Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 03, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 1-7657 | ||
Entity Registrant Name | American Express Co | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 131.1 | ||
Entity Common Stock, Shares Outstanding | 759,354,994 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III: Portions of Registrant’s Proxy Statement to be filed with the Securities and Exchange Commission in connection with the Annual Meeting of Shareholders to be held on May 3, 2022. | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000004962 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | New York, New York |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Non-interest revenues | ||||
Total non-interest revenues | $ 34,630 | $ 28,102 | $ 34,936 | |
Interest income | ||||
Interest on loans | 8,850 | 9,779 | 11,308 | |
Interest and dividends on investment securities | 83 | 127 | 188 | |
Deposits with banks and other | 100 | 177 | 588 | |
Total interest income | 9,033 | 10,083 | 12,084 | |
Interest expense | ||||
Deposits | 458 | 943 | 1,559 | |
Long-term debt and other | 825 | 1,155 | 1,905 | |
Total interest expense | 1,283 | 2,098 | 3,464 | |
Net interest income | 7,750 | 7,985 | 8,620 | |
Total revenues net of interest expense | 42,380 | 36,087 | 43,556 | |
Provisions for credit losses | ||||
Provisions for credit losses | (1,419) | 4,730 | 3,573 | |
Total revenues net of interest expense after provisions for credit losses | 43,799 | 31,357 | 39,983 | |
Expenses | ||||
Marketing and business development | 9,053 | 6,747 | 7,125 | |
Card Member rewards | 11,007 | 8,041 | 10,439 | |
Card Member services | 1,993 | 1,230 | 2,223 | |
Salaries and employee benefits | 6,240 | 5,718 | 5,911 | |
Other, net | 4,817 | 5,325 | 5,856 | |
Total expenses | 33,110 | 27,061 | 31,554 | |
Pretax income | 10,689 | 4,296 | 8,429 | |
Income tax provision | 2,629 | 1,161 | 1,670 | |
Net income | $ 8,060 | $ 3,135 | $ 6,759 | |
Earnings per Common Share | ||||
Basic (in dollars per share) | [1] | $ 10.04 | $ 3.77 | $ 8 |
Diluted (in dollars per share) | [1] | $ 10.02 | $ 3.77 | $ 7.99 |
Average common shares outstanding for earnings per common share: | ||||
Basic (in shares) | 789 | 805 | 828 | |
Diluted (in shares) | 790 | 806 | 830 | |
Card Member receivables | ||||
Provisions for credit losses | ||||
Provisions for credit losses | $ (73) | $ 1,015 | $ 963 | |
Card Member loans | ||||
Provisions for credit losses | ||||
Provisions for credit losses | (1,155) | 3,453 | 2,462 | |
Other | ||||
Provisions for credit losses | ||||
Provisions for credit losses | (191) | 262 | 148 | |
Discount revenue | ||||
Non-interest revenues | ||||
Total non-interest revenues | 25,727 | 20,401 | 26,167 | |
Net card fees | ||||
Non-interest revenues | ||||
Total non-interest revenues | 5,195 | 4,664 | 4,042 | |
Other fees and commissions | ||||
Non-interest revenues | ||||
Total non-interest revenues | 2,392 | 2,163 | 3,297 | |
Other | ||||
Non-interest revenues | ||||
Total non-interest revenues | $ 1,316 | $ 874 | $ 1,430 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $56 million, $20 million and $47 million for the years ended December 31, 2021, 2020 and 2019, respectively, (ii) dividends on preferred shares of $71 million, $79 million and $81 million for the years ended December 31, 2021, 2020 and 2019, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Earnings allocated to participating share awards | $ 56 | $ 20 | $ 47 |
Dividends on preferred Stock | 71 | 79 | 81 |
Equity adjustments in connection with redemption of Preferred Shares | $ 16 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 8,060 | $ 3,135 | $ 6,759 |
Other comprehensive (loss) income: | |||
Net unrealized debt securities gains (losses), net of tax | (42) | 32 | 41 |
Foreign currency translation adjustments, net of tax | (163) | (40) | (56) |
Net unrealized pension and other postretirement benefits, net of tax | 155 | (150) | (125) |
Other comprehensive (loss) income | (50) | (158) | (140) |
Comprehensive income | $ 8,010 | $ 2,977 | $ 6,619 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | ||
Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2021, $11; 2020, nil) | $ 1,292 | $ 2,984 |
Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2021, $463; 2020, $92) | 20,548 | 29,824 |
Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2021, $32; 2020, $47) | 188 | 157 |
Total cash and cash equivalents | 22,028 | 32,965 |
Investment securities | 2,591 | 21,631 |
Premises and equipment, less accumulated depreciation and amortization: 2021, $8,602; 2020, $7,540 | 4,988 | 5,015 |
Other assets, less reserves for credit losses: 2021, $25; 2020, $85 | 17,244 | 17,679 |
Total assets | 188,548 | 191,367 |
Liabilities | ||
Customer deposits | 84,382 | 86,875 |
Accounts payable | 10,574 | 9,444 |
Short-term borrowings | 2,243 | 1,878 |
Long-term debt (includes debt issued by consolidated variable interest entities: 2021, $13,803; 2020, $12,760) | 38,675 | 42,952 |
Other liabilities | 30,497 | 27,234 |
Total liabilities | 166,371 | 168,383 |
Contingencies and Commitments (Note 12) | ||
Shareholders’ Equity | ||
Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2021 and 2020 (Note 16) | 0 | 0 |
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 761 million shares as of December 31, 2021 and 805 million shares as of December 31, 2020 | 153 | 161 |
Additional paid-in capital | 11,495 | 11,881 |
Retained earnings | 13,474 | 13,837 |
Accumulated other comprehensive income (loss) | ||
Net unrealized debt securities gains, net of tax of: 2021, $7; 2020, $20 | 23 | 65 |
Foreign currency translation adjustments, net of tax of: 2021, $(330); 2020, $(381) | (2,392) | (2,229) |
Net unrealized pension and other postretirement benefits, net of tax of: 2021, $(184); 2020, $(236) | (576) | (731) |
Total accumulated other comprehensive income (loss) | (2,945) | (2,895) |
Total shareholders’ equity | 22,177 | 22,984 |
Total liabilities and shareholders’ equity | 188,548 | 191,367 |
Card Member receivables | ||
Cash and cash equivalents | ||
Financing receivables, net | 53,581 | 43,434 |
Card Member loans | ||
Cash and cash equivalents | ||
Financing receivables, net | 85,257 | 68,029 |
Other | ||
Cash and cash equivalents | ||
Financing receivables, net | $ 2,859 | $ 2,614 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | ||
Restricted cash | $ 525 | $ 606 |
Securities purchased under resale agreements | 463 | 92 |
Premises and equipment, accumulated depreciation | 8,602 | 7,540 |
Other assets, reserves for credit losses | 25 | 85 |
Liabilities | ||
Outstanding balance | $ 38,675 | $ 42,952 |
Shareholders’ Equity | ||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 |
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred shares, outstanding (in shares) | 1,600 | 1,600 |
Preferred shares, issued (in shares) | 1,600 | 1,600 |
Common shares, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common shares, authorized (in shares) | 3,600,000,000 | 3,600,000,000 |
Common shares, issued (in shares) | 761,000,000 | 805,000,000 |
Common shares, outstanding (in shares) | 761,000,000 | 805,000,000 |
Accumulated other comprehensive income (loss) | ||
Net unrealized debt securities gains (losses), tax | $ 7 | $ 20 |
Foreign currency translation adjustments, tax | (330) | (381) |
Net unrealized pension and other postretirement benefits, tax | (184) | (236) |
Card Member receivables | ||
Cash and cash equivalents | ||
Financing receivables, gross | 53,645 | 43,701 |
Financing receivables, reserves for credit losses | 64 | 267 |
Card Member loans | ||
Cash and cash equivalents | ||
Financing receivables, gross | 88,562 | 73,373 |
Financing receivables, reserves for credit losses | 3,305 | 5,344 |
Other | ||
Cash and cash equivalents | ||
Financing receivables, reserves for credit losses | 52 | 238 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | ||
Restricted cash | 11 | 0 |
Restricted investments | 32 | 47 |
Liabilities | ||
Outstanding balance | 13,803 | 12,760 |
Variable Interest Entity, Primary Beneficiary | Card Member receivables | ||
Cash and cash equivalents | ||
Financing receivables, gross | 5,175 | 4,296 |
Variable Interest Entity, Primary Beneficiary | Card Member loans | ||
Cash and cash equivalents | ||
Financing receivables, gross | $ 26,587 | $ 25,908 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | |||
Net income | $ 8,060 | $ 3,135 | $ 6,759 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provisions for credit losses | (1,419) | 4,730 | 3,573 |
Depreciation and amortization | 1,695 | 1,543 | 1,188 |
Stock-based compensation | 330 | 249 | 283 |
Deferred taxes | 294 | (939) | (151) |
Other non-cash items | (772) | 683 | 577 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Other assets | 1,068 | (1,785) | (368) |
Accounts payable & other liabilities | 5,389 | (2,025) | 1,771 |
Net cash provided by operating activities | 14,645 | 5,591 | 13,632 |
Cash Flows from Investing Activities | |||
Sale of investment securities | 62 | 69 | 22 |
Maturities and redemptions of investment securities | 20,032 | 7,159 | 7,329 |
Purchase of investments | (1,517) | (20,562) | (11,166) |
Net (increase) decrease in Card Member loans and receivables, and other loans | (27,557) | 26,906 | (11,047) |
Purchase of premises and equipment, net of sales: 2021, $88; 2020, $1; 2019, $43 | (1,550) | (1,478) | (1,645) |
Acquisitions/dispositions, net of cash acquired | 1 | (597) | (352) |
Other investing activities | 0 | 135 | 152 |
Net cash (used in) provided by investing activities | (10,529) | 11,632 | (16,707) |
Cash Flows from Financing Activities | |||
Net (decrease) increase in customer deposits | (2,468) | 13,542 | 3,330 |
Net increase (decrease) in short-term borrowings | 461 | (4,627) | 3,316 |
Proceeds from long-term debt | 7,788 | 69 | 12,706 |
Payments of long-term debt | (11,662) | (15,593) | (13,850) |
Issuance of American Express preferred shares | 1,584 | 0 | 0 |
Redemption of American Express preferred shares | (1,600) | 0 | 0 |
Issuance of American Express common shares | 64 | 44 | 86 |
Repurchase of American Express common shares and other | (7,652) | (1,029) | (4,685) |
Dividends paid | (1,448) | (1,474) | (1,422) |
Net cash used in financing activities | (14,933) | (9,068) | (519) |
Effect of foreign currency exchange rates on cash and cash equivalents | (120) | 364 | 232 |
Net (decrease) increase in cash and cash equivalents | (10,937) | 8,519 | (3,362) |
Cash and cash equivalents at beginning of year | 32,965 | 24,446 | 27,808 |
Cash and cash equivalents at end of year | $ 22,028 | $ 32,965 | $ 24,446 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Sale of premises and equipment | $ 88 | $ 1 | $ 43 |
Total cash and cash equivalents | 22,028 | 32,965 | 24,446 |
Restricted balances included in Cash and cash equivalents | 525 | 606 | 514 |
Total cash and cash equivalents, excluding restricted balances | $ 21,503 | $ 32,359 | $ 23,932 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Series B Preferred Stock | Series C Preferred Stock | Series D Preferred Stock | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsSeries B Preferred Stock | Retained EarningsSeries C Preferred Stock | Retained EarningsSeries D Preferred Stock |
Beginning Balance at Dec. 31, 2018 | $ 22,290 | $ 0 | $ 170 | $ 12,218 | $ (2,597) | $ 12,499 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 6,759 | 6,759 | ||||||||||||
Other comprehensive (loss) income | (140) | (140) | ||||||||||||
Repurchase of common shares | (4,585) | (8) | (671) | (3,906) | ||||||||||
Other changes, primarily employee plans | 186 | 1 | 227 | (42) | ||||||||||
Cash dividends declared preferred | $ (39) | $ (42) | $ (39) | $ (42) | ||||||||||
Cash dividends declared common | (1,358) | (1,358) | ||||||||||||
Ending Balance at Dec. 31, 2019 | $ 23,071 | $ (882) | 0 | 163 | 11,774 | (2,737) | 13,871 | $ (882) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||||||||
Net income | $ 3,135 | 3,135 | ||||||||||||
Other comprehensive (loss) income | (158) | (158) | ||||||||||||
Repurchase of common shares | (875) | (2) | (105) | (768) | ||||||||||
Other changes, primarily employee plans | 164 | 212 | (48) | |||||||||||
Cash dividends declared preferred | (34) | (45) | (34) | (45) | ||||||||||
Cash dividends declared common | (1,392) | (1,392) | ||||||||||||
Ending Balance at Dec. 31, 2020 | 22,984 | 0 | 161 | 11,881 | (2,895) | 13,837 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 8,060 | 8,060 | ||||||||||||
Other comprehensive (loss) income | (50) | (50) | ||||||||||||
Preferred shares issued | 1,584 | 1,584 | ||||||||||||
Redemption of preferred shares | (1,600) | (1,584) | (16) | |||||||||||
Repurchase of common shares | (7,598) | (9) | (631) | (6,958) | ||||||||||
Other changes, primarily employee plans | 227 | 1 | 245 | (19) | ||||||||||
Cash dividends declared preferred | $ (27) | $ (23) | $ (21) | $ (27) | $ (23) | $ (21) | ||||||||
Cash dividends declared common | (1,359) | (1,359) | ||||||||||||
Ending Balance at Dec. 31, 2021 | $ 22,177 | $ 0 | $ 153 | $ 11,495 | $ (2,945) | $ 13,474 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash dividends declared | ||||
Common stock, dividend per share (in dollars per share) | $ 1.72 | $ 1.72 | $ 1.64 | |
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 share (in dollars per share) | 36,419.41 | 45,807.57 | 52,000 | |
Series C Preferred Stock | ||||
Cash dividends declared | ||||
Preferred stock, dividend per share (in dollars per share) | 26,317.47 | $ 52,919.91 | $ 49,000 | |
Series D Preferred Stock | ||||
Cash dividends declared | ||||
Preferred stock, dividend per share (in dollars per share) | $ 13,213.89 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE C OMPANY We are a globally integrated payments company that provides our customers with access to products, insights and experiences that enrich lives and build business success. Our principal products and services are credit and charge card products, along with travel and lifestyle related services, offered to consumers and businesses around the world. 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 service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. Refer to Note 24 for additional discussion of the products and services that comprise each segment. Corporate functions and certain other businesses and operations are included in Corporate & Other. PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. We consolidate entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlling financial interest when we are able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, we are considered to hold a controlling financial interest when we are determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE. Entities in which our voting interest in common equity does not provide it with control, but allows us to exert significant influence over operating and financial decisions, are accounted for under the equity method. We also have investments in equity securities where our voting interest is below the level of significant influence, including investments that we make in non-public companies in the ordinary course of business. Such investments are initially recorded at cost and adjusted to fair value through earnings for observable price changes in orderly transactions for identical or similar transactions of the same company or if they are determined to be impaired. See Note 4 for the accounting policy for our marketable equity securities. FOREIGN CURRENCY Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of the reporting period; non-monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction; revenues and expenses are translated at the average month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency are reported in Other, net expenses in the Consolidated Statements of Income. AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member credit losses on loans and receivables, Membership Rewards liability, goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. INCOME STATEMENT Discount Revenue Discount revenue primarily represents the amount we earn on transactions occurring at merchants that have entered into a card acceptance agreement with us, or a Global Network Services (GNS) partner or other third-party merchant acquirer, for facilitating transactions between the merchants and Card Members. The amount of fees charged for accepting our cards as payment for goods or services, or merchant discount, varies with, among other factors, the industry in which the merchant conducts business, the merchant’s overall American Express-related transaction volume, the method of payment, the settlement terms with the merchant, the method of submission of transactions and, in certain instances, the geographic scope of the card acceptance agreement between the merchant and us (e.g., local or global) and the transaction amount. The merchant discount is generally deducted from the payment to the merchant and recorded as discount revenue at the time the Card Member transaction occurs. The card acceptance agreements, which include the agreed-upon terms for charging the merchant discount fee, vary in duration. Our contracts with small- and medium-sized merchants generally have no fixed contractual duration, while those with large merchants are generally for fixed periods, which typically range from three In cases where the merchant acquirer is a third party (which is the case, for example, under our OptBlue program, or with certain of our GNS partners), we receive a network rate fee in our settlement with the merchant acquirer, which is individually negotiated between us and that merchant acquirer and is recorded as discount revenue at the time the Card Member transaction occurs. In our role as the operator of the American Express network, we also settle with merchants on behalf of our GNS card issuing partners, who in turn receive an issuer rate that is individually negotiated between that issuer and us and is recorded as expense in Marketing and business development (see below) or as contra-revenue in Other revenue. Revenue expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g. discount revenue) is not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-line basis over the twelve-month card membership period as Net card fees in the Consolidated Statements of Income and are therefore more stable in relation to short term business or economic shifts. The unamortized net card fee balance is reported in Other liabilities on the Consolidated Balance Sheets. 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. Other Fees and Commissions Other fees and commissions includes certain fees charged to Card Members, including delinquency fees and foreign currency conversion fees, which are primarily recognized in the period in which they are charged to the Card Member. Other fees and commissions also includes Membership Rewards program fees, which are deferred and recognized over the period covered by the fee, typically one year, the unamortized portion of which is included in Other liabilities on the Consolidated Balance Sheets. In addition, Other fees and commissions includes loyalty coalition-related fees, travel commissions and fees and service fees earned from merchants, that are recognized when the service is performed, which is generally in the period the fee is charged. Refer to Note 18 for additional information. Contra-revenue Payments made pursuant to contractual arrangements with our merchants, GNS partners, and other customers are classified as contra-revenue, except where we receive goods, services or other benefits for which the fair value is determinable and measurable, in which case they are recorded as expense. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid, or written off. Interest and dividends on investment securities primarily relate to our performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments will not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on our long-term debt and short-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on our long-term debt. Marketing and Business Development Marketing and business development expense includes costs incurred in the development and initial placement of advertising, which are expensed in the year in which the advertising first takes place. Also included in Marketing and business development expense are payments to our cobrand partners, Card Member statement credits and promotional rewards-based incentives for qualifying charges on eligible card accounts, corporate client incentive payments earned on achievement of pre-set targets, and certain payments to GNS partners. These costs are generally expensed as incurred. Card Member Rewards We issue charge and credit cards that allow Card Members to participate in various rewards programs (e.g., Membership Rewards, cash back and cobrand). Rewards expense is recognized in the period Card Members earn rewards, generally by spending on their enrolled card products. For Membership Rewards and cash back, we record a liability that represents the rewards that are expected to be redeemed, as well as, for Membership Rewards, the estimated cost of points earned. For cobrand, we record a liability based primarily on rewards earned on Card Member spending on cobrand cards, and make associated payments to our cobrand partners. The partner is liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program. Card Member rewards liabilities are impacted over time by enrollment levels, attrition, the volume of points earned and redeemed, and the associated redemption costs. Changes in the Card Member rewards liabilities during the period are taken as an increase or decrease to the Card Member rewards expense in the Consolidated Statements of Income. BALANCE SHEET Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, restricted cash, and other highly liquid investments with original maturities of 90 days or less. Restricted cash primarily represents amounts related to Card Member credit balances as well as upcoming debt maturities of consolidated VIEs. Goodwill Goodwill represents the excess of the acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. We allocate goodwill to our reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regularly reviewed by the operating segment manager. We evaluate goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of our reporting units below its carrying value. Prior to completing the assessment of goodwill for impairment, we also perform a recoverability test of certain long-lived assets. We have the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Alternatively, we can perform a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other company and reporting unit-specific events. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform the impairment evaluation using the quantitative assessment. The quantitative assessment compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds the reporting unit's fair value, an impairment loss is recognized for the amount over and above the reporting unit's fair value. When measuring the fair value of our reporting units in the quantitative assessment, we use widely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, we use internal forecasts to estimate future cash flows expected to be generated by the reporting units. To discount these cash flows, we use the expected cost of equity, determined by using a capital asset pricing model. We believe the discount rates appropriately reflect the risks and uncertainties in the financial markets generally and specifically in our internally-developed forecasts. When using market multiples under the market approach, we apply comparable publicly traded companies’ multiples (e.g., earnings or revenues) to our reporting units’ actual results. For the years ended December 31, 2021 and 2020, we performed a qualitative assessment in connection with our annual goodwill impairment evaluation and determined that it was more likely than not that the fair values of each of our reporting units exceeded their carrying values. Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at the acquisition date. Certain costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Premises and equipment. Once the specific software feature is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. We review these assets for impairment using the same impairment methodology used for our intangible assets. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and range from 5 to 10 years. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. Leases We have operating leases worldwide for facilities and equipment, which, for those leases with terms greater than 12 months, are recorded as lease-related assets and liabilities. We do not separate lease and non-lease components. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs and lease incentives. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. OTHER SIGNIFICANT ACCOUNTING POLICIES The following table identifies our other significant accounting policies, along with the related Note. Significant Accounting Policy Note Note Title Loans and Card Member Receivables Note 2 Loans and Card Member Receivables Reserves for Credit Losses Note 3 Reserves for Credit Losses Investment Securities Note 4 Investment Securities Asset Securitizations Note 5 Asset Securitizations Legal Contingencies Note 12 Contingencies and Commitments Derivative Financial Instruments and Hedging Activities Note 13 Derivatives and Hedging Activities Fair Value Measurements Note 14 Fair Values Guarantees Note 15 Guarantees Income Taxes Note 20 Income Taxes CLASSIFICATION OF VARIOUS ITEMS Certain reclassifications of prior period amounts have been made to conform to the current period presentation. RECENTLY ADOPTED ACCOUNTING STANDARDS Effective January 1, 2021, we elected to change our accounting for investments in qualified affordable housing (QAH) 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 year 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. Effective January 1, 2020, we adopted the new credit reserving methodology, applicable to certain financial instruments, known as the Current Expected Credit Loss (CECL) methodology resulting in an increase in the reserves for total loans and receivables credit losses on adoption, which was recorded under a modified retrospective transition with an offset to the opening balance of retained earnings. Refer to Note 3 for additional information on impact of adoption and how management estimates reserves for credit losses in accordance with the CECL methodology. |
Loans and Card Member Receivabl
Loans and Card Member Receivables | 12 Months Ended |
Dec. 31, 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. Reserves for reporting periods beginning on and after January 1, 2020 are presented using the CECL methodology, while information as of and for the year ended December 31, 2019 continues to be reported in accordance with the incurred loss methodology then in effect. CARD MEMBER AND OTHER LOANS Card Member loans are generally recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolve-eligible transactions on our card products, as well as any finance charges and associated card-related fees. Card Members with outstanding revolving loans are required to make a minimum monthly payment and the balances that Card Members choose to revolve are subject to finance charges. These loans have varying terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members, and in accordance with applicable regulations and the respective product’s terms and conditions. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued interest and fees. Our policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that we believe will not be collected. Other loans are recorded at the time any extension of credit is provided to consumer and commercial customers for non-card financing products. These loans have a range of fixed terms such as interest rates, fees and repayment periods. Borrowers are typically required to make pre-established monthly payments over the term of the loan. Non-card financing products are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans are presented on the Consolidated Balance Sheets net of reserves for credit losses, and include principal and any related accrued interest and fees. Card Member loans by segment and Other loans as of December 31, 2021 and 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group (a) $ 70,467 $ 60,084 Global Commercial Services 18,095 13,289 Card Member loans 88,562 73,373 Less: Reserves for credit losses 3,305 5,344 Card Member loans, net $ 85,257 $ 68,029 Other loans, net (b) $ 2,859 $ 2,614 (a) Includes approximately $26.6 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2021 and 2020, respectively. (b) Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $36 million and $630 million of gross PPP loans outstanding as of December 31, 2021 and 2020, respectively. Other loans are presented net of reserves for credit losses of $52 million and $238 million as of December 31, 2021 and 2020, respectively. CARD MEMBER RECEIVABLES Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on our card products and card-related fees that need to be paid in full on or before the Card Member’s payment due date. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued fees. Card Member receivables by segment as of December 31, 2021 and 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group $ 22,392 $ 18,685 Global Commercial Services (a) 31,253 25,016 Card Member receivables 53,645 43,701 Less: Reserves for credit losses 64 267 Card Member receivables, net $ 53,581 $ 43,434 (a) Includes $5.2 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2021 and 2020, respectively. CARD MEMBER LOANS AND RECEIVABLES AGING Generally, a Card Member account is considered past due if payment due is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of December 31, 2021 and 2020: 2021 (Millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 69,960 $ 158 $ 112 $ 237 $ 70,467 Global Commercial Services Global Small Business Services 17,950 34 19 37 18,040 Global Corporate Payments (a) (b) (b) (b) — 55 Card Member Receivables: Global Consumer Services Group 22,279 41 24 48 22,392 Global Commercial Services Global Small Business Services $ 17,846 $ 59 $ 28 $ 44 $ 17,977 Global Corporate Payments (a) (b) (b) (b) $ 42 $ 13,276 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 years ended December 31: 2021 2020 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Principal Only (a) Principal, Interest & Fees (a) 30+ Card Member Loans: Global Consumer Services Group 0.9 % 1.3 % 0.7 % 2.5 % 3.0 % 1.1 % Global Small Business Services 0.6 % 0.8 % 0.5 % 2.1 % 2.4 % 0.7 % Card Member Receivables: Global Consumer Services Group 0.3 % 0.4 % 0.5 % 1.7 % 1.9 % 0.6 % Global Small Business Services 0.3 % 0.4 % 0.7 % 2.1 % 2.3 % 0.7 % Global Corporate Payments (d) (b) — % (c) (b) 1.9 % (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 December 31, 2021 and 2020, respectively. (d) The net write-off rate for the year ended December 31, 2021 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 year ended December 21, 2020. 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.” Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is characterized as non-accrual in our TDR disclosures), (ii) placing the customer on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the customer exits the modification program. Upon entering the modification program, the customer’s ability to make future purchases is either limited, canceled, or in certain cases suspended until the customer successfully exits from the modification program. In accordance with the modification agreement with the customer, loans and/or receivables may revert back to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program. Reserves for modifications deemed TDRs are measured individually and incorporate a discounted cash flow model. All changes in the impairment measurement are included within provisions for credit losses. In response to the COVID-19 pandemic, the United States enacted legislation that provided the option to temporarily suspend (i) certain requirements under U.S. GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be treated as TDRs and (ii) any determination that a loan modified as a result of the COVID-19 pandemic is a TDR (including impairment for accounting purposes). Based on the nature of our programs, we have not elected the accounting and reporting relief afforded by this legislation and continue to report modifications as TDRs. In the first quarter of 2020, we created a Customer Pandemic Relief (CPR) program for customers who had been impacted by the COVID-19 pandemic to provide a concession in the form of payment deferrals and waivers of certain fees and interest. We assessed the CPR program and determined that eligible loan modifications were temporary in nature, for example, less than three months, and not considered TDRs. Our short-term CPR programs are no longer widely available and have no remaining balances in the program as of December 31, 2021. The following tables provide additional information with respect to our impaired loans and receivables as of December 31, 2021, 2020 and 2019. As of December 31, 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 Impaired Balance Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 149 $ 82 $ 708 $ 997 $ 1,936 $ 415 Global Commercial Services 19 14 176 332 541 132 Card Member Receivables: Global Consumer Services Group — — 133 130 263 9 Global Commercial Services — — 248 303 551 39 Other Loans (f) 1 — 67 2 70 1 Total $ 169 $ 96 $ 1,332 $ 1,764 $ 3,361 $ 596 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 Impaired Balance 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 As of December 31, 2019 Accounts Classified as a TDR (c) 2019 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 384 $ 284 $ 500 $ 175 $ 1,343 $ 137 Global Commercial Services 44 54 97 38 233 22 Card Member Receivables: Global Consumer Services Group — — 56 16 72 3 Global Commercial Services — — 109 30 139 6 Total $ 428 $ 338 $ 762 $ 259 $ 1,787 $ 168 (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 $41 million, $32 million and $26 million that are over 90 days past due and accruing interest and $19 million, $11 million and $10 million that are non-accruals as of December 31, 2021, 2020 and 2019, respectively. (d) In Program TDRs include accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $1,621 million, $316 million and $188 million of accounts that have successfully completed a modification program and $143 million, $114 million and $72 million of accounts that were not in compliance with the terms of the modification programs as of December 31, 2021, 2020 and 2019, respectively. (f) Other loans primarily represent consumer and commercial non-card financing products. Balances as of December 31, 2019 were not significant. LOANS AND RECEIVABLES MODIFIED AS TDRs The following tables provide additional information with respect to loans and receivables that were modified as TDRs during the years ended December 31: 2021 Number of Accounts Account Balances (millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 112 $ 789 13 (b) Card Member Receivables 21 437 (c) 18 Other Loans (d) 4 $ 13 3 16 Total 137 $ 1,239 2020 Number of Accounts Account Balances (millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 272 $ 2,347 14 (b) Card Member Receivables 47 1,202 (c) 19 Other Loans (d) 9 $ 345 3 16 Total 328 $ 3,894 2019 Number of Accounts Account Balances (millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 78 $ 602 13 (b) Card Member Receivables 9 210 (c) 26 Total 87 $ 812 (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. Balances for the year ended December 31, 2019 were not significant. 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. 2021 Number of Accounts Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 24 $ 174 Card Member Receivables 5 56 Other Loans (b) 3 9 Total 32 $ 239 2020 Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 17 $ 127 Card Member Receivables 3 55 Other Loans (b) 3 6 Total 23 $ 188 2019 Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 12 $ 86 Card Member Receivables 4 20 Total 16 $ 106 (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. Balances for the year ended December 31, 2019 were not significant. |
Reserves for Credit Losses
Reserves for Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Reserves 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, which became effective January 1, 2020, 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, even if such expected recoveries exceed expected losses. 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 each period 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 and incorporate a discounted cash flow model. See Note 2 for information on troubled debt restructurings. 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. Results for reporting periods beginning on and after January 1, 2020 are presented using the CECL methodology, while information as of and for the year ended December 31, 2019 continues to be reported in accordance with the incurred loss methodology then in effect. Reserves for credit losses under the incurred loss methodology were primarily based upon statistical and analytical models that analyzed portfolio performance and reflected management’s judgments regarding the quantitative components of the reserve. The models considered several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Similar to the CECL methodology, we considered whether to adjust the quantitative reserves for certain external and internal qualitative factors, which may increase or decrease the 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) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Fourth quarter of 2021 5% 7% - 11% 7% 6% -(2)% First quarter of 2022 4% - 7% 7% - 11% 6% - (4)% 5% - (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 year ended December 31, 2021, primarily due to improved portfolio quality and macroeconomic outlook, in large part driven by improvement in unemployment rate projections, partially offset by an increase in outstanding loan balances. Card Member loans reserve for credit losses increased for the year ended December 31, 2020, primarily driven by deterioration of the global macroeconomic outlook as a result of the COVID-19 pandemic, partially offset by a decline in outstanding loan balances and lower delinquencies. The following table presents changes in the Card Member loans reserve for credit losses for the years ended December 31: (Millions) 2021 2020 2019 Beginning Balance (a) $ 5,344 $ 4,027 $ 2,134 Provisions (b) (1,155) 3,453 2,462 Net write-offs (c) Principal (672) (1,795) (1,860) Interest and fees (207) (375) (375) Other (d) (5) 34 22 Ending Balance $ 3,305 $ 5,344 $ 2,383 (a) For the year ended December 31, 2020, beginning balance includes an increase of $1,643 million as of January 1, 2020, related to the adoption of the CECL methodology. (b) Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (c) Principal write-offs are presented less recoveries of $657 million, $568 million and $525 million for the years ended December 31, 2021, 2020 and 2019, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(171) million, $(134) million and $(79) million for the years ended December 31, 2021, 2020 and 2019, respectively. (d) Primarily includes foreign currency translation adjustments of $(6) million, $35 million and $4 million for the years ended December 31, 2021, 2020 and 2019, respectively. CHANGES IN CARD MEMBER RECEIVABLES RESERVE FOR CREDIT LOSSES Card Member receivables reserve for credit losses decreased for the year ended December 31, 2021, primarily due to improved portfolio quality and macroeconomic outlook, in large part driven by improvement in unemployment rate projections, partially offset by an increase in outstanding receivable balances. Card Member receivables reserve for credit losses increased for the year ended December 31, 2020, primarily driven by deterioration of the global macroeconomic outlook as a result of the COVID-19 pandemic, partially offset by a decline in outstanding receivable balances. The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31: (Millions) 2021 2020 2019 Beginning Balance (a) $ 267 $ 126 $ 573 Provisions (b) (73) 1,015 963 Net write-offs (c) (129) (881) (900) Other (d) (1) 7 (17) Ending Balance $ 64 $ 267 $ 619 (a) For the year ended December 31, 2020, beginning balance includes a decrease of $493 million as of January 1, 2020, related to the adoption of the CECL methodology. (b) Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (c) Net write-offs are presented less recoveries of $378 million, $386 million and $374 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amounts include net recoveries (write-offs) from TDRs of $(64) million, $(47) million and $(16) million, for the years ended December 31, 2021, 2020 and 2019, respectively. (d) Primarily includes foreign currency translation adjustments of $(1) million, $5 million and nil for the years ended December 31, 2021, 2020 and 2019, respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 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. The methodology for estimating credit losses for available for sale debt securities requires us to estimate lifetime credit losses for all available-for-sale debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, we assess the security’s credit indicators, including credit ratings. If our assessment indicates that an estimated credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the estimated credit loss through 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 $12 million and $26 million, as of December 31, 2021 and 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 and recorded in the Consolidated Statements of Income as Other, net expense. Refer to Note 14 for a description of our methodology for determining the fair value of investment securities. The following is a summary of investment securities as of December 31: 2021 2020 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 106 $ 5 $ — $ 111 $ 172 $ 7 $ — $ 179 U.S. Government agency obligations 6 — — 6 7 — — 7 U.S. Government treasury obligations 1,680 25 (1) 1,704 20,655 76 — 20,731 Mortgage-backed securities (a) 17 1 — 18 28 2 — 30 Foreign government bonds and obligations 630 — — 630 581 — — 581 Other (b) 43 — — 43 22 — — 22 Equity securities (c) 66 17 (4) 79 56 27 (2) 81 Total $ 2,548 $ 48 $ (5) $ 2,591 $ 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. The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020. 2021 Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized U.S. Government treasury obligations 477 (1) — — Total $ 477 $ (1) $ — $ — The following table summarizes the gross unrealized losses by ratio of fair value to amortized cost as of December 31, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020. Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Estimated Gross Number of Estimated Gross Number of Estimated Gross 2021: 90%–100% 5 $ 477 $ (1) — $ — $ — 5 $ 477 $ (1) Total as of December 31, 2021 5 $ 477 $ (1) — $ — $ — 5 $ 477 $ (1) Weighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2021 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ 6 $ 5 $ 30 $ 70 $ 111 U.S. Government agency obligations (a) — — — 6 6 U.S. Government treasury obligations 832 862 10 — 1,704 Mortgage-backed securities (a)(b) — — — 18 18 Foreign government bonds and obligations 628 1 1 — 630 Other (c) 11 32 — — 43 Total Estimated Fair Value $ 1,477 $ 900 $ 41 $ 94 $ 2,512 Total Cost $ 1,476 $ 879 $ 35 $ 92 $ 2,482 Weighted average yields (d) 1.74 % 2.42 % 5.46 % 3.10 % 2.08 % (a) The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. (b) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (c) Represents investments in corporate debt securities and debt securities issued by Community Development Financial Institutions. (d) Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent . |
Asset Securitizations
Asset Securitizations | 12 Months Ended |
Dec. 31, 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. Refer to Note 1 for further details on the principles of consolidation. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of December 31, 2021 and 2020, our ownership of variable interests was $15.0 billion and $13.4 billion, respectively, for the Lending Trust and $3.2 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. The debt securities issued by the Trusts are non-recourse to us. The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, respectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 2). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 8). Restricted cash and cash equivalents held by the Lending Trust and Charge Trust was $42 million and $1 million, respectively, as of December 31, 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 years ended December 31, 2021 and 2020, no such triggering events occurred. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | OTHER ASSETS The following is a summary of Other assets as of December 31: (Millions) 2021 2020 Goodwill $ 3,804 $ 3,852 Other intangible assets, at amortized cost 201 265 Other (a) 13,239 13,562 Total $ 17,244 $ 17,679 (a) Primarily includes other receivables net of reserves, prepaid assets, net deferred tax assets, tax credit investments, right-of-use lease assets and investments in non-consolidated entities. GOODWILL The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows: (Millions) GCSG GCS GMNS Total Balance as of December 31, 2019 $ 1,026 $ 1,781 $ 508 $ 3,315 Acquisitions — 442 52 494 Dispositions — — — — Other (a) 32 11 — 43 Balance as of December 31, 2020 $ 1,058 $ 2,234 $ 560 $ 3,852 Acquisitions — — — — Dispositions (3) — — (3) Other (a) (37) (8) — (45) Balance as of December 31, 2021 $ 1,018 $ 2,226 $ 560 $ 3,804 (a) Primarily includes foreign currency translation. Accumulated impairment losses were $221 million as of both December 31, 2021 and 2020. OTHER INTANGIBLE ASSETS Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. The gross carrying amount for other intangible assets as of December 31, 2021 and 2020 was $733 million and $759 million, respectively, with accumulated amortization of $532 million and $494 million, respectively. Amortization expense was $57 million, $54 million and $49 million for the years ended December 31, 2021, 2020 and 2019, respectively. For other intangible assets on the Consolidated Balance Sheets as of December 31, 2021, amortization expense is expected to be $52 million in 2022, $50 million in 2023, $44 million in 2024, $21 million in 2025, $11 million in 2026 and $23 million thereafter. TAX CREDIT INVESTMENTS We account for our QAH investments using PAM, which we elected to implement on January 1, 2021 on a prospective basis, and other tax credit investments using the equity method of accounting. Refer to Note 1 for further information on the implementation of PAM. As of December 31, 2021 and 2020, we had $1,124 million and $1,147 million in tax credit investments, respectively, included in Other assets on the Consolidated Balance Sheets, of which $1,084 million and $1,095 million, respectively, related to QAH investments. Included in QAH investments as of December 31, 2021 and 2020, we had $994 million and $1,028 million, respectively, related to investments in unconsolidated VIEs for which we do not have a controlling financial interest. As of December 31, 2021, we committed to provide funding related to certain of these QAH investments, which is expected to be paid between 2022 and 2036, resulting in $238 million in unfunded commitments reported in Other liabilities, of which $192 million specifically related to unconsolidated VIEs. In addition, as of December 31, 2021 we had contractual off-balance sheet obligations to provide additional funding up to $53 million for these QAH investments, fully related to unconsolidated VIEs. We may be required to fund these amounts between 2022 and 2036. During the year ended December 31, 2021, we recognized QAH investment losses of $226 million, with associated tax credits of $135 million, in Income tax provision. These losses included the one-time charge related to the implementation of PAM. During the years ended December 31, 2020 and 2019 we recognized QAH investment equity method losses of $128 million and $101 million, respectively, in Other, net expenses, with associated tax credits of $129 million and $119 million, respectively, recognized in Income tax provision. |
Customer Deposits
Customer Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Customer Deposits | CUSTOMER DEPOSITS As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2021 2020 U.S.: Interest-bearing $ 83,304 $ 85,583 Non-interest-bearing (includes Card Member credit balances of: 2021, $527; 2020, $576) 553 599 Non-U.S.: Interest-bearing 18 19 Non-interest-bearing (includes Card Member credit balances of: 2021, $503; 2020, $671) 507 674 Total customer deposits $ 84,382 $ 86,875 Customer deposits by deposit type as of December 31 were as follows: (Millions) 2021 2020 Savings and transaction accounts $ 66,142 $ 63,512 Certificates of deposit: Direct 1,415 2,440 Third-party (brokered) 3,095 5,561 Sweep accounts ―Third-party (brokered) 12,658 14,070 Other deposits 42 45 Card Member credit balances 1,030 1,247 Total customer deposits $ 84,382 $ 86,875 The scheduled maturities of certificates of deposit as of December 31, 2021 were as follows: (Millions) Total 2022 $ 3,216 2023 777 2024 287 2025 211 2026 19 After 5 years — Total $ 4,510 As of December 31, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2021 2020 U.S. $ 521 $ 930 Non-U.S. 1 1 Total $ 522 $ 931 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT SHORT-TERM BORROWINGS Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2021 2020 (Millions, except percentages) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Commercial paper (b) $ — — % $ — — % Other short-term borrowings (c) 2,243 0.58 1,878 0.61 Total $ 2,243 0.58 % $ 1,878 0.61 % (a) For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2021 and 2020. (b) Average commercial paper outstanding was nil and $628 million in 2021 and 2020, respectively. (c) Includes borrowings from banks and book overdrafts with banks due to timing differences arising in the ordinary course of business. We maintained a three-year committed, revolving, secured borrowing facility that gives us the right to sell up to $2.0 billion face amount of eligible certificates issued from the Lending Trust at any time through September 16, 2024. The facility was undrawn as of both December 31, 2021 and 2020. Additionally, certain of our subsidiaries maintained total committed lines of credit of $145 million and $148 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, $7.2 million and nil were drawn on these committed lines, respectively. We paid $7.8 million and $7.7 million in fees to maintain the secured borrowing facility in 2021 and 2020, respectively. The committed facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the facility, nor is it dependent on our credit rating. LONG-TERM DEBT Our long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2021 2020 (Millions, except percentages) Original Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) American Express Company Fixed Rate Senior Notes 2022 - 2042 $ 18,324 3.02 % 2.03 % $ 18,251 3.25 % 2.09 % Floating Rate Senior Notes 2022 - 2026 3,300 0.69 — 4,000 0.84 — Fixed Rate Subordinated Notes 2024 599 3.63 1.38 599 3.63 1.43 American Express Credit Corporation Fixed Rate Senior Notes 2022 - 2027 2,078 2.80 1.32 6,746 2.38 1.67 Floating Rate Senior Notes 2022 300 0.87 — 300 0.93 — Lending Trust Fixed Rate Senior Notes 2022 - 2024 8,199 2.01 1.82 8,325 2.74 2.55 Floating Rate Senior Notes 2022 - 2023 3,325 0.49 — 4,125 0.51 — Fixed Rate Subordinated Notes 2022 212 2.72 — 246 2.80 — Floating Rate Subordinated Notes 2022 - 2023 79 0.68 — 79 0.73 — Charge Trust Floating Rate Conduit Borrowings 2024 2,000 0.40 — — — — Other Finance Leases 2024 - 2033 14 5.49 — 17 5.54 — Floating Rate Borrowings 2022 - 2024 297 0.42 — % 328 0.42 — % Unamortized Underwriting Fees (52) (64) Total Long-Term Debt $ 38,675 2.22 % $ 42,952 2.49 % (a) The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Refer to Note 13 for more details on our treatment of fair value hedges. (b) For floating-rate issuances, the stated interest rate on debt is weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2021 and 2020. (c) Interest rates with swaps are only presented when swaps are in place to hedge the underlying debt. The interest rates with swaps are weighted based on the outstanding principal balances and the interest rates on the floating leg of the swaps in effect as of December 31, 2021 and 2020. Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2021 were as follows: (Millions) 2022 2023 2024 2025 2026 Thereafter Total American Express Company (Parent Company only) $ 5,675 $ 5,750 $ 5,000 $ 750 $ 2,450 $ 2,933 $ 22,558 American Express Credit Corporation 2,050 — — — — 339 2,389 Lending Trust 6,381 2,685 2,750 — — — 11,816 Charge Trust — — 2,000 — — — 2,000 Other 77 88 136 — — 10 311 $ 14,183 $ 8,523 $ 9,886 $ 750 $ 2,450 $ 3,282 $ 39,074 Unamortized Underwriting Fees (52) Unamortized Discount and Premium (584) Impacts due to Fair Value Hedge Accounting 237 Total Long-Term Debt $ 38,675 We maintained a committed syndicated bank credit facility of $3.5 billion as of December 31, 2021 and 2020, all of which was undrawn as of the respective dates. This facility was maintained by our wholly owned subsidiary American Express Credit Corporation (Credco) through September 30, 2021 and the availability of the credit line was subject to compliance with certain covenants by Credco, principally the maintenance by Credco of a 1.25 ratio of its combined earnings, certain capital contributions and fixed charges, to fixed charges. Effective October 1, 2021, this facility was terminated, and we entered into a new committed syndicated bank credit facility for the same amount with a maturity date of October 15, 2024 with American Express Company and American Express Travel Related Services Company, Inc. (TRS) as co-borrowers and co-obligors. The availability of the new credit facility is subject to our maintenance of a minimum Common Equity Tier 1 (CET1) risk-based capital ratio of 4.5 percent, with certain restrictions in relation to either accessing the facility or distributing capital to common shareholders in the event our CET1 risk-based capital ratio falls between 4.5 percent and 6.5 percent. As of December 31, 2021, we were in compliance with the covenants contained in the new credit facility. Additionally, we maintained a three-year committed, revolving, secured borrowing facility that gives us the right to sell up to $3.0 billion face amount of eligible notes issued from the Charge Trust at any time through July 15, 2024. As of December 31, 2021 and 2020, $2.0 billion and nil were drawn on this facility, respectively. The amount drawn as of December 31, 2021 was repaid in full on January 18, 2022. We paid $15.7 million and $14.2 million in fees to maintain these lines in 2021 and 2020, respectively. These committed facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on our credit rating. We paid total interest, primarily related to short- and long-term debt, corresponding interest rate swaps and customer deposits, of $1.1 billion, $2.0 billion and $3.4 billion in 2021, 2020 and 2019, respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | OTHER LIABILITIES The following is a summary of Other liabilities as of December 31: (Millions) 2021 2020 Membership Rewards liability $ 11,398 $ 9,750 Employee-related liabilities (a) 2,528 2,336 Deferred card and other fees, net 2,516 2,282 Card Member rebate and reward accruals (b) 1,809 1,367 Income tax liability (c) 1,576 943 Other (d) 10,670 10,556 Total $ 30,497 $ 27,234 (a) Includes employee benefit plan obligations and incentive compensation. (b) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. (c) Includes repatriation tax liability of $1,012 million as of both December 31, 2021 and 2020, which represents our remaining obligation under the Tax Cuts and Jobs Act enacted on December 22, 2017 (Tax Act) to pay a one-time transition tax on unrepatriated earnings and profits of certain foreign subsidiaries, the net position for current federal, state and non-U.S. income tax liabilities, and deferred tax liabilities for foreign jurisdictions. (d) Primarily includes book overdraft balances for accounts without an associated overdraft credit facility, Travelers Cheques and other prepaid products, lease liabilities, accruals for general operating expenses, payments to cobrand partners, marketing and business development liabilities, dividends payable and client incentives. MEMBERSHIP REWARDS The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad variety of rewards including travel, shopping, gift cards, and covering eligible charges. We record a Membership Rewards liability that represents management’s best estimate of the cost of points earned that are expected to be redeemed by Card Members in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are key assumptions used to estimate the liability. We use statistical and actuarial models to estimate the URR based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The WAC per point assumption is derived from 12 months of redemptions and is adjusted as appropriate for certain changes in redemption costs that are not representative of future cost expectations and expected developments in redemption patterns. The expense for Membership Rewards points is included in Card Member rewards expense. We periodically evaluate our liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner contract changes and other factors. DEFERRED CARD AND OTHER FEES, NET The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations, as of December 31, 2021 was as follows: (Millions) 2021 2020 Deferred card and other fees (a) $ 2,838 $ 2,639 Deferred direct acquisition costs (169) (166) Reserves for membership cancellations (153) (191) Deferred card and other fees, net $ 2,516 $ 2,282 (a) Includes deferred fees for Membership Rewards program participants. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | STOCK PLANS STOCK OPTION AND AWARD PROGRAMS Under our 2016 Incentive Compensation Plan (amended and restated effective May 5, 2020) and previously under our 2007 Incentive Compensation Plan (collectively, Incentive Compensation Plans), awards may be granted to employees and other key individuals who perform services for us and our participating subsidiaries. These awards may be in the form of stock options, restricted stock units or awards (collectively referred to as RSUs), portfolio grants (PGs) or other incentives or similar awards designed to meet the requirements of non-U.S. jurisdictions. For our Incentive Compensation Plans, there were a total of 12 million, 14 million and 9 million common shares unissued and available for grant as of December 31, 2021, 2020 and 2019, respectively, as authorized by our Board of Directors and shareholders. We generally issue new common shares upon exercise of options and vesting of RSUs. Stock-based compensation expense recognized in Salaries and employee benefits in the Consolidated Statements of Income was $326 million, $247 million and $280 million in 2021, 2020 and 2019, respectively, with corresponding income tax benefits of $78 million, $59 million and $67 million in those respective periods. A summary of stock option and RSU activity as of December 31, 2021, and corresponding changes during the year, are as follows: Stock Options Service-Based RSUs Service and Performance-Based RSUs (Shares in thousands) Shares Weighted-Average Shares Weighted- Shares Weighted- Outstanding as of December 31, 2020 3,751 $ 83.59 2,078 $ 109.23 3,146 $ 103.08 Granted 345 117.52 889 120.91 1,787 125.02 Exercised/vested (992) 64.96 (842) 102.05 (951) 98.56 Forfeited — — (250) 113.99 (241) 110.72 Expired — — — — — — Outstanding as of December 31, 2021 3,104 93.33 1,875 $ 117.36 3,741 $ 114.22 Options vested and expected to vest as of December 31, 2021 3,104 93.33 Options exercisable as of December 31, 2021 1,976 $ 79.42 Stock-based compensation expense is generally recognized ratably based on the grant-date fair value of the awards, net of expected forfeitures, over the vesting period. The vesting period is the shorter of the vesting schedule as defined in each award agreement or the date an individual will become eligible to retire. Retirement eligibility is dependent upon age and/or years of service. STOCK OPTIONS Each stock option has an exercise price equal to the market price of our common stock on the date of grant. Stock options generally vest on the third anniversary of the grant date and have a contractual term of 10 years from the date of grant. The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock price exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2021, were as follows: Outstanding Exercisable Vested and Weighted-average remaining contractual life (in years) 5.3 3.8 5.3 Aggregate intrinsic value (millions) $ 218 $ 166 $ 218 As of December 31, 2021, there was $4 million of total unrecognized compensation cost related to unvested options, which will be recognized ratably over the weighted-average remaining vesting period of 1.3 years. The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2021, 2020 and 2019: 2021 2020 2019 Dividend yield 1.5 % 1.4 % 1.5 % Expected volatility (a) 31 % 20 % 24 % Risk-free interest rate 0.8 % 1.6 % 2.6 % Expected life of stock option ( in years ) (b) 7.2 7.1 7.1 Weighted-average fair value per option $ 32.38 $ 25.83 $ 23.38 (a) The expected volatility is based on both weighted historical and implied volatilities of our common stock price. (b) The expected life of stock options was determined using both historical data and expectations of option exercise behavior. For stock options that were exercised during 2021, 2020 and 2019, the intrinsic value, based upon the fair value of our stock price at the date the options were exercised, was $86 million, $47 million and $104 million, respectively; cash received by the Company from the exercise of stock options was $64 million, $44 million and $84 million during those respective periods. The income tax benefit recognized in the Consolidated Statements of Income related to stock option exercises was $14 million, $7 million and $18 million in 2021, 2020 and 2019, respectively. RESTRICTED STOCK UNITS/AWARDS We grant RSUs that contain either a) service conditions or b) both service and performance conditions. RSUs containing only service conditions generally vest 25 percent per year beginning with the first anniversary of the grant date. RSUs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics. All RSU holders receive non-forfeitable dividends or dividend equivalents. Beginning in 2019, a relative total shareholder return (r-TSR) modifier was added to the performance-based RSUs, so that our actual shareholder return relative to a competitive peer group is one of the performance conditions that determines the number of shares ultimately granted upon vesting. The fair value of RSUs that do not include the r-TSR modifier, including those that contain only service conditions, is measured using our stock price on the grant date. The fair value of service and performance-based RSUs that include the r-TSR modifier is determined using a Monte Carlo valuation model with the following weighted-average assumptions in 2021, 2020 and 2019: 2021 2020 2019 Expected volatility (a) 41 % 19 % 20 % Risk-free interest rate 0.2 % 1.4 % 2.5 % Remaining performance period (in years) 2.9 2.9 2.9 (a) The expected volatility is based on historical volatility of our common stock price. As of December 31, 2021, there was $256 million of total unrecognized compensation cost related to non-vested RSUs, which will be recognized ratably over the weighted-average remaining vesting period of 1.9 years. The weighted-average grant date fair value of RSUs granted in 2021, 2020 and 2019 was $123.66, $124.47 and $96.24, respectively. For RSUs vested during 2021, 2020 and 2019, the total fair value, based upon our stock price at the date the RSUs vested, was $227 million, $291 million and $286 million, respectively. LIABILITY-BASED AWARDS In 2018, certain employees were awarded PGs and other incentive awards that can be settled with cash or equity shares at our discretion and final Compensation and Benefits Committee payout approval; beginning in 2019, we discontinued granting PGs. These awards earn value based on performance, market and/or service conditions, and vest over a period of three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. Cash paid upon vesting of these awards in 2021, 2020 and 2019 was $53 million, $81 million and $81 million, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS DEFINED CONTRIBUTION RETIREMENT PLANS We sponsor defined contribution retirement plans, the principal plan being the Retirement Savings Plan (RSP), a 401(k) savings plan with a profit-sharing component. The RSP is a tax-qualified retirement plan subject to the Employee Retirement Income Security Act of 1974 and covers most employees in the United States. The total expense for all defined contribution retirement plans globally was $269 million, $267 million and $278 million in 2021, 2020 and 2019, respectively. DEFINED BENEFIT PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Our primary defined benefit pension plans that cover certain employees in the United States and United Kingdom are closed to new entrants and existing participants do not accrue any additional benefits. Most employees outside the United States and United Kingdom are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. We comply with minimum funding requirements in all countries. We also sponsor unfunded other postretirement benefit plans that provide health care and life insurance to certain retired U.S. employees. For these plans, the total net benefit was $26 million in 2021 and $8 million in both 2020 and 2019. We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the Consolidated Balance Sheets. As of December 31, 2021 and 2020, the unfunded status related to the defined benefit pension plans and other postretirement benefit plans was $414 million and $706 million, respectively, and is recorded in Other liabilities. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | CONTINGENCIES AND COMMITMENTS CONTINGENCIES In the ordinary course of business, we and our subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, 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. On November 22, 2021, that decision was affirmed on appeal. 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 in California 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 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 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 $170 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.” A reasonably possible loss related to these exposures in excess of any recorded accruals cannot be quantified as the Card Member purchases that may include or result in claims are not sufficiently estimable. To date, we have not experienced significant losses related to these exposures; however, our historical experience may not be representative given the disruptions in the travel industry as a result of the COVID-19 pandemic. COMMITMENTS Total lease expense includes rent expenses, adjustments for rent concessions, rent escalations and leasehold improvement allowances and is recognized on a straight-line basis over the lease term. Total lease expense for the years ended December 31, 2021, 2020 and 2019 was $161 million, $177 million and $151 million, respectively. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. For lease liabilities outstanding as of December 31, 2021, the weighted average remaining lease term was 18 years and the weighted average rate used to discount lease commitments was 3 percent. The following represents the maturities of our outstanding lease commitments as of December 31, 2021: (Millions) 2022 $ 155 2023 155 2024 146 2025 123 2026 109 Thereafter 986 Total Outstanding Fixed Lease Payments $ 1,674 Less: Amount representing interest $ (553) Lease Liabilities $ 1,121 As of December 31, 2021, we had approximately $2.6 billion in financial commitments outstanding related to agreements with certain cobrand partners under which we are required to make a certain level of minimum payments over the life of the agreement, generally ranging from five |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 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. Market risk is the risk to earnings or asset and liability values resulting from movements in market prices. Our market risk exposures include: • Interest rate risk due to changes in the relationship between the interest rates on our assets (such as loans, receivables and investment securities) and the interest rates on our liabilities (such as debt and deposits); and • Foreign exchange risk related to transactions, funding, investments and earnings in currencies other than the U.S. dollar. We centrally monitor market risks using market risk limits and escalation triggers as defined in our Asset/Liability Management Policy. Our market exposures are in large part by-products of the delivery of our products and services. Interest rate risk primarily arises through the funding of Card Member receivables and fixed-rate loans with variable-rate borrowings, as well as through the risk to net interest margin from changes in the relationship between benchmark rates such as Prime, the London interbank offered rate (LIBOR), the secured overnight financing rate and the overnight indexed swap rate. Interest rate exposure within our charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt and deposits compared to fixed-rate debt and deposits. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations, or to convert variable-rate debt obligations to fixed-rate obligations. We may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, among other factors. Foreign exchange exposures arise in four principal ways: (1) Card Member spending in currencies that are not the billing currency, (2) cross-currency transactions and balances from our funding activities, (3) cross-currency investing activities, such as in the equity of foreign subsidiaries, and (4) revenues generated and expenses incurred in foreign currencies, which impact earnings. Our foreign exchange risk is managed primarily by entering into agreements to buy and sell currencies on a spot basis or by hedging this market exposure, to the extent it is economical, through various means, including the use of derivatives such as foreign exchange forwards. Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to, an uncollateralized derivative exposure. We manage this risk by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential future exposure of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required to be pre-approved by us and rated as investment grade, and counterparty risk exposures are centrally monitored. A majority of our derivative assets and liabilities as of December 31, 2021 and 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. To further mitigate counterparty credit risk, we exercise our rights under executed credit support agreements with the respective derivative counterparties for our bilateral interest rate swaps and select foreign exchange contracts. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts. In relation to our credit risk, certain of our bilateral derivative agreements include provisions that allow our counterparties to terminate the agreement in the event of a downgrade of our debt credit rating below investment grade and settle the outstanding net liability position. As of December 31, 2021, these derivatives were not in a material net liability position and we had no material risk exposure to any individual derivative counterparty. Based on our assessment of the credit risk of our derivative counterparties and our own credit risk as of December 31, 2021 and 2020, no credit risk adjustment to the derivative portfolio was required. Our derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 14 for a description of our methodology for determining the fair value of derivatives. The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of December 31: Other Assets Fair Value Other Liabilities Fair Value (Millions) 2021 2020 2021 2020 Derivatives designated as hedging instruments: Fair value hedges - Interest rate contracts (a) $ 204 $ 500 $ — $ — Net investment hedges - Foreign exchange contracts 219 24 54 474 Total derivatives designated as hedging instruments 423 524 54 474 Derivatives not designated as hedging instruments: Foreign exchange contracts 167 105 85 228 Total derivatives, gross 590 629 139 702 Derivative asset and derivative liability netting (b) (93) (98) (93) (98) Cash collateral netting (c) (204) (500) (4) (16) Total derivatives, net $ 293 $ 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 $11 million and $34 million as of December 31, 2021 and 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. DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR HEDGE ACCOUNTING Derivatives executed for hedge accounting purposes are documented and designated as such when we enter into the contracts. In accordance with our risk management policies, we structure our hedges with terms similar to those of the item being hedged. We formally assess, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, we will discontinue the application of hedge accounting. FAIR VALUE HEDGES A fair value hedge involves a derivative designated to hedge our exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof, that is attributable to a particular risk. Interest Rate Contracts We are exposed to interest rate risk associated with our fixed-rate debt obligations. At the time of issuance, certain fixed-rate long-term debt obligations are designated in fair value hedging relationships, using interest rate swaps, to economically convert the fixed interest rate to a floating interest rate. We had $12.9 billion and $15.8 billion of fixed-rate debt obligations designated in fair value hedging relationships as of December 31, 2021 and 2020, respectively. Gains or losses on the fair value hedging instrument principally offset the losses or gains on the hedged item attributable to the hedged risk. The changes in the fair value of the derivative and the changes in the hedged item may not fully offset due to differences between a debt obligation’s interest rate and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the fair value of the interest rate swap. Furthermore, the difference may be caused by changes in 1-month LIBOR, 3-month LIBOR and the overnight indexed swap rate, as spreads between these rates impact the fair value of the interest rate swap without an exact offsetting impact to the fair value of the hedged debt. The following table presents the gains and losses 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 years ended December 31: Gains (losses) (Millions) 2021 2020 2019 Fixed-rate long-term debt $ 385 $ (405) $ (458) Derivatives designated as hedging instruments (385) 409 462 Total $ — $ 4 $ 4 The carrying values of the hedged liabilities, recorded within Long-term debt on the Consolidated Balance Sheets, were $13.1 billion and $16.4 billion as of December 31, 2021 and 2020, respectively, including the cumulative amount of fair value hedging adjustments of $237 million and $622 million for the respective periods. We recognized in Interest expense on Long-term debt net decreases of $256 million for both the years ended December 31, 2021 and 2020 and a net increase of $102 million for the year ended December 31, 2019. These were primarily related to the net settlements including interest accruals on our interest rate derivatives designated as fair value hedges. NET INVESTMENT HEDGES A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. We primarily designate foreign currency derivatives 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 $12.6 billion and $10.5 billion of foreign currency derivatives designated as net investment hedges as of December 31, 2021 and 2020, respectively. The gain or loss on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, were gains of $176 million and losses of $253 million and $140 million for the years ended December 31, 2021, 2020 and 2019, respectively. Net investment hedge reclassifications out of AOCI into the Consolidated Statements of Income were not significant for the years ended December 31, 2021, 2020 and 2019, respectively. DERIVATIVES NOT DESIGNATED AS HEDGES We have derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified date. We also have certain operating agreements containing payments that may be linked to a market rate or price, primarily foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in which case the embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values | FAIR VALUES Fair value is defined as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the principal or, in the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: • Level 1 ― Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. • Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: – Quoted prices for similar assets or liabilities in active markets; – Quoted prices for identical or similar assets or liabilities in markets that are not active; – Inputs other than quoted prices that are observable for the asset or liability; and – Inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 ― Inputs that are unobservable and reflect our own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly. For the years ended December 31, 2021 and 2020, there were no Level 3 transfers. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT FAIR VALUE The following table summarizes our financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s fair value hierarchy (as described in the preceding paragraphs), as of December 31: 2021 2020 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 79 $ 78 $ 1 $ — $ 81 $ 80 $ 1 $ — Debt securities 2,512 — 2,480 32 21,550 — 21,550 — Derivatives, gross (a) 590 — 590 — 629 — 629 — Total Assets 3,181 78 3,071 32 22,260 80 22,180 — Liabilities: Derivatives, gross (a) 139 — 139 — 702 — 702 — Total Liabilities $ 139 $ — $ 139 $ — $ 702 $ — $ 702 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 13 for the fair values of derivative assets and liabilities, on a further disaggregated basis. VALUATION TECHNIQUES USED IN THE FAIR VALUE MEASUREMENT OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT FAIR VALUE For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above), we apply the following valuation techniques: Investment Securities When available, quoted prices of identical investment securities in active markets are used to estimate fair value. Such investment securities are classified within Level 1 of the fair value hierarchy. When quoted prices of identical investment securities in active markets are not available, the fair values for our investment securities are obtained primarily from pricing services engaged by us, and we receive one price for each security. The fair values provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. Such investment securities are classified within Level 2 of the fair value hierarchy. The inputs to the valuation techniques applied by the pricing services vary depending on the type of security being priced but are typically benchmark yields, benchmark security prices, credit spreads, prepayment speeds, reported trades and broker-dealer quotes, all with reasonable levels of transparency. The pricing services did not apply any adjustments to the pricing models used. In addition, we did not apply any adjustments to prices received from the pricing services. We reaffirm our understanding of the valuation techniques used by our pricing services at least annually. In addition, we corroborate the prices provided by our pricing services by comparing them to alternative pricing sources. In instances where price discrepancies are identified between different pricing sources, we evaluate such discrepancies to ensure that the prices used for our valuation represent the fair value of the underlying investment securities. Refer to Note 4 for additional fair value information. Within Level 3 of the fair value hierarchy are our holdings of debt securities issued by Community Development Financial Institutions. We take the carrying value for these investment securities to be a reasonable proxy for their fair value unless we determine, based on our internal credit model, that there are indicators that the contractual cash flows will not be received in full. Derivative Financial Instruments The fair value of our derivative financial instruments is estimated internally by using third-party pricing models, where the inputs to those models are readily observable from active markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. We reaffirm our understanding of the valuation techniques at least annually and validate the valuation output on a quarterly basis. Our derivative instruments are classified within Level 2 of the fair value hierarchy. The fair value of our interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated. Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve, used to value derivatives are not indicative of our credit quality or that of our counterparties. We consider the counterparty credit risk by applying an observable forecasted default rate to the current exposure. Refer to Note 13 for additional fair value information. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT OTHER THAN FAIR VALUE The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31, 2021 and 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2021 and 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. 2021 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 22 $ 22 $ 20 $ 2 $ — Other financial assets (b) 56 56 — 56 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 88 91 — — 91 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 105 105 — 105 — Financial liabilities carried at other than fair value Certificates of deposit (d) 5 5 — 5 — Long-term debt (c) $ 39 $ 40 $ — $ 40 $ — 2020 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 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 $5.2 billion and $4.2 billion held by a consolidated VIE as of December 31, 2021 and 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 $26.7 billion and $25.8 billion as of December 31, 2021 and 2020, respectively, and the fair values of Long-term debt were $13.9 billion and $13.0 billion as of December 31, 2021 and 2020, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance Sheets. VALUATION TECHNIQUES USED IN THE FAIR VALUE MEASUREMENT OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT OTHER THAN FAIR VALUE For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table), we apply the following valuation techniques to measure fair value: Financial Assets For Which Carrying Values Equal Or Approximate Fair Value Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivables, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Assets Carried At Other Than Fair Value Card Member and Other loans, less reserves Card Member and Other loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for our loans, we use a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar loans and the lack of observable pricing inputs thereof, we use various inputs to estimate fair value. Such inputs include projected income, discount rates and forecasted write-offs. The valuation does not include economic value attributable to future receivables generated by the accounts associated with the loans. Financial Liabilities For Which Carrying Values Equal Or Approximate Fair Value Financial liabilities for which carrying values equal or approximate fair value include accrued interest, customer deposits (excluding certificates of deposit, which are described further below), Travelers Cheques and other prepaid products outstanding, accounts payable, short-term borrowings and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate. Financial Liabilities Carried At Other Than Fair Value Certificates of Deposit Certificates of deposit (CDs) are recorded at their historical issuance cost on the Consolidated Balance Sheets. Fair value is estimated using a discounted cash flow methodology based on the future cash flows and the discount rate that reflects the current market rates for similar types of CDs within similar markets. Long-term Debt Long-term debt is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for (i) unamortized discount and unamortized fees, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. The fair value of our long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flows of each instrument at rates currently observed in publicly-traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly traded debt markets of similar terms and comparable credit risk, we use market interest rates and adjust those rates for necessary risks, including our own credit risk. In determining an appropriate spread to reflect our credit standing, we consider credit default swap spreads, bond yields of other long-term debt offered by us, and interest rates currently offered to us for similar debt instruments of comparable maturities. NONRECURRING FAIR VALUE MEASUREMENTS We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. During the years ended December 31, 2021 and 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 December 31, 2021 and 2020, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded net unrealized gains of $727 million, $93 million and $80 million for the years ended December 31, 2021, 2020 and 2019, respectively. Unrealized losses including any impairments were not significant for each of the years ended December 31, 2021, 2020 and 2019. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $347 million as of December 31, 2021 and 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 December 31, 2021 and 2020. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 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 $24 million, respectively, as of both December 31, 2021 and 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. |
Common and Preferred Shares
Common and Preferred Shares | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Common and Preferred Shares | COMMON AND PREFERRED SHARES The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2021 2020 2019 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 805 810 847 Repurchases of common shares (46) (7) (40) Other, primarily stock option exercises and restricted stock awards granted 2 2 3 Shares issued and outstanding as of December 31 761 805 810 (a) Of the common shares authorized but unissued as of December 31, 2021, approximately 21 million shares are reserved for issuance under employee stock and employee benefit plans. On September 23, 2019, the Board of Directors authorized the repurchase of up to 120 million common shares from time to time, subject to market conditions and in accordance with our capital plans. This authorization replaced the prior repurchase authorization and does not have an expiration date. During 2021, 2020 and 2019, we repurchased 46 million common shares with a cost basis of $7.6 billion, 7 million common shares with a cost basis of $0.9 billion, and 40 million common shares with a cost basis of $4.6 billion, respectively. The cost basis includes commissions paid of $5.6 million, $1.0 million and $6.2 million in 2021, 2020 and 2019, respectively. As of December 31, 2021, we had approximately 56 million common shares remaining under the Board share repurchase authorization. Common shares are generally retired by us upon repurchase (except for 2.5 million shares held as treasury shares as of both December 31, 2021 and 2020 and 2.6 million shares held as treasury shares as of December 31, 2019); retired common shares and treasury shares are excluded from the shares outstanding in the table above. The treasury shares, with a cost basis of $271 million, $279 million and $292 million as of December 31, 2021, 2020 and 2019, respectively, are included as a reduction to Additional paid-in capital in Shareholders’ equity on the Consolidated Balance Sheets. PREFERRED SHARES The Board of Directors is authorized to permit us to issue up to 20 million preferred shares at a par value of $1.66 2/3 without further shareholder approval. We have the following perpetual Fixed Rate Reset Noncumulative Preferred Share series issued and outstanding as of December 31, 2021: Series D Issuance date August 3, 2021 Securities issued 1,600 Preferred shares; represented by 1,600,000 depositary shares Dividend rate per annum 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 Quarterly beginning September 15, 2021 Earliest redemption date September 15, 2026 Aggregate liquidation preference $1,600 million Carrying value (a) $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 takes 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 the 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 earliest redemption date, or in whole, but not in part, within 90 days of certain bank regulatory changes. We paid $850 million to redeem in full the outstanding 4.900% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series C, on September 15, 2021 and paid $750 million to redeem in full the outstanding 5.200% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series B on November 15, 2021. The difference between the redemption value and carrying value of the redeemed Series C and Series B preferred shares resulted in a $16 million reduction to net income available to common shareholders. There were no warrants issued and outstanding as of December 31, 2021, 2020 and 2019. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 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 a balance sheet item in Shareholders’ equity on the Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows: (Millions) , net of tax Net Unrealized Gains (Losses) on Debt Foreign Currency Net Unrealized Pension Accumulated Other Balances as of December 31, 2018 $ (8) $ (2,133) $ (456) $ (2,597) Net unrealized gains 41 — — 41 Net translation on investments in foreign operations — 84 — 84 Net hedges of investments in foreign operations — (140) — (140) Pension and other postretirement benefits — — (125) (125) Net change in accumulated other comprehensive income (loss) 41 (56) (125) (140) Balances as of December 31, 2019 33 (2,189) (581) (2,737) Net unrealized gains 32 — — 32 Net translation on investments in foreign operations — 213 — 213 Net hedges of investments in foreign operations — (253) — (253) Pension and other postretirement benefits — (150) (150) Net change in accumulated other comprehensive income (loss) 32 (40) (150) (158) Balances as of December 31, 2020 65 (2,229) (731) (2,895) Net unrealized losses (42) — — (42) Net translation on investments in foreign operations — (339) — (339) Net hedges of investments in foreign operations — 176 — 176 Pension and other postretirement benefits — — 155 155 Net change in accumulated other comprehensive income (loss) (42) (163) 155 (50) Balances as of December 31, 2021 $ 23 $ (2,392) $ (576) $ (2,945) The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2021 2020 2019 Net unrealized (losses) gains on debt securities $ (13) $ 9 $ 12 Net translation on investments in foreign operations (1) 17 24 Net hedges of investments in foreign operations 52 (79) (43) Pension and other postretirement benefits 52 (28) (38) Total tax impact $ 90 $ (81) $ (45) Reclassifications out of AOCI into the Consolidated Statements of Income, net of taxes, were not significant for the years ended December 31, 2021, 2020, and 2019. |
Other Fees and Commissions and
Other Fees and Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 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 years ended December 31: (Millions) 2021 2020 2019 Fees charged to Card Members: Delinquency fees $ 637 $ 772 $ 1,028 Foreign currency conversion fee revenue 523 433 982 Other customer fees: Loyalty coalition-related fees 508 435 456 Travel commissions and fees 244 102 424 Service fees and other (a) 480 421 407 Total Other fees and commissions $ 2,392 $ 2,163 $ 3,297 (a) Other includes Membership Rewards program fees that are not related to contracts with customers. The following is a detail of Other expenses for the years ended December 31: (Millions) 2021 2020 2019 Data processing and equipment (a) $ 2,431 $ 2,334 $ 2,168 Professional services 1,958 1,789 2,091 Net unrealized and realized gains on Amex Ventures equity investments (767) (152) (77) Other (b) 1,195 1,354 1,674 Total Other expenses $ 4,817 $ 5,325 $ 5,856 (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, non-income taxes, communication expenses, Card Member and merchant-related fraud losses, foreign currency-related gains and losses and litigation expenses. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring | RESTRUCTURING We periodically initiate restructuring programs to support new business strategies and to enhance our overall effectiveness and efficiency. In connection with these programs, we will typically incur severance and other exit costs. We had $67 million, $197 million and $135 million accrued in total restructuring reserves as of December 31, 2021, 2020 and 2019, respectively. New charges, including net revisions to existing restructuring reserves, which primarily relate to the redeployment of displaced colleagues to other positions, were $(10) million for the year ended December 31, 2021 and $125 million for each of the years ended December 31, 2020 and 2019, respectively. Cumulatively, we recognized $223 million relating to the restructuring programs that were in progress during 2021 and initiated at various dates between 2019 and 2020, the majority of which has been reflected within Corporate & Other. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2021 2020 2019 Current income tax expense: U.S. federal $ 1,656 $ 1,122 $ 1,108 U.S. state and local 351 339 276 Non-U.S. 328 639 437 Total current income tax expense 2,335 2,100 1,821 Deferred income tax (benefit) expense: U.S. federal 231 (931) (58) U.S. state and local 22 (119) (31) Non-U.S. 41 111 (62) Total deferred income tax (benefit) expense 294 (939) (151) Total income tax expense $ 2,629 $ 1,161 $ 1,670 A reconciliation of the U.S. federal statutory rate of 21 percent as of December 31, 2021, 2020 and 2019, to our actual income tax rate was as follows: 2021 2020 2019 U.S. statutory federal income tax rate 21.0 % 21.0 % 21.0 % (Decrease) increase in taxes resulting from: Tax credits and tax-exempt income (a) (0.1) (4.1) (1.9) State and local income taxes, net of federal benefit 3.0 3.7 2.8 Non-U.S. subsidiaries' earnings 1.1 2.4 (0.5) Tax settlements (0.1) (0.3) (0.3) Valuation allowances — 4.0 (0.2) Other (0.3) 0.3 (1.1) Actual tax rates 24.6 % 27.0 % 19.8 % (a) Includes the implementation of PAM related to investments in QAH projects for the year ended December 31, 2021. Refer to Note 1 for further information. We record a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2021 2020 Deferred tax assets: Reserves not yet deducted for tax purposes $ 3,637 $ 3,905 Employee compensation and benefits 359 383 Net operating loss and tax credit carryforwards 398 399 Other 809 765 Gross deferred tax assets 5,203 5,452 Valuation allowance (472) (418) Deferred tax assets after valuation allowance 4,731 5,034 Deferred tax liabilities: Intangibles and fixed assets 1,320 1,433 Deferred revenue 189 252 Deferred interest 133 148 Investment in joint ventures 183 135 Other 521 366 Gross deferred tax liabilities 2,346 2,334 Net deferred tax assets $ 2,385 $ 2,700 The net operating loss and tax credit carryforward balance as of December 31, 2021, shown in the table above, is related to pre-tax U.S. federal and non-U.S. net operating loss (NOL) carryforwards of $84 million and $910 million, respectively, and foreign tax credit (FTC) carryforwards of $110 million. If not utilized, certain U.S. federal and non-U.S. NOL carryforwards will expire between 2022 and 2037, whereas others have an unlimited carryforward period. The FTC carryforwards will expire between 2029 and 2031. A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances for both periods presented above are associated with certain non-U.S. deferred tax assets and FTC carryforwards. Accumulated earnings of certain non-U.S. subsidiaries, which totaled approximately $1.0 billion as of December 31, 2021, are intended to be permanently reinvested outside the U.S. We do not provide for state income and foreign withholding taxes on foreign earnings intended to be permanently reinvested outside the U.S. Accordingly, state income and foreign withholding taxes, which would have aggregated to approximately $0.1 billion as of December 31, 2021, have not been provided on those earnings. Net income taxes paid by us during 2021, 2020 and 2019, were approximately $1.6 billion, $2.2 billion and $1.7 billion, respectively. These amounts include estimated tax payments and cash settlements relating to prior tax years. We are subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which we operate. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, we must make judgments in assessing the likelihood that a tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position. A tax position is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. We adjust the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. We are under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which we have significant business operations. The tax years under examination and open for examination vary by jurisdiction. We are currently under examination by the IRS for the 2017 and 2018 tax years. The following table presents changes in unrecognized tax benefits: (Millions) 2021 2020 2019 Balance, January 1 $ 790 $ 726 $ 701 Increases: Current year tax positions 64 57 66 Tax positions related to prior years 225 105 78 Effects of foreign currency translations — — 10 Decreases: Tax positions related to prior years (14) (24) (14) Settlements with tax authorities (15) (15) (40) Lapse of statute of limitations (17) (58) (75) Effects of foreign currency translations (9) (1) — Balance, December 31 $ 1,024 $ 790 $ 726 Included in the unrecognized tax benefits of $1.0 billion, $0.8 billion and $0.7 billion for December 31, 2021, 2020 and 2019, respectively, are approximately $780 million, $580 million and $623 million, respectively, that, if recognized, would favorably affect the effective tax rate in a future period. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next twelve months by as much as $167 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 $167 million of unrecognized tax benefits, approximately $132 million relates to amounts that, if recognized, would impact the effective tax rate in a future period. Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. For the years ended December 31, 2021, 2020 and 2019, we recognized approximately $40 million, $260 million, and $5 million, respectively, in expenses for interest and penalties. We had approximately $380 million and $350 million accrued for the payment of interest and penalties as of December 31, 2021 and 2020, respectively. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | EARNINGS PER COMMON SHARE (EPS) The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2021 2020 2019 Numerator: Basic and diluted: Net income $ 8,060 $ 3,135 $ 6,759 Preferred dividends (71) (79) (81) Equity-related adjustments (a) (16) — — Net income available to common shareholders 7,973 3,056 6,678 Earnings allocated to participating share awards (b) (56) (20) (47) Net income attributable to common shareholders $ 7,917 $ 3,036 $ 6,631 Denominator: (b) Basic: Weighted-average common stock 789 805 828 Add: Weighted-average stock options (c) 1 1 2 Diluted 790 806 830 Basic EPS $ 10.04 $ 3.77 $ 8.00 Diluted EPS $ 10.02 $ 3.77 $ 7.99 (a) Represents the difference between the redemption value and carrying value of the Series C and Series B preferred shares, which were redeemed on September 15, 2021 and November 15, 2021, respectively. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the 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, 0.53 million and 0.20 million of options for the years ended December 31, 2021, 2020 and 2019, respectively, because inclusion of the options would have been anti-dilutive. |
Regulatory Matters and Capital
Regulatory Matters and Capital Adequacy | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Regulatory Matters and Capital Adequacy | REGULATORY MATTERS AND CAPITAL ADEQUACY We are supervised and regulated by the Board of Governors of the Federal Reserve System (the Federal Reserve) and are subject to the Federal Reserve’s requirements for risk-based capital and leverage ratios. Our U.S. bank subsidiary, American Express National Bank (AENB), is subject to supervision and regulation, including regulatory capital and leverage requirements, by the Office of the Comptroller of the Currency (OCC). Under the risk-based capital guidelines of the Federal Reserve, we are required to maintain minimum ratios of CET1, Tier 1 and Total (Tier 1 plus Tier 2) capital to risk-weighted assets, as well as a minimum Tier 1 leverage ratio (Tier 1 capital to average adjusted on-balance sheet assets). Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional, discretionary actions by regulators, that, if undertaken, could have a direct material effect on our operating activities. As of December 31, 2021 and 2020, we met all capital requirements to which we were subject and maintained regulatory capital ratios in excess of those required to qualify as well capitalized. The following table presents the regulatory capital ratios: (Millions, except percentages) CET 1 Tier 1 capital Total capital CET 1 capital Tier 1 capital Total capital Tier 1 leverage December 31, 2021: (a) American Express Company $ 17,554 $ 19,186 $ 21,506 10.5 % 11.5 % 12.9 % 10.5 % American Express National Bank $ 13,085 $ 13,085 $ 15,283 11.8 % 11.8 % 13.7 % 10.5 % December 31, 2020: (a) American Express Company $ 18,693 $ 20,277 $ 22,385 13.5 % 14.7 % 16.2 % 11.0 % American Express National Bank $ 14,617 $ 14,617 $ 16,578 16.2 % 16.2 % 18.3 % 10.9 % Well-capitalized ratios (b) American Express Company N/A 6.0 % 10.0 % N/A American Express National Bank 6.5 % 8.0 % 10.0 % 5.0 % Minimum capital ratios (c) 4.5 % 6.0 % 8.0 % 4.0 % Effective Minimum (d) American Express Company 7.0 % 8.5 % 10.5 % 4.0 % American Express National Bank 7.0 % 8.5 % 10.5 % 4.0 % (a) Capital ratios reported using Basel III capital definitions and risk-weighted assets using the Basel III standardized approach. (b) Represents requirements for bank holding companies and banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Reserve Regulation Y and the Federal Deposit Insurance Corporation Improvement Act, respectively. There is no CET1 capital ratio or Tier 1 leverage ratio requirement for a bank holding company to be considered “well capitalized.” (c) As defined by the regulations issued by the Federal Reserve and OCC. (d) Represents Basel III minimum capital requirement and applicable regulatory buffers as defined by the federal banking regulators, which includes the stress capital buffer for American Express Company and the capital conservation buffer for American Express National Bank. RESTRICTED NET ASSETS OF SUBSIDIARIES Certain of our subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on our shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2021, the aggregate amount of net assets of subsidiaries that are restricted to be transferred was approximately $10.0 billion. BANK HOLDING COMPANY DIVIDEND RESTRICTIONS We are limited in our ability to pay dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and maintain a capital plan, which includes planned dividends over a two-year horizon. We may be subject to limitations and restrictions on our dividends, if, among other things, (i) our regulatory capital ratios do not satisfy applicable minimum requirements and buffers or (ii) we are required to resubmit our capital plan. BANK DIVIDEND RESTRICTIONS In the year ended December 31, 2021, AENB paid dividends from retained earnings to its parent of $8.1 billion. AENB is limited in its ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as AENB, from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy standards. If AENB’s risk-based capital ratios do not satisfy minimum regulatory requirements and applicable buffers, it will face graduated constraints on dividends and other capital distributions. As of December 31, 2021, AENB's retained earnings available for the payment of dividends was $3.6 billion. In determining the dividends to pay its parent, AENB must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, AENB's banking regulators have authority to limit or prohibit the payment of a dividend by AENB under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Significant Credit Concentratio
Significant Credit Concentrations | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Significant Credit Concentrations | SIGNIFICANT CREDIT CONCENTRATIONS Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express’ total credit exposure. Our customers operate in diverse industries, economic sectors and geographic regions. The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2021 2020 Individuals (a) $ 131 $ 108 Financial services (b) 24 34 U.S. Government and agencies (c) 2 22 Institutions (d) 15 13 Total on-balance sheet $ 172 $ 177 (a) Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. (b) Represents banks, broker-dealers, insurance companies and savings and loan associations. (c) Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. (d) Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. As of December 31, 2021 and 2020, our most significant concentration of credit risk was with individuals, including Card Member loans and receivables. These amounts are generally advanced on an unsecured basis. However, we review each potential customer’s credit application and evaluate the applicant’s financial history and ability and willingness to repay. We also consider credit performance by customer tenure, industry and geographic location in managing credit exposure. The following table details our Card Member loans and receivables exposure (including unused lines-of-credit available to Card Members as part of established lending product agreements) in the United States and outside the United States as of December 31: (Billions) 2021 2020 On-balance sheet: U.S. $ 115 $ 95 Non-U.S. 27 22 On-balance sheet 142 117 Unused lines-of-credit: (a) U.S. 261 251 Non-U.S. 66 63 Total unused lines-of-credit $ 327 $ 314 (a) Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Our charge card products generally have no pre-set spending limit, and therefore are not reflected in unused credit available to Card Members. |
Reportable Operating Segments a
Reportable Operating Segments and Geographic Operations | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments and Geographic Operations | REPORTABLE OPERATING SEGMENTS AND GEOGRAPHIC OPERATIONS REPORTABLE OPERATING SEGMENTS We consider a combination of factors when evaluating the composition of our reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. The following is a brief description of the primary business activities of our three reportable operating segments: • Global Consumer Services Group (GCSG) primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel and lifestyle services and non-card financing products, and manages certain international joint ventures, our partnership agreements in China and our loyalty coalition businesses operated in certain countries. • Global Commercial Services (GCS) primarily issues a wide range of proprietary corporate and small business cards globally. GCS also provides payment, expense management and financing solutions to businesses. • Global Merchant and Network Services (GMNS) operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS manages our partnership relationships with third-party card issuers, merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network. Corporate functions and certain other businesses and operations are included in Corporate & Other. As a result of organizational changes announced during the second quarter of 2021, our loyalty coalition businesses results, which were previously reported within the GMNS segment, are now reported within the 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 years ended December 31, 2021, 2020 and 2019: (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated 2021 Total non-interest revenues $ 18,157 $ 11,489 $ 4,964 $ 20 $ 34,630 Revenue from contracts with customers (b) 13,047 9,863 4,635 171 27,716 Interest income 7,391 1,460 16 166 9,033 Interest expense 717 449 (92) 209 1,283 Total revenues net of interest expense 24,831 12,500 5,072 (23) 42,380 Pretax income (loss) 6,826 2,928 1,949 (1,014) 10,689 Total assets (billions) $ 102 $ 53 $ 15 $ 19 $ 189 2020 Total non-interest revenues $ 14,632 $ 9,652 $ 4,143 $ (325) $ 28,102 Revenue from contracts with customers (b) 9,974 8,145 3,882 (27) 21,974 Interest income 8,199 1,586 18 280 10,083 Interest expense 1,054 619 (82) 507 2,098 Total revenues net of interest expense 21,777 10,619 4,243 (552) 36,087 Pretax income (loss) 3,687 936 1,315 (1,642) 4,296 Total assets (billions) $ 87 $ 42 $ 14 $ 48 $ 191 2019 Total non-interest revenues $ 17,178 $ 12,242 $ 5,428 $ 88 $ 34,936 Revenue from contracts with customers (b) 12,555 10,633 4,965 6 28,159 Interest income 9,414 1,900 27 743 12,084 Interest expense 1,731 1,034 (303) 1,002 3,464 Total revenues net of interest expense 24,861 13,108 5,758 (171) 43,556 Pretax income (loss) 4,845 2,692 2,685 (1,793) 8,429 Total assets (billions) $ 107 $ 53 $ 17 $ 21 $ 198 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes discount revenue, certain other fees and commissions and other revenues from customers. Total Revenues Net of Interest Expense We allocate discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the GCSG and GCS segments, discount revenue generally reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue. Net card fees and other fees and commissions are directly attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment funding requirements and internal funding rates. Provisions for Credit Losses The provisions for credit losses are directly attributable to the segment in which they are reported. Expenses Marketing and business development expense is included in each segment based on the actual expenses incurred. Global brand advertising is primarily allocated to the segments based on the relative levels of revenue. Rewards and Card Member services expenses are included in each segment based on the actual expenses incurred. Salaries and employee benefits and other operating expenses reflect both costs incurred directly within each segment, as well as allocated expenses. The allocated expenses include service costs allocated based on activities directly attributable to the segment, and overhead expenses allocated based on the relative levels of revenue and Card Member loans and receivables. GEOGRAPHIC OPERATIONS The following table presents our total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment: (Millions) United States EMEA (a) APAC (a) LACC (a) Other Unallocated (b) Consolidated 2021 Total revenues net of interest expense $ 33,103 $ 3,643 $ 3,418 $ 2,238 $ (22) $ 42,380 Pretax income (loss) from continuing operations 9,512 705 707 782 (1,017) 10,689 2020 Total revenues net of interest expense $ 28,263 $ 3,087 $ 3,271 $ 2,019 $ (553) $ 36,087 Pretax income (loss) from continuing operations 4,418 398 665 452 (1,638) 4,296 2019 Total revenues net of interest expense $ 32,629 $ 4,388 $ 3,934 $ 2,776 $ (171) $ 43,556 Pretax income (loss) from continuing operations 7,302 1,177 853 884 (1,787) 8,429 (a) EMEA represents Europe, the Middle East and Africa; APAC represents Asia Pacific, Australia and New Zealand; and LACC represents Latin America, Canada and the Caribbean. (b) Other Unallocated includes net costs which are not directly allocated to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company | PARENT COMPANY PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2021 2020 2019 Revenues Non-interest revenues Other $ 343 $ 480 $ 598 Total non-interest revenues 343 480 598 Interest income 96 228 692 Interest expense 482 630 902 Total revenues net of interest expense (43) 78 388 Expenses Salaries and employee benefits 359 333 366 Other 346 562 816 Total expenses 705 895 1,182 Pretax loss (748) (817) (794) Income tax benefit (248) (236) (282) Net loss before equity in net income of subsidiaries and affiliates (500) (581) (512) Equity in net income of subsidiaries and affiliates 8,560 3,716 7,271 Net income $ 8,060 $ 3,135 $ 6,759 PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2021 2020 Assets Cash and cash equivalents $ 5,341 $ 10,968 Equity in net assets of subsidiaries and affiliates 22,623 23,306 Loans to subsidiaries and affiliates 17,848 15,887 Due from subsidiaries and affiliates 1,207 1,084 Other assets 158 164 Total assets 47,177 51,409 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 2,107 1,743 Due to subsidiaries and affiliates 443 1,100 Debt with subsidiaries and affiliates 136 2,772 Long-term debt 22,314 22,810 Total liabilities 25,000 28,425 Shareholders’ Equity Total shareholders’ equity 22,177 22,984 Total liabilities and shareholders’ equity $ 47,177 $ 51,409 PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2021 2020 2019 Cash Flows from Operating Activities Net income $ 8,060 $ 3,135 $ 6,759 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (8,560) (3,716) (7,271) Dividends received from subsidiaries and affiliates 9,102 2,679 6,370 Other operating activities, primarily with subsidiaries and affiliates (305) 732 1,315 Net cash provided by operating activities 8,297 2,830 7,173 Cash Flows from Investing Activities Maturities and redemptions of investment securities — — 1 (Increase) decrease in loans to subsidiaries and affiliates (176) 11,434 (4,405) Investments in subsidiaries and affiliates (60) (52) (15) Other investing activities — 74 82 Net cash (used in) provided by investing activities (236) 11,456 (4,337) Cash Flows from Financing Activities Net decrease in short-term debt from subsidiaries and affiliates (2,636) (3,289) (1,500) Proceeds from long-term debt 3,000 — 6,469 Payments of long-term debt (5,000) (2,000) (641) Issuance of American Express preferred shares 1,584 — — Redemption of American Express preferred shares (1,600) — — Issuance of American Express common shares 64 44 86 Repurchase of American Express common shares and other (7,652) (1,029) (4,685) Dividends paid (1,448) (1,474) (1,422) Net cash used in financing activities (13,688) (7,748) (1,693) Net (decrease) increase in cash and cash equivalents (5,627) 6,538 1,143 Cash and cash equivalents at beginning of year 10,968 4,430 3,287 Cash and cash equivalents at end of year $ 5,341 $ 10,968 $ 4,430 Supplemental cash flow information Years Ended December 31 (Millions) 2021 2020 2019 Non-Cash Investing Activities Loans to subsidiaries and affiliates $ (1,787) $ (4,971) $ — Non-Cash Financing Activities Short-term debts from subsidiaries and affiliates — 4,971 — Proceeds from long-term debt $ 1,787 $ — $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant intercompany transactions are eliminated. We consolidate entities in which we hold a “controlling financial interest.” For voting interest entities, we are considered to hold a controlling financial interest when we are able to exercise control over the investees’ operating and financial decisions. For variable interest entities (VIEs), the determination of which is based on the amount and characteristics of the entity’s equity, we are considered to hold a controlling financial interest when we are determined to be the primary beneficiary. A primary beneficiary is the party that has both: (1) the power to direct the activities that most significantly impact that VIE’s economic performance, and (2) the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE. |
Foreign Currency | FOREIGN CURRENCY Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of the reporting period; non-monetary assets and liabilities are translated at the historic exchange rate at the date of the transaction; revenues and expenses are translated at the average month-end exchange rates during the year. Resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity. Translation adjustments, including qualifying hedge and tax effects, are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Gains and losses related to transactions in a currency other than the functional currency are reported in Other, net expenses in the Consolidated Statements of Income. |
Amounts Based on Estimates and Assumptions | AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management’s assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for Card Member credit losses on loans and receivables, Membership Rewards liability, goodwill and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. |
Total Revenue Net of Interest Expense | Discount Revenue Discount revenue primarily represents the amount we earn on transactions occurring at merchants that have entered into a card acceptance agreement with us, or a Global Network Services (GNS) partner or other third-party merchant acquirer, for facilitating transactions between the merchants and Card Members. The amount of fees charged for accepting our cards as payment for goods or services, or merchant discount, varies with, among other factors, the industry in which the merchant conducts business, the merchant’s overall American Express-related transaction volume, the method of payment, the settlement terms with the merchant, the method of submission of transactions and, in certain instances, the geographic scope of the card acceptance agreement between the merchant and us (e.g., local or global) and the transaction amount. The merchant discount is generally deducted from the payment to the merchant and recorded as discount revenue at the time the Card Member transaction occurs. The card acceptance agreements, which include the agreed-upon terms for charging the merchant discount fee, vary in duration. Our contracts with small- and medium-sized merchants generally have no fixed contractual duration, while those with large merchants are generally for fixed periods, which typically range from three In cases where the merchant acquirer is a third party (which is the case, for example, under our OptBlue program, or with certain of our GNS partners), we receive a network rate fee in our settlement with the merchant acquirer, which is individually negotiated between us and that merchant acquirer and is recorded as discount revenue at the time the Card Member transaction occurs. In our role as the operator of the American Express network, we also settle with merchants on behalf of our GNS card issuing partners, who in turn receive an issuer rate that is individually negotiated between that issuer and us and is recorded as expense in Marketing and business development (see below) or as contra-revenue in Other revenue. Revenue expected to be recognized in future periods related to contracts that have an original expected duration of one year or less and contracts with variable consideration (e.g. discount revenue) is not required to be disclosed. Non-interest revenue expected to be recognized in future periods through remaining contracts with customers is not material. Net Card Fees Net card fees represent revenue earned from annual card membership fees, which vary based on the type of card and the number of cards for each account. These fees, net of acquisition costs and a reserve for projected refunds for Card Member cancellations, are deferred and recognized on a straight-line basis over the twelve-month card membership period as Net card fees in the Consolidated Statements of Income and are therefore more stable in relation to short term business or economic shifts. The unamortized net card fee balance is reported in Other liabilities on the Consolidated Balance Sheets. 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. Other Fees and Commissions Other fees and commissions includes certain fees charged to Card Members, including delinquency fees and foreign currency conversion fees, which are primarily recognized in the period in which they are charged to the Card Member. Other fees and commissions also includes Membership Rewards program fees, which are deferred and recognized over the period covered by the fee, typically one year, the unamortized portion of which is included in Other liabilities on the Consolidated Balance Sheets. In addition, Other fees and commissions includes loyalty coalition-related fees, travel commissions and fees and service fees earned from merchants, that are recognized when the service is performed, which is generally in the period the fee is charged. Refer to Note 18 for additional information. Contra-revenue Payments made pursuant to contractual arrangements with our merchants, GNS partners, and other customers are classified as contra-revenue, except where we receive goods, services or other benefits for which the fair value is determinable and measurable, in which case they are recorded as expense. Interest Income Interest on Card Member loans is assessed using the average daily balance method. Unless the loan is classified as non-accrual, interest is recognized based upon the principal amount outstanding, in accordance with the terms of the applicable account agreement, until the outstanding balance is paid, or written off. Interest and dividends on investment securities primarily relate to our performing fixed-income securities. Interest income is recognized as earned using the effective interest method, which adjusts the yield for security premiums and discounts, fees and other payments, so that a constant rate of return is recognized on the investment security’s outstanding balance. Amounts are recognized until securities are in default or when it becomes likely that future interest payments will not be made as scheduled. Interest on deposits with banks and other is recognized as earned, and primarily relates to the placement of cash, in excess of near-term funding requirements, in interest-bearing time deposits, overnight sweep accounts, and other interest-bearing demand and call accounts. Interest Expense Interest expense includes interest incurred primarily to fund Card Member loans and receivables, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided principally into two categories: (i) deposits, which primarily relates to interest expense on deposits taken from customers and institutions, and (ii) debt, which primarily relates to interest expense on our long-term debt and short-term borrowings, as well as the realized impact of derivatives used to hedge interest rate risk on our long-term debt. |
Expenses | Marketing and Business Development Marketing and business development expense includes costs incurred in the development and initial placement of advertising, which are expensed in the year in which the advertising first takes place. Also included in Marketing and business development expense are payments to our cobrand partners, Card Member statement credits and promotional rewards-based incentives for qualifying charges on eligible card accounts, corporate client incentive payments earned on achievement of pre-set targets, and certain payments to GNS partners. These costs are generally expensed as incurred. Card Member Rewards We issue charge and credit cards that allow Card Members to participate in various rewards programs (e.g., Membership Rewards, cash back and cobrand). Rewards expense is recognized in the period Card Members earn rewards, generally by spending on their enrolled card products. For Membership Rewards and cash back, we record a liability that represents the rewards that are expected to be redeemed, as well as, for Membership Rewards, the estimated cost of points earned. For cobrand, we record a liability based primarily on rewards earned on Card Member spending on cobrand cards, and make associated payments to our cobrand partners. The partner is liable for providing rewards to the Card Member under the cobrand partner’s own loyalty program. Card Member rewards liabilities are impacted over time by enrollment levels, attrition, the volume of points earned and redeemed, and the associated redemption costs. Changes in the Card Member rewards liabilities during the period are taken as an increase or decrease to the Card Member rewards expense in the Consolidated Statements of Income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and amounts due from banks, interest-bearing bank balances, including securities purchased under resale agreements, restricted cash, and other highly liquid investments with original maturities of 90 days or less. Restricted cash primarily represents amounts related to Card Member credit balances as well as upcoming debt maturities of consolidated VIEs. |
Goodwill | Goodwill Goodwill represents the excess of the acquisition cost of an acquired business over the fair value of assets acquired and liabilities assumed. We allocate goodwill to our reporting units for the purpose of impairment testing. A reporting unit is defined as an operating segment, or a business that is one level below an operating segment, for which discrete financial information is regularly reviewed by the operating segment manager. We evaluate goodwill for impairment annually as of June 30, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of one or more of our reporting units below its carrying value. Prior to completing the assessment of goodwill for impairment, we also perform a recoverability test of certain long-lived assets. We have the option to perform a qualitative assessment of goodwill impairment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Alternatively, we can perform a more detailed quantitative assessment of goodwill impairment. This qualitative assessment entails the evaluation of factors such as economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other company and reporting unit-specific events. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we then perform the impairment evaluation using the quantitative assessment. The quantitative assessment compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds the reporting unit's fair value, an impairment loss is recognized for the amount over and above the reporting unit's fair value. When measuring the fair value of our reporting units in the quantitative assessment, we use widely accepted valuation techniques, applying a combination of the income approach (discounted cash flows) and market approach (market multiples). When preparing discounted cash flow models under the income approach, we use internal forecasts to estimate future cash flows expected to be generated by the reporting units. To discount these cash flows, we use the expected cost of equity, determined by using a capital asset pricing model. We believe the discount rates appropriately reflect the risks and uncertainties in the financial markets generally and specifically in our internally-developed forecasts. When using market multiples under the market approach, we apply comparable publicly traded companies’ multiples (e.g., earnings or revenues) to our reporting units’ actual results. For the years ended December 31, 2021 and 2020, we performed a qualitative assessment in connection with our annual goodwill impairment evaluation and determined that it was more likely than not that the fair values of each of our reporting units exceeded their carrying values. OTHER INTANGIBLE ASSETS Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years for equipment, furniture and building improvements, and from 40 to 50 years for premises, which are depreciated based upon their estimated useful life at the acquisition date. Certain costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Premises and equipment. Once the specific software feature is ready for its intended use, these costs are amortized on a straight-line basis over the software’s estimated useful life, generally 5 years. We review these assets for impairment using the same impairment methodology used for our intangible assets. Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility, or the economic life of the improvement, and range from 5 to 10 years. We recognize lease restoration obligations at the fair value of the restoration liabilities when incurred and amortize the restoration assets over the lease term. |
Leases | Leases We have operating leases worldwide for facilities and equipment, which, for those leases with terms greater than 12 months, are recorded as lease-related assets and liabilities. We do not separate lease and non-lease components. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs and lease incentives. Lease liabilities are recognized at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate as of the lease commencement date or upon modification of the lease. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. |
Classification of Various Items | CLASSIFICATION OF VARIOUS ITEMS Certain reclassifications of prior period amounts have been made to conform to the current period presentation. |
Recently Adopted Accounting Standards | RECENTLY ADOPTED ACCOUNTING STANDARDS Effective January 1, 2021, we elected to change our accounting for investments in qualified affordable housing (QAH) 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 year 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. Effective January 1, 2020, we adopted the new credit reserving methodology, applicable to certain financial instruments, known as the Current Expected Credit Loss (CECL) methodology resulting in an increase in the reserves for total loans and receivables credit losses on adoption, which was recorded under a modified retrospective transition with an offset to the opening balance of retained earnings. Refer to Note 3 for additional information on impact of adoption and how management estimates reserves for credit losses in accordance with the CECL methodology. |
Card Member Loans and Receivables, and Other Loans | CARD MEMBER AND OTHER LOANS Card Member loans are generally recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolve-eligible transactions on our card products, as well as any finance charges and associated card-related fees. Card Members with outstanding revolving loans are required to make a minimum monthly payment and the balances that Card Members choose to revolve are subject to finance charges. These loans have varying terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members, and in accordance with applicable regulations and the respective product’s terms and conditions. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued interest and fees. Our policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that we believe will not be collected. Other loans are recorded at the time any extension of credit is provided to consumer and commercial customers for non-card financing products. These loans have a range of fixed terms such as interest rates, fees and repayment periods. Borrowers are typically required to make pre-established monthly payments over the term of the loan. Non-card financing products are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans are presented on the Consolidated Balance Sheets net of reserves for credit losses, and include principal and any related accrued interest and fees. CARD MEMBER RECEIVABLES Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on our card products and card-related fees that need to be paid in full on or before the Card Member’s payment due date. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued fees. |
Impaired Loans and Receivables | 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.” Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is characterized as non-accrual in our TDR disclosures), (ii) placing the customer on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the customer exits the modification program. Upon entering the modification program, the customer’s ability to make future purchases is either limited, canceled, or in certain cases suspended until the customer successfully exits from the modification program. In accordance with the modification agreement with the customer, loans and/or receivables may revert back to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program. Reserves for modifications deemed TDRs are measured individually and incorporate a discounted cash flow model. All changes in the impairment measurement are included within provisions for credit losses. In response to the COVID-19 pandemic, the United States enacted legislation that provided the option to temporarily suspend (i) certain requirements under U.S. GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be treated as TDRs and (ii) any determination that a loan modified as a result of the COVID-19 pandemic is a TDR (including impairment for accounting purposes). Based on the nature of our programs, we have not elected the accounting and reporting relief afforded by this legislation and continue to report modifications as TDRs. In the first quarter of 2020, we created a Customer Pandemic Relief (CPR) program for customers who had been impacted by the COVID-19 pandemic to provide a concession in the form of payment deferrals and waivers of certain fees and interest. We assessed the CPR program and determined that eligible loan modifications were temporary in nature, for example, less than three months, and not considered TDRs. Our short-term CPR programs are no longer widely available and have no remaining balances in the program as of December 31, 2021. |
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, which became effective January 1, 2020, 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, even if such expected recoveries exceed expected losses. 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 each period 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 and incorporate a discounted cash flow model. See Note 2 for information on troubled debt restructurings. 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. Results for reporting periods beginning on and after January 1, 2020 are presented using the CECL methodology, while information as of and for the year ended December 31, 2019 continues to be reported in accordance with the incurred loss methodology then in effect. Reserves for credit losses under the incurred loss methodology were primarily based upon statistical and analytical models that analyzed portfolio performance and reflected management’s judgments regarding the quantitative components of the reserve. The models considered several factors, including delinquency-based loss migration rates, loss emergence periods and average losses and recoveries over an appropriate historical period. Similar to the CECL methodology, we considered whether to adjust the quantitative reserves for certain external and internal qualitative factors, which may increase or decrease the reserves for credit losses. |
Investment Securities | Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. The methodology for estimating credit losses for available for sale debt securities requires us to estimate lifetime credit losses for all available-for-sale debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, we assess the security’s credit indicators, including credit ratings. If our assessment indicates that an estimated credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the estimated credit loss through 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. |
Asset Securitizations | We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust (the Lending Trust) and American Express Issuance Trust II (the Charge Trust and together with the Lending Trust, the Trusts). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors. The Trusts are considered VIEs as they have insufficient equity at risk to finance their activities, which are to issue debt securities that are collateralized by the underlying Card Member loans and receivables. Refer to Note 1 for further details on the principles of consolidation. We perform the servicing and key decision making for the Trusts, and therefore have the power to direct the activities that most significantly impact the Trusts’ economic performance, which are the collection of the underlying Card Member loans and receivables. In addition, we hold all of the variable interests in both Trusts, with the exception of the debt securities issued to third-party investors. As of December 31, 2021 and 2020, our ownership of variable interests was $15.0 billion and $13.4 billion, respectively, for the Lending Trust and $3.2 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. The debt securities issued by the Trusts are non-recourse to us. The securitized Card Member loans and receivables held by the Lending Trust and the Charge Trust, respectively, are available only for payment of the debt securities or other obligations issued or arising in the securitization transactions (refer to Note 2). The long-term debt of each Trust is payable only out of collections on their respective underlying securitized assets (refer to Note 8). |
Other Assets | We account for our QAH investments using PAM, which we elected to implement on January 1, 2021 on a prospective basis, and other tax credit investments using the equity method of accounting. Refer to Note 1 for further information on the implementation of PAM |
Membership Rewards | MEMBERSHIP REWARDS The Membership Rewards program allows enrolled Card Members to earn points that can be redeemed for a broad variety of rewards including travel, shopping, gift cards, and covering eligible charges. We record a Membership Rewards liability that represents management’s best estimate of the cost of points earned that are expected to be redeemed by Card Members in the future. The weighted average cost (WAC) per point and the Ultimate Redemption Rate (URR) are key assumptions used to estimate the liability. We use statistical and actuarial models to estimate the URR based on redemption trends, card product type, enrollment tenure, card spend levels and credit attributes. The WAC per point assumption is derived from 12 months of redemptions and is adjusted as appropriate for certain changes in redemption costs that are not representative of future cost expectations and expected developments in redemption patterns. The expense for Membership Rewards points is included in Card Member rewards expense. We periodically evaluate our liability estimation process and assumptions based on developments in redemption patterns, cost per point redeemed, partner contract changes and other factors. |
Stock-based Compensation | Stock-based compensation expense is generally recognized ratably based on the grant-date fair value of the awards, net of expected forfeitures, over the vesting period. The vesting period is the shorter of the vesting schedule as defined in each award agreement or the date an individual will become eligible to retire. Retirement eligibility is dependent upon age and/or years of service.RSUs containing only service conditions generally vest 25 percent per year beginning with the first anniversary of the grant date. RSUs containing both service and performance conditions generally vest on the third anniversary of the grant date, and the number of shares earned depends on the achievement of predetermined Company metrics.In 2018, certain employees were awarded PGs and other incentive awards that can be settled with cash or equity shares at our discretion and final Compensation and Benefits Committee payout approval; beginning in 2019, we discontinued granting PGs. These awards earn value based on performance, market and/or service conditions, and vest over a period of three years. PGs and other incentive awards are generally settled with cash and thus are classified as liabilities; therefore, the fair value is determined at the date of grant and remeasured quarterly as part of compensation expense over the vesting period. |
Retirement Plans | We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the Consolidated Balance Sheets. |
Legal Contingencies | We have accrued for certain of our outstanding legal proceedings. An accrual is recorded when it is both (a) probable that a loss has occurred and (b) the amount of loss can be reasonably estimated. There may be instances in which an exposure to loss exceeds the accrual. We evaluate, on a quarterly basis, developments in legal proceedings that could cause an increase or decrease in the amount of the accrual that has been previously recorded, or a revision to the disclosed estimated range of possible losses, as applicable. For those disclosed 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 $170 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 Financial Instruments and Hedging Activities | A majority of our derivative assets and liabilities as of December 31, 2021 and 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. Our derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below.We formally assess, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, we will discontinue the application of hedge accounting.Gains or losses on the fair value hedging instrument principally offset the losses or gains on the hedged item attributable to the hedged risk.We primarily designate foreign currency derivatives as net investment hedges to reduce our exposure We have derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of designated currencies at an agreed upon rate for settlement on a specified date. We also have certain operating agreements containing payments that may be linked to a market rate or price, primarily foreign currency rates. The payment components of these agreements may meet the definition of an embedded derivative, in which case the embedded derivative is accounted for separately and is classified as a foreign exchange contract based on its primary risk exposure. |
Fair Value Measurements | We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly.We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired or where there are observable price changes for equity investments without readily determinable fair values. During the years ended December 31, 2021 and 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 December 31, 2021 and 2020, respectively. These amounts are included within Other assets on the Consolidated Balance Sheets. We recorded net unrealized gains of $727 million, $93 million and $80 million for the years ended December 31, 2021, 2020 and 2019, respectively. Unrealized losses including any impairments were not significant for each of the years ended December 31, 2021, 2020 and 2019. Since the adoption of new accounting guidance on the recognition and measurement of financial assets and financial liabilities on January 1, 2018, cumulative net unrealized gains for equity investments without readily determinable fair values totaled $1.1 billion and $347 million as of December 31, 2021 and 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 December 31, 2021 and 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. |
Income Taxes | We record a deferred income tax (benefit) provision when there are differences between assets and liabilities measured for financial reporting and for income tax return purposes. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the deferred tax assets will not be realized. The valuation allowances for both periods presented above are associated with certain non-U.S. deferred tax assets and FTC carryforwards.Interest and penalties relating to unrecognized tax benefits are reported in the income tax provision. |
Income Tax Uncertainties | The amount of benefit recognized for financial reporting purposes is based on management’s best judgment of the largest amount of benefit that is more likely than not to be realized on ultimate settlement with the taxing authority given the facts, circumstances and information available at the reporting date. We adjust the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. |
Regulatory Matters And Capital Adequacy | RESTRICTED NET ASSETS OF SUBSIDIARIES Certain of our subsidiaries are subject to restrictions on the transfer of net assets under debt agreements and regulatory requirements. These restrictions have not had any effect on our shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. As of December 31, 2021, the aggregate amount of net assets of subsidiaries that are restricted to be transferred was approximately $10.0 billion. BANK HOLDING COMPANY DIVIDEND RESTRICTIONS We are limited in our ability to pay dividends by the Federal Reserve, which could prohibit a dividend that would be considered an unsafe or unsound banking practice. It is the policy of the Federal Reserve that bank holding companies generally should pay dividends on preferred and common stock only out of net income available to common shareholders generated over the past year, and only if prospective earnings retention is consistent with the organization’s current and expected future capital needs, asset quality and overall financial condition. Moreover, bank holding companies are required by statute to be a source of strength to their insured depository institution subsidiaries and should not maintain dividend levels that undermine their ability to do so. On an annual basis, we are required to develop and maintain a capital plan, which includes planned dividends over a two-year horizon. We may be subject to limitations and restrictions on our dividends, if, among other things, (i) our regulatory capital ratios do not satisfy applicable minimum requirements and buffers or (ii) we are required to resubmit our capital plan. BANK DIVIDEND RESTRICTIONS In the year ended December 31, 2021, AENB paid dividends from retained earnings to its parent of $8.1 billion. AENB is limited in its ability to pay dividends by banking statutes, regulations and supervisory policy. In general, applicable federal and state banking laws prohibit, without first obtaining regulatory approval, insured depository institutions, such as AENB, from making dividend distributions if such distributions are not paid out of available retained earnings or would cause the institution to fail to meet capital adequacy standards. If AENB’s risk-based capital ratios do not satisfy minimum regulatory requirements and applicable buffers, it will face graduated constraints on dividends and other capital distributions. As of December 31, 2021, AENB's retained earnings available for the payment of dividends was $3.6 billion. In determining the dividends to pay its parent, AENB must also consider the effects on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies. In addition, AENB's banking regulators have authority to limit or prohibit the payment of a dividend by AENB under a number of circumstances, including if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound banking practice in light of the financial condition of the banking organization. |
Segment Reporting | We consider a combination of factors when evaluating the composition of our reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product distribution channels, geographic considerations (primarily United States versus outside the United States), and regulatory environment considerations. Total Revenues Net of Interest Expense We allocate discount revenue and certain other revenues among segments using a transfer pricing methodology. Within the GCSG and GCS segments, discount revenue generally reflects the issuer component of the overall discount revenue generated by each segment’s Card Members; within the GMNS segment, discount revenue generally reflects the network and acquirer component of the overall discount revenue. Net card fees and other fees and commissions are directly attributable to the segment in which they are reported. Interest and fees on loans and certain investment income is directly attributable to the segment in which it is reported. Interest expense represents an allocated funding cost based on a combination of segment funding requirements and internal funding rates. Provisions for Credit Losses The provisions for credit losses are directly attributable to the segment in which they are reported. Expenses Marketing and business development expense is included in each segment based on the actual expenses incurred. Global brand advertising is primarily allocated to the segments based on the relative levels of revenue. Rewards and Card Member services expenses are included in each segment based on the actual expenses incurred. Salaries and employee benefits and other operating expenses reflect both costs incurred directly within each segment, as well as allocated expenses. The allocated expenses include service costs allocated based on activities directly attributable to the segment, and overhead expenses allocated based on the relative levels of revenue and Card Member loans and receivables. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Other Significant Accounting Policies | The following table identifies our other significant accounting policies, along with the related Note. Significant Accounting Policy Note Note Title Loans and Card Member Receivables Note 2 Loans and Card Member Receivables Reserves for Credit Losses Note 3 Reserves for Credit Losses Investment Securities Note 4 Investment Securities Asset Securitizations Note 5 Asset Securitizations Legal Contingencies Note 12 Contingencies and Commitments Derivative Financial Instruments and Hedging Activities Note 13 Derivatives and Hedging Activities Fair Value Measurements Note 14 Fair Values Guarantees Note 15 Guarantees Income Taxes Note 20 Income Taxes |
Loans and Card Member Receiva_2
Loans and Card Member Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Receivables segment detail | Card Member loans by segment and Other loans as of December 31, 2021 and 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group (a) $ 70,467 $ 60,084 Global Commercial Services 18,095 13,289 Card Member loans 88,562 73,373 Less: Reserves for credit losses 3,305 5,344 Card Member loans, net $ 85,257 $ 68,029 Other loans, net (b) $ 2,859 $ 2,614 (a) Includes approximately $26.6 billion and $25.9 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2021 and 2020, respectively. (b) Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $36 million and $630 million of gross PPP loans outstanding as of December 31, 2021 and 2020, respectively. Other loans are presented net of reserves for credit losses of $52 million and $238 million as of December 31, 2021 and 2020, respectively. Card Member receivables by segment as of December 31, 2021 and 2020 consisted of: (Millions) 2021 2020 Global Consumer Services Group $ 22,392 $ 18,685 Global Commercial Services (a) 31,253 25,016 Card Member receivables 53,645 43,701 Less: Reserves for credit losses 64 267 Card Member receivables, net $ 53,581 $ 43,434 (a) Includes $5.2 billion and $4.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2021 and 2020, respectively. |
Aging of receivables | The following table presents the aging of Card Member loans and receivables as of December 31, 2021 and 2020: 2021 (Millions) Current 30-59 60-89 90+ Total Card Member Loans: Global Consumer Services Group $ 69,960 $ 158 $ 112 $ 237 $ 70,467 Global Commercial Services Global Small Business Services 17,950 34 19 37 18,040 Global Corporate Payments (a) (b) (b) (b) — 55 Card Member Receivables: Global Consumer Services Group 22,279 41 24 48 22,392 Global Commercial Services Global Small Business Services $ 17,846 $ 59 $ 28 $ 44 $ 17,977 Global Corporate Payments (a) (b) (b) (b) $ 42 $ 13,276 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 years ended December 31: 2021 2020 Net Write-Off Rate Net Write-Off Rate Principal Only (a) Principal, Interest & Fees (a) 30+ Principal Only (a) Principal, Interest & Fees (a) 30+ Card Member Loans: Global Consumer Services Group 0.9 % 1.3 % 0.7 % 2.5 % 3.0 % 1.1 % Global Small Business Services 0.6 % 0.8 % 0.5 % 2.1 % 2.4 % 0.7 % Card Member Receivables: Global Consumer Services Group 0.3 % 0.4 % 0.5 % 1.7 % 1.9 % 0.6 % Global Small Business Services 0.3 % 0.4 % 0.7 % 2.1 % 2.3 % 0.7 % Global Corporate Payments (d) (b) — % (c) (b) 1.9 % (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 December 31, 2021 and 2020, respectively. (d) The net write-off rate for the year ended December 31, 2021 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 year ended December 21, 2020. |
Impaired Card Member loans and receivables | The following tables provide additional information with respect to our impaired loans and receivables as of December 31, 2021, 2020 and 2019. As of December 31, 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 Impaired Balance Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 149 $ 82 $ 708 $ 997 $ 1,936 $ 415 Global Commercial Services 19 14 176 332 541 132 Card Member Receivables: Global Consumer Services Group — — 133 130 263 9 Global Commercial Services — — 248 303 551 39 Other Loans (f) 1 — 67 2 70 1 Total $ 169 $ 96 $ 1,332 $ 1,764 $ 3,361 $ 596 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 Impaired Balance 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 As of December 31, 2019 Accounts Classified as a TDR (c) 2019 (Millions) Over 90 days Past Due & Accruing Interest (a) Non-Accruals (b) In Program (d) Out of Program (e) Total Impaired Balance Reserve for Credit Losses - TDRs Card Member Loans: Global Consumer Services Group $ 384 $ 284 $ 500 $ 175 $ 1,343 $ 137 Global Commercial Services 44 54 97 38 233 22 Card Member Receivables: Global Consumer Services Group — — 56 16 72 3 Global Commercial Services — — 109 30 139 6 Total $ 428 $ 338 $ 762 $ 259 $ 1,787 $ 168 (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 $41 million, $32 million and $26 million that are over 90 days past due and accruing interest and $19 million, $11 million and $10 million that are non-accruals as of December 31, 2021, 2020 and 2019, respectively. (d) In Program TDRs include accounts that are currently enrolled in a modification program. (e) Out of Program TDRs include $1,621 million, $316 million and $188 million of accounts that have successfully completed a modification program and $143 million, $114 million and $72 million of accounts that were not in compliance with the terms of the modification programs as of December 31, 2021, 2020 and 2019, respectively. (f) Other loans primarily represent consumer and commercial non-card financing products. Balances as of December 31, 2019 were not significant. |
Troubled debt restructurings | The following tables provide additional information with respect to loans and receivables that were modified as TDRs during the years ended December 31: 2021 Number of Accounts Account Balances (millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 112 $ 789 13 (b) Card Member Receivables 21 437 (c) 18 Other Loans (d) 4 $ 13 3 16 Total 137 $ 1,239 2020 Number of Accounts Account Balances (millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 272 $ 2,347 14 (b) Card Member Receivables 47 1,202 (c) 19 Other Loans (d) 9 $ 345 3 16 Total 328 $ 3,894 2019 Number of Accounts Account Balances (millions) (a) Average Interest Rate Reduction Average Payment Term Extensions Troubled Debt Restructurings: Card Member Loans 78 $ 602 13 (b) Card Member Receivables 9 210 (c) 26 Total 87 $ 812 (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. Balances for the year ended December 31, 2019 were not significant. |
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. 2021 Number of Accounts Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 24 $ 174 Card Member Receivables 5 56 Other Loans (b) 3 9 Total 32 $ 239 2020 Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 17 $ 127 Card Member Receivables 3 55 Other Loans (b) 3 6 Total 23 $ 188 2019 Number of Accounts (thousands) Aggregated Outstanding Balances Upon Default (millions) (a) Troubled Debt Restructurings That Subsequently Defaulted: Card Member Loans 12 $ 86 Card Member Receivables 4 20 Total 16 $ 106 (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. Balances for the year ended December 31, 2019 were not significant. |
Reserves for Credit Losses (Tab
Reserves for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
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) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Fourth quarter of 2021 5% 7% - 11% 7% 6% -(2)% First quarter of 2022 4% - 7% 7% - 11% 6% - (4)% 5% - (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. |
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 years ended December 31: (Millions) 2021 2020 2019 Beginning Balance (a) $ 5,344 $ 4,027 $ 2,134 Provisions (b) (1,155) 3,453 2,462 Net write-offs (c) Principal (672) (1,795) (1,860) Interest and fees (207) (375) (375) Other (d) (5) 34 22 Ending Balance $ 3,305 $ 5,344 $ 2,383 (a) For the year ended December 31, 2020, beginning balance includes an increase of $1,643 million as of January 1, 2020, related to the adoption of the CECL methodology. (b) Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (c) Principal write-offs are presented less recoveries of $657 million, $568 million and $525 million for the years ended December 31, 2021, 2020 and 2019, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(171) million, $(134) million and $(79) million for the years ended December 31, 2021, 2020 and 2019, respectively. (d) Primarily includes foreign currency translation adjustments of $(6) million, $35 million and $4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31: (Millions) 2021 2020 2019 Beginning Balance (a) $ 267 $ 126 $ 573 Provisions (b) (73) 1,015 963 Net write-offs (c) (129) (881) (900) Other (d) (1) 7 (17) Ending Balance $ 64 $ 267 $ 619 (a) For the year ended December 31, 2020, beginning balance includes a decrease of $493 million as of January 1, 2020, related to the adoption of the CECL methodology. (b) Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. (c) Net write-offs are presented less recoveries of $378 million, $386 million and $374 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amounts include net recoveries (write-offs) from TDRs of $(64) million, $(47) million and $(16) million, for the years ended December 31, 2021, 2020 and 2019, respectively. (d) Primarily includes foreign currency translation adjustments of $(1) million, $5 million and nil for the years ended December 31, 2021, 2020 and 2019, respectively. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31: 2021 2020 Description of Securities (Millions) Cost Gross Gross Estimated Cost Gross Gross Estimated Available-for-sale debt securities: State and municipal obligations $ 106 $ 5 $ — $ 111 $ 172 $ 7 $ — $ 179 U.S. Government agency obligations 6 — — 6 7 — — 7 U.S. Government treasury obligations 1,680 25 (1) 1,704 20,655 76 — 20,731 Mortgage-backed securities (a) 17 1 — 18 28 2 — 30 Foreign government bonds and obligations 630 — — 630 581 — — 581 Other (b) 43 — — 43 22 — — 22 Equity securities (c) 66 17 (4) 79 56 27 (2) 81 Total $ 2,548 $ 48 $ (5) $ 2,591 $ 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. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020. 2021 Less than 12 months 12 months or more Description of Securities (Millions) Estimated Fair Gross Unrealized Estimated Fair Gross Unrealized U.S. Government treasury obligations 477 (1) — — Total $ 477 $ (1) $ — $ — |
Available for Sale Securities Ratio of Fair Value to Amortized Cost | The following table summarizes the gross unrealized losses by ratio of fair value to amortized cost as of December 31, 2021. There were no available-for-sale debt securities with gross unrealized losses as of December 31, 2020. Less than 12 months 12 months or more Total Ratio of Fair Value to Amortized Cost (Dollars in millions) Number of Estimated Gross Number of Estimated Gross Number of Estimated Gross 2021: 90%–100% 5 $ 477 $ (1) — $ — $ — 5 $ 477 $ (1) Total as of December 31, 2021 5 $ 477 $ (1) — $ — $ — 5 $ 477 $ (1) |
Contractual Maturities of Investment Securities | Weighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2021 were as follows: (Millions) Due within 1 year Due after 1 year but within 5 years Due after 5 years but within 10 years Due after 10 years Total State and municipal obligations (a) $ 6 $ 5 $ 30 $ 70 $ 111 U.S. Government agency obligations (a) — — — 6 6 U.S. Government treasury obligations 832 862 10 — 1,704 Mortgage-backed securities (a)(b) — — — 18 18 Foreign government bonds and obligations 628 1 1 — 630 Other (c) 11 32 — — 43 Total Estimated Fair Value $ 1,477 $ 900 $ 41 $ 94 $ 2,512 Total Cost $ 1,476 $ 879 $ 35 $ 92 $ 2,482 Weighted average yields (d) 1.74 % 2.42 % 5.46 % 3.10 % 2.08 % (a) The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. (b) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (c) Represents investments in corporate debt securities and debt securities issued by Community Development Financial Institutions. (d) Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent . |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other assets | The following is a summary of Other assets as of December 31: (Millions) 2021 2020 Goodwill $ 3,804 $ 3,852 Other intangible assets, at amortized cost 201 265 Other (a) 13,239 13,562 Total $ 17,244 $ 17,679 (a) Primarily includes other receivables net of reserves, prepaid assets, net deferred tax assets, tax credit investments, right-of-use lease assets and investments in non-consolidated entities. |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill reported in our reportable operating segments were as follows: (Millions) GCSG GCS GMNS Total Balance as of December 31, 2019 $ 1,026 $ 1,781 $ 508 $ 3,315 Acquisitions — 442 52 494 Dispositions — — — — Other (a) 32 11 — 43 Balance as of December 31, 2020 $ 1,058 $ 2,234 $ 560 $ 3,852 Acquisitions — — — — Dispositions (3) — — (3) Other (a) (37) (8) — (45) Balance as of December 31, 2021 $ 1,018 $ 2,226 $ 560 $ 3,804 (a) Primarily includes foreign currency translation. |
Customer Deposits (Tables)
Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits by Component Alternative | As of December 31, customer deposits were categorized as interest-bearing or non-interest-bearing as follows: (Millions) 2021 2020 U.S.: Interest-bearing $ 83,304 $ 85,583 Non-interest-bearing (includes Card Member credit balances of: 2021, $527; 2020, $576) 553 599 Non-U.S.: Interest-bearing 18 19 Non-interest-bearing (includes Card Member credit balances of: 2021, $503; 2020, $671) 507 674 Total customer deposits $ 84,382 $ 86,875 |
Deposits by Type | Customer deposits by deposit type as of December 31 were as follows: (Millions) 2021 2020 Savings and transaction accounts $ 66,142 $ 63,512 Certificates of deposit: Direct 1,415 2,440 Third-party (brokered) 3,095 5,561 Sweep accounts ―Third-party (brokered) 12,658 14,070 Other deposits 42 45 Card Member credit balances 1,030 1,247 Total customer deposits $ 84,382 $ 86,875 |
Time Deposits by Maturity | The scheduled maturities of certificates of deposit as of December 31, 2021 were as follows: (Millions) Total 2022 $ 3,216 2023 777 2024 287 2025 211 2026 19 After 5 years — Total $ 4,510 |
Time Deposits $250,000 or More | As of December 31, certificates of deposit in denominations of $250,000 or more, in the aggregate, were as follows: (Millions) 2021 2020 U.S. $ 521 $ 930 Non-U.S. 1 1 Total $ 522 $ 931 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | Our short-term borrowings outstanding, defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows: 2021 2020 (Millions, except percentages) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Outstanding Balance Year-End Stated Interest Rate on Debt (a) Commercial paper (b) $ — — % $ — — % Other short-term borrowings (c) 2,243 0.58 1,878 0.61 Total $ 2,243 0.58 % $ 1,878 0.61 % (a) For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2021 and 2020. (b) Average commercial paper outstanding was nil and $628 million in 2021 and 2020, respectively. (c) Includes borrowings from banks and book overdrafts with banks due to timing differences arising in the ordinary course of business. |
Long-term debt | Our long-term debt outstanding, defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows: 2021 2020 (Millions, except percentages) Original Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) Outstanding Balance (a) Year-End Interest Rate on Debt (b) Year-End Interest Rate with Swaps (b)(c) American Express Company Fixed Rate Senior Notes 2022 - 2042 $ 18,324 3.02 % 2.03 % $ 18,251 3.25 % 2.09 % Floating Rate Senior Notes 2022 - 2026 3,300 0.69 — 4,000 0.84 — Fixed Rate Subordinated Notes 2024 599 3.63 1.38 599 3.63 1.43 American Express Credit Corporation Fixed Rate Senior Notes 2022 - 2027 2,078 2.80 1.32 6,746 2.38 1.67 Floating Rate Senior Notes 2022 300 0.87 — 300 0.93 — Lending Trust Fixed Rate Senior Notes 2022 - 2024 8,199 2.01 1.82 8,325 2.74 2.55 Floating Rate Senior Notes 2022 - 2023 3,325 0.49 — 4,125 0.51 — Fixed Rate Subordinated Notes 2022 212 2.72 — 246 2.80 — Floating Rate Subordinated Notes 2022 - 2023 79 0.68 — 79 0.73 — Charge Trust Floating Rate Conduit Borrowings 2024 2,000 0.40 — — — — Other Finance Leases 2024 - 2033 14 5.49 — 17 5.54 — Floating Rate Borrowings 2022 - 2024 297 0.42 — % 328 0.42 — % Unamortized Underwriting Fees (52) (64) Total Long-Term Debt $ 38,675 2.22 % $ 42,952 2.49 % (a) The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Refer to Note 13 for more details on our treatment of fair value hedges. (b) For floating-rate issuances, the stated interest rate on debt is weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2021 and 2020. |
Aggregate annual maturities on long-term debt obligations | Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2021 were as follows: (Millions) 2022 2023 2024 2025 2026 Thereafter Total American Express Company (Parent Company only) $ 5,675 $ 5,750 $ 5,000 $ 750 $ 2,450 $ 2,933 $ 22,558 American Express Credit Corporation 2,050 — — — — 339 2,389 Lending Trust 6,381 2,685 2,750 — — — 11,816 Charge Trust — — 2,000 — — — 2,000 Other 77 88 136 — — 10 311 $ 14,183 $ 8,523 $ 9,886 $ 750 $ 2,450 $ 3,282 $ 39,074 Unamortized Underwriting Fees (52) Unamortized Discount and Premium (584) Impacts due to Fair Value Hedge Accounting 237 Total Long-Term Debt $ 38,675 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other liabilities | The following is a summary of Other liabilities as of December 31: (Millions) 2021 2020 Membership Rewards liability $ 11,398 $ 9,750 Employee-related liabilities (a) 2,528 2,336 Deferred card and other fees, net 2,516 2,282 Card Member rebate and reward accruals (b) 1,809 1,367 Income tax liability (c) 1,576 943 Other (d) 10,670 10,556 Total $ 30,497 $ 27,234 (a) Includes employee benefit plan obligations and incentive compensation. (b) Card Member rebate and reward accruals include payments to third-party reward partners and cash-back rewards. (c) Includes repatriation tax liability of $1,012 million as of both December 31, 2021 and 2020, which represents our remaining obligation under the Tax Cuts and Jobs Act enacted on December 22, 2017 (Tax Act) to pay a one-time transition tax on unrepatriated earnings and profits of certain foreign subsidiaries, the net position for current federal, state and non-U.S. income tax liabilities, and deferred tax liabilities for foreign jurisdictions. (d) Primarily includes book overdraft balances for accounts without an associated overdraft credit facility, Travelers Cheques and other prepaid products, lease liabilities, accruals for general operating expenses, payments to cobrand partners, marketing and business development liabilities, dividends payable and client incentives. |
Carrying amount of deferred charge card and other fees | The carrying amount of deferred card and other fees, net of deferred direct acquisition costs and reserves for membership cancellations, as of December 31, 2021 was as follows: (Millions) 2021 2020 Deferred card and other fees (a) $ 2,838 $ 2,639 Deferred direct acquisition costs (169) (166) Reserves for membership cancellations (153) (191) Deferred card and other fees, net $ 2,516 $ 2,282 (a) Includes deferred fees for Membership Rewards program participants. |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option and RSA Activity | A summary of stock option and RSU activity as of December 31, 2021, and corresponding changes during the year, are as follows: Stock Options Service-Based RSUs Service and Performance-Based RSUs (Shares in thousands) Shares Weighted-Average Shares Weighted- Shares Weighted- Outstanding as of December 31, 2020 3,751 $ 83.59 2,078 $ 109.23 3,146 $ 103.08 Granted 345 117.52 889 120.91 1,787 125.02 Exercised/vested (992) 64.96 (842) 102.05 (951) 98.56 Forfeited — — (250) 113.99 (241) 110.72 Expired — — — — — — Outstanding as of December 31, 2021 3,104 93.33 1,875 $ 117.36 3,741 $ 114.22 Options vested and expected to vest as of December 31, 2021 3,104 93.33 Options exercisable as of December 31, 2021 1,976 $ 79.42 |
Weighted-Average Remaining Contractual Life and Aggregate Intrinsic Value of the Company's Stock Options Outstanding, Exercisable, and Vested and Expected to Vest | The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock price exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2021, were as follows: Outstanding Exercisable Vested and Weighted-average remaining contractual life (in years) 5.3 3.8 5.3 Aggregate intrinsic value (millions) $ 218 $ 166 $ 218 |
Weighted Average Assumptions Used | The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2021, 2020 and 2019: 2021 2020 2019 Dividend yield 1.5 % 1.4 % 1.5 % Expected volatility (a) 31 % 20 % 24 % Risk-free interest rate 0.8 % 1.6 % 2.6 % Expected life of stock option ( in years ) (b) 7.2 7.1 7.1 Weighted-average fair value per option $ 32.38 $ 25.83 $ 23.38 (a) The expected volatility is based on both weighted historical and implied volatilities of our common stock price. (b) The expected life of stock options was determined using both historical data and expectations of option exercise behavior. |
Schedule of Share-Based Payment Award, Valuation Assumptions | The fair value of RSUs that do not include the r-TSR modifier, including those that contain only service conditions, is measured using our stock price on the grant date. The fair value of service and performance-based RSUs that include the r-TSR modifier is determined using a Monte Carlo valuation model with the following weighted-average assumptions in 2021, 2020 and 2019: 2021 2020 2019 Expected volatility (a) 41 % 19 % 20 % Risk-free interest rate 0.2 % 1.4 % 2.5 % Remaining performance period (in years) 2.9 2.9 2.9 (a) The expected volatility is based on historical volatility of our common stock price. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following represents the maturities of our outstanding lease commitments as of December 31, 2021: (Millions) 2022 $ 155 2023 155 2024 146 2025 123 2026 109 Thereafter 986 Total Outstanding Fixed Lease Payments $ 1,674 Less: Amount representing interest $ (553) Lease Liabilities $ 1,121 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31: 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) $ 204 $ 500 $ — $ — Net investment hedges - Foreign exchange contracts 219 24 54 474 Total derivatives designated as hedging instruments 423 524 54 474 Derivatives not designated as hedging instruments: Foreign exchange contracts 167 105 85 228 Total derivatives, gross 590 629 139 702 Derivative asset and derivative liability netting (b) (93) (98) (93) (98) Cash collateral netting (c) (204) (500) (4) (16) Total derivatives, net $ 293 $ 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 years ended December 31: Gains (losses) (Millions) 2021 2020 2019 Fixed-rate long-term debt $ 385 $ (405) $ (458) Derivatives designated as hedging instruments (385) 409 462 Total $ — $ 4 $ 4 |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 31, 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 described in the preceding paragraphs), as of December 31: 2021 2020 (Millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment securities: (a) Equity securities $ 79 $ 78 $ 1 $ — $ 81 $ 80 $ 1 $ — Debt securities 2,512 — 2,480 32 21,550 — 21,550 — Derivatives, gross (a) 590 — 590 — 629 — 629 — Total Assets 3,181 78 3,071 32 22,260 80 22,180 — Liabilities: Derivatives, gross (a) 139 — 139 — 702 — 702 — Total Liabilities $ 139 $ — $ 139 $ — $ 702 $ — $ 702 $ — (a) Refer to Note 4 for the fair values of investment securities and to Note 13 for the fair values of derivative assets and liabilities, on a further disaggregated basis. |
Estimated fair value of financial assets and financial liabilities | The following table summarizes the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31, 2021 and 2020. The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of December 31, 2021 and 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. 2021 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 22 $ 22 $ 20 $ 2 $ — Other financial assets (b) 56 56 — 56 — Financial assets carried at other than fair value Card Member and Other loans, less reserves (c) 88 91 — — 91 Financial Liabilities: Financial liabilities for which carrying values equal or approximate fair value 105 105 — 105 — Financial liabilities carried at other than fair value Certificates of deposit (d) 5 5 — 5 — Long-term debt (c) $ 39 $ 40 $ — $ 40 $ — 2020 (Billions) Carrying Corresponding Fair Value Amount Total Level 1 Level 2 Level 3 Financial Assets: Financial assets for which carrying values equal or Cash and cash equivalents (a) $ 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 $5.2 billion and $4.2 billion held by a consolidated VIE as of December 31, 2021 and 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 $26.7 billion and $25.8 billion as of December 31, 2021 and 2020, respectively, and the fair values of Long-term debt were $13.9 billion and $13.0 billion as of December 31, 2021 and 2020, respectively. (d) Presented as a component of Customer deposits on the Consolidated Balance Sheets. |
Common and Preferred Shares (Ta
Common and Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Authorized shares and a reconciliation of common shares issued and outstanding | The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding for the years ended December 31: (Millions, except where indicated) 2021 2020 2019 Common shares authorized (billions) (a) 3.6 3.6 3.6 Shares issued and outstanding at beginning of year 805 810 847 Repurchases of common shares (46) (7) (40) Other, primarily stock option exercises and restricted stock awards granted 2 2 3 Shares issued and outstanding as of December 31 761 805 810 (a) Of the common shares authorized but unissued as of December 31, 2021, approximately 21 million shares are reserved for issuance under employee stock and employee benefit plans. |
Perpetual Fixed Rate Noncumulative Preferred Shares issued and outstanding | We have the following perpetual Fixed Rate Reset Noncumulative Preferred Share series issued and outstanding as of December 31, 2021: Series D Issuance date August 3, 2021 Securities issued 1,600 Preferred shares; represented by 1,600,000 depositary shares Dividend rate per annum 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 Quarterly beginning September 15, 2021 Earliest redemption date September 15, 2026 Aggregate liquidation preference $1,600 million Carrying value (a) $1,584 million (a) Carrying value, presented in the Statements of Shareholders' Equity, represents the issuance proceeds, net of underwriting fees and offering costs. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of comprehensive income (loss), net of tax | AOCI is a balance sheet item in Shareholders’ equity on the Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component for the three years ended December 31 were as follows: (Millions) , net of tax Net Unrealized Gains (Losses) on Debt Foreign Currency Net Unrealized Pension Accumulated Other Balances as of December 31, 2018 $ (8) $ (2,133) $ (456) $ (2,597) Net unrealized gains 41 — — 41 Net translation on investments in foreign operations — 84 — 84 Net hedges of investments in foreign operations — (140) — (140) Pension and other postretirement benefits — — (125) (125) Net change in accumulated other comprehensive income (loss) 41 (56) (125) (140) Balances as of December 31, 2019 33 (2,189) (581) (2,737) Net unrealized gains 32 — — 32 Net translation on investments in foreign operations — 213 — 213 Net hedges of investments in foreign operations — (253) — (253) Pension and other postretirement benefits — (150) (150) Net change in accumulated other comprehensive income (loss) 32 (40) (150) (158) Balances as of December 31, 2020 65 (2,229) (731) (2,895) Net unrealized losses (42) — — (42) Net translation on investments in foreign operations — (339) — (339) Net hedges of investments in foreign operations — 176 — 176 Pension and other postretirement benefits — — 155 155 Net change in accumulated other comprehensive income (loss) (42) (163) 155 (50) Balances as of December 31, 2021 $ 23 $ (2,392) $ (576) $ (2,945) |
AOCI income tax effect | The following table shows the tax impact for the years ended December 31 for the changes in each component of AOCI presented above: Tax expense (benefit) (Millions) 2021 2020 2019 Net unrealized (losses) gains on debt securities $ (13) $ 9 $ 12 Net translation on investments in foreign operations (1) 17 24 Net hedges of investments in foreign operations 52 (79) (43) Pension and other postretirement benefits 52 (28) (38) Total tax impact $ 90 $ (81) $ (45) |
Other Fees and Commissions an_2
Other Fees and Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31: (Millions) 2021 2020 2019 Fees charged to Card Members: Delinquency fees $ 637 $ 772 $ 1,028 Foreign currency conversion fee revenue 523 433 982 Other customer fees: Loyalty coalition-related fees 508 435 456 Travel commissions and fees 244 102 424 Service fees and other (a) 480 421 407 Total Other fees and commissions $ 2,392 $ 2,163 $ 3,297 (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 years ended December 31: (Millions) 2021 2020 2019 Data processing and equipment (a) $ 2,431 $ 2,334 $ 2,168 Professional services 1,958 1,789 2,091 Net unrealized and realized gains on Amex Ventures equity investments (767) (152) (77) Other (b) 1,195 1,354 1,674 Total Other expenses $ 4,817 $ 5,325 $ 5,856 (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, non-income taxes, communication expenses, Card Member and merchant-related fraud losses, foreign currency-related gains and losses and litigation expenses. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: (Millions) 2021 2020 2019 Current income tax expense: U.S. federal $ 1,656 $ 1,122 $ 1,108 U.S. state and local 351 339 276 Non-U.S. 328 639 437 Total current income tax expense 2,335 2,100 1,821 Deferred income tax (benefit) expense: U.S. federal 231 (931) (58) U.S. state and local 22 (119) (31) Non-U.S. 41 111 (62) Total deferred income tax (benefit) expense 294 (939) (151) Total income tax expense $ 2,629 $ 1,161 $ 1,670 |
Effective income tax rate | A reconciliation of the U.S. federal statutory rate of 21 percent as of December 31, 2021, 2020 and 2019, to our actual income tax rate was as follows: 2021 2020 2019 U.S. statutory federal income tax rate 21.0 % 21.0 % 21.0 % (Decrease) increase in taxes resulting from: Tax credits and tax-exempt income (a) (0.1) (4.1) (1.9) State and local income taxes, net of federal benefit 3.0 3.7 2.8 Non-U.S. subsidiaries' earnings 1.1 2.4 (0.5) Tax settlements (0.1) (0.3) (0.3) Valuation allowances — 4.0 (0.2) Other (0.3) 0.3 (1.1) Actual tax rates 24.6 % 27.0 % 19.8 % (a) Includes the implementation of PAM related to investments in QAH projects for the year ended December 31, 2021. Refer to Note 1 for further information. |
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: (Millions) 2021 2020 Deferred tax assets: Reserves not yet deducted for tax purposes $ 3,637 $ 3,905 Employee compensation and benefits 359 383 Net operating loss and tax credit carryforwards 398 399 Other 809 765 Gross deferred tax assets 5,203 5,452 Valuation allowance (472) (418) Deferred tax assets after valuation allowance 4,731 5,034 Deferred tax liabilities: Intangibles and fixed assets 1,320 1,433 Deferred revenue 189 252 Deferred interest 133 148 Investment in joint ventures 183 135 Other 521 366 Gross deferred tax liabilities 2,346 2,334 Net deferred tax assets $ 2,385 $ 2,700 |
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: (Millions) 2021 2020 2019 Balance, January 1 $ 790 $ 726 $ 701 Increases: Current year tax positions 64 57 66 Tax positions related to prior years 225 105 78 Effects of foreign currency translations — — 10 Decreases: Tax positions related to prior years (14) (24) (14) Settlements with tax authorities (15) (15) (40) Lapse of statute of limitations (17) (58) (75) Effects of foreign currency translations (9) (1) — Balance, December 31 $ 1,024 $ 790 $ 726 |
Earnings Per Common Share (EP_2
Earnings Per Common Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted EPS | The computations of basic and diluted EPS for the years ended December 31 were as follows: (Millions, except per share amounts) 2021 2020 2019 Numerator: Basic and diluted: Net income $ 8,060 $ 3,135 $ 6,759 Preferred dividends (71) (79) (81) Equity-related adjustments (a) (16) — — Net income available to common shareholders 7,973 3,056 6,678 Earnings allocated to participating share awards (b) (56) (20) (47) Net income attributable to common shareholders $ 7,917 $ 3,036 $ 6,631 Denominator: (b) Basic: Weighted-average common stock 789 805 828 Add: Weighted-average stock options (c) 1 1 2 Diluted 790 806 830 Basic EPS $ 10.04 $ 3.77 $ 8.00 Diluted EPS $ 10.02 $ 3.77 $ 7.99 (a) Represents the difference between the redemption value and carrying value of the Series C and Series B preferred shares, which were redeemed on September 15, 2021 and November 15, 2021, respectively. The carrying value represents the original issuance proceeds, net of underwriting fees and offering costs for the 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, 0.53 million and 0.20 million of options for the years ended December 31, 2021, 2020 and 2019, respectively, because inclusion of the options would have been anti-dilutive. |
Regulatory Matters and Capita_2
Regulatory Matters and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters And Capital Adequacy [Abstract] | |
Regulatory capital ratios | The following table presents the regulatory capital ratios: (Millions, except percentages) CET 1 Tier 1 capital Total capital CET 1 capital Tier 1 capital Total capital Tier 1 leverage December 31, 2021: (a) American Express Company $ 17,554 $ 19,186 $ 21,506 10.5 % 11.5 % 12.9 % 10.5 % American Express National Bank $ 13,085 $ 13,085 $ 15,283 11.8 % 11.8 % 13.7 % 10.5 % December 31, 2020: (a) American Express Company $ 18,693 $ 20,277 $ 22,385 13.5 % 14.7 % 16.2 % 11.0 % American Express National Bank $ 14,617 $ 14,617 $ 16,578 16.2 % 16.2 % 18.3 % 10.9 % Well-capitalized ratios (b) American Express Company N/A 6.0 % 10.0 % N/A American Express National Bank 6.5 % 8.0 % 10.0 % 5.0 % Minimum capital ratios (c) 4.5 % 6.0 % 8.0 % 4.0 % Effective Minimum (d) American Express Company 7.0 % 8.5 % 10.5 % 4.0 % American Express National Bank 7.0 % 8.5 % 10.5 % 4.0 % (a) Capital ratios reported using Basel III capital definitions and risk-weighted assets using the Basel III standardized approach. (b) Represents requirements for bank holding companies and banking subsidiaries to be considered “well capitalized” pursuant to regulations issued under the Federal Reserve Regulation Y and the Federal Deposit Insurance Corporation Improvement Act, respectively. There is no CET1 capital ratio or Tier 1 leverage ratio requirement for a bank holding company to be considered “well capitalized.” (c) As defined by the regulations issued by the Federal Reserve and OCC. |
Significant Credit Concentrat_2
Significant Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Maximum credit exposure by category | The following table details our maximum credit exposure of the on-balance sheet assets by category as of December 31: (Billions) 2021 2020 Individuals (a) $ 131 $ 108 Financial services (b) 24 34 U.S. Government and agencies (c) 2 22 Institutions (d) 15 13 Total on-balance sheet $ 172 $ 177 (a) Primarily reflects loans and receivables from global consumer and small business Card Members, which are governed by individual credit risk management. (b) Represents banks, broker-dealers, insurance companies and savings and loan associations. (c) Represent debt obligations of the U.S. Government and its agencies, states and municipalities and government-sponsored entities. (d) Primarily reflects loans and receivables from global corporate Card Members, which are governed by institutional credit risk management. |
Card Member loans and receivables exposure | The following table details our Card Member loans and receivables exposure (including unused lines-of-credit available to Card Members as part of established lending product agreements) in the United States and outside the United States as of December 31: (Billions) 2021 2020 On-balance sheet: U.S. $ 115 $ 95 Non-U.S. 27 22 On-balance sheet 142 117 Unused lines-of-credit: (a) U.S. 261 251 Non-U.S. 66 63 Total unused lines-of-credit $ 327 $ 314 (a) Total unused credit available to Card Members does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. Our charge card products generally have no pre-set spending limit, and therefore are not reflected in unused credit available to Card Members. |
Reportable Operating Segments_2
Reportable Operating Segments and Geographic Operations (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2021, 2020 and 2019: (Millions, except where indicated) GCSG GCS GMNS Corporate & Other (a) Consolidated 2021 Total non-interest revenues $ 18,157 $ 11,489 $ 4,964 $ 20 $ 34,630 Revenue from contracts with customers (b) 13,047 9,863 4,635 171 27,716 Interest income 7,391 1,460 16 166 9,033 Interest expense 717 449 (92) 209 1,283 Total revenues net of interest expense 24,831 12,500 5,072 (23) 42,380 Pretax income (loss) 6,826 2,928 1,949 (1,014) 10,689 Total assets (billions) $ 102 $ 53 $ 15 $ 19 $ 189 2020 Total non-interest revenues $ 14,632 $ 9,652 $ 4,143 $ (325) $ 28,102 Revenue from contracts with customers (b) 9,974 8,145 3,882 (27) 21,974 Interest income 8,199 1,586 18 280 10,083 Interest expense 1,054 619 (82) 507 2,098 Total revenues net of interest expense 21,777 10,619 4,243 (552) 36,087 Pretax income (loss) 3,687 936 1,315 (1,642) 4,296 Total assets (billions) $ 87 $ 42 $ 14 $ 48 $ 191 2019 Total non-interest revenues $ 17,178 $ 12,242 $ 5,428 $ 88 $ 34,936 Revenue from contracts with customers (b) 12,555 10,633 4,965 6 28,159 Interest income 9,414 1,900 27 743 12,084 Interest expense 1,731 1,034 (303) 1,002 3,464 Total revenues net of interest expense 24,861 13,108 5,758 (171) 43,556 Pretax income (loss) 4,845 2,692 2,685 (1,793) 8,429 Total assets (billions) $ 107 $ 53 $ 17 $ 21 $ 198 (a) Corporate & Other includes adjustments and eliminations for intersegment activity. (b) Includes discount revenue, certain other fees and commissions and other revenues from customers. |
Total revenues net of interest expense and pretax income | The following table presents our total revenues net of interest expense and pretax income (loss) from continuing operations in different geographic regions based, in part, upon internal allocations, which necessarily involve management’s judgment: (Millions) United States EMEA (a) APAC (a) LACC (a) Other Unallocated (b) Consolidated 2021 Total revenues net of interest expense $ 33,103 $ 3,643 $ 3,418 $ 2,238 $ (22) $ 42,380 Pretax income (loss) from continuing operations 9,512 705 707 782 (1,017) 10,689 2020 Total revenues net of interest expense $ 28,263 $ 3,087 $ 3,271 $ 2,019 $ (553) $ 36,087 Pretax income (loss) from continuing operations 4,418 398 665 452 (1,638) 4,296 2019 Total revenues net of interest expense $ 32,629 $ 4,388 $ 3,934 $ 2,776 $ (171) $ 43,556 Pretax income (loss) from continuing operations 7,302 1,177 853 884 (1,787) 8,429 (a) EMEA represents Europe, the Middle East and Africa; APAC represents Asia Pacific, Australia and New Zealand; and LACC represents Latin America, Canada and the Caribbean. (b) Other Unallocated includes net costs which are not directly allocated to specific geographic regions, including costs related to the net negative interest spread on excess liquidity funding and executive office operations expenses. |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Income | PARENT COMPANY – CONDENSED STATEMENTS OF INCOME Years Ended December 31 (Millions) 2021 2020 2019 Revenues Non-interest revenues Other $ 343 $ 480 $ 598 Total non-interest revenues 343 480 598 Interest income 96 228 692 Interest expense 482 630 902 Total revenues net of interest expense (43) 78 388 Expenses Salaries and employee benefits 359 333 366 Other 346 562 816 Total expenses 705 895 1,182 Pretax loss (748) (817) (794) Income tax benefit (248) (236) (282) Net loss before equity in net income of subsidiaries and affiliates (500) (581) (512) Equity in net income of subsidiaries and affiliates 8,560 3,716 7,271 Net income $ 8,060 $ 3,135 $ 6,759 |
Condensed Balance Sheets | PARENT COMPANY – CONDENSED BALANCE SHEETS As of December 31 (Millions) 2021 2020 Assets Cash and cash equivalents $ 5,341 $ 10,968 Equity in net assets of subsidiaries and affiliates 22,623 23,306 Loans to subsidiaries and affiliates 17,848 15,887 Due from subsidiaries and affiliates 1,207 1,084 Other assets 158 164 Total assets 47,177 51,409 Liabilities and Shareholders’ Equity Liabilities Accounts payable and other liabilities 2,107 1,743 Due to subsidiaries and affiliates 443 1,100 Debt with subsidiaries and affiliates 136 2,772 Long-term debt 22,314 22,810 Total liabilities 25,000 28,425 Shareholders’ Equity Total shareholders’ equity 22,177 22,984 Total liabilities and shareholders’ equity $ 47,177 $ 51,409 |
Condensed Cash Flows | PARENT COMPANY – CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31 (Millions) 2021 2020 2019 Cash Flows from Operating Activities Net income $ 8,060 $ 3,135 $ 6,759 Adjustments to reconcile net income to cash provided by operating activities: Equity in net income of subsidiaries and affiliates (8,560) (3,716) (7,271) Dividends received from subsidiaries and affiliates 9,102 2,679 6,370 Other operating activities, primarily with subsidiaries and affiliates (305) 732 1,315 Net cash provided by operating activities 8,297 2,830 7,173 Cash Flows from Investing Activities Maturities and redemptions of investment securities — — 1 (Increase) decrease in loans to subsidiaries and affiliates (176) 11,434 (4,405) Investments in subsidiaries and affiliates (60) (52) (15) Other investing activities — 74 82 Net cash (used in) provided by investing activities (236) 11,456 (4,337) Cash Flows from Financing Activities Net decrease in short-term debt from subsidiaries and affiliates (2,636) (3,289) (1,500) Proceeds from long-term debt 3,000 — 6,469 Payments of long-term debt (5,000) (2,000) (641) Issuance of American Express preferred shares 1,584 — — Redemption of American Express preferred shares (1,600) — — Issuance of American Express common shares 64 44 86 Repurchase of American Express common shares and other (7,652) (1,029) (4,685) Dividends paid (1,448) (1,474) (1,422) Net cash used in financing activities (13,688) (7,748) (1,693) Net (decrease) increase in cash and cash equivalents (5,627) 6,538 1,143 Cash and cash equivalents at beginning of year 10,968 4,430 3,287 Cash and cash equivalents at end of year $ 5,341 $ 10,968 $ 4,430 Supplemental cash flow information Years Ended December 31 (Millions) 2021 2020 2019 Non-Cash Investing Activities Loans to subsidiaries and affiliates $ (1,787) $ (4,971) $ — Non-Cash Financing Activities Short-term debts from subsidiaries and affiliates — 4,971 — Proceeds from long-term debt $ 1,787 $ — $ — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Discount Revenue (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Contract terms with large merchants | 3 years |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Contract terms with large merchants | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Equipment, Furniture And Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment, Furniture And Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Premises | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Premises | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 50 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax provision | $ 2,629 | $ 1,161 | $ 1,670 | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update, Number 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 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Card Member loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 88,562 | $ 73,373 | ||
Financing receivables, reserves for credit losses | 3,305 | 5,344 | $ 2,383 | $ 2,134 |
Financing receivables, net | 85,257 | 68,029 | ||
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, reserves for credit losses | 52 | 238 | ||
Financing receivables, net | 2,859 | 2,614 | ||
Other | PPP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 36 | 630 | ||
Variable Interest Entity, Primary Beneficiary | Card Member loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 26,587 | 25,908 | ||
Global Consumer Services Group | Card Member loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 70,467 | 60,084 | ||
Global Commercial Services | Card Member loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 18,095 | $ 13,289 |
Loans and Card Member Receiva_4
Loans and Card Member Receivables (Details 1) - Card Member receivables - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 53,645 | $ 43,701 | ||
Financing receivables, reserves for credit losses | 64 | 267 | $ 619 | $ 573 |
Financing receivables, net | 53,581 | 43,434 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 5,175 | 4,296 | ||
Global Consumer Services Group | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 22,392 | 18,685 | ||
Global Commercial Services | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | 31,253 | 25,016 | ||
Global Commercial Services | Variable Interest Entity, Primary Beneficiary | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, gross | $ 5,200 | $ 4,300 |
Loans and Card Member Receiva_5
Loans and Card Member Receivables (Details 2) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Card Member loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | $ 88,562 | $ 73,373 |
Card Member receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 53,645 | 43,701 |
Global Consumer Services Group | Card Member loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 70,467 | 60,084 |
Global Consumer Services Group | Card Member receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 22,392 | 18,685 |
Global Consumer Services Group | Current | Card Member loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 69,960 | 59,442 |
Global Consumer Services Group | Current | Card Member receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 22,279 | 18,570 |
Global Consumer Services Group | 30-59 Days Past Due | Card Member loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 158 | 177 |
Global Consumer Services Group | 30-59 Days Past Due | Card Member receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 41 | 33 |
Global Consumer Services Group | 60-89 Days Past Due | Card Member loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 112 | 148 |
Global Consumer Services Group | 60-89 Days Past Due | Card Member receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 24 | 26 |
Global Consumer Services Group | 90+ Days Past Due | Card Member loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 237 | 317 |
Global Consumer Services Group | 90+ Days Past Due | Card Member receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 48 | 56 |
Global Commercial Services | Card Member loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 18,095 | 13,289 |
Global Commercial Services | Card Member loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 18,040 | 13,226 |
Global Commercial Services | Card Member loans | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 55 | 63 |
Global Commercial Services | Card Member receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 31,253 | 25,016 |
Global Commercial Services | Card Member receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 17,977 | 14,119 |
Global Commercial Services | Card Member receivables | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 13,276 | 10,897 |
Global Commercial Services | Current | Card Member loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 17,950 | 13,132 |
Global Commercial Services | Current | Card Member receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 17,846 | 14,023 |
Global Commercial Services | 30-59 Days Past Due | Card Member loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 34 | 27 |
Global Commercial Services | 30-59 Days Past Due | Card Member receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 59 | 37 |
Global Commercial Services | 60-89 Days Past Due | Card Member loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 19 | 20 |
Global Commercial Services | 60-89 Days Past Due | Card Member receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 28 | 21 |
Global Commercial Services | 90+ Days Past Due | Card Member loans | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 37 | 47 |
Global Commercial Services | 90+ Days Past Due | Card Member loans | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Global Commercial Services | 90+ Days Past Due | Card Member receivables | Global Small Business Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | 44 | 38 |
Global Commercial Services | 90+ Days Past Due | Card Member receivables | Global Corporate Payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, gross | $ 42 | $ 60 |
Loans and Card Member Receiva_6
Loans and Card Member Receivables (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Credit Quality Indicator for Loans and Receivables | |||
90+ Days Past Billing as a % of total | 0.30% | 0.60% | |
Card Member receivables | |||
Credit Quality Indicator for Loans and Receivables | |||
Net write-offs (recovery) | $ 129 | $ 881 | $ 900 |
Global Consumer Services Group | Card Member loans | |||
Credit Quality Indicator for Loans and Receivables | |||
30+ Days Past Due as a % of Total | 0.70% | 1.10% | |
Global Consumer Services Group | Card Member loans | Net Write-Off Rate - Principal Only | |||
Credit Quality Indicator for Loans and Receivables | |||
Net Write-Off Rate | 0.90% | 2.50% | |
Global Consumer Services Group | Card Member loans | Net Write-Off Rate Principal Interest, and Fees | |||
Credit Quality Indicator for Loans and Receivables | |||
Net Write-Off Rate | 1.30% | 3.00% | |
Global Consumer Services Group | Card Member receivables | |||
Credit Quality Indicator for Loans and Receivables | |||
30+ Days Past Due as a % of Total | 0.50% | 0.60% | |
Global Consumer Services Group | Card Member receivables | Net Write-Off Rate - Principal Only | |||
Credit Quality Indicator for Loans and Receivables | |||
Net Write-Off Rate | 0.30% | 1.70% | |
Global Consumer Services Group | Card Member receivables | Net Write-Off Rate Principal Interest, and Fees | |||
Credit Quality Indicator for Loans and Receivables | |||
Net Write-Off Rate | 0.40% | 1.90% | |
Global Commercial Services | Global Small Business Services | Card Member loans | |||
Credit Quality Indicator for Loans and Receivables | |||
30+ Days Past Due as a % of Total | 0.50% | 0.70% | |
Global Commercial Services | Global Small Business Services | Card Member loans | Net Write-Off Rate - Principal Only | |||
Credit Quality Indicator for Loans and Receivables | |||
Net Write-Off Rate | 0.60% | 2.10% | |
Global Commercial Services | 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% | |
Global Commercial Services | Global Small Business Services | Card Member receivables | |||
Credit Quality Indicator for Loans and Receivables | |||
30+ Days Past Due as a % of Total | 0.70% | 0.70% | |
Global Commercial Services | 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% | 2.10% | |
Global Commercial Services | 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% | 2.30% | |
Global Commercial Services | Global Corporate Payments | Card Member receivables | |||
Credit Quality Indicator for Loans and Receivables | |||
Net write-offs (recovery) | $ (37) | $ 53 | |
Global Commercial Services | 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 | 0.00% | 1.90% |
Loans and Card Member Receiva_7
Loans and Card Member Receivables (Details 4) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | $ 169 | $ 226 | $ 428 |
Non-accrual loans | 96 | 176 | 338 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 1,332 | 3,086 | 762 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 1,764 | 430 | 259 |
Total impaired loans and receivables | 3,361 | 3,918 | 1,787 |
Reserve for Credit Losses - TDRs | 596 | 1,346 | 168 |
Accounts Receivable and Loans Textuals | |||
Total loans and receivables modified as a TDR, past due 90 days and still accruing | 41 | 32 | 26 |
Total loans and receivables modified as a TDR, non-accrual | 19 | 11 | 10 |
Out of Program TDR accounts that completed modification programs | 1,621 | 316 | 188 |
Out of Program TDR accounts not in compliance with modification programs | 143 | 114 | 72 |
Other | |||
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 | 67 | 248 | |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 2 | 6 | |
Total impaired loans and receivables | 70 | 257 | |
Reserve for Credit Losses - TDRs | 1 | 80 | |
Global Consumer Services Group | Card Member loans | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 149 | 203 | 384 |
Non-accrual loans | 82 | 146 | 284 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 708 | 1,586 | 500 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 997 | 248 | 175 |
Total impaired loans and receivables | 1,936 | 2,183 | 1,343 |
Reserve for Credit Losses - TDRs | 415 | 782 | 137 |
Global Consumer Services Group | Card Member receivables | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 133 | 240 | 56 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 130 | 34 | 16 |
Total impaired loans and receivables | 263 | 274 | 72 |
Reserve for Credit Losses - TDRs | 9 | 60 | 3 |
Global Commercial Services | Card Member loans | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 19 | 21 | 44 |
Non-accrual loans | 14 | 29 | 54 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 176 | 478 | 97 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 332 | 67 | 38 |
Total impaired loans and receivables | 541 | 595 | 233 |
Reserve for Credit Losses - TDRs | 132 | 285 | 22 |
Global Commercial Services | Card Member receivables | |||
Impaired loans and receivables | |||
Loans over 90 days past due and accruing interest | 0 | 0 | 0 |
Non-accrual loans | 0 | 0 | 0 |
Loans and receivables modified as a Troubled Debt Restructuring in Program | 248 | 534 | 109 |
Loans and receivables modified as Troubled Debt Restructuring Out of Program | 303 | 75 | 30 |
Total impaired loans and receivables | 551 | 609 | 139 |
Reserve for Credit Losses - TDRs | $ 39 | $ 139 | $ 6 |
Loans and Card Member Receiva_8
Loans and Card Member Receivables (Details 5) account in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)account | Dec. 31, 2020USD ($)account | Dec. 31, 2019USD ($)account | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 137 | 328 | 87 |
Account Balances | $ | $ 1,239 | $ 3,894 | $ 812 |
Card Member loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 112 | 272 | 78 |
Account Balances | $ | $ 789 | $ 2,347 | $ 602 |
Average Interest Rate Reduction (as a percent) | 13.00% | 14.00% | 13.00% |
Card Member receivables | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 21 | 47 | 9 |
Account Balances | $ | $ 437 | $ 1,202 | $ 210 |
Average Payment Term Extension (in months) | 18 months | 19 months | 26 months |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 4 | 9 | |
Account Balances | $ | $ 13 | $ 345 | |
Average Interest Rate Reduction (as a percent) | 3.00% | 3.00% | |
Average Payment Term Extension (in months) | 16 months | 16 months |
Loans and Card Member Receiva_9
Loans and Card Member Receivables (Details 6) account in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)account | Dec. 31, 2020USD ($)account | Dec. 31, 2019USD ($)account | |
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 32 | 23 | 16 |
Aggregated Outstanding Balances Upon Default | $ | $ 239 | $ 188 | $ 106 |
Card Member loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 24 | 17 | 12 |
Aggregated Outstanding Balances Upon Default | $ | $ 174 | $ 127 | $ 86 |
Card Member receivables | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 5 | 3 | 4 |
Aggregated Outstanding Balances Upon Default | $ | $ 56 | $ 55 | $ 20 |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Accounts | account | 3 | 3 | |
Aggregated Outstanding Balances Upon Default | $ | $ 9 | $ 6 |
Reserves for Credit Losses (Det
Reserves for Credit Losses (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. Unemployment Rate | Fourth 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 | Fourth 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 | First quarter of 2022 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.04 | 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 | Fourth 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 | First quarter of 2022 | ||
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) | Fourth quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.07 | |
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 | |
U.S. GDP Growth (Contraction) | Minimum | First quarter of 2022 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | 0.06 | 0.05 |
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 | Fourth quarter of 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, reserves for credit losses, measurement input | (0.02) | |
U.S. GDP Growth (Contraction) | Maximum | First quarter of 2022 | ||
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 | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Reserve for Losses [Roll Forward] | ||||
Provisions | $ (1,419) | $ 4,730 | $ 3,573 | |
Card Member loans | ||||
Reserve for Losses [Roll Forward] | ||||
Beginning Balance | 5,344 | 2,383 | 2,134 | |
Provisions | (1,155) | 3,453 | 2,462 | |
Other | (5) | 34 | 22 | |
Ending Balance | 3,305 | 5,344 | 2,383 | |
Recoveries | 657 | 568 | 525 | |
Net (write-offs) recoveries from TDRs | (171) | (134) | (79) | |
Foreign currency translation adjustments | (6) | 35 | 4 | |
Card Member loans | Principal | ||||
Reserve for Losses [Roll Forward] | ||||
Net write-offs | (672) | (1,795) | (1,860) | |
Card Member loans | Interest and fees | ||||
Reserve for Losses [Roll Forward] | ||||
Net write-offs | $ (207) | (375) | (375) | |
Cumulative Effect, Period of Adoption, Adjusted Balance | Card Member loans | ||||
Reserve for Losses [Roll Forward] | ||||
Beginning Balance | $ 4,027 | |||
Ending Balance | $ 4,027 | |||
Cumulative Effect, Period of Adoption, Adjustment | Card Member loans | ||||
Reserve for Losses [Roll Forward] | ||||
Increase in financing receivable, allowance | $ 1,643 |
Reserves for Credit Losses (D_3
Reserves for Credit Losses (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Provisions | $ (1,419) | $ 4,730 | $ 3,573 | |
Card Member receivables | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 267 | 619 | 573 | |
Provisions | (73) | 1,015 | 963 | |
Net write-offs | (129) | (881) | (900) | |
Other | (1) | 7 | (17) | |
Ending Balance | 64 | 267 | 619 | |
Recoveries | 378 | 386 | 374 | |
Net (write-offs) recoveries from TDRs | (64) | (47) | (16) | |
Card Member receivables | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 126 | |||
Ending Balance | 126 | |||
Card Member receivables | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Decrease in financing receivable, allowance | $ 493 | |||
Card Member receivables | Foreign Currency Translation Adjustments | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Foreign currency translation adjustments | $ (1) | $ 5 | $ 0 |
Investment Securities (Details
Investment Securities (Details Textuals) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued interest available-for-sale debt securities | $ 12 | $ 26 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Available-for-sale debt securities: | ||
Estimated Fair Value | $ 2,512 | $ 21,550 |
Equity securities | ||
Cost | 66 | 56 |
Gross Unrealized Gains | 17 | 27 |
Gross Unrealized Losses | (4) | (2) |
Estimated Fair Value | 79 | 81 |
Total Cost | 2,548 | 21,521 |
Total Gross Unrealized Gains | 48 | 112 |
Total Gross Unrealized Losses | (5) | (2) |
Total Estimated Fair Value | 2,591 | 21,631 |
State and municipal obligations | ||
Available-for-sale debt securities: | ||
Cost | 106 | 172 |
Gross Unrealized Gains | 5 | 7 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 111 | 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 | 1,680 | 20,655 |
Gross Unrealized Gains | 25 | 76 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 1,704 | 20,731 |
Mortgage-backed securities | ||
Available-for-sale debt securities: | ||
Cost | 17 | 28 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 18 | 30 |
Foreign government bonds and obligations | ||
Available-for-sale debt securities: | ||
Cost | 630 | 581 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 630 | 581 |
Other | ||
Available-for-sale debt securities: | ||
Cost | 43 | 22 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 43 | $ 22 |
Investment Securities (Detail_2
Investment Securities (Details 1) $ in Millions | Dec. 31, 2021USD ($)security | Dec. 31, 2020security |
Debt Securities, Available-for-sale [Line Items] | ||
Number of available-for-sale debt securities with gross unrealized losses | security | 5 | 0 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 477 | |
Estimated Fair Value, 12 months or more | 0 | |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | |
Gross Unrealized Losses, 12 months or more | 0 | |
U.S. Government treasury obligations | ||
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | 477 | |
Estimated Fair Value, 12 months or more | 0 | |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | |
Gross Unrealized Losses, 12 months or more | $ 0 |
Investment Securities (Detail_3
Investment Securities (Details 2) $ in Millions | Dec. 31, 2021USD ($)security | Dec. 31, 2020security |
Available-for-sale investment securities with gross unrealized losses | ||
Number of Securities, Less than 12 months | security | 5 | |
Number of Securities, 12 months or more | security | 0 | |
Number of Securities, Total | security | 5 | 0 |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 477 | |
Estimated Fair Value, 12 months or more | 0 | |
Estimated Fair Value, Total | 477 | |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | |
Gross Unrealized Losses, 12 months or more | 0 | |
Gross Unrealized Losses, Total | $ (1) | |
Ratio of fair value to amortized cost between 90%-100% | ||
Available-for-sale investment securities with gross unrealized losses | ||
Number of Securities, Less than 12 months | security | 5 | |
Number of Securities, 12 months or more | security | 0 | |
Number of Securities, Total | security | 5 | |
Available-for-sale investment securities with gross unrealized losses and length of time | ||
Estimated Fair Value, Less than 12 months | $ 477 | |
Estimated Fair Value, 12 months or more | 0 | |
Estimated Fair Value, Total | 477 | |
Available-for-sale investment securities with gross unrealized losses | ||
Gross Unrealized Losses, Less than 12 months | (1) | |
Gross Unrealized Losses, 12 months or more | 0 | |
Gross Unrealized Losses, Total | $ (1) |
Investment Securities (Detail_4
Investment Securities (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | $ 1,477 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 900 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 41 | ||
Estimated Fair Value, Due after 10 years | 94 | ||
Total | 2,512 | ||
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |||
Due within 1 year | 1,476 | ||
Due after 1 year but within 5 years | 879 | ||
Due after 5 years but within 10 years | 35 | ||
Due after 10 years | 92 | ||
Available-for-sale debt securities, Cost | $ 2,482 | ||
Weighted average yields | |||
Weighted average yields, due within 1 year | 1.74% | ||
Weighted average yields, due after 1 years but within 5 years | 2.42% | ||
Weighted average yields, due after 5 years but within 10 years | 5.46% | ||
Weighted average yield, due after 10 years | 3.10% | ||
Weighted average yields, Total | 2.08% | ||
Combined tax at U.S. statutory federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
State and municipal obligations | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | $ 6 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 5 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 30 | ||
Estimated Fair Value, Due after 10 years | 70 | ||
Total | 111 | ||
U.S. Government agency obligations | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 0 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 0 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 0 | ||
Estimated Fair Value, Due after 10 years | 6 | ||
Total | 6 | ||
U.S. Government treasury obligations | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 832 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 862 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 10 | ||
Estimated Fair Value, Due after 10 years | 0 | ||
Total | 1,704 | ||
Mortgage-backed securities | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 0 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 0 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 0 | ||
Estimated Fair Value, Due after 10 years | 18 | ||
Total | 18 | ||
Foreign government bonds and obligations | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 628 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 1 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 1 | ||
Estimated Fair Value, Due after 10 years | 0 | ||
Total | 630 | ||
Other | |||
Estimated Fair Value | |||
Estimated Fair Value, Due within 1 year | 11 | ||
Estimated Fair Value, Due after 1 year but within 5 years | 32 | ||
Estimated Fair Value, Due after 5 years but within 10 years | 0 | ||
Estimated Fair Value, Due after 10 years | 0 | ||
Total | $ 43 |
Asset Securitizations (Details
Asset Securitizations (Details Textuals) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Securitized Trusts [Line Items] | |||
Restricted balances included in Cash and cash equivalents | $ 525 | $ 606 | $ 514 |
Lending Trust | |||
Securitized Trusts [Line Items] | |||
Direct and indirect ownership of variable interests | 15,000 | 13,400 | |
Restricted balances included in Cash and cash equivalents | 42 | 47 | |
Charge Trust | |||
Securitized Trusts [Line Items] | |||
Direct and indirect ownership of variable interests | 3,200 | 4,300 | |
Restricted balances included in Cash and cash equivalents | $ 1 | $ 0 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | |||
Goodwill | $ 3,804 | $ 3,852 | $ 3,315 |
Other intangible assets, at amortized cost | 201 | 265 | |
Other | 13,239 | 13,562 | |
Total | $ 17,244 | $ 17,679 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 3,852 | $ 3,315 |
Acquisitions | 0 | 494 |
Dispositions | (3) | 0 |
Other | (45) | 43 |
Goodwill, ending balance | 3,804 | 3,852 |
Global Consumer Services Group | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,058 | 1,026 |
Acquisitions | 0 | 0 |
Dispositions | (3) | 0 |
Other | (37) | 32 |
Goodwill, ending balance | 1,018 | 1,058 |
Global Commercial Services | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,234 | 1,781 |
Acquisitions | 0 | 442 |
Dispositions | 0 | 0 |
Other | (8) | 11 |
Goodwill, ending balance | 2,226 | 2,234 |
Global Merchant and Network Services | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 560 | 508 |
Acquisitions | 0 | 52 |
Dispositions | 0 | 0 |
Other | 0 | 0 |
Goodwill, ending balance | $ 560 | $ 560 |
Other Assets (Details Textuals)
Other Assets (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets [Line Items] | ||||
Accumulated goodwill impairment losses | $ 221 | $ 221 | ||
Gross carrying amount | 733 | 759 | ||
Accumulated amortization | 532 | 494 | ||
Amortization expense | 57 | 54 | $ 49 | |
Tax credit investments | 1,124 | 1,147 | ||
Tax credit investments - Affordable Housing partnerships | 1,084 | 1,095 | ||
Income tax provision | 2,629 | 1,161 | 1,670 | |
Expected amortization expense in 2022 | 52 | |||
Expected amortization expense in 2023 | 50 | |||
Expected amortization expense in 2024 | 44 | |||
Expected amortization expense in 2025 | 21 | |||
Expected amortization expense in 2026 | 11 | |||
Expected amortization expense after 2026 | $ 23 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update, Number 2014-01 | ||||
Other Assets [Line Items] | ||||
Income tax provision | $ 55 | |||
Minimum | ||||
Other Assets [Line Items] | ||||
Estimated useful lives | 1 year | |||
Maximum | ||||
Other Assets [Line Items] | ||||
Estimated useful lives | 22 years | |||
Other Expense | ||||
Other Assets [Line Items] | ||||
QAH investment losses | $ 226 | |||
Equity method losses related to QAH investments | 128 | 101 | ||
Income Tax Provision | ||||
Other Assets [Line Items] | ||||
QAH Tax Credits for equity method losses | 135 | 129 | $ 119 | |
Other Liabilities | ||||
Other Assets [Line Items] | ||||
QAH unfunded commitment | 238 | |||
Variable Interest Entity, Primary Beneficiary | ||||
Other Assets [Line Items] | ||||
Tax credit investments - Affordable Housing partnerships | 994 | $ 1,028 | ||
Variable Interest Entity, Primary Beneficiary | Off-Balance Sheet Obligations | ||||
Other Assets [Line Items] | ||||
Affordable Housing Program off balance sheet obligation | 53 | |||
Variable Interest Entity, Primary Beneficiary | Other Liabilities | ||||
Other Assets [Line Items] | ||||
QAH unfunded commitment | $ 192 | |||
Earliest Year | Other Liabilities | ||||
Other Assets [Line Items] | ||||
Affordable housing tax credits commitment, year to be paid | 2022 | |||
Latest Year | Other Liabilities | ||||
Other Assets [Line Items] | ||||
Affordable housing tax credits commitment, year to be paid | 2036 |
Customer Deposits (Details)
Customer Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S.: | ||
Interest-bearing | $ 83,304 | $ 85,583 |
Non-interest-bearing (includes Card Member credit balances of: 2021, $527; 2020, $576) | 553 | 599 |
Non-U.S.: | ||
Interest-bearing | 18 | 19 |
Non-interest-bearing (includes Card Member credit balances of: 2021, $503; 2020, $671) | 507 | 674 |
Total customer deposits | 84,382 | 86,875 |
Card Member Credit Balances | ||
U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2021, $527; 2020, $576) | 527 | 576 |
Non-U.S.: | ||
Non-interest-bearing (includes Card Member credit balances of: 2021, $503; 2020, $671) | $ 503 | $ 671 |
Customer Deposits (Details 1)
Customer Deposits (Details 1) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits By Type | ||
Savings and transaction accounts | $ 66,142 | $ 63,512 |
Certificates of deposit: | ||
Direct | 1,415 | 2,440 |
Third-party (brokered) | 3,095 | 5,561 |
Sweep accounts ―Third-party (brokered) | 12,658 | 14,070 |
Other deposits | 42 | 45 |
Card Member credit balances | 1,030 | 1,247 |
Total customer deposits | $ 84,382 | $ 86,875 |
Customer Deposits (Details 2)
Customer Deposits (Details 2) $ in Millions | Dec. 31, 2021USD ($) |
Time Deposits By Maturity | |
2022 | $ 3,216 |
2023 | 777 |
2024 | 287 |
2025 | 211 |
2026 | 19 |
After 5 years | 0 |
Total | $ 4,510 |
Customer Deposits (Details 3)
Customer Deposits (Details 3) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits of $250,000 or more | $ 522 | $ 931 |
United States | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits of $250,000 or more | 521 | 930 |
Non-US | ||
Time Deposits 250000 Or More [Line Items] | ||
Time Deposits of $250,000 or more | $ 1 | $ 1 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 2,243 | $ 1,878 |
Average commercial paper outstanding | $ 0 | $ 628 |
Short-term Debt | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt (as a percent) | 0.58% | 0.61% |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 0 | $ 0 |
Commercial Paper | Short-term Debt | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt (as a percent) | 0.00% | 0.00% |
Other Short Term Borrowings | ||
Short-term Debt [Line Items] | ||
Outstanding Balance | $ 2,243 | $ 1,878 |
Other Short Term Borrowings | Short-term Debt | ||
Short-term Debt [Line Items] | ||
Year-End Stated Rate on Debt (as a percent) | 0.58% | 0.61% |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 38,675 | $ 42,952 |
Unamortized Underwriting Fees | (52) | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 38,675 | $ 42,952 |
Year-End Stated Rate on Debt (as a percent) | 2.22% | 2.49% |
Unamortized Underwriting Fees | $ (52) | $ (64) |
Parent Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 22,314 | 22,810 |
Fixed Rate Senior Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 18,324 | $ 18,251 |
Year-End Stated Rate on Debt (as a percent) | 3.02% | 3.25% |
Year-End Interest Rate with Swaps (as a percent) | 2.03% | 2.09% |
Fixed Rate Senior Notes | Subsidiaries | Long-term Debt | American Express Credit Corporation | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 2,078 | $ 6,746 |
Year-End Stated Rate on Debt (as a percent) | 2.80% | 2.38% |
Year-End Interest Rate with Swaps (as a percent) | 1.32% | 1.67% |
Fixed Rate Senior Notes | Subsidiaries | Long-term Debt | Lending Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 8,199 | $ 8,325 |
Year-End Stated Rate on Debt (as a percent) | 2.01% | 2.74% |
Year-End Interest Rate with Swaps (as a percent) | 1.82% | 2.55% |
Floating Rate Senior Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 3,300 | $ 4,000 |
Year-End Stated Rate on Debt (as a percent) | 0.69% | 0.84% |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Floating Rate Senior Notes | Subsidiaries | Long-term Debt | American Express Credit Corporation | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 300 | $ 300 |
Year-End Stated Rate on Debt (as a percent) | 0.87% | 0.93% |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Floating Rate Senior Notes | Subsidiaries | Long-term Debt | Lending Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 3,325 | $ 4,125 |
Year-End Stated Rate on Debt (as a percent) | 0.49% | 0.51% |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Fixed Rate Subordinated Notes | Parent Company | Long-term Debt | American Express Company | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 599 | $ 599 |
Year-End Stated Rate on Debt (as a percent) | 3.63% | 3.63% |
Year-End Interest Rate with Swaps (as a percent) | 1.38% | 1.43% |
Fixed Rate Subordinated Notes | Subsidiaries | Long-term Debt | Lending Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 212 | $ 246 |
Year-End Stated Rate on Debt (as a percent) | 2.72% | 2.80% |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Floating Rate Subordinated Notes | Subsidiaries | Long-term Debt | Lending Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 79 | $ 79 |
Year-End Stated Rate on Debt (as a percent) | 0.68% | 0.73% |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Floating Rate Subordinated Notes | Charge Trust | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 2,000 | $ 0 |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Floating Rate Subordinated Notes | Charge Trust | Long-term Debt | ||
Debt Instrument [Line Items] | ||
Year-End Stated Rate on Debt (as a percent) | 0.40% | 0.00% |
Fixed Rate Instruments | Subsidiaries | Financed Leases | Long-term Debt | Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 14 | $ 17 |
Year-End Stated Rate on Debt (as a percent) | 5.49% | 5.54% |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Floating Rate Borrowings | Subsidiaries | Long-term Debt | Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 297 | $ 328 |
Year-End Stated Rate on Debt (as a percent) | 0.42% | 0.42% |
Year-End Interest Rate with Swaps (as a percent) | 0.00% | 0.00% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Aggregate annual maturities on long-term debt obligations | ||
2022 | $ 14,183 | |
2023 | 8,523 | |
2024 | 9,886 | |
2025 | 750 | |
2026 | 2,450 | |
Thereafter | 3,282 | |
Total | 39,074 | |
Unamortized Underwriting Fees | (52) | |
Unamortized Discount and Premium | (584) | |
Impacts due to Fair Value Hedge Accounting | 237 | |
Impacts due to Fair Value Hedge Accounting | 38,675 | $ 42,952 |
Parent Company | ||
Aggregate annual maturities on long-term debt obligations | ||
2022 | 5,675 | |
2023 | 5,750 | |
2024 | 5,000 | |
2025 | 750 | |
2026 | 2,450 | |
Thereafter | 2,933 | |
Total | 22,558 | |
Impacts due to Fair Value Hedge Accounting | 22,314 | $ 22,810 |
American Express Credit Corporation | ||
Aggregate annual maturities on long-term debt obligations | ||
2022 | 2,050 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 339 | |
Total | 2,389 | |
Lending Trust | ||
Aggregate annual maturities on long-term debt obligations | ||
2022 | 6,381 | |
2023 | 2,685 | |
2024 | 2,750 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total | 11,816 | |
Charge Trust | ||
Aggregate annual maturities on long-term debt obligations | ||
2022 | 0 | |
2023 | 0 | |
2024 | 2,000 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total | 2,000 | |
Other Subsidiaries | ||
Aggregate annual maturities on long-term debt obligations | ||
2022 | 77 | |
2023 | 88 | |
2024 | 136 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 10 | |
Total | $ 311 |
Debt (Details Textuals)
Debt (Details Textuals) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Line of credit maintained | $ 3,500,000,000 | $ 3,500,000,000 | |
Ratio of combined earnings and fixed earnings to fixed charges required to maintain availability of credit line | 1.25 | ||
Amount drawn from committed lines | $ 2,000,000,000 | 0 | |
Fees to maintain credit lines | 15,700,000 | 14,200,000 | |
Total interest paid | $ 1,100,000,000 | 2,000,000,000 | $ 3,400,000,000 |
Minimum | |||
Debt Instrument [Line Items] | |||
Common equity tier one ratio | 4.5 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Common equity tier one ratio | 6.5 | ||
Short-term Debt | |||
Debt Instrument [Line Items] | |||
Fees to maintain the secured financing facility | $ 7,800,000 | 7,700,000 | |
Charge Trust | |||
Debt Instrument [Line Items] | |||
Specified date face amount of eligible notes issued | Jul. 15, 2024 | ||
Debt instrument, term | 3 years | ||
Face amount of eligible notes from Charge Trust | $ 3,000,000,000 | ||
Lending Trust | |||
Debt Instrument [Line Items] | |||
Debt term | 3 years | ||
Face amount of eligible notes issued | $ 2,000,000,000 | ||
Specified date face amount of eligible notes issued | Sep. 16, 2024 | ||
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Line of credit maintained | $ 145,000,000 | 148,000,000 | |
Amount drawn from committed lines | $ 7,200,000 | $ 0 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of other liabilities | ||
Membership Rewards liability | $ 11,398 | $ 9,750 |
Employee-related liabilities | 2,528 | 2,336 |
Deferred card and other fees, net | 2,516 | 2,282 |
Card Member rebate and reward accruals | 1,809 | 1,367 |
Income tax liability | 1,576 | 943 |
Other | 10,670 | 10,556 |
Total | 30,497 | 27,234 |
Repatriation tax liability | $ 1,012 | $ 1,012 |
Other Liabilities (Details 1)
Other Liabilities (Details 1) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Deferred card and other fees | $ 2,838 | $ 2,639 |
Deferred direct acquisition costs | (169) | (166) |
Reserves for membership cancellations | (153) | (191) |
Deferred card and other fees, net | $ 2,516 | $ 2,282 |
Stock Plans (Details)
Stock Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Summary of Stock Option Activity [Roll Forward] | |
Stock Options, Beginning Balance, Shares | shares | 3,751 |
Stock Options Granted, shares | shares | 345 |
Stock Options Exercised/vested, shares | shares | (992) |
Stock Options Forfeited, shares | shares | 0 |
Stock Options Expired, shares | shares | 0 |
Stock Options, Ending Balance, Shares | shares | 3,104 |
Summary of Stock Option Activity, Weighted Average Exercise Price [Roll Forward] | |
Stock Options, Beginning balance, weighted average exercise price (in dollars per share) | $ / shares | $ 83.59 |
Stock Options Granted, weighted average exercise price (in dollars per share) | $ / shares | 117.52 |
Stock Options Exercised/vested, weighted average exercise price (in dollars per share) | $ / shares | 64.96 |
Stock Options Forfeited, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Stock Options Expired, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Stock Options, Ending balance, weighted average exercise price (in dollars per share) | $ / shares | $ 93.33 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity, Weighted Average Grant Price [Roll Forward] | |
Options vested and expected to vest, shares | shares | 3,104 |
Options exercisable, shares | shares | 1,976 |
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 93.33 |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 79.42 |
Service-Based RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity [Roll Forward] | |
RSAs/RSUs Beginning balance, shares | shares | 2,078 |
RSAs/RSUs Granted, shares | shares | 889 |
RSAs/RSUs Exercised/vested, shares | shares | (842) |
RSAs/RSUs Forfeited, shares | shares | (250) |
RSAs/RSUs Ending balance, shares | shares | 1,875 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity, Weighted Average Grant Price [Roll Forward] | |
RSAs/RSUs Beginning Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 109.23 |
RSAs/RSUs Granted, Weighted Average Grant Price (in dollars per share) | $ / shares | 120.91 |
RSAs/RSUs Exercised/vested, Weighted Average Grant Price (in dollars per share) | $ / shares | 102.05 |
RSAs/RSUs Forfeited, Weighted Average Grant Price (in dollars per share) | $ / shares | 113.99 |
RSAs/RSUs Ending Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 117.36 |
Service and Performance-Based RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity [Roll Forward] | |
RSAs/RSUs Beginning balance, shares | shares | 3,146 |
RSAs/RSUs Granted, shares | shares | 1,787 |
RSAs/RSUs Exercised/vested, shares | shares | (951) |
RSAs/RSUs Forfeited, shares | shares | (241) |
RSAs/RSUs Ending balance, shares | shares | 3,741 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Awards Activity, Weighted Average Grant Price [Roll Forward] | |
RSAs/RSUs Beginning Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 103.08 |
RSAs/RSUs Granted, Weighted Average Grant Price (in dollars per share) | $ / shares | 125.02 |
RSAs/RSUs Exercised/vested, Weighted Average Grant Price (in dollars per share) | $ / shares | 98.56 |
RSAs/RSUs Forfeited, Weighted Average Grant Price (in dollars per share) | $ / shares | 110.72 |
RSAs/RSUs Ending Balance, Weighted Average Grant Price (in dollars per share) | $ / shares | $ 114.22 |
Stock Plans (Details 1)
Stock Plans (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest | |
Weighted-average remaining contractual life, Outstanding | 5 years 3 months 18 days |
Aggregate intrinsic value, Outstanding | $ 218 |
Weighted-average remaining contractual life, Exercisable | 3 years 9 months 18 days |
Aggregate intrinsic value, Exercisable | $ 166 |
Weighted-average remaining contractual life, Vested and Expected to Vest | 5 years 3 months 18 days |
Aggregate intrinsic value, Vested and Expected to Vest | $ 218 |
Stock Plans (Details 2)
Stock Plans (Details 2) - Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Assumptions Used | |||
Dividend yield (as a percent) | 1.50% | 1.40% | 1.50% |
Expected volatility (as a percent) | 31.00% | 20.00% | 24.00% |
Risk-free interest rate (as a percent) | 0.80% | 1.60% | 2.60% |
Expected life of stock option | 7 years 2 months 12 days | 7 years 1 month 6 days | 7 years 1 month 6 days |
Weighted-average fair value per option (in dollars per share) | $ 32.38 | $ 25.83 | $ 23.38 |
Stock Plans (Details 3)
Stock Plans (Details 3) - RSUs | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 41.00% | 19.00% | 20.00% |
Risk-free interest rate (as a percent) | 0.20% | 1.40% | 2.50% |
Remaining performance period (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Stock Plans (Details Textuals)
Stock Plans (Details Textuals) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares unissued and available for grant (in shares) | 12 | 14 | 9 |
Stock-based compensation expense | $ 326 | $ 247 | $ 280 |
Stock-based compensation expense, income tax benefit | $ 78 | 59 | 67 |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 3 years | ||
Stock options contractual term | 10 years | ||
Stock-based compensation, unrecognized compensation cost | $ 4 | ||
Weighted-average remaining vesting period | 1 year 3 months 18 days | ||
Intrinsic value for options exercised | $ 86 | 47 | 104 |
Cash received from exercise of stock options | 64 | 44 | 84 |
Income tax benefit related to stock option exercises | 14 | $ 7 | $ 18 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, unrecognized compensation cost | $ 256 | ||
Weighted-average remaining vesting period | 1 year 10 months 24 days | ||
Vesting percentage | 25.00% | ||
RSAs/RSUs Weighted-average grant date fair value of RSAs granted (in dollars per share) | $ 123.66 | $ 124.47 | $ 96.24 |
Total fair value of shares vested | $ 227 | $ 291 | $ 286 |
Liability-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service condition period | 3 years | ||
Cash paid upon vesting of PGs | $ 53 | $ 81 | $ 81 |
Retirement Plans (Details Textu
Retirement Plans (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plans | |||
Retirement Plans (Textuals) [Abstract] | |||
Total expense for all defined contribution retirement plans | $ 269 | $ 267 | $ 278 |
Other Postretirement Benefit Plans | |||
Retirement Plans (Textuals) [Abstract] | |||
Total net benefit (expense) | 26 | 8 | $ 8 |
Defined benefit plans, unfunded status | $ 414 | $ 706 |
Contingencies and Commitments_2
Contingencies and Commitments (Details Textuals) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 29, 2019state | |
Loss Contingencies [Line Items] | ||||
Total lease expense | $ 161 | $ 177 | $ 151 | |
Weighted average remaining lease term | 18 years | |||
Weighted average lease discount rate (as a percent) | 3.00% | |||
Commitments related to agreements with certain cobrand partners | $ 2,600 | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Commitments and Contingencies | |||
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 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, estimate of possible loss | $ 0 | |||
Financial commitments, period | 5 years | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, estimate of possible loss | $ 170 | |||
Financial commitments, period | 10 years |
Contingencies and Commitments_3
Contingencies and Commitments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Minimum aggregate rental commitment under all noncancelable operating leases | |
2022 | $ 155 |
2023 | 155 |
2024 | 146 |
2025 | 123 |
2026 | 109 |
Thereafter | 986 |
Total Outstanding Fixed Lease Payments | 1,674 |
Less: Amount representing interest | (553) |
Lease Liabilities | $ 1,121 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Commitments and Contingencies |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | $ 590 | $ 629 |
Total derivative liabilities, gross | 139 | 702 |
Derivative asset and derivative liability netting, assets | (93) | (98) |
Derivative asset and derivative liability netting, liabilities | (93) | (98) |
Cash collateral netting, assets | (204) | (500) |
Cash collateral netting, liabilities | (4) | (16) |
Total derivatives assets, net | 293 | 31 |
Total derivatives liabilities, net | 42 | 588 |
Other Assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 423 | 524 |
Other Assets | Interest Rate Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 204 | 500 |
Other Assets | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 219 | 24 |
Other Assets | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets, gross | 167 | 105 |
Other Liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 54 | 474 |
Other Liabilities | Interest Rate Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 0 | 0 |
Other Liabilities | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | 54 | 474 |
Other Liabilities | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities, gross | $ 85 | $ 228 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details 1) - Interest Rate Contracts - Fair Value Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fixed-rate long-term debt | $ 385 | $ (405) | $ (458) |
Derivatives designated as hedging instruments | (385) | 409 | 462 |
Total | $ 0 | $ 4 | $ 4 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Margin on interest rate swap not netted | $ 11,000,000 | $ 34,000,000 | |
Carrying values of hedged liabilities | 13,100,000,000 | 16,400,000,000 | |
Cumulative amount of fair value hedging adjustments | 237,000,000 | 622,000,000 | |
Net increases (reductions) in interest expense on long term debt and other | (256,000,000) | (256,000,000) | $ 102,000,000 |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivatives | 19,000,000,000 | 14,400,000,000 | |
Other Expense | |||
Derivatives, Fair Value [Line Items] | |||
(Loss) gain in changes in fair value of derivatives not designated as hedges | (21,000,000) | 10,000,000 | 64,000,000 |
Gain on embedded derivatives | 0 | 0 | 3,000,000 |
Credit Valuation Adjustment | |||
Derivatives, Fair Value [Line Items] | |||
Fixed-rate debt obligations designated in fair value relationships | 0 | 0 | |
Fair Value Hedges | |||
Derivatives, Fair Value [Line Items] | |||
Fixed-rate debt obligations designated in fair value relationships | 12,900,000,000 | 15,800,000,000 | |
Net Investment Hedges | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivatives | 12,600,000,000 | 10,500,000,000 | |
Gain (loss) on net investment hedges, net of taxes | 176,000,000 | (253,000,000) | (140,000,000) |
Reclassifications out of AOCI | $ 0 | $ 0 | $ 0 |
Fair Values (Details)
Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment securities: | ||
Equity securities | $ 79 | $ 81 |
Debt securities | 2,512 | 21,550 |
Derivatives, gross | 590 | 629 |
Total Assets | 3,181 | 22,260 |
Liabilities | ||
Derivatives, gross | 139 | 702 |
Total Liabilities | 139 | 702 |
Fair Value, Inputs, Level 1 | ||
Investment securities: | ||
Equity securities | 78 | 80 |
Debt securities | 0 | 0 |
Derivatives, gross | 0 | 0 |
Total Assets | 78 | 80 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Investment securities: | ||
Equity securities | 1 | 1 |
Debt securities | 2,480 | 21,550 |
Derivatives, gross | 590 | 629 |
Total Assets | 3,071 | 22,180 |
Liabilities | ||
Derivatives, gross | 139 | 702 |
Total Liabilities | 139 | 702 |
Fair Value, Inputs, Level 3 | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities | 32 | 0 |
Derivatives, gross | 0 | 0 |
Total Assets | 32 | 0 |
Liabilities | ||
Derivatives, gross | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Values (Details 2)
Fair Values (Details 2) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Card Member receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | $ 53,645 | $ 43,701 |
Card Member loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 88,562 | 73,373 |
Variable Interest Entity, Primary Beneficiary | Card Member receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 5,175 | 4,296 |
Variable Interest Entity, Primary Beneficiary | Card Member loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 26,587 | 25,908 |
Reported Value Measurement | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 22,000 | 33,000 |
Other financial assets | 56,000 | 46,000 |
Financial assets carried at other than fair value | ||
Loans, net | 88,000 | 71,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 105,000 | 101,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 5,000 | 8,000 |
Long-term debt | 39,000 | 43,000 |
Estimate of Fair Value Measurement | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 22,000 | 33,000 |
Other financial assets | 56,000 | 46,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 105,000 | 101,000 |
Estimate of Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | Card Member receivables | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 5,200 | 4,200 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 20,000 | 31,000 |
Other financial assets | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Financial assets for which carrying values equal or approximate fair value | ||
Cash and cash equivalents | 2,000 | 2,000 |
Other financial assets | 56,000 | 46,000 |
Financial Liabilities: | ||
Financial liabilities for which carrying values equal or approximate fair value | 105,000 | 101,000 |
Estimate of Fair Value Measurement | Fair Value, Inputs, 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 | ||
Loans, net | 91,000 | 75,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 5,000 | 8,000 |
Long-term debt | 40,000 | 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 | 13,900 | 13,000 |
Portion at Other than Fair Value Measurement | Variable Interest Entity, Primary Beneficiary | Card Member loans | ||
Fair Values (Textuals) | ||
Financing receivables, gross | 26,700 | 25,800 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Financial assets carried at other than fair value | ||
Loans, net | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 0 | 0 |
Long-term debt | 0 | 0 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Financial assets carried at other than fair value | ||
Loans, net | 0 | 0 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 5,000 | 8,000 |
Long-term debt | 40,000 | 45,000 |
Portion at Other than Fair Value Measurement | Fair Value, Inputs, Level 3 | ||
Financial assets carried at other than fair value | ||
Loans, net | 91,000 | 75,000 |
Financial liabilities carried at other than fair value | ||
Certificates of deposit | 0 | 0 |
Long-term debt | $ 0 | $ 0 |
Fair Values (Details Textuals)
Fair Values (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value for impairment | $ 3,181,000,000 | $ 22,260,000,000 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value for impairment | 0 | 0 | |
Carrying value of equity securities without readily determinable fair values | 1,300,000,000 | 530,000,000 | |
Net upward adjustments of equity securities without readily determinable fair values | 727,000,000 | 93,000,000 | $ 80,000,000 |
Cumulative net unrealized gains for equity investments without readily determinable fair values | $ 1,100,000,000 | $ 347,000,000 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Guarantees [Abstract] | ||
Maximum potential amount of undiscounted future payments | $ 1,000 | $ 1,000 |
Amount of related liability | $ 24 | $ 24 |
Common and Preferred Shares (De
Common and Preferred Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Common shares, authorized (in shares) | 3,600 | 3,600 | 3,600 |
Schedule Of Stock By Class [Roll Forward] | |||
Shares issued and outstanding at beginning of year (in shares) | 805 | 810 | 847 |
Repurchases of common shares (in shares) | (46) | (7) | (40) |
Other, primarily stock option exercises and restricted stock awards granted (in shares) | 2 | 2 | 3 |
Shares issued and outstanding as of December 31 (in shares) | 761 | 805 | 810 |
Shares reserved for issuance under employee stock and employee benefit plans (in shares) | 21 |
Common and Preferred Shares (_2
Common and Preferred Shares (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Nov. 15, 2021 | Sep. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 23, 2019 |
Class of Stock [Line Items] | ||||||
Common share repurchases authorized (up to) (in shares) | 120,000,000 | |||||
Common shares repurchased (in shares) | 46,000,000 | 7,000,000 | 40,000,000 | |||
Common shares remaining under share repurchase authorizations (in shares) | 56,000,000 | |||||
Shares held as treasury shares (in shares) | 2,500,000 | 2,500,000 | 2,600,000 | |||
Cost basis of treasury stock | $ 271 | $ 279 | $ 292 | |||
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 | ||||
Preferred shares, par value (in dollars per share) | $ 1.667 | $ 1.667 | ||||
Liquidation price per share (in dollars per share) | 1,000,000 | |||||
Depositary shares redemption amount | $ 1,000 | |||||
Equity adjustments in connection with redemption of Preferred Shares | $ 16 | $ 0 | $ 0 | |||
Warrants, issued and outstanding (in shares) | 0 | 0 | 0 | |||
Repurchase Agreements | ||||||
Share Repurchase Commissions [Line Items] | ||||||
Cost basis of common stock repurchased | $ 7,600 | $ 900 | $ 4,600 | |||
Commissions paid included in cost basis of common stock repurchased | $ 5.6 | $ 1 | $ 6.2 | |||
Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred shares, par value (in dollars per share) | $ 1.667 | |||||
Fixed dividend rate per annum (as a percent) | 3.55% | |||||
Series C Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Payments for redemption of preferred stock | $ 850 | |||||
Fixed dividend rate per annum (as a percent) | 4.90% | |||||
Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Payments for redemption of preferred stock | $ 750 | |||||
Fixed dividend rate per annum (as a percent) | 5.20% |
Common and Preferred Shares (_3
Common and Preferred Shares (Details 1) - Series D Preferred Stock $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
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 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 22,984 | $ 23,071 | $ 22,290 |
Net change in accumulated other comprehensive income (loss) | (50) | (158) | (140) |
Ending Balance | 22,177 | 22,984 | 23,071 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | 90 | (81) | (45) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (2,895) | (2,737) | (2,597) |
Ending Balance | (2,945) | (2,895) | (2,737) |
Net Unrealized Gains (Losses) on Debt Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 65 | 33 | (8) |
Net change in accumulated other comprehensive income (loss) | (42) | 32 | 41 |
Ending Balance | 23 | 65 | 33 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | (13) | 9 | 12 |
Foreign Currency Translation Adjustment Gains (Losses) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (2,229) | (2,189) | (2,133) |
Net change in accumulated other comprehensive income (loss) | (163) | (40) | (56) |
Ending Balance | (2,392) | (2,229) | (2,189) |
Net Unrealized Pension and Other Postretirement Benefit Gains (Losses) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (731) | (581) | (456) |
Net change in accumulated other comprehensive income (loss) | 155 | (150) | (125) |
Ending Balance | (576) | (731) | (581) |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | 52 | (28) | (38) |
Net translation on investments in foreign operations | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net change in accumulated other comprehensive income (loss) | (339) | 213 | 84 |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | (1) | 17 | 24 |
Net hedges of investments in foreign operations | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net change in accumulated other comprehensive income (loss) | 176 | (253) | (140) |
Tax impact for the changes in each component of accumulated other comprehensive (loss) income | |||
Total tax impact | $ 52 | $ (79) | $ (43) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Loss) (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | $ (50) | $ (158) | $ (140) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) | $ 0 | $ 0 | $ 0 |
Other Fees and Commissions an_3
Other Fees and Commissions and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fees charged to Card Members: | |||
Delinquency fees | $ 637 | $ 772 | $ 1,028 |
Foreign currency conversion fee revenue | 523 | 433 | 982 |
Other customer fees: | |||
Loyalty coalition-related fees | 508 | 435 | 456 |
Travel commissions and fees | 244 | 102 | 424 |
Service fees and other | 480 | 421 | 407 |
Other fees and commissions | |||
Other customer fees: | |||
Total Other fees and commissions | $ 2,392 | $ 2,163 | $ 3,297 |
Other Fees and Commissions an_4
Other Fees and Commissions and Other Expenses (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Fees and Commissions and Other Expenses [Abstract] | |||
Data processing and equipment | $ 2,431 | $ 2,334 | $ 2,168 |
Professional services | 1,958 | 1,789 | 2,091 |
Net unrealized and realized gains on Amex Ventures equity investments | (767) | (152) | (77) |
Other | 1,195 | 1,354 | 1,674 |
Total Other expenses | $ 4,817 | $ 5,325 | $ 5,856 |
Restructuring Charges (Details
Restructuring Charges (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |||
Restructuring reserves | $ 67 | $ 197 | $ 135 |
Restructuring charges, net of revisions | (10) | $ 125 | $ 125 |
Restructuring programs in progress | $ 223 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax expense: | |||
U.S. federal | $ 1,656 | $ 1,122 | $ 1,108 |
U.S. state and local | 351 | 339 | 276 |
Non-U.S. | 328 | 639 | 437 |
Total current income tax expense | 2,335 | 2,100 | 1,821 |
Deferred income tax (benefit) expense: | |||
U.S. federal | 231 | (931) | (58) |
U.S. state and local | 22 | (119) | (31) |
Non-U.S. | 41 | 111 | (62) |
Total deferred income tax (benefit) expense | 294 | (939) | (151) |
Income tax provision (benefit) | $ 2,629 | $ 1,161 | $ 1,670 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective tax rate reconciliation | |||
U.S. statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
(Decrease) increase in taxes resulting from: | |||
Tax credits and tax-exempt income | (0.10%) | (4.10%) | (1.90%) |
State and local income taxes, net of federal benefit | 3.00% | 3.70% | 2.80% |
Non-U.S. subsidiaries' earnings | 1.10% | 2.40% | (0.50%) |
Tax settlements | (0.10%) | (0.30%) | (0.30%) |
Valuation allowances | 0.00% | 4.00% | (0.20%) |
Other | (0.30%) | 0.30% | (1.10%) |
Actual tax rates | 24.60% | 27.00% | 19.80% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Reserves not yet deducted for tax purposes | $ 3,637 | $ 3,905 |
Employee compensation and benefits | 359 | 383 |
Net operating loss and tax credit carryforwards | 398 | 399 |
Other | 809 | 765 |
Gross deferred tax assets | 5,203 | 5,452 |
Valuation allowance | (472) | (418) |
Deferred tax assets after valuation allowance | 4,731 | 5,034 |
Deferred tax liabilities: | ||
Intangibles and fixed assets | 1,320 | 1,433 |
Deferred revenue | 189 | 252 |
Deferred interest | 133 | 148 |
Investment in joint ventures | 183 | 135 |
Other | 521 | 366 |
Gross deferred tax liabilities | 2,346 | 2,334 |
Net deferred tax assets | $ 2,385 | $ 2,700 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 790 | $ 726 | $ 701 |
Increases: | |||
Current year tax positions | 64 | 57 | 66 |
Tax positions related to prior years | 225 | 105 | 78 |
Effects of foreign currency translations | 0 | 0 | 10 |
Decreases: | |||
Tax positions related to prior years | (14) | (24) | (14) |
Settlements with tax authorities | (15) | (15) | (40) |
Lapse of statute of limitations | (17) | (58) | (75) |
Effects of foreign currency translations | (9) | (1) | 0 |
Balance, December 31 | $ 1,024 | $ 790 | $ 726 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
U.S. statutory federal income tax rate | 21.00% | 21.00% | 21.00% | |
Accumulated earnings intended to be permanently reinvested outside the U.S. | $ 1,000 | |||
Aggregate state income and foreign withholding taxes on foreign earnings | 100 | |||
Income taxes paid | 1,600 | $ 2,200 | $ 1,700 | |
Unrecognized tax benefits | 1,024 | 790 | 726 | $ 701 |
Unrecognized tax benefits that affect effective tax rate | 780 | 580 | 623 | |
Unrecognized tax benefits change as a result of potential resolutions of prior years' tax | 167 | |||
Unrecognized tax benefits that, if recognized, could impact effective tax rate | 132 | |||
Unrecognized tax benefits income tax penalties and interest expense | 40 | 260 | $ 5 | |
Unrecognized tax benefits income tax penalties and interest accrued | 380 | $ 350 | ||
U.S. | ||||
Income Tax Contingency [Line Items] | ||||
NOL carryforwards | 84 | |||
Non U.S. | ||||
Income Tax Contingency [Line Items] | ||||
NOL carryforwards | 910 | |||
FTC carryforwards | $ 110 | |||
Non U.S. | Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward, expiration date | Dec. 31, 2029 | |||
Non U.S. | Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward, expiration date | Dec. 31, 2031 |
Earnings Per Common Share (EP_3
Earnings Per Common Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Basic and diluted: | ||||
Net income | $ 8,060 | $ 3,135 | $ 6,759 | |
Preferred dividends | (71) | (79) | (81) | |
Equity-related adjustments | (16) | 0 | 0 | |
Net income available to common shareholders | 7,973 | 3,056 | 6,678 | |
Earnings allocated to participating share awards | (56) | (20) | (47) | |
Net income attributable to common shareholders | $ 7,917 | $ 3,036 | $ 6,631 | |
Denominator: | ||||
Basic: Weighted-average common stock (in shares) | 789,000 | 805,000 | 828,000 | |
Add: Weighted-average stock options (in shares) | 1,000 | 1,000 | 2,000 | |
Diluted (in shares) | 790,000 | 806,000 | 830,000 | |
Basic EPS (in dollars per share) | [1] | $ 10.04 | $ 3.77 | $ 8 |
Diluted EPS (in dollars per share) | [1] | $ 10.02 | $ 3.77 | $ 7.99 |
Stock Option | ||||
Denominator: | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 10 | 530 | 200 | |
[1] | Represents net income less (i) earnings allocated to participating share awards of $56 million, $20 million and $47 million for the years ended December 31, 2021, 2020 and 2019, respectively, (ii) dividends on preferred shares of $71 million, $79 million and $81 million for the years ended December 31, 2021, 2020 and 2019, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. |
Regulatory Matters and Capita_3
Regulatory Matters and Capital Adequacy (Details) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Regulatory Matters And Capital Adequacy | ||
Common Equity Tier 1 required, Minimum capital ratio | 0.045 | |
Risk-based capital required, Minimum capital ratios | 0.060 | |
Minimum capital ratios | 0.080 | |
Leverage capital required, Minimum capital ratios | 0.040 | |
Parent Company | American Express Company | ||
Regulatory capital ratios | ||
CET1 capital | $ 17,554 | $ 18,693 |
Tier 1 capital | 19,186 | 20,277 |
Total capital | $ 21,506 | $ 22,385 |
CET1 capital ratio | 0.105 | 0.135 |
Tier 1 capital ratio | 0.115 | 0.147 |
Total capital ratio | 0.129 | 0.162 |
Tier 1 leverage ratio | 0.105 | 0.110 |
Regulatory Matters And Capital Adequacy | ||
Common Equity Tier 1 Required, Basel III Standards 2021 | 0.070 | |
Risk-based capital required, Well-capitalized ratios | 0.060 | |
Tier 1 capital ratio, effective minimum | 0.085 | |
Well-capitalized ratios | 0.100 | |
Basel III Standards 2021 | 0.105 | |
Leverage Capital Required, Basel III Standards 2020 | 0.040 | |
Subsidiaries | American Express National Bank | ||
Regulatory capital ratios | ||
CET1 capital | $ 13,085 | $ 14,617 |
Tier 1 capital | 13,085 | 14,617 |
Total capital | $ 15,283 | $ 16,578 |
CET1 capital ratio | 0.118 | 0.162 |
Tier 1 capital ratio | 0.118 | 0.162 |
Total capital ratio | 0.137 | 0.183 |
Tier 1 leverage ratio | 0.105 | 0.109 |
Regulatory Matters And Capital Adequacy | ||
Common Equity Tier 1 required, Well-capitalized ratios | 0.065 | |
Common Equity Tier 1 Required, Basel III Standards 2021 | 0.070 | |
Risk-based capital required, Well-capitalized ratios | 0.080 | |
Tier 1 capital ratio, effective minimum | 0.085 | |
Well-capitalized ratios | 0.100 | |
Basel III Standards 2021 | 0.105 | |
Leverage capital required, Well-capitalized ratios | 0.050 | |
Leverage Capital Required, Basel III Standards 2020 | 0.040 |
Regulatory Matters and Capita_4
Regulatory Matters and Capital Adequacy (Details Textuals) $ in Billions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Restricted net assets of subsidiaries | $ 10 |
Retained earnings available for dividend payment | 3.6 |
American Express National Bank | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Dividends paid from retained earnings to its parent company | $ 8.1 |
Significant Credit Concentrat_3
Significant Credit Concentrations (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 172 | $ 177 |
Individuals | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 131 | 108 |
Financial Services | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 24 | 34 |
US Government and Agencies | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | 2 | 22 |
Institutions | ||
Maximum Credit Exposure by Category | ||
On-balance sheet | $ 15 | $ 13 |
Significant Credit Concentrat_4
Significant Credit Concentrations (Details 1) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Card Member loans and receivables exposure | ||
On-balance sheet | $ 172 | $ 177 |
Card Member Loans and Receivables | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 142 | 117 |
Unused lines-of-credit | 327 | 314 |
U.S. | Card Member Loans and Receivables | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 115 | 95 |
Unused lines-of-credit | 261 | 251 |
Non-U.S. | Card Member Loans and Receivables | ||
Card Member loans and receivables exposure | ||
On-balance sheet | 27 | 22 |
Unused lines-of-credit | $ 66 | $ 63 |
Reportable Operating Segments_3
Reportable Operating Segments and Geographic Operations (Details Textuals) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 3 |
Reportable Operating Segments_4
Reportable Operating Segments and Geographic Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | $ 34,630 | $ 28,102 | $ 34,936 |
Revenue from contracts with customers | 27,716 | 21,974 | 28,159 |
Interest income | 9,033 | 10,083 | 12,084 |
Interest expense | 1,283 | 2,098 | 3,464 |
Total revenues net of interest expense | 42,380 | 36,087 | 43,556 |
Pretax income (loss) | 10,689 | 4,296 | 8,429 |
Total assets | 188,548 | 191,367 | 198,000 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 20 | (325) | 88 |
Revenue from contracts with customers | 171 | (27) | 6 |
Interest income | 166 | 280 | 743 |
Interest expense | 209 | 507 | 1,002 |
Total revenues net of interest expense | (23) | (552) | (171) |
Pretax income (loss) | (1,014) | (1,642) | (1,793) |
Total assets | 19,000 | 48,000 | 21,000 |
Global Consumer Services Group | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 18,157 | 14,632 | 17,178 |
Revenue from contracts with customers | 13,047 | 9,974 | 12,555 |
Interest income | 7,391 | 8,199 | 9,414 |
Interest expense | 717 | 1,054 | 1,731 |
Total revenues net of interest expense | 24,831 | 21,777 | 24,861 |
Pretax income (loss) | 6,826 | 3,687 | 4,845 |
Total assets | 102,000 | 87,000 | 107,000 |
Global Commercial Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 11,489 | 9,652 | 12,242 |
Revenue from contracts with customers | 9,863 | 8,145 | 10,633 |
Interest income | 1,460 | 1,586 | 1,900 |
Interest expense | 449 | 619 | 1,034 |
Total revenues net of interest expense | 12,500 | 10,619 | 13,108 |
Pretax income (loss) | 2,928 | 936 | 2,692 |
Total assets | 53,000 | 42,000 | 53,000 |
Global Merchant and Network Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total non-interest revenues | 4,964 | 4,143 | 5,428 |
Revenue from contracts with customers | 4,635 | 3,882 | 4,965 |
Interest income | 16 | 18 | 27 |
Interest expense | (92) | (82) | (303) |
Total revenues net of interest expense | 5,072 | 4,243 | 5,758 |
Pretax income (loss) | 1,949 | 1,315 | 2,685 |
Total assets | $ 15,000 | $ 14,000 | $ 17,000 |
Reportable Operating Segments_5
Reportable Operating Segments and Geographic Operations (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | $ 42,380 | $ 36,087 | $ 43,556 |
Pretax income (loss) from continuing operations | 10,689 | 4,296 | 8,429 |
United States | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 33,103 | 28,263 | 32,629 |
Pretax income (loss) from continuing operations | 9,512 | 4,418 | 7,302 |
EMEA | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 3,643 | 3,087 | 4,388 |
Pretax income (loss) from continuing operations | 705 | 398 | 1,177 |
APAC Geographic Region | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 3,418 | 3,271 | 3,934 |
Pretax income (loss) from continuing operations | 707 | 665 | 853 |
LACC Geographic Region | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | 2,238 | 2,019 | 2,776 |
Pretax income (loss) from continuing operations | 782 | 452 | 884 |
Other Unallocated | |||
Segment Revenues And Pretax Income Loss By Geographic Location [Line Items] | |||
Total revenues net of interest expense | (22) | (553) | (171) |
Pretax income (loss) from continuing operations | $ (1,017) | $ (1,638) | $ (1,787) |
Parent Company (Details)
Parent Company (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-interest revenues | |||
Total non-interest revenues | $ 34,630 | $ 28,102 | $ 34,936 |
Interest income | 9,033 | 10,083 | 12,084 |
Interest expense | 1,283 | 2,098 | 3,464 |
Total revenues net of interest expense | 42,380 | 36,087 | 43,556 |
Expenses | |||
Salaries and employee benefits | 6,240 | 5,718 | 5,911 |
Other | 4,817 | 5,325 | 5,856 |
Total expenses | 33,110 | 27,061 | 31,554 |
Income tax provision (benefit) | 2,629 | 1,161 | 1,670 |
Net income | 8,060 | 3,135 | 6,759 |
Parent Company | |||
Non-interest revenues | |||
Other | 343 | 480 | 598 |
Total non-interest revenues | 343 | 480 | 598 |
Interest income | 96 | 228 | 692 |
Interest expense | 482 | 630 | 902 |
Total revenues net of interest expense | (43) | 78 | 388 |
Expenses | |||
Salaries and employee benefits | 359 | 333 | 366 |
Other | 346 | 562 | 816 |
Total expenses | 705 | 895 | 1,182 |
Pretax income | (748) | (817) | (794) |
Income tax provision (benefit) | (248) | (236) | (282) |
Net loss before equity in net income of subsidiaries and affiliates | (500) | (581) | (512) |
Equity in net income of subsidiaries and affiliates | 8,560 | 3,716 | 7,271 |
Net income | $ 8,060 | $ 3,135 | $ 6,759 |
Parent Company (Details 1)
Parent Company (Details 1) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Cash and cash equivalents | $ 21,503 | $ 32,359 | $ 23,932 | |
Other assets | 17,244 | 17,679 | ||
Total assets | 188,548 | 191,367 | 198,000 | |
Liabilities and Shareholders’ Equity | ||||
Long-term debt | 38,675 | 42,952 | ||
Total liabilities | 166,371 | 168,383 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 22,177 | 22,984 | $ 23,071 | $ 22,290 |
Total liabilities and shareholders’ equity | 188,548 | 191,367 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 5,341 | 10,968 | ||
Equity in net assets of subsidiaries and affiliates | 22,623 | 23,306 | ||
Loans to subsidiaries and affiliates | 17,848 | 15,887 | ||
Due from subsidiaries and affiliates | 1,207 | 1,084 | ||
Other assets | 158 | 164 | ||
Total assets | 47,177 | 51,409 | ||
Liabilities and Shareholders’ Equity | ||||
Accounts payable and other liabilities | 2,107 | 1,743 | ||
Due to subsidiaries and affiliates | 443 | 1,100 | ||
Debt with subsidiaries and affiliates | 136 | 2,772 | ||
Long-term debt | 22,314 | 22,810 | ||
Total liabilities | 25,000 | 28,425 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 22,177 | 22,984 | ||
Total liabilities and shareholders’ equity | $ 47,177 | $ 51,409 |
Parent Company (Details 2)
Parent Company (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | |||
Net income | $ 8,060 | $ 3,135 | $ 6,759 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by operating activities | 14,645 | 5,591 | 13,632 |
Cash Flows from Investing Activities | |||
Maturities and redemptions of investment securities | 20,032 | 7,159 | 7,329 |
Other investing activities | 0 | 135 | 152 |
Net cash (used in) provided by investing activities | (10,529) | 11,632 | (16,707) |
Cash Flows from Financing Activities | |||
Proceeds from long-term debt | 7,788 | 69 | 12,706 |
Payments of long-term debt | (11,662) | (15,593) | (13,850) |
Issuance of American Express preferred shares | 1,584 | 0 | 0 |
Redemption of American Express preferred shares | (1,600) | 0 | 0 |
Issuance of American Express common shares | 64 | 44 | 86 |
Dividends paid | (1,448) | (1,474) | (1,422) |
Net cash used in financing activities | (14,933) | (9,068) | (519) |
Net (decrease) increase in cash and cash equivalents | (10,937) | 8,519 | (3,362) |
Cash and cash equivalents at beginning of year | 32,965 | 24,446 | 27,808 |
Cash and cash equivalents at end of year | 22,028 | 32,965 | 24,446 |
Parent Company | |||
Cash Flows from Operating Activities | |||
Net income | 8,060 | 3,135 | 6,759 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income of subsidiaries and affiliates | (8,560) | (3,716) | (7,271) |
Dividends received from subsidiaries and affiliates | 9,102 | 2,679 | 6,370 |
Other operating activities, primarily with subsidiaries and affiliates | (305) | 732 | 1,315 |
Net cash provided by operating activities | 8,297 | 2,830 | 7,173 |
Cash Flows from Investing Activities | |||
Maturities and redemptions of investment securities | 0 | 0 | 1 |
(Increase) decrease in loans to subsidiaries and affiliates | (176) | 11,434 | (4,405) |
Investments in subsidiaries and affiliates | (60) | (52) | (15) |
Other investing activities | 0 | 74 | 82 |
Net cash (used in) provided by investing activities | (236) | 11,456 | (4,337) |
Cash Flows from Financing Activities | |||
Net decrease in short-term debt from subsidiaries and affiliates | (2,636) | (3,289) | (1,500) |
Proceeds from long-term debt | 3,000 | 0 | 6,469 |
Payments of long-term debt | (5,000) | (2,000) | (641) |
Issuance of American Express preferred shares | 1,584 | 0 | 0 |
Redemption of American Express preferred shares | (1,600) | 0 | 0 |
Issuance of American Express common shares | 64 | 44 | 86 |
Repurchase of American Express common shares and other | (7,652) | (1,029) | (4,685) |
Dividends paid | (1,448) | (1,474) | (1,422) |
Net cash used in financing activities | (13,688) | (7,748) | (1,693) |
Net (decrease) increase in cash and cash equivalents | (5,627) | 6,538 | 1,143 |
Cash and cash equivalents at beginning of year | 10,968 | 4,430 | 3,287 |
Cash and cash equivalents at end of year | 5,341 | 10,968 | 4,430 |
Non-Cash Investing Activities | |||
Loans to subsidiaries and affiliates | (1,787) | (4,971) | 0 |
Non-Cash Financing Activities | |||
Short-term debts from subsidiaries and affiliates | 0 | 4,971 | 0 |
Proceeds from long-term debt | $ 1,787 | $ 0 | $ 0 |