses | 4 . Reserves for Losses Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in our outstanding por tfolio of loans and receivables as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31 : (Millions) 2018 2017 Balance, January 1 $ 1,706 $ 1,223 Provisions (a) 499 337 Net write-offs (b) Principal (358) (272) Interest and fees (71) (51) Other (c) 10 11 Balance, March 31 $ 1,786 $ 1,248 Provisions for principal, interest and fee reserve components. Principal write-offs are presented less recoveries of $ 106 million and $ 100 million, and include net write-offs from TDRs of $7 million and $ 12 million, for the three months ended March 31 , 2018 and 2017 , respectively. Recoveries of i nterest and fees were not significant . Includes foreign currency translation adjustments of $ 6 million and $ 7 million and other adjustments of $ 4 million and $ 4 million for the three months ended March 31 , 2018 and 2017 , respectively. Card Member Loans Evaluated Individually and Collectively for Impairment The follo wing table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of March 31 , 2018 and December 31, 2017 : (Millions) 2018 2017 Card Member loans evaluated individually for impairment (a) $ 397 $ 367 Related reserves (a) $ 60 $ 57 Card Member loans evaluated collectively for impairment (b) $ 72,423 $ 73,032 Related reserves (b) $ 1,726 $ 1,649 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. Changes in Card Member Receivables Reserve for Losses The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 3 1 : (Millions) 2018 2017 Balance, January 1 $ 521 $ 467 Provisions (a) 242 213 Net write-offs (b) (199) (194) Other (c) 1 5 Balance, March 31 $ 565 $ 491 Provisions for principal and fee reserve components. P rincipal and fee write-off s are presented less recoveries of $ 88 million and $ 93 million, including net write-offs (recoveries) from TDRs of $ (2) million and $ 6 million, for the three months ended March 31 , 2018 and 2017 , respectively. Includes foreign currency translation adjustments of $ 10 million a nd $ 9 million and other adjustments of $ (9) million and $ (4) million for the three months ended March 31 , 2018 and 2017 , respectively. Card Member Receivables Evaluated Individually and Collectively for Impairment The following table presents Card Member receivables evaluated individually and col lectively for impairment, and related reserves, as of March 31 , 2018 and December 31, 2017 : (Millions) 2018 2017 Card Member receivables evaluated individually for impairment (a) $ 98 $ 80 Related reserves (a) $ 4 $ 3 Card Member receivables evaluated collectively for impairment $ 54,143 $ 53,967 Related reserves (b) $ 561 $ 518 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 5. Investment Securities Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets, with unrealize d 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. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets . Effective January 1, 2018, unrealized gains and losses are recorded in the Consolidated Statements of Income; prior to January 1, 2018, unrealized gains and losses were recorded in AOCI, net of income taxes. The following is a summary of investment securities as of March 31 , 2018 and December 31, 2017 : 2018 2017 Gross Gross Estimated Gross Gross Estimated Unrealized Unrealized Fair Unrealized Unrealized Fair Description of Securities (Millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale debt securities: State and municipal obligations $ 1,122 $ 8 $ (5) $ 1,125 $ 1,369 $ 11 $ (3) $ 1,377 U.S. Government agency obligations 10 ― ― 10 11 ― ― 11 U.S. Government treasury obligations 1,678 4 (21) 1,661 1,051 3 (9) 1,045 Corporate debt securities 29 ― ― 29 28 ― ― 28 Mortgage-backed securities (a) 63 2 (1) 64 67 2 ― 69 Foreign government bonds and obligations 451 ― ― 451 581 ― ― 581 Equity securities (b) 51 ― (3) 48 51 ― (3) 48 Total $ 3,404 $ 14 $ (30) $ 3,388 $ 3,158 $ 16 $ (15) $ 3,159 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Equity securities comprise investments in common stock and mutual funds . The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31 , 2018 and December 31, 2017 : 2018 2017 Less than 12 months 12 months or more Less than 12 months 12 months or more Gross Gross Gross Gross Description of Securities (Millions) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and municipal obligations $ 144 $ (4) $ ― $ ― $ 157 $ (3) $ ― $ ― U.S. Government treasury obligations 811 (14) 173 (7) 650 (3) 175 (6) Equity securities (a) ― N/A ― N/A ― ― 36 (2) Total $ 955 $ (18) $ 173 $ (7) $ 807 $ (6) $ 211 $ (8) Effective January 1, 2018, unrealized gains and losses o n equity securities are recorded in the Consolidated Statements of Income and are no longer assessed for other-than- temporary impairment. The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31 , 2018 and December 31, 2017 : Less than 12 months 12 months or more Total Ratio of Fair Value to Gross Gross Gross Amortized Cost Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2018: 90%–100% 30 $ 955 $ (18) 5 $ 173 $ (7) 35 $ 1,128 $ (25) Total as of March 31, 2018 30 $ 955 $ (18) 5 $ 173 $ (7) 35 $ 1,128 $ (25) 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) The gross unrealized l osses for available-for-sale debt securities are attributed to wider credit spreads for specific iss uers, adverse changes in benchmark interest rates, or a combination thereof, all compared to those prevailing when the inv estment securities were purchased . Overall, for the available-for-sale debt securities in gross unrealized loss positions , (i) we do no t intend to sell the securities, (ii) it is more l ikely than not that we will not be required to sell the securities before recovery of the unrealiz ed losses, and (iii) we expect that the contractual principal and interest wi ll be received on the secu rities. As a result, we recognized no other-than-temporary impairment during the periods presented. Contractual maturities for investment securities with stated maturities a s of March 31 , 2018 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 465 $ 465 Due after 1 year but within 5 years 1,653 1,639 Due after 5 years but within 10 years 218 214 Due after 10 years 1,017 1,022 Total $ 3,353 $ 3,340 The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. |
Asset Securitizations
Asset Securitizations | 3 Months Ended |
Mar. 31, 2018 | |
Asset Securitizations [Abstract] | |
Asset Securitizations | 6 . Asset Securitizations We periodically securitize Card Member loans and receivables arising from our card businesse s through the transfer of those assets to securitization trusts , American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts) . The T rusts then issue debt securities collateralized by the transferred assets to third-party investors . We perform the servicing and key de cision making f or the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and recei vables. In addition, we hold all of t he variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of March 31 , 2018 , our ownership of v ariable interests was $9.2 billion for the Lending Trust and $ 7.1 billion for the Charge Trust. These variable interests held by us provide us 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, we are the primary beneficiary of both T rusts and therefore consolidate both Trusts. The following table provides information on the restricted cash held by the Lendin g Trust and the Charge Trust as of March 31 , 2018 and December 31, 2017 , included in Other assets on the Consolida ted Balance Sheets: (Millions) 2018 2017 Lending Trust $ 145 $ 55 Charge Trust 2 7 Total $ 147 $ 62 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 three months ended March 31 , 2018 and the year ended December 31, 2017 , no such triggering events occurred. |
Customer Deposits
Customer Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Deposit Liabilities Disclosures [Abstract] | |
Customer Deposits | 7 . Customer Deposits As of March 31 , 2018 and December 31, 2017 , customer deposits were categorized as interest bearing or non-interest bearing as follows: (Millions) 2018 2017 U.S.: Interest bearing $ 65,913 $ 63,666 Non-interest bearing (includes Card Member credit balances of: 2018, $319 million; 2017, $358 million) 353 395 Non-U.S.: Interest bearing 42 34 Non-interest bearing (includes Card Member credit balances of: 2018, $344 million; 2017, $344 million) 357 357 Total customer deposits $ 66,665 $ 64,452 Customer deposits by deposit type as of March 31 , 2018 and December 31, 2017 were as follows: (Millions) 2018 2017 U.S. retail deposits: Savings accounts – Direct $ 34,544 $ 31,915 Certificates of deposit: (a) Direct 325 290 Third-party (brokered) 16,453 16,684 Sweep accounts – Third-party (brokered) 14,591 14,777 Other deposits: U.S. non-interest bearing deposits 34 37 Non-U.S. deposits 55 47 Card Member credit balances ― U.S. and non-U.S. 663 702 Total customer deposits $ 66,665 $ 64,452 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 39 months and 2.16 perce nt, respectively, as of March 31, 2018 . The scheduled maturities of certificates of deposit as of March 31 , 2018 were as follows: (Millions) U.S. Non-U.S. Total 2018 $ 4,984 $ 16 $ 5,000 2019 4,610 11 4,621 2020 3,693 ― 3,693 2021 1,317 ― 1,317 2022 2,149 ― 2,149 After 5 years 25 ― 25 Total $ 16,778 $ 27 $ 16,805 As of March 31 , 2018 and December 31, 2017 , certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2018 2017 U.S. $ 126 $ 114 Non-U.S. 17 11 Total $ 143 $ 125 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 8 . Contingencies In the ordinary course of business, we and our 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). We disclose our material legal proceedings under Part II, Item 1. “Legal Proceedings” in this Quarterly Report on Form 10-Q and Part I, Item 3. “Legal Proceedings” in the Annual Report. In addition to the matters disclosed under “Le gal Proceedings,” we are being challenged in a n umber of countries regarding our application of value-add ed taxes (VAT) to certain of our international transactions, which ar e in various stages of audit, or are being contested in legal actions (collectively, VAT matters). While we believe we have complied with all applicable tax laws, rules and regulations in the relevant jurisdictions, the tax authoritie s may determine that w e owe additional VAT. In certain ju risdictions where we are contesting the assessments, we were required to pay the VAT assessments prior to contesting. Our legal proceedings range from cases brought by a single plaintiff to class actions with millions of putative class members. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some mat ters pending against us 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 process. Even when the amount of dam ages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and le gal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed suffi ciently such that we are able to estimate an amount of loss or a range of possible loss. We have reco rded reserves for certain of our outstan ding 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 t he recorded reserve. We evaluate , on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. For those disclosed material legal proceedings and VAT matters where a loss is reasonably possible in future periods, whether in excess of a related reserve for legal or tax contingencies or where there is no such reser ve, and for which we are able to estimate a ra nge of possible loss, the current estimated range is zero to $ 420 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 our maximum l oss exposure; actual results may vary significantly. As such legal proceedings evolve, we may need to increase our range of possible loss or reserves. Based on our current knowledge, a nd taking into consideration our litigation- related liabilities, we bel ieve we are no t a party to, nor are any of our properties the subject of, any legal proceeding that would have a material adverse effect on our consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, it is possible that the outcome of legal proceedings, including the possible resolution of merchant claims, could have a material impact on our results of operations. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 9 . Derivatives and Hedging Activities We use derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates, foreign exchange rates, and equity index or price, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an int egral component of our market r isk management. We do not transact in derivatives for trading purposes. In relation to our credit risk, under the terms of the derivative agreements we have with our various counterpartie s, we are not required to eithe r immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on our assessment of the credit risk of our derivative counterparties as of March 31 , 2018 and December 31, 2017 , no credit risk adjustment to the derivative portfolio was required. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31 , 2018 and December 31, 2017 : Other Assets Fair Value Other Liabilities Fair Value (Millions) 2018 2017 2018 2017 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 3 $ 11 $ 95 $ 34 Net investment hedges - Foreign exchange contracts 71 117 167 89 Total derivatives designated as hedging instruments 74 128 262 123 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 77 82 117 95 Total derivatives, gross 151 210 379 218 Less: Cash collateral netting (c)(d) ― (6) (94) (45) Derivative asset and derivative liability netting (e) (85) (80) (85) (80) Total derivatives, net $ 66 $ 124 $ 200 $ 93 F or centrally cleared derivatives , variation margin payments are legally characterized as settlement payments as opposed to collateral. Accordingly, the amounts disclosed for centrally cleared derivatives are based on gross assets and gross liabilities, net of variation margin. We also maintained several bilateral interest rate contracts that are shown gross of any collateral exchanged . Includes foreign 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 . We posted $125 million and $146 million as of March 31 , 2018 and December 31, 201 7 , respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of deri vative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. A majority of our derivative assets and liabilities as of March 31 , 2018 and December 31, 2017 are subject to master netting agreements with our derivative counterparties. We have no derivative amounts subject to enforceable master netting arrangements that are not offset on the Consolidated Balance Sheets. Fair Value Hedges We are exposed to intere st rate risk associated with our 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 interest ra t e. We have $23.4 billion and $23.8 billion of fixed-rat e debt obligations designated in fair value hedging relationships as of March 31 , 2018 and December 31, 2017 , respectively. The following table represents the total amounts of income and expen se line items associated with the fair value hedges of our fixed-rate long-term debt on the Consolidated Statements of Income for the three months ended March 31 : Gains (losses) (Millions) 2018 2017 Interest expense (a) Other expenses Hedged items $ 210 $ 50 Derivatives designated as hedging instruments (191) (75) Total $ 19 $ (25) We adopted new accounting guidance providing targeted improvements to the accounting for hedging activities effective January 1, 2018. In compliance with the standard, amounts previously recorded in Other expenses have been prospectively recorded in Total interest expense. Refer to Note 1 for additional information. The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $22.9 billion and $23.6 billion as of March 31, 2018 and December 31, 2017, respectively, including offsetting amounts of $392 million and $182 million for the respective periods, related to the cumulative amount of fair value hedging adjustments. We recognized a net reduction in interest expense on long-term debt of $14 million and $44 million for the three months ended March 31, 2018 an d 2017, respectively, primarily related to the net settlements (interest accruals) on our interest rate derivatives designated as fair value hedges. Net Investment Hedges The l oss es on net investment hedges, net of taxes, recorded in AOCI as part of the cu mulative translation ad justment, were $162 million and $229 million for the three months ended March 31 , 2018 and 2017 , respectively. Accumulated gains within AOCI of $1 million and nil for the three months ended March 31 , 2018 and 2017 , respec tively, were reclassified int o Other expenses upon investment sales or liquidations. Derivatives Not Designated as Hedges The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. The changes in the fair value of the derivatives and the related underlying foreign currency exposu res resulted in net losses of $21 million and $ 17 million for the three months ended March 31 , 2018 and 2017 , respectively , and are recognized in Other expenses . The changes in the fair value of an em bedded derivative resulted in a loss of $2 million and a gain of $1 million for the three months ended March 31 , 2018 and 2017 , respectively , and are recognized in Card M ember services expense . |
Fair Values
Fair Values | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value (Disclosures) [Abstract] | |
Fair Values | 10 . Fair Values Financial Assets and Financial Liabilities Carried at Fair Value The followin g table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31 , 2018 and December 31, 2017 : 2018 2017 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 48 $ 1 $ 47 $ ― $ 48 $ 1 $ 47 $ ― Debt securities 3,340 1,661 1,679 ― 3,111 1,045 2,066 ― Derivatives (a) 151 ― 151 ― 210 ― 210 ― Total Assets 3,539 1,662 1,877 ― 3,369 1,046 2,323 ― Liabilities: Derivatives (a) 379 ― 379 ― 218 ― 218 ― Total Liabilities $ 379 $ ― $ 379 $ ― $ 218 $ ― $ 218 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of der ivative assets and liabilities, on a further disaggregated basis. Financial Assets and Financial Liabilities Carried at Other Than Fair Value The following table summarizes the estima ted fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of March 31 , 2018 and December 31, 2017 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31 , 2018 and December 31, 2017 , and require management’s judgment. These figures may not be indicative of future fair value s, nor can our fair va lue be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2018 (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) $ 31 $ 31 $ 30 $ 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 77 77 ― 77 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 17 17 ― 17 ― Long-term debt (c) $ 52 $ 53 $ ― $ 53 $ ― 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 $ ― Level 2 amounts reflect time deposits and short-term investments. Includes Card Member receivables (including fair values of Card Member receivables of $ 7.8 billion and $ 8.9 billion held by a consolidated VIE as of March 31 , 2018 and December 31, 2017 , 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 $ 23.9 billion and $ 25.6 billi on as of March 31 , 2018 and December 31, 2017 , respectively, and the fair values of long-term debt were $ 15.7 billion and $ 18.6 billion as of March 31 , 2018 and December 31, 2017 , respectively. Presented as a component of custom er deposits on the Consolidated Balance Sheets. Nonrecurring Fair Value Measurements We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired . During the three months ended March 31, 2018 and the year ended December 31, 2017, we did not have any material assets that were measured at fair value due to impairment. Equity inves tments previously held at cost that are adjusted through earnings for observable price changes are not material. |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2018 | |
Guarantees [Abstract] | |
Guarantees | 11 . Guarantees As of March 31 , 201 8 , the maximum potential undiscounted future payments and related liability resulting from guarantees and indemnifications provided by us in the ordinary course of business were $1 billion and $46 million, respectively, and related primarily to our real estate and business dispo sitions. As of December 31, 2017 , the maximum potential undiscounted future payments and related liability were $ 1 billion and $52 million, respectively. To date we have n ot experienced any significant losses related to guarantees or indemnifications. Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block [Abstract] | |
Changes In Accumulated Other Comprehensive (Loss) Income | 12 . Changes In Accumulated Other Comprehensive Income AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three months ended March 31 , 2018 and 2017 were as follows: 2018 (Millions) , net of tax Net Unrealized Gains (Losses) on Debt Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2017 $ ― $ (1,961) $ (467) $ (2,428) Net unrealized losses (13) ― ― (13) Net translation gain of investments in foreign operations ― 192 ― 192 Net losses related to hedges of investments in foreign operations ― (162) ― (162) Pension and other postretirement benefits ― ― 28 28 Other (a) 2 ― ― 2 Net change in accumulated other comprehensive (loss) income (11) 30 28 47 Balances as of March 31, 2018 $ (11) $ (1,931) $ (439) $ (2,381) 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2016 $ 7 $ (2,262) $ (529) $ (2,784) Net unrealized gains 6 ― ― 6 Net translation gain of investments in foreign operations ― 545 ― 545 Net losses related to hedges of investments in foreign operations ― (229) ― (229) Pension and other postretirement benefits ― ― (8) (8) Net change in accumulated other comprehensive income (loss) 6 316 (8) 314 Balances as of March 31, 2017 $ 13 $ (1,946) $ (537) $ (2,470) Represents unrealized gains and losses pertaining to equity securities moved from AOCI to retained earnings as of January 1, 2018, due to the prospective adoption of the financial instruments guidance effective January 1, 2018 (refer to Note 1 ) . The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2018 2017 Investment securities $ (3) $ 3 Foreign currency translation adjustments 2 (191) Net investment hedges (54) (140) Pension and other postretirement benefits 3 (9) Total tax impact $ (52) $ (337) The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31 , 2018 and 2017 : Gains (losses) recognized in earnings Amount Description ( Millions ) Income Statement Line Item 2018 2017 Foreign currency translation adjustments Reclassification of translation adjustments and related hedges Other expenses 1 ― Related income tax Income tax provision (1) ― Reclassification of foreign currency translation adjustments ― ― Total $ ― $ ― |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Other Expense Disclosure [Abstract] | |
Non-Interest Revenue and Expense Detail | 13 . Other Fees and Commissions, Other Revenues and Other Expenses The following is a detail of Other fees and commissions for the three months ended March 31 : (Millions) 2018 2017 Fees charged to Card Members: Delinquency fees $ 242 $ 214 Foreign currency conversion fee revenue 225 199 Other customer fees: Loyalty coalition-related fees 111 102 Travel commissions and fees 99 90 Service fees and other (a) 104 106 Total Other fees and commissions $ 781 $ 711 Other includes Membership Rewards program fees that are not related to contracts with customers. The following is a detail of Other revenues for the three months ended March 31 : (Millions) 2018 2017 Global Network Services partner revenues $ 79 $ 94 Other (a) 298 267 Total Other revenues $ 377 $ 361 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 agreement, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. Revenue expected to be recognized in future periods related to contracts that have an ori ginal expected duration of one year or less and contracts with variable consideration (e.g. discount revenue) are not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is no t material. The following is a detail of Other expenses for the three months ended March 31 : (Millions) 2018 2017 Occupancy and equipment $ 520 $ 474 Professional services 457 501 Other (a) 457 395 Total Other expenses $ 1,434 $ 1,370 For the three months ended March 31, 2018, o ther expense includes the loss on a transaction involving the operations of ou r prepaid reloadable and gift card business and gains on the re-measurement of certain equity investments previously carried at cost . For both periods, other expense also includes general operating expenses, Card and merchant-related fraud losses, communication expenses, foreign cu rrency-related gains and losses and insurance costs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14 . Income Taxes The effective tax rate was 21.5 percent and 32.0 percent for the three months ended March 31 , 2018 and 2017 , respectively . The change in tax rates primarily reflect s the reduction in the U.S. federal statutory tax rate as a result of the Tax Act. T he tax rates in both periods also reflect the resolution of certain prior years’ tax items. In 2017, we recorded an estimated net discrete tax charge of $2.6 billion related t o the Tax Act that was accounted for as a provisional charge under SAB 118. There were no material changes to these estimates for the current period. We continue to analyze the impacts of the Tax Act ; therefore, the 2017 charge continues to be provisional . We are under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which we have significant business operations. The tax years under examination and open for examination vary by jurisdiction. The resolution of such matters did not have a material impact on our effective tax rate. We are currently under examination with the IRS for tax years 2008 through 2014. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months by as much as $ 319 million , principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $ 319 million of unrecognized tax benefits, approximately $291 million relates to amou nts that, if recognized, would impact the effective tax rate in a future period. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | 15 . Earnings Per Common Share (EPS) The computations of basic and diluted EPS for the three months ended March 31 were as follows: (Millions, except per share amounts) 2018 2017 Numerator: Basic and diluted: Net income $ 1,634 $ 1,251 Preferred dividends (21) (21) Net income available to common shareholders $ 1,613 $ 1,230 Earnings allocated to participating share awards (a) (13) (10) Net income attributable to common shareholders $ 1,600 $ 1,220 Denominator: (a) Basic: Weighted-average common stock 859 899 Add: Weighted-average stock options (b) 2 4 Diluted 861 903 Basic EPS $ 1.86 $ 1.36 Diluted EPS $ 1.86 $ 1.35 Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. The dilutive effect of unex ercised stock options excludes from the computation of EPS 0.6 million and 1.2 million of options for the three months ended March 31 , 2018 and 2017 , respectively, because inclusion of the options would have been anti-dilutive . |
Reportable Operating Segment
Reportable Operating Segment | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | 16 . Reportable Operating Segments We are a global services company that is principally engaged in businesses comprising four reportable operating segments: USCS, ICNS, GCS and Global Merchant Services ( GMS ) . Corporate functions and certain other businesses and operations are included in Corporate & Other. Effect ive January 1, 2018, we changed the methodology used to allocate certain corporate overhead costs and interest income and expense to the operating segments. Pr ior period amounts have been revised to conform to the current period presentation. The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three months ended March 3 1: Corporate & (Millions, except where indicated) USCS ICNS GCS GMS Other (a) Consolidated 2018 Total non-interest revenues $ 2,294 $ 1,551 $ 2,838 $ 1,110 $ 84 $ 7,877 Revenue from contracts with customers (b) 1,799 1,093 2,495 1,110 84 6,581 Interest income 1,656 294 377 ― 135 2,462 Interest expense 253 78 171 (63) 182 621 Total revenues net of interest expense 3,697 1,767 3,044 1,173 37 9,718 Net income (loss) $ 640 $ 291 $ 552 $ 472 $ (321) $ 1,634 Total assets (billions) $ 94 $ 42 $ 58 $ 29 $ (43) $ 180 2017 Total non-interest revenues $ 2,118 $ 1,400 $ 2,603 $ 1,021 $ 65 $ 7,207 Revenue from contracts with customers (b) 1,657 1,009 2,297 1,021 63 6,047 Interest income 1,310 235 319 ― 81 1,945 Interest expense 161 54 123 (43) 148 443 Total revenues net of interest expense 3,267 1,581 2,799 1,064 (2) 8,709 Net income (loss) $ 494 $ 252 $ 409 $ 357 $ (261) $ 1,251 Total assets (billions) $ 85 $ 36 $ 52 $ 26 $ (38) $ 161 Corporate & Other includes adjustments and eliminations for intersegment activity. Includes discount revenue, certain other fees and commissions and other revenues from customers. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Event | |
Subsequent Event | 17 . Subsequent Event Effective April 1, 2018, American Express Centurion Bank and American Express Bank, FSB were merg ed to become American Express National Bank , regulated , supervised and examined by the Office of the Comptroller of the Currency . The merger did not have any impact on our consolidated financial position, results of operations or cash flows . |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Policy (Text Block) [Abstract] | |
Basis of Presentation | The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in th e United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates ref lect the best judgment of management, but actual results could differ. |
Investments | Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets, with unrealize d 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. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets |
Contingencies | We have reco rded reserves for certain of our outstan ding 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 t he recorded reserve. We evaluate , on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the reserve that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. |
Derivatives | We use derivative financial instruments (derivatives) to manage exposures to various market risks. These instruments derive their value from an underlying variable or multiple variables, including interest rates, foreign exchange rates, and equity index or price, and are carried at fair value on the Consolidated Balance Sheets. The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. |
Guarantees | Our recognition of these instruments is at fair value. In addition, we establish reserves when a loss is probable and the amount can be reasonably estimated. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Table Text Block [Abstract] | |
Revenue Recognition Standard Impact [Text Block] | The impact to the 2017 fiscal quarters a nd years ended December 31, 2017 and 2016 were as follows: Increase (Decrease) Three months ended Year Ended December (Millions) December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 2017 2016 Revenues Discount revenue $ 981 $ 930 $ 928 $ 868 $ 3,707 $ 3,699 Other (78) (71) (64) (65) (278) (253) Expenses Marketing and business development 617 591 593 549 2,350 2,420 Card Member rewards $ 286 $ 268 $ 271 $ 254 $ 1,079 $ 1,026 |
Loans and Accounts Receivable (
Loans and Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loans and Accounts Receivable (Tables) [Abstract] | |
Card Member loans segment detail | Card Member loans by segment and Other loans as of March 31 , 2018 and December 31, 2017 consisted of: (Millions) 2018 2017 U.S. Consumer Services (a) $ 52,655 $ 53,668 International Consumer and Network Services 8,667 8,651 Global Commercial Services 11,498 11,080 Card Member loans 72,820 73,399 Less: Reserve for losses 1,786 1,706 Card Member loans, net $ 71,034 $ 71,693 Other loans, net (b) $ 2,872 $ 2,607 Includes approximately $ 24.1 billion and $ 25.7 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31 , 2018 and December 31, 2017 , respectively. The balance as of March 31, 2018 also includes the acquired Hilton portfolio (refer to Note 2). Other loans primarily represent personal and commercial financing products . Other loans are presented net of reserves for losses of $ 91 million and $ 80 million as of March 31 , 2018 and December 31, 2017 , respectively. |
Card Member receivables segment detail | Card Member accounts receivable by segment and Other receivables as of March 31 , 2018 and December 31, 2017 consisted of: (Millions) 2018 2017 U.S. Consumer Services (a) $ 11,659 $ 13,143 International Consumer and Network Services 7,071 7,803 Global Commercial Services 35,511 33,101 Card Member receivables 54,241 54,047 Less: Reserve for losses 565 521 Card Member receivables, net $ 53,676 $ 53,526 Other receivables, net (b) $ 3,194 $ 3,209 Includes $ 7.8 billion and $ 8.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31 , 2018 and December 31, 2017 , respectively. Other receivables primarily r epresent amounts related to (i) GNS partner s for items such as royalty and franchise fees, (ii) tax-related receivables, (iii) certain merchants for billed discount revenue, and ( iv ) loyalty coalition partners for points issued, as well as program participation and servicing fees. O ther receivables are presented net of r eserves for losses of $ 31 million and $ 31 million as of March 31 , 2018 and December 31, 2017 , respectively. |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of March 31 , 2018 and December 31, 2017 : 2018 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: U.S. Consumer Services $ 51,922 $ 201 $ 156 $ 376 $ 52,655 International Consumer and Network Services 8,524 46 31 66 8,667 Global Commercial Services Global Small Business Services 11,278 45 33 71 11,427 Global Corporate Payments (a) (b) (b) (b) 1 71 Card Member Receivables: U.S. Consumer Services 11,510 48 35 66 11,659 International Consumer and Network Services 6,967 33 22 49 7,071 Global Commercial Services Global Small Business Services $ 15,931 $ 93 $ 68 $ 126 $ 16,218 Global Corporate Payments (a) (b) (b) (b) $ 163 $ 19,293 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 For Global Corporate Payments ( GCP ) Card Member loans and receivables in Global Commercial Services ( GCS ) , delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement d ate. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days pas t billing, the associated Card Member loan and receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). Delinquency data for periods other than 90 days past billin g is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. |
Credit quality indicators for loans and receivables | The following tables present the key credit quality indicators as of or for the three months ended March 31 : 2018 2017 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 2.0 % 2.4 % 1.4 % 1.7 % 2.0 % 1.2 % International Consumer and Network Services 2.1 % 2.6 % 1.6 % 2.0 % 2.5 % 1.7 % Global Small Business Services 1.6 % 1.9 % 1.3 % 1.6 % 1.8 % 1.2 % Card Member Receivables: U.S. Consumer Services 1.3 % 1.5 % 1.3 % 1.5 % 1.7 % 1.3 % International Consumer and Network Services 2.0 % 2.2 % 1.5 % 2.1 % 2.3 % 1.5 % Global Small Business Services 1.7 % 1.9 % 1.8 % 1.8 % 2.0 % 1.6 % 2018 2017 Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Net Loss Ratio as a % of Charge Volume 90+ Days Past Billing as a % of Receivables Card Member Receivables: Global Corporate Payments 0.10 % 0.8 % 0.11 % 0.7 % We present 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 we consider 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 informati on with respect to our impaired Card Member loans and receivables. Impaired Card Member receivables are not significant for International Consumer and Network Services ( ICNS ) as of March 31 , 2018 and December 31, 2017 ; therefore, th is segment’s receivables are not included in the following tables . As of March 31, 2018 Accounts Classified as a TDR (c) 2018 (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 $ 254 $ 182 $ 209 $ 125 $ 770 $ 691 $ 52 International Consumer and Network Services 66 ― ― ― 66 65 ― Global Commercial Services 46 35 38 25 144 134 8 Card Member Receivables: U.S. Consumer Services ― ― 19 10 29 29 1 Global Commercial Services ― ― 48 21 69 69 3 Total $ 366 $ 217 $ 314 $ 181 $ 1,078 $ 988 $ 64 As of December 31, 2017 Accounts Classified as a TDR (c) 2017 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: U.S. Consumer Services $ 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 Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe 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 ag encies for which we have ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR. Accounts classified as a T DR include $ 15 million and $ 15 million that are over 90 days past due and accruing interest and $ 4 million and $ 5 million that are non-accruals as of March 31 , 2018 and December 31, 2017 , respectively. In Program TDRs include Card Member accounts that are currently enrolled in a modification program. Out of Program TDRs include $137 million and $ 141 million of Card Member accounts that have successfully completed a modification progr am and $44 million and $45 million of Card Membe r accounts that were not in compliance with the terms of the modification programs as of March 31 , 2018 and December 31, 2017 , respectively . |
Interest income recognized and average balance of impaired Card Member loans and receivables | The following table provides information with respect to our average balances and in terest income recognized from i mpaired Card Member loans and the average balances of impaired Card Member receivables for the three months ended March 31 : 2018 2017 Interest Interest Average Income Average Income (Millions) Balance Recognized Balance Recognized Card Member Loans: U.S. Consumer Services $ 740 $ 21 $ 616 $ 16 International Consumer and Network Services 61 5 53 4 Global Commercial Services 136 5 116 4 Card Member Receivables: U.S. Consumer Services 27 ― 18 ― Global Commercial Services 63 ― 40 ― Total $ 1,027 $ 31 $ 843 $ 24 |
Troubled debt restructurings | The following table provides additional information with respect to the U.S. Consumer Services ( USCS ) and GCS Card Member loans and receivables mo dified as TDRs for the three months ended March 31 , 2018 and 2017 . The ICNS Card Member loans and receivables modifications were not significant; therefore, this segment is not included in the following TDR disclosures. Three Months Ended March 31, 2018 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 11 $ 81 11 (b) Card Member Receivables 1 29 (c) 28 Total 12 $ 110 Three Months Ended March 31, 2017 Number of Outstanding Average Interest Average Payment Accounts Balances (a) Rate Reduction Term Extensions (in thousands) ($ in millions) (% Points) (# of Months) Troubled Debt Restructurings: Card Member Loans 8 $ 57 13 (b) Card Member Receivables 2 28 (c) 22 Total 10 $ 85 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. We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. |
Troubled debt restructurings that subsequently defaulted | The followin g table provides information with respect to the USCS and GCS Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months o f modification, for the three months ended March 31 , 2018 and 2017 . A Card Member is considered in d efault of a modification program after 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 default is factored into the reserves for Card Member loans and receivables. 2018 2017 Number of Accounts Aggregated Outstanding Balances Upon Default (a) Number of Accounts Aggregated Outstanding Balances Upon Default (a) (thousands) (millions) (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 2 $ 9 2 $ 11 Card Member Receivables 1 2 1 1 Total 3 $ 11 3 $ 12 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves For Losses (Tables)
Reserves For Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reserves For Losses Tables [Abstract] | |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31 : (Millions) 2018 2017 Balance, January 1 $ 1,706 $ 1,223 Provisions (a) 499 337 Net write-offs (b) Principal (358) (272) Interest and fees (71) (51) Other (c) 10 11 Balance, March 31 $ 1,786 $ 1,248 Provisions for principal, interest and fee reserve components. Principal write-offs are presented less recoveries of $ 106 million and $ 100 million, and include net write-offs from TDRs of $7 million and $ 12 million, for the three months ended March 31 , 2018 and 2017 , respectively. Recoveries of i nterest and fees were not significant . Includes foreign currency translation adjustments of $ 6 million and $ 7 million and other adjustments of $ 4 million and $ 4 million for the three months ended March 31 , 2018 and 2017 , respectively. |
Card Member loans and related reserves evaluated separately and collectively for impairment | The follo wing table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of March 31 , 2018 and December 31, 2017 : (Millions) 2018 2017 Card Member loans evaluated individually for impairment (a) $ 397 $ 367 Related reserves (a) $ 60 $ 57 Card Member loans evaluated collectively for impairment (b) $ 72,423 $ 73,032 Related reserves (b) $ 1,726 $ 1,649 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans , and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 3 1 : (Millions) 2018 2017 Balance, January 1 $ 521 $ 467 Provisions (a) 242 213 Net write-offs (b) (199) (194) Other (c) 1 5 Balance, March 31 $ 565 $ 491 Provisions for principal and fee reserve components. P rincipal and fee write-off s are presented less recoveries of $ 88 million and $ 93 million, including net write-offs (recoveries) from TDRs of $ (2) million and $ 6 million, for the three months ended March 31 , 2018 and 2017 , respectively. Includes foreign currency translation adjustments of $ 10 million a nd $ 9 million and other adjustments of $ (9) million and $ (4) million for the three months ended March 31 , 2018 and 2017 , respectively. |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and col lectively for impairment, and related reserves, as of March 31 , 2018 and December 31, 2017 : (Millions) 2018 2017 Card Member receivables evaluated individually for impairment (a) $ 98 $ 80 Related reserves (a) $ 4 $ 3 Card Member receivables evaluated collectively for impairment $ 54,143 $ 53,967 Related reserves (b) $ 561 $ 518 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investment Securities (Tables) [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of March 31 , 2018 and December 31, 2017 : 2018 2017 Gross Gross Estimated Gross Gross Estimated Unrealized Unrealized Fair Unrealized Unrealized Fair Description of Securities (Millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale debt securities: State and municipal obligations $ 1,122 $ 8 $ (5) $ 1,125 $ 1,369 $ 11 $ (3) $ 1,377 U.S. Government agency obligations 10 ― ― 10 11 ― ― 11 U.S. Government treasury obligations 1,678 4 (21) 1,661 1,051 3 (9) 1,045 Corporate debt securities 29 ― ― 29 28 ― ― 28 Mortgage-backed securities (a) 63 2 (1) 64 67 2 ― 69 Foreign government bonds and obligations 451 ― ― 451 581 ― ― 581 Equity securities (b) 51 ― (3) 48 51 ― (3) 48 Total $ 3,404 $ 14 $ (30) $ 3,388 $ 3,158 $ 16 $ (15) $ 3,159 Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Equity securities comprise investments in common stock and mutual funds . |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31 , 2018 and December 31, 2017 : 2018 2017 Less than 12 months 12 months or more Less than 12 months 12 months or more Gross Gross Gross Gross Description of Securities (Millions) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and municipal obligations $ 144 $ (4) $ ― $ ― $ 157 $ (3) $ ― $ ― U.S. Government treasury obligations 811 (14) 173 (7) 650 (3) 175 (6) Equity securities (a) ― N/A ― N/A ― ― 36 (2) Total $ 955 $ (18) $ 173 $ (7) $ 807 $ (6) $ 211 $ (8) Effective January 1, 2018, unrealized gains and losses o n equity securities are recorded in the Consolidated Statements of Income and are no longer assessed for other-than- temporary impairment. |
Available for Sale Securities Ratio of Fair Value to Amortized Cost | The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31 , 2018 and December 31, 2017 : Less than 12 months 12 months or more Total Ratio of Fair Value to Gross Gross Gross Amortized Cost Number of Estimated Unrealized Number of Estimated Unrealized Number of Estimated Unrealized (Dollars in millions) Securities Fair Value Losses Securities Fair Value Losses Securities Fair Value Losses 2018: 90%–100% 30 $ 955 $ (18) 5 $ 173 $ (7) 35 $ 1,128 $ (25) Total as of March 31, 2018 30 $ 955 $ (18) 5 $ 173 $ (7) 35 $ 1,128 $ (25) 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) |
Contractual maturities of investment securities | Contractual maturities for investment securities with stated maturities a s of March 31 , 2018 were as follows: Estimated (Millions) Cost Fair Value Due within 1 year $ 465 $ 465 Due after 1 year but within 5 years 1,653 1,639 Due after 5 years but within 10 years 218 214 Due after 10 years 1,017 1,022 Total $ 3,353 $ 3,340 |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Restricted cash held by trusts | The following table provides information on the restricted cash held by the Lendin g Trust and the Charge Trust as of March 31 , 2018 and December 31, 2017 , included in Other assets on the Consolida ted Balance Sheets: (Millions) 2018 2017 Lending Trust $ 145 $ 55 Charge Trust 2 7 Total $ 147 $ 62 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Customer Deposits (Tables) [Abstract] | |
Deposits By Component Alternative | As of March 31 , 2018 and December 31, 2017 , customer deposits were categorized as interest bearing or non-interest bearing as follows: (Millions) 2018 2017 U.S.: Interest bearing $ 65,913 $ 63,666 Non-interest bearing (includes Card Member credit balances of: 2018, $319 million; 2017, $358 million) 353 395 Non-U.S.: Interest bearing 42 34 Non-interest bearing (includes Card Member credit balances of: 2018, $344 million; 2017, $344 million) 357 357 Total customer deposits $ 66,665 $ 64,452 |
Deposits By Type | Customer deposits by deposit type as of March 31 , 2018 and December 31, 2017 were as follows: (Millions) 2018 2017 U.S. retail deposits: Savings accounts – Direct $ 34,544 $ 31,915 Certificates of deposit: (a) Direct 325 290 Third-party (brokered) 16,453 16,684 Sweep accounts – Third-party (brokered) 14,591 14,777 Other deposits: U.S. non-interest bearing deposits 34 37 Non-U.S. deposits 55 47 Card Member credit balances ― U.S. and non-U.S. 663 702 Total customer deposits $ 66,665 $ 64,452 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 39 months and 2.16 perce nt, respectively, as of March 31, 2018 . |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of March 31 , 2018 were as follows: (Millions) U.S. Non-U.S. Total 2018 $ 4,984 $ 16 $ 5,000 2019 4,610 11 4,621 2020 3,693 ― 3,693 2021 1,317 ― 1,317 2022 2,149 ― 2,149 After 5 years 25 ― 25 Total $ 16,778 $ 27 $ 16,805 |
Time Deposits $250,000 Or More | As of March 31 , 2018 and December 31, 2017 , certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2018 2017 U.S. $ 126 $ 114 Non-U.S. 17 11 Total $ 143 $ 125 |
Derivatives and Hedging Activ33
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivatives and Hedging Activities (Tables) [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31 , 2018 and December 31, 2017 : Other Assets Fair Value Other Liabilities Fair Value (Millions) 2018 2017 2018 2017 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 3 $ 11 $ 95 $ 34 Net investment hedges - Foreign exchange contracts 71 117 167 89 Total derivatives designated as hedging instruments 74 128 262 123 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 77 82 117 95 Total derivatives, gross 151 210 379 218 Less: Cash collateral netting (c)(d) ― (6) (94) (45) Derivative asset and derivative liability netting (e) (85) (80) (85) (80) Total derivatives, net $ 66 $ 124 $ 200 $ 93 F or centrally cleared derivatives , variation margin payments are legally characterized as settlement payments as opposed to collateral. Accordingly, the amounts disclosed for centrally cleared derivatives are based on gross assets and gross liabilities, net of variation margin. We also maintained several bilateral interest rate contracts that are shown gross of any collateral exchanged . Includes foreign 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 . We posted $125 million and $146 million as of March 31 , 2018 and December 31, 201 7 , respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other receivables on the Consolidated Balance Sheets and are not netted against the derivative balances. Represents the amount of netting of deri vative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. |
Effect of fair value hedges on results of operations | The following table represents the total amounts of income and expen se line items associated with the fair value hedges of our fixed-rate long-term debt on the Consolidated Statements of Income for the three months ended March 31 : Gains (losses) (Millions) 2018 2017 Interest expense (a) Other expenses Hedged items $ 210 $ 50 Derivatives designated as hedging instruments (191) (75) Total $ 19 $ (25) We adopted new accounting guidance providing targeted improvements to the accounting for hedging activities effective January 1, 2018. In compliance with the standard, amounts previously recorded in Other expenses have been prospectively recorded in Total interest expense. Refer to Note 1 for additional information. |
Fair Values (Tables)
Fair Values (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Values (Tables) [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The followin g table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy, as of March 31 , 2018 and December 31, 2017 : 2018 2017 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 48 $ 1 $ 47 $ ― $ 48 $ 1 $ 47 $ ― Debt securities 3,340 1,661 1,679 ― 3,111 1,045 2,066 ― Derivatives (a) 151 ― 151 ― 210 ― 210 ― Total Assets 3,539 1,662 1,877 ― 3,369 1,046 2,323 ― Liabilities: Derivatives (a) 379 ― 379 ― 218 ― 218 ― Total Liabilities $ 379 $ ― $ 379 $ ― $ 218 $ ― $ 218 $ ― Refer to Note 5 for the fair values of investment securities and to Note 9 for the fair values of der ivative assets and liabilities, on a further disaggregated basis. |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estima ted fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of March 31 , 2018 and December 31, 2017 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of March 31 , 2018 and December 31, 2017 , and require management’s judgment. These figures may not be indicative of future fair value s, nor can our fair va lue be estimated by aggregating the amounts presented. Carrying Corresponding Fair Value Amount 2018 (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) $ 31 $ 31 $ 30 $ 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 77 77 ― 77 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 17 17 ― 17 ― Long-term debt (c) $ 52 $ 53 $ ― $ 53 $ ― 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 $ ― Level 2 amounts reflect time deposits and short-term investments. Includes Card Member receivables (including fair values of Card Member receivables of $ 7.8 billion and $ 8.9 billion held by a consolidated VIE as of March 31 , 2018 and December 31, 2017 , 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 $ 23.9 billion and $ 25.6 billi on as of March 31 , 2018 and December 31, 2017 , respectively, and the fair values of long-term debt were $ 15.7 billion and $ 18.6 billion as of March 31 , 2018 and December 31, 2017 , respectively. Presented as a component of custom er deposits on the Consolidated Balance Sheets. |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Components of Comprehensive Income, net of tax [Abstract] | |
Components of comprehensive income (loss), net of tax | AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three months ended March 31 , 2018 and 2017 were as follows: 2018 (Millions) , net of tax Net Unrealized Gains (Losses) on Debt Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2017 $ ― $ (1,961) $ (467) $ (2,428) Net unrealized losses (13) ― ― (13) Net translation gain of investments in foreign operations ― 192 ― 192 Net losses related to hedges of investments in foreign operations ― (162) ― (162) Pension and other postretirement benefits ― ― 28 28 Other (a) 2 ― ― 2 Net change in accumulated other comprehensive (loss) income (11) 30 28 47 Balances as of March 31, 2018 $ (11) $ (1,931) $ (439) $ (2,381) 2017 (Millions) , net of tax Net Unrealized Gains (Losses) on Investment Securities Foreign Currency Translation Adjustments Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2016 $ 7 $ (2,262) $ (529) $ (2,784) Net unrealized gains 6 ― ― 6 Net translation gain of investments in foreign operations ― 545 ― 545 Net losses related to hedges of investments in foreign operations ― (229) ― (229) Pension and other postretirement benefits ― ― (8) (8) Net change in accumulated other comprehensive income (loss) 6 316 (8) 314 Balances as of March 31, 2017 $ 13 $ (1,946) $ (537) $ (2,470) Represents unrealized gains and losses pertaining to equity securities moved from AOCI to retained earnings as of January 1, 2018, due to the prospective adoption of the financial instruments guidance effective January 1, 2018 (refer to Note 1 ) . |
Accumulated Other Comprehensive Loss Income - Tax Effect | The following table shows the tax impact for the three months ended March 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2018 2017 Investment securities $ (3) $ 3 Foreign currency translation adjustments 2 (191) Net investment hedges (54) (140) Pension and other postretirement benefits 3 (9) Total tax impact $ (52) $ (337) |
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the three months ended March 31 , 2018 and 2017 : Gains (losses) recognized in earnings Amount Description ( Millions ) Income Statement Line Item 2018 2017 Foreign currency translation adjustments Reclassification of translation adjustments and related hedges Other expenses 1 ― Related income tax Income tax provision (1) ― Reclassification of foreign currency translation adjustments ― ― Total $ ― $ ― |
Non-Interest Revenue and Expe36
Non-Interest Revenue and Expense Detail (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Cost And Expense Disclosure Operating (Tables) [Abstract] | |
Details of other commissions and fees | The following is a detail of Other fees and commissions for the three months ended March 31 : (Millions) 2018 2017 Fees charged to Card Members: Delinquency fees $ 242 $ 214 Foreign currency conversion fee revenue 225 199 Other customer fees: Loyalty coalition-related fees 111 102 Travel commissions and fees 99 90 Service fees and other (a) 104 106 Total Other fees and commissions $ 781 $ 711 Other includes Membership Rewards program fees that are not related to contracts with customers. |
Details of other revenues | The following is a detail of Other revenues for the three months ended March 31 : (Millions) 2018 2017 Global Network Services partner revenues $ 79 $ 94 Other (a) 298 267 Total Other revenues $ 377 $ 361 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 agreement, earnings from equity method investments (including the GBT JV) and other miscellaneous revenue and fees. |
Detail of other, net expense | The following is a detail of Other expenses for the three months ended March 31 : (Millions) 2018 2017 Occupancy and equipment $ 520 $ 474 Professional services 457 501 Other (a) 457 395 Total Other expenses $ 1,434 $ 1,370 For the three months ended March 31, 2018, o ther expense includes the loss on a transaction involving the operations of ou r prepaid reloadable and gift card business and gains on the re-measurement of certain equity investments previously carried at cost . For both periods, other expense also includes general operating expenses, Card and merchant-related fraud losses, communication expenses, foreign cu rrency-related gains and losses and insurance costs. |
Earnings Per Common Share (EP37
Earnings Per Common Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the three months ended March 31 were as follows: (Millions, except per share amounts) 2018 2017 Numerator: Basic and diluted: Net income $ 1,634 $ 1,251 Preferred dividends (21) (21) Net income available to common shareholders $ 1,613 $ 1,230 Earnings allocated to participating share awards (a) (13) (10) Net income attributable to common shareholders $ 1,600 $ 1,220 Denominator: (a) Basic: Weighted-average common stock 859 899 Add: Weighted-average stock options (b) 2 4 Diluted 861 903 Basic EPS $ 1.86 $ 1.36 Diluted EPS $ 1.86 $ 1.35 Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. The dilutive effect of unex ercised stock options excludes from the computation of EPS 0.6 million and 1.2 million of options for the three months ended March 31 , 2018 and 2017 , respectively, because inclusion of the options would have been anti-dilutive . |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Operating segment information | The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three months ended March 3 1: Corporate & (Millions, except where indicated) USCS ICNS GCS GMS Other (a) Consolidated 2018 Total non-interest revenues $ 2,294 $ 1,551 $ 2,838 $ 1,110 $ 84 $ 7,877 Revenue from contracts with customers (b) 1,799 1,093 2,495 1,110 84 6,581 Interest income 1,656 294 377 ― 135 2,462 Interest expense 253 78 171 (63) 182 621 Total revenues net of interest expense 3,697 1,767 3,044 1,173 37 9,718 Net income (loss) $ 640 $ 291 $ 552 $ 472 $ (321) $ 1,634 Total assets (billions) $ 94 $ 42 $ 58 $ 29 $ (43) $ 180 2017 Total non-interest revenues $ 2,118 $ 1,400 $ 2,603 $ 1,021 $ 65 $ 7,207 Revenue from contracts with customers (b) 1,657 1,009 2,297 1,021 63 6,047 Interest income 1,310 235 319 ― 81 1,945 Interest expense 161 54 123 (43) 148 443 Total revenues net of interest expense 3,267 1,581 2,799 1,064 (2) 8,709 Net income (loss) $ 494 $ 252 $ 409 $ 357 $ (261) $ 1,251 Total assets (billions) $ 85 $ 36 $ 52 $ 26 $ (38) $ 161 Corporate & Other includes adjustments and eliminations for intersegment activity. Includes discount revenue, certain other fees and commissions and other revenues from customers. |
Basis of Presentation (Details
Basis of Presentation (Details Textuals) $ in Millions | Jan. 01, 2016USD ($) |
PriorPeriodReclassificationAdjustment[Abstract] | |
Cumulative Effect of New Accounting Principle in Period of Adoption on Retained Earnings | $ 55.2 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||
Discount revenue | $ 5,889 | $ 5,387 | |||||
Other | 377 | 361 | |||||
Expenses | |||||||
Marketing and business development | 1,345 | 1,285 | |||||
Card Member Rewards | $ 2,347 | 2,061 | |||||
Revenue Recognition Standard Impacts [Member] | |||||||
Revenues | |||||||
Discount revenue | $ 981 | $ 930 | $ 928 | 868 | $ 3,707 | $ 3,699 | |
Other | (78) | (71) | (64) | (65) | (278) | (253) | |
Expenses | |||||||
Marketing and business development | 617 | 591 | 593 | 549 | 2,350 | 2,420 | |
Card Member Rewards | $ 286 | $ 268 | $ 271 | $ 254 | $ 1,079 | $ 1,026 |
Business Events (Details Textua
Business Events (Details Textuals) $ in Billions | Mar. 31, 2018USD ($) |
Business Events (Line Items) | |
Value of outstanding principal and interest of purchased loans at acquisition of the acquired Hilton portfolio | $ 1 |
Loans and Accounts Receivable42
Loans and Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Loans segment information | ||||
Card Member loans, gross | $ 72,820 | $ 73,399 | ||
Less: Reserve for losses | 1,786 | 1,706 | $ 1,248 | $ 1,223 |
Card Member loans, net | 71,034 | 71,693 | ||
Other loans, less reserves | 2,872 | 2,607 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 91 | 80 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 24,058 | 25,695 | ||
U S Consumer Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 52,655 | 53,668 | ||
U S Consumer Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member loans available to settle the obligations of a variable interest entity | 24,100 | 25,700 | ||
International Consumer and Network Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | 8,667 | 8,651 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans, gross | $ 11,498 | $ 11,080 |
Loans and Accounts Receivable43
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts receivable segment information | ||||
Card Member receivables | $ 54,241 | $ 54,047 | ||
Less: Reserve for losses | 565 | 521 | $ 491 | $ 467 |
Card Member receivables, net | 53,676 | 53,526 | ||
Other receivables, net | 3,194 | 3,209 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 31 | 31 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 7,807 | 8,919 | ||
Non United States [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 0 | 0 | ||
U S Consumer Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 11,659 | 13,143 | ||
U S Consumer Services [Member] | Variable Interest Enterprise [Member] | ||||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Gross Card Member receivables available to settle the obligations of a variable interest entity | 7,800 | 8,900 | ||
International Consumer and Network Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 7,071 | 7,803 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 35,511 | $ 33,101 |
Loans and Accounts Receivable44
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | $ 51,922 | $ 52,961 |
Total aging | 52,655 | 53,668 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 201 | 201 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 156 | 162 |
U S Consumer Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 376 | 344 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 11,510 | 12,993 |
Total aging | 11,659 | 13,143 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 48 | 53 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 35 | 33 |
U S Consumer Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 66 | 64 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 8,524 | 8,530 |
Total aging | 8,667 | 8,651 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 46 | 37 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 31 | 28 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 66 | 56 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 6,967 | 7,703 |
Total aging | 7,071 | 7,803 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 33 | 29 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 22 | 21 |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 49 | 50 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 11,278 | 10,892 |
Total aging | 11,427 | 11,025 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 45 | 43 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 33 | 31 |
Global Small Business Services [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 71 | 59 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Current | 15,931 | 15,868 |
Total aging | 16,218 | 16,119 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 93 | 91 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables 60 To 89 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 68 | 54 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 126 | 106 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 71 | 55 |
Global Corporate Payments [Member] | Card Member Loans [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | 1 | 0 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Financing Receivables Period Past Due [Domain] | ||
Accounts Receivables [Line Items] | ||
Total aging | 19,293 | 16,982 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||
Accounts Receivables [Line Items] | ||
Past Due | $ 163 | $ 148 |
Loans and Accounts Receivable45
Loans and Accounts Receivable (Details 3) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.00% | 1.70% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.40% | 2.00% |
30 Days Past Due as a % of Total | 1.40% | 1.20% |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.30% | 1.50% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.50% | 1.70% |
30 Days Past Due as a % of Total | 1.30% | 1.30% |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.10% | 2.00% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.60% | 2.50% |
30 Days Past Due as a % of Total | 1.60% | 1.70% |
International Consumer and Network Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 2.00% | 2.10% |
Net Write-Off Rate - Principal, Interest, and Fees | 2.20% | 2.30% |
30 Days Past Due as a % of Total | 1.50% | 1.50% |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Loss Ratio as a % of Charge Volume | 0.10% | 0.11% |
90 days past billing as a percentage of receivables | 0.80% | 0.70% |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.60% | 1.60% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.90% | 1.80% |
30 Days Past Due as a % of Total | 1.30% | 1.20% |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Net Write-Off Rate - Principal Only | 1.70% | 1.80% |
Net Write-Off Rate - Principal, Interest, and Fees | 1.90% | 2.00% |
30 Days Past Due as a % of Total | 1.80% | 1.60% |
Loans and Accounts Receivable46
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 366 | $ 327 |
Non-accrual loans | 217 | 199 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 314 | 261 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 181 | 186 |
Total impaired loans and receivables | 1,078 | 973 |
Unpaid principal balance | 988 | 892 |
Related allowance for Troubled Debt Restructurings | 64 | 60 |
Accounts Receivable and Loans Textuals [Abstract] | ||
Total loans and receivables modified as a TDR, non-accrual | 4 | 5 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 15 | 15 |
Financing Receivable, Modifications, Out of Program - success, Recorded Investment | 137 | 141 |
Financing Receivable, Modifications, Out of Program - not compliant, Recorded Investment | 44 | 45 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 254 | 233 |
Non-accrual loans | 182 | 168 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 209 | 178 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 125 | 131 |
Total impaired loans and receivables | 770 | 710 |
Unpaid principal balance | 691 | 639 |
Related allowance for Troubled Debt Restructurings | 52 | 49 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 19 | 15 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 10 | 9 |
Total impaired loans and receivables | 29 | 24 |
Unpaid principal balance | 29 | 24 |
Related allowance for Troubled Debt Restructurings | 1 | 1 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 66 | 56 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 0 | 0 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 0 | 0 |
Total impaired loans and receivables | 66 | 56 |
Unpaid principal balance | 65 | 55 |
Related allowance for Troubled Debt Restructurings | 0 | 0 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 46 | 38 |
Non-accrual loans | 35 | 31 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 38 | 31 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 25 | 27 |
Total impaired loans and receivables | 144 | 127 |
Unpaid principal balance | 134 | 118 |
Related allowance for Troubled Debt Restructurings | 8 | 8 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Financing Receivable, Modifications, In-Program, Recorded Investment | 48 | 37 |
Financing Receivable, Modifications, Out of Program, Recorded Investment | 21 | 19 |
Total impaired loans and receivables | 69 | 56 |
Unpaid principal balance | 69 | 56 |
Related allowance for Troubled Debt Restructurings | $ 3 | $ 2 |
Loans and Accounts Receivable47
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | $ 1,027 | $ 843 |
Interest income recognized | 31 | 24 |
U S Consumer Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 740 | 616 |
Interest income recognized | 21 | 16 |
U S Consumer Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 27 | 18 |
Interest income recognized | 0 | 0 |
International Consumer and Network Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 61 | 53 |
Interest income recognized | 5 | 4 |
Global Commercial Services [Member] | Card Member Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 136 | 116 |
Interest income recognized | 5 | 4 |
Global Commercial Services [Member] | Card Member Receivables [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Average balance of impaired loans | 63 | 40 |
Interest income recognized | $ 0 | $ 0 |
Loans and Accounts Receivable48
Loans and Accounts Receivable (Details 6) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)M | Mar. 31, 2017USD ($)M | |
Troubled Debt Restructurings | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 12,000 | 10,000 |
Aggregated Outstanding Balance | $ 110 | $ 85 |
Card Member Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 11,000 | 8,000 |
Aggregated Outstanding Balance | $ 81 | $ 57 |
Average basis point reduction in interest rate by class of Card Member loans | 13.00% | 13.00% |
Card Member Receivables [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 1,000 | 2,000 |
Aggregated Outstanding Balance | $ 29 | $ 28 |
Average payment term extension | M | 28 | 22 |
Loans and Accounts Receivable49
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Troubled Debt Restructurings That Subsequently Defaulted [Domain] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 3 | 3 |
Aggregated Outstanding Balance Upon Payment Default | $ 11 | $ 12 |
Card Member Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 2 | 2 |
Aggregated Outstanding Balance Upon Payment Default | $ 9 | $ 11 |
Card Member Receivables [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Accounts | 1 | 1 |
Aggregated Outstanding Balance Upon Payment Default | $ 2 | $ 1 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in the Card Member loans reserve for losses | ||
Balance, January 1 | $ 1,706 | $ 1,223 |
Card Member loans - provisions | 499 | 337 |
Card Member loans net write-offs - principal | (358) | (272) |
Card Member loans net write-offs - interest and fees | (71) | (51) |
Card Member loans reserves for losses - other | 10 | 11 |
Balance, September 30 | $ 1,786 | $ 1,248 |
Reserves For Losses (Details 1)
Reserves For Losses (Details 1) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Abstract] | ||
Card Member loans evaluated individually for impairment | $ 397 | $ 367 |
Reserves on Card Member loans evaluated individually for impairment | 60 | 57 |
Card Member loans evaluated collectively for impairment | 72,423 | 73,032 |
Reserves on Card Member loans evaluated collectively for impairment | $ 1,726 | $ 1,649 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in the Card Member receivables reserve for losses | ||
Balance, January 1 | $ 521 | $ 467 |
Card Member receivables - provisions | 242 | 213 |
Card Member receivables - net write-offs | (199) | (194) |
Card Member receivables reserves for losses - other | 1 | 5 |
Balance, September 30 | $ 565 | $ 491 |
Reserves for Losses (Details 3)
Reserves for Losses (Details 3) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Abstract] | ||
Card Member receivables evaluated individually for impairment | $ 98 | $ 80 |
Reserves on Card Member receivables evaluated individually for impairment | 4 | 3 |
Card Member receivables evaluated collectively for impairment | 54,143 | 53,967 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 561 | $ 518 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | $ 1 | $ 5 |
Card Member loans reserves for losses - other | 10 | 11 |
Allowance for Card Member Receivables and Reserves, Recoveries of Bad Debts | 88 | 93 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 106 | 100 |
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | (2) | 6 |
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | 7 | 12 |
Foreign Currency Translation Adjustments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | 10 | 9 |
Card Member loans reserves for losses - other | 6 | 7 |
Other Items [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Card Member receivables reserves for losses - other | (9) | (4) |
Card Member loans reserves for losses - other | $ 4 | $ 4 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available for Sale Securities by Type | ||
Cost | $ 3,404 | $ 3,158 |
Gross Unrealized Gains | 14 | 16 |
Gross Unrealized Losses | (30) | (15) |
Estimated Fair Value | 3,388 | 3,159 |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 1,122 | 1,369 |
Gross Unrealized Gains | 8 | 11 |
Gross Unrealized Losses | (5) | (3) |
Estimated Fair Value | 1,125 | 1,377 |
U.S. Government agency obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 10 | 11 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 10 | 11 |
U.S. Government treasury obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 1,678 | 1,051 |
Gross Unrealized Gains | 4 | 3 |
Gross Unrealized Losses | (21) | (9) |
Estimated Fair Value | 1,661 | 1,045 |
Corporate debt securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 29 | 28 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 29 | 28 |
Mortgage-backed securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 63 | 67 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 64 | 69 |
Equity securities [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 51 | 51 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (3) |
Estimated Fair Value | 48 | 48 |
Foreign government bonds and obligations [Member] | ||
Schedule of Available for Sale Securities by Type | ||
Cost | 451 | 581 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 451 | $ 581 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 955 | $ 807 |
Estimated Fair Value, 12 months or more | 173 | 211 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (18) | (6) |
Gross Unrealized Losses, 12 months or more | (7) | (8) |
U.S. States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 144 | 157 |
Estimated Fair Value, 12 months or more | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (4) | (3) |
Gross Unrealized Losses, 12 months or more | 0 | 0 |
Equity 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 | 36 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | |
Gross Unrealized Losses, 12 months or more | 2 | |
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 | 811 | 650 |
Estimated Fair Value, 12 months or more | 173 | 175 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 14 | 3 |
Gross Unrealized Losses, 12 months or more | $ 7 | $ 6 |
Investment Securities (Detail57
Investment Securities (Details 2) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)securities | Dec. 31, 2017USD ($)securities | |
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 30 | 34 |
Number of securities, 12 months or more | securities | 5 | 13 |
Number of securities, total | securities | 35 | 47 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 955 | $ 807 |
Estimated Fair Value, 12 months or more | 173 | 211 |
Estimated Fair Value, Total | 1,128 | 1,018 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (18) | (6) |
Gross Unrealized Losses, 12 months or more | (7) | (8) |
Gross Unrealized Losses, Total | $ (25) | $ (14) |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available For Sale Securities Continuous Unrealized Loss Position Qualitative Disclosure [Abstract] | ||
Number of securities, less than 12 months | securities | 30 | 34 |
Number of securities, 12 months or more | securities | 5 | 13 |
Number of securities, total | securities | 35 | 47 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 955 | $ 807 |
Estimated Fair Value, 12 months or more | 173 | 211 |
Estimated Fair Value, Total | 1,128 | 1,018 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (18) | (6) |
Gross Unrealized Losses, 12 months or more | (7) | (8) |
Gross Unrealized Losses, Total | $ (25) | $ (14) |
Investment Securities (Detail58
Investment Securities (Details 3) $ in Millions | Mar. 31, 2018USD ($) |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Due within 1 year | $ 465 |
Due after 1 year but within 5 years | 1,653 |
Due after 5 years but within 10 years | 218 |
Due after 10 years | 1,017 |
Total | 3,353 |
Estimated Fair Value | |
Estimated Fair Value, Due within 1 year | 465 |
Estimated Fair Value, Due after 1 year but within 5 years | 1,639 |
Estimated Fair Value, Due after 5 years but within 10 years | 214 |
Estimated Fair Value, Due after 10 years | 1,022 |
Total | $ 3,340 |
Investment Securities (Detail59
Investment Securities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investment Securities (Details) [Abstract] | ||
Other-than-temporary impairments recognized during the period | $ 0 | $ 0 |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheet | $ 415 | $ 337 | $ 311 | $ 286 |
Variable Interest Entity | ||||
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheet | 147 | 62 | ||
American Express Charge Trust [Member] | Variable Interest Entity | ||||
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheet | 2 | 7 | ||
American Express Lending Trust [Member] | Variable Interest Entity | ||||
Assets from Trusts [Line Items] | ||||
Restricted cash included in Other assets per Consolidated Balance Sheet | $ 145 | $ 55 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Mar. 31, 2018USD ($) |
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 7.1 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect ownership of variable interests | $ 9.2 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
U.S.: | ||
Interest-bearing | $ 65,913 | $ 63,666 |
Non-interest-bearing | 353 | 395 |
Non-U.S.: | ||
Interest-bearing | 42 | 34 |
Non-interest-bearing | 357 | 357 |
Total customer deposits | 66,665 | 64,452 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 319 | 358 |
Non-U.S.: | ||
Non-interest-bearing | $ 344 | $ 344 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 34,544 | $ 31,915 |
Certificates of deposit - Direct | 325 | 290 |
Certificates of deposit - Third party | 16,453 | 16,684 |
Sweep accounts - Third party | 14,591 | 14,777 |
Other retail deposits: | ||
U.S. non-interest bearing deposits, Other | 34 | 37 |
Non-US Deposits, Other | 55 | 47 |
Card Member credit balances - U.S. and non-U.S. | 663 | 702 |
Total customer deposits | $ 66,665 | $ 64,452 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Mar. 31, 2018USD ($) |
Time Deposits By Maturity | |
2,018 | $ 5,000 |
2,019 | 4,621 |
2,020 | 3,693 |
2,021 | 1,317 |
2,022 | 2,149 |
After 5 years | 25 |
Total | 16,805 |
United States [Member] | |
Time Deposits By Maturity | |
2,018 | 4,984 |
2,019 | 4,610 |
2,020 | 3,693 |
2,021 | 1,317 |
2,022 | 2,149 |
After 5 years | 25 |
Total | 16,778 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,018 | 16 |
2,019 | 11 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
After 5 years | 0 |
Total | $ 27 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 143 | $ 125 |
United States [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | 126 | 114 |
Non Us [Member] | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 17 | $ 11 |
Customer Deposits (Details Text
Customer Deposits (Details Textuals) | Mar. 31, 2018M |
Customer Deposits Textuals [Abstract] | |
Weighted Average Rate Domestic Deposit Certificates Of Deposit | 2.16% |
Weighted Average Maturity of Certificates of Deposits (in Months) | 39 |
Contingencies (Details Textuals
Contingencies (Details Textuals) $ in Millions | Mar. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 420 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Estimate Of Possible Loss | $ 0 |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | $ 151,000,000 | $ 210,000,000 |
Total fair value of derivatives liabilties | 379,000,000 | 218,000,000 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | 0 | 6,000,000 |
Derivative asset and liability netting | (85,000,000) | (80,000,000) |
Total derivative assets | 66,000,000 | 124,000,000 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 74,000,000 | 128,000,000 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 77,000,000 | 82,000,000 |
Other Assets [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 3,000,000 | 11,000,000 |
Other Assets [Member] | Net Investment Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives assets | 71,000,000 | 117,000,000 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral netting | (94,000,000) | (45,000,000) |
Derivative asset and liability netting | (85,000,000) | (80,000,000) |
Total derivative liabilities | 200,000,000 | 93,000,000 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 262,000,000 | 123,000,000 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 117,000,000 | 95,000,000 |
Other Liabilities [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | 95,000,000 | 34,000,000 |
Other Liabilities [Member] | Net Investment Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivatives liabilties | $ 167,000,000 | 89,000,000 |
Individually Significant Counterparties [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 0 | |
Total derivative liabilities | $ 0 |
Derivatives and Hedging Activ69
Derivatives and Hedging Activities (Details 1) - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged item | $ 50 | |
Derivatives designated as hedging instruments | (75) | |
Total | $ (25) | |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged item | $ 210 | |
Derivatives designated as hedging instruments | (191) | |
Total | $ 19 |
Derivatives and Hedging Activ70
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||
Net reduction in interest expense on long term debt and other | $ 14 | $ 44 | |
Margin On Interest Rate Swap Not Netted | 125 | $ 146 | |
Derivative [Line Items] | |||
Notional amount of long-term debt | 22,900 | 23,600 | |
Gross amount of hedged item | 23,400 | 23,800 | |
Cummulative fair value hedging adjustment of hedged item in fair value hedge | (392) | $ (182) | |
Effective portion of gain (loss) on hedges | (162) | (229) | |
Other Expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) in Changes of Fair Value of Derivatives not designated as hedges | (21) | (17) | |
Gain on embedded derivatives | (2) | 1 | |
Net Investment Hedges [Member] | Other Expense [Member] | |||
Derivative [Line Items] | |||
Amount reclassified from AOCI into income | 1 | 0 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 1 | $ 0 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investment securities: | ||
Equity securities and other | $ 48 | $ 48 |
Debt securities | 3,340 | 3,111 |
Derivatives | 151 | 210 |
Total assets | 3,539 | 3,369 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities and other | 1 | 1 |
Debt securities | 1,661 | 1,045 |
Derivatives | 0 | 0 |
Total assets | 1,662 | 1,046 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities and other | 47 | 47 |
Debt securities | 1,679 | 2,066 |
Derivatives | 151 | 210 |
Total assets | 1,877 | 2,323 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities and other | 0 | 0 |
Debt securities | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair Values (Details 1)
Fair Values (Details 1) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities [Abstract] | ||
Derivatives | $ 379 | $ 218 |
Total liabilities | 379 | 218 |
Level 1 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 379 | 218 |
Total liabilities | 379 | 218 |
Level 3 [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheet | $ 31,092 | $ 32,927 | $ 29,366 | $ 25,208 |
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 16,805 | |||
Long-term debt | 52,461 | 55,804 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 53,676 | 53,526 | ||
Card Member loans, net | 71,034 | 71,693 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 15,800 | 18,560 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheet | 31,000 | 33,000 | ||
Other financial assets | 57,000 | 57,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 74,000 | 74,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 77,000 | 76,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 17,000 | 17,000 | ||
Long-term debt | 52,000 | 56,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheet | 31,000 | 33,000 | ||
Other financial assets | 57,000 | 57,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 75,000 | 75,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 77,000 | 76,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 17,000 | 17,000 | ||
Long-term debt | 53,000 | 57,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 15,700 | 18,600 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 7,800 | 8,900 | ||
Card Member loans, net | 23,900 | 25,600 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheet | 30,000 | 32,000 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Level 2 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheet | 1,000 | 1,000 | ||
Other financial assets | 57,000 | 57,000 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 77,000 | 76,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 17,000 | 17,000 | ||
Long-term debt | 53,000 | 57,000 | ||
Level 3 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheet | 0 | 0 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Loans, net | 75,000 | 75,000 | ||
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 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Type of Guarantee | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 1,000 |
Amount of related liability | $ 46 | $ 52 |
Changes in Accumulated Other 75
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in Other Comprehensive income | ||
Balances as of start of period | $ (2,428) | |
Net unrealized Pension and other postretirement benefits, net of tax | 28 | $ (8) |
Balances as of end of period | (2,381) | |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||
Investment securities | (3) | 3 |
Foreign currency translation adjustments | 2 | (191) |
Net investment hedges | (54) | (140) |
Pension and other postretirement benefits | 3 | (9) |
Total tax impact | (52) | (337) |
Accumulated Other Comprehensive Loss [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | (2,428) | (2,784) |
Net unrealized gains | (13) | 6 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Net translation gain of investments in foreign operations | 192 | 545 |
Net losses related to hedges of investment in foreign operations | (162) | (229) |
Net unrealized Pension and other postretirement benefits, net of tax | 28 | (8) |
Net change in accumulated other comprehensive income (loss) | 47 | 314 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 2 | |
Balances as of end of period | (2,381) | (2,470) |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | 0 | 7 |
Net unrealized gains | (13) | 6 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Net translation gain of investments in foreign operations | 0 | 0 |
Net losses related to hedges of investment in foreign operations | 0 | 0 |
Net unrealized Pension and other postretirement benefits, net of tax | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | (11) | 6 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 2 | |
Balances as of end of period | (11) | 13 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | (1,961) | (2,262) |
Net unrealized gains | 0 | 0 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Net translation gain of investments in foreign operations | 192 | 545 |
Net losses related to hedges of investment in foreign operations | (162) | (229) |
Net unrealized Pension and other postretirement benefits, net of tax | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 30 | 316 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 0 | |
Balances as of end of period | (1,931) | (1,946) |
Net Unrealized Pension and Other Postretirement Gains (Losses) [Member] | ||
Changes in Other Comprehensive income | ||
Balances as of start of period | (467) | (529) |
Net unrealized gains | 0 | 0 |
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Net translation gain of investments in foreign operations | 0 | 0 |
Net losses related to hedges of investment in foreign operations | 0 | 0 |
Net unrealized Pension and other postretirement benefits, net of tax | 28 | (8) |
Net change in accumulated other comprehensive income (loss) | 28 | (8) |
Other - Net Unrealized Gains (Losses) on Equity Securities | 0 | |
Balances as of end of period | $ (439) | $ (537) |
Changes in Accumulated Other 76
Changes in Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other non-interest revenue | $ 377 | $ 361 |
Interest expense on long-term debt and other | 351 | 294 |
Other expenses | 1,434 | 1,370 |
Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Foreign Currency Translation Adjustments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Reclassification out of accumulated other comprehensive income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Increase (decrease) due to amounts reclassified into earnings | 0 | 0 |
Reclassification out of accumulated other comprehensive income [Member] | Net Unrealized Gains (Losses) on Investment Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other non-interest revenue | 0 | 0 |
Income tax provision for other non-interest revenue | 0 | 0 |
Other non-interest revenue, net of taxes | 0 | 0 |
Reclassification out of accumulated other comprehensive income [Member] | Foreign Currency Translation Adjustments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expenses | 1 | 0 |
Income tax benefit for other, net expense | (1) | 0 |
Other, net expense, net of taxes | $ 0 | $ 0 |
Non-Interest Revenue and Expe77
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Delinquency fees | $ 242 | $ 214 |
Foreign currency conversion fee revenue | 225 | 199 |
Loyalty Partner-related fees | 111 | 102 |
Travel commissions and fees | 99 | 90 |
Other | 104 | 106 |
Total Other fees and commissions | $ 781 | $ 711 |
Non-Interest Revenue and Expe78
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Global Network Services partner revenues | $ 79 | $ 94 |
Other | 298 | 267 |
Total other revenues | $ 377 | $ 361 |
Non-Interest Revenue and Expe79
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | ||
Professional services | $ 457 | $ 501 |
Occupancy and equipment | 520 | 474 |
Other | 457 | 395 |
Total other, net | $ 1,434 | $ 1,370 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes (Textuals) | |||
Unrecognized tax benefits as a result of potential resolutions of prior years' tax | $ 319 | ||
Actual tax rates | 21.50% | 32.00% | |
Unrecognized tax benefits that, if recognized, could impact effective tax rate. | $ 291 | ||
U.S. Tax Act Discrete Net Charge | $ 2,600 | ||
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 (EP81
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Basic and diluted: | |||
Net income | $ 1,634 | $ 1,251 | |
Preferred dividends | (21) | (21) | |
Net income available to common stockholders - basic | 1,613 | 1,230 | |
Net income available to common stockholders - diluted | 1,613 | 1,230 | |
Earnings allocated to participating share awards | (13) | (10) | |
Net income attributable to common shareholders | $ 1,600 | $ 1,220 | |
Denominator: | |||
Basic | 859 | 899 | |
Add: Weighted-average stock options | 2 | 4 | |
Diluted | 861 | 903 | |
Earnings Per Common Share, Basic (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [1] | $ 1.86 | $ 1.36 |
Earnings Per Common Share, Diluted (Note 15) [Abstract] | |||
Net income attributable to common shareholders | [1] | $ 1.86 | $ 1.35 |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per Share, amount | 0.6 | 1.2 | |
[1] | Rep resents net income less (i) earnings allocated to participating share awards of $ 13 million and $ 10 million for the three months ended March 31 , 2018 and 2017 , respectively, and (ii) dividends on preferred shares of $ 21 million for both the three months ended March 31 , 2018 and 2017 . |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | $ 7,877 | $ 7,207 | ||
Revenue from contracts with customers | [1] | 6,581 | 6,047 | |
Interest income | 2,462 | 1,945 | ||
Interest expense | 621 | 443 | ||
Total revenues, net of interest expense | 9,718 | 8,709 | ||
Net income | 1,634 | 1,251 | ||
Total assets | 179,956 | 161,000 | $ 181,196 | |
U S Consumer Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 2,294 | 2,118 | ||
Revenue from contracts with customers | [1] | 1,799 | 1,657 | |
Interest income | 1,656 | 1,310 | ||
Interest expense | 253 | 161 | ||
Total revenues, net of interest expense | 3,697 | 3,267 | ||
Net income | 640 | 494 | ||
Total assets | 94,000 | 85,000 | ||
International Consumer and Network Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 1,551 | 1,400 | ||
Revenue from contracts with customers | [1] | 1,093 | 1,009 | |
Interest income | 294 | 235 | ||
Interest expense | 78 | 54 | ||
Total revenues, net of interest expense | 1,767 | 1,581 | ||
Net income | 291 | 252 | ||
Total assets | 42,000 | 36,000 | ||
Global Commercial Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 2,838 | 2,603 | ||
Revenue from contracts with customers | [1] | 2,495 | 2,297 | |
Interest income | 377 | 319 | ||
Interest expense | 171 | 123 | ||
Total revenues, net of interest expense | 3,044 | 2,799 | ||
Net income | 552 | 409 | ||
Total assets | 58,000 | 52,000 | ||
Global Merchant Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 1,110 | 1,021 | ||
Revenue from contracts with customers | [1] | 1,110 | 1,021 | |
Interest income | 0 | 0 | ||
Interest expense | (63) | (43) | ||
Total revenues, net of interest expense | 1,173 | 1,064 | ||
Net income | 472 | 357 | ||
Total assets | 29,000 | 26,000 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-interest revenues | 84 | 65 | ||
Revenue from contracts with customers | [1] | 84 | 63 | |
Interest income | 135 | 81 | ||
Interest expense | 182 | 148 | ||
Total revenues, net of interest expense | 37 | (2) | ||
Net income | (321) | (261) | ||
Total assets | $ (43,000) | $ (38,000) | ||
[1] | Includes discount revenue, certain other fees and commissions and other revenues from customers |