Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 18, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-7657 | |
Entity Registrant Name | AMERICAN EXPRESS COMPANY | |
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 | |
Title of 12(b) Security | Common shares (par value $0.20 per share) | |
Trading Symbol | AXP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 774,555,761 | |
Entity Central Index Key | 0000004962 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||||
Non-interest revenues | ||||||||
Non-interest revenues | $ 8,934 | $ 6,877 | $ 24,593 | $ 20,648 | ||||
Interest income | ||||||||
Interest on loans | 2,256 | 2,266 | 6,494 | 7,543 | ||||
Interest and dividends on investment securities | 18 | 33 | 66 | 98 | ||||
Deposits with banks and other | 27 | 25 | 73 | 155 | ||||
Total interest income | 2,301 | 2,324 | 6,633 | 7,796 | ||||
Interest expense | ||||||||
Deposits | 109 | 202 | 356 | 788 | ||||
Long-term debt and other | 198 | 248 | 635 | 920 | ||||
Total interest expense | 307 | 450 | 991 | 1,708 | ||||
Net interest income | 1,994 | 1,874 | 5,642 | 6,088 | ||||
Total revenues net of interest expense | 10,928 | 8,751 | 30,235 | 26,736 | ||||
Provisions for credit losses | ||||||||
Provisions | (191) | 665 | (1,472) | 4,841 | ||||
Total revenues net of interest expense after provisions for credit losses | 11,119 | 8,086 | 31,707 | 21,895 | ||||
Expenses | ||||||||
Marketing and business development | 2,355 | 1,822 | 6,340 | 4,889 | ||||
Card Member rewards | 3,020 | 2,004 | 7,975 | 5,745 | ||||
Card Member services | 579 | 259 | 1,328 | 923 | ||||
Salaries and employee benefits | 1,497 | 1,408 | 4,586 | 4,152 | ||||
Other, net | 1,218 | 1,229 | 3,095 | 3,748 | ||||
Total expenses | 8,669 | 6,722 | 23,324 | 19,457 | ||||
Pretax income | 2,450 | 1,364 | 8,383 | 2,438 | ||||
Income tax provision | 624 | 291 | 2,042 | 741 | ||||
Net income | $ 1,826 | $ 1,073 | $ 6,341 | $ 1,697 | ||||
Earnings per Common Share | ||||||||
Basic (in dollars per share) | $ 2.27 | [1] | $ 1.31 | [1] | $ 7.84 | [2] | $ 2.01 | [2] |
Diluted (in dollars per share) | $ 2.27 | [1] | $ 1.30 | [1] | $ 7.82 | [2] | $ 2.01 | [2] |
Average common shares outstanding for earnings per common share: | ||||||||
Basic (in shares) | 786 | 804 | 796 | 805 | ||||
Diluted (in shares) | 787 | 805 | 797 | 806 | ||||
Card Member Receivables | ||||||||
Provisions for credit losses | ||||||||
Provisions | $ (12) | $ 117 | $ (147) | $ 1,069 | ||||
Card Member Loans | ||||||||
Provisions for credit losses | ||||||||
Provisions | (177) | 571 | (1,146) | 3,416 | ||||
Other Loans | ||||||||
Provisions for credit losses | ||||||||
Provisions | (2) | (23) | (179) | 356 | ||||
Discount revenue | ||||||||
Non-interest revenues | ||||||||
Non-interest revenues | 6,676 | 4,999 | 18,245 | 14,852 | ||||
Net card fees | ||||||||
Non-interest revenues | ||||||||
Non-interest revenues | 1,312 | 1,191 | 3,851 | 3,442 | ||||
Other fees and commissions | ||||||||
Non-interest revenues | ||||||||
Non-interest revenues | 632 | 478 | 1,712 | 1,647 | ||||
Other | ||||||||
Non-interest revenues | ||||||||
Non-interest revenues | $ 314 | $ 209 | $ 785 | $ 707 | ||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $14 million and $7 million for the three months ended September 30, 2021 and 2020, respectively, (ii) dividends on preferred shares of $20 million and $16 million for the three months ended September 30, 2021 and 2020, respectively, and (iii) an equity-related adjustment of $9 million related to the redemption of preferred shares for the three months ended September 30, 2021. | |||||||
[2] | Represents net income less (i) earnings allocated to participating share awards of $45 million and $10 million for the nine months ended September 30, 2021 and 2020, respectively, (ii) dividends on preferred shares of $49 million and $65 million for the nine months ended September 30, 2021 and 2020, respectively, and (iii) an equity-related adjustment of $9 million related to the redemption of preferred shares for the nine months ended September 30, 2021. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | Sep. 15, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Income Statement [Abstract] | |||||
Earnings allocated to participating share awards | $ 14 | $ 7 | $ 45 | $ 10 | |
Dividends on preferred shares | 20 | 16 | 49 | 65 | |
Equity adjustments in connection with redemption of Preferred Shares | $ 9 | $ 9 | $ 0 | $ 9 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,826 | $ 1,073 | $ 6,341 | $ 1,697 |
Other comprehensive income (loss): | ||||
Net unrealized debt securities (losses) gains, net of tax | (8) | (9) | (31) | 43 |
Foreign currency translation adjustments, net of tax | (83) | 40 | (81) | (159) |
Net unrealized pension and other postretirement benefits, net of tax | 9 | 8 | 44 | (19) |
Other comprehensive income (loss) | (82) | 39 | (68) | (135) |
Comprehensive income | $ 1,744 | $ 1,112 | $ 6,273 | $ 1,562 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | ||
Cash and due from banks | $ 2,944 | $ 2,984 |
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2021, $369; 2020, $92) | 24,864 | 29,824 |
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2021, $25; 2020, $47) | 108 | 157 |
Total cash and cash equivalents | 27,916 | 32,965 |
Investment securities | 9,589 | 21,631 |
Premises and equipment, less accumulated depreciation and amortization: 2021, $8,371; 2020, $7,540 | 4,960 | 5,015 |
Other assets, less reserves for credit losses: 2021, $33; 2020, $85 | 17,182 | 17,679 |
Total assets | 184,261 | 191,367 |
Liabilities | ||
Customer deposits | 84,326 | 86,875 |
Accounts payable | 9,641 | 9,444 |
Short-term borrowings | 2,253 | 1,878 |
Long-term debt (includes debt issued by consolidated variable interest entities: 2021, $9,059; 2020, $12,760) | 34,483 | 42,952 |
Other liabilities | 29,132 | 27,234 |
Total liabilities | 159,835 | 168,383 |
Contingencies (Note 7) | ||
Shareholders’ Equity | ||
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 2,350 shares as of September 30, 2021 and 1,600 shares as of December 31, 2020 | 0 | 0 |
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 778 million shares as of September 30, 2021 and 805 million shares as of December 31, 2020 | 156 | 161 |
Additional paid-in capital | 12,401 | 11,881 |
Retained earnings | 14,832 | 13,837 |
Accumulated other comprehensive income (loss) | ||
Net unrealized debt securities gains, net of tax of: 2021, $11; 2020, $20 | 34 | 65 |
Foreign currency translation adjustments, net of tax of: 2021, $(366); 2020, $(381) | (2,310) | (2,229) |
Net unrealized pension and other postretirement benefits, net of tax of: 2021, $(218); 2020, $(236) | (687) | (731) |
Total accumulated other comprehensive income (loss) | (2,963) | (2,895) |
Total shareholders’ equity | 24,426 | 22,984 |
Total liabilities and shareholders’ equity | 184,261 | 191,367 |
Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Long-term debt (includes debt issued by consolidated variable interest entities: 2021, $9,059; 2020, $12,760) | 9,059 | 12,760 |
Card Member Receivables | ||
Cash and cash equivalents | ||
Financing receivables, net | 48,728 | 43,434 |
Card Member Loans | ||
Cash and cash equivalents | ||
Financing receivables, net | 73,537 | 68,029 |
Other Loans | ||
Cash and cash equivalents | ||
Financing receivables, net | $ 2,349 | $ 2,614 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | ||
Securities purchased under resale agreements | $ 369 | $ 92 |
Restricted cash and cash equivalents | 475 | 606 |
Accumulated depreciation and amortization | 8,371 | 7,540 |
Other assets, reserves for credit losses | 33 | 85 |
Liabilities | ||
Long-term debt | $ 34,483 | $ 42,952 |
Shareholders’ Equity | ||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 |
Preferred shares, authorized | 20,000,000 | 20,000,000 |
Preferred shares, issued | 2,350 | 1,600 |
Preferred shares, outstanding | 2,350 | 1,600 |
Common shares, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common shares, authorized | 3,600,000,000 | 3,600,000,000 |
Common shares, issued | 778,000,000 | 805,000,000 |
Common shares, outstanding | 778,000,000 | 805,000,000 |
Accumulated other comprehensive income (loss) | ||
Net unrealized debt securities, tax | $ 11 | $ 20 |
Foreign currency translation adjustments, tax | (366) | (381) |
Net unrealized pension and other postretirement benefits, tax | (218) | (236) |
Card Member Receivables | ||
Cash and cash equivalents | ||
Financing receivables, gross | 48,758 | 43,701 |
Allowance for credit losses | 30 | 267 |
Card Member Loans | ||
Cash and cash equivalents | ||
Financing receivables, gross | 77,026 | 73,373 |
Allowance for credit losses | 3,489 | 5,344 |
Other Loans | ||
Cash and cash equivalents | ||
Allowance for credit losses | 66 | 238 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | ||
Restricted cash and cash equivalents | 25 | 47 |
Liabilities | ||
Long-term debt | 9,059 | 12,760 |
Variable Interest Entity, Primary Beneficiary | Card Member Receivables | ||
Cash and cash equivalents | ||
Financing receivables, gross | 5,101 | 4,296 |
Variable Interest Entity, Primary Beneficiary | Card Member Loans | ||
Cash and cash equivalents | ||
Financing receivables, gross | $ 24,675 | $ 25,908 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 6,341 | $ 1,697 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provisions for credit losses | (1,472) | 4,841 |
Depreciation and amortization | 1,276 | 1,115 |
Deferred taxes and other | (446) | 79 |
Stock-based compensation | 256 | 175 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||
Other assets | 863 | (1,432) |
Accounts payable & other liabilities | 2,819 | (4,384) |
Net cash provided by operating activities | 9,637 | 2,091 |
Cash Flows from Investing Activities | ||
Sale of investment securities | 37 | 58 |
Maturities and redemptions of investment securities | 12,803 | 4,881 |
Purchase of investments | (1,179) | (18,977) |
Net (increase) decrease in Card Member loans and receivables, and other loans | (9,790) | 32,262 |
Purchase of premises and equipment, net of sales: 2021, $41; 2020, $1 | (1,079) | (1,042) |
Other investing activities | 1 | 7 |
Net cash provided by investing activities | 793 | 17,189 |
Cash Flows from Financing Activities | ||
Net (decrease) increase in customer deposits | (2,534) | 12,158 |
Net increase (decrease) in short-term borrowings | 428 | (4,737) |
Proceeds from long-term debt | 38 | 0 |
Payments of long-term debt | (8,247) | (13,699) |
Issuance of American Express preferred shares | 1,584 | 0 |
Redemption of American Express preferred shares | (850) | 0 |
Issuance of American Express common shares | 54 | 34 |
Repurchase of American Express common shares and other | (4,681) | (1,026) |
Dividends paid | (1,090) | (1,112) |
Net cash used in financing activities | (15,298) | (8,382) |
Effect of foreign currency exchange rates on cash and cash equivalents | (181) | 283 |
Net (decrease) increase in cash and cash equivalents | (5,049) | 11,181 |
Cash and cash equivalents at beginning of period | 32,965 | 24,446 |
Cash and cash equivalents at end of period | $ 27,916 | $ 35,627 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||||
Sales of premises and equipment | $ 41 | $ 1 | ||
Cash and cash equivalents reconciliation | ||||
Total cash and cash equivalents | 27,916 | 35,627 | $ 32,965 | $ 24,446 |
Restricted balances included in Cash and cash equivalents | 475 | 2,597 | 606 | 514 |
Total cash and cash equivalents excluding restricted balances | $ 27,441 | $ 33,030 | $ 32,359 | $ 23,932 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Series B Preferred Stock | Series B Preferred StockRetained Earnings | Series C Preferred Stock | Series C Preferred StockRetained Earnings | Series D Preferred Stock | Series D Preferred StockRetained Earnings |
Beginning Balance at Dec. 31, 2019 | $ 23,071 | $ (882) | $ 0 | $ 163 | $ 11,774 | $ (2,737) | $ 13,871 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,697 | 1,697 | ||||||||||||
Other comprehensive income (loss) | (135) | (135) | 0 | |||||||||||
Repurchase of common shares | (875) | (2) | (105) | (768) | ||||||||||
Other changes, primarily employee plans | 102 | 149 | (47) | |||||||||||
Cash dividends declared preferred | $ (27) | $ (27) | $ (38) | $ (38) | ||||||||||
Cash dividends declared common | (1,044) | (1,044) | ||||||||||||
Ending Balance at Sep. 30, 2020 | 21,869 | 0 | 161 | 11,818 | (2,872) | 12,762 | ||||||||
Beginning Balance at Jun. 30, 2020 | 21,062 | 0 | 161 | 11,760 | (2,911) | 12,052 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,073 | 1,073 | ||||||||||||
Other comprehensive income (loss) | 39 | 39 | 0 | |||||||||||
Other changes, primarily employee plans | 59 | 58 | 1 | |||||||||||
Cash dividends declared preferred | (7) | (7) | (9) | (9) | ||||||||||
Cash dividends declared common | (348) | (348) | ||||||||||||
Ending Balance at Sep. 30, 2020 | 21,869 | 0 | 161 | 11,818 | (2,872) | 12,762 | ||||||||
Beginning Balance at Dec. 31, 2020 | 22,984 | 0 | 161 | 11,881 | (2,895) | 13,837 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 6,341 | 6,341 | ||||||||||||
Other comprehensive income (loss) | (68) | (68) | ||||||||||||
Preferred shares issued | 1,584 | 1,584 | ||||||||||||
Redemption of preferred shares | (850) | (841) | (9) | |||||||||||
Repurchase of common shares | (4,646) | (6) | (400) | (4,240) | ||||||||||
Other changes, primarily employee plans | 160 | 1 | 177 | (18) | ||||||||||
Cash dividends declared preferred | (21) | (21) | (22) | (22) | $ (6) | $ (6) | ||||||||
Cash dividends declared common | (1,030) | (1,030) | ||||||||||||
Ending Balance at Sep. 30, 2021 | 24,426 | 0 | 156 | 12,401 | (2,963) | 14,832 | ||||||||
Beginning Balance at Jun. 30, 2021 | 25,539 | 0 | 160 | 11,858 | (2,881) | 16,402 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,826 | 1,826 | ||||||||||||
Other comprehensive income (loss) | (82) | (82) | ||||||||||||
Preferred shares issued | 1,584 | 1,584 | ||||||||||||
Redemption of preferred shares | (850) | (841) | (9) | |||||||||||
Repurchase of common shares | (3,300) | (4) | (266) | (3,030) | ||||||||||
Other changes, primarily employee plans | 66 | 66 | ||||||||||||
Cash dividends declared preferred | $ (7) | $ (7) | $ (7) | $ (7) | $ (6) | $ (6) | ||||||||
Cash dividends declared common | (337) | (337) | ||||||||||||
Ending Balance at Sep. 30, 2021 | $ 24,426 | $ 0 | $ 156 | $ 12,401 | $ (2,963) | $ 14,832 | ||||||||
[1] | Represents $1,170 million, net of tax of $288 million, related to the impact as of January 1, 2020 of adopting the current expected credit loss methodology for the recognition of credit losses on certain financial instruments. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | |
Cash dividends declared | |||||
Common stock, dividend per share (in dollars per share) | $ 0.43 | $ 0.43 | $ 1.29 | $ 1.29 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Cash dividends declared | |||||
Impact of new accounting guidance, net of tax | $ 1,170 | ||||
Impact of new accounting guidance, tax | $ 288 | ||||
Series B Preferred Stock | |||||
Cash dividends declared | |||||
Preferred stock, dividend per depositary share (in dollars per share) | 9.06 | 9.98 | 27.44 | 36.44 | |
Series C Preferred Stock | |||||
Cash dividends declared | |||||
Preferred stock, dividend per depositary share (in dollars per share) | 8.70 | $ 9.20 | 26.32 | $ 43.99 | |
Series D Preferred Stock | |||||
Cash dividends declared | |||||
Preferred stock, dividend per depositary share (in dollars per share) | $ 4.24 | $ 4.24 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company 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 our 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. The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. If not materially different, certain note disclosures included therein have been omitted from these Consolidated Financial Statements. The interim Consolidated Financial Statements included in this report have not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ. Effective April 1, 2021, we prospectively changed the recognition of certain costs paid to a third party previously recognized over the twelve month card membership period in Net card fees in the Consolidated Statements of Income; such costs are now recorded as incurred in Marketing and business development expense. This change is not material to the Consolidated Financial Statements. Recently Adopted Accounting Standards Effective January 1, 2021, we elected to change our accounting for investments in qualified affordable housing projects from the equity method of accounting to the proportional amortization method (PAM) in accordance with the accounting guidance. PAM results in the amortization of the initial cost of the investment in proportion to the related tax credits, and recognition of the net investment performance in the statement of income as a component of Income tax provision, while the equity method reflected losses related to the investments as a component of Other, net expenses. As a result, we believe PAM is preferable as it better reflects the economics of our tax credit investments. Since the impact of this change is immaterial to our prior and current period financial statements, we implemented PAM on a prospective basis which resulted in a one-time charge to Income tax provision of $55 million in the first quarter of 2021, reflecting the cumulative impact of the difference in the timing of expense recognition between the equity method and PAM. |
Loans and Card Member Receivabl
Loans and Card Member Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans and Card Member Receivables | Loans and Card Member Receivables Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. We also extend credit to consumer and commercial customers through non-card financing products, resulting in Other loans. Card Member loans by segment and Other loans as of September 30, 2021 and December 31, 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group (a) $ 61,625 $ 60,084 Global Commercial Services 15,401 13,289 Card Member loans 77,026 73,373 Less: Reserves for credit losses 3,489 5,344 Card Member loans, net $ 73,537 $ 68,029 Other loans, net (b) $ 2,349 $ 2,614 (a) Includes approximately $24.7 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of September 30, 2021 and December 31, 2020, respectively. (b) Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.1 billion and $0.6 billion of gross PPP loans outstanding as of September 30, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $66 million and $238 million as of September 30, 2021 and December 31, 2020, respectively. Card Member receivables by segment as of September 30, 2021 and December 31, 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group $ 19,499 $ 18,685 Global Commercial Services (a) 29,259 25,016 Card Member receivables 48,758 43,701 Less: Reserves for credit losses 30 267 Card Member receivables, net $ 48,728 $ 43,434 (a) Includes $5.1 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 30, 2021 and December 31, 2020, respectively. Card Member Loans and 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 September 30, 2021 and December 31, 2020: 2021 (Millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 61,178 $ 144 $ 100 $ 203 $ 61,625 Global Commercial Services Global Small Business Services 15,272 29 19 29 15,349 Global Corporate Payments (a) (b) (b) (b) — 52 Card Member Receivables: Global Consumer Services Group 19,400 38 22 39 19,499 Global Commercial Services Global Small Business Services $ 16,684 $ 42 $ 24 $ 31 $ 16,781 Global Corporate Payments (a) (b) (b) (b) $ 35 $ 12,478 2020 (Millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 59,442 $ 177 $ 148 $ 317 $ 60,084 Global Commercial Services Global Small Business Services 13,132 27 20 47 13,226 Global Corporate Payments (a) (b) (b) (b) — 63 Card Member Receivables: Global Consumer Services Group 18,570 33 26 56 18,685 Global Commercial Services Global Small Business Services $ 14,023 $ 37 $ 21 $ 38 $ 14,119 Global Corporate Payments (a) (b) (b) (b) $ 60 $ 10,897 (a) Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. 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 nine months ended September 30: 2021 2020 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: Global Consumer Services Group 1.1 % 1.4 % 0.7 % 2.7 % 3.2 % 1.2 % Global Small Business Services 0.7 % 0.8 % 0.5 % 2.1 % 2.4 % 1.1 % Card Member Receivables: Global Consumer Services Group 0.3 % 0.4 % 0.5 % 2.0 % 2.2 % 0.8 % Global Small Business Services 0.3 % 0.4 % 0.6 % 2.3 % 2.6 % 1.0 % Global Corporate Payments (d) (b) (0.1) % (c) (b) 2.2 % (c) (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, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (b) Net write-off rate based on principal losses only is not available due to system constraints. (c) For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 0.3% and 0.6% as of September 30, 2021 and 2020, respectively. (d) The net write-off rate for the current year includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year. Refer to Note 3 for additional indicators, including external environmental qualitative factors, management considers in its evaluation process for reserves for credit losses. Impaired Loans and Receivables Impaired 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 customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) non-accrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs). In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.” The following tables provide additional information with respect to our impaired loans and receivables as of September 30, 2021 and December 31, 2020: As of September 30, 2021 Accounts Classified as a TDR (c) 2021 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 134 $ 77 $ 845 $ 891 $ 1,947 $ 491 Global Commercial Services 14 15 209 299 537 165 Card Member Receivables: Global Consumer Services Group — — 138 101 239 24 Global Commercial Services — — 254 265 519 46 Other Loans (f) 1 — 97 3 101 9 Total $ 149 $ 92 $ 1,543 $ 1,559 $ 3,343 $ 735 As of December 31, 2020 Accounts Classified as a TDR (c) 2020 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 203 $ 146 $ 1,586 $ 248 $ 2,183 $ 782 Global Commercial Services 21 29 478 67 595 285 Card Member Receivables: Global Consumer Services Group — — 240 34 274 60 Global Commercial Services — — 534 75 609 139 Other Loans (f) 2 1 248 6 257 80 Total $ 226 $ 176 $ 3,086 $ 430 $ 3,918 $ 1,346 (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 loans classified as a TDR. (b) Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs. (c) Accounts classified as a TDR include $32 million and $32 million that are over 90 days past due and accruing interest as of September 30, 2021 and December 31, 2020, respectively, and $17 million and $11 million that are non-accruals as of September 30, 2021 and December 31, 2020, respectively. (d) In Program TDRs include accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $1,413 million and $316 million of accounts that have successfully completed a modification program and $146 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of September 30, 2021 and December 31, 2020, respectively. (f) Other loans primarily represent consumer and commercial non-card financing products. Loans and Receivables Modified as TDRs The following tables provide additional information with respect to loans and receivables that entered a financial relief program and were modified as TDRs during the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended Number of Account Balances (millions) (a) Average Interest Average Payment Number of Account Balances (millions) (a) Average Interest Average Payment Troubled Debt Restructurings: Card Member Loans 26 $ 177 13 (b) 87 $ 636 13 (b) Card Member Receivables 5 114 (c) 17 16 314 (c) 18 Other Loans (d) 1 2 3 17 3 $ 12 3 16 Total 32 $ 293 106 $ 962 Three Months Ended Nine Months Ended Number of Account Balances (millions) (a) Average Interest Average Payment Number of Account Balances (millions) (a) Average Interest Average Payment Troubled Debt Restructurings: Card Member Loans 76 $ 649 14 (b) 216 $ 1,947 14 (b) Card Member Receivables 13 231 (c) 18 38 1,049 (c) 19 Other Loans (d) 3 $ 165 3 17 8 $ 319 3 16 Total 92 $ 1,045 262 $ 3,315 (a) Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on 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. (d) Other loans primarily represent consumer and commercial non-card financing products. The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. Three Months Ended Nine Months Ended Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Number of Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 4 $ 32 20 $ 148 Card Member Receivables 1 10 5 48 Other Loans (b) 1 1 3 9 Total 6 $ 43 28 $ 205 Three Months Ended Nine Months Ended Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Number of Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 4 $ 32 11 $ 84 Card Member Receivables 1 16 3 34 Other Loans (b) 1 1 2 $ 2 Total 6 $ 49 16 $ 120 (a) The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables. (b) Other loans primarily represent consumer and commercial non-card financing products. |
Reserves for Credit Losses
Reserves for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Reserve for Credit Losses | Reserves for Credit Losses Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses. We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates. • PD models are used to estimate the likelihood an account will be written-off. • EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors. • Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions. We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses. Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios and applies judgment to weight them in order to reflect the uncertainty surrounding these scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models. We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions. Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually using a discounted cash flow model. Loans and receivable balances are written off when we consider 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 for pay in full or revolving loans and 120 days past due for term loans. Loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification. The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses: U.S. Unemployment Rate U.S. GDP Growth (Contraction) (a) September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Third quarter of 2021 5% 7% - 11% 8% 3% - (3)% Fourth quarter of 2021 5% - 7% 7% - 11% 6% - (4)% 6% - (2)% Fourth quarter of 2022 4% - 9% 6% - 12% 2% - 1% 4% - 3% Fourth quarter of 2023 3% - 7% 4% -10% 4% - 3% 5% - 3% (a) Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates. Changes in Card Member Loans Reserve for Credit Losses Card Member loans reserve for credit losses decreased for the three and nine months ended September 30, 2021, driven by improved portfolio quality and macroeconomic outlook, partially offset by an increase in the outstanding balance of loans, and for the current nine month period, the decrease in reserves was also driven by lower delinquencies. Card Member loans reserve for credit losses increased for the three and nine months ended September 30, 2020, driven by the deterioration of the global macroeconomic outlook as a result of the COVID-19 pandemic, partially offset by a decline in the outstanding balance of loans and lower delinquencies. The following table presents changes in the Card Member loans reserve for credit losses for the three and nine months ended September 30: Three Months Ended September 30, Nine Months Ended September 30, (Millions) 2021 2020 2021 2020 Beginning Balance $ 3,835 $ 5,628 $ 5,344 $ 4,027 Provisions (a) (177) 571 (1,146) 3,416 Net write-offs (b) Principal (118) (432) (544) (1,449) Interest and fees (43) (91) (164) (301) Other (c) (8) 12 (1) (5) Ending Balance $ 3,489 $ 5,688 $ 3,489 $ 5,688 (a) Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Principal write-offs are presented less recoveries of $167 million and $142 million for the three months ended September 30, 2021 and 2020, respectively, and $507 million and $421 million for the nine months ended September 30, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(36) million and $(35) million for the three months ended September 30, 2021 and 2020, respectively, and $(124) million and $(98) million for the nine months ended September 30, 2021 and 2020, respectively. (c) Primarily includes foreign currency translation adjustments of $(8) million and $13 million for the three months ended September 30, 2021 and 2020, respectively, and $(2) million and $(4) million for the nine months ended September 30, 2021 and 2020, respectively. Changes in Card Member Receivables Reserve for Credit Losses Card Member receivables reserve for credit losses decreased for the three and nine months ended September 30, 2021, driven by improved portfolio quality and macroeconomic outlook, partially offset by an increase in the outstanding balance of receivables. Card Member receivables reserve for credit losses decreased for the three months ended September 30, 2020, primarily driven by lower delinquencies. Card Member receivables reserve for credit losses increased for the nine months ended September 30, 2020, driven by the deterioration of the global macroeconomic outlook as a result of the COVID-19 pandemic, partially offset by a decline in the outstanding balance of receivables. The following table presents changes in the Card Member receivables reserve for credit losses for the three and nine months ended September 30: Three Months Ended September 30, Nine Months Ended September 30, (Millions) 2021 2020 2021 2020 Beginning Balance $ 73 $ 519 $ 267 $ 126 Provisions (a) (12) 117 (147) 1,069 Net write-offs (b) (32) (219) (89) (776) Other (c) 1 5 (1) 3 Ending Balance $ 30 $ 422 $ 30 $ 422 (a) Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Net write-offs are presented less recoveries of $79 million and $103 million for the three months ended September 30, 2021 and 2020, respectively, and $303 million and $283 million for the nine months ended September 30, 2021 and 2020, respectively. Amounts include net (write-offs) recoveries from TDRs of $(15) million and $(15) million for the three months ended September 30, 2021 and 2020, respectively, and $(51) million and $(31) million for the nine months ended September 30, 2021 and 2020, respectively. (c) Primarily includes foreign currency translation adjustments of nil and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $(1) million and $2 million for the nine months ended September 30, 2021 and 2020, respectively. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
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. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our available-for-sale debt securities totaling $38 million and $26 million as of September 30, 2021 and December 31, 2020, respectively, presented as Other assets on the Consolidated Balance Sheets. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. The following is a summary of investment securities as of September 30, 2021 and December 31, 2020: 2021 2020 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 102 $ 5 $ (1) $ 106 $ 172 $ 7 $ — $ 179 U.S. Government agency obligations 6 — — 6 7 — — 7 U.S. Government treasury obligations 8,718 39 — 8,757 20,655 76 — 20,731 Mortgage-backed securities (a) 19 2 — 21 28 2 — 30 Foreign government bonds and obligations 556 — — 556 581 — — 581 Other (b) 41 — — 41 22 — — 22 Equity securities (c)(d) 58 46 (2) 102 56 27 (2) 81 Total $ 9,500 $ 92 $ (3) $ 9,589 $ 21,521 $ 112 $ (2) $ 21,631 (a) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (b) Represents investments in Corporate debt securities and debt securities issued by Community Development Financial Institutions. (c) Equity securities comprise investments in common stock, exchange-traded funds and mutual funds. (d) During the third quarter of 2021, certain equity securities were reclassified from Other assets to Investment securities following the completion of initial public offerings by the issuers of the securities. The investments had a fair value of $51 million with an associated cost basis of $7 million as of September 30, 2021. The gross unrealized gains amount includes $5 million that was recognized during 2018. There were no available-for-sale debt securities with gross unrealized losses as of both September 30, 2021 and December 31, 2020. Contractual maturities for investment securities with stated maturities as of September 30, 2021 were as follows: (Millions) Cost Estimated Due within 1 year $ 8,453 $ 8,460 Due after 1 year but within 5 years 879 909 Due after 5 years but within 10 years 35 41 Due after 10 years 75 77 Total $ 9,442 $ 9,487 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. |
Asset Securitizations
Asset Securitizations | 9 Months Ended |
Sep. 30, 2021 | |
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. 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 September 30, 2021 and December 31, 2020, our ownership of variable interests was $15.8 billion and $13.4 billion, respectively, for the Lending Trust and $5.1 billion and $4.3 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. Restricted cash and cash equivalents held by the Lending Trust and Charge Trust was $25 million and nil, respectively, as of September 30, 2021 and $47 million and nil, respectively, as of December 31, 2020. 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 nine months ended September 30, 2021 and the year ended December 31, 2020, no such triggering events occurred. |
Customer Deposits
Customer Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Customer Deposits | Customer Deposits As of September 30, 2021 and December 31, 2020, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2021 2020 U.S.: Interest-bearing $ 83,299 $ 85,583 Non-interest-bearing (includes Card Member credit balances of: 2021, $467; 2020, $576) 489 599 Non-U.S.: Interest-bearing 19 19 Non-interest-bearing (includes Card Member credit balances of: 2021, $515; 2020, $671) 519 674 Total customer deposits $ 84,326 $ 86,875 Customer deposits by deposit type as of September 30, 2021 and December 31, 2020 were as follows: (Millions) 2021 2020 U.S. retail deposits: Savings accounts – Direct $ 65,721 $ 63,512 Certificates of deposit: Direct 1,665 2,440 Third-party (brokered) 3,274 5,561 Sweep accounts – Third-party (brokered) 12,637 14,070 Other deposits: U.S. deposits 24 23 Non-U.S. deposits 23 22 Card Member credit balances ― U.S. and non-U.S. 982 1,247 Total customer deposits $ 84,326 $ 86,875 The scheduled maturities of certificates of deposit as of September 30, 2021 were as follows: (Millions) U.S. Non-U.S. Total 2021 $ 567 $ 2 $ 569 2022 3,123 5 3,128 2023 738 — 738 2024 284 — 284 2025 211 — 211 After 5 years 16 — 16 Total $ 4,939 $ 7 $ 4,946 As of September 30, 2021 and December 31, 2020, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2021 2020 U.S. $ 627 $ 930 Non-U.S. 1 1 Total $ 628 $ 931 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 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, regulatory proceedings, 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. Plaintiffs have appealed part of this decision. On February 25, 2020, we were named as a defendant in a case filed in the Superior Court of California, Los Angeles County, captioned Laurelwood Cleaners LLC v. American Express Co., et al. , in which the plaintiff seeks a public injunction prohibiting American Express from enforcing its anti-steering and non-discrimination provisions and from requiring merchants “to offer the service of Amex-card acceptance for free.” The case has been stayed pending the outcome of arbitration proceedings. On January 29, 2019, we were named in a putative class action brought in the United States District Court for the Eastern District of New York, captioned Anthony Oliver, et al. v. American Express Company and American Express Travel Related Services Company Inc. , in which the plaintiffs are holders of MasterCard, Visa and/or Discover credit cards (but not American Express cards) and allege they paid higher prices as a result of our anti-steering and non-discrimination provisions in violation of federal antitrust law and the antitrust and consumer laws of various states. Plaintiffs seek unspecified damages and other forms of relief. The court dismissed plaintiffs’ federal antitrust claim, numerous state antitrust and consumer protection claims and their unjust enrichment claim. The remaining claims in plaintiffs’ complaint arise under the antitrust laws of 11 states and the consumer protection laws of six states. 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. On August 28, 2020, the court granted plaintiffs' motion for class certification. In 2006, Mawarid Investments Limited filed a request for confidential arbitration under the 1998 London Court of International Arbitration Rules in connection with certain claims arising under a shareholders agreement between Mawarid and American Express Travel Related Services Company, Inc. (TRS) relating to a joint venture between the parties, Amex (Middle East) BSC(c) (AEME). In 2008, the tribunal rendered a partial award, including a direction that an audit should take place to verify whether acquirer discount revenue related to transactions occurring with airlines located in the Middle East region had been properly allocated to AEME since its inception in 1992. In September 2021, the tribunal rendered a further partial award regarding the location of transactions through non-physical channels. The consequences of the tribunal’s 2008 and 2021 partial awards on the allocation of airline acquirer revenues will be determined in the remaining phase of the arbitration. 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 $210 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 and results of operations. In addition, we face exposure associated with Card Member purchases, including with respect to the following: • Return Protection — refunds the price of qualifying purchases made with eligible cards, where the merchant will not accept the return, for up to 90 days from the date of purchase; and • Merchant Protection — protects Card Members primarily against non-delivery of purchases, usually in the event of the bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which we will generally credit the Card Member’s account. If we are unable to collect the amount from the merchant, we may bear the loss for the amount credited to the Card Member. The largest component of the exposure relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where we have remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown.” |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2021 | |
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 and foreign exchange rates, 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. A majority of our derivative assets and liabilities as of September 30, 2021 and December 31, 2020 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets. 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 September 30, 2021, these derivatives were not in a material net liability position. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of September 30, 2021 and December 31, 2020, no credit risk adjustment to the derivative portfolio was required. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of September 30, 2021 and December 31, 2020: Other Assets Fair Value Other Liabilities Fair Value (Millions) 2021 2020 2021 2020 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 308 $ 500 $ — $ — Net investment hedges - Foreign exchange contracts 102 24 47 474 Total derivatives designated as hedging instruments 410 524 47 474 Derivatives not designated as hedging instruments: Foreign exchange contracts 121 105 72 228 Total derivatives, gross 531 629 119 702 Derivative asset and derivative liability netting (b) (74) (98) (74) (98) Cash collateral netting (c) (310) (500) (3) (16) Total derivatives, net $ 147 $ 31 $ 42 $ 588 (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. We posted $15 million and $34 million as of September 30, 2021 and December 31, 2020, 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. Fair Value Hedges 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 had $12.9 billion and $15.8 billion of fixed-rate debt obligations designated in fair value hedging relationships as of September 30, 2021 and December 31, 2020, respectively. The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three and nine months ended September 30: Gains (losses) Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Fixed-rate long-term debt $ 59 $ 96 $ 257 $ (497) Derivatives designated as hedging instruments (58) (97) (257) 504 Total $ 1 $ (1) $ — $ 7 The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $13.2 billion and $16.4 billion as of September 30, 2021 and December 31, 2020, respectively, including the cumulative amount of fair value hedging adjustments of $365 million and $622 million for the respective periods. We recognized net decreases of $60 million and $81 million in Interest expense on Long-term debt for the three months ended September 30, 2021 and 2020, respectively, and net decreases of $196 million and $183 million for the nine months ended September 30, 2021 and 2020, respectively, primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges. Net Investment Hedges We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure to changes in currency exchange rates on our investments in non-U.S. subsidiaries. We had notional amounts of approximately $11.4 billion and $10.5 billion of foreign currency derivatives designated as net investment hedges as of September 30, 2021 and December 31, 2020, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, was a gain of $155 million and a loss of $170 million for the three months ended September 30, 2021 and 2020, respectively, and gains of $53 million and $223 million for the nine months ended September 30, 2021 and 2020, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for any of the three and nine months ended September 30, 2021 and 2020. Derivatives Not Designated as Hedges The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. We had notional amounts of approximately $16.8 billion and $14.4 billion as of September 30, 2021 and December 31, 2020, respectively. The changes in the fair value of the derivatives and the related underlying foreign currency exposures resulted in a net loss of $10 million and a net gain of $4 million for the three months ended September 30, 2021 and 2020, respectively, and a net loss of $24 million and a net gain of $22 million for the nine months ended September 30, 2021 and 2020, respectively, that are recognized in Other, net expenses in the Consolidated Statements of Income. |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values | Fair Values 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 of September 30, 2021 and December 31, 2020: 2021 2020 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 102 $ 101 $ 1 $ — $ 81 $ 80 $ 1 $ — Debt securities (b) 9,487 — 9,462 25 21,550 — 21,550 — Derivatives, gross (a) 531 — 531 — 629 — 629 — Total Assets 10,120 101 9,994 25 22,260 80 22,180 — Liabilities: Derivatives, gross (a) 119 — 119 — 702 — 702 — Total Liabilities $ 119 $ — $ 119 $ — $ 702 $ — $ 702 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis. (b) Level 3 fair value amount represents investments in debt securities issued by Community Development Financial Institutions. 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 September 30, 2021 and December 31, 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2021 and December 31, 2020, 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. Carrying Corresponding Fair Value Amount 2021 (Billions) Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 28 $ 28 $ 26 $ 2 $ — Other financial assets (b) 51 51 — 51 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 76 79 — — 79 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 103 103 — 103 — Financial liabilities carried at other than fair value Certificates of deposit (d) 5 5 — 5 — Long-term debt (c) $ 34 $ 36 $ — $ 36 $ — Carrying Corresponding Fair Value Amount 2020 (Billions) Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 33 $ 33 $ 31 $ 2 $ — Other financial assets (b) 46 46 — 46 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 71 75 — — 75 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 101 101 — 101 — Financial liabilities carried at other than fair value Certificates of deposit (d) 8 8 — 8 — Long-term debt (c) $ 43 $ 45 $ — $ 45 $ — (a) Level 2 fair value amounts reflect time deposits and short-term investments. (b) Balances include Card Member receivables (including fair values of Card Member receivables of $5.1 billion and $4.2 billion held by a consolidated VIE as of September 30, 2021 and December 31, 2020, respectively), other receivables and other miscellaneous assets. (c) Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $24.7 billion and $25.8 billion as of September 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $9.2 billion and $13.0 billion as of September 30, 2021 and December 31, 2020, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance Sheets. Nonrecurring Fair Value Measurements We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. During the nine months ended September 30, 2021 and the year ended December 31, 2020, we did not have any material assets that were measured at fair value due to impairment. We estimate the Level 3 fair value of equity investments without readily determinable fair values based on price changes as of the date of new similar equity financing transactions completed by the companies in our portfolio. The carrying value of equity investments without readily determinable fair values totaled $1.3 billion and $530 million as of September 30, 2021 and December 31, 2020, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded net unrealized gains of $103 million and $25 million for the three months ended September 30, 2021 and 2020, respectively, and $728 million and $47 million for the nine months ended September 30, 2021 and 2020, respectively. Unrealized losses including any impairments were not significant for any of the three and nine months ended September 30, 2021 and 2020. Beginning in January 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $347 million as of September 30, 2021 and December 31, 2020, respectively. In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both September 30, 2021 and December 31, 2020. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
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 $25 million, respectively, as of September 30, 2021, and $1 billion and $24 million, respectively, as of December 31, 2020, 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. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Changes In Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) AOCI is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 (Millions), net of tax Net Unrealized Foreign Currency Net Unrealized Accumulated Other Balances as of June 30, 2021 $ 42 $ (2,227) $ (696) $ (2,881) Net unrealized losses (8) — — (8) Net translation on investments in foreign operations — (238) — (238) Net hedges of investments in foreign operations — 155 — 155 Pension and other postretirement benefits — — 9 9 Net change in accumulated other comprehensive income (loss) (8) (83) 9 (82) Balances as of September 30, 2021 $ 34 $ (2,310) $ (687) $ (2,963) Nine Months Ended September 30, 2021 (Millions), net of tax Net Unrealized Foreign Currency Net Unrealized Accumulated Other Balances as of December 31, 2020 $ 65 $ (2,229) $ (731) $ (2,895) Net unrealized losses (31) — — (31) Net translation on investments in foreign operations — (134) — (134) Net hedges of investments in foreign operations — 53 — 53 Pension and other postretirement benefits — — 44 44 Net change in accumulated other comprehensive income (loss) (31) (81) 44 (68) Balances as of September 30, 2021 $ 34 $ (2,310) $ (687) $ (2,963) Three Months Ended September 30, 2020 (Millions), net of tax Net Unrealized Gains (Losses) on Debt Securities Foreign Currency Net Unrealized Accumulated Other Comprehensive Income (Loss) Balances as of June 30, 2020 $ 85 $ (2,388) $ (608) $ (2,911) Net unrealized losses (9) — — (9) Net translation on investments in foreign operations — 210 — 210 Net hedges of investments in foreign operations — (170) — (170) Pension and other postretirement benefits — — 8 8 Net change in accumulated other comprehensive income (loss) (9) 40 8 39 Balances as of September 30, 2020 $ 76 $ (2,348) $ (600) $ (2,872) Nine Months Ended September 30, 2020 (Millions), net of tax Net Unrealized Gains (Losses) on Debt Securities Foreign Currency Net Unrealized Accumulated Other Comprehensive Income (Loss) Balances as of December 31, 2019 $ 33 $ (2,189) $ (581) $ (2,737) Net unrealized gains 43 — — 43 Decrease due to amounts reclassified into earnings — (3) — (3) Net translation on investments in foreign operations — (379) — (379) Net hedges of investments in foreign operations — 223 — 223 Pension and other postretirement benefits — — (19) (19) Net change in accumulated other comprehensive income (loss) 43 (159) (19) (135) Balances as of September 30, 2020 $ 76 $ (2,348) $ (600) $ (2,872) The following table shows the tax impact for the three and nine months ended September 30 for the changes in each component of AOCI presented above: Tax expense (benefit) Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Net unrealized (losses) gains on debt securities $ (3) $ (3) $ (9) $ 13 Net translation on investments in foreign operations (2) (14) 3 10 Net hedges of investments in foreign operations 47 (57) 12 67 Pension and other postretirement benefits 5 (1) 18 10 Total tax impact $ 47 $ (75) $ 24 $ 100 Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for any of the three and nine months ended September 30, 2021 and 2020. |
Other Fees and Commissions and
Other Fees and Commissions and Other Expenses | 9 Months Ended |
Sep. 30, 2021 | |
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 three and nine months ended September 30: Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Fees charged to Card Members: Delinquency fees $ 166 $ 159 $ 460 $ 615 Foreign currency conversion fee revenue 142 86 347 336 Other customer fees: Loyalty coalition-related fees 123 112 368 309 Travel commissions and fees 74 19 164 84 Service fees and other (a) 127 102 373 303 Total Other fees and commissions $ 632 $ 478 $ 1,712 $ 1,647 (a) Other includes Membership Rewards program fees that are not related to contracts with customers. Revenue expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g. discount revenue) are not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material. The following is a detail of Other expenses for the three and nine months ended September 30: Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Data processing and equipment (a) $ 613 $ 577 $ 1,772 $ 1,690 Professional services 490 421 1,351 1,266 Net unrealized and realized gains on Amex Ventures equity investments (142) (66) (773) (116) Other (b) 257 297 745 908 Total Other expenses $ 1,218 $ 1,229 $ 3,095 $ 3,748 (a) Effective for the first quarter of 2021, we changed the expense category name from Occupancy and equipment to Data processing and equipment to better reflect the nature and components of the expense. (b) Other primarily includes general operating expenses, communication expenses, non-income taxes, Card Member and merchant-related fraud losses, foreign currency-related gains and losses and litigation expenses. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 25.5 percent and 21.3 percent for the three months ended September 30, 2021 and 2020, respectively, and 24.4 percent and 30.4 percent for the nine months ended September 30, 2021 and 2020, respectively. The increase in the effective tax rate for the three month period primarily reflected changes in the level and geographic mix of pretax income and discrete tax charges in the current period. The decrease in the effective tax rate for the nine month period primarily reflected discrete tax charges in the prior period related to the realizability of certain foreign deferred tax assets. The current period effective tax rates also reflect the implementation of PAM. Refer to Note 1 for further information. 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. We are currently under examination by the IRS for the 2017 and 2018 tax years. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $144 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 $144 million of unrecognized tax benefits, approximately $114 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | Earnings Per Common Share (EPS) The computations of basic and diluted EPS for the three and nine months ended September 30 were as follows: Three Months Ended Nine Months Ended (Millions, except per share amounts) 2021 2020 2021 2020 Numerator: Basic and diluted: Net income $ 1,826 $ 1,073 $ 6,341 $ 1,697 Preferred dividends (20) (16) (49) (65) Equity-related adjustment (a) (9) — (9) — Net income available to common shareholders $ 1,797 $ 1,057 $ 6,283 $ 1,632 Earnings allocated to participating share awards (b) (14) (7) (45) (10) Net income attributable to common shareholders $ 1,783 $ 1,050 $ 6,238 $ 1,622 Denominator: (b) Basic: Weighted-average common stock 786 804 796 805 Add: Weighted-average stock options (c) 1 1 1 1 Diluted 787 805 797 806 Basic EPS $ 2.27 $ 1.31 $ 7.84 $ 2.01 Diluted EPS $ 2.27 $ 1.30 $ 7.82 $ 2.01 (a) Represents the difference between the redemption value and carrying value of the Series C preferred shares, which were redeemed on September 15, 2021. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the Series C preferred shares. (b) 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. (c) The dilutive effect of unexercised stock options excludes from the computation of EPS 0.01 million and 0.88 million of options for the three months ended September 30, 2021 and 2020, respectively, and 0.01 million and 0.61 million of options for the nine months ended September 30, 2021 and 2020, respectively, because inclusion of the options would have been anti-dilutive. |
Preferred Shares
Preferred Shares | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Preferred Shares | 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. The following table summarizes our preferred shares issued and outstanding as of September 30, 2021: Series B Series D Issuance Date November 10, 2014 August 3, 2021 Securities issued 750 Preferred shares; represented by 750,000 depositary shares 1,600 Preferred shares; represented by 1,600,000 depositary shares Dividend rate per annum 5.20% through November 14, 2019; 3-month LIBOR plus 3.428% thereafter 3.55% through September 14, 2026; resets September 15, 2026 and every subsequent 5-year anniversary at 5-year Treasury rate plus 2.854% Dividend payment date Semi-annual beginning May 15, 2015 and, quarterly beginning February 15, 2020 Quarterly beginning September 15, 2021 Earliest redemption date November 15, 2019 September 15, 2026 Aggregate liquidation preference $750 million $1,600 million Carrying value (a) $742 million $1,584 million (a) Carrying value, presented in the Statements of Shareholders' Equity, represents the issuance proceeds, net of underwriting fees and offering costs. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Company, the preferred shares then outstanding take precedence over our common shares for the payment of dividends and the distribution of assets out of funds legally available for distribution to shareholders. We may redeem each outstanding series of 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 earliest redemption date, or in whole, but not in part, within 90 days of certain bank regulatory changes. |
Reportable Operating Segments
Reportable Operating Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | Reportable Operating Segments As a result of organizational changes announced during the second quarter of 2021, our loyalty coalition businesses results, which were previously reported within the Global Merchant and Network Services (GMNS) segment, are now reported within the Global Consumer Services Group (GCSG) segment. Prior period segment results have been revised to conform with current period presentation. The following table presents certain selected financial information for our reportable operating segments and Corporate & Other as of or for the three and nine months ended September 30: Three Months Ended September 30, 2021 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 4,699 $ 2,978 $ 1,280 $ (23) $ 8,934 Revenue from contracts with customers (b) 3,392 2,556 1,198 (7) 7,139 Interest income 1,879 378 4 40 2,301 Interest expense 174 111 (24) 46 307 Total revenues net of interest expense 6,404 3,245 1,308 (29) 10,928 Pretax segment income (loss) $ 1,488 $ 718 $ 529 $ (285) $ 2,450 Total assets (billions) $ 92 $ 48 $ 14 $ 30 $ 184 Nine Months Ended September 30, 2021 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 12,982 $ 8,225 $ 3,545 $ (159) $ 24,593 Revenue from contracts with customers (b) 9,229 7,019 3,327 (20) 19,555 Interest income 5,436 1,059 12 126 6,633 Interest expense 536 338 (61) 178 991 Total revenues net of interest expense 17,882 8,946 3,618 (211) 30,235 Pretax segment income (loss) $ 5,525 $ 2,222 $ 1,441 $ (805) $ 8,383 Total assets (billions) $ 92 $ 48 $ 14 $ 30 $ 184 Three Months Ended September 30, 2020 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 3,632 $ 2,327 $ 997 $ (79) $ 6,877 Revenue from contracts with customers (b) 2,476 1,969 941 (6) 5,380 Interest income 1,916 351 4 53 2,324 Interest expense 244 139 (19) 86 450 Total revenues net of interest expense 5,304 2,539 1,020 (112) 8,751 Pretax segment income (loss) $ 1,125 $ 272 $ 326 $ (359) $ 1,364 Total assets (billions) $ 82 $ 40 $ 12 $ 53 $ 187 Nine Months Ended September 30, 2020 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 10,662 $ 7,129 $ 3,057 $ (200) $ 20,648 Revenue from contracts with customers (b) 7,205 5,993 2,857 (22) 16,033 Interest income 6,298 1,252 14 232 7,796 Interest expense 844 493 (61) 432 1,708 Total revenues net of interest expense 16,116 7,888 3,132 (400) 26,736 Pretax segment income (loss) $ 2,227 $ 269 $ 1,039 $ (1,097) $ 2,438 Total assets (billions) $ 82 $ 40 $ 12 $ 53 $ 187 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes discount revenue, certain other fees and commissions and other revenues from customers. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates reflect the best judgment of management, but actual results could differ. Effective April 1, 2021, we prospectively changed the recognition of certain costs paid to a third party previously recognized over the twelve month card membership period in Net card fees in the Consolidated Statements of Income; such costs are now recorded as incurred in Marketing and business development expense. This change is not material to the Consolidated Financial Statements. |
Recently Adopted Accounting Standards | Effective January 1, 2021, we elected to change our accounting for investments in qualified affordable housing projects from the equity method of accounting to the proportional amortization method (PAM) in accordance with the accounting guidance. PAM results in the amortization of the initial cost of the investment in proportion to the related tax credits, and recognition of the net investment performance in the statement of income as a component of Income tax provision, while the equity method reflected losses related to the investments as a component of Other, net expenses. As a result, we believe PAM is preferable as it better reflects the economics of our tax credit investments. Since the impact of this change is immaterial to our prior and current period financial statements, we implemented PAM on a prospective basis which resulted in a one-time charge to Income tax provision of $55 million in the first quarter of 2021, reflecting the cumulative impact of the difference in the timing of expense recognition between the equity method and PAM. |
Impaired Loans and Receivables | Impaired 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 customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) non-accrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs). In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.” |
Reserves for Credit Losses | Reserves for credit losses represent our best estimate of the expected credit losses in our outstanding portfolio of Card Member loans and receivables as of the balance sheet date. The CECL methodology requires us to estimate lifetime expected credit losses by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period (R&S Period), which is approximately three years, beyond the balance sheet date. We make various judgments combined with historical loss experience to determine a reserve rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses. We use a combination of statistically-based models that incorporate current and future economic conditions throughout the R&S Period. The process of estimating expected credit losses is based on several key models: Probability of Default (PD), Exposure at Default (EAD), and future recoveries for each month of the R&S Period. Beyond the R&S Period, we estimate expected credit losses by immediately reverting to long-term average loss rates. • PD models are used to estimate the likelihood an account will be written-off. • EAD models are used to estimate the balance of an account at the time of write-off. This includes balances less expected repayments based on historical payment and revolve behavior, which vary by customer. Due to the nature of revolving loan portfolios, the EAD models are complex and involve assumptions regarding the relationship between future spend and payment behaviors. • Recovery models are used to estimate amounts that are expected to be received from Card Members after default occurs, typically as a result of collection efforts. Future recoveries are estimated taking into consideration the time of default, time elapsed since default and macroeconomic conditions. We also estimate the likelihood and magnitude of recovery of previously written off accounts considering how long ago the account was written off and future economic conditions. Our models are developed using historical loss experience covering the economic cycle and consider the impact of account characteristics on expected losses. Future economic conditions that are incorporated over the R&S Period include multiple macroeconomic scenarios provided to us by an independent third party. Management reviews these economic scenarios and applies judgment to weight them in order to reflect the uncertainty surrounding these scenarios. These macroeconomic scenarios contain certain variables, including unemployment rates and real gross domestic product (GDP), that are significant to our models. We also evaluate whether to include qualitative reserves to cover losses that are expected but, in our assessment, may not be adequately represented in the quantitative methods or the economic assumptions. We consider whether to adjust the quantitative reserves (higher or lower) to address possible limitations within the models or factors not included within the models, such as external conditions, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions. Lifetime losses for most of our loans and receivables are evaluated at an appropriate level of granularity, including assessment on a pooled basis where financial assets share similar risk characteristics, such as past spend and remittance behaviors, credit bureau scores where available, delinquency status, tenure of balance outstanding, amongst others. Credit losses on accrued interest are measured and presented as part of Reserves for credit losses on the Consolidated Balance Sheets and within the Provisions for credit losses in the Consolidated Statements of Income, rather than reversing interest income. Separate models are used for accounts deemed a troubled debt restructuring, which are measured individually using a discounted cash flow model. |
Investments | Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. |
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. 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.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. |
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. 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 $210 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 and results of operations. In addition, we face exposure associated with Card Member purchases, including with respect to the following: • Return Protection — refunds the price of qualifying purchases made with eligible cards, where the merchant will not accept the return, for up to 90 days from the date of purchase; and • Merchant Protection — protects Card Members primarily against non-delivery of purchases, usually in the event of the bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which we will generally credit the Card Member’s account. If we are unable to collect the amount from the merchant, we may bear the loss for the amount credited to the Card Member. The largest component of the exposure relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where we have remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown.” |
Derivatives | A majority of our derivative assets and liabilities as of September 30, 2021 and December 31, 2020 are subject to master netting agreements with our derivative counterparties. Accordingly, where appropriate, we have elected to present derivative assets and liabilities with the same counterparty on a net basis in the Consolidated Balance Sheets.The changes in the fair value of derivatives that are not designated as hedges are intended to offset the related foreign exchange gains or losses of the underlying foreign currency exposures. |
Fair Values | 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 nine months ended September 30, 2021 and the year ended December 31, 2020, we did not have any material assets that were measured at fair value due to impairment. We estimate the Level 3 fair value of equity investments without readily determinable fair values based on price changes as of the date of new similar equity financing transactions completed by the companies in our portfolio. The carrying value of equity investments without readily determinable fair values totaled $1.3 billion and $530 million as of September 30, 2021 and December 31, 2020, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded net unrealized gains of $103 million and $25 million for the three months ended September 30, 2021 and 2020, respectively, and $728 million and $47 million for the nine months ended September 30, 2021 and 2020, respectively. Unrealized losses including any impairments were not significant for any of the three and nine months ended September 30, 2021 and 2020. Beginning in January 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $347 million as of September 30, 2021 and December 31, 2020, respectively. In addition, we also have certain equity investments measured at fair value using the net asset value practical expedient. Such investments were immaterial as of both September 30, 2021 and December 31, 2020. |
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. |
Loans and Card Member Receiva_2
Loans and Card Member Receivables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Card Member receivables segment and other loans detail | Card Member loans by segment and Other loans as of September 30, 2021 and December 31, 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group (a) $ 61,625 $ 60,084 Global Commercial Services 15,401 13,289 Card Member loans 77,026 73,373 Less: Reserves for credit losses 3,489 5,344 Card Member loans, net $ 73,537 $ 68,029 Other loans, net (b) $ 2,349 $ 2,614 (a) Includes approximately $24.7 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of September 30, 2021 and December 31, 2020, respectively. (b) Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.1 billion and $0.6 billion of gross PPP loans outstanding as of September 30, 2021 and December 31, 2020, respectively. Other loans are presented net of reserves for credit losses of $66 million and $238 million as of September 30, 2021 and December 31, 2020, respectively. Card Member receivables by segment as of September 30, 2021 and December 31, 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group $ 19,499 $ 18,685 Global Commercial Services (a) 29,259 25,016 Card Member receivables 48,758 43,701 Less: Reserves for credit losses 30 267 Card Member receivables, net $ 48,728 $ 43,434 |
Aging of Card Member loans and receivables | The following table presents the aging of Card Member loans and receivables as of September 30, 2021 and December 31, 2020: 2021 (Millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 61,178 $ 144 $ 100 $ 203 $ 61,625 Global Commercial Services Global Small Business Services 15,272 29 19 29 15,349 Global Corporate Payments (a) (b) (b) (b) — 52 Card Member Receivables: Global Consumer Services Group 19,400 38 22 39 19,499 Global Commercial Services Global Small Business Services $ 16,684 $ 42 $ 24 $ 31 $ 16,781 Global Corporate Payments (a) (b) (b) (b) $ 35 $ 12,478 2020 (Millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 59,442 $ 177 $ 148 $ 317 $ 60,084 Global Commercial Services Global Small Business Services 13,132 27 20 47 13,226 Global Corporate Payments (a) (b) (b) (b) — 63 Card Member Receivables: Global Consumer Services Group 18,570 33 26 56 18,685 Global Commercial Services Global Small Business Services $ 14,023 $ 37 $ 21 $ 38 $ 14,119 Global Corporate Payments (a) (b) (b) (b) $ 60 $ 10,897 (a) Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. 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 nine months ended September 30: 2021 2020 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Principal Only (a) Principal, Interest & Fees (a) 30+ Days Past Due as a % of Total Card Member Loans: Global Consumer Services Group 1.1 % 1.4 % 0.7 % 2.7 % 3.2 % 1.2 % Global Small Business Services 0.7 % 0.8 % 0.5 % 2.1 % 2.4 % 1.1 % Card Member Receivables: Global Consumer Services Group 0.3 % 0.4 % 0.5 % 2.0 % 2.2 % 0.8 % Global Small Business Services 0.3 % 0.4 % 0.6 % 2.3 % 2.6 % 1.0 % Global Corporate Payments (d) (b) (0.1) % (c) (b) 2.2 % (c) (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, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (b) Net write-off rate based on principal losses only is not available due to system constraints. (c) For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 0.3% and 0.6% as of September 30, 2021 and 2020, respectively. (d) The net write-off rate for the current year includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year. |
Impaired Card Member loans and receivables | The following tables provide additional information with respect to our impaired loans and receivables as of September 30, 2021 and December 31, 2020: As of September 30, 2021 Accounts Classified as a TDR (c) 2021 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 134 $ 77 $ 845 $ 891 $ 1,947 $ 491 Global Commercial Services 14 15 209 299 537 165 Card Member Receivables: Global Consumer Services Group — — 138 101 239 24 Global Commercial Services — — 254 265 519 46 Other Loans (f) 1 — 97 3 101 9 Total $ 149 $ 92 $ 1,543 $ 1,559 $ 3,343 $ 735 As of December 31, 2020 Accounts Classified as a TDR (c) 2020 (Millions) Over 90 days Past Due & Accruing Interest (a) Non- Accruals (b) In Program (d) Out of Program (e) Total Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 203 $ 146 $ 1,586 $ 248 $ 2,183 $ 782 Global Commercial Services 21 29 478 67 595 285 Card Member Receivables: Global Consumer Services Group — — 240 34 274 60 Global Commercial Services — — 534 75 609 139 Other Loans (f) 2 1 248 6 257 80 Total $ 226 $ 176 $ 3,086 $ 430 $ 3,918 $ 1,346 (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 loans classified as a TDR. (b) Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs. (c) Accounts classified as a TDR include $32 million and $32 million that are over 90 days past due and accruing interest as of September 30, 2021 and December 31, 2020, respectively, and $17 million and $11 million that are non-accruals as of September 30, 2021 and December 31, 2020, respectively. (d) In Program TDRs include accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $1,413 million and $316 million of accounts that have successfully completed a modification program and $146 million and $114 million of accounts that were not in compliance with the terms of the modification programs as of September 30, 2021 and December 31, 2020, respectively. (f) Other loans primarily represent consumer and commercial non-card financing products. |
Troubled debt restructurings | The following tables provide additional information with respect to loans and receivables that entered a financial relief program and were modified as TDRs during the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended Number of Account Balances (millions) (a) Average Interest Average Payment Number of Account Balances (millions) (a) Average Interest Average Payment Troubled Debt Restructurings: Card Member Loans 26 $ 177 13 (b) 87 $ 636 13 (b) Card Member Receivables 5 114 (c) 17 16 314 (c) 18 Other Loans (d) 1 2 3 17 3 $ 12 3 16 Total 32 $ 293 106 $ 962 Three Months Ended Nine Months Ended Number of Account Balances (millions) (a) Average Interest Average Payment Number of Account Balances (millions) (a) Average Interest Average Payment Troubled Debt Restructurings: Card Member Loans 76 $ 649 14 (b) 216 $ 1,947 14 (b) Card Member Receivables 13 231 (c) 18 38 1,049 (c) 19 Other Loans (d) 3 $ 165 3 17 8 $ 319 3 16 Total 92 $ 1,045 262 $ 3,315 (a) Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on 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 tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. Three Months Ended Nine Months Ended Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Number of Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 4 $ 32 20 $ 148 Card Member Receivables 1 10 5 48 Other Loans (b) 1 1 3 9 Total 6 $ 43 28 $ 205 Three Months Ended Nine Months Ended Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Number of Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 4 $ 32 11 $ 84 Card Member Receivables 1 16 3 34 Other Loans (b) 1 1 2 $ 2 Total 6 $ 49 16 $ 120 (a) The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables. (b) Other loans primarily represent consumer and commercial non-card financing products. |
Reserves for Credit Losses (Tab
Reserves for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Schedule of Key Variables in Macroeconomic Scenarios Utilized for Computation of Reserves for Credit Losses | The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses: U.S. Unemployment Rate U.S. GDP Growth (Contraction) (a) September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Third quarter of 2021 5% 7% - 11% 8% 3% - (3)% Fourth quarter of 2021 5% - 7% 7% - 11% 6% - (4)% 6% - (2)% Fourth quarter of 2022 4% - 9% 6% - 12% 2% - 1% 4% - 3% Fourth quarter of 2023 3% - 7% 4% -10% 4% - 3% 5% - 3% (a) Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates. |
Card Member Loans | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Schedule of Changes in Card Member Loans and Receivables | The following table presents changes in the Card Member loans reserve for credit losses for the three and nine months ended September 30: Three Months Ended September 30, Nine Months Ended September 30, (Millions) 2021 2020 2021 2020 Beginning Balance $ 3,835 $ 5,628 $ 5,344 $ 4,027 Provisions (a) (177) 571 (1,146) 3,416 Net write-offs (b) Principal (118) (432) (544) (1,449) Interest and fees (43) (91) (164) (301) Other (c) (8) 12 (1) (5) Ending Balance $ 3,489 $ 5,688 $ 3,489 $ 5,688 (a) Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Principal write-offs are presented less recoveries of $167 million and $142 million for the three months ended September 30, 2021 and 2020, respectively, and $507 million and $421 million for the nine months ended September 30, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(36) million and $(35) million for the three months ended September 30, 2021 and 2020, respectively, and $(124) million and $(98) million for the nine months ended September 30, 2021 and 2020, respectively. (c) Primarily includes foreign currency translation adjustments of $(8) million and $13 million for the three months ended September 30, 2021 and 2020, respectively, and $(2) million and $(4) million for the nine months ended September 30, 2021 and 2020, respectively. |
Card Member Receivables | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Schedule of Changes in Card Member Loans and Receivables | The following table presents changes in the Card Member receivables reserve for credit losses for the three and nine months ended September 30: Three Months Ended September 30, Nine Months Ended September 30, (Millions) 2021 2020 2021 2020 Beginning Balance $ 73 $ 519 $ 267 $ 126 Provisions (a) (12) 117 (147) 1,069 Net write-offs (b) (32) (219) (89) (776) Other (c) 1 5 (1) 3 Ending Balance $ 30 $ 422 $ 30 $ 422 (a) Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (b) Net write-offs are presented less recoveries of $79 million and $103 million for the three months ended September 30, 2021 and 2020, respectively, and $303 million and $283 million for the nine months ended September 30, 2021 and 2020, respectively. Amounts include net (write-offs) recoveries from TDRs of $(15) million and $(15) million for the three months ended September 30, 2021 and 2020, respectively, and $(51) million and $(31) million for the nine months ended September 30, 2021 and 2020, respectively. (c) Primarily includes foreign currency translation adjustments of nil and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $(1) million and $2 million for the nine months ended September 30, 2021 and 2020, respectively. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available for sale securities by type | The following is a summary of investment securities as of September 30, 2021 and December 31, 2020: 2021 2020 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 102 $ 5 $ (1) $ 106 $ 172 $ 7 $ — $ 179 U.S. Government agency obligations 6 — — 6 7 — — 7 U.S. Government treasury obligations 8,718 39 — 8,757 20,655 76 — 20,731 Mortgage-backed securities (a) 19 2 — 21 28 2 — 30 Foreign government bonds and obligations 556 — — 556 581 — — 581 Other (b) 41 — — 41 22 — — 22 Equity securities (c)(d) 58 46 (2) 102 56 27 (2) 81 Total $ 9,500 $ 92 $ (3) $ 9,589 $ 21,521 $ 112 $ (2) $ 21,631 (a) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (b) Represents investments in Corporate debt securities and debt securities issued by Community Development Financial Institutions. (c) Equity securities comprise investments in common stock, exchange-traded funds and mutual funds. (d) During the third quarter of 2021, certain equity securities were reclassified from Other assets to Investment securities following the completion of initial public offerings by the issuers of the securities. The investments had a fair value of $51 million with an associated cost basis of $7 million as of September 30, 2021. The gross unrealized gains amount includes $5 million that was recognized during 2018. |
Contractual maturities of investment securities | Contractual maturities for investment securities with stated maturities as of September 30, 2021 were as follows: (Millions) Cost Estimated Due within 1 year $ 8,453 $ 8,460 Due after 1 year but within 5 years 879 909 Due after 5 years but within 10 years 35 41 Due after 10 years 75 77 Total $ 9,442 $ 9,487 |
Customer Deposits (Tables)
Customer Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Deposits by component alternative | As of September 30, 2021 and December 31, 2020, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2021 2020 U.S.: Interest-bearing $ 83,299 $ 85,583 Non-interest-bearing (includes Card Member credit balances of: 2021, $467; 2020, $576) 489 599 Non-U.S.: Interest-bearing 19 19 Non-interest-bearing (includes Card Member credit balances of: 2021, $515; 2020, $671) 519 674 Total customer deposits $ 84,326 $ 86,875 |
Deposits by type | Customer deposits by deposit type as of September 30, 2021 and December 31, 2020 were as follows: (Millions) 2021 2020 U.S. retail deposits: Savings accounts – Direct $ 65,721 $ 63,512 Certificates of deposit: Direct 1,665 2,440 Third-party (brokered) 3,274 5,561 Sweep accounts – Third-party (brokered) 12,637 14,070 Other deposits: U.S. deposits 24 23 Non-U.S. deposits 23 22 Card Member credit balances ― U.S. and non-U.S. 982 1,247 Total customer deposits $ 84,326 $ 86,875 |
Time deposits by maturity | The scheduled maturities of certificates of deposit as of September 30, 2021 were as follows: (Millions) U.S. Non-U.S. Total 2021 $ 567 $ 2 $ 569 2022 3,123 5 3,128 2023 738 — 738 2024 284 — 284 2025 211 — 211 After 5 years 16 — 16 Total $ 4,939 $ 7 $ 4,946 |
Time deposits $250,000 or more | As of September 30, 2021 and December 31, 2020, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2021 2020 U.S. $ 627 $ 930 Non-U.S. 1 1 Total $ 628 $ 931 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020: Other Assets Fair Value Other Liabilities Fair Value (Millions) 2021 2020 2021 2020 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 308 $ 500 $ — $ — Net investment hedges - Foreign exchange contracts 102 24 47 474 Total derivatives designated as hedging instruments 410 524 47 474 Derivatives not designated as hedging instruments: Foreign exchange contracts 121 105 72 228 Total derivatives, gross 531 629 119 702 Derivative asset and derivative liability netting (b) (74) (98) (74) (98) Cash collateral netting (c) (310) (500) (3) (16) Total derivatives, net $ 147 $ 31 $ 42 $ 588 (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. |
Effect of fair value hedges on results of operations | The following table presents the gains and losses recognized in Interest expense on the Consolidated Statements of Income associated with the fair value hedges of our fixed-rate long-term debt for the three and nine months ended September 30: Gains (losses) Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Fixed-rate long-term debt $ 59 $ 96 $ 257 $ (497) Derivatives designated as hedging instruments (58) (97) (257) 504 Total $ 1 $ (1) $ — $ 7 |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 of September 30, 2021 and December 31, 2020: 2021 2020 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 102 $ 101 $ 1 $ — $ 81 $ 80 $ 1 $ — Debt securities (b) 9,487 — 9,462 25 21,550 — 21,550 — Derivatives, gross (a) 531 — 531 — 629 — 629 — Total Assets 10,120 101 9,994 25 22,260 80 22,180 — Liabilities: Derivatives, gross (a) 119 — 119 — 702 — 702 — Total Liabilities $ 119 $ — $ 119 $ — $ 702 $ — $ 702 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 8 for the fair values of derivative assets and liabilities on a further disaggregated basis. (b) Level 3 fair value amount represents investments in debt securities issued by Community Development Financial Institutions. |
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 September 30, 2021 and December 31, 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2021 and December 31, 2020, 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. Carrying Corresponding Fair Value Amount 2021 (Billions) Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 28 $ 28 $ 26 $ 2 $ — Other financial assets (b) 51 51 — 51 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 76 79 — — 79 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 103 103 — 103 — Financial liabilities carried at other than fair value Certificates of deposit (d) 5 5 — 5 — Long-term debt (c) $ 34 $ 36 $ — $ 36 $ — Carrying Corresponding Fair Value Amount 2020 (Billions) Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or approximate fair value Cash and cash equivalents (a) $ 33 $ 33 $ 31 $ 2 $ — Other financial assets (b) 46 46 — 46 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 71 75 — — 75 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 101 101 — 101 — Financial liabilities carried at other than fair value Certificates of deposit (d) 8 8 — 8 — Long-term debt (c) $ 43 $ 45 $ — $ 45 $ — (a) Level 2 fair value amounts reflect time deposits and short-term investments. (b) Balances include Card Member receivables (including fair values of Card Member receivables of $5.1 billion and $4.2 billion held by a consolidated VIE as of September 30, 2021 and December 31, 2020, respectively), other receivables and other miscellaneous assets. (c) Balances include amounts held by a consolidated VIE for which the fair values of Card Member loans were $24.7 billion and $25.8 billion as of September 30, 2021 and December 31, 2020, respectively, and the fair values of Long-term debt were $9.2 billion and $13.0 billion as of September 30, 2021 and December 31, 2020, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance Sheets. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of comprehensive income (loss), net of tax | Changes in each component for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 (Millions), net of tax Net Unrealized Foreign Currency Net Unrealized Accumulated Other Balances as of June 30, 2021 $ 42 $ (2,227) $ (696) $ (2,881) Net unrealized losses (8) — — (8) Net translation on investments in foreign operations — (238) — (238) Net hedges of investments in foreign operations — 155 — 155 Pension and other postretirement benefits — — 9 9 Net change in accumulated other comprehensive income (loss) (8) (83) 9 (82) Balances as of September 30, 2021 $ 34 $ (2,310) $ (687) $ (2,963) Nine Months Ended September 30, 2021 (Millions), net of tax Net Unrealized Foreign Currency Net Unrealized Accumulated Other Balances as of December 31, 2020 $ 65 $ (2,229) $ (731) $ (2,895) Net unrealized losses (31) — — (31) Net translation on investments in foreign operations — (134) — (134) Net hedges of investments in foreign operations — 53 — 53 Pension and other postretirement benefits — — 44 44 Net change in accumulated other comprehensive income (loss) (31) (81) 44 (68) Balances as of September 30, 2021 $ 34 $ (2,310) $ (687) $ (2,963) Three Months Ended September 30, 2020 (Millions), net of tax Net Unrealized Gains (Losses) on Debt Securities Foreign Currency Net Unrealized Accumulated Other Comprehensive Income (Loss) Balances as of June 30, 2020 $ 85 $ (2,388) $ (608) $ (2,911) Net unrealized losses (9) — — (9) Net translation on investments in foreign operations — 210 — 210 Net hedges of investments in foreign operations — (170) — (170) Pension and other postretirement benefits — — 8 8 Net change in accumulated other comprehensive income (loss) (9) 40 8 39 Balances as of September 30, 2020 $ 76 $ (2,348) $ (600) $ (2,872) Nine Months Ended September 30, 2020 (Millions), net of tax Net Unrealized Gains (Losses) on Debt Securities Foreign Currency Net Unrealized Accumulated Other Comprehensive Income (Loss) Balances as of December 31, 2019 $ 33 $ (2,189) $ (581) $ (2,737) Net unrealized gains 43 — — 43 Decrease due to amounts reclassified into earnings — (3) — (3) Net translation on investments in foreign operations — (379) — (379) Net hedges of investments in foreign operations — 223 — 223 Pension and other postretirement benefits — — (19) (19) Net change in accumulated other comprehensive income (loss) 43 (159) (19) (135) Balances as of September 30, 2020 $ 76 $ (2,348) $ (600) $ (2,872) |
AOCI income tax effect | The following table shows the tax impact for the three and nine months ended September 30 for the changes in each component of AOCI presented above: Tax expense (benefit) Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Net unrealized (losses) gains on debt securities $ (3) $ (3) $ (9) $ 13 Net translation on investments in foreign operations (2) (14) 3 10 Net hedges of investments in foreign operations 47 (57) 12 67 Pension and other postretirement benefits 5 (1) 18 10 Total tax impact $ 47 $ (75) $ 24 $ 100 |
Other Fees and Commissions an_2
Other Fees and Commissions and Other Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Fees and Commissions and Other Expenses [Abstract] | |
Other commissions and fees | The following is a detail of Other fees and commissions for the three and nine months ended September 30: Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Fees charged to Card Members: Delinquency fees $ 166 $ 159 $ 460 $ 615 Foreign currency conversion fee revenue 142 86 347 336 Other customer fees: Loyalty coalition-related fees 123 112 368 309 Travel commissions and fees 74 19 164 84 Service fees and other (a) 127 102 373 303 Total Other fees and commissions $ 632 $ 478 $ 1,712 $ 1,647 (a) Other includes Membership Rewards program fees that are not related to contracts with customers. |
Other net expense | The following is a detail of Other expenses for the three and nine months ended September 30: Three Months Ended Nine Months Ended (Millions) 2021 2020 2021 2020 Data processing and equipment (a) $ 613 $ 577 $ 1,772 $ 1,690 Professional services 490 421 1,351 1,266 Net unrealized and realized gains on Amex Ventures equity investments (142) (66) (773) (116) Other (b) 257 297 745 908 Total Other expenses $ 1,218 $ 1,229 $ 3,095 $ 3,748 (a) Effective for the first quarter of 2021, we changed the expense category name from Occupancy and equipment to Data processing and equipment to better reflect the nature and components of the expense. (b) Other primarily includes general operating expenses, communication expenses, non-income taxes, Card Member and merchant-related fraud losses, foreign currency-related gains and losses and litigation expenses. |
Earnings Per Common Share (EP_2
Earnings Per Common Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the three and nine months ended September 30 were as follows: Three Months Ended Nine Months Ended (Millions, except per share amounts) 2021 2020 2021 2020 Numerator: Basic and diluted: Net income $ 1,826 $ 1,073 $ 6,341 $ 1,697 Preferred dividends (20) (16) (49) (65) Equity-related adjustment (a) (9) — (9) — Net income available to common shareholders $ 1,797 $ 1,057 $ 6,283 $ 1,632 Earnings allocated to participating share awards (b) (14) (7) (45) (10) Net income attributable to common shareholders $ 1,783 $ 1,050 $ 6,238 $ 1,622 Denominator: (b) Basic: Weighted-average common stock 786 804 796 805 Add: Weighted-average stock options (c) 1 1 1 1 Diluted 787 805 797 806 Basic EPS $ 2.27 $ 1.31 $ 7.84 $ 2.01 Diluted EPS $ 2.27 $ 1.30 $ 7.82 $ 2.01 (a) Represents the difference between the redemption value and carrying value of the Series C preferred shares, which were redeemed on September 15, 2021. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the Series C preferred shares. (b) 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. (c) The dilutive effect of unexercised stock options excludes from the computation of EPS 0.01 million and 0.88 million of options for the three months ended September 30, 2021 and 2020, respectively, and 0.01 million and 0.61 million of options for the nine months ended September 30, 2021 and 2020, respectively, because inclusion of the options would have been anti-dilutive. |
Preferred Shares (Tables)
Preferred Shares (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of preferred shares issued and outstanding | The following table summarizes our preferred shares issued and outstanding as of September 30, 2021: Series B Series D Issuance Date November 10, 2014 August 3, 2021 Securities issued 750 Preferred shares; represented by 750,000 depositary shares 1,600 Preferred shares; represented by 1,600,000 depositary shares Dividend rate per annum 5.20% through November 14, 2019; 3-month LIBOR plus 3.428% thereafter 3.55% through September 14, 2026; resets September 15, 2026 and every subsequent 5-year anniversary at 5-year Treasury rate plus 2.854% Dividend payment date Semi-annual beginning May 15, 2015 and, quarterly beginning February 15, 2020 Quarterly beginning September 15, 2021 Earliest redemption date November 15, 2019 September 15, 2026 Aggregate liquidation preference $750 million $1,600 million Carrying value (a) $742 million $1,584 million (a) Carrying value, presented in the Statements of Shareholders' Equity, represents the issuance proceeds, net of underwriting fees and offering costs. |
Reportable Operating Segments (
Reportable Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 three and nine months ended September 30: Three Months Ended September 30, 2021 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 4,699 $ 2,978 $ 1,280 $ (23) $ 8,934 Revenue from contracts with customers (b) 3,392 2,556 1,198 (7) 7,139 Interest income 1,879 378 4 40 2,301 Interest expense 174 111 (24) 46 307 Total revenues net of interest expense 6,404 3,245 1,308 (29) 10,928 Pretax segment income (loss) $ 1,488 $ 718 $ 529 $ (285) $ 2,450 Total assets (billions) $ 92 $ 48 $ 14 $ 30 $ 184 Nine Months Ended September 30, 2021 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 12,982 $ 8,225 $ 3,545 $ (159) $ 24,593 Revenue from contracts with customers (b) 9,229 7,019 3,327 (20) 19,555 Interest income 5,436 1,059 12 126 6,633 Interest expense 536 338 (61) 178 991 Total revenues net of interest expense 17,882 8,946 3,618 (211) 30,235 Pretax segment income (loss) $ 5,525 $ 2,222 $ 1,441 $ (805) $ 8,383 Total assets (billions) $ 92 $ 48 $ 14 $ 30 $ 184 Three Months Ended September 30, 2020 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 3,632 $ 2,327 $ 997 $ (79) $ 6,877 Revenue from contracts with customers (b) 2,476 1,969 941 (6) 5,380 Interest income 1,916 351 4 53 2,324 Interest expense 244 139 (19) 86 450 Total revenues net of interest expense 5,304 2,539 1,020 (112) 8,751 Pretax segment income (loss) $ 1,125 $ 272 $ 326 $ (359) $ 1,364 Total assets (billions) $ 82 $ 40 $ 12 $ 53 $ 187 Nine Months Ended September 30, 2020 (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated Total non-interest revenues $ 10,662 $ 7,129 $ 3,057 $ (200) $ 20,648 Revenue from contracts with customers (b) 7,205 5,993 2,857 (22) 16,033 Interest income 6,298 1,252 14 232 7,796 Interest expense 844 493 (61) 432 1,708 Total revenues net of interest expense 16,116 7,888 3,132 (400) 26,736 Pretax segment income (loss) $ 2,227 $ 269 $ 1,039 $ (1,097) $ 2,438 Total assets (billions) $ 82 $ 40 $ 12 $ 53 $ 187 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes discount revenue, certain other fees and commissions and other revenues from customers. |
Basis of Presentation (Details
Basis of Presentation (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax provision | $ 624 | $ 291 | $ 2,042 | $ 741 | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2014-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax provision | $ 55 |
Loans and Card Member Receiva_3
Loans and Card Member Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Card Member Loans | ||||||
Loans segment information | ||||||
Financing receivables, gross | $ 77,026 | $ 73,373 | ||||
Less: Reserves for credit losses | 3,489 | $ 3,835 | 5,344 | $ 5,688 | $ 5,628 | $ 4,027 |
Financing receivables, net | 73,537 | 68,029 | ||||
Other Loans | ||||||
Loans segment information | ||||||
Less: Reserves for credit losses | 66 | 238 | ||||
Financing receivables, net | 2,349 | 2,614 | ||||
Card Member Receivables | ||||||
Loans segment information | ||||||
Financing receivables, gross | 48,758 | 43,701 | ||||
Less: Reserves for credit losses | 30 | $ 73 | 267 | $ 422 | $ 519 | $ 126 |
Financing receivables, net | 48,728 | 43,434 | ||||
PPP Loans | Other Loans | ||||||
Loans segment information | ||||||
Financing receivables, gross | 100 | 600 | ||||
Variable Interest Entity, Primary Beneficiary | Card Member Loans | ||||||
Loans segment information | ||||||
Financing receivables, gross | 24,675 | 25,908 | ||||
Variable Interest Entity, Primary Beneficiary | Card Member Receivables | ||||||
Loans segment information | ||||||
Financing receivables, gross | 5,101 | 4,296 | ||||
GCSG | Card Member Loans | ||||||
Loans segment information | ||||||
Financing receivables, gross | 61,625 | 60,084 | ||||
GCSG | Card Member Receivables | ||||||
Loans segment information | ||||||
Financing receivables, gross | 19,499 | 18,685 | ||||
GCSG | Variable Interest Entity, Primary Beneficiary | Card Member Loans | ||||||
Loans segment information | ||||||
Financing receivables, gross | 24,700 | 25,900 | ||||
GCS | Card Member Loans | ||||||
Loans segment information | ||||||
Financing receivables, gross | 15,401 | 13,289 | ||||
GCS | Card Member Receivables | ||||||
Loans segment information | ||||||
Financing receivables, gross | 29,259 | 25,016 | ||||
GCS | Variable Interest Entity, Primary Beneficiary | Card Member Receivables | ||||||
Loans segment information | ||||||
Financing receivables, gross | $ 5,100 | $ 4,300 |
Loans and Card Member Receiva_4
Loans and Card Member Receivables (Details 1) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Card Member Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | $ 77,026 | $ 73,373 |
Card Member Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 48,758 | 43,701 |
GCSG | Card Member Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 61,625 | 60,084 |
GCSG | Card Member Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 19,499 | 18,685 |
GCSG | Current | Card Member Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 61,178 | 59,442 |
GCSG | Current | Card Member Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 19,400 | 18,570 |
GCSG | 30 to 59 Days Past Due | Card Member Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 144 | 177 |
GCSG | 30 to 59 Days Past Due | Card Member Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 38 | 33 |
GCSG | 60 to 89 Days Past Due | Card Member Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 100 | 148 |
GCSG | 60 to 89 Days Past Due | Card Member Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 22 | 26 |
GCSG | 90+ Days Past Due | Card Member Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 203 | 317 |
GCSG | 90+ Days Past Due | Card Member Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 39 | 56 |
GCS | Card Member Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 15,401 | 13,289 |
GCS | Card Member Loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 15,349 | 13,226 |
GCS | Card Member Loans | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 52 | 63 |
GCS | Card Member Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 29,259 | 25,016 |
GCS | Card Member Receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 16,781 | 14,119 |
GCS | Card Member Receivables | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 12,478 | 10,897 |
GCS | Current | Card Member Loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 15,272 | 13,132 |
GCS | Current | Card Member Receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 16,684 | 14,023 |
GCS | 30 to 59 Days Past Due | Card Member Loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 29 | 27 |
GCS | 30 to 59 Days Past Due | Card Member Receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 42 | 37 |
GCS | 60 to 89 Days Past Due | Card Member Loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 19 | 20 |
GCS | 60 to 89 Days Past Due | Card Member Receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 24 | 21 |
GCS | 90+ Days Past Due | Card Member Loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 29 | 47 |
GCS | 90+ Days Past Due | Card Member Loans | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 0 | 0 |
GCS | 90+ Days Past Due | Card Member Receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 31 | 38 |
GCS | 90+ Days Past Due | Card Member Receivables | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | $ 35 | $ 60 |
Loans and Card Member Receiva_5
Loans and Card Member Receivables (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Credit Quality Indicator for Loans and Receivables | ||||
90+ Days Past Billing as a % of total | 0.30% | 0.60% | 0.30% | 0.60% |
Card Member Receivables | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net write-offs (recovery) | $ 32 | $ 219 | $ 89 | $ 776 |
GCSG | Card Member Loans | ||||
Credit Quality Indicator for Loans and Receivables | ||||
30+ Days Past Due as a % of Total | 0.70% | 1.20% | 0.70% | 1.20% |
GCSG | Card Member Loans | Net Write-Off Rate - Principal Only | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 1.10% | 2.70% | ||
GCSG | Card Member Loans | Net Write-Off Rate Principal Interest, and Fees | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 1.40% | 3.20% | ||
GCSG | Card Member Receivables | ||||
Credit Quality Indicator for Loans and Receivables | ||||
30+ Days Past Due as a % of Total | 0.50% | 0.80% | 0.50% | 0.80% |
GCSG | Card Member Receivables | Net Write-Off Rate - Principal Only | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 0.30% | 2.00% | ||
GCSG | Card Member Receivables | Net Write-Off Rate Principal Interest, and Fees | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 0.40% | 2.20% | ||
GCS | Global Small Business Services | Card Member Loans | ||||
Credit Quality Indicator for Loans and Receivables | ||||
30+ Days Past Due as a % of Total | 0.50% | 1.10% | 0.50% | 1.10% |
GCS | Global Small Business Services | Card Member Loans | Net Write-Off Rate - Principal Only | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 0.70% | 2.10% | ||
GCS | Global Small Business Services | Card Member Loans | Net Write-Off Rate Principal Interest, and Fees | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 0.80% | 2.40% | ||
GCS | Global Small Business Services | Card Member Receivables | ||||
Credit Quality Indicator for Loans and Receivables | ||||
30+ Days Past Due as a % of Total | 0.60% | 1.00% | 0.60% | 1.00% |
GCS | Global Small Business Services | Card Member Receivables | Net Write-Off Rate - Principal Only | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 0.30% | 2.30% | ||
GCS | Global Small Business Services | Card Member Receivables | Net Write-Off Rate Principal Interest, and Fees | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | 0.40% | 2.60% | ||
GCS | Global Corporate Payments | Card Member Receivables | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net write-offs (recovery) | $ (37) | $ 53 | ||
GCS | Global Corporate Payments | Card Member Receivables | Net Write-Off Rate Principal Interest, and Fees | ||||
Credit Quality Indicator for Loans and Receivables | ||||
Net Write-Off Rate | (0.10%) | 2.20% |
Loans and Card Member Receiva_6
Loans and Card Member Receivables (Details 3) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | $ 149 | $ 226 |
Non-accrual loans | 92 | 176 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 1,543 | 3,086 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 1,559 | 430 |
Total impaired loans and receivables | 3,343 | 3,918 |
Reserve for Credit Losses - TDRs | 735 | 1,346 |
Accounts Receivable and Loans Textuals | ||
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 32 | 32 |
Total loans and receivables modified as a TDR, non-accrual | 17 | 11 |
Out of Program TDR accounts that completed modification programs | 1,413 | 316 |
Out of Program TDR accounts not in compliance with modification programs | 146 | 114 |
Other Loans | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 1 | 2 |
Non-accrual loans | 0 | 1 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 97 | 248 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 3 | 6 |
Total impaired loans and receivables | 101 | 257 |
Reserve for Credit Losses - TDRs | 9 | 80 |
GCSG | Card Member Loans | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 134 | 203 |
Non-accrual loans | 77 | 146 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 845 | 1,586 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 891 | 248 |
Total impaired loans and receivables | 1,947 | 2,183 |
Reserve for Credit Losses - TDRs | 491 | 782 |
GCSG | Card Member Receivables | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 138 | 240 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 101 | 34 |
Total impaired loans and receivables | 239 | 274 |
Reserve for Credit Losses - TDRs | 24 | 60 |
GCS | Card Member Loans | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 14 | 21 |
Non-accrual loans | 15 | 29 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 209 | 478 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 299 | 67 |
Total impaired loans and receivables | 537 | 595 |
Reserve for Credit Losses - TDRs | 165 | 285 |
GCS | Card Member Receivables | ||
Impaired loans and receivables | ||
Loans over 90 days past due and accruing interest | 0 | 0 |
Non-accrual loans | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 254 | 534 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 265 | 75 |
Total impaired loans and receivables | 519 | 609 |
Reserve for Credit Losses - TDRs | $ 46 | $ 139 |
Loans and Card Member Receiva_7
Loans and Card Member Receivables (Details 4) account in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 32 | 92 | 106 | 262 |
Account Balances | $ | $ 293 | $ 1,045 | $ 962 | $ 3,315 |
Card Member Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 26 | 76 | 87 | 216 |
Account Balances | $ | $ 177 | $ 649 | $ 636 | $ 1,947 |
Average Interest Rate Reduction (as a percentage) | 13.00% | 14.00% | 13.00% | 14.00% |
Card Member Receivables | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 5 | 13 | 16 | 38 |
Account Balances | $ | $ 114 | $ 231 | $ 314 | $ 1,049 |
Average Payment Term Extension (in months) | 17 months | 18 months | 18 months | 19 months |
Other Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 1 | 3 | 3 | 8 |
Account Balances | $ | $ 2 | $ 165 | $ 12 | $ 319 |
Average Interest Rate Reduction (as a percentage) | 3.00% | 3.00% | 3.00% | 3.00% |
Average Payment Term Extension (in months) | 17 months | 17 months | 16 months | 16 months |
Loans and Card Member Receiva_8
Loans and Card Member Receivables (Details 5) account in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | Sep. 30, 2021USD ($)account | Sep. 30, 2020USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 6 | 6 | 28 | 16 |
Aggregated Outstanding Balance Upon Default | $ | $ 43 | $ 49 | $ 205 | $ 120 |
Card Member Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 4 | 4 | 20 | 11 |
Aggregated Outstanding Balance Upon Default | $ | $ 32 | $ 32 | $ 148 | $ 84 |
Card Member Receivables | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 1 | 1 | 5 | 3 |
Aggregated Outstanding Balance Upon Default | $ | $ 10 | $ 16 | $ 48 | $ 34 |
Other Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Accounts | account | 1 | 1 | 3 | 2 |
Aggregated Outstanding Balance Upon Default | $ | $ 1 | $ 1 | $ 9 | $ 2 |
Reserves for Credit Losses (Det
Reserves for Credit Losses (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
U.S. Unemployment Rate | Third quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.05 | |
U.S. Unemployment Rate | Minimum | Third quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.07 | |
U.S. Unemployment Rate | Minimum | Fourth quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.05 | 0.07 |
U.S. Unemployment Rate | Minimum | Fourth quarter of 2022 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.04 | 0.06 |
U.S. Unemployment Rate | Minimum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | 0.04 |
U.S. Unemployment Rate | Maximum | Third quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.11 | |
U.S. Unemployment Rate | Maximum | Fourth quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.07 | 0.11 |
U.S. Unemployment Rate | Maximum | Fourth quarter of 2022 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.09 | 0.12 |
U.S. Unemployment Rate | Maximum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.07 | 0.10 |
U.S. GDP Growth (Contraction) | Third quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.08 | |
U.S. GDP Growth (Contraction) | Minimum | Third quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | |
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.06 | 0.06 |
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2022 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.02 | 0.04 |
U.S. GDP Growth (Contraction) | Minimum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.04 | 0.05 |
U.S. GDP Growth (Contraction) | Maximum | Third quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | (0.03) | |
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | (0.04) | (0.02) |
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2022 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.01 | 0.03 |
U.S. GDP Growth (Contraction) | Maximum | Fourth quarter of 2023 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.03 | 0.03 |
Reserves for Credit Losses (D_2
Reserves for Credit Losses (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reserve for Losses [Roll Forward] | ||||
Provisions | $ (191) | $ 665 | $ (1,472) | $ 4,841 |
Card Member Loans | ||||
Reserve for Losses [Roll Forward] | ||||
Beginning Balance | 3,835 | 5,628 | 5,344 | 4,027 |
Provisions | (177) | 571 | (1,146) | 3,416 |
Other | (8) | 12 | (1) | (5) |
Ending Balance | 3,489 | 5,688 | 3,489 | 5,688 |
Net (write-offs) recoveries from TDRs | (36) | (35) | (124) | (98) |
Foreign currency translation adjustments | (8) | 13 | (2) | (4) |
Card Member Loans | Principal | ||||
Reserve for Losses [Roll Forward] | ||||
Net write-offs | (118) | (432) | (544) | (1,449) |
Recoveries | 167 | 142 | 507 | 421 |
Card Member Loans | Interest and fees | ||||
Reserve for Losses [Roll Forward] | ||||
Net write-offs | $ (43) | $ (91) | $ (164) | $ (301) |
Reserves for Credit Losses (D_3
Reserves for Credit Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reserve for Losses [Roll Forward] | ||||
Provisions | $ (191) | $ 665 | $ (1,472) | $ 4,841 |
Card Member Receivables | ||||
Reserve for Losses [Roll Forward] | ||||
Beginning Balance | 73 | 519 | 267 | 126 |
Provisions | (12) | 117 | (147) | 1,069 |
Net write-offs | (32) | (219) | (89) | (776) |
Other | 1 | 5 | (1) | 3 |
Ending Balance | 30 | 422 | 30 | 422 |
Recoveries | 79 | 103 | 303 | 283 |
Net (write-offs) recoveries from TDRs | (15) | (15) | (51) | (31) |
Foreign currency translation adjustments | $ 0 | $ 3 | $ (1) | $ 2 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Accrued interest available-for-sale debt securities | $ 38 | $ 26 | |
Available-for-sale debt securities: | |||
Cost | 9,442 | ||
Estimated Fair Value | 9,487 | ||
Equity securities | |||
Cost | 58 | 56 | |
Gross Unrealized Gains | 46 | 27 | $ 5 |
Gross Unrealized Losses | (2) | (2) | |
Estimated Fair Value | 102 | 81 | |
Total Cost | 9,500 | 21,521 | |
Total Gross Unrealized Gains | 92 | 112 | |
Total Gross Unrealized Losses | (3) | (2) | |
Total Estimated Fair Value | 9,589 | 21,631 | |
Investment Securities | |||
Equity securities | |||
Cost | 7 | ||
Estimated Fair Value | 51 | ||
State and municipal obligations | |||
Available-for-sale debt securities: | |||
Cost | 102 | 172 | |
Gross Unrealized Gains | 5 | 7 | |
Gross Unrealized Losses | (1) | 0 | |
Estimated Fair Value | 106 | 179 | |
U.S. Government agency obligations | |||
Available-for-sale debt securities: | |||
Cost | 6 | 7 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 6 | 7 | |
U.S. Government treasury obligations | |||
Available-for-sale debt securities: | |||
Cost | 8,718 | 20,655 | |
Gross Unrealized Gains | 39 | 76 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 8,757 | 20,731 | |
Mortgage-backed securities | |||
Available-for-sale debt securities: | |||
Cost | 19 | 28 | |
Gross Unrealized Gains | 2 | 2 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 21 | 30 | |
Foreign government bonds and obligations | |||
Available-for-sale debt securities: | |||
Cost | 556 | 581 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 556 | 581 | |
Other | |||
Available-for-sale debt securities: | |||
Cost | 41 | 22 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | $ 41 | $ 22 |
Investment Securities (Details
Investment Securities (Details 1) - security | Sep. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities with gross unrealized losses | 0 | 0 |
Investment Securities (Detail_2
Investment Securities (Details 3) $ in Millions | Sep. 30, 2021USD ($) |
Cost | |
Due within 1 year | $ 8,453 |
Due after 1 year but within 5 years | 879 |
Due after 5 years but within 10 years | 35 |
Due after 10 years | 75 |
Total | 9,442 |
Estimated Fair Value | |
Due within 1 year | 8,460 |
Due after 1 year but within 5 years | 909 |
Due after 5 years but within 10 years | 41 |
Due after 10 years | 77 |
Total | $ 9,487 |
Asset Securitizations (Details)
Asset Securitizations (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Assets from Trusts [Line Items] | ||||
Restricted balances included in Cash and cash equivalents | $ 475 | $ 606 | $ 2,597 | $ 514 |
American Express Lending Trust | ||||
Assets from Trusts [Line Items] | ||||
Direct and Indirect ownership of variable interests | 15,800 | 13,400 | ||
Restricted balances included in Cash and cash equivalents | 25 | 47 | ||
American Express Charge Trust | ||||
Assets from Trusts [Line Items] | ||||
Direct and Indirect ownership of variable interests | 5,100 | 4,300 | ||
Restricted balances included in Cash and cash equivalents | $ 0 | $ 0 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
U.S.: | ||
Interest-bearing | $ 83,299 | $ 85,583 |
Non-interest-bearing (includes Card Member credit balances of: 2021, $467; 2020, $576) | 489 | 599 |
Non-U.S.: | ||
Interest-bearing | 19 | 19 |
Non-interest-bearing (includes Card Member credit balances of: 2021, $515; 2020, $671) | 519 | 674 |
Total customer deposits | 84,326 | 86,875 |
Card Member Credit Balances | ||
U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2021, $467; 2020, $576) | 467 | 576 |
Non-U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2021, $515; 2020, $671) | $ 515 | $ 671 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
U.S. retail deposits: | ||
Savings accounts – Direct | $ 65,721 | $ 63,512 |
Certificates of deposit: | ||
Direct | 1,665 | 2,440 |
Third-party (brokered) | 3,274 | 5,561 |
Sweep accounts – Third-party (brokered) | 12,637 | 14,070 |
Other deposits: | ||
U.S. deposits | 24 | 23 |
Non-U.S. deposits | 23 | 22 |
Card Member credit balances ― U.S. and non-U.S. | 982 | 1,247 |
Total customer deposits | $ 84,326 | $ 86,875 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Sep. 30, 2021USD ($) |
Time Deposits By Maturity | |
2021 | $ 569 |
2022 | 3,128 |
2023 | 738 |
2024 | 284 |
2025 | 211 |
After 5 years | 16 |
Total | 4,946 |
U.S. | |
Time Deposits By Maturity | |
2021 | 567 |
2022 | 3,123 |
2023 | 738 |
2024 | 284 |
2025 | 211 |
After 5 years | 16 |
Total | 4,939 |
Non-U.S. | |
Time Deposits By Maturity | |
2021 | 2 |
2022 | 5 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
After 5 years | 0 |
Total | $ 7 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $250,000 or More | $ 628 | $ 931 |
U.S. | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $250,000 or More | 627 | 930 |
Non-U.S. | ||
Time Deposits $250,000 Or More [Line Items] | ||
Time Deposits, $250,000 or More | $ 1 | $ 1 |
Contingencies (Details Textuals
Contingencies (Details Textuals) | Sep. 30, 2021USD ($) | Jan. 29, 2019state |
Minimum | ||
Loss Contingencies [Line Items] | ||
Current estimate of possible loss | $ 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Current estimate of possible loss | 210,000,000 | |
Exposure Associated with Card Member Purchases of Goods and Services | ||
Loss Contingencies [Line Items] | ||
Loss accrual | $ 18,000,000 | |
Violation Of Federal Antitrust Law And Consumer Laws Class Action Case | ||
Loss Contingencies [Line Items] | ||
Number of states with remaining claims under antitrust laws | state | 11 | |
Number of states with remaining claims under consumer protection laws | state | 6 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | $ 531 | $ 629 |
Total fair value of derivative liabilities | 119 | 702 |
Derivative asset and derivative liability netting, assets | (74) | (98) |
Derivative asset and derivative liability netting, liabilities | (74) | (98) |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 147 | 31 |
Cash collateral netting, assets | (310) | (500) |
Other Assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 410 | 524 |
Other Assets | Interest Rate Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 308 | 500 |
Other Assets | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives assets, net | 102 | 24 |
Other Assets | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative assets | 121 | 105 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, net | 42 | 588 |
Cash collateral netting, liabilities | (3) | (16) |
Other Liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | 47 | 474 |
Other Liabilities | Interest Rate Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, net | 0 | 0 |
Other Liabilities | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, net | 47 | 474 |
Other Liabilities | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total fair value of derivative liabilities | $ 72 | $ 228 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||||
Margin on interest rate swaps | $ 15,000,000 | $ 15,000,000 | $ 34,000,000 | ||
Carrying values of hedged liabilities | 13,200,000,000 | 13,200,000,000 | 16,400,000,000 | ||
Cumulative amount of fair value hedging adjustment | 365,000,000 | 365,000,000 | 622,000,000 | ||
Net decrease in interest expense on long term debt and other | 60,000,000 | $ 81,000,000 | 196,000,000 | $ 183,000,000 | |
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 16,800,000,000 | 16,800,000,000 | 14,400,000,000 | ||
Other Expense | |||||
Derivative [Line Items] | |||||
(Loss) gain in changes in fair value of derivatives not designated as hedges | (10,000,000) | 4,000,000 | (24,000,000) | 22,000,000 | |
Fair Value Hedging | Fixed-Rate Debt Obligations | |||||
Derivative [Line Items] | |||||
Fixed-rate debt obligations designated in fair value hedging relationships | 12,900,000,000 | 12,900,000,000 | 15,800,000,000 | ||
Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 11,400,000,000 | 11,400,000,000 | $ 10,500,000,000 | ||
Gain (loss) on net investment hedges, net of taxes | 155,000,000 | (170,000,000) | 53,000,000 | 223,000,000 | |
Reclassifications out of AOCI | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details 1) - Interest Expense - Interest Rate Contract - Fair Value Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fixed-rate long-term debt | $ 59 | $ 96 | $ 257 | $ (497) |
Derivatives designated as hedging instruments | (58) | (97) | (257) | 504 |
Total | $ 1 | $ (1) | $ 0 | $ 7 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Investment securities: | ||
Equity securities | $ 102 | $ 81 |
Debt securities | 9,487 | |
Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 102 | 81 |
Debt securities | 9,487 | 21,550 |
Derivatives, gross | 531 | 629 |
Total Assets | 10,120 | 22,260 |
Liabilities | ||
Derivatives, gross | 119 | 702 |
Total Liabilities | 119 | 702 |
Level 1 | Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 101 | 80 |
Debt securities | 0 | 0 |
Derivatives, gross | 0 | 0 |
Total Assets | 101 | 80 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities | 9,462 | 21,550 |
Derivatives, gross | 531 | 629 |
Total Assets | 9,994 | 22,180 |
Liabilities | ||
Derivatives, gross | 119 | 702 |
Total Liabilities | 119 | 702 |
Level 3 | Fair Value, Recurring | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities | 25 | 0 |
Derivatives, gross | 0 | 0 |
Total Assets | 25 | 0 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Card Member Receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | $ 48,758 | $ 43,701 |
Card Member Loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 77,026 | 73,373 |
Variable Interest Entity, Primary Beneficiary | Card Member Receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 5,101 | 4,296 |
Variable Interest Entity, Primary Beneficiary | Card Member Loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 24,675 | 25,908 |
Carrying Value | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 28,000 | 33,000 |
Other financial assets | 51,000 | 46,000 |
Financial assets carried at other than fair value | ||
Card Member and Other loans, less reserves | 76,000 | 71,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 103,000 | 101,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 5,000 | 8,000 |
Long-term debt | 34,000 | 43,000 |
Fair Values (Textuals) | ||
Long-term debt | 34,000 | 43,000 |
Corresponding Fair Value Amount | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 28,000 | 33,000 |
Other financial assets | 51,000 | 46,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 103,000 | 101,000 |
Corresponding Fair Value Amount | Variable Interest Entity, Primary Beneficiary | Card Member Receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 5,100 | 4,200 |
Corresponding Fair Value Amount | Level 1 | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 26,000 | 31,000 |
Other financial assets | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 |
Corresponding Fair Value Amount | Level 2 | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 2,000 | 2,000 |
Other financial assets | 51,000 | 46,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 103,000 | 101,000 |
Corresponding Fair Value Amount | Level 3 | ||
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 | ||
Financial assets carried at other than fair value | ||
Card Member and Other loans, less reserves | 79,000 | 75,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 5,000 | 8,000 |
Long-term debt | 36,000 | 45,000 |
Fair Values (Textuals) | ||
Long-term debt | 36,000 | 45,000 |
Portion at Other than Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | ||
Financial liabilities carried at other than fair value | ||
Long-term debt | 9,200 | 13,000 |
Fair Values (Textuals) | ||
Long-term debt | 9,200 | 13,000 |
Portion at Other than Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | Card Member Loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 24,700 | 25,800 |
Portion at Other than Fair Value Measurement | Level 1 | ||
Financial assets carried at other than fair value | ||
Card Member and Other loans, less reserves | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 0 | 0 |
Long-term debt | 0 | 0 |
Fair Values (Textuals) | ||
Long-term debt | 0 | 0 |
Portion at Other than Fair Value Measurement | Level 2 | ||
Financial assets carried at other than fair value | ||
Card Member and Other loans, less reserves | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 5,000 | 8,000 |
Long-term debt | 36,000 | 45,000 |
Fair Values (Textuals) | ||
Long-term debt | 36,000 | 45,000 |
Portion at Other than Fair Value Measurement | Level 3 | ||
Financial assets carried at other than fair value | ||
Card Member and Other loans, less reserves | 79,000 | 75,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 0 | 0 |
Long-term debt | 0 | 0 |
Fair Values (Textuals) | ||
Long-term debt | $ 0 | $ 0 |
Fair Values (Details Textuals)
Fair Values (Details Textuals) - Fair Value, Nonrecurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of equity securities without readily determinable fair values | $ 1,300 | $ 1,300 | $ 530 | ||
Net upward adjustments of equity securities without readily determinable fair values | 103 | $ 25 | 728 | $ 47 | |
Cumulative net unrealized gains for equity investments without readily determinable fair values | $ 1,100 | $ 1,100 | $ 347 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Guarantees [Abstract] | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 1,000 |
Amount of related liability | $ 25 | $ 24 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 25,539 | $ 21,062 | $ 22,984 | $ 23,071 |
Net change in accumulated other comprehensive income (loss) | (82) | 39 | (68) | (135) |
Ending Balance | 24,426 | 21,869 | 24,426 | 21,869 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||||
Total tax impact | 47 | (75) | 24 | 100 |
Decrease due to amounts reclassified into earnings | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Net change in accumulated other comprehensive income (loss) | 0 | 0 | 0 | (3) |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (2,881) | (2,911) | (2,895) | (2,737) |
Ending Balance | (2,963) | (2,872) | (2,963) | (2,872) |
Net Unrealized Gains (Losses) on Debt Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 42 | 85 | 65 | 33 |
Net change in accumulated other comprehensive income (loss) | (8) | (9) | (31) | 43 |
Ending Balance | 34 | 76 | 34 | 76 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||||
Total tax impact | (3) | (3) | (9) | 13 |
Foreign Currency Translation Adjustment Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (2,227) | (2,388) | (2,229) | (2,189) |
Net change in accumulated other comprehensive income (loss) | (83) | 40 | (81) | (159) |
Ending Balance | (2,310) | (2,348) | (2,310) | (2,348) |
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (696) | (608) | (731) | (581) |
Net change in accumulated other comprehensive income (loss) | 9 | 8 | 44 | (19) |
Ending Balance | (687) | (600) | (687) | (600) |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||||
Total tax impact | 5 | (1) | 18 | 10 |
Net translation on investments in foreign operations | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Net change in accumulated other comprehensive income (loss) | (238) | 210 | (134) | (379) |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||||
Total tax impact | (2) | (14) | 3 | 10 |
Net hedges of investments in foreign operations | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Net change in accumulated other comprehensive income (loss) | 155 | (170) | 53 | 223 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | ||||
Total tax impact | $ 47 | $ (57) | $ 12 | $ 67 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Loss) (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ (82) | $ 39 | $ (68) | $ (135) |
Decrease due to amounts reclassified into earnings | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ (3) |
Other Fees and Commissions an_3
Other Fees and Commissions and Other Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fees charged to Card Members: | ||||
Delinquency fees | $ 166 | $ 159 | $ 460 | $ 615 |
Foreign currency conversion fee revenue | 142 | 86 | 347 | 336 |
Other customer fees: | ||||
Loyalty coalition-related fees | 123 | 112 | 368 | 309 |
Travel commissions and fees | 74 | 19 | 164 | 84 |
Service fees and other | 127 | 102 | 373 | 303 |
Other fees and commissions | ||||
Other customer fees: | ||||
Total Other fees and commissions | $ 632 | $ 478 | $ 1,712 | $ 1,647 |
Other Fees and Commissions an_4
Other Fees and Commissions and Other Expenses (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Fees and Commissions and Other Expenses [Abstract] | ||||
Data processing and equipment | $ 613 | $ 577 | $ 1,772 | $ 1,690 |
Professional services | 490 | 421 | 1,351 | 1,266 |
Net unrealized and realized gains on Amex Ventures equity investments | (142) | (66) | (773) | (116) |
Other | 257 | 297 | 745 | 908 |
Total Other expenses | $ 1,218 | $ 1,229 | $ 3,095 | $ 3,748 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Actual tax rates | 25.50% | 21.30% | 24.40% | 30.40% |
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | $ 144 | $ 144 | ||
Unrecognized tax benefits that, if recognized, could impact effective tax rate | $ 114 | $ 114 |
Earnings Per Common Share (EP_3
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Sep. 15, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||
Basic and diluted: | |||||||||
Net income | $ 1,826 | $ 1,073 | $ 6,341 | $ 1,697 | |||||
Preferred dividends | (20) | (16) | (49) | (65) | |||||
Equity-related adjustment | $ (9) | (9) | 0 | (9) | 0 | ||||
Net income available to common shareholders | 1,797 | 1,057 | 6,283 | 1,632 | |||||
Earnings allocated to participating share awards | (14) | (7) | (45) | (10) | |||||
Net income attributable to common shareholders | $ 1,783 | $ 1,050 | $ 6,238 | $ 1,622 | |||||
Denominator: | |||||||||
Basic: Weighted-average common stock (in shares) | 786,000 | 804,000 | 796,000 | 805,000 | |||||
Add: Weighted-average stock options (in shares) | 1,000 | 1,000 | 1,000 | 1,000 | |||||
Diluted (in shares) | 787,000 | 805,000 | 797,000 | 806,000 | |||||
Basic EPS (in dollars per share) | $ 2.27 | [1] | $ 1.31 | [1] | $ 7.84 | [2] | $ 2.01 | [2] | |
Diluted EPS (in dollars per share) | $ 2.27 | [1] | $ 1.30 | [1] | $ 7.82 | [2] | $ 2.01 | [2] | |
Stock options | |||||||||
Denominator: | |||||||||
The dilutive effect of securities excluded from the calculation of earnings per share (in shares) | 10 | 880 | 10 | 610 | |||||
[1] | Represents net income less (i) earnings allocated to participating share awards of $14 million and $7 million for the three months ended September 30, 2021 and 2020, respectively, (ii) dividends on preferred shares of $20 million and $16 million for the three months ended September 30, 2021 and 2020, respectively, and (iii) an equity-related adjustment of $9 million related to the redemption of preferred shares for the three months ended September 30, 2021. | ||||||||
[2] | Represents net income less (i) earnings allocated to participating share awards of $45 million and $10 million for the nine months ended September 30, 2021 and 2020, respectively, (ii) dividends on preferred shares of $49 million and $65 million for the nine months ended September 30, 2021 and 2020, respectively, and (iii) an equity-related adjustment of $9 million related to the redemption of preferred shares for the nine months ended September 30, 2021. |
Preferred Shares (Details Textu
Preferred Shares (Details Textuals) - USD ($) $ / shares in Units, $ in Millions | Sep. 15, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Preferred Shares [Line Items] | ||||||
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | |||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 | $ 1.667 | |||
Liquidation price per share (in dollars per share) | 1,000,000 | 1,000,000 | ||||
Depositary shares, redemption amount (in dollars per share) | $ 1,000 | $ 1,000 | ||||
Equity adjustments in connection with redemption of Preferred Shares | $ 9 | $ 9 | $ 0 | $ 9 | $ 0 | |
Series C Preferred Stock | ||||||
Preferred Shares [Line Items] | ||||||
Payments for redemption of preferred stock | $ 850 | |||||
Fixed dividend rate per annum (as a percent) | 4.90% | |||||
Series B Preferred Stock | ||||||
Preferred Shares [Line Items] | ||||||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 | ||||
Fixed dividend rate per annum (as a percent) | 5.20% | |||||
Series D Preferred Stock | ||||||
Preferred Shares [Line Items] | ||||||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 | ||||
Fixed dividend rate per annum (as a percent) | 3.55% |
Preferred Shares (Details)
Preferred Shares (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)shares | |
Series B Preferred Stock | |
Preferred Shares [Line Items] | |
Securities issued (in shares) | shares | 750 |
Depositary shares issued (in shares) | shares | 750,000 |
Fixed dividend rate per annum (as a percent) | 5.20% |
Floating dividend rate per annum (as a percent) | 3.428% |
Aggregate liquidation preference | $ | $ 750 |
Carrying value | $ | $ 742 |
Series D Preferred Stock | |
Preferred Shares [Line Items] | |
Securities issued (in shares) | shares | 1,600 |
Depositary shares issued (in shares) | shares | 1,600,000 |
Fixed dividend rate per annum (as a percent) | 3.55% |
Floating dividend rate per annum (as a percent) | 2.854% |
Aggregate liquidation preference | $ | $ 1,600 |
Carrying value | $ | $ 1,584 |
Reportable Operating Segments_2
Reportable Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | $ 8,934 | $ 6,877 | $ 24,593 | $ 20,648 | |
Revenue from contracts with customers | 7,139 | 5,380 | 19,555 | 16,033 | |
Interest income | 2,301 | 2,324 | 6,633 | 7,796 | |
Interest expense | 307 | 450 | 991 | 1,708 | |
Total revenues net of interest expense | 10,928 | 8,751 | 30,235 | 26,736 | |
Pretax segment income (loss) | 2,450 | 1,364 | 8,383 | 2,438 | |
Total assets | 184,261 | 187,000 | 184,261 | 187,000 | $ 191,367 |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | (23) | (79) | (159) | (200) | |
Revenue from contracts with customers | (7) | (6) | (20) | (22) | |
Interest income | 40 | 53 | 126 | 232 | |
Interest expense | 46 | 86 | 178 | 432 | |
Total revenues net of interest expense | (29) | (112) | (211) | (400) | |
Pretax segment income (loss) | (285) | (359) | (805) | (1,097) | |
Total assets | 30,000 | 53,000 | 30,000 | 53,000 | |
GCSG | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 4,699 | 3,632 | 12,982 | 10,662 | |
Revenue from contracts with customers | 3,392 | 2,476 | 9,229 | 7,205 | |
Interest income | 1,879 | 1,916 | 5,436 | 6,298 | |
Interest expense | 174 | 244 | 536 | 844 | |
Total revenues net of interest expense | 6,404 | 5,304 | 17,882 | 16,116 | |
Pretax segment income (loss) | 1,488 | 1,125 | 5,525 | 2,227 | |
Total assets | 92,000 | 82,000 | 92,000 | 82,000 | |
GCS | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 2,978 | 2,327 | 8,225 | 7,129 | |
Revenue from contracts with customers | 2,556 | 1,969 | 7,019 | 5,993 | |
Interest income | 378 | 351 | 1,059 | 1,252 | |
Interest expense | 111 | 139 | 338 | 493 | |
Total revenues net of interest expense | 3,245 | 2,539 | 8,946 | 7,888 | |
Pretax segment income (loss) | 718 | 272 | 2,222 | 269 | |
Total assets | 48,000 | 40,000 | 48,000 | 40,000 | |
GMNS | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Non-interest revenues | 1,280 | 997 | 3,545 | 3,057 | |
Revenue from contracts with customers | 1,198 | 941 | 3,327 | 2,857 | |
Interest income | 4 | 4 | 12 | 14 | |
Interest expense | (24) | (19) | (61) | (61) | |
Total revenues net of interest expense | 1,308 | 1,020 | 3,618 | 3,132 | |
Pretax segment income (loss) | 529 | 326 | 1,441 | 1,039 | |
Total assets | $ 14,000 | $ 12,000 | $ 14,000 | $ 12,000 |
Uncategorized Items - axp-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |