American Express (AXP) 10-Q 30 Oct 09 2009 Q3 Quarterly report Financial data

Statement Of Income Interest Ba

Statement Of Income Interest Based Revenue (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009		3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Non-interest revenues
Discount revenue	$3,373		$3,848		$9,744		$11,557
Net card fees	538		541		1,602		1,614
Travel commissions and fees	383		499		1,155		1,566
Other commissions and fees	448		573		1,340		1,785
Securitization income, net	71		200		210		871
Other	449		553		1,569		1,591
Total non-interest revenues	5,262		6,214		15,620		18,984
Interest income
Interest and fees on loans	1,059		1,560		3,432		4,795
Interest and dividends on investment securities	229		200		579		603
Deposits with banks and other	9		74		48		235
Total interest income	1,297		1,834		4,059		5,633
Interest expense
Deposits	109		109		299		381
Short-term borrowings	2		114		36		411
Long-term debt and other	432		661		1,310		1,966
Total interest expense	543		884		1,645		2,758
Net interest income	754		950		2,414		2,875
Total revenues net of interest expense	6,016		7,164		18,034		21,859
Provisions for losses
Charge card	143		351		716		937
Cardmember lending	989		958		3,706		3,304
Other	46		50		143		153
Total provisions for losses	1,178		1,359		4,565		4,394
Total revenues net of interest expense after provisions for losses	4,838		5,805		13,469		17,465
Expenses
Marketing, promotion, rewards and cardmember services	1,619		1,929		4,433		5,609
Salaries and employee benefits	1,261		1,465		3,884		4,430
Professional services	575		608		1,693		1,764
Other, net	465		725		1,579		2,349
Total	3,920		4,727		11,589		14,152
Pretax income from continuing operations	918		1,078		1,880		3,313
Income tax provision	276		217		453		748
Income from continuing operations	642		861		1,427		2,565
Loss from discontinued operations, net of tax	(2)		(46)		(13)		(106)
Net income	$640		$815		$1,414		$2,459
Earnings per Common Share - Basic: (Note 12)
Income from continuing operations attributable to common shareholders	0.54	[2]	0.74	[2]	0.95	[1]	2.21	[1]
Loss from discontinued operations	$0		-0.04		-0.01		-0.09
Net income attributable to common shareholders	0.54	[2]	0.7	[2]	0.94	[1]	2.12	[1]
Earnings per Common Share - Diluted: (Note 12)
Income from continuing operations attributable to common shareholders	0.54	[2]	0.74	[2]	0.95	[1]	2.2	[1]
Loss from discontinued operations	-0.01		-0.04		-0.01		-0.1
Net income attributable to common shareholders	0.53	[2]	0.7	[2]	0.94	[1]	2.1	[1]
Average common shares outstanding for earnings per common share:
Basic	1,178		1,154		1,164		1,154
Diluted	1,181		1,158		1,166		1,161
Cash dividends declared per common share	0.18		0.18		0.54		0.54
[1]Represents income from continuing operations or net income, as applicable, less (i) accelerated preferred dividend accretion of $212 million for the nine months ended September 30, 2009, due to the repurchase of $3.39 billion of preferred shares issued as part of the Capital Purchase Program (CPP) (ii) preferred shares dividends and related accretion of $94 million for the nine months ended September 30, 2009 and (iii) earnings allocated to participating share awards and other items of $13 million and $14 million for the nine months ended September 30, 2009 and 2008, respectively. Net income attributable to common shareholders, after consideration of the items described in (i) - (iii) above, was $1,095 million and $2,445 million for the nine months ended September 30, 2009 and 2008, respectively.
[2]Represents income from continuing operations or net income, as applicable, less earnings allocated to participating share awards and other items of $8 million and $5 million for the quarters ended September 30, 2009 and 2008, respectively. Net income attributable to common shareholders, after consideration of the items described above, was $632 million and $810 million for the quarters ended September 30, 2009 and 2008, respectively.

Statement Of Financial Position

Statement Of Financial Position Unclassified - Deposit Based Operations (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
Cash and cash equivalents
Cash and cash due from banks	$1,704	$1,574
Interest-bearing deposits in other banks (including federal funds sold and securities purchased under resale agreements: 2009, $151; 2008, $141)	6,356	6,554
Short-term investment securities	10,588	12,419
Total	18,648	20,547
Accounts receivable
Cardmember receivables, less reserves: 2009, $599; 2008, $810	31,528	32,178
Other receivables, less reserves: 2009, $118; 2008, $118	3,267	4,393
Loans
Cardmember lending, less reserves: 2009, $3,359; 2008, $2,570	28,116	39,641
Other, less reserves: 2009, $30; 2008, $39	511	1,018
Investment securities	23,798	12,526
Premises and equipment - at cost, less accumulated depreciation: 2009, $4,055; 2008, $3,743	2,759	2,948
Other assets	11,818	12,607
Assets of discontinued operations	0	216
Total assets	120,445	126,074
Liabilities
Customers' deposits	23,863	15,486
Travelers Cheques outstanding	5,746	6,433
Accounts payable	8,780	8,428
Short-term borrowings	2,202	8,993
Long-term debt	52,850	60,041
Other liabilities	13,061	14,592
Liabilities of discontinued operations	0	260
Total liabilities	106,502	114,233
Contingencies (see Note 18)	-	-
Shareholders' Equity
Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 1,189 million shares in 2009 and 1,160 million shares in 2008	237	232
Additional paid-in capital	11,015	10,496
Retained earnings	3,247	2,719
Accumulated other comprehensive loss, net of tax:
Net unrealized securities gains (losses), net of tax: 2009, $(332); 2008, $458	587	(699)
Net unrealized derivatives losses, net of tax: 2009, $21; 2008, $44	(38)	(80)
Foreign currency translation adjustments, net of tax: 2009, $35; 2008, $64	(679)	(368)
Net unrealized pension and other postretirement benefit costs, net of tax: 2009 $212; 2008, $216	(426)	(459)
Total accumulated other comprehensive loss	(556)	(1,606)
Total shareholders' equity	13,943	11,841
Total liabilities and shareholders' equity	$120,445	$126,074

1_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Interest-bearing deposits in other banks, federal funds sold and securities purchased under resale agreements	$151	$141
Cardmember receivables, reserves	599	810
Other receivables, reserves	118	118
Cardmember lending, reserves	3,359	2,570
Other, reserves	30	39
Premises and equipment, accumulated depreciation	4,055	3,743
Common shares, par value	0.2	0.2
Common shares, authorized	3,600,000,000	3,600,000,000
Common shares, issued	1,189,000,000	1,160,000,000
Common shares, outstanding	1,189,000,000	1,160,000,000
Net unrealized securities gains (losses), tax	(332)	458
Net unrealized derivatives losses, tax	21	44
Foreign currency translation adjustments, tax	35	64
Net unrealized pension and other postretirement benefit costs, tax	$212	$216

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Deposit Based Operations (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash Flows from Operating Activities
Net income	$640	$815	$1,414	$2,459
Loss from discontinued operations, net of tax	2	46	13	106
Income from continuing operations	642	861	1,427	2,565
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Provisions for losses			5,234	4,828
Depreciation and amortization			777	538
Deferred taxes, acquisition costs and other			(1,423)	(363)
Stock-based compensation			158	177
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Other receivables			1,028	298
Other assets			236	(162)
Accounts payable and other liabilities			(925)	1,653
Travelers Cheques outstanding			(681)	(703)
Net cash used in operating activities attributable to discontinued operations			(239)	(88)
Net cash provided by operating activities			5,592	8,743
Cash Flows from Investing Activities
Sale of investments			2,647	1,919
Maturity and redemption of investments			2,741	7,062
Purchase of investments			(12,493)	(9,591)
Net decrease in cardmember loans/receivables			9,015	679
Proceeds from cardmember loan securitizations			2,244	9,619
Maturities of cardmember loan securitizations			(4,800)	(4,670)
Purchase of premises and equipment			(491)	(633)
Sale of premises and equipment			39	15
Acquisitions, net of cash acquired			0	(4,617)
Net cash provided by investing activities attributable to discontinued operations			196	2,605
Net cash (used in) provided by investing activities			(902)	2,388
Cash Flows from Financing Activities
Net change in customer deposits			8,545	(3,230)
Net decrease in short-term borrowings			(6,724)	(3,574)
Issuance of long-term debt			4,500	13,308
Principal payments on long-term debt			(12,439)	(10,324)
Issuance of American Express Series A preferred shares and warrants			3,389	0
Issuance of American Express common shares			531	180
Repurchase of American Express Series A preferred shares			(3,389)	0
Repurchase of American Express stock warrants			(340)	0
Repurchase of American Express common shares			0	(219)
Common and preferred dividends paid			(709)	(627)
Net cash provided by (used in) financing activities attributable to discontinued operations			40	(6,079)
Net cash used in financing activities			(6,596)	(10,565)
Effect of exchange rate changes on cash			4	64
Net (decrease) increase in cash and cash equivalents			(1,902)	630
Cash and cash equivalents at beginning of period includes cash of discontinued operations: 2009, $3; 2008, $6,390			20,550	15,268
Cash and cash equivalents at end of period includes cash of discontinued operations: 2009, $0; 2008, $342	$18,648	$15,898	$18,648	$15,898

2_Statement Of Cash Flows Indir

Statement Of Cash Flows Indirect Deposit Based Operations (Parenthetical) (USD $)

1. Basis of Presentation

1. Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1. Basis of Presentation	1. Basis of Presentation The Company The accompanying Consolidated Financial Statements should be read in conjunction with the financial statements which are incorporated by reference in the Annual Report on Form 10-K of American Express Company (the Company) for the year ended December31, 2008 (2008 Form 10-K). Certain reclassifications of prior year amounts have been made to conform to the current presentation. These reclassifications did not have an impact on the Companys results of operations or cash flows. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position and the consolidated results of operations for the interim periods have been made. The Company made certain adjustments that represent corrections of errors related to prior periods (see Notes 8 and 13 for additional details). Otherwise, all adjustments made were of a normal, recurring nature. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on managements assumptions concerning future events. Among the more significant assumptions are those that relate to reserves for cardmember losses relating to loans and charge card receivables, Membership Rewards, fair value measurement, and income taxes. These accounting estimates reflect the best judgment of management, but actual results could differ. As discussed in the 2008 Form 10-K, the Company became a bank holding company during the fourth quarter of 2008 under the Bank Holding Company Act of 1956, and the Federal Reserve Board (Federal Reserve) became the Companys primary federal regulator. As such, the Company is subject to the Federal Reserves regulations, policies and minimum capital standards. Recently Issued Accounting Standards Effective for interim and annual periods ending after September15, 2009, the Financial Accounting Standards Board (FASB) Accounting Standards CodificationTM (the Codification) is the single source of authoritative literature of U.S. generally accepted accounting principles (GAAP). The Codification consolidates all authoritative accounting literature into one internet-based research tool, which supercedes all pre-existing accounting and reporting standards, excluding separate rules and other interpretive guidance released by the Securities and Exchange Commission. New accounting guidance is now issued in the form of Accounting Standards Updates, which update the Codification. The Company has adopted the Codification in the period ending September30, 2009, and as a result has replaced references to standards that were issued prior to the Codification with a description of the applicable accounting guidance. The FASB recently issued the following accounting standards, which are effective beginning January1, 2010. An amendment to the accounting guidance for transfers of financial assets (originally issued as Statement of Financial Accounting Standards No.166, Ac

2. Discontinued Operations

2. Discontinued Operations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2. Discontinued Operations	2. Discontinued Operations On September18, 2007, the Company entered into an agreement to sell its international banking subsidiary, American Express Bank Ltd. (AEB), to Standard Chartered PLC (Standard Chartered), and to sell American Express International Deposit Company (AEIDC) through a put/call agreement to Standard Chartered 18 months after the close of the AEB sale. The sale of AEB was completed on February29, 2008. In the third quarter of 2008, AEIDC qualified to be reported as a discontinued operation; the sale of AEIDC was completed on September10, 2009. For all periods presented, all of the operating results, assets and liabilities, and cash flows of AEB (except for certain components of AEB that were not sold) and AEIDC have been removed from the Corporate Other segment and are presented separately in discontinued operations in the Companys Consolidated Financial Statements. The Notes to the Consolidated Financial Statements have been adjusted to exclude discontinued operations unless otherwise noted.

3. Accounts Receivable

3. Accounts Receivable
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3. Accounts Receivable	3. Accounts Receivable Accounts receivable at September30, 2009 and December31, 2008, consisted of: (Millions) 2009 2008 U.S. Card Services $ 15,930 $ 17,822 International Card Services 5,627 5,582 Global Commercial Services 10,364 9,397 Global Network Merchant Services (a) 206 187 Cardmember receivables, gross (b) 32,127 32,988 Less: Cardmember reserve for losses 599 810 Cardmember receivables, net $ 31,528 $ 32,178 Other receivables, gross (c) $ 3,385 $ 4,511 Less: Other reserve for losses 118 118 Other receivables, net $ 3,267 $ 4,393 (a) Includes receivables primarily related to the Companys business partners and International Currency Card portfolios. (b) Includes approximately $9.8 billion and $9.9 billion of cardmember receivables outside the United States as of September30, 2009 and December31, 2008, respectively. (c) Other receivables primarily represent amounts due from the Companys travel customers, third party issuing partners, accrued interest on investments, receivables acquired in connection with the purchase of Corporate Payment Services (CPS), Company cash held in an off-balance sheet securitization trust for daily settlement requirements, and other receivables due to the Company in the ordinary course of business. The following table presents changes in the cardmember receivable reserve for losses for the nine months ended September30: (Millions) 2009 2008 Balance, January1 $ 810 $ 1,149 Additions: Cardmember receivables provision 716 937 Deductions/Other: Cardmember receivables net write-offs (a) (937 ) (883 ) Cardmember receivables other (b) 10 (69 ) Balance, September30 $ 599 $ 1,134 (a) Represents write-offs of charge card balances consisting of principal (resulting from authorized and unauthorized transactions) and fee components, less recoveries of $254 million and $151 million for the nine months ended September30, 2009 and 2008, respectively. (b) Primarily includes foreign currency translation adjustments. For the three months ended September30, 2008, this amount also includes waived fees.

4. Loans

4. Loans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4. Loans	4. Loans Loans at September30, 2009 and December31, 2008 consisted of: (Millions) 2009 2008 U.S. Card Services $ 22,686 $ 32,684 International Card Services 8,771 9,499 Global Commercial Services 18 28 Cardmember lending, gross 31,475 42,211 Less: Cardmember lending reserve for losses 3,359 2,570 Cardmember lending, net $ 28,116 $ 39,641 Other loans, gross (a) $ 541 $ 1,057 Less: Other reserve for losses 30 39 Other loans, net $ 511 $ 1,018 (a) Other loans primarily represent small business installment loans, a store card portfolio whose billed business is not processed on the Companys network and small business loans associated with the CPS acquisition. Other loans at December31, 2008, included a loan to an affiliate in discontinued operations. The following table presents changes in the cardmember lending reserve for losses for the nine months ended September30: (Millions) 2009 2008 Balance, January1 $ 2,570 $ 1,831 Additions: Cardmember lending provisions (a) 3,665 3,209 Cardmember lending other (b) 41 95 Total provision 3,706 3,304 Deductions: Cardmember lending net write-offs principal (c) (2,360 ) (1,941 ) Cardmember lending net write-offs interest and fees (c) (376 ) (437 ) Cardmember lending other (d) (181 ) (117 ) Balance, September30 $ 3,359 $ 2,640 (a) Represents loss provisions for cardmember lending consisting of principal (resulting from authorized transactions), interest, and fee reserves components. (b) Primarily represents adjustments to cardmember lending receivables resulting from unauthorized transactions. For the nine months ended September30, 2008, this amount also includes waived fees. (c) Cardmember lending net write-offs principal for September30, 2009 and 2008 include recoveries of $253 million and $236 million, respectively. Recoveries of interest and fees were de minimis. (d) For September30, 2009, this amount primarily includes $169 million of reserves that were removed in connection with securitizations during the period, which is offset in the allocated cost of the associated retained subordinated securities. This amount also includes foreign currency translation adjustments. Prior periods primarily included foreign currency translation adjustments. The following table presents changes in the other loans reserve for losses for the nine months ended September30: (Millions) 2009 2008 Balance, January1 $ 39 $ 45 Provisions 64 29 Net write-offs and other (a) (73 ) (30 ) Balance, September30 $ 30 $ 44 (a) Net write-offs and other for September30, 2009 and 2008 include recoveries of $9

5. Investment Securities

5. Investment Securities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5. Investment Securities	5. Investment Securities The following is a summary of investment securities, all of which are classified as available-for-sale at September30, 2009 and December31, 2008: September30, 2009 December31, 2008 (Millions) Cost Gross Unrealized Gains Gross Unrealized Losses Estimated FairValue Cost Gross Unrealized Gains Gross Unrealized Losses Estimated FairValue State and municipal obligations $ 6,280 $ 94 $ (145 ) $ 6,229 $ 6,628 $ 37 $ (1,034 ) $ 5,631 U.S. Government treasury obligations 5,064 22 5,086 1,933 48 1,981 U.S. Government agency obligations 6,706 60 6,766 3,141 44 3,185 Mortgage-backed securities(a) 161 2 (1 ) 162 73 2 75 Retained subordinated securities(b) 3,172 526 (2 ) 3,696 1,328 (584 ) 744 Equity securities(c) 100 362 462 200 344 544 Corporate debt securities(d) 1,280 15 (16 ) 1,279 230 1 (13 ) 218 Foreign government bonds and obligations 76 2 78 84 1 (4 ) 81 Other 40 40 67 67 Total $ 22,879 $ 1,083 $ (164 ) $ 23,798 $ 13,684 $ 477 $ (1,635 ) $ 12,526 (a) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (b) Consists of investments in retained subordinated securities from the Companys securitization of cardmember loans. (c) Represents the Companys investment in Industrial and Commercial Bank of China (ICBC). (d) The September30, 2009 balance includes $1.05 billion of corporate debt obligations issued under the Temporary Liquidity Guarantee Program (TLGP) that are guaranteed by the FDIC. Fair Value The following is a description of the valuation techniques utilized by the Company to measure the fair value of its investment securities, including the three general classifications of such items pursuant to the fair value hierarchy (Level 1, Level 2, and Level 3). These techniques may produce fair values that may not be indicative of a future sale, or reflective of future fair values. The use of different techniques to determine the fair value of these types of investment securities could result in different estimates of fair value at the reporting date. Level 1 - When available, quoted market prices are used to determine fair value and the investment securities are classified within Level 1 of the fair value hierarchy. The Company has not classified any investment securities in Level 1 of the fair value hierarchy. Level 2 - When quoted prices in an active market are not available, the fair values for the Companys investment securities are obtained primarily from pricing services engaged by the Company, and the Company receives one price for each security. The fair values provided by the pricing services are estimated by using pricing m

6. Fair Values of Financial Ins

6. Fair Values of Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6. Fair Values of Financial Instruments	6. Fair Values of Financial Instruments GAAP requires the disclosure of the estimated fair value of financial instruments. A financial instrument is defined as cash, evidence of an ownership in an entity, or a contract between two entities to deliver cash or another financial instrument or to exchange other financial instruments. The disclosure requirements for the fair value of financial instruments exclude leases, equity method investments, affiliate investments, pension and benefit obligations, insurance contracts, and all non-financial instruments. The following table discloses the estimated fair value for the Companys financial assets and financial liabilities, as of the dates presented: September30,2009 December31,2008 (Rounded to nearest billion) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Assets for which carrying values equal or approximate fair value $ 80 $ 80 $ 73 $ 73 Loans $ 29 $ 29 $ 41 $ 41 Financial Liabilities: Liabilities for which carrying values equal or approximate fair value $ 46 $ 46 $ 45 $ 44 Long-term debt $ 53 $ 54 $ 60 $ 56 The fair values of these financial instruments are estimates based upon market conditions and perceived risks as of September30, 2009 and December31, 2008, and require management judgment. These figures may not be indicative of their future fair values. The fair value of the Company cannot be estimated by aggregating the amounts presented. The following methods were used to determine estimated fair values. 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, cardmember receivables, accrued interest, and certain other assets. For these assets, the carrying values approximate fair value because they are short-term in duration or variable rate in nature. In addition, the following financial assets are carried at fair value: Investment Securities Investment securities are recorded at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in accumulated other comprehensive loss. Gains and losses on investment securities classified as available-for-sale are recognized in the Consolidated Statements of Income upon disposition of the securities or when management determines that a decline in value below amortized cost is other-than-temporary. Refer to Note 5 for additional information regarding investment securities, including the valuation methodologies used to estimate fair value. Derivative Financial Instruments Derivative financial instruments are recorded at fair value on the Consolidated Balance Sheets, with gains and losses recognized in the Consolidated Statements of Income or Consolidated Balance Sheets (accumulated other comprehensive loss) based upon the nature of the derivative. Refer to Note 15 for additional information regarding derivative financial instruments, including the valuat

7. Asset Securitizations

7. Asset Securitizations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7. Asset Securitizations	7. Asset Securitizations Off-Balance Sheet Securitizations Servicing Portfolio The Company periodically securitizes cardmember loans through the American Express Credit Account Master Trust (the Lending Trust). The following table illustrates the activity in the Lending Trust (including the securitized cardmember loans and sellers interest) for the nine months ended September30: (Millions) 2009 2008 Lending Trust assets, January1 $ 41,579 $ 36,194 Account additions, net 2,956 10,187 Cardmember activity, net (7,912 ) (3,456 ) Lending Trust assets, September30 $ 36,623 $ 42,925 Securitized cardmember loans, January1 $ 28,955 $ 22,670 Impact of issuances, external 2,250 9,640 Impact of issuances, retained 2,013 1,315 Impact of maturities (4,800 ) (4,670 ) Securitized cardmember loans, September30 $ 28,418 $ 28,955 Sellers interest, January1 $ 12,624 $ 13,524 Impact of issuances (4,263 ) (10,955 ) Impact of maturities 4,800 4,670 Account additions, net 2,956 10,187 Cardmember activity, net (7,912 ) (3,456 ) Sellers interest, September30 $ 8,205 $ 13,970 The Company, through its subsidiaries, is required to maintain an undivided interest in the transferred cardmember loans (sellers interest), which is equal to the balance of all cardmember loans ($35,664 million and $41,756 million at September30, 2009 and 2008, repectively) transferred to the Lending Trust plus the associated accrued interest receivable ($959 million and $1,169 million at September30, 2009 and 2008, respectively) less the investors portion of those assets (securitized cardmember loans). Sellers interest is reported as cardmember lending on the Companys Consolidated Balance Sheets. Any billed finance charges related to the investors portion of securitized cardmember loans are reported as other assets on the Companys Consolidated Balance Sheets. The Company retains servicing responsibilities for the transferred cardmember loans through its subsidiary, American Express Travel Related Services Company, Inc. (TRS) and earns a related fee. No servicing asset or liability is recognized at the time of a securitization because the Company receives adequate compensation relative to current market servicing fees. In an effort to address the concerns of rating agencies and the recent decline in the trust excess spread due to the performance of the underlying credit card receivables in the Lending Trust and the related American Express Credit Account Secured Note Trusts (the Note Trusts), the subsidiaries of the Company that are the transferors to the Lending Trust announced in the second quarter that certain actions affecting outstanding series of securities issued by the Lending Trust and the Note Trusts were completed in order to adjust the credit enhancement structure of substantially all of the outstanding series of securities previo

8. Comprehensive Income

8. Comprehensive Income
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8. Comprehensive Income	8. Comprehensive Income The components of comprehensive income, net of related tax, are as follows: ThreeMonthsEnded September30, NineMonthsEnded September30, (Millions) 2009 2008 2009 2008 Net income $ 640 $ 815 $ 1,414 $ 2,459 Other comprehensive income (losses): Net unrealized securities gains (losses) 554 (423 ) 1,286 (334 ) Net unrealized derivative gains 11 47 42 32 Foreign currency translation adjustments (220 )(a) (43 ) (311 )(a) (136 ) Net unrealized pension and other postretirement benefit costs 4 4 33 14 Total $ 989 $ 400 $ 2,464 $ 2,035 (a) The three and nine months ended September30, 2009 include a $135 million and $190 million other comprehensive loss, respectively, representing the correction of an error related to the accounting in prior periods for cumulative translation adjustments associated with a net investment in foreign subsidiaries (see Note 13 for further details).

9. Customer Deposits

9. Customer Deposits
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9. Customer Deposits	9. Customer Deposits At September30, 2009 and December31, 2008, customer deposits were categorized as interest-bearing or non-interest-bearing deposits as follows: (Millions) 2009 2008 U.S.: Interest-bearing $ 23,152 $ 14,377 Non-interest-bearing 15 18 Non-U.S.: Interest-bearing 673 1,072 Non-interest-bearing 23 19 Total customer deposits $ 23,863 $ 15,486 The customer deposits are aggregated by deposit type offered by the Company at September30, 2009 and December31, 2008 as follows: (Millions) 2009 2008 U.S. retail deposits: Cash sweep and savings accounts $ 9,583 $ 7,247 Certificates of deposit 13,569 6,258 Institutional and other deposits 711 1,981 Total customer deposits $ 23,863 $ 15,486 At September30, 2009 and December31, 2008 time deposits, included in interest-bearing deposits above, in denominations of $100,000 or more were as follows: (Millions) 2009 2008 U.S. $ 85 $ 894 Non-U.S. 153 Total $ 85 $ 1,047 The scheduled maturities of all time deposits, included in interest-bearing deposits above, at September30, 2009 are as follows: (Millions) U.S. Non-U.S. Total 2009 $ 3,285 $ 171 $ 3,456 2010 3,120 232 3,352 2011 3,275 3,275 2012 1,596 1,596 2013 1,360 1,360 After 5 years 933 933 Total $ 13,569 $ 403 $ 13,972

10. Income Taxes

10. Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10. Income Taxes	10. Income Taxes The Company is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which the Company has significant business operations. The tax years under examination and open for examination vary by jurisdiction. In June2008, the IRS completed its field examination of the Companys federal tax returns for the years 1997 through 2002.In July 2009, the IRS completed its field examination of the Companys federal tax returns for the years 2003 and 2004. However, all of these years continue to remain open as a consequence of certain issues under appeal. Given the inherent complexities of the business and that the Company is subject to taxation in a substantial number of jurisdictions, the Company routinely assesses the likelihood of additional assessments in each of the taxing jurisdictions and has established a liability for unrecognized tax benefits that management believes to be adequate. Once established, unrecognized tax benefits are adjusted if more accurate information is available, or a change in circumstance or an event occurs necessitating a change to the liability. The Company believes it is reasonably possible that unrecognized tax benefits could decrease within the next twelve months by as much as $670 million principally as a result of potential resolutions through settlements of prior years tax items with various taxing authorities. The prior years tax items include unrecognized tax benefits relating to the timing of recognition of certain gross income, the deductibility of certain expenses or losses, and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $670 million of unrecognized tax benefits, approximately $318 million are temporary differences that, if recognized, would only impact the effective rate due to net interest assessments and state tax rate differentials. With respect to the remaining amount of $352 million, it is not possible to quantify the impact that the decrease could have on the effective tax rate and net income due to the inherent complexities and the number of tax years open for examination in multiple jurisdictions. Resolution of the prior years items that comprise this remaining amount could have an impact on the effective tax rate and on net income, either favorably (principally as a result of settlements that are less than the liability for unrecognized tax benefits) or unfavorably (if such settlements exceed the liability for unrecognized tax benefits). The following table summarizes the Companys effective tax rate: ThreeMonthsEnded September30,2009(a) NineMonthsEnded September30,2009(b) FullYear2008(b) Effective tax rate 30 % 24 % 20 % (a) Reflects the change in the Companys estimated annual effective tax rate and tax benefits related to the resolution of certain prior years tax items. (b) Reflects tax benefits related to the resolution of certain prior years tax items.

11. Preferred Shares and Warran

11. Preferred Shares and Warrants
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11. Preferred Shares and Warrants	11. Preferred Shares and Warrants Capital Purchase Program On January9, 2009, under the United States Department of the Treasury (Treasury Department) Capital Purchase Program (CPP), the Company issued to the Treasury Department for aggregate proceeds of $3.39 billion: (1)3.39million shares of Fixed Rate (5 percent) Cumulative Perpetual Preferred Shares, Series A, and (2)a ten-year warrant (the Warrant) for the Treasury Department to purchase up to 24million common shares at an exercise price of $20.95 per share. Upon issuance, $3.16 billion of the proceeds was allocated to the Preferred Shares, and $232 million of the proceeds was allocated to the Warrant based on their relative fair values at the date of issuance. On June17, 2009, the Company repurchased the Preferred Shares at their face value of $3.39 billion. As the $3.39 billion cash paid exceeded the $3.18 billion carrying amount of the Preferred Shares, the $212 million excess represented an in-substance Preferred Shares dividend reducing EPS attributable to common shareholders by $0.18 for the nine months ended September30, 2009, respectively. Refer to Note 12. On July29, 2009, the Company repurchased the Warrant for $340 million. The Warrant repurchase resulted in a reduction of cash and adjustment to Retained Earnings and additional paid-in-capital on the Companys Consolidated Balance Sheet. This repurchase had no impact on the Companys Consolidated Income Statement and EPS for the three months ended September30, 2009. The Treasury Department realized an annualized return of 26 percent from the Companys overall participation in the CPP.

12. Earnings Per Common Share

12. Earnings Per Common Share (EPS)
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12. Earnings Per Common Share (EPS)	12. Earnings Per Common Share (EPS) Basic EPS is computed using average actual shares outstanding during the period. Diluted EPS is basic EPS adjusted for the dilutive effect of non-participating share awards and other financial instruments that may be converted into common shares. The following table presents computations of basic and diluted EPS: ThreeMonthsEnded September30, NineMonthsEnded September30, (Millions, except per share amounts) 2009 2008 2009 2008 Numerator: Basic and diluted: Income from continuing operations $ 642 $ 861 $ 1,427 $ 2,565 Preferred shares dividends, accretion, and recognition of remaining unaccreted dividends (a) (306 ) Earnings allocated to participating share awards and other items (8 ) (5 ) (13 ) (14 ) Income from continuing operations attributable to common shareholders 634 856 1,108 2,551 Loss from discontinued operations (2 ) (46 ) (13 ) (106 ) Net income attributable to common shareholders $ 632 $ 810 $ 1,095 $ 2,445 Denominator: Basic: weighted-average common stock 1,178 1,154 1,164 1,154 Add: weighted-average stock options and warrants (b) 3 4 2 7 Diluted 1,181 1,158 1,166 1,161 Basic Earnings Per Common Share: Income from continuing operations attributable to common shareholders $ 0.54 $ 0.74 $ 0.95 $ 2.21 Loss from discontinued operations (0.04 ) (0.01 ) (0.09 ) Net income attributable to common shareholders $ 0.54 $ 0.70 $ 0.94 $ 2.12 Diluted Earnings Per Common Share: Income from continuing operations attributable to common shareholders $ 0.54 $ 0.74 $ 0.95 $ 2.20 Loss from discontinued operations (0.01 ) (0.04 ) (0.01 ) (0.10 ) Net income attributable to common shareholders $ 0.53 $ 0.70 $ 0.94 $ 2.10 (a) Includes the accelerated preferred dividend accretion of $212 million for the nine months ended September30, 2009, due to the repurchase of $3.39 billion of preferred shares issued as part of the CPP. (b) For the three months ended September30, 2009 and 2008, unexercised stock options on 71million and 46million shares, respectively, and for the nine months ended September30, 2009 and 2008, unexercised stock options on 79million and 32million shares, respectively, were not included in the computation of diluted EPS. These stock options were not included because their respective exercise prices were greater than the average market price of the Companys common shares. See N

13. Details of Certain Consolid

13. Details of Certain Consolidated Statements of Income Lines
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13. Details of Certain Consolidated Statements of Income Lines	13. Details of Certain Consolidated Statements of Income Lines As a result of becoming a bank holding company, the Company has made certain additional required disclosures for items representing 1 percent or more of the aggregate of total interest income and total non-interest revenues. The following is a detail of other commissions and fees for the three and nine months ended September30: ThreeMonthsEnded September30, NineMonthsEnded September30, (Millions) 2009 2008 2009 2008 Delinquency fees $ 118 $ 201 $ 420 $ 862 Foreign currency conversion revenue 184 201 492 615 Service fees and other 146 171 428 308 Total other commissions and fees $ 448 $ 573 $ 1,340 $ 1,785 The following is a detail of other revenues for the three and nine months ended September30: ThreeMonthsEnded September30, NineMonthsEnded September30, (Millions) 2009 2008 2009 2008 Insurance premium revenue $ 73 $ 77 $ 225 $ 245 Publishing revenue 62 89 160 237 Gain on investment securities 2 3 225 6 Other 312 384 959 1,103 Total other revenues $ 449 $ 553 $ 1,569 $ 1,591 The following is a detail of marketing, promotions, rewards and cardmember services for the three and nine months ended September30: ThreeMonthsEnded September30, NineMonthsEnded September30, (Millions) 2009 2008 2009 2008 Marketing and promotion $ 504 $ 649 $ 1,201 $ 1,906 Cardmember rewards 983 1,132 2,858 3,301 Cardmember services 132 148 374 402 Total marketing, promotion, rewards and cardmember services $ 1,619 $ 1,929 $ 4,433 $ 5,609 The following is a detail of other, net expenses for the three and nine months ended September30: ThreeMonthsEnded September30, NineMonthsEnded September30, (Millions) 2009 2008 2009 2008 Occupancy and equipment $ 374 $ 398 $ 1,124 $ 1,185 Communications 105 118 315 348 Other non-income taxes 99 66 173 178 MasterCard and Visa settlements (214 ) (214 ) (640 ) (357 ) Foreign exchange (gain) loss (160 ) (10 ) (152 ) 5 Other (a) 261 367 759 990 Total other, net expense $ 465 $ 725 $ 1,579 $ 2,349 (a) The three and nine months ended September30, 2009 include (i)a $135 million benefit representing the correction of an error related to the accounting for cumulative translation adjustments associated with a net investment in foreign subsidiaries (the impact of the incorrect accounting was not material to any of the quarterly or annual periods in which it occurred and resulted in

14. Reportable Operating Segmen

14. Reportable Operating Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14. Reportable Operating Segment Information	14. Reportable Operating Segment Information The Company is a leading global payments, network, and travel company that is principally engaged in businesses comprising four reportable operating segments: U.S. Card Services (USCS), International Card Services (ICS), Global Commercial Services (GCS), and the Global Network Merchant Services (GNMS). The following table presents certain operating segment information: ThreeMonthsEnded September30, NineMonthsEnded September30, (Millions) 2009 2008 2009 2008 Revenues, excluding interest income: USCS $ 2,338 $ 2,797 $ 6,955 $ 8,763 ICS 866 965 2,461 2,894 GCS 1,017 1,291 3,033 3,931 GNMS 945 1,015 2,646 2,982 Corporate Other, including adjustments and eliminations 96 146 525 414 Total $ 5,262 $ 6,214 $ 15,620 $ 18,984 Interest income: USCS $ 772 $ 1,190 $ 2,466 $ 3,687 ICS 392 523 1,191 1,557 GCS 8 43 50 138 GNMS 1 2 3 4 Corporate Other, including adjustments and eliminations 124 76 349 247 Total $ 1,297 $ 1,834 $ 4,059 $ 5,633 Interest expense: USCS $ 207 $ 528 $ 639 $ 1,676 ICS 110 256 390 768 GCS 28 134 139 417 GNMS (17 ) (54 ) (60 ) (171 ) Corporate Other, including adjustments and eliminations 215 20 537 68 Total $ 543 $ 884 $ 1,645 $ 2,758 Revenues net of interest expense: USCS $ 2,903 $ 3,459 $ 8,782 $ 10,774 ICS 1,148 1,232 3,262 3,683 GCS 997 1,200 2,944 3,652 GNMS 963 1,071 2,709 3,157 Corporate Other, including adjustments and eliminations 5 202 337 593 Total $ 6,016 $ 7,164 $ 18,034 $ 21,859 Income (Loss) from continuing operations: USCS $ 109 $ 244 $ (116 ) $ 788 ICS 127 67 230 315 GCS 116 134 273 512 GNMS 240 258 713 780 Corporate Other 50 158 327 170 Total $ 642 $ 861 $ 1,427 $ 2,565 The Company has changed the manner by which it assesses the performance of its reportable operating segments to exclude the impact of its excess liquidity funding levels. Accordingly, beginning in the first quarter of 2009, the debt and cash and investment balances associated with the Comp

15. Derivatives and Hedging Act

15. Derivatives and Hedging Activities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15. Derivatives and Hedging Activities	15. Derivatives and Hedging Activities The Company uses derivative financial instruments to manage exposure to various market risks. Market risk is the risk to earnings or value resulting from movements in, for example, interest rates, foreign exchange rates or equity market prices. The Companys market risk exposures primarily arise through: Interest rate risk within its proprietary card-issuing businesses; and Foreign exchange risk within its internationaloperations. General principles and the overall framework for managing market risk across the Company are defined in the Market Risk Policy approved by the Enterprise-wide Risk Management Committee (ERMC). Market risk is centrally managed by the Market Risk Committee, chaired by the Chief Market Risk Officer of the Company. In addition to the Market Risk Committee, market risk exposures for certain regulated entities are monitored and managed by various asset/liability committees, guided by Board-approved policies covering derivative financial instruments, funding and investments. Derivative financial instruments derive their value from an underlying variable or multiple variables such as interest rate, foreign exchange, and equity indices or prices. These instruments can increase, reduce or otherwise alter exposure to various market risks and, for that reason, are an integral component of the Companys market risk and related asset/liability management strategy and processes. The Company uses derivatives to manage market risk exposures that arise within its business operations, but does not engage in derivative financial instruments for trading purposes. For the Companys charge card and fixed-rate lending products, interest rate exposure is managed by shifting the mix of funding toward fixed-rate debt and by using derivative instruments, with an emphasis on interest rate swaps, which effectively fix interest expense for the length of the swap. For the majority of its cardmember loans, which earn a floating-rate of interest, interest rate exposure is managed by shifting the mix of funding toward floating-rate debt by using interest rate swaps to convert the fixed rate funding into floating rate funding for the length of the swap. The Company regularly reviews its strategy and may modify it. In addition, the Company may change the amount hedged and the hedge percentage may change based on changes in business volumes and mix, among other factors. Foreign exchange risk is generated by cardmember cross-currency charges, foreign currency denominated balance sheet exposures, translation exposure associated with the Companys net investments in foreign operations, and foreign currency earnings in international units. The Companys 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 economically justified through various means, including the use of derivative financial instruments such as foreign exchange forwards, options, and cross-currency swap contracts, which can help lock in the value of the Companys exposure to specific currencies. Fair

16. Guarantees

16. Guarantees
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
16. Guarantees	16. Guarantees The Company provides cardmember protection plans that cover losses associated with purchased products, as well as certain other guarantees in the ordinary course of business which are within the scope of GAAP governing the accounting for guarantees. In relation to its maximum amount of undiscounted payments as seen below, to date the Company has not experienced any significant losses related to guarantees. The Companys initial recognition of guarantees is at fair market value, which has been determined in accordance with GAAP governing fair value measurement. The following table provides information related to such guarantees at September30, 2009 and December31, 2008: Maximumamountofundiscountedfuture payments(a) (Billions) Amountofrelatedliability(b) (Millions) Type of Guarantee September30,2009 December31,2008 September30,2009 December31,2008 Card and travel operations (c) $ 65 $ 69 $ 100 $ 99 Other (d) 1 1 81 93 Total $ 66 $ 70 $ 181 $ 192 (a) Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed parties. The Merchant Protection guarantee is calculated using managements best estimate of maximum exposure based on all eligible claims as measured against annual billed business volumes. (b) Included as part of other liabilities on the Companys Consolidated Balance Sheets. (c) Includes Credit Card Registry, Return Protection, Account Protection and Merchant Protection, which the Company offers directly to cardmembers. The Company generally has no collateral or other recourse provisions related to these guarantees. (d) Other primarily includes guarantees related to the Companys business dispositions, real estate and various tax items.

17. Restructuring Charges

17. Restructuring Charges
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
17. Restructuring Charges	17. Restructuring Charges During the three and nine months ended September30, 2009, the Company recorded $6 million and $183 million of new restructuring charges, net of adjustments of previously accrued amounts due to revisions of prior estimates. The restructuring activities in the quarter related principally to downsizing and reorganizing certain operations in network services, prepaid services, and staff groups. Year-to-date activity primarily relates to charges the Company took in the second quarter to further reduce its operating costs. Restructuring charges and any subsequent adjustments related to severance obligations are included in salaries and employee benefits in the Companys Consolidated Statements of Income, while charges pertaining to other exit costs are included in occupancy and equipment, professional services, and other net expenses. The following table summarizes the Companys restructuring reserves activity for the three and nine months ended September30, 2009: For the three months ended September30, 2009: (Millions) Severance(a) Other(b) Total Liability balance at June30, 2009 $ 367 $ 54 $ 421 Restructuring charges, net of $7 in adjustments (c) 4 2 6 Payments (73 ) (6 ) (79 ) Other non-cash (d) 7 1 8 Liability balance at September30, 2009 (e) $ 305 $ 51 $ 356 For the nine months ended September30, 2009: (Millions) Severance(a) Other(b) Total Liability balance at December31, 2008 $ 365 $ 62 $ 427 Restructuring charges, net of $30 in adjustments (c) 159 24 183 Payments (232 ) (36 ) (268 ) Other non-cash (d) 13 1 14 Liability balance at September30, 2009 (e) $ 305 $ 51 $ 356 (a) Accounted for in accordance with the GAAP governing the accounting for nonretirement postemployment benefits and for costs associated with exit or disposal activities. (b) Other primarily includes facility exit and contract termination costs. (c) Net adjustments of $7 million during the three months ended September30, 2009 ($2 million in USCS, $1 million in ICS, $4 million in GCS, $(1) million in GNMS, and $1 million in Corporate Other) and $30 million during the nine months ended September30, 2009 ($2 million in USCS, $13 million in ICS, $3 million in GCS, $2 million in GNMS, and $10 million in Corporate Other) primarily related to higher employee redeployments to other positions within the Company. (d) Consists primarily of foreign exchange impacts. (e) The majority of cash payments related to the remaining restructuring liabilities are expected to be completed in 2010, with the exception of certain smaller amounts related to contractual long-term severance arrangements which are expected to be completed in 2012, and certain lease obligations which will continue until their expiration in 2022. The following table summarizes the Companys restructuring charges, net of adjustments

18. Contingencies

18. Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
18. Contingencies	18. Contingencies The Company and its subsidiaries are involved in a number of legal and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of their respective business activities. The Company believes it has meritorious defenses to each of these actions and intends to defend them vigorously. In the course of its business, the Company and its subsidiaries are also subject to governmental examinations, information gathering requests, subpoenas, inquiries and investigations. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration, regulatory, tax or investigative proceedings that would have a material adverse effect on the Companys consolidated financial condition or liquidity. However, it is possible that the outcome of any such proceedings could have a material impact on results of operations in any particular reporting period as the proceedings are resolved.

19. Subsequent Events

19. Subsequent Events
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
19. Subsequent Events	19. Subsequent Events The Company has performed an evaluation of subsequent events through October30, 2009, which is the date the financial statements were issued.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 22, 2009
Entity [Text Block]
Trading Symbol	AXP
Entity Registrant Name	AMERICAN EXPRESS CO
Entity Central Index Key	0000004962
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,189,169,358