Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 04, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AMERICAN EXPRESS CO | ||
Trading Symbol | AXP | ||
Entity Central Index Key | 4,962 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 84.3 | ||
Entity Common Stock, Shares Outstanding | 843,368,671 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Non-interest revenues | ||||
Other | $ 1,360 | $ 1,457 | $ 1,678 | |
Total non-interest revenues | 32,675 | 30,427 | 29,659 | |
Interest income | ||||
Interest on loans | 9,941 | 8,148 | 7,214 | |
Interest and dividends on investment securities | 118 | 89 | 131 | |
Deposits with banks and other | 547 | 326 | 139 | |
Total interest income | 10,606 | 8,563 | 7,484 | |
Interest expense | ||||
Deposits | 1,287 | 779 | 598 | |
Long-term debt and other | 1,656 | 1,333 | 1,107 | |
Total interest expense | 2,943 | 2,112 | 1,705 | |
Net interest income | 7,663 | 6,451 | 5,779 | |
Total revenues net of interest expense | 40,338 | 36,878 | 35,438 | |
Provisions for losses | ||||
Charge Card | 937 | 795 | 696 | |
Card member loans | 2,266 | 1,868 | 1,235 | |
Other | 149 | 97 | 96 | |
Total provisions for losses | 3,352 | 2,760 | 2,027 | |
Total revenues net of interest expense after provisions for losses | 36,986 | 34,118 | 33,411 | |
Expenses | ||||
Marketing and promotion | 6,470 | 5,722 | 6,249 | |
Card Member rewards | 9,696 | 8,687 | 7,819 | |
Card Member services and other | 1,777 | 1,392 | 1,100 | |
Salaries and employee benefits | 5,250 | 5,258 | 5,259 | |
Other,net | 5,671 | 5,634 | 4,942 | |
Total Expenses | 28,864 | 26,693 | 25,369 | |
Pretax income | 8,122 | 7,425 | 8,042 | |
Income tax provision | 1,201 | 4,677 | 2,667 | |
Net income | $ 6,921 | $ 2,748 | $ 5,375 | |
Earnings per Common Share | ||||
Basic | [1] | $ 7.93 | $ 3 | $ 5.63 |
Diluted | [1] | $ 7.91 | $ 2.99 | $ 5.61 |
Average common shares outstanding for earnings per common share: | ||||
Basic | 856 | 883 | 933 | |
Diluted | 859 | 886 | 935 | |
Discount Revenue | ||||
Non-interest revenues | ||||
Revenues and Fees | $ 24,721 | $ 22,890 | $ 22,377 | |
Net Card Fees | ||||
Non-interest revenues | ||||
Revenues and Fees | 3,441 | 3,090 | 2,886 | |
Other Fees and Commissions | ||||
Non-interest revenues | ||||
Revenues and Fees | $ 3,153 | $ 2,990 | $ 2,718 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 54 million, $ 21 million and $ 43 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 80 millio n, $ 81 million and $ 80 million for the years ended December 31, 2018 , 2017 and 2016 , r e s p e c t i v e l y . |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Income [Abstract] | |||||||||||
Earnings allocated to participating share awards | $ 16 | $ 13 | $ 12 | $ 13 | $ 2 | $ 11 | $ 11 | $ 10 | $ 54 | $ 21 | $ 43 |
Dividends Preferred Stock | $ 19 | $ 20 | $ 20 | $ 21 | $ 20 | $ 21 | $ 19 | $ 21 | $ 80 | $ 81 | $ 80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 6,921 | $ 2,748 | $ 5,375 |
Other comprehensive income (loss) | |||
Net unrealized securities losses, net of tax | (8) | (7) | (51) |
Foreign currency translation adjustments, net of tax | (172) | 301 | (218) |
Net unrealized pension and other postretirement benefit, net of tax | 11 | 62 | 19 |
Other comprehensive gain (loss) | (169) | 356 | (250) |
Comprehensive income | $ 6,752 | $ 3,104 | $ 5,125 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | ||
Cash and cash due from banks | $ 3,253 | $ 5,148 |
Interest-bearing deposits in other banks | 24,026 | 27,709 |
Short-term investment securities | 166 | 70 |
Total cash and cash equivalents | 27,445 | 32,927 |
Accounts receivable | ||
Card Member receivables | 55,320 | 53,526 |
Other receivables | 2,907 | 3,209 |
Loans | ||
Card Member loans | 79,720 | 71,693 |
Other loans, net | 3,676 | 2,607 |
Investment securities | 4,647 | 3,159 |
Premises and equipment | 4,416 | 4,329 |
Other assets | 10,471 | 9,746 |
Total assets | 188,602 | 181,196 |
Liabilities | ||
Customer deposits | 69,960 | 64,452 |
Travelers Cheques and other prepaid products | 2,295 | 2,555 |
Accounts payable | 12,255 | 14,657 |
Short-term borrowings | 3,100 | 3,278 |
Long-term debt | 58,423 | 55,804 |
Other liabilities | 20,279 | 22,189 |
Total liabilities | 166,312 | 162,935 |
Shareholders' Equity | ||
Preferred shares issued | 0 | 0 |
Common shares | 170 | 172 |
Additional paid-in capital | 12,218 | 12,210 |
Retained earnings | 12,499 | 8,307 |
Accumulated other comprehensive income (loss) | ||
Net unrealized securities gains, net of tax | (8) | 0 |
Foreign currency translation adjustments, net of tax | (2,133) | (1,961) |
Net unrealized pension and other postretirement benefit losses, net of tax | (456) | (467) |
Total accumulated other comprehensive loss | (2,597) | (2,428) |
Total shareholders' equity | 22,290 | 18,261 |
Total liabilities and shareholders' equity | $ 188,602 | $ 181,196 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Card Member receivables, gross | $ 55,893,000 | $ 54,047,000 | |
Card Member loans | 81,854,000 | 73,399,000 | |
Other assets | 10,471,000 | 9,746,000 | |
Short-term borrowings | 3,100,000 | 3,278,000 | |
Long-term debt | 58,423,000 | 55,804,000 | |
Cash and cash equivalents | |||
Securities purchased under resale agreements | 64,000 | 48,000 | |
Accounts receivable | |||
Card Member receivables, reserves | 573,000 | 521,000 | $ 467,000 |
Other receivables, reserves | 25,000 | 31,000 | |
Loans | |||
Balance, January 1 | 2,134,000 | 1,706,000 | 1,223,000 |
Other loans, reserves | 124,000 | 80,000 | |
Premises and equipment, accumulated depreciation | 6,015,000 | 5,455,000 | |
Restricted cash included in Other assets per Consolidated Balance Sheets | 363,000 | 336,000 | 286,000 |
Accumulated other comprehensive income (loss) | |||
Net unrealized securities losses, Tax | (107,000) | 215,000 | $ (139,000) |
Foreign currency translation adjustments, tax | (300,000) | (363,000) | |
Net unrealized pension and other postretirement benefit losses, net of tax | (170,000) | (179,000) | |
Net Unrealized Securities Losses, Tax | $ 1,000 | $ (1,000) | |
Common shares, par value | $ 0.2 | $ 0.2 | |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 847,000,000 | 859,000,000 | 904,000,000 |
Common shares, outstanding | 847,000,000 | 859,000,000 | |
Preferred shares, authorized | 20,000,000 | 20,000,000 | |
Preferred shares, issued | 1,600 | 1,600 | 0 |
Preferred shares, outstanding | 1,600 | 1,600 | 0 |
Preferred shares, par value | $ 1.67 | $ 1.67 | |
Variable Interest Enterprise [Member] | |||
Card Member receivables, gross | $ 8,539,000 | $ 8,919,000 | |
Card Member loans | 33,194,000 | 25,695,000 | |
Long-term debt | 19,509,000 | 18,560,000 | |
Loans | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | $ 70,000 | $ 62,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||
Net income | $ 6,921 | $ 2,748 | $ 5,375 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Provisions for losses | 3,352 | 2,760 | 2,027 |
Depreciation and amortization | 1,293 | 1,321 | 1,095 |
Deferred taxes and other | 455 | 782 | (1,066) |
Stock-based compensation | 283 | 282 | 254 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other receivables | 248 | 475 | (332) |
Other assets | 743 | (77) | 206 |
Accounts payable and other liabilities | (4,121) | 5,506 | 1,180 |
Travelers Cheques and other prepaid products | (244) | (257) | (448) |
Net cash provided by operating activities | 8,930 | 13,540 | 8,291 |
Cash Flows from Investing Activities | |||
Sales of available-for-sale investment securities | 4 | 2 | 88 |
Maturities and redemptions of available-for-sale investment securities | 3,499 | 2,494 | 2,429 |
Sales of other investments | 0 | 0 | 10 |
Purchase of investments | (5,434) | (2,612) | (2,162) |
Net increase in Card Member receivables and loans, including held for sale | (15,854) | (16,853) | 3,220 |
Purchase of premises and equipment | (1,310) | (1,062) | (1,375) |
Acquisitions/dispositions, net of cash acquired | (520) | (211) | (487) |
Net cash (used in) provided by investing activities | (19,615) | (18,242) | 1,723 |
Cash Flows from Financing Activities | |||
Net increase (decrease) in customer deposits | 5,542 | 11,385 | (1,935) |
Net (decrease) increase in short-term borrowings | (148) | (2,300) | 888 |
Issuance of long-term debt | 21,524 | 32,764 | 8,824 |
Principal payments on long term debt | (18,895) | (24,082) | (9,848) |
Issuance of American Express common shares | 87 | 129 | 177 |
Repurchase of American Express common shares and other | (1,685) | (4,400) | (4,498) |
Dividends paid | (1,324) | (1,251) | (1,207) |
Net cash provided by (used in) financing activities | 5,101 | 12,245 | (7,599) |
Effect of foreign currency exchange rates on cash and cash equivalents | 129 | 226 | (160) |
Net increase in cash and cash equivalents | (5,455) | 7,769 | 2,255 |
Cash. cash equivalents and restricted cash at beginning of year | 33,263 | 25,494 | 23,239 |
Cash, cash equivalents and restricted cash at end of year | $ 27,808 | $ 33,263 | $ 25,494 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Cash Flows [Abstract] | |||
Sale of premises and equipment | $ 1 | $ 1 | $ 2 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows (Parentheticals 1) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Statements of Cash Flows [Abstract] | ||||
Cash and cash equivalents per Consolidated Balance Sheets | $ 27,445 | $ 32,927 | $ 25,208 | $ 23,239 |
Restricted cash included in Other assets per Consolidated Balance Sheets | 363 | 336 | 286 | |
Total cash, cash equivalents and restricted cash | $ 27,808 | $ 33,263 | $ 25,494 | $ 23,239 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Preferred shares | Common Shares | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Retained Earnings [Member]Series B Preferred Stock [Member] | Retained Earnings [Member]Series C Preferred Stock [Member] |
Beginning Balance at Dec. 31, 2015 | $ 20,673 | $ 0 | $ 194 | $ 13,348 | $ (2,534) | $ 9,665 | ||||
Net income | 5,375 | 5,375 | ||||||||
Other comprehensive (loss) income | (250) | (250) | 0 | |||||||
Repurchase of common shares | (4,421) | (14) | (924) | (3,483) | ||||||
Other changes, primarily employee plans | 308 | 1 | 309 | (2) | ||||||
Cash dividends declared preferred | $ (39) | $ (41) | $ (39) | $ (41) | ||||||
Cash dividends declared common, per share | (1,137) | (1,137) | ||||||||
Ending Balance at Dec. 31, 2016 | 20,523 | 0 | 181 | 12,733 | (2,784) | 10,393 | ||||
Cumulative Effect Of New Accounting Principle In Period Of Adoption | 55 | 55 | ||||||||
Net income | 2,748 | 2,748 | ||||||||
Other comprehensive (loss) income | 356 | 356 | 0 | |||||||
Repurchase of common shares | (4,314) | (10) | (742) | (3,562) | ||||||
Other changes, primarily employee plans | 212 | 1 | 219 | 0 | (8) | |||||
Cash dividends declared preferred | (39) | (42) | (39) | (42) | ||||||
Cash dividends declared common, per share | (1,183) | (1,183) | ||||||||
Ending Balance at Dec. 31, 2017 | 18,261 | 0 | 172 | 12,210 | (2,428) | 8,307 | ||||
Net income | 6,921 | 6,921 | ||||||||
Other comprehensive (loss) income | (169) | (169) | 0 | |||||||
Repurchase of common shares | (1,570) | (3) | (216) | (1,351) | ||||||
Other changes, primarily employee plans | 200 | 1 | 224 | (25) | ||||||
Cash dividends declared preferred | $ (39) | $ (41) | $ (39) | $ (41) | ||||||
Cash dividends declared common, per share | (1,273) | (1,273) | ||||||||
Ending Balance at Dec. 31, 2018 | $ 22,290 | $ 0 | $ 170 | $ 12,218 | $ (2,597) | $ 12,499 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash dividends declared | |||
Common stock, dividend per share | $ 1.48 | $ 1.34 | $ 1.22 |
Series B Preferred Stock [Member] | |||
Cash dividends declared | |||
Preferred stock, dividend per share | 52 | 52 | 52 |
Series C Preferred Stock [Member] | |||
Cash dividends declared | |||
Preferred stock, dividend per share | $ 49 | $ 49 | $ 49 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Basis of Presentation | NOTE 1 Summary of Significant Accounting Policies The Company Americ an Express Company is a globally integrated payments company that provides customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and service s are charge and credit card products and travel-related services offered to consumers and bu sinesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Bu siness Travel (the GBT JV). Our various products and services are sold globally to diverse customer groups, includ ing consumers, small businesses, mid-sized companies and large corporations. These products and services are sold through various channels, including mobile and online applications, direct mail, in-house sales teams, third-party vendors and direct response advertising. Effective for the second quarter of 2018, we realigned our reportable operating segments to reflect the organizational changes announced during the first quarter of 2018. Prior periods have been revised to conform to the new reportable opera ting segments, which are as follows: Global Consumer Services Group (GCSG), which primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel services and non-card financing products, and manages certain international joint ventures and our partnership agreements in China. Global Commercial Services (GCS), which primarily issues a wide range of proprietary corporate and small business cards and provides payment and expense management serv ices globally. In addition, GCS provides commercial financing products. Global Merchant and Network Services (GMNS), which operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel market ing programs and capabilities, services and data analytics, leveraging our g lobal integrated network. GMNS manages our partnership relationships wi th third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager , licen sing the American Express brand and extending the reach of the global network. GMNS also manages loyalty coalition businesses in cer tain countries around the world . Corporate functions and certain other businesses and operations are included in Corporate & Other. Principles of Consolidation The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. We consolidat e entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlli ng financial interest when we are able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs) , the determination of which is based on the amount and characteristics of the entity’s equity, we are considered to hold a controllin g financial interest when we are determined to be the primary beneficiary. A primary bene ficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could p otenti ally be significant to that VIE. Entities in which our voting interest in common equity does not provide it with control, but allows us to exert significant influence over operating and financial decisions, are accounted for under the equity method. We als o have investments in equity securities where our voting interest is below the level of significant influence, including investments that we make in non-public companies in the ordinary course of business . Such investments are initially recorded at cost a nd adjusted to fair value through earnings for observable price changes in orderly transactions for identical or similar transactions of the same company or if they are determined to be impaired . See Note 5 for the accounting policy for our marketable equi ty securities. Foreign Currency Monetary a ssets and liabili ties denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the e nd of the reporting period; non- monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction; revenues and expenses are translated at the average month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are inc luded in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency are reported net in Other expenses, in our Consolidated Statements of Income. Amounts Based on Estimates and Assumptions Accounting estimat es are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on l oans and receivables, Membership Rewards liability , goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. Income statement 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 Membe rs. The amount of fees charged for accepting our cards as payment for goods or services, or merchant discount, varies with, among other factors, the industry in which the merchant conducts business, the merc hant’s overall American Express-related transaction volume, the method of payment, the settlement terms with the merchant, the method of submission of transactions and, in certain instances, the geographic scope of the card acceptance agreement between the merchant and us (e.g., local or global) and the transaction amount. The merchant discount is generally deducted from the payment to the merchant and recorded as discount revenue at the time the Card Member transaction occurs. The card acceptance agreement s, which include 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 per iods, which 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 obligations under these agreements over the contract term, often on a daily basis, including through the processing of Card Member transactions and the availability of our payment network. In cases where the merchant acquirer is a third party (which i s 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 recorded 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. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary ba sed 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 a nd recognized on a straight-line basis over the twelve-month card membership period as Net card fees in the Consolidated Statements of Income. The unamortized net card fee balance is reported in Other liabilities on the Consolidated Balance Sheets (refer t o Note 10). 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 program 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 Conso lidated Balance Sheets. In addition, Other fees and commissions includes loyalty 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 19 for additional information. Contra-revenue P ayments made pursuant to contractual arrangements with our merchants, GNS partners, and other customers are classified as contra-revenue , except where we receive goods, serv ices or other benefits for which the fair value is determinable and measurable, in which case they are recorded as expense. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid, or written off. Interest and dividends on investment securities prima rily 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 other payments, so that a constant rate of return is r ecognized 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. Interest on deposits with banks and other is rec ognized 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 exp ense 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 r elates 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 realized impact of derivatives used to hedge interest r ate risk on our long-term debt. Marketing and Business Development As further described below under “Recently Adopted Accounting Standards,” effective January 1, 2018, in conjunction with the adoption of the new revenue recognition standard, the previousl y disclosed “Marketing and p romotion” line on the Consolidated Statements of Income was changed to “Marketing and b usiness d evelopment” to reflect the inclusion of certain reclassified costs from c ontra-discount revenue and Other expenses. Marketing and bu siness development provides a more comprehensive view of costs related to building and growing our business, including the reclassified costs. Marketing and business development expense includes costs incurred in the development and initial placement of a dvertising, 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 qualifying charges on eligible card accounts, corporate incentive payme nts 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 record a Card Member rewards liability that represents the estima ted cost of points earned that are expected to be redeemed. Pursuant to cobrand agreements, we make payments to our cobrand partners based primarily on the amount of Card Member spending and corresponding rewards earned on such spending and, under certain arrangements, on the number of accounts acquired and retained. The partner is then liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program. 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 an increase or decrease to the Card Member rewards expense in the Consolidated Statemen t of Income . Effective January 1, 2018, in conjunction with the adoption of the new revenue recognition standard, Card Member rewards also includes cash-back rewards, which were reclassified from contra discount revenue. Balance Sheet Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, and other highly liquid investments with original maturities of 90 days or less. Goodwill Goodwill represents the excess of acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. We allocate goodwill to our reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regularly reviewed by the operating segment manager. We evaluate goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of our reporting units below its carrying value. Prior to completing the assess ment of goodwill for impairment, we also perform a recoverability test of certain long-lived assets. We have the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of a repo rting unit is less than its carrying value. Alternatively, we can perform a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market consid erations, cost factors, overall financial performance of the reporting unit and other company and reporting unit - specific events. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we t hen perform the impairment evaluation using the quantitative a ssessment . Under the quantitative assessment , t he first step identifies whether there is a potential impairment by comparing the fair value of a reporting unit to the carrying amount, includin g goodwill. If the carrying amount of a reporting unit exceeds the fair value, then a test is performed to determine the implied fair value of goodwill. An impairment loss is recognized based on the amount that the carrying amount of goodwill exceeds the i mplied fair value. When measuring the fair value of our reporting units in the quantitative assessment , we use widely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multip les). When preparing discounted cash flow models under the income approach, we use internal forecasts to estimate future cash flows expected to be generated by the reporting units. To discount these cash flows, we use the expected cost of equity, determine d by using a capital asset pricing model. We believe the discount rates used appropriately reflect the risks and uncertainties in the financial markets generally and specifically in our internally - developed forecasts. When using market multiples under the market approach, we apply comparable publicly traded companies’ multiples (e.g., earnings or revenues) to our reporting units’ actual results. For the year s ended December 31, 2018 and 2017, we performed a qualitative assessment in connection with our annual goodwill impairment evaluation and determined that it was more likely than not that the fair values of our reporting units exceeded their carrying values. Premises and Equipment Premises and equipment, including leasehold impro vements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated usef ul lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at th e acquisition date. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and ranges from 5 to 10 years. We maintai n operating leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and includes adjustments for rent concessions, rent escalations and leasehold improvement allowances. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. Certain costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Premises and equipment. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. We review these assets for impairment using the same impairment methodology used for our intangible assets. Other Significant Accounting Policies The following table identifies our other significant accounting policies, along with the related Note and page number where the Note can be found. Significant Accounting Policy Note Number Note Title Page Accounts Receivable Note 3 Loans and Accounts Receivable Page 86 Loans Note 3 Loans and Accounts Receivable Page 86 Reserves for Losses Note 4 Reserves for Losses Page 92 Investment Securities Note 5 Investment Securities Page 94 Asset Securitizations Note 6 Asset Securitizations Page 96 Membership Rewards Note 10 Other Liabilities Page 103 Stock-based Compensation Note 11 Stock Plans Page 104 Retirement Plans Note 12 Retirement Plans Page 106 Legal Contingencies Note 13 Contingencies and Commitments Page 106 Derivative Financial Instruments and Hedging Activities Note 14 Derivatives and Hedging Activities Page 108 Fair Value Measurements Note 15 Fair Values Page 111 Income Taxes Note 21 Income Taxes Page 119 Regulatory Matters and Capital Adequacy Note 23 Regulatory Matters and Capital Adequacy Page 123 Reportable Operating Segments Note 25 Reportable Operating Segments and Geographic Operations Page 126 Classification of Various Items Certain reclassifications of prior period amounts have been made to conform to the current period presentation, including the reclassification of certain business development expenses from Other expenses to Marketing and business development, that were not directly attributable to the adoption of the new revenue recognition guidance. Recently Issued and adopted Accounting Standards Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance on leases. The accounting standard, effective January 1, 2019, requires virtually all leases to be recognized on the Consolidated Balance Sheets. Beginning with the quarter ending March 31, 2019, our financial s tatements will reflect the adoption of this standard using the modified retrospective method. We have elected the package of practical expedients and transition provisions allowing us to bring our existing operating leases onto the Consolidated Balance She e t without adjusting comparative periods. We have operating leases worldwide for facilities and equipment, which will be recorded as lease-related assets and liabilities upon adoption of the new guidance for those leases with terms greater than 12 months. Under the guidance, we have also elected to not separate lease and non-lease components in the recognition of the assets and liabilities, as well as the related lease expense. Lease-related assets, or right-of-use assets, will be recognized at the lease c ommencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, and initial direct costs, and offset by lease incentives received. Lease-related liabilities will be recognized at the present value of the remainin g contractual fixed lease payments, discounted using the Company’s incremental borrowing rate. Operating lease expense will continue to be recognized on a straight-line basis over the lease term, while variable lease payments will continue to be expensed a s incurred. The adoption of the standard will have the impact of increasing consolidated assets and l iabilities by approximately $700 million and will not have a material impact on our financial position, results of operations, cash flows or regulatory ris k-based capital. In conjunction with the adoption, we are upgrading our lease administration software and modifying our business processes and internal controls. In June 2016, the FASB issued new accounting guidance for the recognition of credit losses on financial instruments, effective January 1, 2020, with early adoption permitted on January 1, 2019. We do not intend to early adopt the new standard. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) mode l, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking 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 reduc tions 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 ret ained earnings as of the beginning of the reporting period of adoption. We continue to evaluate the impact the new guidance will have on our financial position, re sults of operations, cash flows, credit ratings and regulatory risk-based capital. We expect 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 li fe of the assets. However, the extent of the impact will depend on the characteristics of our loan portfolio, macroeconomic conditions and forecasted information at the date of adoption. We continue to be actively engaged in cross-functional implementatio n efforts and are in the process of developing and implementing CECL models that satisfy the requirements of the new standard, along with appropriate business processes and controls. In February 2018, as a result of the enactmen t of the Tax Cuts and Jobs A ct (the Tax Act) , the FASB issued new accounting guidance on the reclassification of certain tax effects from AOCI to retained earnings. The optional reclassification is effective January 1, 2019. We are evaluating the new guidance , along with any impacts on our financial position, results of operations and cash flows, none of whi ch 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 credit 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 below, 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 and statement credits, corporate incentive payments, as w ell 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 merchants 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 and years ended December 31, 2017 and 2016 were as follo ws: 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 financial position or cash flows . We had no material c ontract assets, contract liabilities or deferred contract costs recorded on the Consolidated Balance Sheet as of December 31, 2018 and 2017. Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In adopting the guidance, we implemented changes to our accounting policies, 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 and measurement of financial assets and financial liabilities, which was effective 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 financial assets and liabilities. This applies to investments we make in non-public companies in the ordinary course of business, which historically were recognized under the cost method of accounting. These investments will be prosp ectively 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, results of operations a nd 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 targeted improvem ents 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 optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. Effective January 1, 2018, we adopted the guidance, with no material imp act 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. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Acquisitions | NOTE 2 BUSINESS EVENTS LOANS AND RECEIVABLES portfolio dispositions During the fourth quarter of 2015, it was determined we would sell the Card Member loans and receivables related to our cobrand partnerships with JetBlue Airways Corporation (JetBlue) and Costco Wholesale Corporation (Costco) in the United States (the HFS portfolios). As a result, the HFS portfolios were presented as held for sale (HFS) on the Consolidated Balance Sheets w ithin Card Member loans and receivables HFS as of Decem ber 31, 2015. During the first half of 2016, we completed the sales of substantially all of these outstanding Card Member loans and receivables HFS and recognized gai ns, as an expense reduction in O the r expenses, of $127 million and $1.1 billion during the three months ended March 31, 2016 and June 30, 2016 , respectively. The impact of the sales , including the recognition of the proceeds received and the reclassification of the retained Car d Member lo ans and receivables, wa s reported within the investing section of the Consolidated Statements of Cash Flows as a net decrease in Card Member receivables an d loans, including HFS . From the point of classification as HFS through the sale completion dates, we continued to recognize disco unt revenue, interest income, other revenues and expenses related to the HFS portfolios in the respective line items on the Consolidated Statements of Income, with changes in the valuation of th e HFS portfolios recognized in O t her expenses. Loan portfolio acquisition During the first quarter of 2018, we acquired the portion of the Hilton Worldwide Holdings Inc. cobrand credit card loan portfolio that we did not previously own (the acquired Hilton portfolio). The acquired Hil ton portfolio had an outstanding principal and interest balance of approximately $1 billion at acquisition. None of the credit card loans acquired were considered purchased credit impaired at acquisition date. The cash outflows related to this acquisition are reported within the investing section of the Consolidated Statements of Cash Flows primarily as a net increase in Card Member receivables and loans. |
Accounts Receivable and Loans
Accounts Receivable and Loans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Loans and Accounts Receivable | NOTE 3 Loans and Accounts Receivable Our lending and charge p ayment card products result in the generation of Card Member loans and Card Member receivables, respectively. Card Member and Other Loans Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolving amounts due on lending card products, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect t o revolve a portion of the outstanding balance by entering into a revolving payment arrangement with us . These loans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members, and in accordance with applicable regulations and the respective product’s terms and conditions. Card Members holding revolving loans are typically required to make monthly payments based on pre-established amounts and t he amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued interest and fees. Our policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserve s for interest that we believe will not be collected. Card Member loans by segment and Other loans as of December 31, 2018 and 2017 consisted of: (Millions) 2018 2017 Global Consumer Services Group (a) $ 69,458 $ 62,319 Global Commercial Services 12,396 11,080 Card Member loans 81,854 73,399 Less: Reserve for losses 2,134 1,706 Card Member loans, net $ 79,720 $ 71,693 Other loans, net (b) $ 3,676 $ 2,607 Includes approximately $ 33.2 billion and $ 25.7 billion of gross Card Member loans available to settl e obligations of a consolidated VIE as of December 31, 2018 and 2017 , respectively. The balance as of December 31 , 2018 also includes loans related to the acquired Hilton portfolio (refer to Note 2). Other loans primarily represent consumer and commercial non-card financing products. Other loans are presented net of reserves for losses of $ 124 million and $ 80 million as of December 31 , 2018 and 2017 , respectively. Card Member and Other Receivables Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products. Each cha rge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit our maximum exposure . Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued fees. Card Member accounts receivable by seg ment and Other receivables as of December 31, 2018 and 2017 consisted of: (Millions) 2018 2017 Global Consumer Services Group (a) $ 21,455 $ 20,946 Global Commercial Services 34,438 33,101 Card Member receivables 55,893 54,047 Less: Reserve for losses 573 521 Card Member receivables, net $ 55,320 $ 53,526 Other receivables, net (b) $ 2,907 $ 3,209 Includes $ 8.5 billion and $ 8.9 billion of gross Card Member receivables available to settle obligati ons of a consolidated VIE as of both December 31, 2018 and 2017 , respectively . Other receivables primarily represent amounts related to (i ) GNS partners 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. Othe r receivables are presented net of reserves for losses of $ 25 million and $ 31 million as of December 31, 2018 and 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 December 31, 2018 and 2017 : 2018 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: Global Consumer Services Group $ 68,442 $ 290 $ 220 $ 506 $ 69,458 Global Commercial Services Global Small Business Services 12,195 51 32 73 12,351 Global Corporate Payments (a) (b) (b) (b) ― 45 Card Member Receivables: Global Consumer Services Group 21,207 80 50 118 21,455 Global Commercial Services Global Small Business Services $ 16,460 $ 101 $ 53 $ 114 $ 16,728 Global Corporate Payments (a) (b) (b) (b) $ 129 $ 17,710 2017 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: Global Consumer Services Group $ 61,491 $ 238 $ 190 $ 400 $ 62,319 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: Global Consumer Services Group 20,696 82 54 114 20,946 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 GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). Delinquency data for periods other than 90 + days past billing is not available due to system constraints. Therefore, such data has not been uti lized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. Credit Quality Indicators for Card Member Loans and Receivables The following tables present the key credit quality indicators as of or for the years ended December 31: 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: Global Consumer Services Group 2.1 % 2.5 % 1.5 % 1.8 % 2.2 % 1.3 % Global Small Business Services 1.7 % 2.0 % 1.3 % 1.6 % 1.9 % 1.2 % Card Member Receivables: Global Consumer Services Group 1.6 % 1.8 % 1.2 % 1.5 % 1.7 % 1.2 % Global Small Business Services 1.7 % 2.0 % 1.6 % 1.6 % 1.8 % 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 0.11 % 0.7 % 0.10 % 0.9 % 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 our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. Refer to Note 4 for additional indicators, including external environmental qualitative factors, management considers in its monthly evaluation process for reserves for losses. Impaired Card Member Loans and Receivables Impaired Card Member loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the Card Member agreement. We consider impaired loans and receivables to include: (i) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receivables modi fied as troubled debt restructurings (TDRs). In instances where the Card Member is experiencing financial difficulty , we may modify, through various programs, Card Member loans and receivables in order to minimize losses and improve collectability, while providing Card Members with temporary or permanent financial relief. We have classified Card Member loans and receivables in these modification programs as TDRs and continue to classify Card Member accounts that have exited a modification program as a TDR, wit h such accounts identified as “Out of Program TDRs.” Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is characterized as non-accrual in our TDR disclosures), (ii) placing the Card Member on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the Card Member exits the modification program. Upon entering the modification program, the Card Member’s ability to make future purchases is either cancelled, or in certain cases suspended until the Card Member successfully exits the modification program. In accordance with the modification agreement with the Card Member, loans may revert back to the original contractu al terms (including the contractual interest rate) when the Card Member exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or, (ii) when the Card Member defaults out of the modificati on program. We establish a reserve for Card Member interest charges and fees considered to be uncollectible. Reserves for Ca rd Member loans and receivables modified as TDRs are determined as the difference between the cash flows expected to be received fr om the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying value of the rela ted Card Member loan or receivables balance. We determine the original effective i nterest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are included in Provisions for losses in the Consolidated Statements of Income. The following tables provide additional information with respect to our impaired Card Member loans and receivables as of December 31, 2018, 2017 and 2016. Impaired Card Member loans and receivables outside the U.S. are not significant as of December 31, 2018, 2017 and 2016; therefore, such loans and receivables are not included in the following tables unless otherwise noted. As of December 31, 2018 Accounts Classified as a TDR (c) (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: Global Consumer Services Group (f) $ 344 $ 236 $ 313 $ 131 $ 1,024 $ 923 $ 80 Global Commercial Services 43 43 59 29 174 161 14 Card Member Receivables: Global Consumer Services Group ― ― 29 13 42 42 2 Global Commercial Services ― ― 61 25 86 86 5 Total $ 387 $ 279 $ 462 $ 198 $ 1,326 $ 1,212 $ 101 As of December 31, 2017 Accounts Classified as a TDR (c) (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: Global Consumer Services Group (f) $ 289 $ 168 $ 178 $ 131 $ 766 $ 694 $ 49 Global Commercial Services 38 31 31 27 127 118 8 Card Member Receivables: Global Consumer Services Group ― ― 15 9 24 24 1 Global Commercial Services ― ― 37 19 56 56 2 Total $ 327 $ 199 $ 261 $ 186 $ 973 $ 892 $ 60 As of December 31, 2016 Accounts Classified as a TDR (c) (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: Global Consumer Services Group (f) $ 230 $ 139 $ 165 $ 129 $ 663 $ 609 $ 51 Global Commercial Services 30 30 26 26 112 103 9 Card Member Receivables: Global Consumer Services Group ― ― 11 6 17 17 7 Global Commercial Services ― ― 28 10 38 38 21 Total $ 260 $ 169 $ 230 $ 171 $ 830 $ 767 $ 88 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 agencies for which we have ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR. Accounts classified as a TDR include $17 million, $15 million and $20 million that are over 90 days past due and accruing interest and $6 million, $5 million and $11 million that are non-accruals as of December 31, 201 8 , 201 7 and 201 6 , respectively. In Program TDRs include Card Mem ber accounts that are currently enrolled in a modification program. Out of Program T DRs include $148 million, $141 million and $132 million of Card Member accounts that have successfully complete d a modification program and $50 million, $45 million and $3 9 million of Card Member accounts that were not in compliance with the terms of the modification programs as of December 31, 2018, 2017 and 2016, respectively. GCSG includes balances outside the U.S. of $69 million, $56 million and $52 million that are over 90 da ys and accruing interest and $68 million, $55 million and $51 million in unpaid principal as of December 31, 2018, 2017 and 2016 , respectively. The following table provides information with respect to our average balances and in teres t income recognized from i mpaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: 2018 (Millions) Average Balance Interest Income Recognized Card Member Loans: Global Consumer Services Group $ 878 $ 109 Global Commercial Services 150 21 Card Member Receivables: Global Consumer Services Group 33 ― Global Commercial Services 73 ― Total $ 1,134 130 Interest Income 2017 (Millions) Average Balance Recognized Card Member Loans: Global Consumer Services Group $ 699 $ 85 Global Commercial Services 120 17 Card Member Receivables: Global Consumer Services Group 20 ― Global Commercial Services 45 ― Total $ 884 $ 102 Interest Income 2016 (Millions) Average Balance Recognized Card Member Loans: Global Consumer Services Group $ 612 $ 68 Global Commercial Services 103 13 Card Member Receivables: Global Consumer Services Group 14 ― Global Commercial Services 28 ― Total $ 757 $ 81 Card Member Loans and Receivables Modified as TDRs The following table provides additional information with respect to Card Member loans and receivables m odified as TDRs for the years ended December 31 : 2018 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 51 $ 377 12 (b) Card Member Receivables 6 110 (c) 28 Total 57 $ 487 2017 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 33 $ 224 10 (b) Card Member Receivables 6 83 (c) 28 Total 39 $ 307 2016 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 31 $ 220 9 (b) Card Member Receivables 9 123 (c) 18 Total 40 $ 343 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 following table provides information with respect to Ca rd Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification for the years ended December 31, 2018 , 2017 and 2016 . A Card Member is considered in default of a modification program af ter one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is facto red into the reserves for Card Member loans and receivables. Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2018 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 46 Card Member Receivables 4 11 Total 12 $ 57 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2017 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 6 $ 39 Card Member Receivables 3 7 Total 9 $ 46 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2016 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 7 $ 41 Card Member Receivables 3 4 Total 10 $ 45 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves for Losses
Reserves for Losses | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Reserve for Losses | NOTE 4 Reserves for Losses Reserves for losses relating to Card Member loans and receivables represent management’s best estimate of the probable inherent losses in our outstanding portfolio of loans and receivables, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments. Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantit ative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitative reserves for certain external and internal qualitative factors, which may increase or decrease the reserves for losses on Card Member loans and receivables. These external factors include employment, spend, sentiment, housing and c redit, and changes in the legal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member loans or receivables, and net write-off coverage ratios. Card Member loans and re ceivables balances are written off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification . Changes in Card Member Loans Reserve for Losses The following table presents changes in the Card Member loans reserve for losses for the years ended December 31: (Millions) 2018 2017 2016 Balance, January 1 $ 1,706 $ 1,223 $ 1,028 Provisions (a) 2,266 1,868 1,235 Net write-offs (b) Principal (1,539) (1,181) (930) Interest and fees (304) (227) (175) Other (c) 5 23 65 Balance, December 31 $ 2,134 $ 1,706 $ 1,223 Provisions for principal, interest and fee reserve components. P rincipal write-offs are presented less recoveries of $ 444 million, $ 409 million and $ 379 million for the years ended December 31, 2018, 2017 and 2016, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(33) million, $ (30) million and $ (34) million, for the years ended December 31, 2018 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ (11) million, $ 8 million and $ (10) million , and other adjustments of $ 16 million, $ 15 million and $ 8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The year ended December 31, 2016 include d reserves of $67 million associated with $265 million of retained Card Member loans reclassified from HFS to held for i nvestment as a result of retaining certain loans in connection with the respective sales of JetBlue and Costco cobrand card portfolios. Card Member Loans Evaluated Individually and Collectively for Impairment The following table presents Card Member loan s evaluated individually and collectively for impairment and related reserves as of December 31: (Millions) 2018 2017 2016 Card Member loans evaluated individually for impairment (a) $ 532 $ 367 $ 346 Related reserves (a) $ 94 $ 57 $ 60 Card Member loans evaluated collectively for impairment (b) $ 81,322 $ 73,032 $ 64,919 Related reserves (b) $ 2,040 $ 1,649 $ 1,163 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. Changes in Card Member Receivables Reserve for Losses The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31: (Millions) 2018 2017 2016 Balance, January 1 $ 521 $ 467 $ 462 Provisions (a) 937 795 696 Net write-offs (b) (859) (736) (674) Other (c) (26) (5) (17) Balance, December 31 $ 573 $ 521 $ 467 Provisions for principal and fee reserve components. Net write-offs are presented less recoveries of $ 367 million, $ 366 million and $ 394 million for the years ended December 31, 2018, 2017 and 2016, respectively. Amounts include net recoveries ( write-offs ) from TDRs of nil , $ 2 million and $ (16) million, for the years ended December 31, 2018 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ (6) million, $ 12 million and $ (12) million , and other adjustments of $ (20) million, $ (17) million and $ (5) million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Card Member Receivables Evaluated Individually and Collectively for Impairment The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of December 31: (Millions) 2018 2017 2016 Card Member receivables evaluated individually for impairment (a) $ 128 $ 80 $ 55 Related reserves (a) $ 7 $ 3 $ 28 Card Member receivables evaluated collectively for impairment $ 55,765 $ 53,967 $ 47,253 Related reserves (b) $ 566 $ 518 $ 439 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Investment Securities | NOTE 5 Investment Securities Investment securities principally include available-for-sale debt securities carrie d at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. Investment sec urities also include equity securities carried at fair value on the Consolidated Balance Sheets. Effective January 1, 2018, the unrealized gains and losses on equity securities are recorded in the Consolidated Statements of Income; prior to January 1, 2018 , the unrealized gains and losses on equity securities were recorded in AOCI, net of income taxes. Refer to Note 15 for a description of our methodology for determining the fair value of investment securities. The following is a summary of investment secu rities as of December 31: 2018 2017 2016 Description of Securities (Millions) Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale debt securities: State and municipal obligations $ 594 $ 4 $ (2) $ 596 $ 1,369 $ 11 $ (3) $ 1,377 $ 2,019 $ 28 $ (11) $ 2,036 U.S. Government agency obligations 10 ― ― 10 11 ― ― 11 12 ― ― 12 U.S. Government treasury obligations 3,452 5 (17) 3,440 1,051 3 (9) 1,045 465 3 (8) 460 Corporate debt securities 28 ― ― 28 28 ― ― 28 19 ― ― 19 Mortgage-backed securities (a) 50 1 ― 51 67 2 ― 69 92 3 ― 95 Foreign government bonds and obligations 474 ― ― 474 581 ― ― 581 486 1 (1) 486 Equity securities (b) 51 ― (3) 48 51 ― (3) 48 51 ― (2) 49 Total $ 4,659 $ 10 $ (22) $ 4,647 $ 3,158 $ 16 $ (15) $ 3,159 $ 3,144 $ 35 $ (22) $ 3,157 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 investment securities with gross unrealized losses and the length of time that individual securities have been in a n unrealized loss position as of December 31: 2018 2017 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses State and municipal obligations $ ― $ ― $ 82 $ (1) $ 157 $ (3) $ ― $ ― U.S. Government treasury obligations 224 (2) 791 (15) 650 (3) 175 (6) Equity securities (a) (a) (a) (a) ― ― 36 (2) Total $ 224 $ (2) $ 873 $ (16) $ 807 $ (6) $ 211 $ (8) Effective January 1, 2018, the unrealized gains and losses on 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 December 31: Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses 2018: 90%–100% 2 $ 224 $ (2) 29 $ 873 $ (16) 31 $ 1,097 $ (18) Total as of December 31, 2018 2 $ 224 $ (2) 29 $ 873 $ (16) 31 $ 1,097 $ (18) 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 losses for available-for-sale debt securities are attributed to wider credit spreads for speci fic issuers, adverse changes in benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were purchase d. Overall, for the available-for-sale debt securities in gross unrealized loss positions, (i) we do no t intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losse s, and (iii) we expect that the contractual principal and interest wil l be received on the secu rities. As a result, we recognized no other-than-temporary impairment during the periods presented. Weighted averag e yields and contractual maturities for investment securities with stated maturities as of December 31, 2018 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ 13 $ 47 $ 66 $ 470 $ 596 U.S. Government agency obligations ― ― ― 10 10 U.S. Government treasury obligations 1,773 1,534 131 2 3,440 Corporate debt securities 2 26 ― ― 28 Mortgage-backed securities (a) ― ― ― 51 51 Foreign government bonds and obligations 474 ― ― ― 474 Total Estimated Fair Value $ 2,262 $ 1,607 $ 197 $ 533 $ 4,599 Total Cost $ 2,261 $ 1,617 $ 199 $ 531 $ 4,608 Weighted average yields (b) 2.81 % 2.15 % 3.49 % 3.53 % 2.69 % The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent. |
Asset Securitizations
Asset Securitizations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Asset Securitizations | NOTE 6 Asset Securitizations We periodically securitize Card Member loans and receivables arising from our card businesses 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 Trusts then issue debt securities collateralized by the transferred assets to third-party investors. The Trusts are considered VIEs as the y have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. Refer to Note 1 for further details on the principles of consolidation. We perfo rm the servicing and key decision 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 receivables . In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of December 31, 2018 , our ownership of variable interests was $15.5 billion and $ 7 billion for the Lending Trust and the Charge Trust , respectively . Thes e 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 siderati ons, we are the primary beneficiary of the Tru sts and therefore consolidate the Trusts. The debt securities issued by the Trusts are non-recourse to us . The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, resp ectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 3). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 9). The following table provides information on the restricted cash held by the Trusts as of December 31, 2018 and 2017 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2018 2017 Lending Trust $ 67 $ 55 Charge Trust 3 7 Total $ 70 $ 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 funds, or, in a worst-case scenario, early amortization of debt securities. During the year ended December 31, 201 8 , no such triggering events occurred. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Other Assets | NOTE 7 Other Assets The following is a summary of Other assets as of December 31: (Millions) 2018 2017 Goodwill $ 3,072 $ 3,009 Deferred tax assets, net (a) 1,480 1,637 Prepaid expenses (b) 1,458 684 Tax credit investments 1,043 1,023 Derivative assets (a) 396 124 Restricted cash (c) 363 336 Other intangible assets, at amortized cost (b) 275 899 Other 2,384 2,034 Total $ 10,471 $ 9,746 Refer to Notes 14 and 21 for a disc ussion of derivative assets and deferred tax assets, net. For 2018 and 2017 , $174 million and $98 million, respectively, of foreign deferred tax liabilities is reflected in Other liabilities. Derivative assets reflect the impact of master netting agreements and cash collateral . As of September 30, 2018, $796 million of net assets previously included within Other intangible assets were reclassified to Prepaid expenses. Includes restricted cash available to sett le obligations related to certain Card Member credit balances and customer deposits, as well as coupon and maturity obligations of consolidated VIEs. Goodwill The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows: (Millions) GCSG GCS GMNS Total Balance as of December 31, 2016 $ 590 $ 1,711 $ 626 $ 2,927 Acquisitions 19 ― ― 19 Dispositions ― ― ― ― Other (a) 28 13 22 63 Balance as of December 31, 2017 $ 637 $ 1,724 $ 648 $ 3,009 Acquisitions 90 ― ― 90 Dispositions ― ― ― ― Other (a) (20) (6) (1) (27) Balance as of December 31, 2018 $ 707 $ 1,718 $ 647 $ 3,072 Primarily includes foreign currency translation. Accumul ated impairment losses were $221 million and $220 million as of December 31, 201 8 and 201 7, respectively . Other Intangible Assets Intangible assets are amortized on a straight-line basis over t heir estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. The gross carrying amount f or other intangible assets as of Dec ember 31, 2018 and 2017 was $702 million and $2,105 million , respectively , with accumulated amortization of $427 million and $1,206 million , respectively. As of September 30, 2018, certain assets previously classified within Other intangible assets were rec lassified to Prepaid expenses. Amortization expense for the years ended December 31, 2018, 2017 and 2016 was $212 million, $207 million and $194 million, re spectively. TAX CREDIT INVESTMENTS We account for our tax credit investments, including Qualified Affordable Housing (QAH) investments, using th e equity method of accounting. As of December 31, 2018 and 2017, we had $1,043 million and $1,023 million in tax credit investments , respectively , included in Other assets on the Consolidated Balance Sheets, of which $1,006 million and $1,018 million, respectively, s pecifically related to QAH investments. Included in QAH investments as of December 31 , 2018 and 2017, we had $936 million and $933 million, respectively, specifically related to investments in unconsolidated VIEs for which we do not have a controlling financial interest. As o f December 31, 2018, we had committed to provid e funding related to certain of these QAH investments, which is expected to be paid between 2019 and 2033, resulting in a $237 million unfunded commitment reported in Other liabilities, of which $ 228 million specifically related to unconsolidated VIEs. In addition, we had contractual off-balance sheet obligations, which were not deemed probable of being drawn, to provide additional funding up to $59 million for these QAH investments as of December 31, 2018, fully related to unconsolidated VIEs. During the years ended Decembe r 31, 2018 and 2017, we recognized equ ity method losses related to our QAH investments of $126 million and $112 million, respectively, which were recognized in Other , net expenses; and associated tax credits of $97 million and $74 millio n, respectively, recognized in Income tax provision. |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Customer Deposits | NOTE 8 Customer Deposits As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2018 2017 U.S.: Interest-bearing $ 69,144 $ 63,666 Non-interest-bearing (includes Card Member credit balances of: 2018, $376 million; 2017, $358 million) 412 395 Non-U.S.: Interest-bearing 28 34 Non-interest-bearing (includes Card Member credit balances of: 2018, $367 million; 2017, $344 million) 376 357 Total customer deposits $ 69,960 $ 64,452 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2018 2017 U.S. retail deposits: Savings accounts ― Direct $ 39,491 $ 31,915 Certificates of deposit: (a) Direct 817 290 Third-party (brokered) 12,667 16,684 Sweep accounts ―Third-party (brokered) 16,169 14,777 Other deposits: U.S. non-interest bearing deposits 36 37 Non-U.S. deposits 37 47 Card Member credit balances ― U.S. and non-U.S. 743 702 Total customer deposits $ 69,960 $ 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 47 months and 2.38 percent, respectively, as of December 31, 2018 . The scheduled maturities of certificates of deposit as of December 31, 2018 were as follows: (Millions) U.S. Non-U.S. Total 2019 $ 4,730 $ 18 $ 4,748 2020 4,290 ― 4,290 2021 1,869 ― 1,869 2022 2,278 ― 2,278 2023 317 ― 317 After 5 years ― ― ― Total $ 13,484 $ 18 $ 13,502 As of December 31, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2018 2017 U.S. $ 276 $ 114 Non-U.S. 9 11 Total $ 285 $ 125 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Debt Disclosure [Text Block] | NOTE 9 Debt Short-Term Borrowings Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2018 2017 (Millions, except percentages) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Commercial paper (b) $ 752 2.71 % $ 1,168 1.54 % Other short-term borrowings (c) 2,348 1.94 2,110 2.34 Total $ 3,100 2.13 % $ 3,278 2.05 % For floating-rate issuances, the stated interest rates are we ighted based on the outstanding principal balances and interest rates in effect as of December 31, 2018 and 2017 . Average commercial paper outstanding was $ 228 million and $ 1,076 million in 2018 and 2017 , respectively. Primarily includes book overdrafts with banks due to timing differences arising in the ordinary course of business. We maintained a three -year committed, revolving, secured borrowing facility that gives us the right to sell up to $ 2.0 billion face amount of eligible certificates issued from the Lending Trust at any time through September 15 , 20 20. The facility was undrawn a s of both December 31, 2018 and 2017 . We paid $ 7.8 million and $ 9.2 million in fees to maintain the secured borrowing facility in 2018 and 2017 , respectively. The committed facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the fa cility, nor is it dependent o n our credit rating. Long-term Debt Our long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2018 2017 (Millions, except percentages) Original Contractual Maturity Dates Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) American Express Company (Parent Company only) Fixed Rate Senior Notes 2019 - 2042 $ 14,043 3.48 % 3.64 % $ 10,377 3.85 % 3.17 % Floating Rate Senior Notes 2020 - 2023 3,600 3.17 1,750 1.93 ― Subordinated Notes 2024 598 3.63 3.66 598 3.63 2.66 American Express Credit Corporation Fixed Rate Senior Notes 2019 - 2027 16,677 2.28 3.06 19,652 2.24 2.27 Floating Rate Senior Notes 2019 - 2022 3,800 3.31 ― 4,550 2.09 ― American Express National Bank (d) Floating Rate Senior Notes ― ― ― 125 1.89 ― American Express Lending Trust Fixed Rate Senior Notes 2019 - 2023 12,474 2.28 ― 8,099 1.90 ― Floating Rate Senior Notes 2019 - 2023 5,125 2.80 ― 5,800 2.03 ― Fixed Rate Subordinated Notes 2020 - 2022 240 2.37 ― 206 2.21 ― Floating Rate Subordinated Notes 2019 - 2023 167 2.96 ― 192 2.05 ― American Express Charge Trust II Floating Rate Senior Notes 2020 1,535 2.89 ― 4,200 1.79 ― Floating Rate Subordinated Notes ― ― ― 87 2.11 ― Other Capitalized Leases 2021 - 2033 19 5.54 ― 23 5.59 ― Floating Rate Borrowings 2019 - 2021 262 0.42 ― % 256 0.42 ― % Unamortized Underwriting Fees (117) (111) Total Long-Term Debt $ 58,423 2.77 % $ 55,804 2.44 % The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. R efer to Note 14 for more details on our treatment of fair value hedges. For floating-rate issuances, the stated interest rate on debt is weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2018 and 2017 . I nterest rates with swaps are only presented when swaps are in pla ce to hedge the underlying debt. The interest rates with swaps are weighted based on the outstanding principal balances a nd the interest rates on the floating leg of the swaps in effect as of December 31, 2018 and 2017. 2017 balances are those of American Express Centurion Bank prior to the merger of two former bank entities into a new single bank entity effective April 1, 2 018. As of December 31, 2017, American Express Centurion Bank was the only legacy entity of American Express National Bank (AENB) to have debt securities outstanding . Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2018 were as follows: (Millions) 2019 2020 2021 2022 2023 Thereafter Total American Express Company (Parent Company only) $ 641 $ 2,000 $ 4,250 $ 3,525 $ 4,350 $ 4,273 $ 19,039 American Express Credit Corporation 7,150 6,600 2,890 2,050 ― 2,000 20,690 American Express Lending Trust 3,488 6,924 2,909 2,001 2,685 ― 18,007 American Express Charge Trust II ― 1,535 ― ― ― ― 1,535 Other 36 90 144 ― ― 11 281 $ 11,315 $ 17,149 $ 10,193 $ 7,576 $ 7,035 $ 6,284 $ 59,552 Unamortized Underwriting Fees (117) Unamortized Discount and Premium (771) Impacts due to Fair Value Hedge Accounting (241) Total Long-Term Debt $ 58,423 We maintained a bank line of credit of $ 3.5 billion as of De cember 31, 2018 and 2017 , all of which was undrawn as of the respective dates. These undrawn amounts support contingent funding needs. The availability of the credit line is subject to our compliance with certain financial covenants, principally the maintenance by American Express Credit Corporation (Credco) of a 1.25 ratio of combined earnings and fixed charges, to fixed charges. As of December 31, 2018 and 2017 , we were not in violation of any of our debt covenants. Additionally, we maintained a three -year committed, revolving, secured borrowing facility that gives us the right to sell up to $ 3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2020 . A s of December 31, 2018 and 2017 , $ 1.5 billion and $3.0 billion, respectively, were drawn on this facility. We paid $ 14.2 million and $ 16.3 million in fees to maintain these lines in 2018 and 2017 , respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor a re they dependent on our credit rating. We paid total interest, primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits, of $ 2.7 billion, $ 2.0 billion and $ 1.7 billion in 2018 , 2017 and 2016 , respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Other Liabilities Disclosure [Text Block] | NOTE 10 Other Liabilities The following is a summary of Other liabilities as of December 31: (Millions) 2018 2017 Membership Rewards liability $ 8,414 $ 7,751 Employee-related liabilities (a) 2,164 2,277 Deferred card and other fees, net 1,759 1,554 Repatriation tax liability (b) 1,689 1,703 Card Member rebate and reward accruals (c) 1,596 1,564 Book overdraft balances 1,028 2,837 Other (d) 3,629 4,503 Total $ 20,279 $ 22,189 Employee-related liabilities include employee benefit plan obligations and incentive compensation. Refer to Note 21 for additional information. Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. Other includes accruals for general operating expenses, client incentives, merchant rebates, payments to third-party ca rd-issuing partners, marketing and business development , restructuring and reengineering reserves, QAH unfunded commitments and derivati ves. Membership Rewards The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad range of rewards including travel, shopping, gift cards, and covering eligible charges . We record a balance sheet liability that represents management’s best estimate of the cost of points earned that are expected to be redeemed in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are key assumptions used to estimate the Membership Re wards liability. We use statistical and actuarial models to estimate the URR based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The expense for Membership Rewards points is included in Card Member rewards expense. We periodically evaluate our liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner contract changes and other factors. Deferred Card and Other Fees, Net The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, was as follows: (Millions) 2018 2017 Deferred card and other fees (a) $ 2,208 $ 1,996 Deferred direct acquisition costs (282) (280) Reserves for membership cancellations (167) (162) Deferred card and other fees, net $ 1,759 $ 1,554 Includes deferred fees for Membership Rewards program participants. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 11 Stock Plans Stock Option and Award Programs Under our 2016 Incentive Compensation Plan and previously under our 2007 Incentive Compensation Plan, awards may be granted to employees and other key individuals who perform services for us and our participating subsidiaries. These awards may be in the form of stock options, restricted stock awards or units (RSAs /RSUs ), portfolio grants (PGs) or other incentives, and similar awards designed to meet the requirements of non-U.S. jurisdictions. For our Incentive Compensation Plans, there were a total of 12 million, 14 million and 17 million common shares unissued and available for grant as of December 31, 2018 , 2017 , and 2016 , respectively, as authorized by ou r Board of Directors and shareholders. A summary of stock option and RSA /RSU activity as of December 31, 2018 , and changes during the year , is presented below: Stock Options RSAs/RSUs (Shares in thousands) Shares Weighted-Average Exercise Price Shares Weighted- Average Grant Price Outstanding as of December 31, 2017 7,262 $ 58.92 7,215 $ 70.29 Granted 282 98.47 2,221 98.20 Exercised/vested (1,844) 46.95 (2,407) 77.41 Forfeited (216) 65.36 (463) 78.80 Expired ― ― ― ― Outstanding as of December 31, 2018 5,484 64.73 6,566 $ 76.52 Options vested and expected to vest as of December 31, 2018 5,473 64.73 Options exercisable as of December 31, 2018 3,230 $ 57.04 We recognize the cost of employee stock awards granted in exchange for employee services based on the grant-date fair value of the award, net of expected forfeitures. Those costs are recognized ratably over the vesting period. Stock Options Each stock option has an exercise price equal to the market price of our common stock on the date of grant. Stock options generally vest 100 percent on the third anniversary of the grant date and have a contractual term of 10 years from the date of grant. The weighte d-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock exceeds the exercise price of the option) of the stock options outstanding, exercisable, vested, and expected to ve st as of December 31, 2018 , we re as follows: Outstanding Exercisable Vested and Expected to Vest Weighted-average remaining contractual life (in years) 5.6 4.0 5.6 Aggregate intrinsic value (millions) $ 169 $ 124 $ 168 The intrinsic value of options exercised during 2018 , 2017 and 2016 was $ 104 million, $ 197 million and $ 51 million, respectively, (based upon the fair value of our stock price at the date of exercise). Cash received from the exercise of stock options in 2018 , 2017 and 2016 was $ 87 million, $ 130 million and $ 175 million, respectively. Effective January 1, 2017, we adopted new accountin g guidance for employee share-based payments and accordingly, income tax benefits related to stock option exercises were recognized in our Consolidated Statements of Income in the amount of $ 18 million and $ 59 million for the years ended Dec ember 31, 2018 and 2017, respectively. Previously, such benefits were recorded in A dditional paid-in capital. The tax benefit realized from income tax impacts of stock option exercises, which was recorded in A dditional paid-in capital, in 2016 was $ 4 million. The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2018 , 2017 and 2016 : 2018 2017 2016 Dividend yield 1.4 % 1.8 % 1.9 % Expected volatility (a) 22 % 24 % 25 % Risk-free interest rate 2.7 % 2.3 % 1.5 % Expected life of stock option ( in years ) (b) 7.1 6.9 6.3 Weighted-average fair value per option $ 23.17 $ 18.18 $ 13.67 The expected volatility is based on both weighted historical and implied volatilities of our common stock price. The expected life of stock options was determined using both historical data and expectations of option exercise behavior. On October 31, 2017, certain senior executives were awarded stock options with a term of seven years, and include a three-year service condition, as well as performance and market conditions. Therefore, the fair values of these options were estimated at the g rant date using a Monte Carlo Valuation model with the following assumptions: October 31, 2017 Dividend yield 1.58 % Expected volatility (a) 21.41 % Risk-free interest rate 2.26 % Expected life of stock option ( in years ) 7 Fair value per option $ 19.18 The expected volatility is based on both weighted historical and implied volatilities of our common stock price. Restricted Stock Awards and units RSAs/RSUs are valued based on the stock price on the date of grant and contain either a) service conditions or b) both service and performance conditions. RSAs/RSUs containing only service conditions generally vest 25 percent per year beginning with the fi rst anniversary of the grant date. RSAs/RSUs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics. All RSA/ RSU holders receive non-forfeitable dividends or dividend equivalents. The total fair value of shares vested during 2018 , 2017 and 2016 , was $ 239 million, $ 180 million and $ 171 million, respectively (based upon our stock pr ice at the vesting date). The weighted-average grant date fair value of RSAs/RSUs granted in 2018 , 2017 and 2016 was $ 98.20 , $ 77.80 and $ 55.55 , respectively. Liability-based Awards Certain employees are awarded PGs and other incent ive awards that can be settled with cash or equity shares at our discretion, and final Compensation and Benefits Committee payout approval. These awards earn value based on performance, market and/or service conditions, and vest over periods of one to thre e years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. Cash paid upon vesting of these awards in 2018 , 2017 and 2016 was $ 56 million, $ 48 million and $ 41 million, respectively. Summary of Stock Plan Expense The components of our total stock-based compensation expense (net of forfeitures) for the years ended December 31 are as follows: (Millions) 2018 2017 2016 Restricted stock awards (a) $ 181 $ 170 $ 178 Stock options (a) 19 21 14 Liability-based awards 88 92 60 Total stock-based compensation expense (b) $ 288 $ 283 $ 252 As of December 31, 2018 , the total unrecognized compensation cost related to unvested RSAs /RSUs and options of $ 179 million and $ 12 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 2.1 years and 1.6 years, respectively . The total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation arrangements for the years ended December 31, 2018 , 2017 and 2016 was $ 69 million, $ 102 million and $ 89 million, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Retirement Plans | NOTE 12 Retirement Plans Defined Contribution Retirement Plans We sponsor defined contribution retirement plans, the principal plan being the Retirement Savings Plan (RSP), a 401(k) savings plan with a profit-sharing component. The RSP is a tax-qualified retirement plan subject to the Employee Retirement Income Security Act of 1974 and covers most employees in the United States. The total expense for all defined contribution retirement plans globally was $ 272 million, $ 349 million and $ 234 million in 2018 , 2017 and 2016 , respectively. De fined Benefit Pension and other postretirement benefit Plans Our primary defined benefit pension plans that cover certain employees in the United States and United Kingdom are closed to new entrants and existing participants do not accr ue any additional benefits. Most employees outside the United States and United Kingdom are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. We comply with minimum funding requirements in all countries. We sponsor unfunded other postretirement benefit plans that provide health care and life insurance to certain retired U.S. employees. For these plans, t he total net benefit w as $ 0.4 million in 2018 , and the total net expense was $ 25 million and $ 24 million in 2017 and 2016 , respectively. We re cognize the funded status of our defined benefit pension plans and other postretirement bene fit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the Consolidated Balance Sheets. As of December 31, 2018 and 2017 , the un funded status related to the defined benefit pension pla ns and other postretirement benefit plans was $ 563 million and $ 626 million, respectively, and is recorded in Other liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Commitments and Contingencies | NOTE 13 Contingencies and commitments 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 I, Item 3. “Legal Proceedings . ” In addition to the m atters disclosed under “Legal Proceedings,” we are being challenged in a number of countries regarding our application of value-added taxes (VAT) to certain of our international transactions, which are in various stages of audit, or are being con tested 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 authorities may determine that we owe additional VAT. In certain jurisdictions 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 proceedin gs 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 matters 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 damages claimed against us are state d, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, while other matters have progressed sufficiently such that we are able to estimate an amount of loss or a range of possible loss. We have accrued for certain of our outstanding legal proceedings. A n accrual is recorded when it i s both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual . We evaluate , on a quarterly basis, developments in legal proceedings that could ca use an increase or decrease in the amount of the accrual 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 re asonably possible in future periods, whether in excess of a recorded accrual for legal or tax contingencies or where there is no such accrual , and for which we are able to estimate a range of possible loss, the current estimated range is zero to $ 400 million in excess of any accrual s related to those matters. This range represents management’s estimate based on currently available information and does not represent our maximum loss exposure; actual results may vary significantly. As such legal proceedi ngs evolve, we may need to increase our range of possible loss or recorded accruals . In addition, it is possible that significantly increased merchant steering or other actions impairing the Card Member experience as a result of an adverse resolution in one or any combination of the me rchant cases disclosed in Part I , Item 3 . “Legal Proceedings” could have a material adverse effect on our business. Based on our current knowledge, and taking into consideration our litigation-related liabilities, we believe we are not 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 proce edings, including the possible resolution of merchant claims, could have a material impact on our results of operations . COMMITMENTS We lease certain facilities and equipment under non-cancelable and cancelable agreements, for which total rental expense was $ 142 million, $ 151 million and $ 169 million in 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , the minimum aggregate rental commitment under all non-cancelable operating leases (net of subleases of $ 14 million) was as follows: (Millions) 2019 $ 140 2020 118 2021 95 2022 78 2023 65 Thereafter 832 Total $ 1,328 As of December 31, 2018 , our future minimum lease payments under capital leases or other similar arrangements is approximately $ 4 million in each of 201 9 and 202 0 , $ 1 million in each of 202 1 and 2022, $ 2 million in 2023 and $ 8 million in aggregate thereafter. As of December 31, 2018 , we had $ 5.0 billion in commitments related to agreements with certain cobrand partners under which we make payments based primarily on the amount of Card Member spending and corresponding rewar ds earned on such spending and, under certain arrangements, on the number of accounts acquired and retained . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Derivatives and Hedging Activities | NOTE 14 Derivatives and Hedging Activities We use derivative financial instruments 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 an equity index or price, and are carried at fair value on the Consolidated Balance Sheets. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of our market risk management. We do not transact in derivatives for trading purposes. Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Our market risk exposures include: Interest rate risk due to changes in the relationship between interest rates on our assets (such as loans, receivables and investment securities) and interest rates on our liabilities (such as debt and deposits); and Foreign exchange risk related to earnings, funding, transactions and investments in currencies other than the U.S. dollar. We centrally monitor market risks using market risk limits and esca lation triggers as defined in our Asset/Liability Management Policy. Our market exposure s are in large part by-products of the delivery of our products and services. Interest rate risk primarily arises through the funding of Card Member receivables and fixed-rate loans with variable-rate borrowings, as well as through the risk to net interes t margin from changes in the relationship betwee n benchmark rates such as Prime, LIBOR and the overnight indexed swap rate . Interest rate exposure within our charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt and deposits compared to fixed-rate debt and deposits. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations, or to convert variable-rate debt obligations to fixed-rate obligations. We may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, among other factors. Foreign exchange risk is generated by Card Member cross-curren cy s pend , foreign currency balance sheet exposures, foreign subsidiary equity and foreign currency earnings in entities outside the United States. Our foreign exchange risk is managed primarily by entering into agreements to buy and sell currencies on a sp ot basis or by hedging this market exposure, to the ext ent it is economical , through various means, including the use of derivatives such as foreign exchange forwards and cross-currency swap contracts. Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to, an uncollateralized derivative exposure. We manag e this risk by considering the current exposure, which is the replacement cost of contracts o n the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are requ ired to be pre-approved by us and rated as investment grade, and counterparty risk exposures are centrally monitored. Additionally, in order to mitigate the bilateral counterparty credit risk associated with derivatives, we have in certain instances enter ed into master netting agreements with our derivative counterparties, which provide a right of offset for certain exposures between the parties. A majority of our derivative assets and liabilities as of December 31, 2018 and 2017 are subject to such master netting agreements with our derivative counterparties, and there are no instances in which management makes an accounting policy election to not net assets and liabilities subject to an enforceable master netting agreement on ou r Consolidated Balance Sheets. To further mitigate counterparty cre dit risk, we exercise our rights under executed credit support agreements with the respective derivative counterparties for most of our bilateral interest rate swaps and select foreign exchange contract s. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative con tracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts. In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to term inate the agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of December 31, 2018, these derivatives were not in a net liability position. We have no individually sig nificant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. Based on our assessment of the credit risk of our derivative counterparties as of December 31, 2018 and 2017 , no credit risk adjustm ent to the derivative portfolio was required. Our derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 15 for a description of our methodology for determining the fair value of derivatives. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Fair Value Other Liabilities Fair Value (Millions) 2018 2017 2018 2017 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 34 $ 11 $ 74 $ 34 Net investment hedges - Foreign exchange contracts 222 117 61 89 Total derivatives designated as hedging instruments 256 128 135 123 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 258 82 79 95 Total derivatives, gross 514 210 214 218 Less: Cash collateral netting (c) (d) (28) (6) (78) (45) Derivative asset and derivative liability netting (e) (90) (80) (90) (80) Total derivatives, net $ 396 $ 124 $ 46 $ 93 For our centrally cleared derivatives, variation margin payments are legally characterized as settlement pay ments as opposed to collateral. Includes foreign currency derivatives embedded in certain operating agreements . Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign excha nge contracts with the right to cash collateral held from the counter party or cash collateral posted with the counter party . We posted $84 million and $146 million as of Decembe r 31, 2018 and 2017 , resp ectively, 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 derivative assets and derivative liabilities exe cuted with the same counterparty under an enforceable master netting arrangement. Derivative Financial Instruments That Qualify For Hedge Accounting Derivatives executed for hedge accounting purposes are document ed and designated as such when we enter into the c ontracts. In accordance with our risk management policies, we structure our hedges with terms similar to those of the item being hedged. We formally assess, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, we will discontinue the application of hedge accounting. F air Value Hedges A fair value hedge involves a derivative designated to hedge our exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof, that is attributable to a particular risk. Interest Rate Contracts We are exposed to intere st rate risk associated with our f ixed-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 conv ert the fixed interest rate to a floating in terest rate. We have $24.0 billion and $ 23.8 billion of fixed-rate debt obli gations designated in fair value hedging relationships as of December 31, 2018 and 2017 , respectively. Gains or losses on the fair value hedging instrument principally offset the loss es or gain s on the hedged item attributable to the hedged risk. The changes in the fair value of the derivative and the changes in the hedged item may not fully offset due to differences between a debt obligation’s interest rate and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the fair value of the interest rate swap. Furthermore, the difference may be caused by changes in 1-month LIBOR, 3-month LIBOR and the overnight indexed swap rate, as spreads between these rates impact the fair value of the interest rate swap without an exact offsetting impact to the fair value of the hedged debt. The following table presents the gains and losses associated with the fair value hedges of our fixed-rate long-term debt for the year s ended December 31: Gains (losses) (Millions) 2018 2017 2016 Interest expense (a) Other expenses Other expenses Fixed-rate long-term debt $ 59 $ 206 $ 163 Derivatives designated as hedging instruments (43) (246) (184) Total $ 16 $ (40) $ (21) 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 Consoli dated Balance Sheets, were $23.7 billion and $23.6 billion as of December 31 , 2018 and 2017 , respectively, incl uding offsetting amounts of $241 million and $182 million for the respective periods, related to the cumulative amount of fair value hedging adjustments. We recognized a net increase of $51 million in Interest expense on Long-term debt for the year ended December 31, 2018 , and net reductions of $ 133 million and $ 224 million for the years ended December 31, 2017 and 2016 , respectively, primarily related to the net s ettlements (interest accruals) on our interest rate derivatives designated as fair value hedges. Net Investment Hedges A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. We primarily designate foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notionals of approximately $9.6 billion and $9.5 billion of foreign currency derivatives designated as net investment hedges as of December 31, 2018 and 2017, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulati ve translation adjustment, was a gain of $328 million , a loss of $ 370 million and a gain of $ 281 million for the years ended December 31, 2018 , 2017 and 2016 , respectively . Accumulated gains within AOCI of $1 million for the year ended December 31, 2018 , and losses of $31 million and $5 million for the years ended December 31, 2017 and 2016 , respective ly, were reclassified into Other e xpenses upon i nvestment sales or liquidations . Derivatives Not Designated As Hedges We ha ve derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes . Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, prima rily foreign exchange forwards . These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified date. We also ha ve certain operating agreements containing payments that may be linked to a market rate or price, primarily foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in which case the embe dded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exch ange gains or losses of the underlying foreign currency exposures. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in a net gain of $60 million, a net loss of $29 million and a net gain of $1 million for t he years ended December 31, 2018 , 2017 and 2016 , respectively, and are recognized in Other expenses. The changes in the fair value of an embedded derivative resulted in losses of $11 million and nil for the years ended December 31, 2018 and 2017 , respectively, and a gain of $9 million for t he year ended December 31, 2016 , and are recognized in Card Member services expense. |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Fair Values | NOTE 15 Fair Values Fair value is defined as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the principal or, in the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 ― Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full t erm of the asset or liability, including: - Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in markets that are not active; - Inputs other than quoted prices that are observable for the asset or liability; and - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 ― Inputs that a re unobservable and reflect our own estimates a bout the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). We did not meas ure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2018 and 2017 , although the disclosed fair value of cert ain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3. We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly. For the years ended December 31, 2018 and 2017 , there were no Level 3 transfers. 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 described in the preceding paragraphs), as of December 31 : 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 4,599 ― 4,599 ― 3,111 1,045 2,066 ― Derivatives, gross (a) 514 ― 514 ― 210 ― 210 ― Total Assets 5,161 1 5,160 ― 3,369 1,046 2,323 ― Liabilities: Derivatives, gross (a) 214 ― 214 ― 218 ― 218 ― Total Liabilities $ 214 $ ― $ 214 $ ― $ 218 ― 218 ― Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated basis. Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above), we appl y the following valuation techniques: Investment Securities When available, quoted prices of identical investment securities in active markets are used to estimate fair value. Such investment securities are classified within Level 1 of the f air value hierarchy. When quoted prices of identical investment securities in active markets are not available, the fair values for our investment securities are obtained primarily from pricing services engaged by us , and we receive one price for each secu rity. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such investment securities are classified within Level 2 of the fair value hierarchy. The inputs to the valuation techniques applied by the pricing services vary depending on the type of security being priced but are typically benchmark yields, benchmark security prices, credit spreads, prepayment speeds, rep orted trades and broker-dealer quotes, all with reasonable levels of transparency. The pricing services did not apply any adjustments to the pric ing models used. In addition, we did not apply any adjustments to prices received from the pricing services. W e reaffirm our understanding of the valuation techniques used by our pricing services at least annually. In addition, we corroborate the prices provided by our pricing services by comparing them to alternative pricing sources. In instances where price disc repancies are identified between different pricing sources, we evaluate such discrepancies to ensure that the prices used for our valuation represent the fair value of the underlying investment securities. Refer to Note 5 for additional fair value informat ion. Derivative Financial Instruments The fair value of our derivative financial instruments is estimated internally by using third-party pricing models , where the inputs to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. We reaffirm our understanding of the valuation techniques at least annually and validate the valuation outpu t on a quarterly basis . Our derivative instruments are classified within Level 2 of the fair value hierarchy. The fair value of our interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contrac tual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. The fair value of for eign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant f oreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, us ed to value derivatives are not indicative of our credit quality or that of our counterparties. We consider the counterparty credit risk by applying an observable forecasted default rate to the current exposure. Refer to Note 14 for additional fair value i nformation. Financial Assets and Financial Liabilities Carried at Other Than Fair Value The following table summarizes the estimated 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 December 31, 2018 and 2017 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2018 and 2017 , and require management’s judgment. These figu res may not be indicative of future fair values, nor can our fair value 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) $ 27 $ 27 $ 26 $ 1 $ ― Other financial assets (b) 58 58 ― 58 ― Financial assets carried at other than fair value Loans, net (c) 83 84 ― ― 84 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 81 81 ― 81 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 13 13 ― 13 ― Long-term debt (c) $ 58 $ 59 $ ― $ 59 $ ― 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 $ 8.5 billion and $ 8.9 billion held by a consolidated VIE as of December 31, 2018 and 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 $ 33.0 billion and $ 25.6 billion as of Dece mber 31, 2018 and 2017 , respectively, and the fair values of L ong-term debt were $ 19.4 billion and $ 18.6 billion as of December 31, 2018 and 2017 , respectively. Presented as a component of C ustomer deposits on the Consolidated B alance Sheets. Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Other Than Fair Value For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table) , we appl y the following valuation techniques to measure fair value: Financial Assets For Which Carrying Values Equal Or Approximate Fair Value Financial assets for which carrying values equal or approximate f air value include cash and cash equivalents, Card Member receivables, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market -based interest rate. Financial Assets Carried At Other Than Fair Value Loans, net Loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for our loans , we use a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar loans and the lack of observable pricing inputs thereof, we use various inputs to estimate fair value. Such inputs include projected income, discount rat es and relevant credit losses . The valuation does not include economic value attributable to future receivables generated by the accounts associated with the loans. Financial Liabilities For Which Carrying Values Equal Or Approximate Fair Value Financial liabilities for which carrying values equal or approximate fair value include accrued interest, customer deposits (excluding certificates of deposit, which are described further below), Travelers Cheques and other prepaid products outstanding, accounts pay able, short-term borrowings and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Liabilities Carried At Other T han Fair Value Certificates of Deposit Certificates of deposit (CDs) are recorded at their historical issuance cost on the Consolidated Balance Sheets. Fair value is estimated using a discounted cash flow methodology based on the future cash flows and the discount rate that reflects the current market rates for similar types of CDs within similar markets. Long-term Debt Long-term debt is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for (i ) unamortized discount and unamortized fees, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. The fair value of our long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flow s of each instrument at rates currently observed in publicly-traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly traded debt markets of similar terms and comparable cr edit risk, we use market interest rates and adjust those rates for necessary risks , including our own credit risk. In determining an appropriate spread to reflect our credit standing, we consider credit default swap spreads, bond yields of other long-term debt offered by us , and interest rates currently offered to us for similar debt instruments of comparable maturities. Nonrecurring Fair Value Measurements We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For the se assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values . During the year s ended December 31, 2018 and 2017 , we did not have any material assets that were measured at fair value due to impairment. E quity investments previously held at cost that are adjusted through earnings for observable price changes are not mat erial. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Guarantees | NOTE 16 Guarantees As of December 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 dispositions. As of December 31, 201 7 , the maximum potential undiscounted future payments and related liability were $ 1 billion and $ 52 million, respectively. To date , we have not 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. |
Common and Preferred Shares and
Common and Preferred Shares and Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Common And Preferred Shares And Warrants [Text Block] | NOTE 17 Common and Preferred Shares The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2018 2017 2016 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 859 904 969 Repurchases of common shares (15) (50) (70) Other, primarily stock option exercises and restricted stock awards granted 3 5 5 Shares issued and outstanding as of December 31 847 859 904 Of the common shares authorized but unissued as of December 31, 2018 , approximately 24 million shares are reserved for issuance under employee stock and employee benefit plans. On September 26, 2016 , the Board of Directors authorized the repurchase of 150 million of common shares over time in accordance with our capital distribution plans submitted to the Board of Governors of the Federal Reserve System (the Federal Reserve) and subject to market conditions. This authorization replace s all prior repurchase authorizations. During 2018 , 2017 and 2016 , we repurchased 15 million common shares with a cost basis of $ 1.6 billion, 50 million common shares with a cost basis of $ 4.3 billion, and 70 million common shares with a cost basis of $ 4.4 billion, respectively. The cost basis includes commissions paid of $ 2.2 million, $ 2.9 million and $ 1.2 million in 2018 , 2017 and 2016 , respectively. As of Decembe r 31, 2018 , we had approximately 70 million common shares remaining under the Board share repurchase authorization. Such authorization does not have an expiration date. Common shares are generally retired by us upon repurchase (except for 2.7 million, 2.9 million and 3.0 million shares held as treasury shares as of December 31, 2018 , 2017 and 2016 , respectively); retired common shares and treasury shares are excluded from the shares outstanding in the table above . The treasury shares, with a cost basis of $ 207 million, $ 217 million and $ 197 million as of December 31, 2018 , 2017 and 2016 , respectively, are included as a reduction to Additional paid-in capital in S hareholders’ equity on the Consolidated Balance Sheets. PREFERRED SHARES The Board of Directors is authorized to permit us to issue up to 20 million Preferred Shares at a par value of $1.66 2/3 without further shareholder approval. We ha ve the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31, 2018 : Series B Series C Issuance date November 10, 2014 March 2, 2015 Securities issued 750 Preferred Shares; represented by 750,000 depositary shares 850 Preferred Shares; represented by 850,000 depositary shares Aggregate liquidation preference $750 million $850 million Fixed dividend rate per annum 5.20% 4.90% Semi-annual fixed dividend payment dates Beginning May 15, 2015 Beginning September 15, 2015 Floating dividend rate per annum 3 month LIBOR+ 3.428% 3 month LIBOR+ 3.285% Quarterly floating dividend payment dates Beginning February 15, 2020 Beginning June 15, 2020 Fixed to floating rate conversion date (a) November 15, 2019 March 15, 2020 The date on which dividends convert from a fixed-rate calculation to a floating rate calculation. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Company , the preferred stock then outstanding takes precedence over our common stock for the payment of dividends and the distribution of assets out of funds legally available for distribution to shareholders. Each outstanding series of Preferred Shares has a liq uidation price of $1 million per Preferred Share, plus any accrued but unpaid dividends. We may redeem these Preferred Shares at $1 million per Preferred Share (equivalent to $1,000 per depositary share) plus any declared but unpaid dividends in whole or i n part, from time to time, on any dividend payment date on or after the respective fixed to floating rate conversion date, or in whole, but not in part, within 90 days of certain bank regulatory changes. There were no warrants issued and outstanding as of December 31, 2018 , 2017 and 2016 . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Changes in Accumulated Other Comprehensive (Loss) Income | NOTE 18 Changes in Accumulated Other Comprehensive Income AOCI is a balance sheet item in Shareholders’ e quity on the Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows: (Millions) , net of tax Net Unrealized (Losses) Gains on Investment Securities Foreign Currency Translation Adjustment (Losses) Gains Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized losses (45) ― ― (45) (Decrease) increase due to amounts reclassified into earnings (6) 4 ― (2) Net translation losses on investments in foreign operations ― (503) ― (503) Net gains related to hedges of investments in foreign operations ― 281 ― 281 Pension and other postretirement benefits ― ― 19 19 Net change in accumulated other comprehensive (loss) income (51) (218) 19 (250) Balances as of December 31, 2016 7 (2,262) (529) (2,784) Net unrealized losses (7) ― ― (7) Decrease due to amounts reclassified into earnings ― (7) ― (7) Net translation gains on investments in foreign operations (a) ― 678 ― 678 Net losses related to hedges of investments in foreign operations ― (370) ― (370) Pension and other postretirement benefits ― ― 62 62 Net change in accumulated other comprehensive (loss) income (7) 301 62 356 Balances as of December 31, 2017 ― (1,961) (467) (2,428) Net unrealized losses (10) ― ― (10) Net translation losses on investments in foreign operations ― (500) ― (500) Net gains related to hedges of investments in foreign operations ― 328 ― 328 Pension and other postretirement benefits ― ― 11 11 Other (b) 2 ― ― 2 Net change in accumulated other comprehensive (loss) income (8) (172) 11 (169) Balances as of December 31, 2018 $ (8) $ (2,133) $ (456) $ (2,597) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 21) . Represents unrealized gains 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 years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2018 2017 2016 Net unrealized investment securities $ (2) $ (4) $ (27) Net translation on investments in foreign operations (a) (44) (172) (15) Net hedges of investments in foreign operations 107 (215) 139 Pension and other postretirement benefits 9 7 37 Total tax impact $ 70 $ (384) $ 134 (a) Includes $289 mi llion of recognized tax benefits in the year ended December 31, 2017 (r efer to Note 21 ). The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the years ended December 31 : Gains (losses) recognized in earnings Description (Millions) Income Statement Line Item 2018 2017 Foreign currency translation adjustments Reclassification of translation adjustments and related hedges Other expenses $ 1 $ (7) Related income tax Income tax provision (1) 14 Reclassification of foreign currency translation adjustments $ ― $ 7 |
Non-Interest Revenue and Expens
Non-Interest Revenue and Expense Detail | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Non-Interest Revenue and Expense Detail | NOTE 19 other fees and commissions, other revenues and other expenses The following is a detail of Other fees and commissions for the years ended December 31: (Millions) 2018 2017 2016 Fees charged to Card Members: Delinquency fees $ 959 $ 888 $ 762 Foreign currency conversion fee revenue 921 851 809 Other customer fees: Loyalty coalition-related fees 461 452 409 Travel commissions and fees 395 364 332 Service fees and other (a) 417 435 406 Total Other fees and commissions $ 3,153 $ 2,990 $ 2,718 Other includes Membership Rewards program fees that are not related to contracts with customers . The following is a detail of Other revenues for the years ended December 31: (Millions) 2018 2017 2016 Global Network Services partner revenues $ 260 $ 327 $ 350 Other (a) 1,100 1,130 1,328 Total Other revenues $ 1,360 $ 1,457 $ 1,678 Other includes revenues arising from net revenue earned on cross-border Card Member spending, merchant-related fees, insurance premiums earned from Card Member travel and other insurance programs, revenues related to the GBT JV transition services agreement, prepaid card and Travelers Cheque-related revenues, earnings from equity method investments (including the GBT JV), and other miscellaneous revenue and fees . Revenue expected to be recognized in future periods related to contracts that have an original 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 not material. The following is a detail of Other expenses for the years ended December 31: (Millions) 2018 2017 2016 Professional services $ 2,125 $ 2,040 $ 2,508 Occupancy and equipment 2,033 2,018 1,837 Gain on sale of HFS portfolios (a) ― ― (1,218) Other (b) 1,513 1,576 1,815 Total Other expenses $ 5,671 $ 5,634 $ 4,942 Refer to Note 2 for additional information. Other expense inclu des general operating expenses, communication expenses, Card and merchant-related fraud losses, foreign cu rrency-related gains and losses , and gains on the sale of equity investments . For the year ended December 31, 2018, Other expense also includes the loss on a transaction involving the operations of our prepaid reloadable and gift card business and unrealized gains on certain equity investments previously carried at cost . For the year ended December 31, 2017, Other expense also includes charges related to our U.S. loyalty coalition and prepaid businesses . |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Restructuring Charges | NOTE 20 Restructuring We periodically initiate restructuring programs to support new business strategies and to enhance our overall effectiveness and efficiency. In connection with these programs, we will typically incur severance and other exit costs. We had $69 million, $199 million and $383 million accrued in total restructuring reserve s as of December 31, 2018 , 2017 and 2016 , respectively. New charges, including net revisions to existing restructuring reserves , which primarily relate to the redeployment of displaced colle agues to other positions , were $(23) million, $42 million and $329 million, for the years ended December 31, 2018 , 2017 and 2016 , respectively. Cumulatively, we recognized $554 million relating to the restru cturing programs that were in progress during 2018 and initiated at various dates between 2011 and 2018 , the majority of which has been reflected within Corporate & Other. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Income Taxes | NOTE 21 Income Taxes The Tax Act, enacted by the U.S. government on December 22, 2017, made broad and complex changes to the U.S. tax code which required time to interpret. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118) in December, 2017, to provide guidance on accounting for the effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the Tax Act enactment date for companies to complete their assessment of and accounting for those effects of the Tax A ct required under ASC 740 “Implementation Guidance on Accounting for Uncertainty in Income Taxes” to be reported in the period of enactment. Under SAB 118, a company must first reflect the income tax effects of the Tax Act for which the accounting is comp lete in the period of the date of enactment. To the extent the accounting for other income tax effects is incomplete, but a reasonable estimate can be determined, companies must record a provisional estimate to be included in their financial statements. F or any income tax effect for which a reasonable estimate cannot be determined, an entity must continue to apply ASC 740 based on the provisions of the tax laws in effect immediately prior to the Tax Act being enacted until such time as a reasonable estimat e can be determined. In 2017, we recorded a net discrete tax charge of $2.6 billion related to the Tax Act that was accounted for as a provisional esti mate under SAB 118. We have completed our assessment of and accounting for the Tax Act, and recorded a net discrete tax benefit of $0.1 billion in the current period which represents the final adjustment to our 2017 provisional estimate, which is further explained below. Impacts of Deemed Repatriation: In 2017 , we recorded a provisional tax charge of $1.7 billion related to the one-time transition tax on unrepatriated post-1986 accumulated earnings and profits (E&P) of certain fo reign subsidiaries. We have completed our assessment of the transition tax , which resulted in no material change to our original estimate of $1.7 billion. We also recorded a provisional deferred tax liability of $0.3 billion to account for the state income and foreign withholding tax on potential future cash dividends paid from such E&P. We have completed our assessment and reduce d the deferred tax liability for state income and foreign withholding taxes related to certain foreign subsidiaries , which resulted in a discrete tax benefit adjustment of $0.1 billion to our original provisional estimate. Remeasurement of Deferred Tax As sets and Liabilities: In 2017, we recorded a provisional deferred tax charge of $0.6 billion related to the remeasurement of our U.S. federal net deferred tax assets to reflect the change in the corporate tax rate from 35 percent to 21 percent, as well as other provisio ns of the Tax Act. We have completed our assessment of the reme a surement of deferred tax assets and liabilities , which resulted in no material change to our original estimate. The global intangible low tax income (GILTI) provisions of the T ax Act impose a minimum tax on foreign income in excess of a deemed return on tangible assets. We have elected to account for GILTI as a current period expense when incurred. The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2018 2017 2016 Current income tax expense: U.S. federal $ 70 $ 3,408 $ 2,180 U.S. state and local 150 259 272 Non-U.S. 681 387 340 Total current income tax expense 901 4,054 2,792 Deferred income tax (benefit) expense: U.S. federal 276 544 (63) U.S. state and local 78 (12) (10) Non-U.S. (54) 91 (52) Total deferred income tax (benefit) expense 300 623 (125) Total income tax expense $ 1,201 $ 4,677 $ 2,667 A reconciliation of the U.S. federal statutory rate of 21 percent a s of December 31, 2018, and 35 percent as of both December 31 , 2017 and 2016, to our actual income tax rate on continuing operations was as follows: 2018 2017 2016 U.S. statutory federal income tax rate 21.0 % 35.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.7) (1.7) (1.7) State and local income taxes, net of federal benefit 2.8 2.3 2.7 Non-U.S. subsidiaries' earnings (a) (0.5) (5.7) (2.0) Tax settlements (b) (1.9) (0.7) (0.6) U.S. Tax Act (c) (1.1) 34.8 ― U.S. Tax Act - related adjustments (d) (3.2) ― ― Other (0.6) (1.0) (0.2) Actual tax rates 14.8 % 63.0 % 33.2 % Results for 2017 and 2016 primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were previously deemed to be reinvested indefinitely. In addition, 2017 included tax benefits of $156 million, which decreased the actual tax rate by 2.1 percent, related to the realization of certain foreign tax credits. R esults for 2018 relate to the settlement of the IRS examination for tax years 2008-2014, as well as the resolution of certain tax matters in various jurisdictions. Relates to the $2.6 billion provisional charge for the impacts of the Tax Act in 2017 and the adjustments thereto in 2018 . Relates to changes to the tax method of accounting for certain expenses. We record a deferred income tax (benefit) provision when there are differences between assets and liabilities measu red for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such diffe rences are expected to r everse. In particular, the 2017 balances were reduced to reflect the r emeasurement of certain f ederal net deferred tax assets due to the enacted lower federal tax rate of 21 percent . The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2018 2017 Deferred tax assets: Reserves not yet deducted for tax purposes $ 2,612 $ 2,724 Employee compensation and benefits 360 403 Other 431 409 Gross deferred tax assets 3,403 3,536 Valuation allowance (61) (46) Deferred tax assets after valuation allowance 3,342 3,490 Deferred tax liabilities: Intangibles and fixed assets 1,083 1,057 Deferred revenue 435 306 Deferred interest 171 183 Investment in joint ventures 137 137 Other 210 269 Gross deferred tax liabilities 2,036 1,952 Net deferred tax assets $ 1,306 $ 1,538 A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances as of December 31, 2018 and 2017 are associated with net operating losses and other deferred tax assets in certain no n-U.S. operations . Accumulated earnings of certain non-U.S. subsidiaries, which totaled approximately $0.7 billion as of December 31, 2018, are intended to be permanently rein vested outside the U.S . We do not provide for state income and foreign withholding taxes on foreign earnings intended to be permanently reinvested outside the U.S . Accordingly, state income and foreign withholding taxes, which would have aggregated to ap proximately $0.1 billion as of December 31, 2018, have not been provided on those earnings. Net income taxes paid by us during 2018 , 2017 and 2016 , were approximately $ 2.0 billion, $ 1.4 billion and $ 3.0 billion, respectiv ely. These amounts include estimated tax payments and cash settlements relating to prior tax years. We are subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which we operate . These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, we must make judgments in assessing the likelihood that a tax position will be sustained upon examinat ion by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be s ustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authorit y given the facts, circumstances and information available at the reporting date. We adjust the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. We are under continuous examination by the I nternal 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. In 2018 we settled our US federal income tax au dits for tax years 2008-2014 , and the statute of limitations for these years remain open through 2019. Tax years from 2015 onwards are open for examination by the IRS. The following table presents changes in unrecognized tax benefits: (Millions) 2018 2017 2016 Balance, January 1 $ 821 $ 974 $ 870 Increases: Current year tax positions 152 200 167 Tax positions related to prior years 47 39 117 Decreases: Tax positions related to prior years (a) (74) (289) (81) Settlements with tax authorities (b) (192) (77) (76) Lapse of statute of limitations (44) (26) (22) Effects of foreign currency translations (9) ― (1) Balance, December 31 $ 701 $ 821 $ 974 Decrease in 2017 due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in AOCI. 2018 relates to the settlement of the IRS examination for tax years 2008-2014, as well as the resolution of certain tax matters in various jurisdictions. Included in the unrecognized tax benefits of $ 0.7 billion, $ 0.8 billion and $ 1.0 billion for December 31, 2018 , 2017 and 2016 , respectively, are approximately $ 599 million, $ 723 million and $ 516 million, respectively, that , if recognized, would favorably affect the effective tax rate in a future period. We believe it is reasonably possible that our unrecognized tax benefits could decrea se within the next 12 months by as much as $ 151 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 deductib ility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $ 151 million of unrecognized tax benefits, approximately $ 127 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. For the years ended December 31, 2018 and 2017, we recognize d benefits of approximately $18 million a nd $90 million, respectively, for interest and penalties. For t he year ended December 31, 2016 , we recognized approximately $9 million in expenses for interest and penalties. The interest expense benefit in 2017 includes approximately $56 million related to the resolution of an uncertain tax position with the IRS in January 2017, which had no net impact on the income tax provision . We had approximately $65 million an d $83 milli on accrued for the payment of interest and p enalties as of December 31, 2018 and 2017 , respectively. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Earnings Per Common Share (EPS) | NOTE 22 Earnings Per Common Share (EPS) The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2018 2017 2016 Numerator: Basic and diluted: Net income $ 6,921 $ 2,748 $ 5,375 Preferred dividends (80) (81) (80) Net income available to common shareholders 6,841 2,667 5,295 Earnings allocated to participating share awards (a) (54) (21) (43) Net income attributable to common shareholders $ 6,787 $ 2,646 $ 5,252 Denominator: (a) Basic: Weighted-average common stock 856 883 933 Add: Weighted-average stock options (b) 3 3 2 Diluted 859 886 935 Basic EPS $ 7.93 $ 3.00 $ 5.63 Diluted EPS $ 7.91 $ 2.99 $ 5.61 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 unexercise d stock options excludes from the computation of EPS 0.7 million, 0.6 million and 2.4 million of options for the years ended December 31, 2018 , 2017 and 2016 , respectively, because inclusion of the options would h ave been anti-dilutive. |
Regulatory Matters and Capital
Regulatory Matters and Capital Adequacy | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Regulatory Matters and Capital Adequacy | NOTE 23 Regulatory Matters and Capital Adequacy We are supervised and regulated by the Board of Governors of the Federal Reserve System (the Federal Reserve) and are subject to the Federal Reserve’s requirements for risk-based capital and leverage ratios. Our U.S. bank subsidiary, AENB , is the surviving entity that resulted from the conversion of American Express Centurion Bank, a Utah state-chartered industrial bank, into a national banking association, and the subsequent merger of American Express Bank, FSB, a federal savings bank, into the successor entity as of April 1, 2018. AENB is subject to supervision and regulation, including regulatory capital and leverage requirements, by the Office of the Comptro ller of the Currency (OCC). Under the risk-based capital guidelines of the Federal Reserve, we are required to maintain minimum ratios of CET1 , Tier 1 and Total (Tier 1 plus Tier 2) capital to risk-weighted assets, as well as a mini mum Tier 1 leverage ratio (Tier 1 capital to average adjusted on-balance sheet assets) and a supplementary leverage ratio (Tier 1 capital to both on-balance sheet and certain off-balance sheet exposures). Failure to meet minimum capital requirements can i nitiate certain mandatory, and possibly additional, discretionary actions by regulators, that, if undertaken, could have a direct material effect on our operating activities. As of December 31, 2018 and 2017 , we met all capital requirements to which we were subject and maintained regulatory capital ratios in excess of those required to qualify as well capitalized. The following table presents the regulatory capital ratios : (Millions, except percentages) CET 1 capital Tier 1 capital Total capital CET 1 Capital ratio Tier 1 capital ratio Total capital ratio Tier 1 leverage ratio Supplementary Leverage Ratio December 31, 2018: (a) American Express Company $ 17,498 $ 19,070 $ 21,653 11.0 % 12.0 % 13.6 % 10.4 % 8.9 % American Express National Bank $ 11,564 $ 11,564 $ 13,574 12.1 % 12.1 % 14.2 % 9.9 % 8.2 % December 31, 2017: (a) American Express Company $ 13,189 $ 14,721 $ 17,142 9.0 % 10.1 % 11.8 % 8.6 % (b) % American Express Centurion Bank $ 5,954 $ 5,954 $ 6,547 12.7 % 12.7 % 14.0 % 10.2 % (b) % American Express Bank, FSB $ 6,065 $ 6,065 $ 6,653 12.9 % 12.9 % 14.2 % 11.7 % (b) % Well-capitalized ratios (c) 6.5 % 8.0 % 10.0 % 5.0 % N/A Basel III Standards 2018 (d) 6.4 % 7.9 % 9.9 % 4.0 % 3.0 % Minimum capital ratios (e) 4.5 % 6.0 % 8.0 % 4.0 % 3.0 % As a Basel III advanced approaches institution in parallel run, capital ratios are reported using Basel III capital definitions, inclusive of transition provisions for the capital ratios and risk-weighted assets using the Basel III standardized approach. The minimum supplementary leverage ratio (SLR) requirement of 3 percent became effective January 1, 2018. Represents requirements for banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Deposit Insuran ce Corporation Improvement Act. There is no CET1 capital ratio, Tier 1 leverage ratio or SLR requirement for a bank holding company to be considered “well capitalized.” Basel III minimum capital requirement and additional transitional capital conservation buffer as defined by the Federal Reserve and OCC for calendar year 2018 for advanced approaches institutions. The additional capital conservation buffer does not apply to Tier 1 leverage ratio or SLR. As defined by the regulations issued b y the Federal Res erve and OCC. Restricted Net Assets of Subsidiaries Certain of our subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on our shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2018 , the aggregate amount of net assets of subsidiaries that are restricted to be transferred was approximately $ 8.8 billion. Bank Holding Company Dividend Restrictions We are limited in our ability to pay dividends by the Fede ral Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net in come available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank ho lding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and mainta in a capital plan, which includes planned dividends over a two-year horizon. We may be limited in our ability to pay dividends if the Federal Reserve objects to our capital plan. In addition, the Capital Rules include a capital conservation buffer of 1.875 percent as of December 31, 2018 . The Capital Rules also include a countercyclical capital buffer, which is currently set at zero but which could be increased by the Federal Reserve in the future. These buffers can be satisfied only with CET1 capital. If o ur risk-based capital ratios were to fall below the applicable buffer levels, we would be subject to certain restrictions on dividends, stock repurchases and other capital distributions, as well as discretionary bonus payments to executive officers . Bank D ividend Restrictions In the year ended December 31, 2018 , American Express National Bank paid dividends from retained earnings to its pa rent of $ 5.9 billion. AENB is limited in its ability to pay dividends by banking statutes, regulations an d supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as A ENB , from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy standards. A ENB must maintain a capital conservation buffer (and countercyclical bu ff er if in effect). I f AENB ’ s risk-based capital ratios do not satisfy minimum requirements plus the combined capital conservation buffer (and the countercyclical capi tal buffer, if applicable), it will face graduated constraints on dividends and other capit al distributions based on the amount of the shortfall. As of December 31, 2018 , AENB ’ s retained earnings available for the payment of dividends was $ 3.9 billion. In determ ining the dividends to pay its parent, AENB must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory a gencies. In addition, AENB’s banking regulators have authority to limit or prohibit the pa yment of a dividend by AENB under a number o f circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Significant Credit Concentratio
Significant Credit Concentrations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Concentration Risk Disclosure [Text Block] | NOTE 24 Significant Credit Concentrations Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express’ total credit exposure. Our customers operate in diverse industries, economic sectors and geographic regions. The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2018 2017 On-balance sheet: Individuals (a) $ 123 $ 112 Institutions (b) 20 20 Financial Services (c) 30 35 U.S. Government and agencies (d) 4 3 Total on-balance sheet $ 177 $ 170 Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. Represents banks, broker-dealers, insurance companies and savings and loan associations. R epresent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. As of December 31, 2018 and 2017 , our most significant concentration of credit risk was with individuals, including Card Member loans and receivables. These amounts are generally advanced on an unsecured basis. However, we review each potential customer’s credit application and evalua te the applicant’s financial history and ability and willingness to repay. We also consider credit performance by customer tenure, industry and geographic location in managing credit exposure. The following table details our Card Member loans and receivables exposure (including unused lines-of-credit available to Card Members as part of established lending product agreements ) in the United States and outside the United States as of December 31: (Billions) 2018 2017 On-balance sheet: U.S. $ 111 $ 102 Non-U.S. 27 25 On-balance sheet 138 127 Unused lines-of-credit: (a) U.S. 249 224 Non-U.S. 53 49 Total unused lines-of-credit $ 302 $ 273 Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Because our charge card products generally have no preset spending limit, the associated credit limit on charge products is not quantifiable, and therefore is not reflected in unused credit available to Card Members. |
Reportable Operating Segment
Reportable Operating Segment | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Reportable Operating Segments | NOTE 25 Reportable Operating Segments and Geographic Operations Reportable Operating Segments We are a global services company that is principally engag ed in businesses comprising three reportable operating segments: GCSG , GCS and GM N S. We consider a combination of factors when evaluating the composition of our reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, pro duct distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. The following is a brief description of the primary business activities of our three reportable operating segments: GCSG issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel services and non-card financing products, and manages certain international joint ventures and our partnership agreements in China. GCS issues a wide range of proprietary corporate and small business cards and provides payment and expense management services globally. In addition, GCS provides commercial financing products. GMNS operates a global payme nts network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships w ith third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network. GMNS also manages loyalty coalition businesses in certain countries. Corporate functions and certain other businesses and operations are included in Corporate & Other. During 2018, we changed the methodology used to allocate certain corporate overhead costs and interest income and expense to the operati ng segments, and made minor changes to the intercompany settlement process. Prior 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 years ended December 31, 2018 , 2017 and 2016 : (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated 2018 Non-interest revenues $ 14,675 $ 11,882 $ 6,069 $ 49 $ 32,675 Revenue from contracts with customers (b) 10,294 10,309 5,988 16 26,607 Interest income 8,323 1,621 30 632 10,606 Interest expense 1,542 827 (294) 868 2,943 Total revenues net of interest expense 21,456 12,676 6,393 (187) 40,338 Total provisions 2,430 899 22 1 3,352 Pretax income (loss) from continuing operations 3,714 2,895 2,844 (1,331) 8,122 Income tax provision (benefit) 637 555 704 (695) 1,201 Net income (loss) 3,077 2,340 2,140 (636) 6,921 Total assets (billions) $ 151 $ 52 $ 45 $ (59) $ 189 2017 Non-interest revenues $ 13,378 $ 10,942 $ 6,025 $ 82 $ 30,427 Revenue from contracts with customers (b) 9,448 9,471 5,846 15 24,780 Interest income 6,789 1,361 42 371 8,563 Interest expense 1,047 595 (188) 658 2,112 Total revenues net of interest expense 19,120 11,708 6,255 (205) 36,878 Total provisions (b) 1,996 743 16 5 2,760 Pretax income (loss) from continuing operations 3,645 2,843 2,645 (1,708) 7,425 Income tax provision 1,053 914 857 1,853 4,677 Net income (loss) 2,592 1,929 1,788 (3,561) 2,748 Total assets (billions) $ 124 $ 49 $ 31 $ (23) $ 181 2016 Non-interest revenues $ 12,993 $ 10,373 $ 6,093 $ 200 $ 29,659 Revenue from contracts with customers (b) 9,386 8,918 5,826 105 24,235 Interest income 6,005 1,209 37 233 7,484 Interest expense 828 472 (133) 538 1,705 Total revenues net of interest expense 18,170 11,110 6,263 (105) 35,438 Total provisions (b) 1,390 604 24 9 2,027 Pretax income (loss) from continuing operations 4,508 2,933 2,391 (1,790) 8,042 Income tax provision (benefit) 1,469 1,032 861 (695) 2,667 Net income (loss) 3,039 1,901 1,530 (1,095) 5,375 Total assets (billions) $ 114 $ 43 $ 26 $ (24) $ 159 Corporate & Other includes adjustments and eliminations for intersegment activity. I ncludes discount revenue, certain other fees and commissions and other revenues from customers. Total Revenues Net of Interest Expense We allocate discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the GCSG and GCS segments, discount revenue generally reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue. Net card fees and other fees and commissions are directly attributa ble to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segmen t funding requirements and internal funding rates. Provisions for Losses The provisions for losses are directly attributable to the segment in which they are reported. Expenses Marketing and business development expense is included in each segment based on the actual expenses incurred. Global brand advertising is primarily reflected in Corporate & Other and may be allocated to the segments based on the actual expense incurred . Rewards and Card Member services expense s are included in each segment based on the actual expenses incurred within the segment. Salaries and employee benefits and other operating expense s reflect expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, exp enses related to support services, such as technology costs, are allocated to each segment primarily based on support service activities directly attributable to the segment. Certain other overhead expenses are allocated fro m Corporate & Other to the segments based on the relative levels of revenue and Card Member loans and receivables . Income Taxes An income tax provision (benefit ) is allocated to each reportable operating segment based on the effective tax rates applicable to various businesses that comprise the segment. The charge of $2.6 billion related to the Tax Act in the fourth quarter of 2017 was allocate d in full to Corporate & Other. Geographic Operations The following table presents our total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment : (Millions) United States EMEA (a) JAPA (a) LACC (a) Other Unallocated (b) Consolidated 2018 Total revenues net of interest expense $ 29,864 $ 4,419 $ 3,656 $ 2,584 $ (185) $ 40,338 Pretax income (loss) from continuing operations 6,696 1,212 764 782 (1,332) 8,122 2017 Total revenues net of interest expense $ 27,187 $ 3,927 $ 3,464 $ 2,505 $ (205) $ 36,878 Pretax income (loss) from continuing operations 6,412 1,150 763 806 (1,706) 7,425 2016 Total revenues net of interest expense $ 26,339 $ 3,570 $ 3,275 $ 2,360 $ (106) $ 35,438 Pretax income (loss) from continuing operations 7,943 698 556 635 (1,790) 8,042 EMEA represents Eur ope, the Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and the Caribbean. Other Unallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 26 Parent Company PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2018 2017 2016 Revenues Non-interest revenues Other $ 426 $ 358 $ 391 Total non-interest revenues 426 358 391 Interest income 422 258 196 Interest expense 615 493 515 Total revenues net of interest expense 233 123 72 Expenses Salaries and employee benefits 336 362 388 Other 607 553 510 Total expenses 943 915 898 Pretax loss (710) (792) (826) Income tax benefit (179) (354) (327) Net loss before equity in net income of subsidiaries and affiliates (531) (438) (499) Equity in net income of subsidiaries and affiliates 7,452 3,186 5,874 Net income $ 6,921 $ 2,748 $ 5,375 PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2018 2017 Assets Cash and cash equivalents $ 3,287 $ 4,726 Equity in net assets of subsidiaries and affiliates 22,298 18,225 Loans to subsidiaries and affiliates 17,945 11,664 Due from subsidiaries and affiliates 1,783 1,962 Other assets 297 361 Total assets 45,610 36,938 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 1,961 3,076 Due to subsidiaries and affiliates 577 175 Short-term debt of subsidiaries and affiliates 2,591 2,731 Long-term debt 18,191 12,695 Total liabilities 23,320 18,677 Shareholders’ Equity Total shareholders’ equity 22,290 18,261 Total liabilities and shareholders’ equity $ 45,610 $ 36,938 PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2018 2017 2016 Cash Flows from Operating Activities Net income $ 6,921 $ 2,748 $ 5,375 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (7,452) (3,186) (5,870) Dividends received from subsidiaries and affiliates 3,222 5,755 4,999 Other operating activities, primarily with subsidiaries and affiliates (257) 659 (102) Net cash provided by operating activities 2,434 5,976 4,402 Cash Flows from Investing Activities Purchase of premises and equipment ― ― (1) Loans to subsidiaries and affiliates (6,281) (4,044) 4,142 Investments in subsidiaries and affiliates (30) ― (25) Net cash (used in) provided by investing activities (6,311) (4,044) 4,116 Cash Flows from Financing Activities Proceeds from long-term debt 9,350 5,900 ― Payments on long-term debt (3,850) (1,500) (1,350) Short-term debt of subsidiaries and affiliates (140) (1,313) (2,879) Issuance of American Express common shares and other 87 129 176 Repurchase of American Express common shares (1,685) (4,400) (4,430) Dividends paid (1,324) (1,251) (1,206) Net cash provided by (used in) financing activities 2,438 (2,435) (9,689) Net decrease in cash and cash equivalents (1,439) (503) (1,171) Cash and cash equivalents at beginning of year 4,726 5,229 6,400 Cash and cash equivalents at end of year $ 3,287 $ 4,726 $ 5,229 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Abstract | |
Quarterly Financial Data | NOTE 27 QUARTERLY FINANCIAL DATA (UNAUDITED ) (Millions, except per share amounts) 2018 2017 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 10,474 $ 10,144 $ 10,002 $ 9,718 $ 9,707 $ 9,290 $ 9,172 $ 8,709 Pretax income 1,831 2,118 2,091 2,082 1,798 1,831 1,957 1,839 Net income (loss) 2,010 1,654 1,623 1,634 (1,206) 1,359 1,344 1,251 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) 2.33 1.89 1.85 1.86 (1.42) 1.51 1.48 1.36 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) 2.32 1.88 1.84 1.86 (1.42) 1.51 1.47 1.35 Cash dividends declared per common share $ 0.39 $ 0.39 $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.32 $ 0.32 Represents net income, less (i) earnings allocated to participating share awards of $ 16 million, $ 13 million, $ 12 million and $ 13 million for the quarters ended December 31, September 30, June 30 and March 31, 2018 , respectively, and $ 2 million, $ 11 million, $ 11 million and $ 10 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively, and (ii) dividend s on preferred shares of $ 19 million, $ 20 million, $ 20 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2018 , respectively, and $ 20 million, $ 21 million, $ 19 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Policy (Text Block) [Abstract] | |
Description of new accounting pronouncements adopted | 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 credit 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 below, 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 and statement credits, corporate incentive payments, as w ell 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 merchants 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 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 financial position or cash flows . We had no material c ontract assets, contract liabilities or deferred contract costs recorded on the Consolidated Balance Sheet as of December 31, 2018 and 2017. Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In adopting the guidance, we implemented changes to our accounting policies, 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 and measurement of financial assets and financial liabilities, which was effective 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 financial assets and liabilities. This applies to investments we make in non-public companies in the ordinary course of business, which historically were recognized under the cost method of accounting. These investments will be prosp ectively 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, results of operations a nd 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 targeted improvem ents 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 optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. Effective January 1, 2018, we adopted the guidance, with no material imp act 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. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. We consolidat e entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlli ng financial interest when we are able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs) , the determination of which is based on the amount and characteristics of the entity’s equity, we are considered to hold a controllin g financial interest when we are determined to be the primary beneficiary. A primary bene ficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could p otenti ally be significant to that VIE. Entities in which our voting interest in common equity does not provide it with control, but allows us to exert significant influence over operating and financial decisions, are accounted for under the equity method. We als o have investments in equity securities where our voting interest is below the level of significant influence, including investments that we make in non-public companies in the ordinary course of business . Such investments are initially recorded at cost a nd adjusted to fair value through earnings for observable price changes in orderly transactions for identical or similar transactions of the same company or if they are determined to be impaired . See Note 5 for the accounting policy for our marketable equi ty securities. |
Foreign Currency | Foreign Currency Monetary a ssets and liabili ties denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the e nd of the reporting period; non- monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction; revenues and expenses are translated at the average month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are inc luded in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency are reported net in Other expenses, in our Consolidated Statements of Income. |
Amounts Based on Estimates and Assumptions | Amounts Based on Estimates and Assumptions Accounting estimat es are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on l oans and receivables, Membership Rewards liability , goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. |
Total Revenues Net of Interest Expense | 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 Membe rs. The amount of fees charged for accepting our cards as payment for goods or services, or merchant discount, varies with, among other factors, the industry in which the merchant conducts business, the merc hant’s overall American Express-related transaction volume, the method of payment, the settlement terms with the merchant, the method of submission of transactions and, in certain instances, the geographic scope of the card acceptance agreement between the merchant and us (e.g., local or global) and the transaction amount. The merchant discount is generally deducted from the payment to the merchant and recorded as discount revenue at the time the Card Member transaction occurs. The card acceptance agreement s, which include 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 per iods, which 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 obligations under these agreements over the contract term, often on a daily basis, including through the processing of Card Member transactions and the availability of our payment network. In cases where the merchant acquirer is a third party (which i s 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 recorded 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. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary ba sed 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 a nd recognized on a straight-line basis over the twelve-month card membership period as Net card fees in the Consolidated Statements of Income. The unamortized net card fee balance is reported in Other liabilities on the Consolidated Balance Sheets (refer t o Note 10). 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 program 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 Conso lidated Balance Sheets. In addition, Other fees and commissions includes loyalty 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 19 for additional information. Contra-revenue P ayments made pursuant to contractual arrangements with our merchants, GNS partners, and other customers are classified as contra-revenue , except where we receive goods, serv ices or other benefits for which the fair value is determinable and measurable, in which case they are recorded as expense. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid, or written off. Interest and dividends on investment securities prima rily 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 other payments, so that a constant rate of return is r ecognized 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. Interest on deposits with banks and other is rec ognized 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 exp ense 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 r elates 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 realized impact of derivatives used to hedge interest r ate risk on our long-term debt. |
Expenses | Marketing and Business Development As further described below under “Recently Adopted Accounting Standards,” effective January 1, 2018, in conjunction with the adoption of the new revenue recognition standard, the previousl y disclosed “Marketing and p romotion” line on the Consolidated Statements of Income was changed to “Marketing and b usiness d evelopment” to reflect the inclusion of certain reclassified costs from c ontra-discount revenue and Other expenses. Marketing and bu siness development provides a more comprehensive view of costs related to building and growing our business, including the reclassified costs. Marketing and business development expense includes costs incurred in the development and initial placement of a dvertising, 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 qualifying charges on eligible card accounts, corporate incentive payme nts 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 record a Card Member rewards liability that represents the estima ted cost of points earned that are expected to be redeemed. Pursuant to cobrand agreements, we make payments to our cobrand partners based primarily on the amount of Card Member spending and corresponding rewards earned on such spending and, under certain arrangements, on the number of accounts acquired and retained. The partner is then liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program. 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 an increase or decrease to the Card Member rewards expense in the Consolidated Statemen t of Income . Effective January 1, 2018, in conjunction with the adoption of the new revenue recognition standard, Card Member rewards also includes cash-back rewards, which were reclassified from contra discount revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, and other highly liquid investments with original maturities of 90 days or less. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold impro vements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated usef ul lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at th e acquisition date. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and ranges from 5 to 10 years. We maintai n operating leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and includes adjustments for rent concessions, rent escalations and leasehold improvement allowances. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. |
Software Development Costs | Certain costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Premises and equipment. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. We review these assets for impairment using the same impairment methodology used for our intangible assets. |
Card Member and Other Receivables and Loans | Card Member and Other Loans Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolving amounts due on lending card products, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect t o revolve a portion of the outstanding balance by entering into a revolving payment arrangement with us . These loans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members, and in accordance with applicable regulations and the respective product’s terms and conditions. Card Members holding revolving loans are typically required to make monthly payments based on pre-established amounts and t he amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued interest and fees. Our policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserve s for interest that we believe will not be collected. Card Member and Other Receivables Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products. Each cha rge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit our maximum exposure . Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued fees. Impaired Card Member Loans and Receivables We consider impaired loans and receivables to include: (i) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receivables modi fied as troubled debt restructurings (TDRs). Reserves for Ca rd Member loans and receivables modified as TDRs are determined as the difference between the cash flows expected to be received fr om the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying value of the rela ted Card Member loan or receivables balance. We determine the original effective i nterest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are included in Provisions for losses in the Consolidated Statements of Income. |
Reserves for Losses | Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgment regarding the quantit ative components of the reserve. The models take into account several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the quantitative reserves for certain external and internal qualitative factors, which may increase or decrease the reserves for losses on Card Member loans and receivables. These external factors include employment, spend, sentiment, housing and c redit, and changes in the legal and regulatory environment, while the internal factors include increased risk in certain portfolios, impact of risk management initiatives, changes in underwriting requirements and overall process stability. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past due amounts, reserves as a percentage of Card Member loans or receivables, and net write-off coverage ratios. Card Member loans and re ceivables balances are written off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification . |
Investment Securities | Investment securities principally include available-for-sale debt securities carrie d at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. Investment sec urities also include equity securities carried at fair value on the Consolidated Balance Sheets. Effective January 1, 2018, the unrealized gains and losses on equity securities are recorded in the Consolidated Statements of Income; prior to January 1, 2018 , the unrealized gains and losses on equity securities were recorded in AOCI, net of income taxes. |
Asset Securitizations | We periodically securitize Card Member loans and receivables arising from our card businesses 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 Trusts then issue debt securities collateralized by the transferred assets to third-party investors. The Trusts are considered VIEs as the y have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. Refer to Note 1 for further details on the principles of consolidation. We perfo rm the servicing and key decision 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 receivables . In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. Thes e 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 siderati ons, we are the primary beneficiary of the Tru sts and therefore consolidate the Trusts. The debt securities issued by the Trusts are non-recourse to us . The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, resp ectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 3). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 9). |
Goodwill and Intangible Assets | Goodwill Goodwill represents the excess of acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. We allocate goodwill to our reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regularly reviewed by the operating segment manager. We evaluate goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of our reporting units below its carrying value. Prior to completing the assess ment of goodwill for impairment, we also perform a recoverability test of certain long-lived assets. We have the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of a repo rting unit is less than its carrying value. Alternatively, we can perform a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market consid erations, cost factors, overall financial performance of the reporting unit and other company and reporting unit - specific events. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we t hen perform the impairment evaluation using the quantitative a ssessment . Under the quantitative assessment , t he first step identifies whether there is a potential impairment by comparing the fair value of a reporting unit to the carrying amount, includin g goodwill. If the carrying amount of a reporting unit exceeds the fair value, then a test is performed to determine the implied fair value of goodwill. An impairment loss is recognized based on the amount that the carrying amount of goodwill exceeds the i mplied fair value. When measuring the fair value of our reporting units in the quantitative assessment , we use widely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multip les). When preparing discounted cash flow models under the income approach, we use internal forecasts to estimate future cash flows expected to be generated by the reporting units. To discount these cash flows, we use the expected cost of equity, determine d by using a capital asset pricing model. We believe the discount rates used appropriately reflect the risks and uncertainties in the financial markets generally and specifically in our internally - developed forecasts. When using market multiples under the market approach, we apply comparable publicly traded companies’ multiples (e.g., earnings or revenues) to our reporting units’ actual results. For the year s ended December 31, 2018 and 2017, we performed a qualitative assessment in connection with our annual goodwill impairment evaluation and determined that it was more likely than not that the fair values of our reporting units exceeded their carrying values. Other Intangible Assets Intangible assets are amortized on a straight-line basis over t heir estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. |
Other Assets | We account for our tax credit investments, including Qualified Affordable Housing (QAH) investments, using th e equity method of accounting. |
Membership Rewards | Membership Rewards The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad range of rewards including travel, shopping, gift cards, and covering eligible charges . We record a balance sheet liability that represents management’s best estimate of the cost of points earned that are expected to be redeemed in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are key assumptions used to estimate the Membership Re wards liability. We use statistical and actuarial models to estimate the URR based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The expense for Membership Rewards points is included in Card Member rewards expense. We periodically evaluate our liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner contract changes and other factors. |
Stock-based Compensation | We recognize the cost of employee stock awards granted in exchange for employee services based on the grant-date fair value of the award, net of expected forfeitures. Those costs are recognized ratably over the vesting period. Effective January 1, 2017, we adopted new accountin g guidance for employee share-based payments and accordingly, income tax benefits related to stock option exercises were recognized in our Consolidated Statements of Income RSAs/RSUs are valued based on the stock price on the date of grant and contain either a) service conditions or b) both service and performance conditions. Certain employees are awarded PGs and other incent ive awards that can be settled with cash or equity shares at our discretion, and final Compensation and Benefits Committee payout approval. These awards earn value based on performance, market and/or service conditions, and vest over periods of one to thre e years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. |
Retirement Plans | We re cognize the funded status of our defined benefit pension plans and other postretirement bene fit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the Consolidated Balance Sheets. |
Legal Contingencies | We have accrued for certain of our outstanding legal proceedings. A n accrual is recorded when it i s both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual . We evaluate , on a quarterly basis, developments in legal proceedings that could ca use an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. |
Derivatives Financial Instruments and Hedging Activities | We use derivative financial instruments 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 an equity index or price, and are carried at fair value on the Consolidated Balance Sheets. Our derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. We formally assess, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, we will discontinue the application of hedge accounting. Gains or losses on the fair value hedging instrument principally offset the loss es or gain s on the hedged item attributable to the hedged risk. 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. We primarily designate foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. We ha ve derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes . Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, prima rily foreign exchange forwards . These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified date. We also ha ve certain operating agreements containing payments that may be linked to a market rate or price, primarily foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in which case the embe dded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exch ange gains or losses of the underlying foreign currency exposures. |
Fair Value Measurements | We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly. |
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. |
Income Tax Uncertainties | The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authorit y given the facts, circumstances and information available at the reporting date. We adjust the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. |
Income Taxes | The Tax Act, enacted by the U.S. government on December 22, 2017, made broad and complex changes to the U.S. tax code which required time to interpret. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118) in December, 2017, to provide guidance on accounting for the effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the Tax Act enactment date for companies to complete their assessment of and accounting for those effects of the Tax A ct required under ASC 740 “Implementation Guidance on Accounting for Uncertainty in Income Taxes” to be reported in the period of enactment. Under SAB 118, a company must first reflect the income tax effects of the Tax Act for which the accounting is comp lete in the period of the date of enactment. To the extent the accounting for other income tax effects is incomplete, but a reasonable estimate can be determined, companies must record a provisional estimate to be included in their financial statements. F or any income tax effect for which a reasonable estimate cannot be determined, an entity must continue to apply ASC 740 based on the provisions of the tax laws in effect immediately prior to the Tax Act being enacted until such time as a reasonable estimat e can be determined. We record a deferred income tax (benefit) provision when there are differences between assets and liabilities measu red for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such diffe rences are expected to r everse. In particular, the 2017 balances were reduced to reflect the r emeasurement of certain f ederal net deferred tax assets due to the enacted lower federal tax rate of 21 percent . A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances as of December 31, 2018 and 2017 are associated with net operating losses and other deferred tax assets in certain no n-U.S. operations . Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. |
Regulatory Matters And Capital Adequacy [Policy Text Block] | Restricted Net Assets of Subsidiaries Certain of our subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on our shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. Bank Holding Company Dividend Restrictions We are limited in our ability to pay dividends by the Fede ral Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net in come available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank ho lding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and mainta in a capital plan, which includes planned dividends over a two-year horizon. We may be limited in our ability to pay dividends if the Federal Reserve objects to our capital plan. Bank D ividend Restrictions AENB is limited in its ability to pay dividends by banking statutes, regulations an d supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as A ENB , from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy standards. A ENB must maintain a capital conservation buffer (and countercyclical bu ff er if in effect). I f AENB ’ s risk-based capital ratios do not satisfy minimum requirements plus the combined capital conservation buffer (and the countercyclical capi tal buffer, if applicable), it will face graduated constraints on dividends and other capit al distributions based on the amount of the shortfall. In determ ining the dividends to pay its parent, AENB must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory a gencies. In addition, AENB’s banking regulators have authority to limit or prohibit the pa yment of a dividend by AENB under a number o f circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Segment Reporting | We consider a combination of factors when evaluating the composition of our reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, pro duct distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. Total Revenues Net of Interest Expense We allocate discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the GCSG and GCS segments, discount revenue generally reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue. Net card fees and other fees and commissions are directly attributa ble to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segmen t funding requirements and internal funding rates. Provisions for Losses The provisions for losses are directly attributable to the segment in which they are reported. Expenses Marketing and business development expense is included in each segment based on the actual expenses incurred. Global brand advertising is primarily reflected in Corporate & Other and may be allocated to the segments based on the actual expense incurred . Rewards and Card Member services expense s are included in each segment based on the actual expenses incurred within the segment. Salaries and employee benefits and other operating expense s reflect expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, exp enses related to support services, such as technology costs, are allocated to each segment primarily based on support service activities directly attributable to the segment. Certain other overhead expenses are allocated fro m Corporate & Other to the segments based on the relative levels of revenue and Card Member loans and receivables . Income Taxes An income tax provision (benefit ) is allocated to each reportable operating segment based on the effective tax rates applicable to various businesses that comprise the segment. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Revenue Recognition Standard Impact [Text Block] | The impact to the 2017 fiscal quarters and years ended December 31, 2017 and 2016 were as follo ws: 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) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Card Member receivables segment detail | Card Member accounts receivable by seg ment and Other receivables as of December 31, 2018 and 2017 consisted of: (Millions) 2018 2017 Global Consumer Services Group (a) $ 21,455 $ 20,946 Global Commercial Services 34,438 33,101 Card Member receivables 55,893 54,047 Less: Reserve for losses 573 521 Card Member receivables, net $ 55,320 $ 53,526 Other receivables, net (b) $ 2,907 $ 3,209 Includes $ 8.5 billion and $ 8.9 billion of gross Card Member receivables available to settle obligati ons of a consolidated VIE as of both December 31, 2018 and 2017 , respectively . Other receivables primarily represent amounts related to (i ) GNS partners 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. Othe r receivables are presented net of reserves for losses of $ 25 million and $ 31 million as of December 31, 2018 and 2017 , respectively. |
Card Member loans segment detail | Card Member loans by segment and Other loans as of December 31, 2018 and 2017 consisted of: (Millions) 2018 2017 Global Consumer Services Group (a) $ 69,458 $ 62,319 Global Commercial Services 12,396 11,080 Card Member loans 81,854 73,399 Less: Reserve for losses 2,134 1,706 Card Member loans, net $ 79,720 $ 71,693 Other loans, net (b) $ 3,676 $ 2,607 Includes approximately $ 33.2 billion and $ 25.7 billion of gross Card Member loans available to settl e obligations of a consolidated VIE as of December 31, 2018 and 2017 , respectively. The balance as of December 31 , 2018 also includes loans related to the acquired Hilton portfolio (refer to Note 2). Other loans primarily represent consumer and commercial non-card financing products. Other loans are presented net of reserves for losses of $ 124 million and $ 80 million as of December 31 , 2018 and 2017 , respectively. |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of December 31, 2018 and 2017 : 2018 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: Global Consumer Services Group $ 68,442 $ 290 $ 220 $ 506 $ 69,458 Global Commercial Services Global Small Business Services 12,195 51 32 73 12,351 Global Corporate Payments (a) (b) (b) (b) ― 45 Card Member Receivables: Global Consumer Services Group 21,207 80 50 118 21,455 Global Commercial Services Global Small Business Services $ 16,460 $ 101 $ 53 $ 114 $ 16,728 Global Corporate Payments (a) (b) (b) (b) $ 129 $ 17,710 2017 (Millions) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Card Member Loans: Global Consumer Services Group $ 61,491 $ 238 $ 190 $ 400 $ 62,319 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: Global Consumer Services Group 20,696 82 54 114 20,946 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 GCS, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). Delinquency data for periods other than 90 + days past billing is not available due to system constraints. Therefore, such data has not been uti lized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. |
Credit quality indicators for loans and receivables | The following tables present the key credit quality indicators as of or for the years ended December 31: 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: Global Consumer Services Group 2.1 % 2.5 % 1.5 % 1.8 % 2.2 % 1.3 % Global Small Business Services 1.7 % 2.0 % 1.3 % 1.6 % 1.9 % 1.2 % Card Member Receivables: Global Consumer Services Group 1.6 % 1.8 % 1.2 % 1.5 % 1.7 % 1.2 % Global Small Business Services 1.7 % 2.0 % 1.6 % 1.6 % 1.8 % 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 0.11 % 0.7 % 0.10 % 0.9 % 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 our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented. |
Impaired Card Member loans and receivables | The following tables provide additional information with respect to our impaired Card Member loans and receivables as of December 31, 2018, 2017 and 2016. As of December 31, 2018 Accounts Classified as a TDR (c) (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: Global Consumer Services Group (f) $ 344 $ 236 $ 313 $ 131 $ 1,024 $ 923 $ 80 Global Commercial Services 43 43 59 29 174 161 14 Card Member Receivables: Global Consumer Services Group ― ― 29 13 42 42 2 Global Commercial Services ― ― 61 25 86 86 5 Total $ 387 $ 279 $ 462 $ 198 $ 1,326 $ 1,212 $ 101 As of December 31, 2017 Accounts Classified as a TDR (c) (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: Global Consumer Services Group (f) $ 289 $ 168 $ 178 $ 131 $ 766 $ 694 $ 49 Global Commercial Services 38 31 31 27 127 118 8 Card Member Receivables: Global Consumer Services Group ― ― 15 9 24 24 1 Global Commercial Services ― ― 37 19 56 56 2 Total $ 327 $ 199 $ 261 $ 186 $ 973 $ 892 $ 60 As of December 31, 2016 Accounts Classified as a TDR (c) (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Unpaid Principal Balance Allowance for TDRs Card Member Loans: Global Consumer Services Group (f) $ 230 $ 139 $ 165 $ 129 $ 663 $ 609 $ 51 Global Commercial Services 30 30 26 26 112 103 9 Card Member Receivables: Global Consumer Services Group ― ― 11 6 17 17 7 Global Commercial Services ― ― 28 10 38 38 21 Total $ 260 $ 169 $ 230 $ 171 $ 830 $ 767 $ 88 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 agencies for which we have ceased accruing interest. Amounts presented exclude Card Member loans classified as a TDR. Accounts classified as a TDR include $17 million, $15 million and $20 million that are over 90 days past due and accruing interest and $6 million, $5 million and $11 million that are non-accruals as of December 31, 201 8 , 201 7 and 201 6 , respectively. In Program TDRs include Card Mem ber accounts that are currently enrolled in a modification program. Out of Program T DRs include $148 million, $141 million and $132 million of Card Member accounts that have successfully complete d a modification program and $50 million, $45 million and $3 9 million of Card Member accounts that were not in compliance with the terms of the modification programs as of December 31, 2018, 2017 and 2016, respectively. GCSG includes balances outside the U.S. of $69 million, $56 million and $52 million that are over 90 da ys and accruing interest and $68 million, $55 million and $51 million in unpaid principal as of December 31, 2018, 2017 and 2016 , 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 teres t income recognized from i mpaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: 2018 (Millions) Average Balance Interest Income Recognized Card Member Loans: Global Consumer Services Group $ 878 $ 109 Global Commercial Services 150 21 Card Member Receivables: Global Consumer Services Group 33 ― Global Commercial Services 73 ― Total $ 1,134 130 Interest Income 2017 (Millions) Average Balance Recognized Card Member Loans: Global Consumer Services Group $ 699 $ 85 Global Commercial Services 120 17 Card Member Receivables: Global Consumer Services Group 20 ― Global Commercial Services 45 ― Total $ 884 $ 102 Interest Income 2016 (Millions) Average Balance Recognized Card Member Loans: Global Consumer Services Group $ 612 $ 68 Global Commercial Services 103 13 Card Member Receivables: Global Consumer Services Group 14 ― Global Commercial Services 28 ― Total $ 757 $ 81 |
Troubled debt restructurings | The following table provides additional information with respect to Card Member loans and receivables m odified as TDRs for the years ended December 31 : 2018 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 51 $ 377 12 (b) Card Member Receivables 6 110 (c) 28 Total 57 $ 487 2017 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 33 $ 224 10 (b) Card Member Receivables 6 83 (c) 28 Total 39 $ 307 2016 Number of Accounts (in thousands) Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction (% points) Average Payment Term Extensions (# of months) Troubled Debt Restructurings: Card Member Loans 31 $ 220 9 (b) Card Member Receivables 9 123 (c) 18 Total 40 $ 343 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 following table provides information with respect to Ca rd Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification for the years ended December 31, 2018 , 2017 and 2016 . A Card Member is considered in default of a modification program af ter one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is facto red into the reserves for Card Member loans and receivables. Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2018 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 8 $ 46 Card Member Receivables 4 11 Total 12 $ 57 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2017 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 6 $ 39 Card Member Receivables 3 7 Total 9 $ 46 Number of Accounts Aggregated Outstanding Balances Upon Default (a) 2016 (thousands) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 7 $ 41 Card Member Receivables 3 4 Total 10 $ 45 The outstanding balances upon default include principal, fees and accrued interest on Card Member loans, and principal and fees on Card Member receivables. |
Reserves For Losses (Tables)
Reserves For Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31: (Millions) 2018 2017 2016 Balance, January 1 $ 521 $ 467 $ 462 Provisions (a) 937 795 696 Net write-offs (b) (859) (736) (674) Other (c) (26) (5) (17) Balance, December 31 $ 573 $ 521 $ 467 Provisions for principal and fee reserve components. Net write-offs are presented less recoveries of $ 367 million, $ 366 million and $ 394 million for the years ended December 31, 2018, 2017 and 2016, respectively. Amounts include net recoveries ( write-offs ) from TDRs of nil , $ 2 million and $ (16) million, for the years ended December 31, 2018 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ (6) million, $ 12 million and $ (12) million , and other adjustments of $ (20) million, $ (17) million and $ (5) million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of December 31: (Millions) 2018 2017 2016 Card Member receivables evaluated individually for impairment (a) $ 128 $ 80 $ 55 Related reserves (a) $ 7 $ 3 $ 28 Card Member receivables evaluated collectively for impairment $ 55,765 $ 53,967 $ 47,253 Related reserves (b) $ 566 $ 518 $ 439 Represents receivables modified as a TDR and related reserves. The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the years ended December 31: (Millions) 2018 2017 2016 Balance, January 1 $ 1,706 $ 1,223 $ 1,028 Provisions (a) 2,266 1,868 1,235 Net write-offs (b) Principal (1,539) (1,181) (930) Interest and fees (304) (227) (175) Other (c) 5 23 65 Balance, December 31 $ 2,134 $ 1,706 $ 1,223 Provisions for principal, interest and fee reserve components. P rincipal write-offs are presented less recoveries of $ 444 million, $ 409 million and $ 379 million for the years ended December 31, 2018, 2017 and 2016, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(33) million, $ (30) million and $ (34) million, for the years ended December 31, 2018 , 2017 and 2016 , respectively. Includes foreign currency translation adjustments of $ (11) million, $ 8 million and $ (10) million , and other adjustments of $ 16 million, $ 15 million and $ 8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The year ended December 31, 2016 include d reserves of $67 million associated with $265 million of retained Card Member loans reclassified from HFS to held for i nvestment as a result of retaining certain loans in connection with the respective sales of JetBlue and Costco cobrand card portfolios. |
Card Member loans and related reserves evaluated separately and collectively for impairment | The following table presents Card Member loan s evaluated individually and collectively for impairment and related reserves as of December 31: (Millions) 2018 2017 2016 Card Member loans evaluated individually for impairment (a) $ 532 $ 367 $ 346 Related reserves (a) $ 94 $ 57 $ 60 Card Member loans evaluated collectively for impairment (b) $ 81,322 $ 73,032 $ 64,919 Related reserves (b) $ 2,040 $ 1,649 $ 1,163 Represents loans modified as a TDR and related reserves. Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment secu rities as of December 31: 2018 2017 2016 Description of Securities (Millions) Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale debt securities: State and municipal obligations $ 594 $ 4 $ (2) $ 596 $ 1,369 $ 11 $ (3) $ 1,377 $ 2,019 $ 28 $ (11) $ 2,036 U.S. Government agency obligations 10 ― ― 10 11 ― ― 11 12 ― ― 12 U.S. Government treasury obligations 3,452 5 (17) 3,440 1,051 3 (9) 1,045 465 3 (8) 460 Corporate debt securities 28 ― ― 28 28 ― ― 28 19 ― ― 19 Mortgage-backed securities (a) 50 1 ― 51 67 2 ― 69 92 3 ― 95 Foreign government bonds and obligations 474 ― ― 474 581 ― ― 581 486 1 (1) 486 Equity securities (b) 51 ― (3) 48 51 ― (3) 48 51 ― (2) 49 Total $ 4,659 $ 10 $ (22) $ 4,647 $ 3,158 $ 16 $ (15) $ 3,159 $ 3,144 $ 35 $ (22) $ 3,157 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 investment securities with gross unrealized losses and the length of time that individual securities have been in a n unrealized loss position as of December 31: 2018 2017 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses State and municipal obligations $ ― $ ― $ 82 $ (1) $ 157 $ (3) $ ― $ ― U.S. Government treasury obligations 224 (2) 791 (15) 650 (3) 175 (6) Equity securities (a) (a) (a) (a) ― ― 36 (2) Total $ 224 $ (2) $ 873 $ (16) $ 807 $ (6) $ 211 $ (8) Effective January 1, 2018, the unrealized gains and losses on 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 December 31: Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses 2018: 90%–100% 2 $ 224 $ (2) 29 $ 873 $ (16) 31 $ 1,097 $ (18) Total as of December 31, 2018 2 $ 224 $ (2) 29 $ 873 $ (16) 31 $ 1,097 $ (18) 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 | Weighted averag e yields and contractual maturities for investment securities with stated maturities as of December 31, 2018 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ 13 $ 47 $ 66 $ 470 $ 596 U.S. Government agency obligations ― ― ― 10 10 U.S. Government treasury obligations 1,773 1,534 131 2 3,440 Corporate debt securities 2 26 ― ― 28 Mortgage-backed securities (a) ― ― ― 51 51 Foreign government bonds and obligations 474 ― ― ― 474 Total Estimated Fair Value $ 2,262 $ 1,607 $ 197 $ 533 $ 4,599 Total Cost $ 2,261 $ 1,617 $ 199 $ 531 $ 4,608 Weighted average yields (b) 2.81 % 2.15 % 3.49 % 3.53 % 2.69 % The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent. |
Asset Securitizations (Tables)
Asset Securitizations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Restricted cash held by trusts | The following table provides information on the restricted cash held by the Trusts as of December 31, 2018 and 2017 , included in Other assets on the Consolidated Balance Sheets: (Millions) 2018 2017 Lending Trust $ 67 $ 55 Charge Trust 3 7 Total $ 70 $ 62 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Other assets | The following is a summary of Other assets as of December 31: (Millions) 2018 2017 Goodwill $ 3,072 $ 3,009 Deferred tax assets, net (a) 1,480 1,637 Prepaid expenses (b) 1,458 684 Tax credit investments 1,043 1,023 Derivative assets (a) 396 124 Restricted cash (c) 363 336 Other intangible assets, at amortized cost (b) 275 899 Other 2,384 2,034 Total $ 10,471 $ 9,746 Refer to Notes 14 and 21 for a disc ussion of derivative assets and deferred tax assets, net. For 2018 and 2017 , $174 million and $98 million, respectively, of foreign deferred tax liabilities is reflected in Other liabilities. Derivative assets reflect the impact of master netting agreements and cash collateral . As of September 30, 2018, $796 million of net assets previously included within Other intangible assets were reclassified to Prepaid expenses. Includes restricted cash available to sett le obligations related to certain Card Member credit balances and customer deposits, as well as coupon and maturity obligations of consolidated VIEs. |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows: (Millions) GCSG GCS GMNS Total Balance as of December 31, 2016 $ 590 $ 1,711 $ 626 $ 2,927 Acquisitions 19 ― ― 19 Dispositions ― ― ― ― Other (a) 28 13 22 63 Balance as of December 31, 2017 $ 637 $ 1,724 $ 648 $ 3,009 Acquisitions 90 ― ― 90 Dispositions ― ― ― ― Other (a) (20) (6) (1) (27) Balance as of December 31, 2018 $ 707 $ 1,718 $ 647 $ 3,072 Primarily includes foreign currency translation. |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Deposits By Component Alternative | As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2018 2017 U.S.: Interest-bearing $ 69,144 $ 63,666 Non-interest-bearing (includes Card Member credit balances of: 2018, $376 million; 2017, $358 million) 412 395 Non-U.S.: Interest-bearing 28 34 Non-interest-bearing (includes Card Member credit balances of: 2018, $367 million; 2017, $344 million) 376 357 Total customer deposits $ 69,960 $ 64,452 |
Deposits By Type | Customer deposits by deposit type as of December 31 were as follows: (Millions) 2018 2017 U.S. retail deposits: Savings accounts ― Direct $ 39,491 $ 31,915 Certificates of deposit: (a) Direct 817 290 Third-party (brokered) 12,667 16,684 Sweep accounts ―Third-party (brokered) 16,169 14,777 Other deposits: U.S. non-interest bearing deposits 36 37 Non-U.S. deposits 37 47 Card Member credit balances ― U.S. and non-U.S. 743 702 Total customer deposits $ 69,960 $ 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 47 months and 2.38 percent, respectively, as of December 31, 2018 . |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of December 31, 2018 were as follows: (Millions) U.S. Non-U.S. Total 2019 $ 4,730 $ 18 $ 4,748 2020 4,290 ― 4,290 2021 1,869 ― 1,869 2022 2,278 ― 2,278 2023 317 ― 317 After 5 years ― ― ― Total $ 13,484 $ 18 $ 13,502 |
Time Deposits $250,000 Or More | As of December 31, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2018 2017 U.S. $ 276 $ 114 Non-U.S. 9 11 Total $ 285 $ 125 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Short-term borrowings | Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2018 2017 (Millions, except percentages) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Commercial paper (b) $ 752 2.71 % $ 1,168 1.54 % Other short-term borrowings (c) 2,348 1.94 2,110 2.34 Total $ 3,100 2.13 % $ 3,278 2.05 % For floating-rate issuances, the stated interest rates are we ighted based on the outstanding principal balances and interest rates in effect as of December 31, 2018 and 2017 . Average commercial paper outstanding was $ 228 million and $ 1,076 million in 2018 and 2017 , respectively. Primarily includes book overdrafts with banks due to timing differences arising in the ordinary course of business. |
Long-term debt | Our long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2018 2017 (Millions, except percentages) Original Contractual Maturity Dates Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) American Express Company (Parent Company only) Fixed Rate Senior Notes 2019 - 2042 $ 14,043 3.48 % 3.64 % $ 10,377 3.85 % 3.17 % Floating Rate Senior Notes 2020 - 2023 3,600 3.17 1,750 1.93 ― Subordinated Notes 2024 598 3.63 3.66 598 3.63 2.66 American Express Credit Corporation Fixed Rate Senior Notes 2019 - 2027 16,677 2.28 3.06 19,652 2.24 2.27 Floating Rate Senior Notes 2019 - 2022 3,800 3.31 ― 4,550 2.09 ― American Express National Bank (d) Floating Rate Senior Notes ― ― ― 125 1.89 ― American Express Lending Trust Fixed Rate Senior Notes 2019 - 2023 12,474 2.28 ― 8,099 1.90 ― Floating Rate Senior Notes 2019 - 2023 5,125 2.80 ― 5,800 2.03 ― Fixed Rate Subordinated Notes 2020 - 2022 240 2.37 ― 206 2.21 ― Floating Rate Subordinated Notes 2019 - 2023 167 2.96 ― 192 2.05 ― American Express Charge Trust II Floating Rate Senior Notes 2020 1,535 2.89 ― 4,200 1.79 ― Floating Rate Subordinated Notes ― ― ― 87 2.11 ― Other Capitalized Leases 2021 - 2033 19 5.54 ― 23 5.59 ― Floating Rate Borrowings 2019 - 2021 262 0.42 ― % 256 0.42 ― % Unamortized Underwriting Fees (117) (111) Total Long-Term Debt $ 58,423 2.77 % $ 55,804 2.44 % The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. R efer to Note 14 for more details on our treatment of fair value hedges. For floating-rate issuances, the stated interest rate on debt is weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2018 and 2017 . I nterest rates with swaps are only presented when swaps are in pla ce to hedge the underlying debt. The interest rates with swaps are weighted based on the outstanding principal balances a nd the interest rates on the floating leg of the swaps in effect as of December 31, 2018 and 2017. 2017 balances are those of American Express Centurion Bank prior to the merger of two former bank entities into a new single bank entity effective April 1, 2 018. As of December 31, 2017, American Express Centurion Bank was the only legacy entity of American Express National Bank (AENB) to have debt securities outstanding . |
Aggregate annual maturities on long-term debt obligations | Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2018 were as follows: (Millions) 2019 2020 2021 2022 2023 Thereafter Total American Express Company (Parent Company only) $ 641 $ 2,000 $ 4,250 $ 3,525 $ 4,350 $ 4,273 $ 19,039 American Express Credit Corporation 7,150 6,600 2,890 2,050 ― 2,000 20,690 American Express Lending Trust 3,488 6,924 2,909 2,001 2,685 ― 18,007 American Express Charge Trust II ― 1,535 ― ― ― ― 1,535 Other 36 90 144 ― ― 11 281 $ 11,315 $ 17,149 $ 10,193 $ 7,576 $ 7,035 $ 6,284 $ 59,552 Unamortized Underwriting Fees (117) Unamortized Discount and Premium (771) Impacts due to Fair Value Hedge Accounting (241) Total Long-Term Debt $ 58,423 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Summary of other liabilities | The following is a summary of Other liabilities as of December 31: (Millions) 2018 2017 Membership Rewards liability $ 8,414 $ 7,751 Employee-related liabilities (a) 2,164 2,277 Deferred card and other fees, net 1,759 1,554 Repatriation tax liability (b) 1,689 1,703 Card Member rebate and reward accruals (c) 1,596 1,564 Book overdraft balances 1,028 2,837 Other (d) 3,629 4,503 Total $ 20,279 $ 22,189 Employee-related liabilities include employee benefit plan obligations and incentive compensation. Refer to Note 21 for additional information. Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. Other includes accruals for general operating expenses, client incentives, merchant rebates, payments to third-party ca rd-issuing partners, marketing and business development , restructuring and reengineering reserves, QAH unfunded commitments and derivati ves. |
Carrying amount of deferred charge card and other fees | The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations as of December 31, was as follows: (Millions) 2018 2017 Deferred card and other fees (a) $ 2,208 $ 1,996 Deferred direct acquisition costs (282) (280) Reserves for membership cancellations (167) (162) Deferred card and other fees, net $ 1,759 $ 1,554 Includes deferred fees for Membership Rewards program participants. |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Summary of Stock Option and RSA Activity | A summary of stock option and RSA /RSU activity as of December 31, 2018 , and changes during the year , is presented below: Stock Options RSAs/RSUs (Shares in thousands) Shares Weighted-Average Exercise Price Shares Weighted- Average Grant Price Outstanding as of December 31, 2017 7,262 $ 58.92 7,215 $ 70.29 Granted 282 98.47 2,221 98.20 Exercised/vested (1,844) 46.95 (2,407) 77.41 Forfeited (216) 65.36 (463) 78.80 Expired ― ― ― ― Outstanding as of December 31, 2018 5,484 64.73 6,566 $ 76.52 Options vested and expected to vest as of December 31, 2018 5,473 64.73 Options exercisable as of December 31, 2018 3,230 $ 57.04 |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | The weighte d-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock exceeds the exercise price of the option) of the stock options outstanding, exercisable, vested, and expected to ve st as of December 31, 2018 , we re as follows: Outstanding Exercisable Vested and Expected to Vest Weighted-average remaining contractual life (in years) 5.6 4.0 5.6 Aggregate intrinsic value (millions) $ 169 $ 124 $ 168 |
Weighted Average Assumptions Used | The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2018 , 2017 and 2016 : 2018 2017 2016 Dividend yield 1.4 % 1.8 % 1.9 % Expected volatility (a) 22 % 24 % 25 % Risk-free interest rate 2.7 % 2.3 % 1.5 % Expected life of stock option ( in years ) (b) 7.1 6.9 6.3 Weighted-average fair value per option $ 23.17 $ 18.18 $ 13.67 The expected volatility is based on both weighted historical and implied volatilities of our common stock price. The expected life of stock options was determined using both historical data and expectations of option exercise behavior. |
Special Stock Option Assumptions [Text Block] | On October 31, 2017, certain senior executives were awarded stock options with a term of seven years, and include a three-year service condition, as well as performance and market conditions. Therefore, the fair values of these options were estimated at the g rant date using a Monte Carlo Valuation model with the following assumptions: October 31, 2017 Dividend yield 1.58 % Expected volatility (a) 21.41 % Risk-free interest rate 2.26 % Expected life of stock option ( in years ) 7 Fair value per option $ 19.18 The expected volatility is based on both weighted historical and implied volatilities of our common stock price. |
Summary of Stock Plan Expenses | The components of our total stock-based compensation expense (net of forfeitures) for the years ended December 31 are as follows: (Millions) 2018 2017 2016 Restricted stock awards (a) $ 181 $ 170 $ 178 Stock options (a) 19 21 14 Liability-based awards 88 92 60 Total stock-based compensation expense (b) $ 288 $ 283 $ 252 As of December 31, 2018 , the total unrecognized compensation cost related to unvested RSAs /RSUs and options of $ 179 million and $ 12 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 2.1 years and 1.6 years, respectively . The total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation arrangements for the years ended December 31, 2018 , 2017 and 2016 was $ 69 million, $ 102 million and $ 89 million, respectively. |
Commitments and Contigencies (T
Commitments and Contigencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Minimum aggregate rental commitment under noncancelable operating leases | As of December 31, 2018 , the minimum aggregate rental commitment under all non-cancelable operating leases (net of subleases of $ 14 million) was as follows: (Millions) 2019 $ 140 2020 118 2021 95 2022 78 2023 65 Thereafter 832 Total $ 1,328 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Fair Value Other Liabilities Fair Value (Millions) 2018 2017 2018 2017 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 34 $ 11 $ 74 $ 34 Net investment hedges - Foreign exchange contracts 222 117 61 89 Total derivatives designated as hedging instruments 256 128 135 123 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives (b) 258 82 79 95 Total derivatives, gross 514 210 214 218 Less: Cash collateral netting (c) (d) (28) (6) (78) (45) Derivative asset and derivative liability netting (e) (90) (80) (90) (80) Total derivatives, net $ 396 $ 124 $ 46 $ 93 For our centrally cleared derivatives, variation margin payments are legally characterized as settlement pay ments as opposed to collateral. Includes foreign currency derivatives embedded in certain operating agreements . Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign excha nge contracts with the right to cash collateral held from the counter party or cash collateral posted with the counter party . We posted $84 million and $146 million as of Decembe r 31, 2018 and 2017 , resp ectively, 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 derivative assets and derivative liabilities exe cuted with the same counterparty under an enforceable master netting arrangement. |
Effect of fair value hedges on results of operations | The following table presents the gains and losses associated with the fair value hedges of our fixed-rate long-term debt for the year s ended December 31: Gains (losses) (Millions) 2018 2017 2016 Interest expense (a) Other expenses Other expenses Fixed-rate long-term debt $ 59 $ 206 $ 163 Derivatives designated as hedging instruments (43) (246) (184) Total $ 16 $ (40) $ (21) 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) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [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 described in the preceding paragraphs), as of December 31 : 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 4,599 ― 4,599 ― 3,111 1,045 2,066 ― Derivatives, gross (a) 514 ― 514 ― 210 ― 210 ― Total Assets 5,161 1 5,160 ― 3,369 1,046 2,323 ― Liabilities: Derivatives, gross (a) 214 ― 214 ― 218 ― 218 ― Total Liabilities $ 214 $ ― $ 214 $ ― $ 218 ― 218 ― Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated basis. The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy (as described in the preceding paragraphs), as of December 31: Refer to Note 5 for the fair values of investment securities and to Note 14 for the fair values of derivative assets and liabilities, on a further disaggregated basis. |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fair values of 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 December 31, 2018 and 2017 . The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2018 and 2017 , and require management’s judgment. These figu res may not be indicative of future fair values, nor can our fair value 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) $ 27 $ 27 $ 26 $ 1 $ ― Other financial assets (b) 58 58 ― 58 ― Financial assets carried at other than fair value Loans, net (c) 83 84 ― ― 84 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 81 81 ― 81 ― Financial liabilities carried at other than fair value Certificates of deposit (d) 13 13 ― 13 ― Long-term debt (c) $ 58 $ 59 $ ― $ 59 $ ― 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 $ 8.5 billion and $ 8.9 billion held by a consolidated VIE as of December 31, 2018 and 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 $ 33.0 billion and $ 25.6 billion as of Dece mber 31, 2018 and 2017 , respectively, and the fair values of L ong-term debt were $ 19.4 billion and $ 18.6 billion as of December 31, 2018 and 2017 , respectively. Presented as a component of C ustomer deposits on the Consolidated B alance Sheets. |
Common and Preferred Shares a_2
Common and Preferred Shares and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Authorized shares and a reconciliation of common shares issued and outstanding | The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2018 2017 2016 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 859 904 969 Repurchases of common shares (15) (50) (70) Other, primarily stock option exercises and restricted stock awards granted 3 5 5 Shares issued and outstanding as of December 31 847 859 904 Of the common shares authorized but unissued as of December 31, 2018 , approximately 24 million shares are reserved for issuance under employee stock and employee benefit plans. |
Perpetual Fixed Rate Noncumulative Preferred Shares issued and outstanding | We ha ve the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31, 2018 : Series B Series C Issuance date November 10, 2014 March 2, 2015 Securities issued 750 Preferred Shares; represented by 750,000 depositary shares 850 Preferred Shares; represented by 850,000 depositary shares Aggregate liquidation preference $750 million $850 million Fixed dividend rate per annum 5.20% 4.90% Semi-annual fixed dividend payment dates Beginning May 15, 2015 Beginning September 15, 2015 Floating dividend rate per annum 3 month LIBOR+ 3.428% 3 month LIBOR+ 3.285% Quarterly floating dividend payment dates Beginning February 15, 2020 Beginning June 15, 2020 Fixed to floating rate conversion date (a) November 15, 2019 March 15, 2020 The date on which dividends convert from a fixed-rate calculation to a floating rate calculation. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Components of comprehensive income (loss), net of tax | AOCI is a balance sheet item in Shareholders’ e quity on the Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows: (Millions) , net of tax Net Unrealized (Losses) Gains on Investment Securities Foreign Currency Translation Adjustment (Losses) Gains Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balances as of December 31, 2015 $ 58 $ (2,044) $ (548) $ (2,534) Net unrealized losses (45) ― ― (45) (Decrease) increase due to amounts reclassified into earnings (6) 4 ― (2) Net translation losses on investments in foreign operations ― (503) ― (503) Net gains related to hedges of investments in foreign operations ― 281 ― 281 Pension and other postretirement benefits ― ― 19 19 Net change in accumulated other comprehensive (loss) income (51) (218) 19 (250) Balances as of December 31, 2016 7 (2,262) (529) (2,784) Net unrealized losses (7) ― ― (7) Decrease due to amounts reclassified into earnings ― (7) ― (7) Net translation gains on investments in foreign operations (a) ― 678 ― 678 Net losses related to hedges of investments in foreign operations ― (370) ― (370) Pension and other postretirement benefits ― ― 62 62 Net change in accumulated other comprehensive (loss) income (7) 301 62 356 Balances as of December 31, 2017 ― (1,961) (467) (2,428) Net unrealized losses (10) ― ― (10) Net translation losses on investments in foreign operations ― (500) ― (500) Net gains related to hedges of investments in foreign operations ― 328 ― 328 Pension and other postretirement benefits ― ― 11 11 Other (b) 2 ― ― 2 Net change in accumulated other comprehensive (loss) income (8) (172) 11 (169) Balances as of December 31, 2018 $ (8) $ (2,133) $ (456) $ (2,597) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 21) . Represents unrealized gains 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 Disclosure Text Block | The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2018 2017 2016 Net unrealized investment securities $ (2) $ (4) $ (27) Net translation on investments in foreign operations (a) (44) (172) (15) Net hedges of investments in foreign operations 107 (215) 139 Pension and other postretirement benefits 9 7 37 Total tax impact $ 70 $ (384) $ 134 (a) Includes $289 mi llion of recognized tax benefits in the year ended December 31, 2017 (r efer to Note 21 ). |
Reclassification out of accumulated other comprehensive (loss) income | The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statements of Income for the years ended December 31 : Gains (losses) recognized in earnings Description (Millions) Income Statement Line Item 2018 2017 Foreign currency translation adjustments Reclassification of translation adjustments and related hedges Other expenses $ 1 $ (7) Related income tax Income tax provision (1) 14 Reclassification of foreign currency translation adjustments $ ― $ 7 |
Non-Interest Revenue and Expe_2
Non-Interest Revenue and Expense Detail (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Details of other commissions and fees | The following is a detail of Other fees and commissions for the years ended December 31: (Millions) 2018 2017 2016 Fees charged to Card Members: Delinquency fees $ 959 $ 888 $ 762 Foreign currency conversion fee revenue 921 851 809 Other customer fees: Loyalty coalition-related fees 461 452 409 Travel commissions and fees 395 364 332 Service fees and other (a) 417 435 406 Total Other fees and commissions $ 3,153 $ 2,990 $ 2,718 Other includes Membership Rewards program fees that are not related to contracts with customers . (Millions) 2016 2015 2014 Foreign currency conversion fee revenue $ - $ 852 $ 877 Delinquency fees - 788 722 Loyalty coalition-related fees - 379 383 Travel commissions and fees - 349 1,118 Service fees - 361 366 Other (a) - 137 160 Total Other fees and commissions $ - $ 2,866 $ 3,626 |
Details of other revenues | The following is a detail of Other revenues for the years ended December 31: (Millions) 2018 2017 2016 Global Network Services partner revenues $ 260 $ 327 $ 350 Other (a) 1,100 1,130 1,328 Total Other revenues $ 1,360 $ 1,457 $ 1,678 Other includes revenues arising from net revenue earned on cross-border Card Member spending, merchant-related fees, insurance premiums earned from Card Member travel and other insurance programs, revenues related to the GBT JV transition services agreement, prepaid card and Travelers Cheque-related revenues, earnings from equity method investments (including the GBT JV), and other miscellaneous revenue and fees . |
Detail of other, net expense | The following is a detail of Other expenses for the years ended December 31: (Millions) 2018 2017 2016 Professional services $ 2,125 $ 2,040 $ 2,508 Occupancy and equipment 2,033 2,018 1,837 Gain on sale of HFS portfolios (a) ― ― (1,218) Other (b) 1,513 1,576 1,815 Total Other expenses $ 5,671 $ 5,634 $ 4,942 Refer to Note 2 for additional information. Other expense inclu des general operating expenses, communication expenses, Card and merchant-related fraud losses, foreign cu rrency-related gains and losses , and gains on the sale of equity investments . For the year ended December 31, 2018, Other expense also includes the loss on a transaction involving the operations of our prepaid reloadable and gift card business and unrealized gains on certain equity investments previously carried at cost . For the year ended December 31, 2017, Other expense also includes charges related to our U.S. loyalty coalition and prepaid businesses . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2018 2017 2016 Current income tax expense: U.S. federal $ 70 $ 3,408 $ 2,180 U.S. state and local 150 259 272 Non-U.S. 681 387 340 Total current income tax expense 901 4,054 2,792 Deferred income tax (benefit) expense: U.S. federal 276 544 (63) U.S. state and local 78 (12) (10) Non-U.S. (54) 91 (52) Total deferred income tax (benefit) expense 300 623 (125) Total income tax expense $ 1,201 $ 4,677 $ 2,667 |
Effective income tax rate | A reconciliation of the U.S. federal statutory rate of 21 percent a s of December 31, 2018, and 35 percent as of both December 31 , 2017 and 2016, to our actual income tax rate on continuing operations was as follows: 2018 2017 2016 U.S. statutory federal income tax rate 21.0 % 35.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.7) (1.7) (1.7) State and local income taxes, net of federal benefit 2.8 2.3 2.7 Non-U.S. subsidiaries' earnings (a) (0.5) (5.7) (2.0) Tax settlements (b) (1.9) (0.7) (0.6) U.S. Tax Act (c) (1.1) 34.8 ― U.S. Tax Act - related adjustments (d) (3.2) ― ― Other (0.6) (1.0) (0.2) Actual tax rates 14.8 % 63.0 % 33.2 % Results for 2017 and 2016 primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were previously deemed to be reinvested indefinitely. In addition, 2017 included tax benefits of $156 million, which decreased the actual tax rate by 2.1 percent, related to the realization of certain foreign tax credits. R esults for 2018 relate to the settlement of the IRS examination for tax years 2008-2014, as well as the resolution of certain tax matters in various jurisdictions. Relates to the $2.6 billion provisional charge for the impacts of the Tax Act in 2017 and the adjustments thereto in 2018 . Relates to changes to the tax method of accounting for certain expenses. |
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2018 2017 Deferred tax assets: Reserves not yet deducted for tax purposes $ 2,612 $ 2,724 Employee compensation and benefits 360 403 Other 431 409 Gross deferred tax assets 3,403 3,536 Valuation allowance (61) (46) Deferred tax assets after valuation allowance 3,342 3,490 Deferred tax liabilities: Intangibles and fixed assets 1,083 1,057 Deferred revenue 435 306 Deferred interest 171 183 Investment in joint ventures 137 137 Other 210 269 Gross deferred tax liabilities 2,036 1,952 Net deferred tax assets $ 1,306 $ 1,538 |
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: (Millions) 2018 2017 2016 Balance, January 1 $ 821 $ 974 $ 870 Increases: Current year tax positions 152 200 167 Tax positions related to prior years 47 39 117 Decreases: Tax positions related to prior years (a) (74) (289) (81) Settlements with tax authorities (b) (192) (77) (76) Lapse of statute of limitations (44) (26) (22) Effects of foreign currency translations (9) ― (1) Balance, December 31 $ 701 $ 821 $ 974 Decrease in 2017 due to the resolution with the IRS of an uncertain tax position in January 2017, which resulted in the recognition of $289 million in AOCI. 2018 relates to the settlement of the IRS examination for tax years 2008-2014, as well as the resolution of certain tax matters in various jurisdictions. |
Earnings Per Common Share (EP_2
Earnings Per Common Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2018 2017 2016 Numerator: Basic and diluted: Net income $ 6,921 $ 2,748 $ 5,375 Preferred dividends (80) (81) (80) Net income available to common shareholders 6,841 2,667 5,295 Earnings allocated to participating share awards (a) (54) (21) (43) Net income attributable to common shareholders $ 6,787 $ 2,646 $ 5,252 Denominator: (a) Basic: Weighted-average common stock 856 883 933 Add: Weighted-average stock options (b) 3 3 2 Diluted 859 886 935 Basic EPS $ 7.93 $ 3.00 $ 5.63 Diluted EPS $ 7.91 $ 2.99 $ 5.61 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 unexercise d stock options excludes from the computation of EPS 0.7 million, 0.6 million and 2.4 million of options for the years ended December 31, 2018 , 2017 and 2016 , respectively, because inclusion of the options would h ave been anti-dilutive. |
Regulatory Matters and Capita_2
Regulatory Matters and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Regulatory capital ratios | The following table presents the regulatory capital ratios : (Millions, except percentages) CET 1 capital Tier 1 capital Total capital CET 1 Capital ratio Tier 1 capital ratio Total capital ratio Tier 1 leverage ratio Supplementary Leverage Ratio December 31, 2018: (a) American Express Company $ 17,498 $ 19,070 $ 21,653 11.0 % 12.0 % 13.6 % 10.4 % 8.9 % American Express National Bank $ 11,564 $ 11,564 $ 13,574 12.1 % 12.1 % 14.2 % 9.9 % 8.2 % December 31, 2017: (a) American Express Company $ 13,189 $ 14,721 $ 17,142 9.0 % 10.1 % 11.8 % 8.6 % (b) % American Express Centurion Bank $ 5,954 $ 5,954 $ 6,547 12.7 % 12.7 % 14.0 % 10.2 % (b) % American Express Bank, FSB $ 6,065 $ 6,065 $ 6,653 12.9 % 12.9 % 14.2 % 11.7 % (b) % Well-capitalized ratios (c) 6.5 % 8.0 % 10.0 % 5.0 % N/A Basel III Standards 2018 (d) 6.4 % 7.9 % 9.9 % 4.0 % 3.0 % Minimum capital ratios (e) 4.5 % 6.0 % 8.0 % 4.0 % 3.0 % As a Basel III advanced approaches institution in parallel run, capital ratios are reported using Basel III capital definitions, inclusive of transition provisions for the capital ratios and risk-weighted assets using the Basel III standardized approach. The minimum supplementary leverage ratio (SLR) requirement of 3 percent became effective January 1, 2018. Represents requirements for banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Deposit Insuran ce Corporation Improvement Act. There is no CET1 capital ratio, Tier 1 leverage ratio or SLR requirement for a bank holding company to be considered “well capitalized.” Basel III minimum capital requirement and additional transitional capital conservation buffer as defined by the Federal Reserve and OCC for calendar year 2018 for advanced approaches institutions. The additional capital conservation buffer does not apply to Tier 1 leverage ratio or SLR. As defined by the regulations issued b y the Federal Res erve and OCC. |
Significant Credit Concentrat_2
Significant Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Maximum credit exposure by category | The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2018 2017 On-balance sheet: Individuals (a) $ 123 $ 112 Institutions (b) 20 20 Financial Services (c) 30 35 U.S. Government and agencies (d) 4 3 Total on-balance sheet $ 177 $ 170 Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. Represents banks, broker-dealers, insurance companies and savings and loan associations. R epresent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. |
Card Member loans and receivables exposure | The following table details our Card Member loans and receivables exposure (including unused lines-of-credit available to Card Members as part of established lending product agreements ) in the United States and outside the United States as of December 31: (Billions) 2018 2017 On-balance sheet: U.S. $ 111 $ 102 Non-U.S. 27 25 On-balance sheet 138 127 Unused lines-of-credit: (a) U.S. 249 224 Non-U.S. 53 49 Total unused lines-of-credit $ 302 $ 273 Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Because our charge card products generally have no preset spending limit, the associated credit limit on charge products is not quantifiable, and therefore is not reflected in unused credit available to Card Members. |
Reportable Operating Segment (T
Reportable Operating Segment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [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 years ended December 31, 2018 , 2017 and 2016 : (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated 2018 Non-interest revenues $ 14,675 $ 11,882 $ 6,069 $ 49 $ 32,675 Revenue from contracts with customers (b) 10,294 10,309 5,988 16 26,607 Interest income 8,323 1,621 30 632 10,606 Interest expense 1,542 827 (294) 868 2,943 Total revenues net of interest expense 21,456 12,676 6,393 (187) 40,338 Total provisions 2,430 899 22 1 3,352 Pretax income (loss) from continuing operations 3,714 2,895 2,844 (1,331) 8,122 Income tax provision (benefit) 637 555 704 (695) 1,201 Net income (loss) 3,077 2,340 2,140 (636) 6,921 Total assets (billions) $ 151 $ 52 $ 45 $ (59) $ 189 2017 Non-interest revenues $ 13,378 $ 10,942 $ 6,025 $ 82 $ 30,427 Revenue from contracts with customers (b) 9,448 9,471 5,846 15 24,780 Interest income 6,789 1,361 42 371 8,563 Interest expense 1,047 595 (188) 658 2,112 Total revenues net of interest expense 19,120 11,708 6,255 (205) 36,878 Total provisions (b) 1,996 743 16 5 2,760 Pretax income (loss) from continuing operations 3,645 2,843 2,645 (1,708) 7,425 Income tax provision 1,053 914 857 1,853 4,677 Net income (loss) 2,592 1,929 1,788 (3,561) 2,748 Total assets (billions) $ 124 $ 49 $ 31 $ (23) $ 181 2016 Non-interest revenues $ 12,993 $ 10,373 $ 6,093 $ 200 $ 29,659 Revenue from contracts with customers (b) 9,386 8,918 5,826 105 24,235 Interest income 6,005 1,209 37 233 7,484 Interest expense 828 472 (133) 538 1,705 Total revenues net of interest expense 18,170 11,110 6,263 (105) 35,438 Total provisions (b) 1,390 604 24 9 2,027 Pretax income (loss) from continuing operations 4,508 2,933 2,391 (1,790) 8,042 Income tax provision (benefit) 1,469 1,032 861 (695) 2,667 Net income (loss) 3,039 1,901 1,530 (1,095) 5,375 Total assets (billions) $ 114 $ 43 $ 26 $ (24) $ 159 Corporate & Other includes adjustments and eliminations for intersegment activity. I ncludes discount revenue, certain other fees and commissions and other revenues from customers. |
Total revenues net of interest expense and pretax income | The following table presents our total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment : (Millions) United States EMEA (a) JAPA (a) LACC (a) Other Unallocated (b) Consolidated 2018 Total revenues net of interest expense $ 29,864 $ 4,419 $ 3,656 $ 2,584 $ (185) $ 40,338 Pretax income (loss) from continuing operations 6,696 1,212 764 782 (1,332) 8,122 2017 Total revenues net of interest expense $ 27,187 $ 3,927 $ 3,464 $ 2,505 $ (205) $ 36,878 Pretax income (loss) from continuing operations 6,412 1,150 763 806 (1,706) 7,425 2016 Total revenues net of interest expense $ 26,339 $ 3,570 $ 3,275 $ 2,360 $ (106) $ 35,438 Pretax income (loss) from continuing operations 7,943 698 556 635 (1,790) 8,042 EMEA represents Eur ope, the Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and the Caribbean. Other Unallocated includes net costs which are not directly allocable to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Table Text Block [Abstract] | |
Condensed Statements of Income | PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2018 2017 2016 Revenues Non-interest revenues Other $ 426 $ 358 $ 391 Total non-interest revenues 426 358 391 Interest income 422 258 196 Interest expense 615 493 515 Total revenues net of interest expense 233 123 72 Expenses Salaries and employee benefits 336 362 388 Other 607 553 510 Total expenses 943 915 898 Pretax loss (710) (792) (826) Income tax benefit (179) (354) (327) Net loss before equity in net income of subsidiaries and affiliates (531) (438) (499) Equity in net income of subsidiaries and affiliates 7,452 3,186 5,874 Net income $ 6,921 $ 2,748 $ 5,375 |
Condensed Balance Sheets | PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2018 2017 Assets Cash and cash equivalents $ 3,287 $ 4,726 Equity in net assets of subsidiaries and affiliates 22,298 18,225 Loans to subsidiaries and affiliates 17,945 11,664 Due from subsidiaries and affiliates 1,783 1,962 Other assets 297 361 Total assets 45,610 36,938 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 1,961 3,076 Due to subsidiaries and affiliates 577 175 Short-term debt of subsidiaries and affiliates 2,591 2,731 Long-term debt 18,191 12,695 Total liabilities 23,320 18,677 Shareholders’ Equity Total shareholders’ equity 22,290 18,261 Total liabilities and shareholders’ equity $ 45,610 $ 36,938 |
Condensed Cash Flows | PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2018 2017 2016 Cash Flows from Operating Activities Net income $ 6,921 $ 2,748 $ 5,375 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (7,452) (3,186) (5,870) Dividends received from subsidiaries and affiliates 3,222 5,755 4,999 Other operating activities, primarily with subsidiaries and affiliates (257) 659 (102) Net cash provided by operating activities 2,434 5,976 4,402 Cash Flows from Investing Activities Purchase of premises and equipment ― ― (1) Loans to subsidiaries and affiliates (6,281) (4,044) 4,142 Investments in subsidiaries and affiliates (30) ― (25) Net cash (used in) provided by investing activities (6,311) (4,044) 4,116 Cash Flows from Financing Activities Proceeds from long-term debt 9,350 5,900 ― Payments on long-term debt (3,850) (1,500) (1,350) Short-term debt of subsidiaries and affiliates (140) (1,313) (2,879) Issuance of American Express common shares and other 87 129 176 Repurchase of American Express common shares (1,685) (4,400) (4,430) Dividends paid (1,324) (1,251) (1,206) Net cash provided by (used in) financing activities 2,438 (2,435) (9,689) Net decrease in cash and cash equivalents (1,439) (503) (1,171) Cash and cash equivalents at beginning of year 4,726 5,229 6,400 Cash and cash equivalents at end of year $ 3,287 $ 4,726 $ 5,229 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quartertly Financial Data [Abstract] | |
Quarterly financial data | QUARTERLY FINANCIAL DATA (UNAUDITED ) (Millions, except per share amounts) 2018 2017 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 10,474 $ 10,144 $ 10,002 $ 9,718 $ 9,707 $ 9,290 $ 9,172 $ 8,709 Pretax income 1,831 2,118 2,091 2,082 1,798 1,831 1,957 1,839 Net income (loss) 2,010 1,654 1,623 1,634 (1,206) 1,359 1,344 1,251 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) 2.33 1.89 1.85 1.86 (1.42) 1.51 1.48 1.36 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) 2.32 1.88 1.84 1.86 (1.42) 1.51 1.47 1.35 Cash dividends declared per common share $ 0.39 $ 0.39 $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.32 $ 0.32 Represents net income, less (i) earnings allocated to participating share awards of $ 16 million, $ 13 million, $ 12 million and $ 13 million for the quarters ended December 31, September 30, June 30 and March 31, 2018 , respectively, and $ 2 million, $ 11 million, $ 11 million and $ 10 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively, and (ii) dividend s on preferred shares of $ 19 million, $ 20 million, $ 20 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2018 , respectively, and $ 20 million, $ 21 million, $ 19 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2016 | Jan. 01, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Cumulative Effect Of Revenue Recognition Standard Adoption on Retained Earnings | $ 55 | $ 55.2 | |
New Accounting Guidance on Leases Impact on Liabilities for 2019 | $ 700 | ||
New Accounting Guidance on Leases impact on Assets for 2019 | $ 700 | ||
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Premises [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Premises [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||
Other | $ 1,360 | $ 1,457 | $ 1,678 | ||||
Expenses | |||||||
Marketing and promotion | 6,470 | 5,722 | 6,249 | ||||
Card Member rewards | 9,696 | 8,687 | 7,819 | ||||
Discount Revenue | |||||||
Revenues | |||||||
Revenues and Fees | $ 24,721 | 22,890 | 22,377 | ||||
Revenue Recognition Standard Impacts [Member] | |||||||
Revenues | |||||||
Other | $ (78) | $ (71) | $ (64) | $ (65) | (278) | (253) | |
Expenses | |||||||
Marketing and promotion | 617 | 591 | 593 | 549 | 2,350 | 2,420 | |
Card Member rewards | 286 | 268 | 271 | 254 | 1,079 | 1,026 | |
Revenue Recognition Standard Impacts [Member] | Discount Revenue | |||||||
Revenues | |||||||
Revenues and Fees | $ 981 | $ 930 | $ 928 | $ 868 | $ 3,707 | $ 3,699 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Events Textuals [Abstract] | |||||
Gain on sale of HFS Portfolios | $ 0 | $ 0 | $ (1,218) | ||
Costco [Member] | Other Expense [Member] | |||||
Business Events Textuals [Abstract] | |||||
Gain on sale of HFS Portfolios | $ (1,091) | ||||
JetBlue [Member] | Other Expense [Member] | |||||
Business Events Textuals [Abstract] | |||||
Gain on sale of HFS Portfolios | $ (127) |
Loans and Accounts Receivable_2
Loans and Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans segment information | ||||
Card Member loans | $ 81,854,000 | $ 73,399,000 | ||
Less: Reserve for Losses | 2,134,000 | 1,706,000 | $ 1,223,000 | $ 1,028,000 |
Card Member loans, net | 79,720,000 | 71,693,000 | ||
Other loans, net | 3,676,000 | 2,607,000 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 124,000 | 80,000 | ||
Variable Interest Enterprise [Member] | ||||
Loans segment information | ||||
Card Member loans | 33,194,000 | 25,695,000 | ||
Global Consumer Services Group [Member] | ||||
Loans segment information | ||||
Card Member loans | 69,458,000 | 62,319,000 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans | $ 12,396,000 | $ 11,080,000 |
Loans and Accounts Receivable_3
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable segment information | ||||
Card Member receivables | $ 55,893 | $ 54,047 | ||
Less: Reserve for losses | 573 | 521 | $ 467 | $ 462 |
Card Member receivables, net | 55,320 | 53,526 | ||
Other receivables, net | 2,907 | 3,209 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other receivables, reserves | 25 | 31 | ||
Variable Interest Enterprise [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 8,539 | 8,919 | ||
Global Consumer Services Group [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 21,455 | 20,946 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 34,438 | $ 33,101 |
Loans and Accounts Receivable_4
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | $ 55,893 | $ 54,047 |
Card Member loans total aging | 81,854 | 73,399 |
Global Consumer Services Group [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 21,455 | 20,946 |
Card Member loans total aging | 69,458 | 62,319 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 68,442 | 61,491 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 21,207 | 20,696 |
Global Consumer Services Group [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 290 | 238 |
Global Consumer Services Group [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 80 | 82 |
Global Consumer Services Group [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 220 | 190 |
Global Consumer Services Group [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 50 | 54 |
Global Consumer Services Group [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 506 | 400 |
Global Consumer Services Group [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 118 | 114 |
Global Commercial Services [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 34,438 | 33,101 |
Card Member loans total aging | 12,396 | 11,080 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Current | 12,195 | 10,892 |
Card Member receivables Total Aging | 12,351 | 11,025 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Current | 16,460 | 15,868 |
Card Member loans total aging | 16,728 | 16,119 |
Global Small Business Services [Member] | 30 to 59 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 51 | 43 |
Global Small Business Services [Member] | 30 to 59 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 101 | 91 |
Global Small Business Services [Member] | 60 to 89 [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 32 | 31 |
Global Small Business Services [Member] | 60 to 89 [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 53 | 54 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 73 | 59 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | 114 | 106 |
Global Corporate Payments [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables Total Aging | 45 | 55 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member loans total aging | 17,710 | 16,982 |
Global Corporate Payments [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Period past due | $ 129 | $ 148 |
Loans and Accounts Receivable_5
Loans and Accounts Receivable (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Global Consumer Services Group [Member] | Card Member Loans [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.021 | 0.018 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.025 | 0.022 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.015 | 0.013 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.016 | 0.015 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.018 | 0.017 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.012 | 0.012 |
Global Small Business Services [Member] | Card Member Loans [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.017 | 0.016 |
Global Small Business Services [Member] | Card Member Loans [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.02 | 0.019 |
Global Small Business Services [Member] | Card Member Loans [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.013 | 0.012 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate - Principal Only [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.017 | 0.016 |
Global Small Business Services [Member] | Card Member Receivables [Member] | Net Write-Off Rate Principal Interest, and Fees [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.02 | 0.018 |
Global Small Business Services [Member] | Card Member Receivables [Member] | 30 Days Past Due as a % of Total [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.016 | 0.016 |
Global Corporate Payments [Member] | Net Loss Ratio as a % of Charge Volume [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.0011 | 0.001 |
Global Corporate Payments [Member] | 90 days past billing as a percentage of receivables [Member} | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.007 | 0.009 |
Loans and Accounts Receivable_6
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 387 | $ 327 | $ 260 |
Non-accrual loans | 279 | 199 | 169 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 462 | 261 | 230 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 198 | 186 | 171 |
Total impaired loans and receivables | 1,326 | 973 | 830 |
Unpaid principal balance | 1,212 | 892 | 767 |
Related allowance for Troubled Debt Restructurings | 101 | 60 | 88 |
Accounts Receivable and Loans (Textuals) [Abstract] | |||
Total loans and receivables modified as a TDR, non-accrual | 6 | 5 | 11 |
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 17 | 15 | 20 |
Out of Program TDR accounts that completed modification programs | 148 | 141 | 132 |
Out of Program TDR accounts not in compliance with modification programs | 50 | 45 | 39 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 344 | 289 | 230 |
Non-accrual loans | 236 | 168 | 139 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 313 | 178 | 165 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 131 | 131 | 129 |
Total impaired loans and receivables | 1,024 | 766 | 663 |
Unpaid principal balance | 923 | 694 | 609 |
Related allowance for Troubled Debt Restructurings | 80 | 49 | 51 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | Outside the United States | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 69 | 56 | 52 |
Unpaid principal balance | 68 | 55 | 51 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 29 | 15 | 11 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 13 | 9 | 6 |
Total impaired loans and receivables | 42 | 24 | 17 |
Unpaid principal balance | 42 | 24 | 17 |
Related allowance for Troubled Debt Restructurings | 2 | 1 | 7 |
Global Commercial Services [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 43 | 38 | 30 |
Non-accrual loans | 43 | 31 | 30 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 59 | 31 | 26 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 29 | 27 | 26 |
Total impaired loans and receivables | 174 | 127 | 112 |
Unpaid principal balance | 161 | 118 | 103 |
Related allowance for Troubled Debt Restructurings | 14 | 8 | 9 |
Global Commercial Services [Member] | Card Member Receivables [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 61 | 37 | 28 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 25 | 19 | 10 |
Total impaired loans and receivables | 86 | 56 | 38 |
Unpaid principal balance | 86 | 56 | 38 |
Related allowance for Troubled Debt Restructurings | $ 5 | $ 2 | $ 21 |
Loans and Accounts Receivable_7
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | $ 1,134 | $ 884 | $ 757 |
Interest income recognized | 130 | 102 | 81 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 878 | 699 | 612 |
Interest income recognized | 109 | 85 | 68 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 33 | 20 | 14 |
Interest income recognized | 0 | 0 | 0 |
Global Commercial Services [Member] | Card Member Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 150 | 120 | 103 |
Interest income recognized | 21 | 17 | 13 |
Global Commercial Services [Member] | Card Member Receivables [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average balance of impaired loans | 73 | 45 | 28 |
Interest income recognized | $ 0 | $ 0 | $ 0 |
Loans and Accounts Receivable_8
Loans and Accounts Receivable (Details 6) Account in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)AccountMbp | Dec. 31, 2017USD ($)AccountMbp | Dec. 31, 2016USD ($)AccountMbp | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 57 | 39 | 40 |
Aggregated Outstanding Balance | $ | $ 487 | $ 307 | $ 343 |
Card Member Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 51 | 33 | 31 |
Aggregated Outstanding Balance | $ | $ 377 | $ 224 | $ 220 |
Average Interest Rate Reduction By Class Of Financial Instrument | bp | 12 | 10 | 9 |
Card Member Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | Account | 6 | 6 | 9 |
Aggregated Outstanding Balance | $ | $ 110 | $ 83 | $ 123 |
Average Payment Term Extension | M | 28 | 28 | 18 |
Loans and Accounts Receivable_9
Loans and Accounts Receivable (Details 7) pure in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 12 | 9 | 10 |
Aggregated Outstanding Balance Upon Payment Default | $ 57 | $ 46 | $ 45 |
Card Member Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 8 | 6 | 7 |
Aggregated Outstanding Balance Upon Payment Default | $ 46 | $ 39 | $ 41 |
Card Member Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts (in thousands) | 4 | 3 | 3 |
Aggregated Outstanding Balance Upon Payment Default | $ 11 | $ 7 | $ 4 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the Card Member loans reserve for losses [Line Items] | |||
Balance, January 1 | $ 1,706 | $ 1,223 | $ 1,028 |
Card Member loans provisions | 2,266 | 1,868 | 1,235 |
Balance, December 31 | 2,134 | 1,706 | 1,223 |
Provisions for loans and lease losses deductions net write offs principal | |||
Changes in the Card Member loans reserve for losses [Line Items] | |||
Net Write-Offs Principal, Interest, Fees and Other | (1,539) | (1,181) | (930) |
Provisions for loans and lease losses deductions net write offs interest and fees | |||
Changes in the Card Member loans reserve for losses [Line Items] | |||
Net Write-Offs Principal, Interest, Fees and Other | (304) | (227) | (175) |
Provisions for loans and lease losses other | |||
Changes in the Card Member loans reserve for losses [Line Items] | |||
Net Write-Offs Principal, Interest, Fees and Other | $ 5 | $ 23 | $ 65 |
Reserves For Losses (Details 1)
Reserves For Losses (Details 1) - Card member loans evaluated separately and collectively for impairment [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Line Items] | |||
Card Member loans evaluated separately for impairment | $ 532 | $ 367 | $ 346 |
Reserves on Card Member loans evaluated separately for impairment | 94 | 57 | 60 |
Card Member loans evaluated collectively for impairment | 81,322 | 73,032 | 64,919 |
Reserves on Card Member loans evaluated collectively for impairment | $ 2,040 | $ 1,649 | $ 1,163 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts Receivable Reserve Roll Forward [line Items] | |||
Balance, January 1 | $ 521 | $ 467 | $ 462 |
Provision For Doubtful Accounts | 937 | 795 | 696 |
Other | (26) | (5) | (17) |
Balance, December 31 | 573 | 521 | 467 |
Principal Write-Offs [Member] | |||
Accounts Receivable Reserve Roll Forward [line Items] | |||
Card Member loans reserves for losses - other | $ (859) | $ (736) | $ (674) |
Reserves for Losses (Details 3)
Reserves for Losses (Details 3) - Card Member Receivables Evaluated Separately And Collectively For Impairment [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Line Items] | |||
Card Member receivables evaluated separately for impairment | $ 128 | $ 80 | $ 55 |
Reserves on Card Member receivables evaluated separately for impairment | 7 | 3 | 28 |
Card Member receivables evaluated collectively for impairment | 55,765 | 53,967 | 47,253 |
Reserves on Card Member receivables evaluated collectively for impairment | $ 566 | $ 518 | $ 439 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for Card Member Receivables, Recoveries of Bad Debts | $ 367 | $ 366 | $ 394 |
Allowance for Card Member Loans, Recoveries of Bad Debts | 444 | 409 | 379 |
Allowance for Card Member Receivables, Recoveries of Bad Debts - TDR | 0 | 2 | (16) |
Allowance for Card Member Loans, Recoveries of Bad Debts - TDR | (33) | (30) | (34) |
Loans Transferred From Held For Sale To Held For Investment | 265 | ||
Cardmember Reserves For Loans Held For Investments | 67 | ||
Foreign Currency Translation Adjustments [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivable reserves for losses - Other | (6) | 12 | (12) |
Card Member loans reserves for losses - other | (11) | 8 | (10) |
Other Items [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card Member receivable reserves for losses - Other | (20) | (17) | (5) |
Card Member loans reserves for losses - other | $ 16 | $ 15 | $ 8 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available for Sale Securities by Type | |||
Cost | $ 4,659 | $ 3,158 | $ 3,144 |
Gross Unrealized Gains | 10 | 16 | 35 |
Gross Unrealized Losses | (22) | (15) | (22) |
Estimated Fair Value | 4,647 | 3,159 | 3,157 |
State and municipal obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 594 | 1,369 | 2,019 |
Gross Unrealized Gains | 4 | 11 | 28 |
Gross Unrealized Losses | (2) | (3) | (11) |
Estimated Fair Value | 596 | 1,377 | 2,036 |
U.S. Government agency obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 10 | 11 | 12 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Estimated Fair Value | 10 | 11 | 12 |
U.S. Government treasury obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 3,452 | 1,051 | 465 |
Gross Unrealized Gains | 5 | 3 | 3 |
Gross Unrealized Losses | (17) | (9) | (8) |
Estimated Fair Value | 3,440 | 1,045 | 460 |
Corporate debt securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 28 | 28 | 19 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Estimated Fair Value | 28 | 28 | 19 |
Mortgage-backed securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 50 | 67 | 92 |
Gross Unrealized Gains | 1 | 2 | 3 |
Gross Unrealized Losses | 0 | 0 | 0 |
Estimated Fair Value | 51 | 69 | 95 |
Equity securities [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 51 | 51 | 51 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | (3) | (3) | (2) |
Estimated Fair Value | 48 | 48 | 49 |
Foreign government bonds and obligations [Member] | |||
Schedule of Available for Sale Securities by Type | |||
Cost | 474 | 581 | 486 |
Gross Unrealized Gains | 0 | 0 | 1 |
Gross Unrealized Losses | 0 | 0 | (1) |
Estimated Fair Value | $ 474 | $ 581 | $ 486 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | Dec. 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 | $ 224 | $ 807 |
Estimated Fair Value, 12 months or more | 873 | 211 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (2) | (6) |
Gross Unrealized Losses, 12 months or more | (16) | (8) |
State and municipal obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 157 |
Estimated Fair Value, 12 months or more | 82 | 0 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | (3) |
Gross Unrealized Losses, 12 months or more | (1) | 0 |
U.S. Government treasury obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 224 | 650 |
Estimated Fair Value, 12 months or more | 791 | 175 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (2) | (3) |
Gross Unrealized Losses, 12 months or more | (15) | (6) |
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 Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | 0 | 0 |
Gross Unrealized Losses, 12 months or more | $ 0 | $ (2) |
Investment Securities (Detail_2
Investment Securities (Details 2) $ in Millions | Dec. 31, 2018USD ($)securities | Dec. 31, 2017USD ($)securities |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 2 | 34 |
Number of securities, 12 months or more | securities | 29 | 13 |
Number of securities, total | securities | 31 | 47 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 224 | $ 807 |
Estimated Fair Value, 12 months or more | 873 | 211 |
Estimated Fair Value, Total | 1,097 | 1,018 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (2) | (6) |
Gross Unrealized Losses, 12 months or more | (16) | (8) |
Gross Unrealized Losses, Total | $ (18) | $ (14) |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of securities, less than 12 months | securities | 2 | 34 |
Number of securities, 12 months or more | securities | 29 | 13 |
Number of securities, total | securities | 31 | 47 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated Fair Value, Less than 12 months | $ 224 | $ 807 |
Estimated Fair Value, 12 months or more | 873 | 211 |
Estimated Fair Value, Total | 1,097 | 1,018 |
Available For Sale Securities Continuous Unrealized Aggregate Losses [Abstract] | ||
Gross Unrealized Losses, Less than 12 months | (2) | (6) |
Gross Unrealized Losses, 12 months or more | (16) | (8) |
Gross Unrealized Losses, Total | $ (18) | $ (14) |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | $ 2,262 | |
Estimated Fair Value, Due after 1 year but within 5 years | 1,607 | |
Estimated Fair Value, Due after 5 years but within 10 years | 197 | |
Estimated Fair Value, Due after 10 years | 533 | |
Total | $ 3,111 | |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | ||
Due within 1 year | 2,261 | |
Due after 1 year but within 5 years | 1,617 | |
Due after 5 years but within 10 years | 199 | |
Due after 10 years | 531 | |
Total | $ 4,608 | |
Weighted average yields | ||
Weighted average yields, due within 1 year | 2.81% | |
Weighted averge yields, due after 1 years but within 5 years | 2.15% | |
Weighted averge yields, due after 5 years but within 10 years | 3.49% | |
Weighted average yield, due after 10 years | 3.53% | |
Weighted average yields, Total | 2.69% | |
State and municipal obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | $ 13 | |
Estimated Fair Value, Due after 1 year but within 5 years | 47 | |
Estimated Fair Value, Due after 5 years but within 10 years | 66 | |
Estimated Fair Value, Due after 10 years | 470 | |
Total | 596 | |
U.S. Government treasury obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 0 | |
Estimated Fair Value, Due after 1 year but within 5 years | 0 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 10 | |
Total | 10 | |
U.S. Government agency obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 1,773 | |
Estimated Fair Value, Due after 1 year but within 5 years | 1,534 | |
Estimated Fair Value, Due after 5 years but within 10 years | 131 | |
Estimated Fair Value, Due after 10 years | 2 | |
Total | 3,440 | |
Corporate debt securities [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 2 | |
Estimated Fair Value, Due after 1 year but within 5 years | 26 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 0 | |
Total | 28 | |
Mortgage-backed securities [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 0 | |
Estimated Fair Value, Due after 1 year but within 5 years | 0 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 51 | |
Total | 51 | |
Foreign government bonds and obligations [Member] | ||
Estimated Fair Value | ||
Estimated Fair Value, Due within 1 year | 474 | |
Estimated Fair Value, Due after 1 year but within 5 years | 0 | |
Estimated Fair Value, Due after 5 years but within 10 years | 0 | |
Estimated Fair Value, Due after 10 years | 0 | |
Total | $ 474 |
Investment Securities (Detail_4
Investment Securities (Details Textuals) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Securities (Details) [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 21.00% | 35.00% | 35.00% |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | $ 363 | $ 336 | $ 286 |
American Express Charge Trust [Member] | |||
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | 3 | 7.1 | |
American Express Lending Trust [Member] | |||
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | 67 | 55 | |
Restricted cash held by trusts [Member] | |||
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | $ 70.4 | $ 62.1 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) $ in Billions | Dec. 31, 2018USD ($) |
American Express Charge Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect Ownership of Variable Interests | $ 7 |
American Express Lending Trust [Member] | |
Securitized Trusts [Line Items] | |
Direct and Indirect Ownership of Variable Interests | $ 15.5 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets Details [Abstract] | |||
Goodwill | $ 3,072 | $ 3,009 | $ 2,927 |
Deferred Tax Assets, Net | 1,480 | 1,637 | |
Prepaid expenses | 1,458 | 684 | |
Other intangible assets, at amortized cost | 275 | 899 | |
Community Reinvestment Act Tax Credit Investments | 1,043 | 1,023 | |
Restricted cash | 363 | 336 | $ 286 |
Derivative assets | 396 | 124 | |
Other | 2,384 | 2,034 | |
Other assets | $ 10,471 | $ 9,746 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 3,009 | $ 2,927 |
Acquisitions | 90 | 19 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | (27) | 63 |
Goodwill, Ending Balance | 3,072 | 3,009 |
Global Consumer Services Group [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 637 | 590 |
Acquisitions | 90 | 19 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | (20) | 28 |
Goodwill, Ending Balance | 707 | 637 |
Global Commercial Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 1,724 | 1,711 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | (6) | 13 |
Goodwill, Ending Balance | 1,718 | 1,724 |
Global Merchant and Network Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 648 | 626 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | (1) | 22 |
Goodwill, Ending Balance | 647 | 648 |
Corporate and Other [Member] | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other, including foreign currency translation | $ 0 | $ 0 |
Other Assets (Details Textuals)
Other Assets (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | |
Other Assets [Line Items] | ||||
Foreign deferred tax liabilities | $ 174 | $ 98 | ||
Tax Credit Investments - Affordable Housing partnerships | 1,006 | 1,018 | ||
Reclassification of Net assets previously reported within Other intangible assets | $ 796 | |||
Gross Carrying Amount | 702 | 2,105 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 427 | 1,206 | ||
Other Assets (Textuals) [Abstract] | ||||
Accumulated goodwill impairment losses | 221 | 220 | ||
Amortization expense | 212 | 207 | $ 194 | |
Community Reinvestment Act Tax Credit Investments | $ 1,043 | 1,023 | ||
Minimum [Member] | ||||
Other Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Useful Life | 1 year | |||
Maximum [Member] | ||||
Other Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Useful Life | 22 years | |||
Other Expense [Member] | ||||
Other Assets [Line Items] | ||||
Loss from Affordable Housing Projects Equity Method Investments | $ 126 | 112 | ||
Income Tax Provision [Member] | ||||
Other Assets [Line Items] | ||||
QAH Tax Credits for equity method losses | 97 | 74 | ||
Other Liabilities [Member] | ||||
Other Assets [Line Items] | ||||
QAH Investment Commitment | 237 | |||
Variable Interest Enterprise [Member] | ||||
Other Assets [Line Items] | ||||
Affordable Housing Program Off Balance Sheet Obligation | 59 | |||
Tax Credit Investments - Affordable Housing partnerships | 936 | $ 933 | ||
Variable Interest Enterprise [Member] | Other Liabilities [Member] | ||||
Other Assets [Line Items] | ||||
QAH Investment Commitment | $ 228 | |||
Earliest Year [Member] | Other Liabilities [Member] | ||||
Other Assets [Line Items] | ||||
Affordable Housing Tax Credits Commitment Year To Be Paid | 2,019 | |||
Latest Year [Member] | Other Liabilities [Member] | ||||
Other Assets [Line Items] | ||||
Affordable Housing Tax Credits Commitment Year To Be Paid | 2,033 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
U.S.: | ||
Interest-bearing | $ 69,144 | $ 63,666 |
Non-interest-bearing | 412 | 395 |
Non-U.S.: | ||
Interest-bearing | 28 | 34 |
Non-interest-bearing | 376 | 357 |
Total customer deposits | 69,960 | 64,452 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 376 | 358 |
Non-U.S.: | ||
Non-interest-bearing | $ 367 | $ 344 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 39,491 | $ 31,915 |
Certificates of deposit - Direct | 817 | 290 |
Certificates of deposit - Third Party | 12,667 | 16,684 |
Sweep accounts - Third party | 16,169 | 14,777 |
Other Customer Deposits | ||
U.S. non-interest bearing deposits | 36 | 37 |
Non-US deposits | 37 | 47 |
Card Member credit balances - U.S. and non-U.S. | 743 | 702 |
Total customer deposits | $ 69,960 | $ 64,452 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Dec. 31, 2018USD ($) |
Time Deposits By Maturity | |
2,019 | $ 4,748 |
2,020 | 4,290 |
2,021 | 1,869 |
2,022 | 2,278 |
2,023 | 317 |
After 5 years | 0 |
Total | 13,502 |
United States [Member] | |
Time Deposits By Maturity | |
2,019 | 4,730 |
2,020 | 4,290 |
2,021 | 1,869 |
2,022 | 2,278 |
2,023 | 317 |
After 5 years | 0 |
Total | 13,484 |
Non United States [Member] | |
Time Deposits By Maturity | |
2,019 | 18 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
After 5 years | 0 |
Total | $ 18 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 285 | $ 125 |
United States [Member] | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | 276 | 114 |
Non Us [Member] | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits, $100,000 or More | $ 9 | $ 11 |
Customer Deposits (Details Text
Customer Deposits (Details Textuals) | Dec. 31, 2018M |
Customer Deposits Textuals [Abstract] | |
Weighted Average Rate Domestic Deposit Certificates Of Deposit | 2.38% |
Weighted Average Maturity of Certificate of Deposits (in Months) | 47 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 3,100,000 | $ 3,278,000 |
Face amount of eligible notes issued | $ 2,000,000 | $ 2,000,000 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 2.13% | 2.05% |
Fees to maintain the secured financing facility | $ 7,800 | $ 9,200 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 752,000 | $ 1,168,000 |
Commercial Paper [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 2.71% | 1.54% |
Other Short Term Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 2,348,000 | $ 2,110,000 |
Other Short Term Borrowings [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 1.94% | 2.34% |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 58,423 | $ 55,804 |
Unamortized Underwriting Fees | $ (117) | $ (111) |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.77% | 2.44% |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 18,191 | $ 12,695 |
Fixed Rate Senior Notes Amount [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 14,043 | $ 10,377 |
Year-End Effective Interest Rates with Swaps | 3.64% | 3.17% |
Fixed Rate Senior Notes Amount [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.48% | 3.85% |
Fixed Rate Senior Notes Amount [Member] | American Express National Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | |
Year-End Effective Interest Rates with Swaps | 0.00% | |
Fixed Rate Senior Notes Amount [Member] | American Express National Bank [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | |
Fixed Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 16,677 | $ 19,652 |
Year-End Effective Interest Rates with Swaps | 3.06% | 2.27% |
Fixed Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.28% | 2.24% |
Fixed Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 12,474 | $ 8,099 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.28% | 1.90% |
Floating Rate Senior Notes Amount [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,600 | $ 1,750 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.17% | 1.93% |
Floating Rate Senior Notes Amount [Member] | American Express National Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | $ 125 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express National Bank [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 1.89% |
Floating Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,800 | $ 4,550 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Credit Corporation [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.31% | 2.09% |
Floating Rate Senior Notes Amount [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 1,535 | $ 4,200 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Charge Trust II [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.89% | 1.79% |
Floating Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 5,125 | $ 5,800 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.80% | 2.03% |
Floating Rate Subordinated Notes Amount [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | $ 87 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Subordinated Notes Amount [Member] | American Express Charge Trust II [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 2.11% |
Floating Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 167 | $ 192 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.96% | 2.05% |
Convertible Subordinated Debt [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 598 | $ 598 |
Year-End Effective Interest Rates with Swaps | 3.66% | 2.66% |
Convertible Subordinated Debt [Member] | Parent Company [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.63% | 3.63% |
Fixed Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 240 | $ 206 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Subordinated Notes Amount [Member] | American Express Lending Trust [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.37% | 2.21% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 19 | $ 23 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 5.54% | 5.59% |
Fixed Rate Instruments [Member] | Other Subsidiaries [Member] | Capitalized lease transactions | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 19 | $ 23 |
Floating Rate Borrowings [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 262 | $ 256 |
Year-End Effective Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Borrowings [Member] | Other Subsidiaries [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.42% | 0.42% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Aggregate annual maturities on long-term debt obligations | ||
2,019 | $ 11,315 | |
2,020 | 17,149 | |
2,021 | 10,193 | |
2,022 | 7,576 | |
2,023 | 7,035 | |
Thereafter | 6,284 | |
Total | 59,552 | |
Unamortized Underwriting Fees | (117) | $ (111) |
Unamortized Discount and Premium | (771) | |
Impacts due to Fair Value Hedge Accounting | (241) | |
Total long-term debt | 58,423 | 55,804 |
Parent Company [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,019 | 641 | |
2,020 | 2,000 | |
2,021 | 4,250 | |
2,022 | 3,525 | |
2,023 | 4,350 | |
Thereafter | 4,273 | |
Total | 19,039 | |
Total long-term debt | 18,191 | $ 12,695 |
American Express Credit Corporation [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,019 | 7,150 | |
2,020 | 6,600 | |
2,021 | 2,890 | |
2,022 | 2,050 | |
2,023 | 0 | |
Thereafter | 2,000 | |
Total | 20,690 | |
American Express Charge Trust II [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,019 | 0 | |
2,020 | 1,535 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 0 | |
Total | 1,535 | |
American Express Lending Trust [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,019 | 3,488 | |
2,020 | 6,924 | |
2,021 | 2,909 | |
2,022 | 2,001 | |
2,023 | 2,685 | |
Thereafter | 0 | |
Total | 18,007 | |
Other Subsidiaries [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2,019 | 36 | |
2,020 | 90 | |
2,021 | 144 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 11 | |
Total | $ 281 |
Debt (Details Textuals)
Debt (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Face amount of eligible notes from Charge Trust | $ 3,000 | ||
Debt (Textuals) [Abstract] | |||
Total bank lines of credit of the company | 3,500 | $ 3,500 | |
Unutilized total credit lines | 3,500 | 3,500 | |
Fees to maintain credit lines | $ 14.2 | 16.3 | |
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line | 1.25 | ||
Total Interest Paid | $ 2,700 | 2,000 | $ 1,700 |
Average Commercial Paper Outstanding | 228 | 1,076 | |
American Express Charge Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of eligible notes draw downs | $ 1,500 | $ 3,000 | |
Specified date face amount of eligible notes issued | Jul. 15, 2020 | ||
American Express Lending Trust [Member] | |||
Debt Instrument [Line Items] | |||
Specified date face amount of eligible notes issued | Sep. 15, 2020 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of other liabilities | ||
Membership Rewards liability | $ 8,414 | $ 7,751 |
Book overdraft balances | 1,028 | 2,837 |
Employee-related liablities | 2,164 | 2,277 |
U.S. Tax Act Deemed Repatriation of Taxes | 1,689 | 1,703 |
Rebate and reward accruals | 1,596 | 1,564 |
Deferred card and other fees, net | 1,759 | 1,554 |
Other | 3,629 | 4,503 |
Total | $ 20,279 | $ 22,189 |
Other Liabilities (Details 1)
Other Liabilities (Details 1) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying amount of deferred charge card and other fees | ||
Deferred card and other fees | $ 2,208 | $ 1,996 |
Deferred direct acquisition costs | (282) | (280) |
Reserves for membership cancellations | (167) | (162) |
Total | $ 1,759 | $ 1,554 |
Stock Plans (Details)
Stock Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Summary of Stock Option and RSA Activity | |
Beginning Balance, Shares | shares | 7,262 |
Stock Options Granted, shares | shares | 282 |
Stock Options Exercised, shares | shares | (1,844) |
Forfeited, shares | shares | (216) |
Stock Options Expired, shares | shares | 0 |
Ending Balance, Shares | shares | 5,484 |
Beginning balance, weighted average exercise price | $ / shares | $ 58.92 |
Stock Options Granted, weighted average exercise price | $ / shares | 98.47 |
Stock Options Exercised, weighted average exercise price | $ / shares | 46.95 |
Stock Options Forfeitures, weighted average exercise price | $ / shares | 65.36 |
Stock Options Expired, weighted average exercise price | $ / shares | 0 |
Ending balance, weighted average exercise price | $ / shares | $ 64.73 |
Options vested and expected to vest, shares | shares | 5,473 |
Options vested and expected to vest, Weighted Average Exercise Price | $ / shares | $ 64.73 |
Options exercisable, shares | shares | 3,230 |
Options exercisable, Weighted Average Exercise Price | $ / shares | $ 57.04 |
Beginning balance, shares | shares | 7,215 |
RSAs Granted, shares | shares | 2,221 |
Vested, shares | shares | (2,407) |
Forfeited, shares | shares | (463) |
Ending balance, shares | shares | 6,566 |
Beginning Balance, Weighted Average Grant Price | $ / shares | $ 70.29 |
Granted, Weighted Average Grant Price | $ / shares | 98.2 |
RSAs Vested, Weighted Average Grant Price | $ / shares | 77.41 |
RSAs Forfeited, Weighted Average Grant Price | $ / shares | 78.8 |
Ending Balance, Weighted Average Grant Price | $ / shares | $ 76.52 |
Stock Plans (Details 1)
Stock Plans (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | |
Weighted-average remaining contractual life, Outstanding | 5 years 6 months |
Aggregate intrinsic value, Outstanding | $ 169 |
Weighted-average remaining contractual life, Exercisable | 4 years |
Aggregate intrinsic value, Exercisable | $ 124 |
Weighted-average remaining contractual life, Vested and Expected to Vest | 5 years 6 months |
Aggregate intrinsic value, Vested and Expected to Vest | $ 168 |
Stock Plans (Details 2)
Stock Plans (Details 2) - Stock Option [Member] - $ / shares | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Assumptions Used | ||||
Dividend yield | 1.58% | 1.40% | 1.80% | 1.90% |
Expected volatility | 21.41% | 22.00% | 24.00% | 25.00% |
Risk-free interest rate | 2.26% | 2.70% | 2.30% | 1.50% |
Expected life of stock option (in years) | 7 years | 7 years 1 month | 6 years 9 months | 6 years 3 months |
Weighted-average fair value per option | $ 19.18 | $ 23.17 | $ 18.18 | $ 13.67 |
Stock Plans (Details 3)
Stock Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 288 | $ 283 | $ 252 |
Stock Plans (Textuals) [Abstract] | |||
Total income tax benefit recognized in the income statement for stock-based compensation arrangements | 69 | 102 | 89 |
Restricted Stock Awards [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 181 | 170 | 178 |
Stock Plans (Textuals) [Abstract] | |||
Total unrecognized compensation cost | $ 179 | ||
Weighted-average remaining vesting period | 2 years 1 month | ||
Stock Option [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 19 | 21 | 14 |
Stock Plans (Textuals) [Abstract] | |||
Total unrecognized compensation cost | $ 12 | ||
Weighted-average remaining vesting period | 1 year 6 months | ||
Liability-Based Awards [Member] | |||
Stock Based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 88 | $ 92 | $ 60 |
Stock Plans (Details Textuals)
Stock Plans (Details Textuals) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Plans Details [Abstract] | |||
Common shares unissued and available for grant | 12 | 14 | 17 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of RSAs granted | $ 98.2 | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | Each stock option has an exercise price equal to the market price of the Company’s common stock on the date of grant and a contractual term of 10 years from the date of grant. Stock options generally vest 100 percent on the third anniversary of the grant date. | ||
Intrinsic value for options exercised | $ 104 | $ 197 | $ 51 |
Proceeds From Stock Options Exercised | 87 | 130 | 175 |
Employee Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options | $ 18 | 59 | 4 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | RSAs containing only service conditions generally vest 25 percent per year beginning with the first anniversary of the grant date. RSAs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics. | ||
Total fair value of shares vested | $ 239 | $ 180 | $ 171 |
Weighted-average grant date fair value of RSAs granted | $ 98.2 | $ 77.8 | $ 55.55 |
Liability-Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid upon vesting of PGs | $ 56 | $ 48 | $ 41 |
Retirement Plans (Details Textu
Retirement Plans (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined contribution retirement plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Total expense for all defined contribution retirement plans | $ 272 | $ 349 | $ 234 |
Defined benefit pension and other postretirement benefit plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Unfunded status related to the defined benefit pension plans | (563) | (626) | |
Total expense for all defined contribution retirement plans | $ (0.4) | $ 25 | $ 24 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2018USD ($) |
Minimum aggregate rental commitment under all noncancelable operating leases | |
2,019 | $ 140 |
2,020 | 118 |
2,021 | 95 |
2,022 | 78 |
2,023 | 65 |
Thereafter | 832 |
Total | $ 1,328 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies (Textuals) [Abstract] | |||
Contingent obligations with co-brand partners | $ 5,000 | ||
Amount of rentals subject to subleasing arrangements | 14 | ||
Future minimum payments on capital leases due, in 2019 | 4 | ||
Future minimum payments on capital leases due, in 2020 | 4 | ||
Future minimum payments on capital leases due, in 2021 | 1 | ||
Future minimum payments on capital leases due, in 2022 | 1 | ||
Future minimum payments on capital leases due, in 2023 | 2 | ||
Future minimum payments on capital leases due, thereafter | 8 | ||
Total rental expense | 142 | $ 151 | $ 169 |
Loss Contingencies [Line Items] | |||
Loss Contingency Estimate Of Possible Loss | 400 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Estimate Of Possible Loss | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | $ 514 | $ 210 |
Total fair value of derivative liabilities | 214 | 218 |
Total derivatives assets, net | 396 | 124 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset and liability netting | (90) | (80) |
Total derivatives assets, net | 396 | 124 |
Cash collateral netting, Assets | (28) | (6) |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 256 | 128 |
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 514 | 210 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 34 | 11 |
Other Assets [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 222 | 117 |
Other Assets [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 258 | 82 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset and liability netting | (90) | (80) |
Total derivatives liabilities, net | 46 | 93 |
Cash collateral netting, Liabilities | (78) | (45) |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 135 | 123 |
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 214 | 218 |
Other Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 74 | 34 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | 61 | 89 |
Other Liabilities [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives liabilities, net | $ 79 | $ 95 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details 1) - Other Expense [Member] - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative contract | $ 59 | $ 206 | $ 163 |
Hedged item | (43) | (246) | (184) |
Net hedge ineffectiveness | $ 16 | $ (40) | $ (21) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives and Hedging Activities (Textuals) [Abstract] | |||
Net reduction in interest expense on long term debt and other | $ (51) | $ 133 | $ 224 |
Margin on interest rate swap not netted | 84 | 146 | |
Derivative [Line Items] | |||
Total derivatives assets, net | 396 | 124 | |
Other Expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) in changes of Fair Value of Derivatives not designated as hedges | 60 | (29) | 1 |
Gain on embedded derivatives | (11) | 0 | 9 |
Fair Value Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 24,000 | 23,800 | |
Cumulative amount of fair value hedging adjustments | 241 | 182 | |
Net Investment Hedges [Member] | |||
Derivative [Line Items] | |||
Effective portion of gain (loss) on hedges | 328 | (370) | 281 |
Notional Amount of Foreign Currency Derivatives | 9,600 | 9,500 | |
Net Investment Hedges [Member] | Other Expense [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | (31) | $ (5) |
Credit Valuation Adjustment [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | 0 | 0 | |
Not Sold Or Repledged [Member] | |||
Derivative [Line Items] | |||
Securities received as collateral | 0 | 0 | |
Risk Exposure Low [Member] | |||
Derivative [Line Items] | |||
Total derivatives assets, net | 0 | 0 | |
Significant Counterparties [Member] | |||
Derivative [Line Items] | |||
Total derivatives assets, net | 0 | 0 | |
Total derivatives liabilities, net | 0 | ||
Carrying Value [Member] | |||
Derivative [Line Items] | |||
Notional amount of long-term debt | $ 23,700 | $ 23,600 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investment securities: | ||
Equity securities and other | $ 48 | $ 48 |
Debt securities | 3,111 | |
Derivative assets | 514 | 210 |
Total assets | 5,161 | 3,369 |
Liabilities | ||
Derivative liabilities | 214 | 218 |
Total derivatives | 214 | 218 |
Level 1 [Member] | ||
Investment securities: | ||
Equity securities and other | 1 | 1 |
Debt securities | 0 | 1,045 |
Derivative assets | 0 | 0 |
Total assets | 1 | 1,046 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total derivatives | 0 | 0 |
Level 2 [Member] | ||
Investment securities: | ||
Equity securities and other | 47 | 47 |
Debt securities | 4,599 | 2,066 |
Derivative assets | 514 | 210 |
Total assets | 5,160 | 2,323 |
Liabilities | ||
Derivative liabilities | 214 | 218 |
Total derivatives | 214 | 218 |
Level 3 [Member] | ||
Investment securities: | ||
Equity securities and other | 0 | 0 |
Debt securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total derivatives | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | $ 27,445 | $ 32,927 | $ 25,208 | $ 23,239 |
Financial assets carried at other than fair value | ||||
Other loans, net | 3,676 | 2,607 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,502 | |||
Long-term debt | 58,423 | 55,804 | ||
Fair Values (Textuals) [Abstract] | ||||
Accounts receivable, less reserves | 55,320 | 53,526 | ||
Card Member loans, net | 79,720 | 71,693 | ||
Card Member receivables, gross | 55,893 | 54,047 | ||
Variable Interest Enterprise [Member] | ||||
Financial liabilities carried at other than fair value | ||||
Long-term debt | 19,509 | 18,560 | ||
Fair Values (Textuals) [Abstract] | ||||
Card Member receivables, gross | 8,539 | 8,919 | ||
Carrying Value [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 27,000 | 33,000 | ||
Other financial assets | 58,000 | 57,000 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 83,000 | 74,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 81,000 | 76,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,000 | 17,000 | ||
Long-term debt | 58,000 | 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 Sheets | 27,000 | 33,000 | ||
Other financial assets | 58,000 | 57,000 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 84,000 | 75,000 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 81,000 | 76,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,000 | 17,000 | ||
Long-term debt | 59,000 | 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 | 19,400 | 18,600 | ||
Fair Values (Textuals) [Abstract] | ||||
Card Member loans, net | 33,000 | 25,600 | ||
Level 1 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 26,000 | 32,000 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Level 2 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 1,000 | 1,000 | ||
Other financial assets | 58,000 | 57,000 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 0 | 0 | ||
Financial Liabilities: | ||||
Financial liabilities for which carrying values equal or approximate fair value | 81,000 | 76,000 | ||
Financial liabilities carried at other than fair value | ||||
Certificates of deposit | 13,000 | 17,000 | ||
Long-term debt | 59,000 | 57,000 | ||
Level 3 [Member] | ||||
Financial assets for which carrying values equal or approximate fair value | ||||
Cash and cash equivalents per Consolidated Balance Sheets | 0 | 0 | ||
Other financial assets | 0 | 0 | ||
Financial assets carried at other than fair value | ||||
Other loans, net | 84,000 | 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 |
Fair Values (Details Textuals)
Fair Values (Details Textuals) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Assets measured at fair value for impairment | $ 5,161 | $ 3,369 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Assets measured at fair value for impairment | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - Return and Merchant Protection [Member] - USD ($) $ in Millions | Dec. 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 |
Common and Preferred Shares a_3
Common and Preferred Shares and Warrants (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Authorized shares and a reconciliation of common shares issued and outstanding | |||
Common shares, authorized | 3,600 | 3,600 | 3,600 |
Shares issued and outstanding at beginning of year | 859 | 904 | 969 |
Common shares repurchased | (15) | (50) | (70) |
Other, primarily stock option exercises and RSAs granted | 3 | 5 | 5 |
Shares issued and outstanding as of December 31 | 847 | 859 | 904 |
Stockholders' Equity Note (Textuals) [Abstract] | |||
Shares reserved for issuance under employee stock and employee benefit plans | 24 |
Common and Preferred Shares a_4
Common and Preferred Shares and Warrants (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Series B | |
Preferred Shares [Line Items] | |
Issuance Date | Nov. 10, 2014 |
Securities issued | 750 |
Depositary shares, issued | 750,000 |
Aggregate Liquidation Preference | $ | $ 750 |
Fixed dividend rate per annum | 5.20% |
Semi-annual fixed dividend, payment dates | Beginning May 15, 2015 |
Floating dividend rate per annum | 3 month LIBOR+ 3.428% |
Quarterly floating dividend, Payment Dates | Beginning February 15, 2020 |
Fixed to floating rate, conversion date | Nov. 15, 2019 |
Series C | |
Preferred Shares [Line Items] | |
Issuance Date | Mar. 2, 2015 |
Securities issued | 850 |
Depositary shares, issued | 850,000 |
Aggregate Liquidation Preference | $ | $ 850 |
Fixed dividend rate per annum | 4.90% |
Semi-annual fixed dividend, payment dates | Beginning September 15, 2015 |
Floating dividend rate per annum | 3 month LIBOR+ 3.285% |
Quarterly floating dividend, Payment Dates | Beginning June 15, 2020 |
Fixed to floating rate, conversion date | Mar. 15, 2020 |
Common and Preferred Shares a_5
Common and Preferred Shares and Warrants (Details Textuals) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 26, 2016 | |
Common And Preferred Shares And Warrants (Textuals) [Abstract] | ||||
Common share repurchases authorized | 150,000,000 | |||
Common shares repurchased | (15,000,000) | (50,000,000) | (70,000,000) | |
Common shares remaining under share repurchase authorizations | 70,000,000 | |||
Shares held as treasury shares | 2,700,000 | 2,900,000 | 3,000,000 | |
Cost basis of treasury stock | $ 207,000,000 | $ 217,000,000 | $ 197,000,000 | |
Preferred shares, authorized | 20,000,000 | 20,000,000 | ||
Preferred shares, par value | $ 1.67 | $ 1.67 | ||
Depositary Shares, Redemption Amount | $ 1,000 | |||
Warrants, issued and outstanding | 0 | 0 | 0 | |
Liquidation price per share | $ 1,000,000 | |||
Share Repurchase Commissions [Line Items] | ||||
Commissions paid included in cost basis of common stock repurchased | $ 2,200,000 | $ 2,900,000 | $ 1,200,000 | |
Cost basis of common stock repurchased | $ 1,600,000,000 | $ 4,300,000,000 | $ 4,400,000,000 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | $ (2,428) | ||
Net unrealized pension and other postretirement benefit, net of tax | 11 | $ 62 | $ 19 |
Balances as of December 31 | (2,597) | (2,428) | |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Investment securities | (2) | (4) | (27) |
Foreign currency translation adjustments | (44) | (172) | (15) |
Net investment hedges | 107 | (215) | 139 |
Pension and other postretirement benefit losses | 9 | 7 | 37 |
Total tax impact | 70 | (384) | 134 |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | (2,428) | (2,784) | (2,534) |
Net unrealized gains (losses) | (10) | (7) | (45) |
Reclassification for realized (gains) losses into earnings | 0 | (7) | (2) |
Net translation of investments in foreign operations | (500) | 678 | (503) |
Net gains (losses) related to hedges of investment in foreign operations | 328 | (370) | 281 |
Net unrealized pension and other postretirement benefit, net of tax | 11 | 62 | 19 |
Net change in accumulated other comprehensive (loss) income | (169) | 356 | (250) |
Balances as of December 31 | (2,597) | (2,428) | (2,784) |
Other - Net Unrealized Gains (Losses) on Equity Securities | 2 | ||
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | 0 | 7 | 58 |
Net unrealized gains (losses) | (10) | (7) | (45) |
Reclassification for realized (gains) losses into earnings | 0 | 0 | (6) |
Net translation of investments in foreign operations | 0 | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 | 0 |
Net unrealized pension and other postretirement benefit, net of tax | 0 | 0 | 0 |
Net change in accumulated other comprehensive (loss) income | (8) | (7) | (51) |
Balances as of December 31 | (8) | 0 | 7 |
Other - Net Unrealized Gains (Losses) on Equity Securities | 2 | ||
Foreign Currency Translation Adjustments [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | (1,961) | (2,262) | (2,044) |
Net unrealized gains (losses) | 0 | 0 | 0 |
Reclassification for realized (gains) losses into earnings | 0 | (7) | 4 |
Net translation of investments in foreign operations | (500) | 678 | (503) |
Net gains (losses) related to hedges of investment in foreign operations | 328 | (370) | 281 |
Net unrealized pension and other postretirement benefit, net of tax | 0 | 0 | 0 |
Net change in accumulated other comprehensive (loss) income | (172) | 301 | (218) |
Balances as of December 31 | (2,133) | (1,961) | (2,262) |
Other - Net Unrealized Gains (Losses) on Equity Securities | 0 | ||
Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balances as of January 1 | (467) | (529) | (548) |
Net unrealized gains (losses) | 0 | 0 | 0 |
Reclassification for realized (gains) losses into earnings | 0 | 0 | 0 |
Net translation of investments in foreign operations | 0 | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 | 0 |
Net unrealized pension and other postretirement benefit, net of tax | 11 | 62 | 19 |
Net change in accumulated other comprehensive (loss) income | 11 | 62 | 19 |
Balances as of December 31 | (456) | $ (467) | $ (529) |
Other - Net Unrealized Gains (Losses) on Equity Securities | $ 0 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other non-interest revenue | $ 1,360 | $ 1,457 | $ 1,678 |
Other expense | (5,671) | (5,634) | $ (4,942) |
Foreign Currency Translation Adjustments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense | 1 | (7) | |
Income tax benefit for other, net expense | (1) | 14 | |
Increase (decrease) due to amounts reclassified into earnings | $ 0 | $ 7 |
Changes in Accumulated Other _5
Changes in Accumulated Other Comprehensive Income (Details Textuals) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accumulated Other Comprehensice Income (Loss) (Textuals) [Abstract] | |
Tax Benefits Recognized | $ 289 |
Non-Interest Revenue and Expe_3
Non-Interest Revenue and Expense Detail (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non Interest Revenues [Line Items] | |||
Foreign currency conversion fee revenue | $ 921 | $ 851 | $ 809 |
Delinquency fees | 959 | 888 | 762 |
Loyalty Partner-related fees | 461 | 452 | 409 |
Travel Commissions And Fees | 395 | 364 | 332 |
Other | 417 | 435 | 406 |
Other Fees and Commissions | |||
Non Interest Revenues [Line Items] | |||
Revenues and Fees | $ 3,153 | $ 2,990 | $ 2,718 |
Non-Interest Revenue and Expe_4
Non-Interest Revenue and Expense Detail (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Global Network Services partner revenues | $ 260 | $ 327 | $ 350 |
Other | 1,100 | 1,130 | 1,328 |
Total Other revenues | $ 1,360 | $ 1,457 | $ 1,678 |
Non-Interest Revenue and Expe_5
Non-Interest Revenue and Expense Detail (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Details Of Certain Statements Of Income Lines Details [Abstract] | |||
Professional services | $ 2,125 | $ 2,040 | $ 2,508 |
Occupancy and equipment | 2,033 | 2,018 | 1,837 |
Gain on sale of HFS Portfolios | 0 | 0 | (1,218) |
Other | 1,513 | 1,576 | 1,815 |
Total Other, net | $ 5,671 | $ 5,634 | $ 4,942 |
Restructuring Charges (Details
Restructuring Charges (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring charges, net of revisions | $ (23) | $ 42 | $ 329 |
Restructuring Charges | 554 | ||
Restructuring Reserve | $ 69 | $ 199 | $ 383 |
Earliest Year [Member] | |||
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring Programs Initiation Date | Jan. 1, 2011 | ||
Latest Year [Member] | |||
Restructuring Charges (Textuals) [Abstract] | |||
Restructuring Programs Initiation Date | Dec. 31, 2018 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax expense: | |||
U.S. federal | $ 70 | $ 3,408 | $ 2,180 |
U.S. state and local | 150 | 259 | 272 |
Non-U.S. | 681 | 387 | 340 |
Total current income tax expense | 901 | 4,054 | 2,792 |
Deferred income tax expense (benefit): | |||
U.S. federal | 276 | 544 | (63) |
U.S. state and local | 78 | (12) | (10) |
Non-U.S. | (54) | 91 | (52) |
Total deferred income tax expense | 300 | 623 | (125) |
Income tax provision (benefit) | $ 1,201 | $ 4,677 | $ 2,667 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective tax rate reconciliation | |||
Combined tax at U.S. statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
(Decrease) increase in taxes resulting from: | |||
Tax-exempt income | (1.70%) | (1.70%) | (1.70%) |
State and local income taxes, net of federal benefit | 2.80% | 2.30% | 2.70% |
Non-U.S. subsidiaries earnings | (0.50%) | (5.70%) | (2.00%) |
Tax settlements | (1.90%) | (0.70%) | (0.60%) |
U.S. Tax Act | (1.10%) | 34.80% | 0.00% |
Other | (0.60%) | (1.00%) | (0.20%) |
U.S. Tax Act - Related adjustments | (3.20%) | 0.00% | 0.00% |
Actual tax rates | 14.80% | 63.00% | 33.20% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Reserves not yet deducted for tax purposes | $ 2,612 | $ 2,724 |
Employee compensation and benefits | 360 | 403 |
Deferred Tax Assets, Other | 431 | 409 |
Gross deferred tax assets | 3,403 | 3,536 |
Valuation allowance | (61) | (46) |
Deferred tax assets after valuation allowance | 3,342 | 3,490 |
Deferred tax liabilities: | ||
Intangibles and fixed assets | 1,083 | 1,057 |
Deferred revenue | 435 | 306 |
Deferred interest | 171 | 183 |
Investment in joint ventures | 137 | 137 |
Other | 210 | 269 |
Gross deferred tax liabilities | 2,036 | 1,952 |
Net deferred tax assets | $ 1,306 | $ 1,538 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 821 | $ 974 | $ 870 |
Increases: | |||
Current year tax positions | 152 | 200 | 167 |
Tax positions related to prior years | 47 | 39 | 117 |
Decreases: | |||
Tax positions related to prior years | (74) | (289) | (81) |
Settlements with tax authorities | (192) | (77) | (76) |
Lapse of statute of limitations | (44) | (26) | (22) |
Effects of foreign currency translations | (9) | 0 | (1) |
Balance, December 31 | $ 701 | $ 821 | $ 974 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Of Non Us Subsidiaries [Line Items] | ||||
Accumulated earnings intended to be permanently reinvested outside the U.S. | $ 700 | |||
Benefits related to the realization of certain foreign tax credits | $ 156 | |||
Decrease in tax rate related to the realization of certain foreign tax credits | 2.10% | |||
Income Taxes [Line items] | ||||
U.S. statutory federal income tax rate | 21.00% | 35.00% | 35.00% | |
Income taxes paid | $ 2,000 | $ 1,400 | $ 3,000 | |
Unrecognized tax benefits | 701 | 821 | 974 | $ 870 |
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | 151 | |||
Unrecognized tax benefits that affect effective tax rate | 599 | 723 | 516 | |
Unrecognized tax benefits income tax penalties and interest expense | (18) | (90) | 9 | |
Unrecognized tax benefits income tax penalties and interest accrued | 65 | 83 | ||
Tax positions related to prior years | (74) | (289) | $ (81) | |
U.S. Tax Act Discrete Net Charge | (100) | 2,600 | ||
U.S. Tax Act Deemed Repatriation of Taxes | 1,689 | 1,703 | ||
U.S. Tax Act Deferred Tax on distribution of foreign subs earnings | 300 | |||
U.S. Tax Act Remeasurement Of Deferred Tax Assets and Liabilities | 600 | |||
Unrecognized tax benefits that, if recognized, could impact effective tax rate | 127 | |||
Aggregate state income and foreign withholding taxes on foreign earnings | $ 100 | |||
Income Tax Examination Penalties And Interest Benefit | 56 | |||
Tax Benefits Recognized | $ 289 | |||
Earliest Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Open tax years by major tax jurisdiction | 2,015 | |||
Tax Audit Settlement Years | 2,008 | |||
Latest Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Audit Settlement Years | 2,014 |
Earnings Per Common Share (EP_3
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Basic and diluted: | ||||||||||||
Net income | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | $ (1,206) | $ 1,359 | $ 1,344 | $ 1,251 | $ 6,921 | $ 2,748 | $ 5,375 | |
Dividends Preferred Stock | (19) | (20) | (20) | (21) | (20) | (21) | (19) | (21) | (80) | (81) | (80) | |
Net income available to common shareholders | 6,841 | 2,667 | 5,295 | |||||||||
Earnings allocated to participating share awards | $ (16) | $ (13) | $ (12) | $ (13) | $ (2) | $ (11) | $ (11) | $ (10) | (54) | (21) | (43) | |
Net income attributable to common shareholders | $ 6,787 | $ 2,646 | $ 5,252 | |||||||||
Denominator: | ||||||||||||
Basic: Weighted-average common stock | 856 | 883 | 933 | |||||||||
Add: Weighted-average stock options | 3 | 3 | 2 | |||||||||
Diluted | 859 | 886 | 935 | |||||||||
Basic EPS: | ||||||||||||
Basic | [1] | $ 7.93 | $ 3 | $ 5.63 | ||||||||
Diluted EPS: | ||||||||||||
Diluted | [1] | $ 7.91 | $ 2.99 | $ 5.61 | ||||||||
Stock Option [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per Share, amount | 0.7 | 0.6 | 2.4 | |||||||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 54 million, $ 21 million and $ 43 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 80 millio n, $ 81 million and $ 80 million for the years ended December 31, 2018 , 2017 and 2016 , r e s p e c t i v e l y . |
Regulatory Matters and Capita_3
Regulatory Matters and Capital Adequacy (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Matters And Capital Adequacy [Abstract] | ||
Well-capitalized ratios | 10.00% | |
Minimum capital ratios | 8.00% | |
Leverage capital required, Well-capitalized ratios | 5.00% | |
Leverage capital required, Minimum capital ratios | 4.00% | |
Risk-based capital required, Well-capitalized ratios | 8.00% | |
Risk-based capital required, Minimum capital ratios | 6.00% | |
Common Equity Tier 1 required, Minimum capital ratio | 4.50% | |
Common Equity Tier 1 required, Well-capitalized ratios | 6.50% | |
SLR, Minimum Capital Ratio | 3.00% | |
SLR, Basel III Standards 2018 | 3.00% | |
Basel III Standards 2018 | 9.90% | |
Leverage Capital Required, Basel III Standards 2018 | 4.00% | |
Risk Based Capital Required, Basel III Standards 2018 | 7.90% | |
Common Equity Tier 1 Required, Basel III Standards 2018 | 6.40% | |
Parent Company [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 19,070 | $ 14,721 |
Total capital | $ 21,653 | $ 17,142 |
Tier 1 capital ratio | 12.00% | 10.10% |
Total capital ratio | 13.60% | 11.80% |
Tier 1 leverage ratio | 10.40% | 8.60% |
CET1 capital | $ 17,498 | $ 13,189 |
CET1 capital ratio | 11.00% | 9.00% |
SLR ratio | 8.90% | |
American Express National Bank [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 11,564 | |
Total capital | $ 13,574 | |
Tier 1 capital ratio | 12.10% | |
Total capital ratio | 14.20% | |
Tier 1 leverage ratio | 9.90% | |
CET1 capital | $ 11,564 | |
CET1 capital ratio | 12.10% | |
SLR ratio | 8.20% | |
American Express Bank, FSB [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 6,065 | |
Total capital | $ 6,653 | |
Tier 1 capital ratio | 12.90% | |
Total capital ratio | 14.20% | |
Tier 1 leverage ratio | 11.70% | |
CET1 capital | $ 6,065 | |
CET1 capital ratio | 12.90% | |
American Express Centurion Bank [Member] | ||
Regulatory capital ratios | ||
Tier 1 capital | $ 5,954 | |
Total capital | $ 6,547 | |
Tier 1 capital ratio | 12.70% | |
Total capital ratio | 14.00% | |
Tier 1 leverage ratio | 10.20% | |
CET1 capital | $ 5,954 | |
CET1 capital ratio | 12.70% |
Regulatory Matters and Capita_4
Regulatory Matters and Capital Adequacy (Details Textuals) $ in Billions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Restricted net assets of subsidiaries | $ 8.8 |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | $ 3.9 |
Capital Conservation Buffer | 1.875% |
American Express National Bank [Member] | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Dividends paid from retained earnings to its parent company | $ 5.9 |
Significant Credit Concentrat_3
Significant Credit Concentrations (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 177 | $ 170 |
Individuals [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 123 | 112 |
Financial Institutions [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 20 | 20 |
United States Government And Agencies [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 4 | 3 |
Financial Services | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 30 | $ 35 |
Significant Credit Concentrat_4
Significant Credit Concentrations (Details 1) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Card Member loans and receivables exposure | ||
On-balance sheet | $ 177 | $ 170 |
Individuals [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 123 | 112 |
Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 138 | 127 |
Unused lines-of-credit | 302 | 273 |
U.S. [Member] | Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 111 | 102 |
Unused lines-of-credit | 249 | 224 |
Non-U.S. [Member] | Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 27 | 25 |
Unused lines-of-credit | $ 53 | $ 49 |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | $ 32,675 | $ 30,427 | $ 29,659 | ||||||||
Interest income | 10,606 | 8,563 | 7,484 | ||||||||
Interest expense | 2,943 | 2,112 | 1,705 | ||||||||
Total revenues, net of interest expense | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | $ 9,707 | $ 9,290 | $ 9,172 | $ 8,709 | 40,338 | 36,878 | 35,438 |
Total provision | 3,352 | 2,760 | 2,027 | ||||||||
Pretax income | 1,831 | 2,118 | 2,091 | 2,082 | 1,798 | 1,831 | 1,957 | 1,839 | 8,122 | 7,425 | 8,042 |
Income tax provision (benefit) | 1,201 | 4,677 | 2,667 | ||||||||
Net income | 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | (1,206) | $ 1,359 | $ 1,344 | $ 1,251 | 6,921 | 2,748 | 5,375 |
Total assets | 188,602 | 181,196 | 188,602 | 181,196 | 159,000 | ||||||
Revenue from contracts with customers | 26,607 | 24,780 | 24,235 | ||||||||
Global Consumer Services Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 14,675 | 13,378 | 12,993 | ||||||||
Interest income | 8,323 | 6,789 | 6,005 | ||||||||
Interest expense | 1,542 | 1,047 | 828 | ||||||||
Total revenues, net of interest expense | 21,456 | 19,120 | 18,170 | ||||||||
Total provision | 2,430 | 1,996 | 1,390 | ||||||||
Pretax income | 3,714 | 3,645 | 4,508 | ||||||||
Income tax provision (benefit) | 637 | 1,053 | 1,469 | ||||||||
Net income | 3,077 | 2,592 | 3,039 | ||||||||
Total assets | 150,700 | 123,500 | 150,700 | 123,500 | 114,100 | ||||||
Revenue from contracts with customers | 10,294 | 9,448 | 9,386 | ||||||||
Global Commercial Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 11,882 | 10,942 | 10,373 | ||||||||
Interest income | 1,621 | 1,361 | 1,209 | ||||||||
Interest expense | 827 | 595 | 472 | ||||||||
Total revenues, net of interest expense | 12,676 | 11,708 | 11,110 | ||||||||
Total provision | 899 | 743 | 604 | ||||||||
Pretax income | 2,895 | 2,843 | 2,933 | ||||||||
Income tax provision (benefit) | 555 | 914 | 1,032 | ||||||||
Net income | 2,340 | 1,929 | 1,901 | ||||||||
Total assets | 51,800 | 49,100 | 51,800 | 49,100 | 43,300 | ||||||
Revenue from contracts with customers | 10,309 | 9,471 | 8,918 | ||||||||
Global Merchant and Network Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 6,069 | 6,025 | 6,093 | ||||||||
Interest income | 30 | 42 | 37 | ||||||||
Interest expense | (294) | (188) | (133) | ||||||||
Total revenues, net of interest expense | 6,393 | 6,255 | 6,263 | ||||||||
Total provision | 22 | 16 | 24 | ||||||||
Pretax income | 2,844 | 2,645 | 2,391 | ||||||||
Income tax provision (benefit) | 704 | 857 | 861 | ||||||||
Net income | 2,140 | 1,788 | 1,530 | ||||||||
Total assets | 44,500 | 30,600 | 44,500 | 30,600 | 25,800 | ||||||
Revenue from contracts with customers | 5,988 | 5,846 | 5,826 | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 49 | 82 | 200 | ||||||||
Interest income | 632 | 371 | 233 | ||||||||
Interest expense | 868 | 658 | 538 | ||||||||
Total revenues, net of interest expense | (187) | (205) | (105) | ||||||||
Total provision | 1 | 5 | 9 | ||||||||
Pretax income | (1,331) | (1,708) | (1,790) | ||||||||
Income tax provision (benefit) | (695) | 1,853 | (695) | ||||||||
Net income | (636) | (3,561) | (1,095) | ||||||||
Total assets | $ (59,000) | $ (23,000) | (59,000) | (23,000) | (24,200) | ||||||
Revenue from contracts with customers | $ 16 | $ 15 | $ 105 |
Reportable Operating Segements
Reportable Operating Segements and Geographic Operations (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | $ 9,707 | $ 9,290 | $ 9,172 | $ 8,709 | $ 40,338 | $ 36,878 | $ 35,438 |
Pretax income | $ 1,831 | $ 2,118 | $ 2,091 | $ 2,082 | $ 1,798 | $ 1,831 | $ 1,957 | $ 1,839 | 8,122 | 7,425 | 8,042 |
U.S. Tax Act Discrete Net Charge | (100) | 2,600 | |||||||||
United States Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 29,864 | 27,187 | 26,339 | ||||||||
Pretax income | 6,696 | 6,412 | 7,943 | ||||||||
EMEA Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 4,419 | 3,927 | 3,570 | ||||||||
Pretax income | 1,212 | 1,150 | 698 | ||||||||
JAPA Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 3,656 | 3,464 | 3,275 | ||||||||
Pretax income | 764 | 763 | 556 | ||||||||
LACC Geographic Region [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | 2,584 | 2,505 | 2,360 | ||||||||
Pretax income | 782 | 806 | 635 | ||||||||
Other Unallocated [Member] | |||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||||||||||
Total revenues net of interest expense | (185) | (205) | (106) | ||||||||
Pretax income | $ (1,332) | $ (1,706) | $ (1,790) |
Parent Company (Details)
Parent Company (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-interest revenues | |||||||||||
Other | $ 1,360 | $ 1,457 | $ 1,678 | ||||||||
Total non-interest revenues | 32,675 | 30,427 | 29,659 | ||||||||
Interest income | 10,606 | 8,563 | 7,484 | ||||||||
Interest expense | 2,943 | 2,112 | 1,705 | ||||||||
Total revenues net of interest expense | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | $ 9,707 | $ 9,290 | $ 9,172 | $ 8,709 | 40,338 | 36,878 | 35,438 |
Expenses | |||||||||||
Salaries and employee benefits | 5,250 | 5,258 | 5,259 | ||||||||
Other | 5,671 | 5,634 | 4,942 | ||||||||
Total Expenses | 28,864 | 26,693 | 25,369 | ||||||||
Pretax loss | 1,831 | 2,118 | 2,091 | 2,082 | 1,798 | 1,831 | 1,957 | 1,839 | 8,122 | 7,425 | 8,042 |
Income tax provision (benefit) | 1,201 | 4,677 | 2,667 | ||||||||
Net income | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | $ (1,206) | $ 1,359 | $ 1,344 | $ 1,251 | 6,921 | 2,748 | 5,375 |
Parent Company [Member] | |||||||||||
Non-interest revenues | |||||||||||
Other | 426 | 358 | 391 | ||||||||
Total non-interest revenues | 426 | 358 | 391 | ||||||||
Interest income | 422 | 258 | 196 | ||||||||
Interest expense | 615 | 493 | 515 | ||||||||
Total revenues net of interest expense | 233 | 123 | 72 | ||||||||
Expenses | |||||||||||
Salaries and employee benefits | 336 | 362 | 388 | ||||||||
Other | 607 | 553 | 510 | ||||||||
Total Expenses | 943 | 915 | 898 | ||||||||
Pretax loss | (710) | (792) | (826) | ||||||||
Income tax provision (benefit) | (179) | (354) | (327) | ||||||||
Net loss before equity in net income of subsidiaries and affiliates | (531) | (438) | (499) | ||||||||
Equity in net income of subsidiaries and affiliates | 7,452 | 3,186 | 5,874 | ||||||||
Net income | $ 6,921 | $ 2,748 | $ 5,375 |
Parent Company (Details 1)
Parent Company (Details 1) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 27,445 | $ 32,927 | $ 25,208 | $ 23,239 |
Investment securities | 4,647 | 3,159 | 3,157 | |
Accounts receivable, less reserves | 55,320 | 53,526 | ||
Premises and equipment, less accumulated depreciation | 4,416 | 4,329 | ||
Other assets | 10,471 | 9,746 | ||
Total assets | 188,602 | 181,196 | 159,000 | |
Liabilities and Shareholders' Equity | ||||
Long-term debt | 58,423 | 55,804 | ||
Total liabilities | 166,312 | 162,935 | ||
Shareholders' Equity | ||||
Preferred shares | 0 | 0 | ||
Common shares | 170 | 172 | ||
Additional paid-in capital | 12,218 | 12,210 | ||
Retained earnings | 12,499 | 8,307 | ||
Accumulated other comprehensive loss | (2,597) | (2,428) | ||
Total shareholders' equity | 22,290 | 18,261 | 20,523 | 20,673 |
Total liabilities and shareholders' equity | 188,602 | 181,196 | ||
Parent Company Details (Textuals) [Abstract] | ||||
Premises and equipment, accumulated depreciation | 6,015 | 5,455 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 3,287 | 4,726 | $ 5,229 | $ 6,400 |
Equity in net assets of subsidiaries and affiliates | 22,298 | 18,225 | ||
Loans to subsidiaries and affiliates | 17,945 | 11,664 | ||
Due from subsidiaries and affiliates | 1,783 | 1,962 | ||
Other assets | 297 | 361 | ||
Total assets | 45,610 | 36,938 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable and other liabilities | 1,961 | 3,076 | ||
Due to subsidiaries and affiliates | 577 | 175 | ||
Short-term debt of subsidiaries and affiliates | 2,591 | 2,731 | ||
Long-term debt | 18,191 | 12,695 | ||
Total liabilities | 23,320 | 18,677 | ||
Shareholders' Equity | ||||
Total shareholders' equity | 22,290 | 18,261 | ||
Total liabilities and shareholders' equity | $ 45,610 | $ 36,938 |
Parent Company (Details 2)
Parent Company (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | $ (1,206) | $ 1,359 | $ 1,344 | $ 1,251 | $ 6,921 | $ 2,748 | $ 5,375 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||
Premium paid on debt exchange | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 8,930 | 13,540 | 8,291 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of investments | (5,434) | (2,612) | (2,162) | ||||||||
Purchase of premises and equipment | (1,310) | (1,062) | (1,375) | ||||||||
Net cash (used in) provided by investing activities | (19,615) | (18,242) | 1,723 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from long-term borrowings | 21,524 | 32,764 | 8,824 | ||||||||
Principal payments on long term debt | (18,895) | (24,082) | (9,848) | ||||||||
Issuance of American Express common shares and other | 87 | 129 | 177 | ||||||||
Repurchase of American Express common shares | (1,600) | (4,300) | (4,400) | ||||||||
Dividends paid | (1,324) | (1,251) | (1,207) | ||||||||
Net cash provided by (used in) financing activities | 5,101 | 12,245 | (7,599) | ||||||||
Net increase (decrease) in cash and cash equivalents | (5,455) | 7,769 | 2,255 | ||||||||
Cash and cash equivalents at beginning of year | 32,927 | 25,208 | 32,927 | 25,208 | 23,239 | ||||||
Cash and cash equivalents at end of year | 27,445 | 32,927 | 27,445 | 32,927 | 25,208 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 6,921 | 2,748 | 5,375 | ||||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||
Equity in net income of subsidiaries and affiliates | (7,452) | (3,186) | (5,870) | ||||||||
Dividends received from subsidiaries and affiliates | 3,222 | 5,755 | 4,999 | ||||||||
Other operating activities, primarily with subsidiaries and affiliates | (257) | 659 | (102) | ||||||||
Net cash provided by operating activities | 2,434 | 5,976 | 4,402 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of premises and equipment | 0 | 0 | (1) | ||||||||
Loans to subsidiaries and affiliates | (6,281) | (4,044) | 4,142 | ||||||||
Investments In Subsidiaries And Affiliates | (30) | 0 | (25) | ||||||||
Net cash (used in) provided by investing activities | (6,311) | (4,044) | 4,116 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from long-term borrowings | 9,350 | 5,900 | 0 | ||||||||
Principal payments on long term debt | (3,850) | (1,500) | (1,350) | ||||||||
Short-term debt of subsidiaries and affiliates | (140) | (1,313) | (2,879) | ||||||||
Issuance of American Express common shares and other | 87 | 129 | 176 | ||||||||
Repurchase of American Express common shares | (1,685) | (4,400) | (4,430) | ||||||||
Dividends paid | (1,324) | (1,251) | (1,206) | ||||||||
Net cash provided by (used in) financing activities | 2,438 | (2,435) | (9,689) | ||||||||
Net increase (decrease) in cash and cash equivalents | (1,439) | (503) | (1,171) | ||||||||
Cash and cash equivalents at beginning of year | $ 4,726 | $ 5,229 | 4,726 | 5,229 | 6,400 | ||||||
Cash and cash equivalents at end of year | $ 3,287 | $ 4,726 | $ 3,287 | $ 4,726 | $ 5,229 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of quarterly financial data | ||||||||||||
Total revenues net of interest expense | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | $ 9,707 | $ 9,290 | $ 9,172 | $ 8,709 | $ 40,338 | $ 36,878 | $ 35,438 | |
Pretax income | 1,831 | 2,118 | 2,091 | 2,082 | 1,798 | 1,831 | 1,957 | 1,839 | 8,122 | 7,425 | 8,042 | |
Net income | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | $ (1,206) | $ 1,359 | $ 1,344 | $ 1,251 | $ 6,921 | $ 2,748 | $ 5,375 | |
Earnings per Common Share | ||||||||||||
Basic | [1] | $ 7.93 | $ 3 | $ 5.63 | ||||||||
Net income attributable to common shareholders | [2] | $ 2.33 | $ 1.89 | $ 1.85 | $ 1.86 | $ (1.42) | $ 1.51 | $ 1.48 | $ 1.36 | |||
Earnings per Common Share | ||||||||||||
Diluted | [1] | 7.91 | 2.99 | 5.61 | ||||||||
Net income attributable to common shareholders | [2] | 2.32 | 1.88 | 1.84 | 1.86 | (1.42) | 1.51 | 1.47 | 1.35 | |||
Cash dividends declared per common share | $ 0.39 | $ 0.39 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.32 | $ 0.32 | $ 1.48 | $ 1.34 | $ 1.22 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $ 54 million, $ 21 million and $ 43 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, and (ii) dividends on preferred shares of $ 80 millio n, $ 81 million and $ 80 million for the years ended December 31, 2018 , 2017 and 2016 , r e s p e c t i v e l y . | |||||||||||
[2] | Represents net income, less (i) earnings allocated to participating share awards of $ 16 million, $ 13 million, $ 12 million and $ 13 million for the quarters ended December 31, September 30, June 30 and March 31, 2018 , respectively, and $ 2 million, $ 11 million, $ 11 million and $ 10 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively, and (ii) dividend s on preferred shares of $ 19 million, $ 20 million, $ 20 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2018 , respectively, and $ 20 million, $ 21 million, $ 19 million and $ 21 million for the quarters ended December 31, September 30, June 30 and March 31, 2017 , respectively. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data (Textuals) [Abstract] | |||||||||||
Earnings allocated to participating share awards | $ 16 | $ 13 | $ 12 | $ 13 | $ 2 | $ 11 | $ 11 | $ 10 | $ 54 | $ 21 | $ 43 |
Dividends Preferred Stock | $ 19 | $ 20 | $ 20 | $ 21 | $ 20 | $ 21 | $ 19 | $ 21 | $ 80 | $ 81 | $ 80 |