Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 30, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity Registrant Name | American Express Co | ||
Entity File Number | 1-7657 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000004962 | ||
Current Fiscal Year End Date | --12-31 | ||
Title of 12(b) Security | Common Shares (par value $0.20 per Share) | ||
Trading Symbol | AXP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-4922250 | ||
Entity Address, Address Line One | 200 Vesey Street | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10285 | ||
City Area Code | 212 | ||
Local Phone Number | 640-2000 | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 102.7 | ||
Entity Common Stock, Shares Outstanding | 808,040,664 | ||
Documents Incorporated by Reference | Part III: Portions of Registrant’s Proxy Statement to be filed with the Securities and Exchange Commission in connection with the Annual Meeting of Shareholders to be held on May 5, 2020. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Non-interest revenues | ||||
Other | $ 1,430 | $ 1,360 | $ 1,457 | |
Total non-interest revenues | 34,936 | 32,675 | 30,427 | |
Interest income | ||||
Interest on loans | 11,308 | 9,941 | 8,148 | |
Interest and dividends on investment securities | 188 | 118 | 89 | |
Deposits with banks and other | 588 | 547 | 326 | |
Total interest income | 12,084 | 10,606 | 8,563 | |
Interest expense | ||||
Deposits | 1,559 | 1,287 | 779 | |
Long-term debt and other | 1,905 | 1,656 | 1,333 | |
Total interest expense | 3,464 | 2,943 | 2,112 | |
Net interest income | 8,620 | 7,663 | 6,451 | |
Total revenues net of interest expense | 43,556 | 40,338 | 36,878 | |
Provisions for losses | ||||
Charge Card | 963 | 937 | 795 | |
Card member loans | 2,462 | 2,266 | 1,868 | |
Other | 148 | 149 | 97 | |
Total provisions for losses | 3,573 | 3,352 | 2,760 | |
Total revenues net of interest expense after provisions for losses | 39,983 | 36,986 | 34,118 | |
Expenses | ||||
Marketing and business development | 7,114 | 6,470 | 5,722 | |
Card Member rewards | 10,439 | 9,696 | 8,687 | |
Card Member services | 2,222 | 1,777 | 1,392 | |
Salaries and employee benefits | 5,911 | 5,250 | 5,258 | |
Other,net | 5,868 | 5,671 | 5,634 | |
Total Expenses | 31,554 | 28,864 | 26,693 | |
Pretax income | 8,429 | 8,122 | 7,425 | |
Income tax provision | 1,670 | 1,201 | 4,677 | |
Net income | $ 6,759 | $ 6,921 | $ 2,748 | |
Earnings per Common Share | ||||
Basic (in dollars per share) | [1] | $ 8 | $ 7.93 | $ 3 |
Diluted (in dollars per share) | [1] | $ 7.99 | $ 7.91 | $ 2.99 |
Average common shares outstanding for earnings per common share: | ||||
Basic | 828 | 856 | 883 | |
Diluted | 830 | 859 | 886 | |
Discount Revenue [Member] | ||||
Non-interest revenues | ||||
Revenues and Fees | $ 26,167 | $ 24,721 | $ 22,890 | |
Net Card Fees [Member] | ||||
Non-interest revenues | ||||
Revenues and Fees | 4,042 | 3,441 | 3,090 | |
Other Fees and Commissions [Member] | ||||
Non-interest revenues | ||||
Revenues and Fees | $ 3,297 | $ 3,153 | $ 2,990 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $47 million, $54 million and $21 million for the years ended December 31, 2019, 2018 and 2017, respectively, and (ii) dividends on preferred shares of $81 million, $80 million and $81 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Earnings allocated to participating share awards | $ 12 | $ 11 | $ 13 | $ 11 | $ 16 | $ 13 | $ 12 | $ 13 | $ 47 | $ 54 | $ 21 |
Dividends on preferred Stock | $ 20 | $ 21 | $ 19 | $ 21 | $ 19 | $ 20 | $ 20 | $ 21 | $ 81 | $ 80 | $ 81 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,759 | $ 6,921 | $ 2,748 |
Other comprehensive income (loss) | |||
Net unrealized securities losses, net of tax | 41 | (8) | (7) |
Foreign currency translation adjustments, net of tax | (56) | (172) | 301 |
Net unrealized pension and other postretirement benefits, net of tax | (125) | 11 | 62 |
Other comprehensive (loss) income | (140) | (169) | 356 |
Comprehensive income | $ 6,619 | $ 6,752 | $ 3,104 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||
Cash and cash due from banks | $ 3,402 | $ 3,253 |
Interest-bearing deposits in other banks | 20,392 | 24,026 |
Short-term investment securities | 138 | 166 |
Total cash and cash equivalents | 23,932 | 27,445 |
Card Member receivables | 56,794 | 55,320 |
Card Member loans | 84,998 | 79,720 |
Other loans, less reserves | 4,626 | 3,676 |
Investment securities | 8,406 | 4,647 |
Premises and equipment | 4,834 | 4,416 |
Other assets | 14,731 | 13,378 |
Total assets | 198,321 | 188,602 |
Liabilities | ||
Customer deposits | 73,287 | 69,960 |
Accounts payable | 12,738 | 12,255 |
Short-term borrowings | 6,442 | 3,100 |
Long-term debt | 57,835 | 58,423 |
Other liabilities | 24,948 | 22,574 |
Total liabilities | 175,250 | 166,312 |
Contingencies and Commitments (Note 12) | ||
Shareholders' Equity | ||
Preferred shares issued | 0 | 0 |
Common shares | 163 | 170 |
Additional paid-in capital | 11,774 | 12,218 |
Retained earnings | 13,871 | 12,499 |
Accumulated other comprehensive loss | ||
Net unrealized securities gains (losses), net of tax | 33 | (8) |
Foreign currency translation adjustments, net of tax | (2,189) | (2,133) |
Net unrealized pension and other postretirement benefit losses, net of tax | (581) | (456) |
Total accumulated other comprehensive loss | (2,737) | (2,597) |
Total shareholders' equity | 23,071 | 22,290 |
Total liabilities and shareholders' equity | $ 198,321 | $ 188,602 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | $ 87 | $ 64 |
Card Member receivables, gross | 57,413 | 55,893 |
Card Member receivables, reserves | 619 | 573 |
Card Member loans | 87,381 | 81,854 |
Card Member loans, reserves | 2,383 | 2,134 |
Other loans, reserves | 152 | 124 |
Premises and equipment, accumulated depreciation | 6,562 | 6,015 |
Restricted cash | 514 | 363 |
Liabilities | ||
Long-term debt | $ 57,835 | $ 58,423 |
Shareholders' Equity | ||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 |
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred shares, outstanding (in shares) | 1,600 | 1,600 |
Preferred shares, issued (in shares) | 1,600 | 1,600 |
Common shares, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common shares, authorized (in shares) | 3,600,000,000 | 3,600,000,000 |
Common shares, issued (in shares) | 810,000,000 | 847,000,000 |
Common shares, outstanding (in shares) | 810,000,000 | 847,000,000 |
Accumulated other comprehensive loss | ||
Net unrealized debt securities gains (losses), tax | $ 11 | $ (1) |
Foreign currency translation adjustments, tax | (319) | (300) |
Net unrealized pension and other postretirement benefits, tax | (208) | (170) |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | ||
Card Member receivables, gross | 8,284 | 8,539 |
Card Member loans | 32,230 | 33,194 |
Restricted cash | 85 | 70 |
Liabilities | ||
Long-term debt | $ 19,668 | $ 19,509 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 6,759 | $ 6,921 | $ 2,748 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provisions for losses | 3,573 | 3,352 | 2,760 |
Depreciation and amortization | 1,188 | 1,293 | 1,321 |
Deferred taxes and other | 426 | 455 | 782 |
Stock-based compensation | 283 | 283 | 282 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other assets | (368) | 991 | 398 |
Accounts payable & other liabilities | 1,771 | (4,365) | 5,249 |
Net cash provided by operating activities | 13,632 | 8,930 | 13,540 |
Cash Flows from Investing Activities | |||
Sale of available-for-sale investment securities | 22 | 4 | |
Sale of available-for-sale investment securities | 2 | ||
Maturities and redemptions of investment securities | 7,329 | 3,499 | 2,494 |
Purchase of investments | (11,166) | (5,434) | (2,612) |
Net increase in Card Member loans and receivables, and other loans | (11,047) | (15,854) | (16,853) |
Purchase of premises and equipment | (1,645) | (1,310) | (1,062) |
Acquisitions/dispositions, net of cash acquired | (352) | (520) | (211) |
Other investing activities | 152 | 0 | 0 |
Net cash used in investing activities | (16,707) | (19,615) | (18,242) |
Cash Flows from Financing Activities | |||
Net increase in customer deposits | 3,330 | 5,542 | 11,385 |
Net increase (decrease) in short-term borrowings | 3,316 | (148) | (2,300) |
Proceeds from long-term debt | 12,706 | 21,524 | 32,764 |
Payments of long-term debt | (13,850) | (18,895) | (24,082) |
Issuance of American Express common shares | 86 | 87 | 129 |
Repurchase of American Express common shares and other | (4,685) | (1,685) | (4,400) |
Dividends paid | (1,422) | (1,324) | (1,251) |
Net cash (used in) provided by financing activities | (519) | 5,101 | 12,245 |
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash | 232 | 129 | 226 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (3,362) | (5,455) | 7,769 |
Cash. cash equivalents and restricted cash at beginning of year | 27,808 | 33,263 | 25,494 |
Cash, cash equivalents and restricted cash at end of year | $ 24,446 | $ 27,808 | $ 33,263 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Sale of premises and equipment | $ 43 | $ 1 | $ 1 |
Cash and cash equivalents per Consolidated Balance Sheets | 23,932 | 27,445 | 32,927 |
Restricted cash included in Other assets per Consolidated Balance Sheets | 514 | 363 | 336 |
Total cash, cash equivalents and restricted cash | $ 24,446 | $ 27,808 | $ 33,263 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Series B [Member] | Series C [Member] | Preferred Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Retained Earnings [Member]Series B [Member] | Retained Earnings [Member]Series C [Member] |
Beginning Balance at Dec. 31, 2016 | $ 20,523 | $ 0 | $ 181 | $ 12,733 | $ (2,784) | $ 10,393 | ||||
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 | (8) | ||||||
Cash dividends declared preferred | $ (39) | $ (42) | $ (39) | $ (42) | ||||||
Cash dividends declared common | (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 | (1,273) | (1,273) | ||||||||
Ending Balance at Dec. 31, 2018 | 22,290 | 0 | 170 | 12,218 | (2,597) | 12,499 | ||||
Net income | 6,759 | 6,759 | ||||||||
Other comprehensive (loss) income | (140) | (140) | 0 | |||||||
Repurchase of common shares | (4,585) | (8) | (671) | (3,906) | ||||||
Other changes, primarily employee plans | 186 | 1 | 227 | (42) | ||||||
Cash dividends declared preferred | $ (39) | $ (42) | $ (39) | $ (42) | ||||||
Cash dividends declared common | (1,358) | (1,358) | ||||||||
Ending Balance at Dec. 31, 2019 | $ 23,071 | $ 0 | $ 163 | $ 11,774 | $ (2,737) | $ 13,871 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash dividends declared | |||
Common stock, dividend per share (in dollars per share) | $ 1.64 | $ 1.48 | $ 1.34 |
Series B [Member] | |||
Cash dividends declared | |||
Preferred stock, dividend per share (in dollars per share) | 52 | 52 | 52 |
Series C [Member] | |||
Cash dividends declared | |||
Preferred stock, dividend per share (in dollars per share) | $ 49 | $ 49 | $ 49 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE C OMPANY We are a globally integrated payments company that provides our customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are credit and charge card products, along with travel and lifestyle related services, offered to consumers and businesses around the world. Business travel-related services are offered through the non-consolidated joint venture, American Express Global Business Travel. Our various products and services are sold globally to diverse customer groups, including consumers, small businesses, mid-sized companies and large corporations. These products and services are sold through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party vendors and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. Effective for the first quarter of 2019, we moved intercompany assets and liabilities, previously recorded in the operating segments, to Corporate & Other. Prior period amounts have been revised to conform to the current period presentation. Refer to Note 24 for additional discussion of the products and services that comprise each segment. Corporate functions and certain other businesses and operations are included in Corporate & Other. PRINCIPLES OF 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 consolidate entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlling 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 controlling financial interest when we are determined to be the primary beneficiary. A primary beneficiary 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 potentially 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 also 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 and 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 4 for the accounting policy for our marketable equity securities. FOREIGN CURRENCY Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end 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 included 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 in Other, net expenses in the Consolidated Statements of Income. AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on loans and receivables, 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 Members. 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 merchant’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 agreements, 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 periods, which typically range from three In cases where the merchant acquirer is a third party (which is the case, for example, under our OptBlue program, or with certain of our GNS partners), we receive a network rate fee in our settlement with the merchant acquirer, which is individually negotiated between us and that merchant acquirer and is 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. 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) is not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-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 to Note 9). 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 Consolidated 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 18 for additional information. Contra-revenue Payments made pursuant to contractual arrangements with our merchants, GNS partners, and other customers are classified as contra-revenue, except where we receive goods, services 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 primarily relate to our performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments will not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on our long-term debt and short-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on our long-term debt. Marketing and Business Development Marketing and business development expense includes costs incurred in the development and initial placement of advertising, which are expensed in the year in which the advertising first takes place. Also included in Marketing and business development expense are payments to our cobrand partners, Card Member statement credits for qualifying charges on eligible card accounts, corporate incentive payments earned on achievement of pre-set 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 estimated 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 Statement of Income. 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 the 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 assessment 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 reporting 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 considerations, 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 then perform the impairment evaluation using the quantitative assessment. Under the quantitative assessment, the first step identifies whether there is a potential impairment by comparing the fair value of a reporting unit to the carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds the fair value, then a test is performed to determine the implied fair value of goodwill. An impairment loss is recognized based on the amount that the carrying amount of goodwill exceeds the implied fair value. When measuring the fair value of 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 multiples). 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, determined 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 years ended December 31, 2019 and 2018, 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 each of our reporting units exceeded their carrying values. Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at the acquisition date. 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. 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 range from 5 to 10 years. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. Leases On January 1, 2019, we adopted the new accounting guidance on leases using the modified retrospective method. We elected the package of practical expedients and transition provisions allowing us to bring our existing operating leases onto the Consolidated Balance Sheet on January 1, 2019 without adjusting comparative periods. The adoption of the new lease guidance did not have a material impact on our financial position, results of operations and cash flows. We have operating leases worldwide for facilities and equipment, which, for those leases with terms greater than 12 months, are recorded as lease-related assets and liabilities. We do not separate lease and non-lease components. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs and lease incentives. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. OTHER SIGNIFICANT ACCOUNTING POLICIES The following table identifies our other significant accounting policies, along with the related Note. Significant Accounting Policy Note Note Title Loans and Accounts Receivable Note 2 Loans and Accounts Receivable Reserves for Losses Note 3 Reserves for Losses Investment Securities Note 4 Investment Securities Asset Securitizations Note 5 Asset Securitizations Legal Contingencies Note 12 Contingencies and Commitments Derivative Financial Instruments and Hedging Activities Note 13 Derivatives and Hedging Activities Fair Value Measurements Note 14 Fair Values Guarantees Note 15 Guarantees Income Taxes Note 20 Income Taxes CLASSIFICATION OF VARIOUS ITEMS Certain reclassifications of prior period amounts have been made to conform to the current period presentation. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance for the recognition of credit losses on certain financial instruments. The guidance, as amended and effective January 1, 2020, introduces a new credit reserving methodology known as the Current Expected Credit Loss (CECL) approach, which differs significantly from the incurred loss approach used through December 31, 2019 and alters the estimation process, inputs and assumptions used in estimating credit losses. The CECL methodology requires measurement of expected credit losses for the estimated life of the financial instrument, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. Our approach incorporates separate reasonable and supportable periods for loans and receivables and uses a weighted average of multiple future economic scenarios. Additionally, the guidance requires a modified retrospective transition, which records the difference between the reserves measured using the CECL methodology and the reserves using the incurred loss approach, tax effected, as a cumulative effect adjustment upon adoption through retained earnings. As a result, our financial position, results of operations and regulatory risk-based capital for periods prior to January 1, 2020 will not be restated. We currently estimate an increase to total loan reserves of approximately $1.7 billion and a decrease to total receivable reserves of approximately $0.5 billion, along with the associated current and deferred tax impact of approximately $0.3 billion, and an offset to the opening balance of retained earnings, net of tax, of approximately $0.9 billion as of January 1, 2020. Our cross-functional implementation team is finalizing our operational processes, controls and governance. In addition, for available-for-sale debt securities, the new guidance replaces the other-than-temporary impairment model and requires the recognition of an allowance for reductions in a security’s fair value attributable to declines in credit quality, instead of a direct write-down of the security, when a valuation decline is determined to be other-than-temporary. We have completed our evaluation of the new guidance for our available-for-sale debt securities and, while there was no impact of the new guidance on adoption, we have updated our processes to evaluate and measure potential future credit losses. |
Loans and Accounts Receivable
Loans and Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Accounts Receivable | LOANS AND ACCOUNTS RECEIVABLE Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. 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 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 the amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 3), 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 reserves for interest that we believe will not be collected. Other loans are recorded at the time any extension of credit is provided to consumer and commercial customers for non-card financing products. These loans have a range of fixed terms such as interest rates, fees and repayment periods. Borrowers are typically required to make pre-established monthly payments over the term of the loan. Non-card financing products are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans are presented on the Consolidated Balance Sheets net of reserves for losses, and include principal and any related accrued interest and fees. Card Member loans by segment and Other loans as of December 31, 2019 and 2018 consisted of: (Millions) 2019 2018 Global Consumer Services Group (a) $ 73,266 $ 69,458 Global Commercial Services 14,115 12,396 Card Member loans 87,381 81,854 Less: Reserve for losses 2,383 2,134 Card Member loans, net $ 84,998 $ 79,720 Other loans, net (b) $ 4,626 $ 3,676 (a) Includes approximately $32.2 billion and $33.2 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2019 and 2018, respectively. (b) Other loans primarily represent consumer and commercial non-card financing products. Other loans are presented net of reserves for losses of $152 million and $124 million as of December 31, 2019 and 2018, respectively. CARD MEMBER RECEIVABLES Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. 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 3), and include principal and any related accrued fees. Card Member receivables by segment as of December 31, 2019 and 2018 consisted of: (Millions) 2019 2018 Global Consumer Services Group (a) $ 22,844 $ 21,455 Global Commercial Services 34,569 34,438 Card Member receivables 57,413 55,893 Less: Reserve for losses 619 573 Card Member receivables, net $ 56,794 $ 55,320 (a) Includes $8.3 billion and $8.5 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2019 and 2018, 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, 2019 and 2018: 2019 (millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 72,101 $ 322 $ 253 $ 590 $ 73,266 Global Commercial Services Global Small Business Services 13,898 56 40 85 14,079 Global Corporate Payments (a) (b) (b) (b) — 36 Card Member Receivables: Global Consumer Services Group 22,560 86 58 140 22,844 Global Commercial Services Global Small Business Services $ 17,113 $ 99 $ 58 $ 134 $ 17,404 Global Corporate Payments (a) (b) (b) (b) $ 136 $ 17,165 2018 (millions) Current 30-59 60-89 90+ 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 (a) 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). (b) Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. CREDIT QUALITY INDICATORS FOR CARD MEMBER LOANS AND RECEIVABLES The following tables present the key credit quality indicators as of or for the years ended December 31: 2019 2018 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest, & Fees (a) 30+ Principal Only (a) Principal, Interest, & Fees (a) 30+ Card Member Loans: Global Consumer Services Group 2.3 % 2.8 % 1.6 % 2.1 % 2.5 % 1.5 % Global Small Business Services 1.9 % 2.2 % 1.3 % 1.7 % 2.0 % 1.3 % Card Member Receivables: Global Consumer Services Group 1.7 % 1.9 % 1.2 % 1.6 % 1.8 % 1.2 % Global Small Business Services 1.9 % 2.1 % 1.7 % 1.7 % 2.0 % 1.6 % 2019 2018 Net Loss 90+ Net Loss 90+ Card Member Receivables: Global Corporate Payments 0.08 % 0.8 % 0.11 % 0.7 % (a) 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 3 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 modified 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, with such accounts identified as “Out of Program TDRs.” Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is 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 canceled, 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 contractual terms (including the contractual interest rate) when the Card Member exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or, (ii) when the Card Member defaults out of the modification program. We establish a reserve for Card Member interest charges and fees considered to be uncollectible. Reserves for Card Member loans and receivables modified as TDRs are determined as the difference between the cash flows expected to be received from the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying value of the related Card Member loan or receivables balance. We determine the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are included in Provisions for losses in the Consolidated Statements of Income. The following tables provide additional information with respect to our impaired Card Member loans and receivables as of December 31, 2019, 2018 and 2017. Impaired Card Member loans and receivables outside the U.S. are not significant as of December 31, 2019, 2018 and 2017; therefore, such loans and receivables are not included in the following tables unless otherwise noted. As of December 31, 2019 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) $ 384 $ 284 $ 500 $ 175 $ 1,343 $ 1,199 $ 137 Global Commercial Services 44 54 97 38 233 220 22 Card Member Receivables: Global Consumer Services Group — — 56 16 72 72 3 Global Commercial Services — — 109 30 139 138 6 Total $ 428 $ 338 $ 762 $ 259 $ 1,787 $ 1,629 $ 168 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 (a) 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. (b) 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. (c) Accounts classified as a TDR include $26 million, $17 million and $15 million that are over 90 days past due and accruing interest and $10 million, $6 million and $5 million that are non-accruals as of December 31, 2019, 2018 and 2017, respectively. (d) In Program TDRs include Card Member accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $188 million, $148 million and $141 million of Card Member accounts that have successfully completed a modification program and $72 million, $50 million and $45 million of Card Member accounts that were not in compliance with the terms of the modification programs as of December 31, 2019, 2018 and 2017, respectively. (f) GCSG includes balances outside the U.S. of $93 million, $69 million and $56 million that are over 90 days and accruing interest and $77 million, $68 million and $55 million in unpaid principal as of December 31, 2019, 2018 and 2017, respectively. The following table provides information with respect to our average balances and interest income recognized from impaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: 2019 (Millions) Average Balance Interest Income Recognized Card Member Loans: Global Consumer Services Group $ 1,159 $ 136 Global Commercial Services 203 25 Card Member Receivables: Global Consumer Services Group 56 — Global Commercial Services 112 — Total $ 1,530 $ 161 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 2017 (Millions) Average Balance Interest Income 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 CARD MEMBER LOANS AND RECEIVABLES MODIFIED AS TDRs The following table provides additional information with respect to Card Member loans and receivables modified as TDRs for the years ended December 31: 2019 Number of Accounts Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 78 $ 602 13 (b) Card Member Receivables 9 210 (c) 26 Total 87 $ 812 2018 Number of Accounts Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 51 $ 377 12 (b) Card Member Receivables 6 110 (c) 28 Total 57 $ 487 2017 Number of Accounts Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 33 $ 224 10 (b) Card Member Receivables 6 83 (c) 28 Total 39 $ 307 (a) 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. (b) For Card Member loans, there have been no payment term extensions. (c) 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 Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification for the years ended December 31, 2019, 2018 and 2017. A Card Member is considered in default of a modification program after one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. 2019 Number of Accounts Aggregated Outstanding Balances Upon Default (a) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 12 $ 86 Card Member Receivables 4 20 Total 16 $ 106 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 (a) 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, 2019 | |
Receivables [Abstract] | |
Reserve for Losses | 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 judgments regarding the quantitative 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 credit, 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 receivables 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, or 120 days past due for closed-end loans categorized as Other loans. Card Member loans and receivables and Other loans 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) 2019 2018 2017 Balance, January 1 $ 2,134 $ 1,706 $ 1,223 Provisions (a) 2,462 2,266 1,868 Net write-offs (b) Principal (1,860) (1,539) (1,181) Interest and fees (375) (304) (227) Other (c) 22 5 23 Balance, December 31 $ 2,383 $ 2,134 $ 1,706 (a) Provisions for principal, interest and fee reserve components. (b) Principal write-offs are presented less recoveries of $525 million, $444 million and $409 million for the years ended December 31, 2019, 2018 and 2017, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(79) million, $(33) million and $(30) million for the years ended December 31, 2019, 2018 and 2017, respectively. (c) Includes foreign currency translation adjustments of $4 million, $(11) million and $8 million, and other adjustments of $18 million, $16 million and $15 million for the years ended December 31, 2019, 2018 and 2017, respectively. CARD MEMBER LOANS EVALUATED INDIVIDUALLY AND COLLECTIVELY FOR IMPAIRMENT The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of December 31: (Millions) 2019 2018 2017 Card Member loans evaluated individually for impairment (a) $ 810 $ 532 $ 367 Related reserves (a) $ 159 $ 94 $ 57 Card Member loans evaluated collectively for impairment (b) $ 86,571 $ 81,322 $ 73,032 Related reserves (b) $ 2,224 $ 2,040 $ 1,649 (a) Represents loans modified as a TDR and related reserves. (b) 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) 2019 2018 2017 Balance, January 1 $ 573 $ 521 $ 467 Provisions (a) 963 937 795 Net write-offs (b) (900) (859) (736) Other (c) (17) (26) (5) Balance, December 31 $ 619 $ 573 $ 521 (a) Provisions for principal and fee reserve components. (b) Net write-offs are presented less recoveries of $374 million, $367 million and $366 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amounts include net recoveries (write-offs) from TDRs of $(16) million, nil and $2 million, for the years ended December 31, 2019, 2018 and 2017, respectively. (c) Includes foreign currency translation adjustments of nil, $(6) million and $12 million, and other adjustments of $(17) million, $(20) million and $(17) million for the years ended December 31, 2019, 2018 and 2017, 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) 2019 2018 2017 Card Member receivables evaluated individually for impairment (a) $ 211 $ 128 $ 80 Related reserves (a) $ 9 $ 7 $ 3 Card Member receivables evaluated collectively for impairment $ 57,202 $ 55,765 $ 53,967 Related reserves (b) $ 610 $ 566 $ 518 (a) Represents receivables modified as a TDR and related reserves. (b) 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, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Investment securities 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. Realized gains and losses are recognized upon disposition of available-for-sale securities using the specific identification method. Refer to Note 14 for a description of our methodology for determining the fair value of investment securities. The following is a summary of investment securities as of December 31: 2019 2018 2017 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 236 $ 8 $ (1) $ 243 $ 594 $ 4 $ (2) $ 596 $ 1,369 $ 11 $ (3) $ 1,377 U.S. Government agency obligations 9 — — 9 10 — — 10 11 — — 11 U.S. Government treasury obligations 7,395 35 (1) 7,429 3,452 5 (17) 3,440 1,051 3 (9) 1,045 Corporate debt securities 27 — — 27 28 — — 28 28 — — 28 Mortgage-backed securities (a) 39 2 — 41 50 1 — 51 67 2 — 69 Foreign government bonds and obligations 578 1 — 579 474 — — 474 581 — — 581 Equity securities (b) 55 25 (c) (2) 78 51 — (3) 48 51 — (3) 48 Total $ 8,339 $ 71 $ (4) $ 8,406 $ 4,659 $ 10 $ (22) $ 4,647 $ 3,158 $ 16 $ (15) $ 3,159 (a) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (b) Equity securities comprise investments in common stock, exchange-traded funds and mutual funds. (c) During 2019, an equity investment transferred from Other assets to Investment securities following the completion of an initial public offering by the issuer of the securities. The investment had a fair value of $28 million with an associated cost of $3 million as of December 31, 2019. The gross unrealized gains include $9 million that were recognized during 2018. The following table provides information about our investment securities with gross unrealized losses and the length of time that individual securities have been in an unrealized loss position as of December 31: 2019 2018 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized State and municipal obligations $ 18 $ (1) $ — $ — $ — $ — $ 82 $ (1) U.S. Government treasury obligations — — 324 (1) 224 (2) 791 (15) Total $ 18 $ (1) $ 324 $ (1) $ 224 $ (2) $ 873 $ (16) 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 Estimated Gross Number of Estimated Gross Number of Estimated Gross 2019: 90%–100% 2 $ 18 $ (1) 3 $ 324 $ (1) 5 $ 342 $ (2) Total as of December 31, 2019 2 $ 18 $ (1) 3 $ 324 $ (1) 5 $ 342 $ (2) 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) The gross unrealized losses for available-for-sale debt securities are attributed to wider credit spreads for specific issuers, adverse changes in benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were purchased. Overall, for the available-for-sale debt securities in gross unrealized loss positions, (i) we do not 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 losses, and (iii) we expect that the contractual principal and interest will be received on the securities. As a result, we recognized no other-than-temporary impairment during the periods presented. Weighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2019 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) $ 6 $ 39 $ 30 $ 168 $ 243 U.S. Government agency obligations (a) — — — 9 9 U.S. Government treasury obligations 6,019 1,270 140 — 7,429 Corporate debt securities 5 22 — — 27 Mortgage-backed securities (a) — — — 41 41 Foreign government bonds and obligations 577 1 1 — 579 Total Estimated Fair Value $ 6,607 $ 1,332 $ 171 $ 218 $ 8,328 Total Cost $ 6,602 $ 1,307 $ 166 $ 209 $ 8,284 Weighted average yields (b) 2.17 % 2.27 % 3.01 % 3.99 % 2.25 % (a) The expected payments on state and municipal obligations, U.S. government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. (b) 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, 2019 | |
Asset Securitizations [Abstract] | |
Asset Securitizations | 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 they 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 perform the servicing and key decision making for 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, 2019 and 2018, our ownership of variable interests was $12.9 billion and $15.5 billion, respectively, for the Lending Trust and $8.3 billion and $7.0 billion, respectively, for the Charge Trust. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts 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, respectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 2). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 8). The following table provides information on the restricted cash held by the Trusts as of December 31, 2019 and 2018, included in Other assets on the Consolidated Balance Sheets: (Millions) 2019 2018 Lending Trust $ 85 $ 67 Charge Trust — 3 Total $ 85 $ 70 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, 2019, no such triggering events occurred. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | OTHER ASSETS The following is a summary of Other assets as of December 31: (Millions) 2019 2018 Goodwill $ 3,315 $ 3,072 Other intangible assets, at amortized cost 267 275 Other (a) 11,149 10,031 Total $ 14,731 $ 13,378 (a) Primarily includes other receivables net of reserves, investments in non-consolidated entities, prepaid expenses, net deferred tax assets, tax credit investments, right-of-use lease assets and restricted cash. Restricted cash represents amounts available to settle obligations related to certain Card Member credit balances and customer deposits, as well as coupon and maturity obligations of consolidated VIEs. GOODWILL The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows: (Millions) GCSG GCS GMNS Total 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 Acquisitions 189 66 — 255 Dispositions — — — — Other (a) (7) (3) (2) (12) Balance as of December 31, 2019 $ 889 $ 1,781 $ 645 $ 3,315 (a) Primarily includes foreign currency translation. Accumulated impairment losses were $221 million as of both December 31, 2019 and 2018. OTHER INTANGIBLE ASSETS Intangible assets are amortized on a straight-line basis over their 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 for other intangible assets as of December 31, 2019 and 2018 was $704 million and $702 million, respectively, with accumulated amortization of $437 million and $427 million, respectively. Amortization expense, which is recorded within Other expense in the Consolidated Statements of Income, was $49 million, $212 million and $207 million for the years ended December 31, 2019, 2018 and 2017, respectively. TAX CREDIT INVESTMENTS We account for our tax credit investments, including Qualified Affordable Housing (QAH) investments, using the equity method of accounting. As of December 31, 2019 and 2018, we had $1,154 million and $1,043 million in tax credit investments, respectively, included in Other assets on the Consolidated Balance Sheets, of which $1,109 million and $1,006 million, respectively, related to QAH investments. Included in QAH investments as of December 31, 2019 and 2018, we had $1,032 million and $936 million, respectively, related to investments in unconsolidated VIEs for which we do not have a controlling financial interest. As of December 31, 2019, we committed to provide funding related to certain of these QAH investments, which is expected to be paid between 2020 and 2043, resulting in $211 million in unfunded commitments reported in Other liabilities, of which $187 million specifically related to unconsolidated VIEs. In addition, as of December 31, 2019 we had contractual off-balance sheet obligations, which were not deemed probable of being drawn, to provide additional funding up to $78 million for these QAH investments, fully related to unconsolidated VIEs. During the years ended December 31, 2019 and 2018, we recognized equity method losses related to our QAH investments of $101 million and $126 million, respectively, which were recognized in Other, net expenses; and associated tax credits of $119 million and $97 million, respectively, recognized in Income tax provision. |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Customer Deposits | CUSTOMER DEPOSITS As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2019 2018 U.S.: Interest-bearing $ 72,445 $ 69,144 Non-interest-bearing (includes Card Member credit balances of: 2019, $389 million; 2018, $376 million) 415 412 Non-U.S.: Interest-bearing 23 28 Non-interest-bearing (includes Card Member credit balances of: 2019, $401 million; 2018, $367 million) 404 376 Total customer deposits $ 73,287 $ 69,960 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2019 2018 U.S. retail deposits: Savings accounts ― Direct $ 46,394 $ 39,491 Certificates of deposit: (a) Direct 1,854 817 Third-party (brokered) 8,076 12,667 Sweep accounts ―Third-party (brokered) 16,121 16,169 Other deposits: U.S. non-interest-bearing deposits 26 36 Non-U.S. deposits 26 37 Card Member credit balances ― U.S. and non-U.S. 790 743 Total customer deposits $ 73,287 $ 69,960 (a) The weighted average remaining maturity and weighted average interest rate at issuance on the total portfolio of U.S. retail certificates of deposit issued through direct and third-party programs were 48 months and 2.53 percent, respectively, as of December 31, 2019. The scheduled maturities of certificates of deposit as of December 31, 2019 were as follows: (Millions) U.S. Non-U.S. Total 2020 $ 4,618 $ 14 $ 4,632 2021 2,302 — 2,302 2022 2,385 — 2,385 2023 374 — 374 2024 251 — 251 After 5 years — — — Total $ 9,930 $ 14 $ 9,944 As of December 31, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2019 2018 U.S. $ 622 $ 276 Non-U.S. 4 9 Total $ 626 $ 285 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 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: 2019 2018 (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) $ 3,001 1.94 % $ 752 2.71 % Other short-term borrowings (c) 3,441 1.28 2,348 1.94 Total $ 6,442 1.59 % $ 3,100 2.13 % (a) For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2019 and 2018. (b) Average commercial paper outstanding was $299 million and $228 million in 2019 and 2018, respectively. (c) 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, 2022. The facility was undrawn as of both December 31, 2019 and 2018. We paid $7.7 million and $7.8 million in fees to maintain the secured borrowing facility in 2019 and 2018, respectively. The committed facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the facility, nor is it dependent on 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: 2019 2018 (Millions, except percentages) Original 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 Fixed Rate Senior Notes 2020 - 2042 $ 19,326 3.17 % 2.86 % $ 14,043 3.48 % 3.64 % Floating Rate Senior Notes 2020 - 2023 4,500 3.16 — 3,600 3.17 — Fixed Rate Subordinated Notes 2024 598 3.63 2.99 598 3.63 3.66 American Express Credit Corporation Fixed Rate Senior Notes 2020 - 2027 11,839 2.40 2.56 16,677 2.28 3.06 Floating Rate Senior Notes 2020 - 2022 1,650 3.36 — 3,800 3.31 — American Express Lending Trust Fixed Rate Senior Notes 2020 - 2023 15,074 2.42 2.43 12,474 2.28 — Floating Rate Senior Notes 2021 - 2023 4,125 2.74 — 5,125 2.80 — Fixed Rate Subordinated Notes 2020 - 2022 420 2.53 — 240 2.37 — Floating Rate Subordinated Notes 2022 - 2023 79 2.45 — 167 2.96 — American Express Charge Trust II Floating Rate Conduit Borrowings — — — 1,535 2.89 — Other Finance Leases 2024 - 2033 25 5.65 — 19 5.54 — Floating Rate Borrowings 2020 - 2022 311 0.40 — % 262 0.42 — % Unamortized Underwriting Fees (112) (117) Total Long-Term Debt $ 57,835 2.78 % $ 58,423 2.77 % (a) 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. Refer to Note 13 for more details on our treatment of fair value hedges. (b) 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, 2019 and 2018. (c) Interest rates with swaps are only presented when swaps are in place to hedge the underlying debt. The interest rates with swaps are weighted based on the outstanding principal balances and the interest rates on the floating leg of the swaps in effect as of December 31, 2019 and 2018. Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2019 were as follows: (Millions) 2020 2021 2022 2023 2024 Thereafter Total American Express Company (Parent Company only) $ 2,000 $ 5,000 $ 5,675 $ 4,350 $ 5,000 $ 2,872 $ 24,897 American Express Credit Corporation 6,600 2,864 2,050 — — 2,000 13,514 American Express Lending Trust 6,924 3,709 6,381 2,685 — — 19,699 Other 91 137 82 — 15 11 336 $ 15,615 $ 11,710 $ 14,188 $ 7,035 $ 5,015 $ 4,883 $ 58,446 Unamortized Underwriting Fees (112) Unamortized Discount and Premium (716) Impacts due to Fair Value Hedge Accounting 217 Total Long-Term Debt $ 57,835 We maintained a bank line of credit of $3.5 billion as of December 31, 2019 and 2018, all of which was undrawn as of the respective dates. 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, 2019 and 2018, 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, 2022. As of December 31, 2019 and 2018, nil and $1.5 billion, respectively, were drawn on this facility. We paid $16.5 million and $14.2 million in fees to maintain these lines in 2019 and 2018, respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are 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 $3.4 billion, $2.7 billion and $2.0 billion in 2019, 2018 and 2017, respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | OTHER LIABILITIES The following is a summary of Other liabilities as of December 31: (Millions) 2019 2018 Membership Rewards liability $ 8,892 $ 8,414 Employee-related liabilities (a) 2,429 2,164 Card Member rebate and reward accruals (b) 1,790 1,596 Income tax liability (c) 1,122 1,079 Other (d) 10,715 9,321 Total $ 24,948 $ 22,574 (a) Employee-related liabilities include employee benefit plan obligations and incentive compensation. (b) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. (c) Includes repatriation tax liability of $1,012 million and $1,689 million as of December 31, 2019 and 2018, respectively, which represents our remaining obligation under the Tax Cuts and Jobs Act enacted on December 22, 2017 (Tax Act) to pay a one-time transition tax on unrepatriated earnings and profits of certain foreign subsidiaries. (d) Primarily includes Travelers Cheques and other prepaid products, net deferred card and other fees, book overdraft balances, lease liabilities, client incentives, restructuring and reengineering reserves, dividends payable, and derivative and hedge liabilities. 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 Rewards 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) 2019 2018 Deferred card and other fees (a) $ 2,532 $ 2,208 Deferred direct acquisition costs (270) (282) Reserves for membership cancellations (200) (167) Deferred card and other fees, net $ 2,062 $ 1,759 (a) Includes deferred fees for Membership Rewards program participants. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | STOCK PLANS STOCK OPTION AND AWARD PROGRAMS Under our 2016 Incentive Compensation Plan and previously under our 2007 Incentive Compensation Plan (collectively, Incentive Compensation Plans), 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 units or awards (collectively referred to as RSUs), portfolio grants (PGs) or other incentives or similar awards designed to meet the requirements of non-U.S. jurisdictions. For our Incentive Compensation Plans, there were a total of 9 million, 12 million and 14 million common shares unissued and available for grant as of December 31, 2019, 2018, and 2017, respectively, as authorized by our Board of Directors and shareholders. We generally issue new common shares upon exercise of options and vesting of RSUs. Stock-based compensation expense recognized in Salaries and employee benefits in the Consolidated Statements of Income was $280 million, $288 million and $283 million in 2019, 2018, and 2017, respectively, with corresponding income tax benefits of $67 million, $69 million, and $102 million in those respective periods. A summary of stock option and RSU activity as of December 31, 2019, and corresponding changes during the year, are as follows: Stock Options Service-Based RSUs Service and Performance-Based RSUs (Shares in thousands) Shares Weighted-Average Shares Weighted- Shares Weighted- Outstanding as of December 31, 2018 5,484 $ 64.73 2,544 $ 80.15 4,022 $ 74.22 Granted 408 101.43 1,041 103.93 1,358 90.34 Exercised/vested (1,626) 51.92 (1,001) 76.07 (1,819) 58.28 Forfeited (94) 92.19 (172) 89.79 (169) 93.74 Expired — — — — — — Outstanding as of December 31, 2019 4,172 72.70 2,412 $ 91.42 3,392 $ 88.25 Options vested and expected to vest as of December 31, 2019 4,171 72.70 Options exercisable as of December 31, 2019 2,357 $ 61.15 The cost of employee stock awards granted in exchange for employee services is generally recognized ratably based on the grant-date fair value of the award, net of expected forfeitures, over the vesting period. The vesting period is the shorter of the vesting schedule as defined in each award agreement or the date an individual will become eligible to retire. Retirement eligibility is dependent upon age and/or years of service. 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 on the third anniversary of the grant date and have a contractual term of 10 years from the date of grant. The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock price exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2019, were as follows: Outstanding Exercisable Vested and Weighted-average remaining contractual life (in years) 5.3 4.0 5.3 Aggregate intrinsic value (millions) $ 216 $ 149 $ 216 As of December 31, 2019, there was $7 million of total unrecognized compensation cost related to unvested options, which will be recognized ratably over the weighted-average remaining vesting period of 1.2 years. 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 2019, 2018 and 2017: 2019 2018 2017 Dividend yield 1.5 % 1.4 % 1.8 % Expected volatility (a) 24 % 22 % 24 % Risk-free interest rate 2.6 % 2.7 % 2.3 % Expected life of stock option ( in years ) (b) 7.1 7.1 6.9 Weighted-average fair value per option $ 23.38 $ 23.17 $ 18.18 (a) The expected volatility is based on both weighted historical and implied volatilities of our common stock price. (b) 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 granted stock options with a term of seven years, and include a three 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 (a) The expected volatility is based on both weighted historical and implied volatilities of our common stock price. For stock options that were exercised during 2019, 2018 and 2017, the intrinsic value, based upon the fair value of our stock price at the date the options were exercised, was $104 million, $104 million and $197 million, respectively; cash received from the exercise of stock options was $84 million, $87 million and $130 million during those respective periods. The income tax benefit recognized in the Consolidated Statements of Income related to stock option exercises was $18 million, $18 million and $59 million in 2019, 2018 and 2017, respectively. RESTRICTED STOCK UNITS/AWARDS We grant RSUs that contain either a) service conditions or b) both service and performance conditions. RSUs containing only service conditions generally vest 25 percent per year beginning with the first anniversary of the grant date. 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 RSU holders receive non-forfeitable dividends or dividend equivalents. We added a relative total shareholder return (r-TSR) modifier to the performance-based RSUs that were granted in 2019, so that our actual shareholder return relative to a competitive peer group is one of the performance conditions that determines the number of shares ultimately granted upon vesting. The fair value of RSUs that do not include the r-TSR modifier, including those that contain only service conditions, is measured using our stock price on the grant date. The fair value of service and performance-based RSUs that include the r-TSR modifier is determined using a Monte Carlo valuation model with the following weighted-average assumptions: 2019 Expected volatility (a) 20 % Risk-free interest rate 2.5 % Remaining performance period (in years) 2.9 (a) The expected volatility is based on historical volatility of our common stock price. As of December 31, 2019, there was $195 million of total unrecognized compensation cost related to non-vested RSUs, which will be recognized ratably over the weighted-average remaining vesting period of 2.1 years. The weighted-average grant date fair value of RSUs granted in 2019, 2018 and 2017 was $96.24, $98.20 and $77.80, respectively. For RSUs vested during 2019, 2018 and 2017, the total fair value, based upon our stock price at the date the RSUs vested, was $286 million, $239 million and $180 million, respectively. LIABILITY-BASED AWARDS In 2018 and 2017, certain employees were awarded PGs and other incentive awards that can be settled with cash or equity shares at our discretion, and final Compensation and Benefits Committee payout approval; beginning in 2019, we discontinued granting PGs. These awards earn value based on performance, market and/or service conditions, and vest over periods of one to three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. Cash paid upon vesting of these awards in 2019, 2018 and 2017 was $81 million, $56 million and $48 million, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 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 $278 million, $272 million and $349 million in 2019, 2018 and 2017, respectively. DEFINED 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 accrue 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 also sponsor unfunded other postretirement benefit plans that provide health care and life insurance to certain retired U.S. employees. For these plans, the total net benefit was $8 million and $0.4 million in 2019 and 2018, respectively, and the total net expense was $25 million in 2017. We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the Consolidated Balance Sheets. As of December 31, 2019 and 2018, the unfunded status related to the defined benefit pension plans and other postretirement benefit plans was $640 million and $563 million, respectively, and is recorded in Other liabilities. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | 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). Based on our current knowledge, and taking into consideration our litigation-related liabilities, we do not believe we are 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, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described below. A putative merchant class action in the Eastern District of New York, consolidated in 2011 and collectively captioned In re: American Express Anti-Steering Rules Antitrust Litigation (II) , alleged that provisions in our merchant agreements prohibiting merchants from differentially surcharging our cards or steering a customer to use another network’s card or another type of general-purpose card (“anti-steering” and “non-discrimination” contractual provisions) violate U.S. antitrust laws. On January 15, 2020, our motion to compel arbitration of claims brought by merchants who accept American Express and to dismiss claims of merchants who do not was granted. In July 2004, we were named as a defendant in another putative class action filed in the Southern District of New York and subsequently transferred to the Eastern District of New York, captioned The Marcus Corporation v. American Express Co., et al. , in which the plaintiffs allege an unlawful antitrust tying arrangement between certain of our charge cards and credit cards in violation of various state and federal laws. The plaintiffs in this action seek injunctive relief and an unspecified amount of damages. On March 8, 2016, plaintiffs B&R Supermarket, Inc. d/b/a Milam’s Market and Grove Liquors LLC, on behalf of themselves and others, filed a suit, captioned B&R Supermarket, Inc. d/b/a Milam’s Market, et al. v. Visa Inc., et al. , for violations of the Sherman Antitrust Act, the Clayton Antitrust Act, California’s Cartwright Act and unjust enrichment in the United States District Court for the Northern District of California, against American Express Company, other credit and charge card networks, other issuing banks and EMVCo, LLC. Plaintiffs allege that the defendants, through EMVCo, conspired to shift liability for fraudulent, faulty and otherwise rejected consumer credit card transactions from themselves to merchants after the implementation of EMV chip payment terminals. Plaintiffs seek damages and injunctive relief. An amended complaint was filed on July 15, 2016. On September 30, 2016, the court denied our motion to dismiss as to claims brought by merchants who do not accept American Express cards, and on May 4, 2017, the California court transferred the case to the United States District Court for the Eastern District of New York. 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 contested in legal actions. 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 to governmental proceedings. These legal proceedings involve various lines of business and a variety of claims (including, but not limited to, common law tort, contract, application of tax laws, antitrust and consumer protection claims), some of which present novel factual allegations and/or unique legal theories. While some matters pending against us specify the damages sought, 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 stated, the claimed amount may be exaggerated and/or unsupported. As a result, some matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable 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. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause 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 where a loss is reasonably 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 $190 million in excess of any accruals 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 proceedings 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 disclosed merchant cases could have a material adverse effect on our business. COMMITMENTS Total lease expense includes rent expenses, adjustments for rent concessions, rent escalations and leasehold improvement allowances and is recognized on a straight-line basis over the lease term. Total lease expense for the years ended December 31, 2019, 2018 and 2017 was $151 million, $142 million and $151 million, respectively. Effective January 1, 2019, we adopted the new accounting guidance on leases (refer to Note 1 for additional details). L ease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. For lease liabilities outstanding as of December 31, 2019, the weighted average remaining lease term was 22 years and the weighted average rate used to discount lease commitments was 4 percent. The following represents the maturities of our outstanding lease commitments as of December 31, 2019: (Millions) 2020 $ 134 2021 114 2022 100 2023 89 2024 77 Thereafter 842 Total Outstanding Fixed Lease Payments $ 1,356 Less: Amount representing interest $ (573) Lease Liabilities $ 783 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 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 escalation triggers as defined in our Asset/Liability Management Policy. Our market exposures 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 interest margin from changes in the relationship between 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-currency spend, 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 spot basis or by hedging this market exposure, to the extent 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 manage this risk by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required 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 entered 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, 2019 and 2018 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 the Consolidated Balance Sheets. To further mitigate counterparty credit 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 contracts. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts. In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate 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, 2019, these derivatives were not in a significant net liability position. We have no individually significant 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 and our own credit risk as of December 31, 2019 and 2018, no credit risk adjustment 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 14 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) 2019 2018 2019 2018 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 185 $ 34 $ — $ 74 Net investment hedges - Foreign exchange contracts 24 222 186 61 Total derivatives designated as hedging instruments 209 256 186 135 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives 134 258 254 79 Total derivatives, gross 343 514 440 214 Derivative asset and derivative liability netting (b) (90) (90) (90) (90) Cash collateral netting (c) (d) (185) (28) (9) (78) Total derivatives, net $ 68 $ 396 $ 341 $ 46 (a) For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral. (b) Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. (c) Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty. (d) We posted $47 million and $84 million as of December 31, 2019 and 2018, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances. DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR HEDGE ACCOUNTING Derivatives executed for hedge accounting purposes are documented and designated as such when we enter into the contracts. 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. FAIR 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 interest rate risk associated with our fixed-rate debt obligations. At the time of issuance, certain fixed-rate long-term debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We have $22.6 billion and $24.0 billion of fixed-rate debt obligations designated in fair value hedging relationships as of December 31, 2019 and 2018, respectively. Gains or losses on the fair value hedging instrument principally offset the losses or gains 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 years ended December 31: Gains (losses) (Millions) 2019 2018 2017 Interest expense (a) Interest expense (a) Other, net expenses Fixed-rate long-term debt $ (458) $ 59 $ 206 Derivatives designated as hedging instruments 462 (43) (246) Total $ 4 $ 16 $ (40) (a) We adopted a 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. The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $22.7 billion and $23.7 billion as of December 31, 2019 and 2018, respectively, including the cumulative amount of fair value hedging adjustments of $217 million and $(241) million for the respective periods. We recognized net increases of $102 million and $51 million in Interest expense on Long-term debt for the years ended December 31, 2019 and 2018, respectively, and a net reduction of $133 million for the year ended December 31, 2017, primarily related to the net settlements (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 notional amounts of approximately $9.8 billion and $9.6 billion of foreign currency derivatives designated as net investment hedges as of December 31, 2019 and 2018, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, were a loss of $140 million, a gain of $328 million and a loss of $370 million for the years ended December 31, 2019, 2018 and 2017, respectively. DERIVATIVES NOT DESIGNATED AS HEDGES We have 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, primarily 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 have 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 embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values | 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 term of the asset or liability, including: – Quoted prices for similar assets or liabilities in active markets; – Quoted prices for identical or similar assets or liabilities in markets that are not active; – Inputs other than quoted 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 are unobservable and reflect our own estimates about 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 measure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019 and 2018, although the disclosed fair value of certain 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, 2019 and 2018, there were no Level 3 transfers. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT FAIR VALUE The following 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: 2019 2018 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 78 $ 77 $ 1 $ — $ 48 $ 1 $ 47 $ — Debt securities 8,328 — 8,328 — 4,599 — 4,599 — Derivatives, gross (a) 343 — 343 — 514 — 514 — Total Assets 8,749 77 8,672 — 5,161 1 5,160 — Liabilities: Derivatives, gross (a) 440 — 440 — 214 — 214 — Total Liabilities $ 440 $ — $ 440 $ — $ 214 $ — $ 214 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 13 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 apply the following valuation techniques: Investment Securities When available, quoted prices of identical investment securities in active markets are used to estimate fair value. Such investment securities are classified within Level 1 of the fair value hierarchy. When quoted prices of identical investment securities in active markets are not available, the fair values for our investment securities are obtained primarily from pricing services engaged by us, and we receive one price for each security. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such 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, reported trades and broker-dealer quotes, all with reasonable levels of transparency. The pricing services did not apply any adjustments to the pricing models used. In addition, we did not apply any adjustments to prices received from the pricing services. We 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 discrepancies 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 4 for additional fair value information. 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 active 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 output 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 contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, used 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 13 for additional fair value information. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT OTHER THAN FAIR VALUE The following table summarizes the estimated fair values of 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, 2019 and 2018. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2019 and 2018, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented. 2019 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 24 $ 24 $ 23 $ 1 $ — Other financial assets (b) 60 60 — 60 — Financial assets carried at other than fair value Loans, net (c) 90 91 — — 91 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 92 92 — 92 — Financial liabilities carried at other than fair value Certificates of deposit (d) 10 10 — 10 — Long-term debt (c) $ 58 $ 60 $ — $ 60 $ — 2018 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or 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 $ — (a) Level 2 amounts reflect time deposits and short-term investments. (b) Includes Card Member receivables (including fair values of Card Member receivables of $8.2 billion and $8.5 billion held by a consolidated VIE as of December 31, 2019 and 2018, respectively), other receivables, restricted cash and other miscellaneous assets. (c) Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $32.0 billion and $33.0 billion as of December 31, 2019 and 2018, respectively, and the fair values of Long-term debt were $19.8 billion and $19.4 billion as of December 31, 2019 and 2018, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance 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 apply 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 fair value include cash and cash equivalents, Card Member receivables, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Assets Carried At Other Than Fair 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 rates 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 payable, short-term borrowings and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Liabilities Carried At Other Than Fair Value Certificates of Deposit Certificates of deposit (CDs) are recorded at their historical issuance cost on the Consolidated Balance Sheets. Fair value is estimated using a discounted cash flow methodology based on the 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 flows of each instrument at rates currently observed in publicly-traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly traded debt markets of similar terms and comparable credit risk, 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 these 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 years ended December 31, 2019 and 2018, we did not have any material assets that were measured at fair value due to impairment and there were no material fair value adjustments for equity investments without readily determinable fair values. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES 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 $29 million, respectively, as of December 31, 2019, and $1 billion and $46 million, respectively, as of December 31, 2018, all of which were primarily related to our real estate and business dispositions. 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
Common and Preferred Shares | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common and Preferred Shares | 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) 2019 2018 2017 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 847 859 904 Repurchases of common shares (40) (15) (50) Other, primarily stock option exercises and restricted stock awards granted 3 3 5 Shares issued and outstanding as of December 31 810 847 859 (a) Of the common shares authorized but unissued as of December 31, 2019, approximately 19 million shares are reserved for issuance under employee stock and employee benefit plans. On September 23, 2019, the Board of Directors authorized the repurchase of up to 120 million common shares from time to time, subject to market conditions and in accordance with our capital plans. This authorization replaced the prior repurchase authorization and does not have an expiration date. During 2019, 2018 and 2017, we repurchased 40 million common shares with a cost basis of $4.6 billion, 15 million common shares with a cost basis of $1.6 billion, and 50 million common shares with a cost basis of $4.3 billion, respectively. The cost basis includes commissions paid of $6.2 million, $2.2 million and $2.9 million in 2019, 2018 and 2017, respectively. As of December 31, 2019, we had approximately 109 million common shares remaining under the Board share repurchase authorization. Common shares are generally retired by us upon repurchase (except for 2.6 million, 2.7 million and 2.9 million shares held as treasury shares as of December 31, 2019, 2018 and 2017, 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 $292 million, $207 million and $217 million as of December 31, 2019, 2018 and 2017, respectively, are included as a reduction to Additional paid-in capital in Shareholders’ 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 have the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31, 2019: 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 (a) 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 liquidation 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 in 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, 2019, 2018 and 2017. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME AOCI is a balance sheet item in Shareholders’ equity 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 Gains (Losses) on Investment Foreign Currency Net Unrealized Pension Accumulated Other Balance 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 Balance 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 gain related to hedges of investments in foreign operations — 328 — 328 Pension and other postretirement benefits — — 11 11 Other 2 — — 2 Net change in accumulated other comprehensive (loss) income (8) (172) 11 (169) Balance as of December 31, 2018 (8) (2,133) (456) (2,597) Net unrealized gains 41 — — 41 Net translation gains on investments in foreign operations — 84 — 84 Net losses related to hedges of investments in foreign operations — (140) — (140) Pension and other postretirement benefits — — (125) (125) Net change in accumulated other comprehensive (loss) income 41 (56) (125) (140) Balance as of December 31, 2019 $ 33 $ (2,189) $ (581) $ (2,737) (a) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 20). 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) 2019 2018 2017 Net unrealized investment securities $ 12 $ (2) $ (4) Net translation on investments in foreign operations (a) 24 (44) (172) Net hedges of investments in foreign operations (43) 107 (215) Pension and other postretirement benefits (38) 9 7 Total tax impact $ (45) $ 70 $ (384) (a) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 20). 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 2019 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 |
Other Fees and Commissions and
Other Fees and Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other Fees and Commissions and Other Expenses [Abstract] | |
Other Fees and Commissions and Other Expenses | OTHER FEES AND COMMISSIONS AND OTHER EXPENSES The following is a detail of Other fees and commissions for the years ended December 31: (Millions) 2019 2018 2017 Fees charged to Card Members: Delinquency fees $ 1,028 $ 959 $ 888 Foreign currency conversion fee revenue 982 921 851 Other customer fees: Loyalty coalition-related fees 456 461 452 Travel commissions and fees 424 395 364 Service fees and other (a) 407 417 435 Total Other fees and commissions $ 3,297 $ 3,153 $ 2,990 (a) Other includes Membership Rewards program fees that are not related to contracts with customers. The following is a detail of Other expenses for the years ended December 31: (Millions) 2019 2018 2017 Professional services $ 2,091 $ 2,125 $ 2,040 Occupancy and equipment 2,168 2,033 2,018 Other (a) 1,609 1,513 1,576 Total Other expenses $ 5,868 $ 5,671 $ 5,634 (a) Other expense primarily includes general operating expenses, communication expenses, Card Member and merchant-related fraud losses, litigation expenses, other non-income taxes and unrealized gains and losses on certain 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. 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, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring | 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 $135 million, $69 million and $199 million accrued in total restructuring reserves as of December 31, 2019, 2018 and 2017, respectively. New charges, including net revisions to existing restructuring reserves, which primarily relate to the redeployment of displaced colleagues to other positions, were $125 million, $(23) million and $42 million, for the years ended December 31, 2019, 2018 and 2017, respectively. Cumulatively, we recognized $424 million relating to the restructuring programs that were in progress during 2019 and initiated at various dates between 2014 and 2019, the majority of which has been reflected within Corporate & Other. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Tax Act, enacted on December 22, 2017, made broad and complex changes to the U.S. federal corporate income tax rules. Most notably, effective January 1, 2018, the Tax Act reduced the U.S. federal statutory corporate income tax rate from 35 percent to 21 percent, introduced a territorial tax system in which future dividends paid from earnings outside the United States to a U.S. corporation are not subject to U.S. federal taxation and imposed new U.S. federal corporate income taxes on certain foreign operations. The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2019 2018 2017 Current income tax expense: U.S. federal $ 1,108 $ 70 $ 3,408 U.S. state and local 276 150 259 Non-U.S. 437 681 387 Total current income tax expense 1,821 901 4,054 Deferred income tax (benefit) expense: U.S. federal (58) 276 544 U.S. state and local (31) 78 (12) Non-U.S. (62) (54) 91 Total deferred income tax (benefit) expense (151) 300 623 Total income tax expense $ 1,670 $ 1,201 $ 4,677 A reconciliation of the U.S. federal statutory rate of 21 percent as of both December 31, 2019 and 2018, and 35 percent as of December 31, 2017, to our actual income tax rate was as follows: 2019 2018 2017 U.S. statutory federal income tax rate 21.0 % 21.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.9) (1.7) (1.7) State and local income taxes, net of federal benefit 2.8 2.8 2.3 Non-U.S. subsidiaries' earnings (a) (0.7) (0.5) (5.7) Tax settlements (b) (0.3) (1.9) (0.7) U.S. Tax Act (c) — (1.1) 34.8 U.S. Tax Act - related adjustments (d) — (3.2) — Other (1.1) (0.6) (1.0) Actual tax rates 19.8 % 14.8 % 63.0 % (a) 2017 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. (b) 2018 primarily included a settlement of the IRS examination for tax years 2008-2014, as well as the resolution of certain tax matters in various jurisdictions. (c) 2017 included a $2.6 billion provisional charge for the impacts of the Tax Act and the adjustments thereto are included in 2018. (d) Related 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 measured 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 differences are expected to reverse. The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2019 2018 Deferred tax assets: Reserves not yet deducted for tax purposes $ 2,633 $ 2,612 Employee compensation and benefits 365 360 Other 536 431 Gross deferred tax assets 3,534 3,403 Valuation allowance (66) (61) Deferred tax assets after valuation allowance 3,468 3,342 Deferred tax liabilities: Intangibles and fixed assets 1,279 1,083 Deferred revenue 315 435 Deferred interest 162 171 Investment in joint ventures 122 137 Other 129 210 Gross deferred tax liabilities 2,007 2,036 Net deferred tax assets $ 1,461 $ 1,306 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, 2019 and 2018 are associated with net operating losses and other deferred tax assets in certain non-U.S. operations. Accumulated earnings of certain non-U.S. subsidiaries, which totaled approximately $0.7 billion as of December 31, 2019, are intended to be permanently reinvested 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 approximately $0.1 billion as of December 31, 2019, have not been provided on those earnings. Net income taxes paid by us during 2019, 2018 and 2017, were approximately $1.7 billion, $2.0 billion and $1.4 billion, respectively. 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 examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. 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 Internal Revenue Service (IRS) and tax authorities in other countries and states in which we have significant business operations. The tax years under examination and open for examination vary by jurisdiction. Tax years from 2016 onwards are open for examination by the IRS. The following table presents changes in unrecognized tax benefits: (Millions) 2019 2018 2017 Balance, January 1 $ 701 $ 821 $ 974 Increases: Current year tax positions 66 152 200 Tax positions related to prior years 78 47 39 Effects of foreign currency translations 10 — — Decreases: Tax positions related to prior years (a) (14) (74) (289) Settlements with tax authorities (b) (40) (192) (77) Lapse of statute of limitations (75) (44) (26) Effects of foreign currency translations — (9) — Balance, December 31 $ 726 $ 701 $ 821 (a) 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. (b) 2018 included a settlement of the IRS examination for tax years 2008-2014 and the resolution of certain tax matters in various jurisdictions. Included in the unrecognized tax benefits of $0.7 billion, $0.7 billion and $0.8 billion for December 31, 2019, 2018 and 2017, respectively, are approximately $623 million, $599 million and $723 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 decrease within the next 12 months by as much as $113 million, principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $113 million of unrecognized tax benefits, approximately $96 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. For the year ended December 31, 2019, we recognized approximately $5 million in expenses for interest and penalties. For the years ended December 31, 2018 and 2017, we recognized benefits of approximately $18 million and $90 million, respectively, 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 $70 million and $65 million accrued for the payment of interest and penalties as of December 31, 2019 and 2018, respectively. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | 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) 2019 2018 2017 Numerator: Basic and diluted: Net income $ 6,759 $ 6,921 $ 2,748 Preferred dividends (81) (80) (81) Net income available to common shareholders 6,678 6,841 2,667 Earnings allocated to participating share awards (a) (47) (54) (21) Net income attributable to common shareholders $ 6,631 $ 6,787 $ 2,646 Denominator: (a) Basic: Weighted-average common stock 828 856 883 Add: Weighted-average stock options (b) 2 3 3 Diluted 830 859 886 Basic EPS $ 8.00 $ 7.93 $ 3.00 Diluted EPS $ 7.99 $ 7.91 $ 2.99 (a) 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. (b) The dilutive effect of unexercised stock options excludes from the computation of EPS 0.2 million, 0.7 million and 0.6 million of options for the years ended December 31, 2019, 2018 and 2017, respectively, because inclusion of the options would have been anti-dilutive. |
Regulatory Matters and Capital
Regulatory Matters and Capital Adequacy | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters and Capital Adequacy | 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, American Express National Bank (AENB), is subject to supervision and regulation, including regulatory capital and leverage requirements, by the Office of the Comptroller 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 minimum Tier 1 leverage ratio (Tier 1 capital to average adjusted on-balance sheet assets). Failure to meet minimum capital requirements can initiate 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, 2019 and 2018, 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 Tier 1 capital Total capital CET 1 Capital Tier 1 capital Total capital Tier 1 leverage Supplementary December 31, 2019: (a) American Express Company $ 18,056 $ 19,628 $ 22,213 10.7 % 11.6 % 13.2 % 10.2 % 8.8 % American Express National Bank $ 13,600 $ 13,600 $ 15,688 13.4 % 13.4 % 15.4 % 11.1 % 9.3 % 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 % Well-capitalized ratios (b) 6.5 % 8.0 % 10.0 % 5.0 % N/A Basel III Standards 2019 (c) 7.0 % 8.5 % 10.5 % 4.0 % 3.0 % Minimum capital ratios (d) 4.5 % 6.0 % 8.0 % 4.0 % 3.0 % (a) 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. (b) Represents requirements for banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Deposit Insurance Corporation Improvement Act. There is no CET1 capital ratio, Tier 1 leverage ratio or supplementary leverage ratio (SLR) requirement for a bank holding company to be considered “well capitalized.” (c) Basel III minimum capital requirement and additional capital conservation buffer as defined by the Federal Reserve and OCC for calendar year 2019. The additional capital conservation buffer does not apply to Tier 1 leverage ratio or SLR. (d) As defined by the regulations issued by the Federal Reserve 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, 2019, the aggregate amount of net assets of subsidiaries that are restricted to be transferred was approximately $10.0 billion. BANK HOLDING COMPANY DIVIDEND RESTRICTIONS We are limited in our ability to pay dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and maintain 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 2.5 percent as of December 31, 2019, which can be satisfied only with CET1 capital. If our 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 DIVIDEND RESTRICTIONS In the year ended December 31, 2019, AENB paid dividends from retained earnings to its parent of $3.9 billion. AENB is limited in its ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as AENB, 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. AENB must maintain a capital conservation buffer. If AENB's risk-based capital ratios do not satisfy minimum requirements plus the combined capital conservation buffer, it will face graduated constraints on dividends and other capital distributions based on the amount of the shortfall. As of December 31, 2019, AENB's retained earnings available for the payment of dividends was $4.9 billion. In determining 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 agencies. In addition, AENB's banking regulators have authority to limit or prohibit the payment of a dividend by AENB under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Significant Credit Concentratio
Significant Credit Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Significant Credit Concentrations | 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) 2019 2018 Individuals (a) $ 131 $ 123 Financial Services (b) 26 30 Institutions (c) 20 20 U.S. Government and agencies (d) 8 4 Total on-balance sheet $ 185 $ 177 (a) Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. (b) Represents banks, broker-dealers, insurance companies and savings and loan associations. (c) Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. (d) Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. As of December 31, 2019 and 2018, 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 evaluate 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) 2019 2018 On-balance sheet: U.S. $ 115 $ 111 Non-U.S. 30 27 On-balance sheet 145 138 Unused lines-of-credit: (a) U.S. 245 249 Non-U.S. 61 53 Total unused lines-of-credit $ 306 $ 302 (a) 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. Our charge card products generally have no pre-set spending limit, and therefore are not reflected in unused credit available to Card Members. |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments and Geographic Operations | REPORTABLE OPERATING SEGMENTS AND GEOGRAPHIC OPERATIONS REPORTABLE OPERATING SEGMENTS 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, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. The following is a brief description of the primary business activities of our three reportable operating segments: • Global Consumer Services Group (GCSG) primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel and lifestyle services and non-card financing products, and manages certain international joint ventures and our partnership agreements in China. • Global Commercial Services (GCS) primarily 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. • Global Merchant and Network Services (GMNS) operates a global payments 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 with 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 2019, we moved intercompany assets and liabilities, previously recorded in the operating segments, to Corporate & Other. 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, 2019, 2018 and 2017: (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated 2019 Non-interest revenues $ 15,972 $ 12,623 $ 6,252 $ 89 $ 34,936 Revenue from contracts with customers (b) 11,041 10,891 6,215 12 28,159 Interest income 9,413 1,900 28 743 12,084 Interest expense 1,806 995 (365) 1,028 3,464 Total revenues net of interest expense 23,579 13,528 6,645 (196) 43,556 Total provisions 2,636 917 20 — 3,573 Pretax income (loss) from continuing operations 4,024 3,066 3,148 (1,809) 8,429 Income tax provision (benefit) 762 590 736 (418) 1,670 Net income (loss) 3,262 2,476 2,412 (1,391) 6,759 Total assets (billions) $ 106 $ 53 $ 18 $ 21 $ 198 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) $ 102 $ 51 $ 16 $ 20 $ 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 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) $ 95 $ 49 $ 20 $ 17 $ 181 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes 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 attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment 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 expenses are included in each segment based on the actual expenses incurred within the segment. Salaries and employee benefits and other operating expenses reflect expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, expenses related to support services, such as technology costs, are allocated to each segment primarily based on support service activities directly attributable to the segment. Certain other overhead expenses are allocated from 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 allocated 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 2019 Total revenues net of interest expense $ 32,557 $ 4,465 $ 3,915 $ 2,816 $ (197) $ 43,556 Pretax income (loss) from continuing operations 7,262 1,243 833 903 (1,812) 8,429 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 (a) EMEA represents Europe, the Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and the Caribbean. (b) Other Unallocated includes net costs which are not directly allocated 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, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company | PARENT COMPANY PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2019 2018 2017 Revenues Non-interest revenues Other $ 598 $ 426 $ 358 Total non-interest revenues 598 426 358 Interest income 692 422 258 Interest expense 902 615 493 Total revenues net of interest expense 388 233 123 Expenses Salaries and employee benefits 366 336 362 Other 816 607 553 Total expenses 1,182 943 915 Pretax loss (794) (710) (792) Income tax benefit (282) (179) (354) Net loss before equity in net income of subsidiaries and affiliates (512) (531) (438) Equity in net income of subsidiaries and affiliates 7,271 7,452 3,186 Net income $ 6,759 $ 6,921 $ 2,748 PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2019 2018 Assets Cash and cash equivalents $ 4,430 $ 3,287 Equity in net assets of subsidiaries and affiliates 23,165 22,298 Loans to subsidiaries and affiliates 22,350 17,945 Due from subsidiaries and affiliates 1,168 1,783 Other assets 223 297 Total assets 51,336 45,610 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 2,197 1,961 Due to subsidiaries and affiliates 609 577 Debt with subsidiaries and affiliates 1,091 2,591 Long-term debt 24,368 18,191 Total liabilities 28,265 23,320 Shareholders’ Equity Total shareholders’ equity 23,071 22,290 Total liabilities and shareholders’ equity $ 51,336 $ 45,610 PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2019 2018 2017 Cash Flows from Operating Activities Net income $ 6,759 $ 6,921 $ 2,748 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (7,271) (7,452) (3,186) Dividends received from subsidiaries and affiliates 6,370 3,222 5,755 Other operating activities, primarily with subsidiaries and affiliates 1,315 (257) 659 Net cash provided by operating activities 7,173 2,434 5,976 Cash Flows from Investing Activities Maturities and redemptions of investment securities 1 — — Loans to subsidiaries and affiliates (4,405) (6,281) (4,044) Investments in subsidiaries and affiliates (15) (30) — Other investing activities 82 — — Net cash used in investing activities (4,337) (6,311) (4,044) Cash Flows from Financing Activities Proceeds from long-term debt 6,469 9,350 5,900 Payments of long-term debt (641) (3,850) (1,500) Short-term debt of subsidiaries and affiliates (1,500) (140) (1,313) Issuance of American Express common shares 86 87 129 Repurchase of American Express common shares and other (4,685) (1,685) (4,400) Dividends paid (1,422) (1,324) (1,251) Net cash (used in) provided by financing activities (1,693) 2,438 (2,435) Net increase (decrease) in cash and cash equivalents 1,143 (1,439) (503) Cash and cash equivalents at beginning of year 3,287 4,726 5,229 Cash and cash equivalents at end of year $ 4,430 $ 3,287 $ 4,726 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (UNAUDITED ) (Millions, except per share amounts) 2019 2018 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 11,365 $ 10,989 $ 10,838 $ 10,364 $ 10,474 $ 10,144 $ 10,002 $ 9,718 Pretax income 1,986 2,266 2,219 1,958 1,831 2,118 2,091 2,082 Net income 1,693 1,755 1,761 1,550 2,010 1,654 1,623 1,634 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) 2.04 2.09 2.07 1.81 2.33 1.89 1.85 1.86 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) 2.03 2.08 2.07 1.80 2.32 1.88 1.84 1.86 Cash dividends declared per common share $ 0.43 $ 0.43 $ 0.39 $ 0.39 $ 0.39 $ 0.39 $ 0.35 $ 0.35 (a) Represents net income, less (i) earnings allocated to participating share awards of $12 million, $11 million, $13 million and $11 million for the quarters ended December 31, September 30, June 30 and March 31, 2019, respectively, and $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 (ii) dividends on preferred shares of $20 million, $21 million, $19 million and $21 million for the quarters ended December 31, September 30, June 30 and March 31, 2019, respectively, and $19 million, $20 million, $20 million and $21 million for the quarters ended December 31, September 30, June 30 and March 31, 2018, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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 consolidate entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlling 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 controlling financial interest when we are determined to be the primary beneficiary. A primary beneficiary 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 potentially be significant to that VIE. |
Foreign Currency | FOREIGN CURRENCY Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end 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 included 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 in Other, net expenses in the Consolidated Statements of Income. |
Amounts Based on Estimates and Assumptions | AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member losses on loans and receivables, Membership Rewards liability, goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. |
Total Revenue 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 Members. 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 merchant’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 agreements, 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 periods, which typically range from three In cases where the merchant acquirer is a third party (which is the case, for example, under our OptBlue program, or with certain of our GNS partners), we receive a network rate fee in our settlement with the merchant acquirer, which is individually negotiated between us and that merchant acquirer and is 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. 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) is not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-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 to Note 9). 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 Consolidated 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 18 for additional information. Contra-revenue Payments made pursuant to contractual arrangements with our merchants, GNS partners, and other customers are classified as contra-revenue, except where we receive goods, services 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 primarily relate to our performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments will not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on our long-term debt and short-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on our long-term debt. |
Expenses | Marketing and Business Development Marketing and business development expense includes costs incurred in the development and initial placement of advertising, which are expensed in the year in which the advertising first takes place. Also included in Marketing and business development expense are payments to our cobrand partners, Card Member statement credits for qualifying charges on eligible card accounts, corporate incentive payments earned on achievement of pre-set 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 estimated 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 Statement of Income. |
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. |
Goodwill | Goodwill Goodwill represents the excess of the 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 assessment 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 reporting 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 considerations, 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 then perform the impairment evaluation using the quantitative assessment. Under the quantitative assessment, the first step identifies whether there is a potential impairment by comparing the fair value of a reporting unit to the carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds the fair value, then a test is performed to determine the implied fair value of goodwill. An impairment loss is recognized based on the amount that the carrying amount of goodwill exceeds the implied fair value. When measuring the fair value of 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 multiples). 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, determined 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 years ended December 31, 2019 and 2018, 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 each of our reporting units exceeded their carrying values. OTHER INTANGIBLE ASSETS Intangible assets are amortized on a straight-line basis over their 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. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at the acquisition date. 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. 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 range from 5 to 10 years. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. |
Leases | Leases On January 1, 2019, we adopted the new accounting guidance on leases using the modified retrospective method. We elected the package of practical expedients and transition provisions allowing us to bring our existing operating leases onto the Consolidated Balance Sheet on January 1, 2019 without adjusting comparative periods. The adoption of the new lease guidance did not have a material impact on our financial position, results of operations and cash flows. We have operating leases worldwide for facilities and equipment, which, for those leases with terms greater than 12 months, are recorded as lease-related assets and liabilities. We do not separate lease and non-lease components. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs and lease incentives. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. |
Classification of Various Items | CLASSIFICATION OF VARIOUS ITEMS Certain reclassifications of prior period amounts have been made to conform to the current period presentation. |
Recently Issued Accounting Standards | RECENTLY ISSUED ACCOUNTING STANDARDS In June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance for the recognition of credit losses on certain financial instruments. The guidance, as amended and effective January 1, 2020, introduces a new credit reserving methodology known as the Current Expected Credit Loss (CECL) approach, which differs significantly from the incurred loss approach used through December 31, 2019 and alters the estimation process, inputs and assumptions used in estimating credit losses. The CECL methodology requires measurement of expected credit losses for the estimated life of the financial instrument, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. Our approach incorporates separate reasonable and supportable periods for loans and receivables and uses a weighted average of multiple future economic scenarios. Additionally, the guidance requires a modified retrospective transition, which records the difference between the reserves measured using the CECL methodology and the reserves using the incurred loss approach, tax effected, as a cumulative effect adjustment upon adoption through retained earnings. As a result, our financial position, results of operations and regulatory risk-based capital for periods prior to January 1, 2020 will not be restated. We currently estimate an increase to total loan reserves of approximately $1.7 billion and a decrease to total receivable reserves of approximately $0.5 billion, along with the associated current and deferred tax impact of approximately $0.3 billion, and an offset to the opening balance of retained earnings, net of tax, of approximately $0.9 billion as of January 1, 2020. Our cross-functional implementation team is finalizing our operational processes, controls and governance. In addition, for available-for-sale debt securities, the new guidance replaces the other-than-temporary impairment model and requires the recognition of an allowance for reductions in a security’s fair value attributable to declines in credit quality, instead of a direct write-down of the security, when a valuation decline is determined to be other-than-temporary. We have completed our evaluation of the new guidance for our available-for-sale debt securities and, while there was no impact of the new guidance on adoption, we have updated our processes to evaluate and measure potential future credit losses. |
Card Member Receivables | 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 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 the amounts that Card Members choose to revolve are subject to finance charges. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 3), 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 reserves for interest that we believe will not be collected. Other loans are recorded at the time any extension of credit is provided to consumer and commercial customers for non-card financing products. These loans have a range of fixed terms such as interest rates, fees and repayment periods. Borrowers are typically required to make pre-established monthly payments over the term of the loan. Non-card financing products are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans are presented on the Consolidated Balance Sheets net of reserves for losses, and include principal and any related accrued interest and fees. CARD MEMBER RECEIVABLES Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns. 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 3), and include principal and any related accrued fees. 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 modified 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, with such accounts identified as “Out of Program TDRs.” Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is 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 canceled, 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 contractual terms (including the contractual interest rate) when the Card Member exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or, (ii) when the Card Member defaults out of the modification program. We establish a reserve for Card Member interest charges and fees considered to be uncollectible. Reserves for Card Member loans and receivables modified as TDRs are determined as the difference between the cash flows expected to be received from the Card Member (taking into consideration the probability of subsequent defaults), discounted at the original effective interest rates, and the carrying value of the related Card Member loan or receivables balance. We determine the original effective interest rate as the interest rate in effect prior to the imposition of any penalty interest rate. All changes in the impairment measurement are included in Provisions for losses in the Consolidated Statements of Income. |
Reserves for Losses | Reserves for losses are primarily based upon statistical and analytical models that analyze portfolio performance and reflect management’s judgments regarding the quantitative 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 credit, 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 receivables 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, or 120 days past due for closed-end loans categorized as Other loans. Card Member loans and receivables and Other loans in bankruptcy or owed by deceased individuals are generally written off upon notification. |
Investment Securities | Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Investment securities 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 they 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 perform the servicing and key decision making for 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, 2019 and 2018, our ownership of variable interests was $12.9 billion and $15.5 billion, respectively, for the Lending Trust and $8.3 billion and $7.0 billion, respectively, for the Charge Trust. These variable interests held by us provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to both the Lending Trust and the Charge Trust. Based on these considerations, we are the primary beneficiary of the Trusts 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, respectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 2). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 8). |
Other Assets | We account for our tax credit investments, including Qualified Affordable Housing (QAH) investments, using the 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 Rewards 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 | The cost of employee stock awards granted in exchange for employee services is generally recognized ratably based on the grant-date fair value of the award, net of expected forfeitures, over the vesting period. The vesting period is the shorter of the vesting schedule as defined in each award agreement or the date an individual will become eligible to retire. Retirement eligibility is dependent upon age and/or years of service.RSUs containing only service conditions generally vest 25 percent per year beginning with the first anniversary of the grant date. 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.In 2018 and 2017, certain employees were awarded PGs and other incentive awards that can be settled with cash or equity shares at our discretion, and final Compensation and Benefits Committee payout approval; beginning in 2019, we discontinued granting PGs. These awards earn value based on performance, market and/or service conditions, and vest over periods of one to three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. |
Retirement Plans | We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the Consolidated Balance Sheets. |
Legal Contingencies | We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause 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 | A majority of our derivative assets and liabilities as of December 31, 2019 and 2018 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 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 losses or gains on the hedged item attributable to the hedged risk.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 have 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, primarily 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 have 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 embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. |
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 authority 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 on December 22, 2017, made broad and complex changes to the U.S. federal corporate income tax rules. Most notably, effective January 1, 2018, the Tax Act reduced the U.S. federal statutory corporate income tax rate from 35 percent to 21 percent, introduced a territorial tax system in which future dividends paid from earnings outside the United States to a U.S. corporation are not subject to U.S. federal taxation and imposed new U.S. federal corporate income taxes on certain foreign operations.We record a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These 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 differences are expected to reverse. 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, 2019 and 2018 are associated with net operating losses and other deferred tax assets in certain non-U.S. operations.Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. |
Regulatory Matters And Capital Adequacy | 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, 2019, the aggregate amount of net assets of subsidiaries that are restricted to be transferred was approximately $10.0 billion. BANK HOLDING COMPANY DIVIDEND RESTRICTIONS We are limited in our ability to pay dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and maintain 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 2.5 percent as of December 31, 2019, which can be satisfied only with CET1 capital. If our 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 DIVIDEND RESTRICTIONS In the year ended December 31, 2019, AENB paid dividends from retained earnings to its parent of $3.9 billion. AENB is limited in its ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as AENB, 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. AENB must maintain a capital conservation buffer. If AENB's risk-based capital ratios do not satisfy minimum requirements plus the combined capital conservation buffer, it will face graduated constraints on dividends and other capital distributions based on the amount of the shortfall. As of December 31, 2019, AENB's retained earnings available for the payment of dividends was $4.9 billion. In determining 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 agencies. In addition, AENB's banking regulators have authority to limit or prohibit the payment of a dividend by AENB under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Segment Reporting | 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, product 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 attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment 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 expenses are included in each segment based on the actual expenses incurred within the segment. Salaries and employee benefits and other operating expenses reflect expenses such as professional services, occupancy and equipment and communications incurred directly within each segment. In addition, expenses related to support services, such as technology costs, are allocated to each segment primarily based on support service activities directly attributable to the segment. Certain other overhead expenses are allocated from Corporate & Other to the segments based on the relative levels of revenue and Card Member loans and receivables. Income Taxes |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Other Significant Accounting Policies | The following table identifies our other significant accounting policies, along with the related Note. Significant Accounting Policy Note Note Title Loans and Accounts Receivable Note 2 Loans and Accounts Receivable Reserves for Losses Note 3 Reserves for Losses Investment Securities Note 4 Investment Securities Asset Securitizations Note 5 Asset Securitizations Legal Contingencies Note 12 Contingencies and Commitments Derivative Financial Instruments and Hedging Activities Note 13 Derivatives and Hedging Activities Fair Value Measurements Note 14 Fair Values Guarantees Note 15 Guarantees Income Taxes Note 20 Income Taxes |
Loans and Accounts Receivable (
Loans and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Card Member receivables segment detail | Card Member loans by segment and Other loans as of December 31, 2019 and 2018 consisted of: (Millions) 2019 2018 Global Consumer Services Group (a) $ 73,266 $ 69,458 Global Commercial Services 14,115 12,396 Card Member loans 87,381 81,854 Less: Reserve for losses 2,383 2,134 Card Member loans, net $ 84,998 $ 79,720 Other loans, net (b) $ 4,626 $ 3,676 (a) Includes approximately $32.2 billion and $33.2 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2019 and 2018, respectively. (b) Other loans primarily represent consumer and commercial non-card financing products. Other loans are presented net of reserves for losses of $152 million and $124 million as of December 31, 2019 and 2018, respectively. |
Card Member loans segment detail | Card Member receivables by segment as of December 31, 2019 and 2018 consisted of: (Millions) 2019 2018 Global Consumer Services Group (a) $ 22,844 $ 21,455 Global Commercial Services 34,569 34,438 Card Member receivables 57,413 55,893 Less: Reserve for losses 619 573 Card Member receivables, net $ 56,794 $ 55,320 (a) Includes $8.3 billion and $8.5 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2019 and 2018, respectively. |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of December 31, 2019 and 2018: 2019 (millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 72,101 $ 322 $ 253 $ 590 $ 73,266 Global Commercial Services Global Small Business Services 13,898 56 40 85 14,079 Global Corporate Payments (a) (b) (b) (b) — 36 Card Member Receivables: Global Consumer Services Group 22,560 86 58 140 22,844 Global Commercial Services Global Small Business Services $ 17,113 $ 99 $ 58 $ 134 $ 17,404 Global Corporate Payments (a) (b) (b) (b) $ 136 $ 17,165 2018 (millions) Current 30-59 60-89 90+ 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 (a) 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). (b) Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. |
Credit quality indicators for loans and receivables | The following tables present the key credit quality indicators as of or for the years ended December 31: 2019 2018 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest, & Fees (a) 30+ Principal Only (a) Principal, Interest, & Fees (a) 30+ Card Member Loans: Global Consumer Services Group 2.3 % 2.8 % 1.6 % 2.1 % 2.5 % 1.5 % Global Small Business Services 1.9 % 2.2 % 1.3 % 1.7 % 2.0 % 1.3 % Card Member Receivables: Global Consumer Services Group 1.7 % 1.9 % 1.2 % 1.6 % 1.8 % 1.2 % Global Small Business Services 1.9 % 2.1 % 1.7 % 1.7 % 2.0 % 1.6 % 2019 2018 Net Loss 90+ Net Loss 90+ Card Member Receivables: Global Corporate Payments 0.08 % 0.8 % 0.11 % 0.7 % (a) 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, 2019, 2018 and 2017. Impaired Card Member loans and receivables outside the U.S. are not significant as of December 31, 2019, 2018 and 2017; therefore, such loans and receivables are not included in the following tables unless otherwise noted. As of December 31, 2019 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) $ 384 $ 284 $ 500 $ 175 $ 1,343 $ 1,199 $ 137 Global Commercial Services 44 54 97 38 233 220 22 Card Member Receivables: Global Consumer Services Group — — 56 16 72 72 3 Global Commercial Services — — 109 30 139 138 6 Total $ 428 $ 338 $ 762 $ 259 $ 1,787 $ 1,629 $ 168 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 (a) 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. (b) 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. (c) Accounts classified as a TDR include $26 million, $17 million and $15 million that are over 90 days past due and accruing interest and $10 million, $6 million and $5 million that are non-accruals as of December 31, 2019, 2018 and 2017, respectively. (d) In Program TDRs include Card Member accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $188 million, $148 million and $141 million of Card Member accounts that have successfully completed a modification program and $72 million, $50 million and $45 million of Card Member accounts that were not in compliance with the terms of the modification programs as of December 31, 2019, 2018 and 2017, respectively. (f) GCSG includes balances outside the U.S. of $93 million, $69 million and $56 million that are over 90 days and accruing interest and $77 million, $68 million and $55 million in unpaid principal as of December 31, 2019, 2018 and 2017, respectively. |
Interest income recognized and average balance of impaired Card Member loans and receivables | The following table provides information with respect to our average balances and interest income recognized from impaired Card Member loans and the average balances of impaired Card Member receivables for the years ended December 31: 2019 (Millions) Average Balance Interest Income Recognized Card Member Loans: Global Consumer Services Group $ 1,159 $ 136 Global Commercial Services 203 25 Card Member Receivables: Global Consumer Services Group 56 — Global Commercial Services 112 — Total $ 1,530 $ 161 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 2017 (Millions) Average Balance Interest Income 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 |
Troubled debt restructurings | The following table provides additional information with respect to Card Member loans and receivables modified as TDRs for the years ended December 31: 2019 Number of Accounts Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 78 $ 602 13 (b) Card Member Receivables 9 210 (c) 26 Total 87 $ 812 2018 Number of Accounts Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 51 $ 377 12 (b) Card Member Receivables 6 110 (c) 28 Total 57 $ 487 2017 Number of Accounts Outstanding Balances ($ in millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 33 $ 224 10 (b) Card Member Receivables 6 83 (c) 28 Total 39 $ 307 (a) 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. (b) For Card Member loans, there have been no payment term extensions. (c) 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 Card Member loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification for the years ended December 31, 2019, 2018 and 2017. A Card Member is considered in default of a modification program after one and up to two missed payments, depending on the terms of the modification program. For all Card Members that defaulted from a modification program, the probability of default is factored into the reserves for Card Member loans and receivables. 2019 Number of Accounts Aggregated Outstanding Balances Upon Default (a) (millions) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 12 $ 86 Card Member Receivables 4 20 Total 16 $ 106 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 (a) 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, 2019 | |
Receivables [Abstract] | |
Changes in the Card Member loans reserve for losses | The following table presents changes in the Card Member loans reserve for losses for the years ended December 31: (Millions) 2019 2018 2017 Balance, January 1 $ 2,134 $ 1,706 $ 1,223 Provisions (a) 2,462 2,266 1,868 Net write-offs (b) Principal (1,860) (1,539) (1,181) Interest and fees (375) (304) (227) Other (c) 22 5 23 Balance, December 31 $ 2,383 $ 2,134 $ 1,706 (a) Provisions for principal, interest and fee reserve components. (b) Principal write-offs are presented less recoveries of $525 million, $444 million and $409 million for the years ended December 31, 2019, 2018 and 2017, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(79) million, $(33) million and $(30) million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Card Member loans and related reserves evaluated separately and collectively for impairment | The following table presents Card Member loans evaluated individually and collectively for impairment and related reserves as of December 31: (Millions) 2019 2018 2017 Card Member loans evaluated individually for impairment (a) $ 810 $ 532 $ 367 Related reserves (a) $ 159 $ 94 $ 57 Card Member loans evaluated collectively for impairment (b) $ 86,571 $ 81,322 $ 73,032 Related reserves (b) $ 2,224 $ 2,040 $ 1,649 (a) Represents loans modified as a TDR and related reserves. (b) Represents current loans and loans less than 90 days past due, loans over 90 days past due and accruing interest, and non-accrual loans. The reserves include the quantitative results of analytical models that are specific to individual pools of loans, and reserves for internal and external qualitative risk factors that apply to loans that are collectively evaluated for impairment. |
Changes in the Card Member receivable reserve for losses | The following table presents changes in the Card Member receivables reserve for losses for the years ended December 31: (Millions) 2019 2018 2017 Balance, January 1 $ 573 $ 521 $ 467 Provisions (a) 963 937 795 Net write-offs (b) (900) (859) (736) Other (c) (17) (26) (5) Balance, December 31 $ 619 $ 573 $ 521 (a) Provisions for principal and fee reserve components. (b) Net write-offs are presented less recoveries of $374 million, $367 million and $366 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amounts include net recoveries (write-offs) from TDRs of $(16) million, nil and $2 million, for the years ended December 31, 2019, 2018 and 2017, respectively. (c) Includes foreign currency translation adjustments of nil, $(6) million and $12 million, and other adjustments of $(17) million, $(20) million and $(17) million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Card Member receivables and related reserves evaluated separately and collectively for impairment | The following table presents Card Member receivables evaluated individually and collectively for impairment and related reserves as of December 31: (Millions) 2019 2018 2017 Card Member receivables evaluated individually for impairment (a) $ 211 $ 128 $ 80 Related reserves (a) $ 9 $ 7 $ 3 Card Member receivables evaluated collectively for impairment $ 57,202 $ 55,765 $ 53,967 Related reserves (b) $ 610 $ 566 $ 518 (a) Represents receivables modified as a TDR and related reserves. (b) The reserves include the quantitative results of analytical models that are specific to individual pools of receivables, and reserves for internal and external qualitative risk factors that apply to receivables that are collectively evaluated for impairment. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities by Type | The following is a summary of investment securities as of December 31: 2019 2018 2017 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 236 $ 8 $ (1) $ 243 $ 594 $ 4 $ (2) $ 596 $ 1,369 $ 11 $ (3) $ 1,377 U.S. Government agency obligations 9 — — 9 10 — — 10 11 — — 11 U.S. Government treasury obligations 7,395 35 (1) 7,429 3,452 5 (17) 3,440 1,051 3 (9) 1,045 Corporate debt securities 27 — — 27 28 — — 28 28 — — 28 Mortgage-backed securities (a) 39 2 — 41 50 1 — 51 67 2 — 69 Foreign government bonds and obligations 578 1 — 579 474 — — 474 581 — — 581 Equity securities (b) 55 25 (c) (2) 78 51 — (3) 48 51 — (3) 48 Total $ 8,339 $ 71 $ (4) $ 8,406 $ 4,659 $ 10 $ (22) $ 4,647 $ 3,158 $ 16 $ (15) $ 3,159 (a) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (b) Equity securities comprise investments in common stock, exchange-traded funds and mutual funds. (c) During 2019, an equity investment transferred from Other assets to Investment securities following the completion of an initial public offering by the issuer of the securities. The investment had a fair value of $28 million with an associated cost of $3 million as of December 31, 2019. The gross unrealized gains include $9 million that were recognized during 2018. |
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 an unrealized loss position as of December 31: 2019 2018 Less than 12 months 12 months or more Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized State and municipal obligations $ 18 $ (1) $ — $ — $ — $ — $ 82 $ (1) U.S. Government treasury obligations — — 324 (1) 224 (2) 791 (15) Total $ 18 $ (1) $ 324 $ (1) $ 224 $ (2) $ 873 $ (16) |
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 Estimated Gross Number of Estimated Gross Number of Estimated Gross 2019: 90%–100% 2 $ 18 $ (1) 3 $ 324 $ (1) 5 $ 342 $ (2) Total as of December 31, 2019 2 $ 18 $ (1) 3 $ 324 $ (1) 5 $ 342 $ (2) 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) |
Contractual Maturities of Investment Securities | Weighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2019 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) $ 6 $ 39 $ 30 $ 168 $ 243 U.S. Government agency obligations (a) — — — 9 9 U.S. Government treasury obligations 6,019 1,270 140 — 7,429 Corporate debt securities 5 22 — — 27 Mortgage-backed securities (a) — — — 41 41 Foreign government bonds and obligations 577 1 1 — 579 Total Estimated Fair Value $ 6,607 $ 1,332 $ 171 $ 218 $ 8,328 Total Cost $ 6,602 $ 1,307 $ 166 $ 209 $ 8,284 Weighted average yields (b) 2.17 % 2.27 % 3.01 % 3.99 % 2.25 % (a) The expected payments on state and municipal obligations, U.S. government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. (b) 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, 2019 | |
Asset Securitizations [Abstract] | |
Restricted cash held by trusts | The following table provides information on the restricted cash held by the Trusts as of December 31, 2019 and 2018, included in Other assets on the Consolidated Balance Sheets: (Millions) 2019 2018 Lending Trust $ 85 $ 67 Charge Trust — 3 Total $ 85 $ 70 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other assets | The following is a summary of Other assets as of December 31: (Millions) 2019 2018 Goodwill $ 3,315 $ 3,072 Other intangible assets, at amortized cost 267 275 Other (a) 11,149 10,031 Total $ 14,731 $ 13,378 |
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, 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 Acquisitions 189 66 — 255 Dispositions — — — — Other (a) (7) (3) (2) (12) Balance as of December 31, 2019 $ 889 $ 1,781 $ 645 $ 3,315 (a) Primarily includes foreign currency translation. |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits By Component Alternative | As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2019 2018 U.S.: Interest-bearing $ 72,445 $ 69,144 Non-interest-bearing (includes Card Member credit balances of: 2019, $389 million; 2018, $376 million) 415 412 Non-U.S.: Interest-bearing 23 28 Non-interest-bearing (includes Card Member credit balances of: 2019, $401 million; 2018, $367 million) 404 376 Total customer deposits $ 73,287 $ 69,960 |
Deposits By Type | Customer deposits by deposit type as of December 31 were as follows: (Millions) 2019 2018 U.S. retail deposits: Savings accounts ― Direct $ 46,394 $ 39,491 Certificates of deposit: (a) Direct 1,854 817 Third-party (brokered) 8,076 12,667 Sweep accounts ―Third-party (brokered) 16,121 16,169 Other deposits: U.S. non-interest-bearing deposits 26 36 Non-U.S. deposits 26 37 Card Member credit balances ― U.S. and non-U.S. 790 743 Total customer deposits $ 73,287 $ 69,960 (a) The weighted average remaining maturity and weighted average interest rate at issuance on the total portfolio of U.S. retail certificates of deposit issued through direct and third-party programs were 48 months and 2.53 percent, respectively, as of December 31, 2019. |
Time Deposits By Maturity | The scheduled maturities of certificates of deposit as of December 31, 2019 were as follows: (Millions) U.S. Non-U.S. Total 2020 $ 4,618 $ 14 $ 4,632 2021 2,302 — 2,302 2022 2,385 — 2,385 2023 374 — 374 2024 251 — 251 After 5 years — — — Total $ 9,930 $ 14 $ 9,944 |
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) 2019 2018 U.S. $ 622 $ 276 Non-U.S. 4 9 Total $ 626 $ 285 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [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: 2019 2018 (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) $ 3,001 1.94 % $ 752 2.71 % Other short-term borrowings (c) 3,441 1.28 2,348 1.94 Total $ 6,442 1.59 % $ 3,100 2.13 % (a) For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2019 and 2018. (b) Average commercial paper outstanding was $299 million and $228 million in 2019 and 2018, respectively. (c) 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: 2019 2018 (Millions, except percentages) Original 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 Fixed Rate Senior Notes 2020 - 2042 $ 19,326 3.17 % 2.86 % $ 14,043 3.48 % 3.64 % Floating Rate Senior Notes 2020 - 2023 4,500 3.16 — 3,600 3.17 — Fixed Rate Subordinated Notes 2024 598 3.63 2.99 598 3.63 3.66 American Express Credit Corporation Fixed Rate Senior Notes 2020 - 2027 11,839 2.40 2.56 16,677 2.28 3.06 Floating Rate Senior Notes 2020 - 2022 1,650 3.36 — 3,800 3.31 — American Express Lending Trust Fixed Rate Senior Notes 2020 - 2023 15,074 2.42 2.43 12,474 2.28 — Floating Rate Senior Notes 2021 - 2023 4,125 2.74 — 5,125 2.80 — Fixed Rate Subordinated Notes 2020 - 2022 420 2.53 — 240 2.37 — Floating Rate Subordinated Notes 2022 - 2023 79 2.45 — 167 2.96 — American Express Charge Trust II Floating Rate Conduit Borrowings — — — 1,535 2.89 — Other Finance Leases 2024 - 2033 25 5.65 — 19 5.54 — Floating Rate Borrowings 2020 - 2022 311 0.40 — % 262 0.42 — % Unamortized Underwriting Fees (112) (117) Total Long-Term Debt $ 57,835 2.78 % $ 58,423 2.77 % (a) 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. Refer to Note 13 for more details on our treatment of fair value hedges. (b) 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, 2019 and 2018. |
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, 2019 were as follows: (Millions) 2020 2021 2022 2023 2024 Thereafter Total American Express Company (Parent Company only) $ 2,000 $ 5,000 $ 5,675 $ 4,350 $ 5,000 $ 2,872 $ 24,897 American Express Credit Corporation 6,600 2,864 2,050 — — 2,000 13,514 American Express Lending Trust 6,924 3,709 6,381 2,685 — — 19,699 Other 91 137 82 — 15 11 336 $ 15,615 $ 11,710 $ 14,188 $ 7,035 $ 5,015 $ 4,883 $ 58,446 Unamortized Underwriting Fees (112) Unamortized Discount and Premium (716) Impacts due to Fair Value Hedge Accounting 217 Total Long-Term Debt $ 57,835 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other liabilities | The following is a summary of Other liabilities as of December 31: (Millions) 2019 2018 Membership Rewards liability $ 8,892 $ 8,414 Employee-related liabilities (a) 2,429 2,164 Card Member rebate and reward accruals (b) 1,790 1,596 Income tax liability (c) 1,122 1,079 Other (d) 10,715 9,321 Total $ 24,948 $ 22,574 (a) Employee-related liabilities include employee benefit plan obligations and incentive compensation. (b) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. (c) Includes repatriation tax liability of $1,012 million and $1,689 million as of December 31, 2019 and 2018, respectively, which represents our remaining obligation under the Tax Cuts and Jobs Act enacted on December 22, 2017 (Tax Act) to pay a one-time transition tax on unrepatriated earnings and profits of certain foreign subsidiaries. |
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) 2019 2018 Deferred card and other fees (a) $ 2,532 $ 2,208 Deferred direct acquisition costs (270) (282) Reserves for membership cancellations (200) (167) Deferred card and other fees, net $ 2,062 $ 1,759 (a) Includes deferred fees for Membership Rewards program participants. |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option and RSA Activity | A summary of stock option and RSU activity as of December 31, 2019, and corresponding changes during the year, are as follows: Stock Options Service-Based RSUs Service and Performance-Based RSUs (Shares in thousands) Shares Weighted-Average Shares Weighted- Shares Weighted- Outstanding as of December 31, 2018 5,484 $ 64.73 2,544 $ 80.15 4,022 $ 74.22 Granted 408 101.43 1,041 103.93 1,358 90.34 Exercised/vested (1,626) 51.92 (1,001) 76.07 (1,819) 58.28 Forfeited (94) 92.19 (172) 89.79 (169) 93.74 Expired — — — — — — Outstanding as of December 31, 2019 4,172 72.70 2,412 $ 91.42 3,392 $ 88.25 Options vested and expected to vest as of December 31, 2019 4,171 72.70 Options exercisable as of December 31, 2019 2,357 $ 61.15 |
Weighted-average Remaining Contractual Life and Aggregate Intrinsic Value of the Company's Stock Options Outstanding, Exerciseable, and Vested and Expected to Vest | The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock price exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2019, were as follows: Outstanding Exercisable Vested and Weighted-average remaining contractual life (in years) 5.3 4.0 5.3 Aggregate intrinsic value (millions) $ 216 $ 149 $ 216 |
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 2019, 2018 and 2017: 2019 2018 2017 Dividend yield 1.5 % 1.4 % 1.8 % Expected volatility (a) 24 % 22 % 24 % Risk-free interest rate 2.6 % 2.7 % 2.3 % Expected life of stock option ( in years ) (b) 7.1 7.1 6.9 Weighted-average fair value per option $ 23.38 $ 23.17 $ 18.18 (a) The expected volatility is based on both weighted historical and implied volatilities of our common stock price. (b) The expected life of stock options was determined using both historical data and expectations of option exercise behavior. 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 (a) The expected volatility is based on both weighted historical and implied volatilities of our common stock price. |
Schedule of Share-based Payment Award, Valuation Assumptions | The fair value of RSUs that do not include the r-TSR modifier, including those that contain only service conditions, is measured using our stock price on the grant date. The fair value of service and performance-based RSUs that include the r-TSR modifier is determined using a Monte Carlo valuation model with the following weighted-average assumptions: 2019 Expected volatility (a) 20 % Risk-free interest rate 2.5 % Remaining performance period (in years) 2.9 (a) The expected volatility is based on historical volatility of our common stock price. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following represents the maturities of our outstanding lease commitments as of December 31, 2019: (Millions) 2020 $ 134 2021 114 2022 100 2023 89 2024 77 Thereafter 842 Total Outstanding Fixed Lease Payments $ 1,356 Less: Amount representing interest $ (573) Lease Liabilities $ 783 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [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) 2019 2018 2019 2018 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 185 $ 34 $ — $ 74 Net investment hedges - Foreign exchange contracts 24 222 186 61 Total derivatives designated as hedging instruments 209 256 186 135 Derivatives not designated as hedging instruments: Foreign exchange contracts, including certain embedded derivatives 134 258 254 79 Total derivatives, gross 343 514 440 214 Derivative asset and derivative liability netting (b) (90) (90) (90) (90) Cash collateral netting (c) (d) (185) (28) (9) (78) Total derivatives, net $ 68 $ 396 $ 341 $ 46 (a) For our centrally cleared derivatives, variation margin payments are legally characterized as settlement payments as opposed to collateral. (b) Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement. (c) Represents the offsetting of the fair value of bilateral interest rate contracts and certain foreign exchange contracts with the right to cash collateral held from the counterparty or cash collateral posted with the counterparty. (d) We posted $47 million and $84 million as of December 31, 2019 and 2018, respectively, as initial margin on our centrally cleared interest rate swaps; such amounts are recorded within Other assets on the Consolidated Balance Sheets and are not netted against the derivative balances. |
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 years ended December 31: Gains (losses) (Millions) 2019 2018 2017 Interest expense (a) Interest expense (a) Other, net expenses Fixed-rate long-term debt $ (458) $ 59 $ 206 Derivatives designated as hedging instruments 462 (43) (246) Total $ 4 $ 16 $ (40) (a) We adopted a 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. |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following 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: 2019 2018 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 78 $ 77 $ 1 $ — $ 48 $ 1 $ 47 $ — Debt securities 8,328 — 8,328 — 4,599 — 4,599 — Derivatives, gross (a) 343 — 343 — 514 — 514 — Total Assets 8,749 77 8,672 — 5,161 1 5,160 — Liabilities: Derivatives, gross (a) 440 — 440 — 214 — 214 — Total Liabilities $ 440 $ — $ 440 $ — $ 214 $ — $ 214 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 13 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, 2019 and 2018. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2019 and 2018, and require management’s judgment. These figures may not be indicative of future fair values, nor can the fair value of American Express be estimated by aggregating the amounts presented. 2019 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 24 $ 24 $ 23 $ 1 $ — Other financial assets (b) 60 60 — 60 — Financial assets carried at other than fair value Loans, net (c) 90 91 — — 91 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 92 92 — 92 — Financial liabilities carried at other than fair value Certificates of deposit (d) 10 10 — 10 — Long-term debt (c) $ 58 $ 60 $ — $ 60 $ — 2018 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or 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 $ — (a) Level 2 amounts reflect time deposits and short-term investments. (b) Includes Card Member receivables (including fair values of Card Member receivables of $8.2 billion and $8.5 billion held by a consolidated VIE as of December 31, 2019 and 2018, respectively), other receivables, restricted cash and other miscellaneous assets. (c) Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $32.0 billion and $33.0 billion as of December 31, 2019 and 2018, respectively, and the fair values of Long-term debt were $19.8 billion and $19.4 billion as of December 31, 2019 and 2018, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance Sheets. |
Common and Preferred Shares (Ta
Common and Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [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) 2019 2018 2017 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 847 859 904 Repurchases of common shares (40) (15) (50) Other, primarily stock option exercises and restricted stock awards granted 3 3 5 Shares issued and outstanding as of December 31 810 847 859 (a) Of the common shares authorized but unissued as of December 31, 2019, approximately 19 million shares are reserved for issuance under employee stock and employee benefit plans. |
Perpetual Fixed Rate Noncumulative Preferred Shares issued and outstanding | We have the following perpetual Fixed Rate/Floating Rate Noncumulative Preferred Share series issued and outstanding as of December 31, 2019: 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 (a) 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 Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components of comprehensive income (loss), net of tax | AOCI is a balance sheet item in Shareholders’ equity 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 Gains (Losses) on Investment Foreign Currency Net Unrealized Pension Accumulated Other Balance 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 Balance 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 gain related to hedges of investments in foreign operations — 328 — 328 Pension and other postretirement benefits — — 11 11 Other 2 — — 2 Net change in accumulated other comprehensive (loss) income (8) (172) 11 (169) Balance as of December 31, 2018 (8) (2,133) (456) (2,597) Net unrealized gains 41 — — 41 Net translation gains on investments in foreign operations — 84 — 84 Net losses related to hedges of investments in foreign operations — (140) — (140) Pension and other postretirement benefits — — (125) (125) Net change in accumulated other comprehensive (loss) income 41 (56) (125) (140) Balance as of December 31, 2019 $ 33 $ (2,189) $ (581) $ (2,737) (a) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 20). |
Changes in AOCI | 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) 2019 2018 2017 Net unrealized investment securities $ 12 $ (2) $ (4) Net translation on investments in foreign operations (a) 24 (44) (172) Net hedges of investments in foreign operations (43) 107 (215) Pension and other postretirement benefits (38) 9 7 Total tax impact $ (45) $ 70 $ (384) (a) Includes $289 million of recognized tax benefits in the year ended December 31, 2017 (refer to Note 20). |
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 2019 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 |
Other Fees and Commissions an_2
Other Fees and Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Fees and Commissions and Other Expenses [Abstract] | |
Details of other commissions and fees | The following is a detail of Other fees and commissions for the years ended December 31: (Millions) 2019 2018 2017 Fees charged to Card Members: Delinquency fees $ 1,028 $ 959 $ 888 Foreign currency conversion fee revenue 982 921 851 Other customer fees: Loyalty coalition-related fees 456 461 452 Travel commissions and fees 424 395 364 Service fees and other (a) 407 417 435 Total Other fees and commissions $ 3,297 $ 3,153 $ 2,990 (a) Other includes Membership Rewards program fees that are not related to contracts with customers. |
Detail of other, net expense | The following is a detail of Other expenses for the years ended December 31: (Millions) 2019 2018 2017 Professional services $ 2,091 $ 2,125 $ 2,040 Occupancy and equipment 2,168 2,033 2,018 Other (a) 1,609 1,513 1,576 Total Other expenses $ 5,868 $ 5,671 $ 5,634 (a) Other expense primarily includes general operating expenses, communication expenses, Card Member and merchant-related fraud losses, litigation expenses, other non-income taxes and unrealized gains and losses on certain 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. 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, 2019 | |
Income Tax Disclosure [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) 2019 2018 2017 Current income tax expense: U.S. federal $ 1,108 $ 70 $ 3,408 U.S. state and local 276 150 259 Non-U.S. 437 681 387 Total current income tax expense 1,821 901 4,054 Deferred income tax (benefit) expense: U.S. federal (58) 276 544 U.S. state and local (31) 78 (12) Non-U.S. (62) (54) 91 Total deferred income tax (benefit) expense (151) 300 623 Total income tax expense $ 1,670 $ 1,201 $ 4,677 |
Effective income tax rate | A reconciliation of the U.S. federal statutory rate of 21 percent as of both December 31, 2019 and 2018, and 35 percent as of December 31, 2017, to our actual income tax rate was as follows: 2019 2018 2017 U.S. statutory federal income tax rate 21.0 % 21.0 % 35.0 % (Decrease) increase in taxes resulting from: Tax-exempt income (1.9) (1.7) (1.7) State and local income taxes, net of federal benefit 2.8 2.8 2.3 Non-U.S. subsidiaries' earnings (a) (0.7) (0.5) (5.7) Tax settlements (b) (0.3) (1.9) (0.7) U.S. Tax Act (c) — (1.1) 34.8 U.S. Tax Act - related adjustments (d) — (3.2) — Other (1.1) (0.6) (1.0) Actual tax rates 19.8 % 14.8 % 63.0 % (a) 2017 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. (b) 2018 primarily included a settlement of the IRS examination for tax years 2008-2014, as well as the resolution of certain tax matters in various jurisdictions. (c) 2017 included a $2.6 billion provisional charge for the impacts of the Tax Act and the adjustments thereto are included in 2018. (d) Related 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) 2019 2018 Deferred tax assets: Reserves not yet deducted for tax purposes $ 2,633 $ 2,612 Employee compensation and benefits 365 360 Other 536 431 Gross deferred tax assets 3,534 3,403 Valuation allowance (66) (61) Deferred tax assets after valuation allowance 3,468 3,342 Deferred tax liabilities: Intangibles and fixed assets 1,279 1,083 Deferred revenue 315 435 Deferred interest 162 171 Investment in joint ventures 122 137 Other 129 210 Gross deferred tax liabilities 2,007 2,036 Net deferred tax assets $ 1,461 $ 1,306 |
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: (Millions) 2019 2018 2017 Balance, January 1 $ 701 $ 821 $ 974 Increases: Current year tax positions 66 152 200 Tax positions related to prior years 78 47 39 Effects of foreign currency translations 10 — — Decreases: Tax positions related to prior years (a) (14) (74) (289) Settlements with tax authorities (b) (40) (192) (77) Lapse of statute of limitations (75) (44) (26) Effects of foreign currency translations — (9) — Balance, December 31 $ 726 $ 701 $ 821 (a) 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. (b) 2018 included a settlement of the IRS examination for tax years 2008-2014 and 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, 2019 | |
Earnings Per Share [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) 2019 2018 2017 Numerator: Basic and diluted: Net income $ 6,759 $ 6,921 $ 2,748 Preferred dividends (81) (80) (81) Net income available to common shareholders 6,678 6,841 2,667 Earnings allocated to participating share awards (a) (47) (54) (21) Net income attributable to common shareholders $ 6,631 $ 6,787 $ 2,646 Denominator: (a) Basic: Weighted-average common stock 828 856 883 Add: Weighted-average stock options (b) 2 3 3 Diluted 830 859 886 Basic EPS $ 8.00 $ 7.93 $ 3.00 Diluted EPS $ 7.99 $ 7.91 $ 2.99 (a) 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. (b) The dilutive effect of unexercised stock options excludes from the computation of EPS 0.2 million, 0.7 million and 0.6 million of options for the years ended December 31, 2019, 2018 and 2017, respectively, because inclusion of the options would have been anti-dilutive. |
Regulatory Matters and Capita_2
Regulatory Matters and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory capital ratios | The following table presents the regulatory capital ratios: (Millions, except percentages) CET 1 Tier 1 capital Total capital CET 1 Capital Tier 1 capital Total capital Tier 1 leverage Supplementary December 31, 2019: (a) American Express Company $ 18,056 $ 19,628 $ 22,213 10.7 % 11.6 % 13.2 % 10.2 % 8.8 % American Express National Bank $ 13,600 $ 13,600 $ 15,688 13.4 % 13.4 % 15.4 % 11.1 % 9.3 % 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 % Well-capitalized ratios (b) 6.5 % 8.0 % 10.0 % 5.0 % N/A Basel III Standards 2019 (c) 7.0 % 8.5 % 10.5 % 4.0 % 3.0 % Minimum capital ratios (d) 4.5 % 6.0 % 8.0 % 4.0 % 3.0 % (a) 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. (b) Represents requirements for banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Deposit Insurance Corporation Improvement Act. There is no CET1 capital ratio, Tier 1 leverage ratio or supplementary leverage ratio (SLR) requirement for a bank holding company to be considered “well capitalized.” (c) Basel III minimum capital requirement and additional capital conservation buffer as defined by the Federal Reserve and OCC for calendar year 2019. The additional capital conservation buffer does not apply to Tier 1 leverage ratio or SLR. (d) As defined by the regulations issued by the Federal Reserve and OCC. |
Significant Credit Concentrat_2
Significant Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [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) 2019 2018 Individuals (a) $ 131 $ 123 Financial Services (b) 26 30 Institutions (c) 20 20 U.S. Government and agencies (d) 8 4 Total on-balance sheet $ 185 $ 177 (a) Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. (b) Represents banks, broker-dealers, insurance companies and savings and loan associations. (c) Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. (d) Represent 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) 2019 2018 On-balance sheet: U.S. $ 115 $ 111 Non-U.S. 30 27 On-balance sheet 145 138 Unused lines-of-credit: (a) U.S. 245 249 Non-U.S. 61 53 Total unused lines-of-credit $ 306 $ 302 (a) 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. Our charge card products generally have no pre-set spending limit, and therefore are not reflected in unused credit available to Card Members. |
Reportable Operating Segments_2
Reportable Operating Segments and Geographic Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [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, 2019, 2018 and 2017: (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated 2019 Non-interest revenues $ 15,972 $ 12,623 $ 6,252 $ 89 $ 34,936 Revenue from contracts with customers (b) 11,041 10,891 6,215 12 28,159 Interest income 9,413 1,900 28 743 12,084 Interest expense 1,806 995 (365) 1,028 3,464 Total revenues net of interest expense 23,579 13,528 6,645 (196) 43,556 Total provisions 2,636 917 20 — 3,573 Pretax income (loss) from continuing operations 4,024 3,066 3,148 (1,809) 8,429 Income tax provision (benefit) 762 590 736 (418) 1,670 Net income (loss) 3,262 2,476 2,412 (1,391) 6,759 Total assets (billions) $ 106 $ 53 $ 18 $ 21 $ 198 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) $ 102 $ 51 $ 16 $ 20 $ 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 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) $ 95 $ 49 $ 20 $ 17 $ 181 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes 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 2019 Total revenues net of interest expense $ 32,557 $ 4,465 $ 3,915 $ 2,816 $ (197) $ 43,556 Pretax income (loss) from continuing operations 7,262 1,243 833 903 (1,812) 8,429 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 (a) EMEA represents Europe, the Middle East and Africa; JAPA represents Japan, Asia/Pacific and Australia; and LACC represents Latin America, Canada and the Caribbean. (b) Other Unallocated includes net costs which are not directly allocated 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, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Income | PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2019 2018 2017 Revenues Non-interest revenues Other $ 598 $ 426 $ 358 Total non-interest revenues 598 426 358 Interest income 692 422 258 Interest expense 902 615 493 Total revenues net of interest expense 388 233 123 Expenses Salaries and employee benefits 366 336 362 Other 816 607 553 Total expenses 1,182 943 915 Pretax loss (794) (710) (792) Income tax benefit (282) (179) (354) Net loss before equity in net income of subsidiaries and affiliates (512) (531) (438) Equity in net income of subsidiaries and affiliates 7,271 7,452 3,186 Net income $ 6,759 $ 6,921 $ 2,748 |
Condensed Balance Sheets | PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2019 2018 Assets Cash and cash equivalents $ 4,430 $ 3,287 Equity in net assets of subsidiaries and affiliates 23,165 22,298 Loans to subsidiaries and affiliates 22,350 17,945 Due from subsidiaries and affiliates 1,168 1,783 Other assets 223 297 Total assets 51,336 45,610 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 2,197 1,961 Due to subsidiaries and affiliates 609 577 Debt with subsidiaries and affiliates 1,091 2,591 Long-term debt 24,368 18,191 Total liabilities 28,265 23,320 Shareholders’ Equity Total shareholders’ equity 23,071 22,290 Total liabilities and shareholders’ equity $ 51,336 $ 45,610 |
Condensed Cash Flows | PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2019 2018 2017 Cash Flows from Operating Activities Net income $ 6,759 $ 6,921 $ 2,748 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (7,271) (7,452) (3,186) Dividends received from subsidiaries and affiliates 6,370 3,222 5,755 Other operating activities, primarily with subsidiaries and affiliates 1,315 (257) 659 Net cash provided by operating activities 7,173 2,434 5,976 Cash Flows from Investing Activities Maturities and redemptions of investment securities 1 — — Loans to subsidiaries and affiliates (4,405) (6,281) (4,044) Investments in subsidiaries and affiliates (15) (30) — Other investing activities 82 — — Net cash used in investing activities (4,337) (6,311) (4,044) Cash Flows from Financing Activities Proceeds from long-term debt 6,469 9,350 5,900 Payments of long-term debt (641) (3,850) (1,500) Short-term debt of subsidiaries and affiliates (1,500) (140) (1,313) Issuance of American Express common shares 86 87 129 Repurchase of American Express common shares and other (4,685) (1,685) (4,400) Dividends paid (1,422) (1,324) (1,251) Net cash (used in) provided by financing activities (1,693) 2,438 (2,435) Net increase (decrease) in cash and cash equivalents 1,143 (1,439) (503) Cash and cash equivalents at beginning of year 3,287 4,726 5,229 Cash and cash equivalents at end of year $ 4,430 $ 3,287 $ 4,726 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial data | QUARTERLY FINANCIAL DATA (UNAUDITED ) (Millions, except per share amounts) 2019 2018 Quarters Ended 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 Total revenues net of interest expense $ 11,365 $ 10,989 $ 10,838 $ 10,364 $ 10,474 $ 10,144 $ 10,002 $ 9,718 Pretax income 1,986 2,266 2,219 1,958 1,831 2,118 2,091 2,082 Net income 1,693 1,755 1,761 1,550 2,010 1,654 1,623 1,634 Earnings Per Common Share — Basic: Net income attributable to common shareholders (a) 2.04 2.09 2.07 1.81 2.33 1.89 1.85 1.86 Earnings Per Common Share — Diluted: Net income attributable to common shareholders (a) 2.03 2.08 2.07 1.80 2.32 1.88 1.84 1.86 Cash dividends declared per common share $ 0.43 $ 0.43 $ 0.39 $ 0.39 $ 0.39 $ 0.39 $ 0.35 $ 0.35 (a) Represents net income, less (i) earnings allocated to participating share awards of $12 million, $11 million, $13 million and $11 million for the quarters ended December 31, September 30, June 30 and March 31, 2019, respectively, and $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 (ii) dividends on preferred shares of $20 million, $21 million, $19 million and $21 million for the quarters ended December 31, September 30, June 30 and March 31, 2019, respectively, and $19 million, $20 million, $20 million and $21 million for the quarters ended December 31, September 30, June 30 and March 31, 2018, respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Receivable reserves | $ 619 | $ 573 | $ 521 | $ 467 | |
Current and deferred tax | 1,461 | 1,306 | |||
Decrease in retained earnings | $ (13,871) | $ (12,499) | |||
Subsequent Event [Member] | ASU 2016-13 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Loan reserves | $ 1,700 | ||||
Receivable reserves | 500 | ||||
Current and deferred tax | 300 | ||||
Decrease in retained earnings | $ 900 | ||||
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Contract terms with large merchants | 3 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Contract terms with large merchants | 7 years | ||||
Building Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
Building Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 10 years | ||||
Premises [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 40 years | ||||
Premises [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 50 years | ||||
Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 5 years | ||||
Leasehold Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 5 years | ||||
Leasehold Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 10 years |
Loans and Accounts Receivable_2
Loans and Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans segment information | ||||
Card Member loans | $ 87,381 | $ 81,854 | ||
Less: Reserve for Losses | 2,383 | 2,134 | $ 1,706 | $ 1,223 |
Card Member loans, net | 84,998 | 79,720 | ||
Other loans, less reserves | 4,626 | 3,676 | ||
Accounts Receivable and Loans Textuals [Abstract] | ||||
Other loans, reserves | 152 | 124 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Loans segment information | ||||
Card Member loans | 32,230 | 33,194 | ||
Global Consumer Services Group [Member] | ||||
Loans segment information | ||||
Card Member loans | 73,266 | 69,458 | ||
Global Commercial Services [Member] | ||||
Loans segment information | ||||
Card Member loans | $ 14,115 | $ 12,396 |
Loans and Accounts Receivable_3
Loans and Accounts Receivable (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable segment information | ||||
Card Member receivables | $ 57,413 | $ 55,893 | ||
Less: Reserve for losses | 619 | 573 | $ 521 | $ 467 |
Card Member receivables, net | 56,794 | 55,320 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 8,284 | 8,539 | ||
Global Consumer Services Group [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | 22,844 | 21,455 | ||
Global Commercial Services [Member] | ||||
Accounts receivable segment information | ||||
Card Member receivables | $ 34,569 | $ 34,438 |
Loans and Accounts Receivable_4
Loans and Accounts Receivable (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing receivable recorded investment aging | ||
Card member loans | $ 87,381 | $ 81,854 |
Card Member receivables | 57,413 | 55,893 |
Global Consumer Services Group [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 73,266 | 69,458 |
Card Member receivables | 22,844 | 21,455 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 73,266 | 69,458 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 22,844 | 21,455 |
Global Consumer Services Group [Member] | Financial Receivables, Current [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 72,101 | 68,442 |
Global Consumer Services Group [Member] | Financial Receivables, Current [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 22,560 | 21,207 |
Global Consumer Services Group [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 322 | 290 |
Global Consumer Services Group [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 86 | 80 |
Global Consumer Services Group [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 253 | 220 |
Global Consumer Services Group [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 58 | 50 |
Global Consumer Services Group [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 590 | 506 |
Global Consumer Services Group [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 140 | 118 |
Global Small Business Services [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 14,079 | 12,351 |
Global Small Business Services [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 17,404 | 16,728 |
Global Small Business Services [Member] | Financial Receivables, Current [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 13,898 | 12,195 |
Global Small Business Services [Member] | Financial Receivables, Current [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 17,113 | 16,460 |
Global Small Business Services [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 56 | 51 |
Global Small Business Services [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 99 | 101 |
Global Small Business Services [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 40 | 32 |
Global Small Business Services [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 58 | 53 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 85 | 73 |
Global Small Business Services [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 134 | 114 |
Global Corporate Payments [Member] | Card Member Loans [Member] | ||
Financing receivable recorded investment aging | ||
Card member loans | 36 | 45 |
Global Corporate Payments [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | 17,165 | 17,710 |
Global Corporate Payments [Member] | 90+ days past due [Member] | Card Member Receivables [Member] | ||
Financing receivable recorded investment aging | ||
Card Member receivables | $ 136 | $ 129 |
Loans and Accounts Receivable_5
Loans and Accounts Receivable (Details 3) | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 2.30% | 2.10% |
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 | 2.80% | 2.50% |
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 | 1.60% | 1.50% |
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 | 1.70% | 1.60% |
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 | 1.90% | 1.80% |
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 | 1.20% | 1.20% |
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 | 1.90% | 1.70% |
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 | 2.20% | 2.00% |
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 | 1.30% | 1.30% |
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 | 1.90% | 1.70% |
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 | 2.10% | 2.00% |
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 | 1.70% | 1.60% |
Global Corporate Payments [Member] | Net Loss Ratio as a % of Charge Volume [Member] | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.08% | 0.11% |
Global Corporate Payments [Member] | 90 days past billing as a percentage of receivables [Member} | ||
Credit Quality Indicator for Loans and Receivables | ||
Credit Quality Indicators | 0.80% | 0.70% |
Loans and Accounts Receivable_6
Loans and Accounts Receivable (Details 4) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 428 | $ 387 | $ 327 |
Non-accrual loans | 338 | 279 | 199 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 762 | 462 | 261 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 259 | 198 | 186 |
Total impaired loans and receivables | 1,787 | 1,326 | 973 |
Unpaid principal balance | 1,629 | 1,212 | 892 |
Related allowance for Troubled Debt Restructurings | 168 | 101 | 60 |
Accounts Receivable and Loans (Textuals) [Abstract] | |||
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 26 | 17 | 15 |
Total loans and receivables modified as a TDR, non-accrual | 10 | 6 | 5 |
Out of Program TDR accounts that completed modification programs | 188 | 148 | 141 |
Out of Program TDR accounts not in compliance with modification programs | 72 | 50 | 45 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 384 | 344 | 289 |
Non-accrual loans | 284 | 236 | 168 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 500 | 313 | 178 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 175 | 131 | 131 |
Total impaired loans and receivables | 1,343 | 1,024 | 766 |
Unpaid principal balance | 1,199 | 923 | 694 |
Related allowance for Troubled Debt Restructurings | 137 | 80 | 49 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | Outside the United States [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 93 | 69 | 56 |
Unpaid principal balance | 77 | 68 | 55 |
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 | 56 | 29 | 15 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 16 | 13 | 9 |
Total impaired loans and receivables | 72 | 42 | 24 |
Unpaid principal balance | 72 | 42 | 24 |
Related allowance for Troubled Debt Restructurings | 3 | 2 | 1 |
Global Commercial Services [Member] | Card Member Loans [Member] | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 44 | 43 | 38 |
Non-accrual loans | 54 | 43 | 31 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 97 | 59 | 31 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 38 | 29 | 27 |
Total impaired loans and receivables | 233 | 174 | 127 |
Unpaid principal balance | 220 | 161 | 118 |
Related allowance for Troubled Debt Restructurings | 22 | 14 | 8 |
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 | 109 | 61 | 37 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 30 | 25 | 19 |
Total impaired loans and receivables | 139 | 86 | 56 |
Unpaid principal balance | 138 | 86 | 56 |
Related allowance for Troubled Debt Restructurings | $ 6 | $ 5 | $ 2 |
Loans and Accounts Receivable_7
Loans and Accounts Receivable (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Average balance of impaired loans | $ 1,530 | $ 1,134 | $ 884 |
Interest income recognized | 161 | 130 | 102 |
Global Consumer Services Group [Member] | Card Member Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average balance of impaired loans | 1,159 | 878 | 699 |
Interest income recognized | 136 | 109 | 85 |
Global Consumer Services Group [Member] | Card Member Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average balance of impaired loans | 56 | 33 | 20 |
Interest income recognized | 0 | 0 | 0 |
Global Commercial Services [Member] | Card Member Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average balance of impaired loans | 203 | 150 | 120 |
Interest income recognized | 25 | 21 | 17 |
Global Commercial Services [Member] | Card Member Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average balance of impaired loans | 112 | 73 | 45 |
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, 2019USD ($)accountbp | Dec. 31, 2018USD ($)bpaccount | Dec. 31, 2017USD ($)accountbp | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 87 | 57 | 39 |
Outstanding Balance | $ | $ 812 | $ 487 | $ 307 |
Card Member Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 78 | 51 | 33 |
Outstanding Balance | $ | $ 602 | $ 377 | $ 224 |
Average Interest Rate Reduction | bp | 13 | 12 | 10 |
Card Member Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 9 | 6 | 6 |
Outstanding Balance | $ | $ 210 | $ 110 | $ 83 |
Average Payment Term Extension | 26 months | 28 months | 28 months |
Loans and Accounts Receivable_9
Loans and Accounts Receivable (Details 7) account in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)account | Dec. 31, 2018USD ($)account | Dec. 31, 2017USD ($)account | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 16 | 12 | 9 |
Aggregated outstanding balance upon payment default | $ | $ 106 | $ 57 | $ 46 |
Card Member Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 12 | 8 | 6 |
Aggregated outstanding balance upon payment default | $ | $ 86 | $ 46 | $ 39 |
Card Member Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 4 | 4 | 3 |
Aggregated outstanding balance upon payment default | $ | $ 20 | $ 11 | $ 7 |
Reserves for Losses (Details)
Reserves for Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reserve for Losses [Roll Forward] | |||
Balance, January 1 | $ 2,134 | $ 1,706 | $ 1,223 |
Card Member loans provisions | 2,462 | 2,266 | 1,868 |
Other | 17 | 26 | 5 |
Balance, December 31 | 2,383 | 2,134 | 1,706 |
Provisions for loans and lease losses deductions net write offs principal [Member] | |||
Reserve for Losses [Roll Forward] | |||
Net write-offs | (1,860) | (1,539) | (1,181) |
Provisions for loans and lease losses deductions net write offs interest and fees [Member] | |||
Reserve for Losses [Roll Forward] | |||
Net write-offs | (375) | (304) | (227) |
Provisions for loans and lease losses other [Member] | |||
Reserve for Losses [Roll Forward] | |||
Other | $ 22 | $ 5 | $ 23 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Card Member Loans And Related Reserves Evaluated Separately And Collectively For Impairment [Line Items] | |||
Card Member loans evaluated individually for impairment | $ 810 | $ 532 | $ 367 |
Related reserves, Card Member loans evaluated individually for impairment | 159 | 94 | 57 |
Card Member loans evaluated collectively for impairment | 86,571 | 81,322 | 73,032 |
Related reserves, Related reserves, Card Member loans evaluated collectively for impairment | $ 2,224 | $ 2,040 | $ 1,649 |
Reserves for Losses (Details 2)
Reserves for Losses (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable Reserve Roll Forward [line Items] | |||
Balance, January 1 | $ 573 | $ 521 | $ 467 |
Provisions | 963 | 937 | 795 |
Other | (17) | (26) | (5) |
Balance, December 31 | 619 | 573 | 521 |
Principal Write-Offs [Member] | |||
Accounts Receivable Reserve Roll Forward [line Items] | |||
Net write-offs | $ (900) | $ (859) | $ (736) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Card Member Receivables And Related Reserves Evaluated Separately and Collectively For Impairment [Line Items] | |||
Card Member receivables evaluated individually for impairment | $ 211 | $ 128 | $ 80 |
Related reserves, Card Member receivables evaluated individually for impairment | 9 | 7 | 3 |
Card Member receivables evaluated collectively for impairment | 57,202 | 55,765 | 53,967 |
Related reserves, Related reserves, Card Member receivables evaluated collectively for impairment | $ 610 | $ 566 | $ 518 |
Reserves For Losses (Details Te
Reserves For Losses (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Card member loans, recoveries of bad debts | $ 525,000,000 | $ 444,000,000 | $ 409,000,000 |
Card member loans, recoveries of bad debts - TDR | (79,000,000) | (33,000,000) | (30,000,000) |
Card member receivables, recoveries of bad debts | 374,000,000 | 367,000,000 | 366,000,000 |
Card member receivables, recoveries of bad debts - TDR | (16,000,000) | 0 | 2,000,000 |
Foreign Currency Translation Adjustments [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net write-offs | 4,000,000 | (11,000,000) | 8,000,000 |
Card Member receivable reserves for losses - Other | 0 | (6,000,000) | 12,000,000 |
Other Items [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net write-offs | 18,000,000 | 16,000,000 | 15,000,000 |
Card Member receivable reserves for losses - Other | $ 17,000,000 | $ 20,000,000 | $ 17,000,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Available-for-sale debt securities | |||
Available-for-sale debt securities, Cost | $ 8,284 | ||
Available-for-sale debt securities, Estimated Fair Value | $ 4,599 | 8,328 | |
Equity securities | |||
Equity securities, Cost | 51 | 55 | $ 51 |
Equity securities, Unrealized Gains | 0 | 25 | 0 |
Equity securities, Unrealized Losses | (3) | (2) | (3) |
Equity securities | 48 | 78 | 48 |
Total Cost | 4,659 | 8,339 | 3,158 |
Total Unrealized Gains | 10 | 71 | 16 |
Total Unrealized Losses | (22) | (4) | (15) |
Total Estimated Fair Value | 4,647 | 8,406 | 3,159 |
State and municipal obligations [Member] | |||
Available-for-sale debt securities | |||
Available-for-sale debt securities, Cost | 594 | 236 | 1,369 |
Available-for-sale debt securities, Unrealized Gains | 4 | 8 | 11 |
Available-for-sale debt securities, Unrealized Losses | (2) | (1) | (3) |
Available-for-sale debt securities, Estimated Fair Value | 596 | 243 | 1,377 |
US Government Agencies Obligations [Member] | |||
Available-for-sale debt securities | |||
Available-for-sale debt securities, Cost | 10 | 9 | 11 |
Available-for-sale debt securities, Unrealized Gains | 0 | 0 | 0 |
Available-for-sale debt securities, Unrealized Losses | 0 | 0 | 0 |
Available-for-sale debt securities, Estimated Fair Value | 10 | 9 | 11 |
US government treasury obligations [Member] | |||
Available-for-sale debt securities | |||
Available-for-sale debt securities, Cost | 3,452 | 7,395 | 1,051 |
Available-for-sale debt securities, Unrealized Gains | 5 | 35 | 3 |
Available-for-sale debt securities, Unrealized Losses | (17) | (1) | (9) |
Available-for-sale debt securities, Estimated Fair Value | 3,440 | 7,429 | 1,045 |
Corporate Debt Securities [Member] | |||
Available-for-sale debt securities | |||
Available-for-sale debt securities, Cost | 28 | 27 | 28 |
Available-for-sale debt securities, Unrealized Gains | 0 | 0 | 0 |
Available-for-sale debt securities, Unrealized Losses | 0 | 0 | 0 |
Available-for-sale debt securities, Estimated Fair Value | 28 | 27 | 28 |
Mortgage-backed securities [Member] | |||
Available-for-sale debt securities | |||
Available-for-sale debt securities, Cost | 50 | 39 | 67 |
Available-for-sale debt securities, Unrealized Gains | 1 | 2 | 2 |
Available-for-sale debt securities, Unrealized Losses | 0 | 0 | 0 |
Available-for-sale debt securities, Estimated Fair Value | 51 | 41 | 69 |
Foreign Government Bonds and Obligations [Member] | |||
Available-for-sale debt securities | |||
Available-for-sale debt securities, Cost | 474 | 578 | 581 |
Available-for-sale debt securities, Unrealized Gains | 0 | 1 | 0 |
Available-for-sale debt securities, Unrealized Losses | 0 | 0 | 0 |
Available-for-sale debt securities, Estimated Fair Value | 474 | 579 | $ 581 |
Transferred Equity Investment [Member] | |||
Equity securities | |||
Equity securities, Cost | 3 | ||
Equity securities | $ 28 | ||
Equity securities, unrealized gains | $ 9 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 18 | $ 224 |
Estimated Fair Value, 12 months or more | 324 | 873 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | (2) |
Gross Unrealized Losses, 12 months or more | (1) | (16) |
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 | 18 | 0 |
Estimated Fair Value, 12 months or more | 0 | 82 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | 0 |
Gross Unrealized Losses, 12 months or more | 0 | (1) |
US government treasury obligations [Member] | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 0 | 224 |
Estimated Fair Value, 12 months or more | 324 | 791 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | 0 | (2) |
Gross Unrealized Losses, 12 months or more | $ (1) | $ (15) |
Investment Securities (Detail_2
Investment Securities (Details 2) $ in Millions | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Available-for-sale investment securities with gross unrealized losses | ||
Number of Securities, Less than 12 months | security | 2 | 2 |
Number of Securities, 12 months or more | security | 3 | 29 |
Number of Securities, Total | security | 5 | 31 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 18 | $ 224 |
Estimated Fair Value, 12 months or more | 324 | 873 |
Estimated Fair Value, Total | 342 | 1,097 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | (2) |
Gross Unrealized Losses, 12 months or more | (1) | (16) |
Gross Unrealized Losses, Total | $ (2) | $ (18) |
Ratio Of Fair Value To Amortized Cost Between Ninety And One Hundred Percent [Member] | ||
Available-for-sale investment securities with gross unrealized losses | ||
Number of Securities, Less than 12 months | security | 2 | 2 |
Number of Securities, 12 months or more | security | 3 | 29 |
Number of Securities, Total | security | 5 | 31 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 18 | $ 224 |
Estimated Fair Value, 12 months or more | 324 | 873 |
Estimated Fair Value, Total | 342 | 1,097 |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | (2) |
Gross Unrealized Losses, 12 months or more | (1) | (16) |
Gross Unrealized Losses, Total | $ (2) | $ (18) |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | $ 6,607 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 1,332 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 171 | ||
Estimated Fair Value, Due after 10 years | 218 | ||
Total | 8,328 | $ 4,599 | |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Due within 1 year | 6,602 | ||
Due after 1 year but within 5 years | 1,307 | ||
Due after 5 years but within 10 years | 166 | ||
Due after 10 years | 209 | ||
Available-for-sale debt securities, Cost | $ 8,284 | ||
Weighted average yields | |||
Weighted average yields, due within 1 year | 2.17% | ||
Weighted averge yields, due after 1 years but within 5 years | 2.27% | ||
Weighted averge yields, due after 5 years but within 10 years | 3.01% | ||
Weighted average yield, due after 10 years | 3.99% | ||
Weighted average yields, Total | 2.25% | ||
State and municipal obligations [Member] | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | $ 6 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 39 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 30 | ||
Estimated Fair Value, Due after 10 years | 168 | ||
Total | 243 | 596 | $ 1,377 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Available-for-sale debt securities, Cost | 236 | 594 | 1,369 |
US Government agencies 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 | 9 | ||
Total | 9 | 10 | 11 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Available-for-sale debt securities, Cost | 9 | 10 | 11 |
US government treasury obligations [Member] | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 6,019 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 1,270 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 140 | ||
Estimated Fair Value, Due after 10 years | 0 | ||
Total | 7,429 | 3,440 | 1,045 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Available-for-sale debt securities, Cost | 7,395 | 3,452 | 1,051 |
Corporate debt securities [Member] | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 5 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 22 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 0 | ||
Estimated Fair Value, Due after 10 years | 0 | ||
Total | 27 | 28 | 28 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Available-for-sale debt securities, Cost | 27 | 28 | 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 | 41 | ||
Total | 41 | 51 | 69 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Available-for-sale debt securities, Cost | 39 | 50 | 67 |
Foreign Government Bonds and Obligations [Member] | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 577 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 1 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 1 | ||
Estimated Fair Value, Due after 10 years | 0 | ||
Total | 579 | 474 | 581 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Available-for-sale debt securities, Cost | $ 578 | $ 474 | $ 581 |
Investment Securities (Detail_4
Investment Securities (Details Textuals) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Combined tax at U.S. statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | $ 514 | $ 363 | $ 336 |
American Express Lending Trust [Member] | |||
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | 85 | 67 | |
American Express Charge Trust II [Member] | |||
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | 0 | 3 | |
Restricted cash held by trusts [Member] | |||
Securitized Trusts [Line Items] | |||
Restricted cash included in Other assets per Consolidated Balance Sheets | $ 85 | $ 70 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
American Express Lending Trust [Member] | ||
Securitized Trusts [Line Items] | ||
Direct and Indirect Ownership of Variable Interests | $ 12.9 | $ 15.5 |
American Express Charge Trust II [Member] | ||
Securitized Trusts [Line Items] | ||
Direct and Indirect Ownership of Variable Interests | $ 8.3 | $ 7 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | |||
Goodwill | $ 3,315 | $ 3,072 | $ 3,009 |
Other intangible assets, at amortized cost | 267 | 275 | |
Other | 11,149 | 10,031 | |
Total | $ 14,731 | $ 13,378 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 3,072 | $ 3,009 |
Acquisitions | 255 | 90 |
Dispositions | 0 | 0 |
Other | (12) | (27) |
Goodwill, ending balance | 3,315 | 3,072 |
Global Consumer Services Group [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 707 | 637 |
Acquisitions | 189 | 90 |
Dispositions | 0 | 0 |
Other | (7) | (20) |
Goodwill, ending balance | 889 | 707 |
Global Commercial Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,718 | 1,724 |
Acquisitions | 66 | 0 |
Dispositions | 0 | 0 |
Other | (3) | (6) |
Goodwill, ending balance | 1,781 | 1,718 |
Global Merchant and Network Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 647 | 648 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Other | (2) | (1) |
Goodwill, ending balance | $ 645 | $ 647 |
Other Assets (Details Textuals)
Other Assets (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Assets [Line Items] | |||
Accumulated goodwill impairment losses | $ 221 | $ 221 | |
Gross carrying amount | 704 | 702 | |
Accumulated amortization | 437 | 427 | |
Amortization expense | 49 | 212 | $ 207 |
Tax credit investments | 1,154 | 1,043 | |
Tax credit investments - Affordable Housing partnerships | $ 1,109 | 1,006 | |
Minimum [Member] | |||
Other Assets [Line Items] | |||
Estimated useful lives | 1 year | ||
Maximum [Member] | |||
Other Assets [Line Items] | |||
Estimated useful lives | 22 years | ||
Other Expense [Member] | |||
Other Assets [Line Items] | |||
Equity method losses related to QAH investments | $ 101 | 126 | |
Income Tax Provision [Member] | |||
Other Assets [Line Items] | |||
QAH Tax Credits for equity method losses | 119 | 97 | |
Other Liabilities [Member] | |||
Other Assets [Line Items] | |||
QAH unfunded commitment | 211 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Other Assets [Line Items] | |||
Tax credit investments - Affordable Housing partnerships | 1,032 | $ 936 | |
Affordable Housing Program off balance sheet obligation | 78 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Other Liabilities [Member] | |||
Other Assets [Line Items] | |||
QAH unfunded commitment | $ 187 | ||
Latest Year [Member] | Other Liabilities [Member] | |||
Other Assets [Line Items] | |||
Affordable housing tax credits commitment, year to be paid | 2043 | ||
Earliest Year [Member] | Other Liabilities [Member] | |||
Other Assets [Line Items] | |||
Affordable housing tax credits commitment, year to be paid | 2020 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
U.S.: | ||
Interest-bearing | $ 72,445 | $ 69,144 |
Non-interest-bearing | 415 | 412 |
Non-U.S.: | ||
Interest-bearing | 23 | 28 |
Non-interest-bearing | 404 | 376 |
Total customer deposits | 73,287 | 69,960 |
Card Member Credit Balances [Member] | ||
U.S.: | ||
Non-interest-bearing | 389 | 376 |
Non-U.S.: | ||
Non-interest-bearing | $ 401 | $ 367 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
U.S. retail deposits: | ||
Savings accounts - Direct | $ 46,394 | $ 39,491 |
Certificates of deposit - Direct | 1,854 | 817 |
Certificates of deposit - Third-party (brokered) | 8,076 | 12,667 |
Sweep accounts - Third-party (brokered) | 16,121 | 16,169 |
Other Customer Deposits | ||
U.S. non-interest bearing deposits | 26 | 36 |
Non-US deposits | 26 | 37 |
Card Member credit balances ― U.S. and non-U.S. | 790 | 743 |
Total customer deposits | $ 73,287 | $ 69,960 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Dec. 31, 2019USD ($) |
Time Deposits By Maturity | |
2020 | $ 4,632 |
2021 | 2,302 |
2022 | 2,385 |
2023 | 374 |
2024 | 251 |
After 5 years | 0 |
Total | 9,944 |
United States [Member] | |
Time Deposits By Maturity | |
2020 | 4,618 |
2021 | 2,302 |
2022 | 2,385 |
2023 | 374 |
2024 | 251 |
After 5 years | 0 |
Total | 9,930 |
Non-US [Member] | |
Time Deposits By Maturity | |
2020 | 14 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
After 5 years | 0 |
Total | $ 14 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits of $250,000 or more | $ 626 | $ 285 |
United States [Member] | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits of $250,000 or more | 622 | 276 |
Non-US [Member] | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits of $250,000 or more | $ 4 | $ 9 |
Customer Deposits (Details Text
Customer Deposits (Details Textuals) | 12 Months Ended |
Dec. 31, 2019 | |
Customer Deposits Textuals [Abstract] | |
Weighted average maturity of certificate of deposits | 48 months |
Weighted average interest rate on U.S. retail certificates of deposit | 2.53% |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 6,442 | $ 3,100 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 1.59% | 2.13% |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 3,001 | $ 752 |
Commercial Paper [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 1.94% | 2.71% |
Other Short Term Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 3,441 | $ 2,348 |
Other Short Term Borrowings [Member] | Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt | 1.28% | 1.94% |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 57,835 | $ 58,423 |
Unamortized Underwriting Fees | $ (112) | $ (117) |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.78% | 2.77% |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 24,368 | $ 18,191 |
Fixed Rate Senior Notes [Member] | Parent Company [Member] | American Express Company [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 19,326 | $ 14,043 |
Year-End Interest Rates with Swaps | 2.86% | 3.64% |
Fixed Rate Senior Notes [Member] | Parent Company [Member] | Long-term Debt [Member] | American Express Company [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.17% | 3.48% |
Fixed Rate Senior Notes [Member] | Subsidiaries [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 11,839 | $ 16,677 |
Year-End Interest Rates with Swaps | 2.56% | 3.06% |
Fixed Rate Senior Notes [Member] | Subsidiaries [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 15,074 | $ 12,474 |
Year-End Interest Rates with Swaps | 2.43% | 0.00% |
Fixed Rate Senior Notes [Member] | Subsidiaries [Member] | Long-term Debt [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.40% | 2.28% |
Fixed Rate Senior Notes [Member] | Subsidiaries [Member] | Long-term Debt [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.42% | 2.28% |
Floating Rate Senior Notes [Member] | Parent Company [Member] | American Express Company [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 4,500 | $ 3,600 |
Year-End Interest Rates with Swaps | 0.00% | |
Floating Rate Senior Notes [Member] | Parent Company [Member] | Long-term Debt [Member] | American Express Company [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.16% | 3.17% |
Year-End Interest Rates with Swaps | 0.00% | |
Floating Rate Senior Notes [Member] | Subsidiaries [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 1,650 | $ 3,800 |
Year-End Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes [Member] | Subsidiaries [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 4,125 | $ 5,125 |
Year-End Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes [Member] | Subsidiaries [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 0 | $ 1,535 |
Year-End Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Senior Notes [Member] | Subsidiaries [Member] | Long-term Debt [Member] | American Express Credit Corporation [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.36% | 3.31% |
Floating Rate Senior Notes [Member] | Subsidiaries [Member] | Long-term Debt [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.74% | 2.80% |
Floating Rate Senior Notes [Member] | Subsidiaries [Member] | Long-term Debt [Member] | American Express Charge Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.00% | 2.89% |
Floating Rate Subordinated Notes [Member] | Subsidiaries [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 79 | $ 167 |
Year-End Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Subordinated Notes [Member] | Subsidiaries [Member] | Long-term Debt [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.45% | 2.96% |
Fixed Rate Subordinated Notes [Member] | Parent Company [Member] | American Express Company [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 598 | $ 598 |
Year-End Interest Rates with Swaps | 3.66% | |
Fixed Rate Subordinated Notes [Member] | Parent Company [Member] | Long-term Debt [Member] | American Express Company [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 3.63% | 3.63% |
Year-End Interest Rates with Swaps | 2.99% | |
Fixed Rate Subordinated Notes [Member] | Subsidiaries [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 420 | $ 240 |
Year-End Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Subordinated Notes [Member] | Subsidiaries [Member] | Long-term Debt [Member] | American Express Lending Trust [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 2.53% | 2.37% |
Fixed Rate Instruments [Member] | Subsidiaries [Member] | Financed Leases [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 25 | $ 19 |
Year-End Interest Rates with Swaps | 0.00% | 0.00% |
Fixed Rate Instruments [Member] | Subsidiaries [Member] | Financed Leases [Member] | Long-term Debt [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 5.65% | 5.54% |
Floating Rate Borrowings [Member] | Subsidiaries [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 311 | $ 262 |
Year-End Interest Rates with Swaps | 0.00% | 0.00% |
Floating Rate Borrowings [Member] | Subsidiaries [Member] | Long-term Debt [Member] | Other Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt | 0.40% | 0.42% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Aggregate annual maturities on long-term debt obligations | ||
2020 | $ 15,615 | |
2021 | 11,710 | |
2022 | 14,188 | |
2023 | 7,035 | |
2024 | 5,015 | |
Thereafter | 4,883 | |
Total | 58,446 | |
Unamortized Underwriting Fees | (112) | $ (117) |
Unamortized Discount and Premium | (716) | |
Impacts due to Fair Value Hedge Accounting | 217 | |
Total long-term debt | 57,835 | 58,423 |
Parent Company [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2020 | 2,000 | |
2021 | 5,000 | |
2022 | 5,675 | |
2023 | 4,350 | |
2024 | 5,000 | |
Thereafter | 2,872 | |
Total | 24,897 | |
Total long-term debt | 24,368 | $ 18,191 |
American Express Credit Corporation [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2020 | 6,600 | |
2021 | 2,864 | |
2022 | 2,050 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 2,000 | |
Total | 13,514 | |
American Express Lending Trust [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2020 | 6,924 | |
2021 | 3,709 | |
2022 | 6,381 | |
2023 | 2,685 | |
2024 | 0 | |
Thereafter | 0 | |
Total | 19,699 | |
Other Subsidiaries [Member] | ||
Aggregate annual maturities on long-term debt obligations | ||
2020 | 91 | |
2021 | 137 | |
2022 | 82 | |
2023 | 0 | |
2024 | 15 | |
Thereafter | 11 | |
Total | $ 336 |
Debt (Details Textuals)
Debt (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Average commercial paper outstanding | $ 299,000,000 | $ 228,000,000 | |
Total bank lines of credit of the company | $ 3,500,000,000 | 3,500,000,000 | |
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line | 1.25 | ||
Fees to maintain credit lines | $ 16,500,000 | 14,200,000 | |
Total interest paid | 3,400,000,000 | 2,700,000,000 | $ 2,000,000,000 |
Short-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Fees to maintain the secured financing facility | $ 7,700,000 | 7,800,000 | |
American Express Charge Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Specified date face amount of eligible notes issued | Jul. 15, 2022 | ||
Face amount of eligible notes from Charge Trust | $ 3,000,000,000 | ||
Face amount of eligible notes draw downs | 0 | $ 1,500,000,000 | |
American Express Lending Trust [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of eligible notes issued | $ 2,000,000,000 | ||
Specified date face amount of eligible notes issued | Sep. 15, 2022 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of other liabilities | ||
Membership Rewards liability | $ 8,892 | $ 8,414 |
Employee-related liablities | 2,429 | 2,164 |
Card Member rebate and reward accruals | 1,790 | 1,596 |
Income tax liability | 1,122 | 1,079 |
Other | 10,715 | 9,321 |
Total | 24,948 | 22,574 |
Repatriation tax liability | $ 1,012 | $ 1,689 |
Other Liabilities (Details 1)
Other Liabilities (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying amount of deferred charge card and other fees | ||
Deferred card and other fees | $ 2,532 | $ 2,208 |
Deferred direct acquisition costs | (270) | (282) |
Reserves for membership cancellations | (200) | (167) |
Total | $ 2,062 | $ 1,759 |
Stock Plans (Details)
Stock Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Summary of Stock Option Activity [Roll Forward] | |
Stock Options, Beginning Balance, Shares | shares | 5,484 |
Stock Options Granted, shares | shares | 408 |
Stock Options Exercised, shares | shares | (1,626) |
Stock Options Forfeited, shares | shares | (94) |
Stock Options Expired, shares | shares | 0 |
Stock Options, Ending Balance, Shares | shares | 4,172 |
Summary of Stock Option Activity, Weighted Average Exercise Price [Roll Forward] | |
Stock Options, Beginning balance, weighted average exercise price (in dollars per share) | $ / shares | $ 64.73 |
Stock Options Granted, weighted average exercise price (in dollars per share) | $ / shares | 101.43 |
Stock Options Exercised, weighted average exercise price (in dollars per share) | $ / shares | 51.92 |
Stock Options Forfeitures, weighted average exercise price (in dollars per share) | $ / shares | 92.19 |
Stock Options Expired, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Stock Options, Ending balance, weighted average exercise price (in dollars per share) | $ / shares | $ 72.70 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity, Weighted Average Grant Price [Roll Forward] | |
Options vested and expected to vest, shares | shares | 4,171 |
Options exercisable, shares | shares | 2,357 |
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 72.70 |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 61.15 |
Service-Based RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity [Roll Forward] | |
RSAs/RSUs Beginning balance, shares | shares | 2,544 |
RSAs/RSUs Granted, shares | shares | 1,041 |
RSAs/RSUs Vested, shares | shares | (1,001) |
RSAs/RSUs Forfeited, shares | shares | (172) |
RSAs/RSUs Ending balance, shares | shares | 2,412 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity, Weighted Average Grant Price [Roll Forward] | |
RSAs/RSUs Beginning Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 80.15 |
RSAs/RSUs Granted, Weighted Average Grant Price (in dollars per share) | $ / shares | 103.93 |
RSAs/RSUs Vested, Weighted Average Grant Price (in dollars per share) | $ / shares | 76.07 |
RSAs/RSUs Forfeited, Weighted Average Grant Price (in dollars per share) | $ / shares | 89.79 |
RSAs/RSUs Ending Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 91.42 |
Service and Performance-Based RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity [Roll Forward] | |
RSAs/RSUs Beginning balance, shares | shares | 4,022 |
RSAs/RSUs Granted, shares | shares | 1,358 |
RSAs/RSUs Vested, shares | shares | (1,819) |
RSAs/RSUs Forfeited, shares | shares | (169) |
RSAs/RSUs Ending balance, shares | shares | 3,392 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity, Weighted Average Grant Price [Roll Forward] | |
RSAs/RSUs Beginning Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 74.22 |
RSAs/RSUs Granted, Weighted Average Grant Price (in dollars per share) | $ / shares | 90.34 |
RSAs/RSUs Vested, Weighted Average Grant Price (in dollars per share) | $ / shares | 58.28 |
RSAs/RSUs Forfeited, Weighted Average Grant Price (in dollars per share) | $ / shares | 93.74 |
RSAs/RSUs Ending Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 88.25 |
Stock Plans (Details 1)
Stock Plans (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
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 3 months 18 days |
Aggregate intrinsic value, Outstanding | $ 216 |
Weighted-average remaining contractual life, Exercisable | 4 years |
Aggregate intrinsic value, Exercisable | $ 149 |
Weighted-average remaining contractual life, Vested and Expected to Vest | 5 years 3 months 18 days |
Aggregate intrinsic value, Vested and Expected to Vest | $ 216 |
Stock Plans (Details 2)
Stock Plans (Details 2) - Stock Option [Member] - $ / shares | Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Weighted Average Assumptions Used | ||||
Dividend yield | 1.50% | 1.40% | 1.80% | |
Expected volatility | 24.00% | 22.00% | 24.00% | |
Risk-free interest rate | 2.60% | 2.70% | 2.30% | |
Expected life of stock option | 7 years 1 month 6 days | 7 years 1 month 6 days | 6 years 10 months 24 days | |
Weighted-average fair value per option (in dollars per share) | $ 23.38 | $ 23.17 | $ 18.18 | |
Senior Executives [Member] | ||||
Weighted Average Assumptions Used | ||||
Dividend yield | 1.58% | |||
Expected volatility | 21.41% | |||
Risk-free interest rate | 2.26% | |||
Expected life of stock option | 7 years | |||
Weighted-average fair value per option (in dollars per share) | $ 19.18 |
Stock Plans (Details 3)
Stock Plans (Details 3) - RSUs [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 20.00% |
Risk-free interest rate | 2.50% |
Remaining performance period (in years) | 2 years 10 months 24 days |
Stock Plans (Details Textuals)
Stock Plans (Details Textuals) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares unissued and available for grant | 9 | 12 | 14 | |
Stock-based compensation expense | $ 280 | $ 288 | $ 283 | |
Stock-based compensation expense, income tax benefit | $ 67 | 69 | 102 | |
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options contractual term | 10 years | |||
Stock-based compensation, unrecognized compensation cost | $ 7 | |||
Weighted-average remaining vesting period | 1 year 2 months 12 days | |||
Intrinsic value for options exercised | $ 104 | 104 | 197 | |
Cash received from exercise of stock options | 84 | 87 | 130 | |
Income tax benefit related to stock option exercises | 18 | $ 18 | $ 59 | |
Stock Option [Member] | Senior Executives [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options contractual term | 7 years | |||
Service condition period | 3 years | |||
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation, unrecognized compensation cost | $ 195 | |||
Weighted-average remaining vesting period | 2 years 1 month 6 days | |||
Vest percentage | 25.00% | |||
RSAs/RSUs Weighted-average grant date fair value of RSAs granted (in dollars per share) | $ 96.24 | $ 98.20 | $ 77.80 | |
Total fair value of shares vested | $ 286 | $ 239 | $ 180 | |
Liability-Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash paid upon vesting of PGs | $ 81 | $ 56 | $ 48 |
Retirement Plans (Details Textu
Retirement Plans (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Total expense for all defined contribution retirement plans | $ 278 | $ 272 | $ 349 |
Other Postretirement Benefit Plans [Member] | |||
Retirement Plans (Textuals) [Abstract] | |||
Total net benefit (expense) | 8 | 0.4 | $ (25) |
Defined benefit plans, unfunded status | $ 640 | $ 563 |
Contingencies and Commitments_2
Contingencies and Commitments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Minimum aggregate rental commitment under all noncancelable operating leases | |
2020 | $ 134 |
2021 | 114 |
2022 | 100 |
2023 | 89 |
2024 | 77 |
Thereafter | 842 |
Total | 1,356 |
Less: Amount representing interest | (573) |
Lease Liabilities | $ 783 |
Contingencies and Commitments_3
Contingencies and Commitments (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Total rent expense | $ 151,000,000 | $ 142,000,000 | $ 151,000,000 |
Weighted average remaining lease term | 22 years | ||
Weighted average lease discount rate | 4.00% | ||
Commitments related to agreements with certain cobrand partners | $ 5,000,000,000 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | 0 | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 190,000,000 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | $ 343 | $ 514 |
Total derivative liabilities, gross | 440 | 214 |
Derivative asset and derivative liability netting, assets | (90) | (90) |
Derivative asset and derivative liability netting, liabilities | (90) | (90) |
Cash collateral netting, assets | (185) | (28) |
Cash collateral netting, liabilities | (9) | (78) |
Total derivatives assets, net | 68 | 396 |
Total derivatives liabilities, net | 341 | 46 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 209 | 256 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 185 | 34 |
Other Assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 24 | 222 |
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 134 | 258 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 186 | 135 |
Other Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 0 | 74 |
Other Liabilities [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 186 | 61 |
Other Liabilities [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | $ 254 | $ 79 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details 1) - Interest Rate Contracts [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fixed-rate long-term debt | $ 206 | ||
Derivatives designated as hedging instruments | (246) | ||
Total | $ (40) | ||
Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fixed-rate long-term debt | $ (458) | $ 59 | |
Derivatives designated as hedging instruments | 462 | (43) | |
Total | $ 4 | $ 16 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Margin on interest rate swap not netted | $ 47,000,000 | $ 84,000,000 | |
Net increases (reductions) in interest expense on long term debt and other | 102,000,000 | 51,000,000 | $ (133,000,000) |
Net losses related to hedges of investments in foreign operations | (140,000,000) | ||
Other Expense [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) in changes of fair value of derivatives not designated as hedges | 64,000,000 | 60,000,000 | (29,000,000) |
Gain on embedded derivatives | 3,000,000 | 0 | |
Loss on embedded derivatives | 11,000,000 | ||
Fair Value Hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fixed-rate debt obligations desginated in fair value relationships | 22,600,000,000 | 24,000,000,000 | |
Cumulative amount of fair value hedging adjustments | 217,000,000 | (241,000,000) | |
Net Investment Hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts of foreign currency derivatives | 9,800,000,000 | 9,600,000,000 | |
Net losses related to hedges of investments in foreign operations | 140,000,000 | 328,000,000 | $ 370,000,000 |
Credit Valuation Adjustment [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fixed-rate debt obligations desginated in fair value relationships | 0 | 0 | |
Reported Value Measurement [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fixed-rate debt obligations desginated in fair value relationships | $ 22,700,000,000 | $ 23,700,000,000 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investment securities: | |||
Equity securities | $ 78 | $ 48 | $ 48 |
Debt securities | 8,328 | 4,599 | |
Derivatives, gross | 343 | 514 | |
Total assets | 8,749 | 5,161 | |
Liabilities | |||
Derivatives, gross | 440 | 214 | |
Total derivatives | 440 | 214 | |
Fair Value, Inputs, Level 1 [Member] | |||
Investment securities: | |||
Equity securities | 77 | 1 | |
Debt securities | 0 | 0 | |
Derivatives, gross | 0 | 0 | |
Total assets | 77 | 1 | |
Liabilities | |||
Derivatives, gross | 0 | 0 | |
Total derivatives | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Equity securities | 1 | 47 | |
Debt securities | 8,328 | 4,599 | |
Derivatives, gross | 343 | 514 | |
Total assets | 8,672 | 5,160 | |
Liabilities | |||
Derivatives, gross | 440 | 214 | |
Total derivatives | 440 | 214 | |
Fair Value, Inputs, Level 3 [Member] | |||
Investment securities: | |||
Equity securities | 0 | 0 | |
Debt securities | 0 | 0 | |
Derivatives, gross | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities | |||
Derivatives, gross | 0 | 0 | |
Total derivatives | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Values (Textuals) [Abstract] | ||
Card Member receivables, gross | $ 57,413 | $ 55,893 |
Card Member loans, net | 84,998 | 79,720 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Values (Textuals) [Abstract] | ||
Card Member receivables, gross | 8,284 | 8,539 |
Reported Value Measurement [Member] | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 24,000 | 27,000 |
Other financial assets | 60,000 | 58,000 |
Financial assets carried at other than fair value | ||
Loans, net | 90,000 | 83,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 92,000 | 81,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 10,000 | 13,000 |
Long-term debt | 58,000 | 58,000 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 24,000 | 27,000 |
Other financial assets | 60,000 | 58,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 92,000 | 81,000 |
Estimate of Fair Value Measurement [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Values (Textuals) [Abstract] | ||
Card Member receivables, gross | 8,200 | 8,500 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 23,000 | 26,000 |
Other financial assets | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 1,000 | 1,000 |
Other financial assets | 60,000 | 58,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 92,000 | 81,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 0 | 0 |
Other financial assets | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | ||
Financial assets carried at other than fair value | ||
Loans, net | 91,000 | 84,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 10,000 | 13,000 |
Long-term debt | 60,000 | 59,000 |
Portion at Other than Fair Value Measurement [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities carried at other than fair value | ||
Long-term debt | 19,800 | 19,400 |
Fair Values (Textuals) [Abstract] | ||
Card Member loans, net | 32,000 | 33,000 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial assets carried at other than fair value | ||
Loans, net | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 0 | 0 |
Long-term debt | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets carried at other than fair value | ||
Loans, net | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 10,000 | 13,000 |
Long-term debt | 60,000 | 59,000 |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial assets carried at other than fair value | ||
Loans, net | 91,000 | 84,000 |
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 ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value for impairment | $ 8,749,000,000 | $ 5,161,000,000 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value for impairment | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Guarantees [Abstract] | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 1,000 |
Amount of related liability | $ 29 | $ 46 |
Common and Preferred Shares (De
Common and Preferred Shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Common shares, authorized (in shares) | 3,600,000,000 | 3,600,000,000 | 3,600,000,000 |
Authorized shares and a reconciliation of common shares issued and outstanding | |||
Shares issued and outstanding at beginning of year (in shares) | 847,000,000 | 859,000,000 | 904,000,000 |
Common shares repurchased (in shares) | (40,000,000) | (15,000,000) | (50,000,000) |
Other, primarily stock option exercises and RSAs granted (in shares) | 3,000,000 | 3,000,000 | 5,000,000 |
Shares issued and outstanding as of December 31 (in shares) | 810,000,000 | 847,000,000 | 859,000,000 |
Stockholders' Equity Note (Textuals) [Abstract] | |||
Shares reserved for issuance under employee stock and employee benefit plans | 19,000,000 |
Common and Preferred Shares (_2
Common and Preferred Shares (Details Textuals) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 23, 2019 | |
Common And Preferred Shares And Warrants (Textuals) [Abstract] | ||||
Common share repurchases authorized (up to) (in shares) | 120,000,000 | |||
Common shares repurchased (in shares) | 40,000,000 | 15,000,000 | 50,000,000 | |
Common shares remaining under share repurchase authorizations (in shares) | 109,000,000 | |||
Shares held as treasury shares (in shares) | 2,600,000 | 2,700,000 | 2,900,000 | |
Cost basis of treasury stock | $ 292,000,000 | $ 207,000,000 | $ 217,000,000 | |
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 | ||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 | ||
Liquidation price per share (in dollars per share) | $ 1,000,000 | |||
Depositary shares redemption amount | $ 1,000 | |||
Warrants, issued and outstanding (in shares) | 0 | 0 | 0 | |
Repurchase Agreements [Member] | ||||
Share Repurchase Commissions [Line Items] | ||||
Cost basis of common stock repurchased | $ 4,600,000,000 | $ 1,600,000,000 | $ 4,300,000,000 | |
Commissions paid included in cost basis of common stock repurchased | $ 6,200,000 | $ 2,200,000 | $ 2,900,000 |
Common and Preferred Shares (_3
Common and Preferred Shares (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Series C [Member] | |
Preferred Shares [Line Items] | |
Issuance date | Mar. 2, 2015 |
Securities issued (in shares) | 850 |
Depositary shares issued (in shares) | 850,000 |
Aggregate liquidation preference | $ | $ 850 |
Fixed dividend rate per annum | 4.90% |
Semi-annual fixed dividend, payment dates | Sep. 15, 2015 |
Floating dividend rate per annum | 3.285% |
Quarterly floating dividend payment dates | Beginning June 15, 2020 |
Fixed to floating rate, conversion date | Mar. 15, 2020 |
Series B [Member] | |
Preferred Shares [Line Items] | |
Issuance date | Nov. 10, 2014 |
Securities issued (in shares) | 750 |
Depositary shares issued (in shares) | 750,000 |
Aggregate liquidation preference | $ | $ 750 |
Fixed dividend rate per annum | 5.20% |
Semi-annual fixed dividend, payment dates | May 15, 2015 |
Floating dividend rate per annum | 3.428% |
Quarterly floating dividend payment dates | Beginning February 15, 2020 |
Fixed to floating rate, conversion date | Nov. 15, 2019 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning Balance | $ 22,290 | $ 18,261 | $ 20,523 |
Net unrealized gains (losses) | 41 | (10) | (7) |
Decrease due to amounts reclassified into earnings | (7) | ||
Net translation of investments in foreign operations | 84 | (500) | 678 |
Net gains (losses) related to hedges of investment in foreign operations | 328 | (370) | |
Net gains (losses) related to hedges of investments in foreign operations | (140) | ||
Pension and other postretirement benefits | (125) | 11 | 62 |
Other | 2 | ||
Net change in accumulated other comprehensive (loss) income | (140) | (169) | 356 |
Ending Balance | 23,071 | 22,290 | 18,261 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Investment securities | 12 | (2) | (4) |
Foreign currency translation adjustments | 24 | (44) | (172) |
Net investment hedges | (43) | 107 | (215) |
Pension and other postretirement benefit losses | (38) | 9 | 7 |
Total tax impact | (45) | 70 | (384) |
Accumulated Other Comprehensive Loss [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning Balance | (2,597) | (2,428) | (2,784) |
Ending Balance | (2,737) | (2,597) | (2,428) |
Net Unrealized Investment Gains (Losses) on Investment Securities [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning Balance | (8) | 0 | 7 |
Net unrealized gains (losses) | 41 | (10) | (7) |
Decrease due to amounts reclassified into earnings | 0 | ||
Net translation of investments in foreign operations | 0 | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 | |
Net gains (losses) related to hedges of investments in foreign operations | 0 | ||
Pension and other postretirement benefits | 0 | 0 | 0 |
Other | (2) | ||
Net change in accumulated other comprehensive (loss) income | 41 | (8) | (7) |
Ending Balance | 33 | (8) | 0 |
Foreign Currency Translation Adjustments [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning Balance | (2,133) | (1,961) | (2,262) |
Net unrealized gains (losses) | 0 | 0 | 0 |
Decrease due to amounts reclassified into earnings | (7) | ||
Net translation of investments in foreign operations | 84 | (500) | 678 |
Net gains (losses) related to hedges of investment in foreign operations | 328 | (370) | |
Net gains (losses) related to hedges of investments in foreign operations | (140) | ||
Pension and other postretirement benefits | 0 | 0 | 0 |
Other | 0 | ||
Net change in accumulated other comprehensive (loss) income | (56) | (172) | 301 |
Ending Balance | (2,189) | (2,133) | (1,961) |
Net Unrealized Pension and Other Postretirement Benefit (Losses) Gains [Member] | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning Balance | (456) | (467) | (529) |
Net unrealized gains (losses) | 0 | 0 | 0 |
Decrease due to amounts reclassified into earnings | 0 | ||
Net translation of investments in foreign operations | 0 | 0 | 0 |
Net gains (losses) related to hedges of investment in foreign operations | 0 | 0 | |
Net gains (losses) related to hedges of investments in foreign operations | 0 | ||
Pension and other postretirement benefits | (125) | 11 | 62 |
Other | 0 | ||
Net change in accumulated other comprehensive (loss) income | (125) | 11 | 62 |
Ending Balance | $ (581) | $ (456) | $ (467) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other expense | $ (5,868) | $ (5,671) | $ (5,634) | ||||||||
Income tax provision | (1,670) | (1,201) | (4,677) | ||||||||
Net income | $ 1,693 | $ 1,755 | $ 1,761 | $ 1,550 | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | 6,759 | 6,921 | 2,748 |
Foreign Currency Translation Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other expense | 0 | 1 | (7) | ||||||||
Income tax provision | 0 | (1) | 14 | ||||||||
Net income | $ 0 | $ 0 | $ 7 |
Changes in Accumulated Other _5
Changes in Accumulated Other Comprehensive Income (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensice Income (Loss) (Textuals) [Abstract] | |||
Tax benefits recognized | $ 14 | $ 74 | $ 289 |
Other Fees and Commissions an_3
Other Fees and Commissions and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non Interest Revenues [Line Items] | |||
Delinquency fees | $ 1,028 | $ 959 | $ 888 |
Foreign currency conversion fee revenue | 982 | 921 | 851 |
Loyalty coalition-related fees | 456 | 461 | 452 |
Travel commissions and fees | 424 | 395 | 364 |
Service fees and other | 407 | 417 | 435 |
Other Fees and Commissions [Member] | |||
Non Interest Revenues [Line Items] | |||
Total Other fees and commissions | $ 3,297 | $ 3,153 | $ 2,990 |
Other Fees and Commissions an_4
Other Fees and Commissions and Other Expenses (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Fees and Commissions and Other Expenses [Abstract] | |||
Professional services | $ 2,091 | $ 2,125 | $ 2,040 |
Occupancy and equipment | 2,168 | 2,033 | 2,018 |
Other | 1,609 | 1,513 | 1,576 |
Total Other, net | $ 5,868 | $ 5,671 | $ 5,634 |
Restructuring Charges (Details
Restructuring Charges (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |||
Restructuring reserves | $ 135 | $ 69 | $ 199 |
Restructuring charges, net of revisions | 125 | $ (23) | $ 42 |
Restructuring programs in progress | $ 424 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense: | |||
U.S. federal | $ 1,108 | $ 70 | $ 3,408 |
U.S. state and local | 276 | 150 | 259 |
Non-U.S. | 437 | 681 | 387 |
Total current income tax expense | 1,821 | 901 | 4,054 |
Deferred income tax expense (benefit): | |||
U.S. federal | (58) | 276 | 544 |
U.S. state and local | (31) | 78 | (12) |
Non-U.S. | (62) | (54) | 91 |
Total deferred income tax expense | (151) | 300 | 623 |
Income tax provision (benefit) | $ 1,670 | $ 1,201 | $ 4,677 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective tax rate reconciliation | |||
U.S. statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
(Decrease) increase in taxes resulting from: | |||
Tax-exempt income | (1.90%) | (1.70%) | (1.70%) |
State and local income taxes, net of federal benefit | 2.80% | 2.80% | 2.30% |
Non-U.S. subsidiaries' earnings | (0.70%) | (0.50%) | (5.70%) |
Tax settlements | (0.30%) | (1.90%) | (0.70%) |
U.S. Tax Act | 0.00% | (1.10%) | 34.80% |
U.S. Tax Act - Related adjustments | 0.00% | (3.20%) | 0.00% |
Other | (1.10%) | (0.60%) | (1.00%) |
Actual tax rates | 19.80% | 14.80% | 63.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Reserves not yet deducted for tax purposes | $ 2,633 | $ 2,612 |
Employee compensation and benefits | 365 | 360 |
Other | 536 | 431 |
Gross deferred tax assets | 3,534 | 3,403 |
Valuation allowance | (66) | (61) |
Deferred tax assets after valuation allowance | 3,468 | 3,342 |
Deferred tax liabilities: | ||
Intangibles and fixed assets | 1,279 | 1,083 |
Deferred revenue | 315 | 435 |
Deferred interest | 162 | 171 |
Investment in joint ventures | 122 | 137 |
Other | 129 | 210 |
Gross deferred tax liabilities | 2,007 | 2,036 |
Net deferred tax assets | $ 1,461 | $ 1,306 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 701 | $ 821 | $ 974 |
Increases: | |||
Current year tax positions | 66 | 152 | 200 |
Tax positions related to prior years | 78 | 47 | 39 |
Effects of foreign currency translations | 10 | 0 | 0 |
Decreases: | |||
Tax positions related to prior years | (14) | (74) | (289) |
Settlements with tax authorities | (40) | (192) | (77) |
Lapse of statute of limitations | (75) | (44) | (26) |
Effects of foreign currency translations | 0 | (9) | 0 |
Balance, December 31 | $ 726 | $ 701 | $ 821 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||||
U.S. statutory federal income tax rate | 21.00% | 21.00% | 35.00% | ||
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% | ||||
U.S. Tax Act discrete net charge | $ 2,600 | $ 2,600 | |||
Aggregate state income and foreign withholding taxes on foreign earnings | $ 100 | ||||
Income taxes paid | 1,700 | $ 2,000 | 1,400 | ||
Tax positions related to prior years | (14) | (74) | (289) | ||
Accumulated earnings intended to be permanently reinvested outside the U.S. | 700 | ||||
Unrecognized tax benefits | 821 | 726 | 701 | 821 | $ 974 |
Unrecognized tax benefits that affect effective tax rate | $ 723 | 623 | 599 | 723 | |
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | 113 | ||||
Unrecognized tax benefits that, if recognized, could impact effective tax rate | 96 | ||||
Unrecognized tax benefits income tax penalties and interest expense | 5 | (18) | (90) | ||
Income tax examination penalties and interest benefit | $ 56 | ||||
Unrecognized tax benefits income tax penalties and interest accrued | $ 70 | $ 65 | |||
Earliest Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax audit settlement years | 2008 | ||||
Latest Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax audit settlement years | 2014 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Basic and diluted: | ||||||||||||
Net income | $ 1,693 | $ 1,755 | $ 1,761 | $ 1,550 | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | $ 6,759 | $ 6,921 | $ 2,748 | |
Dividends on preferred Stock | (20) | (21) | (19) | (21) | (19) | (20) | (20) | (21) | (81) | (80) | (81) | |
Net income available to common shareholders | 6,678 | 6,841 | 2,667 | |||||||||
Earnings allocated to participating share awards | $ (12) | $ (11) | $ (13) | $ (11) | $ (16) | $ (13) | $ (12) | $ (13) | (47) | (54) | (21) | |
Net income attributable to common shareholders | $ 6,631 | $ 6,787 | $ 2,646 | |||||||||
Denominator: | ||||||||||||
Basic: Weighted-average common stock (in shares) | 828 | 856 | 883 | |||||||||
Add: Weighted-average stock options (in shares) | 2 | 3 | 3 | |||||||||
Diluted (in shares) | 830 | 859 | 886 | |||||||||
Basic EPS: | ||||||||||||
Basic (in dollars per share) | [1] | $ 8 | $ 7.93 | $ 3 | ||||||||
Diluted EPS: | ||||||||||||
Diluted (in dollars per share) | [1] | $ 7.99 | $ 7.91 | $ 2.99 | ||||||||
Stock Option [Member] | ||||||||||||
Diluted EPS: | ||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.2 | 0.7 | 0.6 | |||||||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $47 million, $54 million and $21 million for the years ended December 31, 2019, 2018 and 2017, respectively, and (ii) dividends on preferred shares of $81 million, $80 million and $81 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Regulatory Matters and Capita_3
Regulatory Matters and Capital Adequacy (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Matters And Capital Adequacy [Abstract] | ||
Common Equity Tier 1 required, Well-capitalized ratios | 6.50% | |
Common Equity Tier 1 Required, Basel III Standards 2019 | 7.00% | |
Common Equity Tier 1 required, Minimum capital ratio | 4.50% | |
Risk-based capital required, Well-capitalized ratios | 8.00% | |
Risk Based Capital Required, Basel III Standards 2019 | 8.50% | |
Risk-based capital required, Minimum capital ratios | 6.00% | |
Well-capitalized ratios | 10.00% | |
Basel III Standards 2019 | 10.50% | |
Minimum capital ratios | 8.00% | |
Leverage capital required, Well-capitalized ratios | 5.00% | |
Leverage Capital Required, Basel III Standards 2019 | 4.00% | |
Leverage capital required, Minimum capital ratios | 4.00% | |
SLR, Basel III Standards 2019 | 3.00% | |
SLR, Minimum Capital Ratio | 3.00% | |
Parent Company [Member] | American Express Company [Member] | ||
Regulatory capital ratios | ||
CET1 capital | $ 18,056 | $ 17,498 |
Tier 1 capital | 19,628 | 19,070 |
Total capital | $ 22,213 | $ 21,653 |
CET1 capital ratio | 10.70% | 11.00% |
Tier 1 capital ratio | 11.60% | 12.00% |
Total capital ratio | 13.20% | 13.60% |
Tier 1 leverage ratio | 10.20% | 10.40% |
SLR ratio | 8.80% | 8.90% |
Subsidiaries [Member] | American Express National Bank [Member] | ||
Regulatory capital ratios | ||
CET1 capital | $ 13,600 | $ 11,564 |
Tier 1 capital | 13,600 | 11,564 |
Total capital | $ 15,688 | $ 13,574 |
CET1 capital ratio | 13.40% | 12.10% |
Tier 1 capital ratio | 13.40% | 12.10% |
Total capital ratio | 15.40% | 14.20% |
Tier 1 leverage ratio | 11.10% | 9.90% |
SLR ratio | 9.30% | 8.20% |
Regulatory Matters and Capita_4
Regulatory Matters and Capital Adequacy (Details Textuals) $ in Billions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Restricted net assets of subsidiaries | $ 10 |
Capital conservation buffer | 2.50% |
Retained earnings available for dividend payment | $ 4.9 |
American Express National Bank [Member] | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Dividends paid from retained earnings to its parent company | $ 3.9 |
Significant Credit Concentrat_3
Significant Credit Concentrations (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 185 | $ 177 |
Individuals [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 131 | 123 |
Financial Services [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 26 | 30 |
Institutions [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 20 | 20 |
US Government and Agencies [Member] | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 8 | $ 4 |
Significant Credit Concentrat_4
Significant Credit Concentrations (Details 1) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Card Member loans and receivables exposure | ||
On-balance sheet | $ 185 | $ 177 |
Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 145 | 138 |
Unused lines-of-credit | 306 | 302 |
U.S. [Member] | Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 115 | 111 |
Unused lines-of-credit | 245 | 249 |
Non-U.S. [Member] | Card Member Loans and Receivables [Member] | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 30 | 27 |
Unused lines-of-credit | $ 61 | $ 53 |
Reportable Operating Segments_3
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | $ 34,936 | $ 32,675 | $ 30,427 | ||||||||
Revenue from contracts with customers | 28,159 | 26,607 | 24,780 | ||||||||
Interest income | 12,084 | 10,606 | 8,563 | ||||||||
Interest expense | 3,464 | 2,943 | 2,112 | ||||||||
Total revenues, net of interest expense | $ 11,365 | $ 10,989 | $ 10,838 | $ 10,364 | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | 43,556 | 40,338 | 36,878 |
Total provisions | 3,573 | 3,352 | 2,760 | ||||||||
Pretax income | 1,986 | 2,266 | 2,219 | 1,958 | 1,831 | 2,118 | 2,091 | 2,082 | 8,429 | 8,122 | 7,425 |
Income tax provision (benefit) | 1,670 | 1,201 | 4,677 | ||||||||
Net income | 1,693 | $ 1,755 | $ 1,761 | $ 1,550 | 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | 6,759 | 6,921 | 2,748 |
Total assets | 198,321 | 188,602 | 198,321 | 188,602 | 181,000 | ||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 89 | 49 | 82 | ||||||||
Revenue from contracts with customers | 12 | 16 | 15 | ||||||||
Interest income | 743 | 632 | 371 | ||||||||
Interest expense | 1,028 | 868 | 658 | ||||||||
Total revenues, net of interest expense | (196) | (187) | (205) | ||||||||
Total provisions | 0 | 1 | 5 | ||||||||
Pretax income | (1,809) | (1,331) | (1,708) | ||||||||
Income tax provision (benefit) | (418) | (695) | 1,853 | ||||||||
Net income | (1,391) | (636) | (3,561) | ||||||||
Total assets | 21,000 | 20,000 | 21,000 | 20,000 | 17,000 | ||||||
Global Consumer Services Group [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 15,972 | 14,675 | 13,378 | ||||||||
Revenue from contracts with customers | 11,041 | 10,294 | 9,448 | ||||||||
Interest income | 9,413 | 8,323 | 6,789 | ||||||||
Interest expense | 1,806 | 1,542 | 1,047 | ||||||||
Total revenues, net of interest expense | 23,579 | 21,456 | 19,120 | ||||||||
Total provisions | 2,636 | 2,430 | 1,996 | ||||||||
Pretax income | 4,024 | 3,714 | 3,645 | ||||||||
Income tax provision (benefit) | 762 | 637 | 1,053 | ||||||||
Net income | 3,262 | 3,077 | 2,592 | ||||||||
Total assets | 106,000 | 102,000 | 106,000 | 102,000 | 95,000 | ||||||
Global Commercial Services [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 12,623 | 11,882 | 10,942 | ||||||||
Revenue from contracts with customers | 10,891 | 10,309 | 9,471 | ||||||||
Interest income | 1,900 | 1,621 | 1,361 | ||||||||
Interest expense | 995 | 827 | 595 | ||||||||
Total revenues, net of interest expense | 13,528 | 12,676 | 11,708 | ||||||||
Total provisions | 917 | 899 | 743 | ||||||||
Pretax income | 3,066 | 2,895 | 2,843 | ||||||||
Income tax provision (benefit) | 590 | 555 | 914 | ||||||||
Net income | 2,476 | 2,340 | 1,929 | ||||||||
Total assets | 53,000 | 51,000 | 53,000 | 51,000 | 49,000 | ||||||
Global Merchant and Network Services [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-interest revenues | 6,252 | 6,069 | 6,025 | ||||||||
Revenue from contracts with customers | 6,215 | 5,988 | 5,846 | ||||||||
Interest income | 28 | 30 | 42 | ||||||||
Interest expense | (365) | (294) | (188) | ||||||||
Total revenues, net of interest expense | 6,645 | 6,393 | 6,255 | ||||||||
Total provisions | 20 | 22 | 16 | ||||||||
Pretax income | 3,148 | 2,844 | 2,645 | ||||||||
Income tax provision (benefit) | 736 | 704 | 857 | ||||||||
Net income | 2,412 | 2,140 | 1,788 | ||||||||
Total assets | $ 18,000 | $ 16,000 | $ 18,000 | $ 16,000 | $ 20,000 |
Reportable Operating Segements
Reportable Operating Segements and Geographic Operations (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | ||||||||||||
Total revenues net of interest expense | $ 11,365 | $ 10,989 | $ 10,838 | $ 10,364 | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | $ 43,556 | $ 40,338 | $ 36,878 | |
Pretax income | $ 1,986 | $ 2,266 | $ 2,219 | $ 1,958 | $ 1,831 | $ 2,118 | $ 2,091 | $ 2,082 | 8,429 | 8,122 | 7,425 | |
U.S. Tax Act discrete net charge | $ 2,600 | 2,600 | ||||||||||
United States [Member] | ||||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | ||||||||||||
Total revenues net of interest expense | 32,557 | 29,864 | 27,187 | |||||||||
Pretax income | 7,262 | 6,696 | 6,412 | |||||||||
EMEA [Member] | ||||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | ||||||||||||
Total revenues net of interest expense | 4,465 | 4,419 | 3,927 | |||||||||
Pretax income | 1,243 | 1,212 | 1,150 | |||||||||
JAPA Geographic Region [Member] | ||||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | ||||||||||||
Total revenues net of interest expense | 3,915 | 3,656 | 3,464 | |||||||||
Pretax income | 833 | 764 | 763 | |||||||||
LACC Geographic Region [Member] | ||||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | ||||||||||||
Total revenues net of interest expense | 2,816 | 2,584 | 2,505 | |||||||||
Pretax income | 903 | 782 | 806 | |||||||||
Other Unallocated [Member] | ||||||||||||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | ||||||||||||
Total revenues net of interest expense | (197) | (185) | (205) | |||||||||
Pretax income | $ (1,812) | $ (1,332) | $ (1,706) |
Parent Company (Details)
Parent Company (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-interest revenues | |||||||||||
Other | $ 1,430 | $ 1,360 | $ 1,457 | ||||||||
Total non-interest revenues | 34,936 | 32,675 | 30,427 | ||||||||
Interest income | 12,084 | 10,606 | 8,563 | ||||||||
Interest expense | 3,464 | 2,943 | 2,112 | ||||||||
Total revenues net of interest expense | $ 11,365 | $ 10,989 | $ 10,838 | $ 10,364 | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | 43,556 | 40,338 | 36,878 |
Expenses | |||||||||||
Salaries and employee benefits | 5,911 | 5,250 | 5,258 | ||||||||
Other | 5,868 | 5,671 | 5,634 | ||||||||
Total Expenses | 31,554 | 28,864 | 26,693 | ||||||||
Pretax income | 1,986 | 2,266 | 2,219 | 1,958 | 1,831 | 2,118 | 2,091 | 2,082 | 8,429 | 8,122 | 7,425 |
Income tax provision (benefit) | 1,670 | 1,201 | 4,677 | ||||||||
Net income | $ 1,693 | $ 1,755 | $ 1,761 | $ 1,550 | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | 6,759 | 6,921 | 2,748 |
Parent Company [Member] | |||||||||||
Non-interest revenues | |||||||||||
Other | 598 | 426 | 358 | ||||||||
Total non-interest revenues | 598 | 426 | 358 | ||||||||
Interest income | 692 | 422 | 258 | ||||||||
Interest expense | 902 | 615 | 493 | ||||||||
Total revenues net of interest expense | 388 | 233 | 123 | ||||||||
Expenses | |||||||||||
Salaries and employee benefits | 366 | 336 | 362 | ||||||||
Other | 816 | 607 | 553 | ||||||||
Total Expenses | 1,182 | 943 | 915 | ||||||||
Pretax income | (794) | (710) | (792) | ||||||||
Income tax provision (benefit) | (282) | (179) | (354) | ||||||||
Net loss before equity in net income of subsidiaries and affiliates | (512) | (531) | (438) | ||||||||
Equity in net income of subsidiaries and affiliates | 7,271 | 7,452 | 3,186 | ||||||||
Net income | $ 6,759 | $ 6,921 | $ 2,748 |
Parent Company (Details 1)
Parent Company (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 23,932 | $ 27,445 | $ 32,927 | |
Accounts receivable, less reserves | 56,794 | 55,320 | ||
Premises and equipment, less accumulated depreciation | 4,834 | 4,416 | ||
Other assets | 14,731 | 13,378 | ||
Total assets | 198,321 | 188,602 | 181,000 | |
Liabilities and Shareholders' Equity | ||||
Long-term debt | 57,835 | 58,423 | ||
Total liabilities | 175,250 | 166,312 | ||
Shareholders' Equity | ||||
Preferred shares | 0 | 0 | ||
Common shares | 163 | 170 | ||
Additional paid-in capital | 11,774 | 12,218 | ||
Retained earnings | 13,871 | 12,499 | ||
Accumulated other comprehensive loss | (2,737) | (2,597) | ||
Total shareholders' equity | 23,071 | 22,290 | $ 18,261 | $ 20,523 |
Total liabilities and shareholders' equity | 198,321 | 188,602 | ||
Parent Company Details (Textuals) [Abstract] | ||||
Premises and equipment, accumulated depreciation | 6,562 | 6,015 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 4,430 | 3,287 | ||
Equity in net assets of subsidiaries and affiliates | 23,165 | 22,298 | ||
Loans to subsidiaries and affiliates | 22,350 | 17,945 | ||
Due from subsidiaries and affiliates | 1,168 | 1,783 | ||
Other assets | 223 | 297 | ||
Total assets | 51,336 | 45,610 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable and other liabilities | 2,197 | 1,961 | ||
Due to subsidiaries and affiliates | 609 | 577 | ||
Short-term debt of subsidiaries and affiliates | 1,091 | 2,591 | ||
Long-term debt | 24,368 | 18,191 | ||
Total liabilities | 28,265 | 23,320 | ||
Shareholders' Equity | ||||
Total shareholders' equity | 23,071 | 22,290 | ||
Total liabilities and shareholders' equity | $ 51,336 | $ 45,610 |
Parent Company (Details 2)
Parent Company (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 1,693 | $ 1,755 | $ 1,761 | $ 1,550 | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | $ 6,759 | $ 6,921 | $ 2,748 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Net cash provided by operating activities | 13,632 | 8,930 | 13,540 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of investments | (11,166) | (5,434) | (2,612) | ||||||||
Maturities and redemptions of investment securities | 7,329 | 3,499 | 2,494 | ||||||||
Other investing activities | 152 | 0 | 0 | ||||||||
Net cash used in investing activities | (16,707) | (19,615) | (18,242) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from long-term borrowings | 12,706 | 21,524 | 32,764 | ||||||||
Payments of long-term debt | (13,850) | (18,895) | (24,082) | ||||||||
Issuance of American Express common shares and other | 86 | 87 | 129 | ||||||||
Dividends paid | (1,422) | (1,324) | (1,251) | ||||||||
Net cash (used in) provided by financing activities | (519) | 5,101 | 12,245 | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (3,362) | (5,455) | 7,769 | ||||||||
Cash. cash equivalents and restricted cash at beginning of year | 27,808 | 33,263 | 27,808 | 33,263 | 25,494 | ||||||
Cash, cash equivalents and restricted cash at end of year | 24,446 | 27,808 | 24,446 | 27,808 | 33,263 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 6,759 | 6,921 | 2,748 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in net income of subsidiaries and affiliates | (7,271) | (7,452) | (3,186) | ||||||||
Dividends received from subsidiaries and affiliates | 6,370 | 3,222 | 5,755 | ||||||||
Other operating activities, primarily with subsidiaries and affiliates | 1,315 | (257) | 659 | ||||||||
Net cash provided by operating activities | 7,173 | 2,434 | 5,976 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Maturities and redemptions of investment securities | 1 | 0 | 0 | ||||||||
Loans to subsidiaries and affiliates | (4,405) | (6,281) | (4,044) | ||||||||
Investments in subsidiaries and affiliates | (15) | (30) | 0 | ||||||||
Other investing activities | 82 | 0 | 0 | ||||||||
Net cash used in investing activities | (4,337) | (6,311) | (4,044) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from long-term borrowings | 6,469 | 9,350 | 5,900 | ||||||||
Payments of long-term debt | (641) | (3,850) | (1,500) | ||||||||
Short-term debt of subsidiaries and affiliates | (1,500) | (140) | (1,313) | ||||||||
Issuance of American Express common shares and other | 86 | 87 | 129 | ||||||||
Repurchase of American Express common shares | (4,685) | (1,685) | (4,400) | ||||||||
Dividends paid | (1,422) | (1,324) | (1,251) | ||||||||
Net cash (used in) provided by financing activities | (1,693) | 2,438 | (2,435) | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | 1,143 | (1,439) | (503) | ||||||||
Cash. cash equivalents and restricted cash at beginning of year | $ 3,287 | $ 4,726 | 3,287 | 4,726 | 5,229 | ||||||
Cash, cash equivalents and restricted cash at end of year | $ 4,430 | $ 3,287 | $ 4,430 | $ 3,287 | $ 4,726 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of quarterly financial data | ||||||||||||
Total revenues net of interest expense | $ 11,365 | $ 10,989 | $ 10,838 | $ 10,364 | $ 10,474 | $ 10,144 | $ 10,002 | $ 9,718 | $ 43,556 | $ 40,338 | $ 36,878 | |
Pretax income | 1,986 | 2,266 | 2,219 | 1,958 | 1,831 | 2,118 | 2,091 | 2,082 | 8,429 | 8,122 | 7,425 | |
Net Income (Loss) Attributable to Parent | $ 1,693 | $ 1,755 | $ 1,761 | $ 1,550 | $ 2,010 | $ 1,654 | $ 1,623 | $ 1,634 | $ 6,759 | $ 6,921 | $ 2,748 | |
Earnings per Common Share | ||||||||||||
Basic (in dollars per share) | [1] | $ 8 | $ 7.93 | $ 3 | ||||||||
Net income attributable to common shareholders | $ 2.04 | $ 2.09 | $ 2.07 | $ 1.81 | $ 2.33 | $ 1.89 | $ 1.85 | $ 1.86 | ||||
Earnings per Common Share | ||||||||||||
Diluted (in dollars per share) | [1] | 7.99 | 7.91 | 2.99 | ||||||||
Net income attributable to common shareholders | 2.03 | 2.08 | 2.07 | 1.80 | 2.32 | 1.88 | 1.84 | 1.86 | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.43 | $ 0.43 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.35 | $ 0.35 | $ 1.64 | $ 1.48 | $ 1.34 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $47 million, $54 million and $21 million for the years ended December 31, 2019, 2018 and 2017, respectively, and (ii) dividends on preferred shares of $81 million, $80 million and $81 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Earnings allocated to participating share awards | $ 12 | $ 11 | $ 13 | $ 11 | $ 16 | $ 13 | $ 12 | $ 13 | $ 47 | $ 54 | $ 21 |
Dividends on preferred Stock | $ 20 | $ 21 | $ 19 | $ 21 | $ 19 | $ 20 | $ 20 | $ 21 | $ 81 | $ 80 | $ 81 |